Featuring Guest Authors: Juan Sanchez, Loan Officer & Janessa Carrillo, Real Estate Agent
Selling Your Home
Are you planning on selling your home soon? Well, look no further! As a community-based mortgage lender, we excel in home financing, which may not play a big role in your selling process, but since we work with so many homeowners and have gone through the selling process ourselves, we can help you develop a winning strategy for selling and buying.
We know you might have several questions and not know where to begin. Selling a home may not be as complicated as buying one, but it can still be a lengthy process depending on the market conditions. The key is to have a thorough understanding of every aspect of the selling process to make it as smooth as possible.
Our goal is to help you every step of the way, from learning how to list your home on the market to increasing offers from potential buyers and even buying and selling at the same time. So, let’s get started on this exciting journey together!
The Selling Process
You are ready to sell your home, now what? First, contact a professional! Going through a realtor is going to be a game-changer for you. The biggest benefit of going through a realtor is that a load is taken off your back with marketing your home.
When you find the right selling agent, you sit down with them and go through your very own listing packet, or as Janessa Carrillo, a real estate agent based in Fresno, likes to call it, your personalized marketing proposal. You’ll explore three key topics that are crucial to your success: Why should you choose this incredible realtor/broker, the ingenious marketing plan (think staging, photography, pricing, and preparation), and the overall unbeatable marketing strategy.
Followed by this, you will go over any questions you may have as the home seller. If this is your first time selling, don’t be afraid to express any confusion and communicate your concerns. A good realtor will be happy to explain it all in detail to help you understand your role in the process and how it works together.
If you believe that working with a certain realtor will lead to a timely sale of your home at the best market value possible, then you can proceed to review and sign the relevant contracts related to the listing. It’s crucial to have confidence in your realtor to go above and beyond to ensure a positive experience for you. Bottom line, if you are thinking of selling your home, consult with a professional to get the best advice on what your next steps should be for full preparation.
How to Find the Right Agent to Sell My Home
Your primary support in the entire selling process will be your agent. To ensure a satisfactory experience, be very diligent about who you choose. After all, they will be representing and guiding you to sell your house, which isn’t very easy without the right real estate expert.
When looking for an agent, it is important to be a detective as purchasing or selling a home is a big financial decision. Look for reviews of potential agents and their brokers. How long have they been in the industry? How many deals are under their belt? What do their reviews say? You are interviewing agents to best fit your needs. Be strategic with the questions you ask and pay attention to how their proposal aligns with your home selling goals.
How Can I Get More Offers From Buyers?
Even with the right strategy and preparation to sell your home, it may still sit on the market longer than you expected. It can be frustrating, but don’t be ready to lose hope just yet.
The best way to get more offers from buyers is to stop thinking like you are selling a home and start thinking like you are selling the experience that comes with the home. There are so many homes on the market that can be identical to yours, so what makes your home unique and appealing to buyers? Of course, physical features and economic factors play a big role in a buyer’s house-hunting decision, but maybe dig a little deeper and think outside of the box for other reasons that your home may be “the one” for someone else. What attractions are near your home, and how long is the drive to schools/churches/gyms?
If you’ve done all you can to present your home in the best way possible, there are other strategies to pull in potential buyers. Sometimes, sellers will provide incentives to sweeten the deal for buyers. Incentives come in many forms, such as a closing credit or a seller-paid temporary buydown. Because buyers want to minimize their costs as much as possible, these incentives have proven effective in a hot market. Discuss with your agent on how these incentives work, and if it would make sense for your selling situation.
Can I Sell My House with an Existing Mortgage to Buy Another?
You definitely can! The assets from your current home will help you structure the right loan for your next home. Your realtor will let your lender know what your house is worth and what proceeds you stand to gain. We will start by getting you a certified pre-approval and factoring in what your proceeds will be. Once we have a certified pre-approval, we can go over options on how best to use the proceeds. One of the strategies that we can look at is what mortgage fits you best, and how can we use the proceeds to affect your mortgage.
Going over your plans for your new home will determine what mortgage best fits you. Two questions we can ask are: (1) How much of a down payment would you need, and (2) What amount of time do you think you will be on this loan? A popular loan is a conventional 30-year fixed mortgage and is commonly chosen for well-qualified borrowers who do not have income or credit limitations. The monthly payment consists of principal, interest, mortgage insurance (if less than 20% down payment), homeowner’s insurance, and taxes. Fortunately, the proceeds from your old home can be used to reduce the interest and mortgage insurance on your next one.
Once we have an estimated monthly payment that works for you, we can reach out to your realtor and let them know the price range of your next home so that house hunting becomes easier and more aligned with your preferences.
Selling and Buying Can Be Easy With Juan
Usually, when someone sells their home, it is followed by them buying another one. The question is, which order should you go about the two? One of our loan officers in Fresno, Juan Sanchez, says it is easier to sell your home first and then purchase, but you have other options. The strategies your lender can explore are a contingency on the sale/purchase, a bridge loan, or a HELOC depending on their programs offered.
A contingency can be placed on the sale of your home and the purchase of the new home. Both parties will be notified that the transaction can move forward contingent on your home being sold, meaning your home needs to be complete with its selling process before the buying process with your new home can continue. Your realtor can analyze the situation and let the lender know if this is a viable option.
If you’re not sure what a bridge loan is, think of it as a form of short-term financing that will allow the lender to secure financing ahead of the sale of your home. A bridge loan can be used by leveraging your current home as collateral. The loan will be advanced based on the equity it has. This is a popular option when you are looking to make a strong offer. You are letting the seller know that you are ready and can fund relatively quickly. You will have an obligation to pay this debt and secure permanent financing.
A HELOC will be a credit line taken out on your current home. This HELOC must be paid back, but it gives you the flexibility to use it for your down payment and closing costs on your new home.
Whichever option fits you best will be complemented by getting a certified pre-approval. This will clearly show you what each option would look like and give you the confidence to move forward.
Get Ready to Sell Your Home!
Selling your home can be stressful, but with the right agent by your side and a great strategy, you may have multiple buyers submitting offers in no time. It’s important to have an open mind as a seller because if you remember how it was buying a home, you know that circumstances both in and out of your control can change quickly and not meet your expectations. Whatever happens, your main end goal is to get your house sold and if you’re buying up, it is a crucial step in moving into your next one.
Are you buying in another state? Moving to another area can seem scary, but it is really worth it in the end if you find a house and neighborhood that fits your needs. Check out our helpful tips on moving to another state to ensure you are ready for that next change.
About the Guest Authors
Juan Sanchez
Residing in Fresno, CA, I highly enjoy being in the mortgage industry as a loan officer. Being able to serve my community sparked a passion for helping families realize the American dream of homeownership. Knowing that a mortgage is one of the most important financial decisions you will make, I want to guide you along every step of the process. Learn more.
Janessa Carrillo
Buying or selling your home is an involved process. It is one of the most important decisions you will ever make, personally and financially. In any Real Estate venture, you need someone you can trust and rely on to meet your needs. My promise is to offer quality service, integrity, and professionalism in every step of the transaction.
Financing details are for educational purposes only. All views and opinions do not constitute financial or legal advice and reflect requirements at the time of publication. Rates, program terms, fees, and conditions referenced are subject to change without notice. Not all products are available in all states for all amounts. All mortgage applications are subject to underwriting guidelines and approval. This is not an offer of credit or a commitment to lend. Residential Wholesale Mortgage, Inc. dba RWM Home Loans is an equal housing lender licensed by the CA Department of Real Estate #01174642 and CA Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. NMLS# 79445
