Buyers Are Attracted To Affordability – Savvy Home Selling Insights Series
Just so we are clear, affordability and bargain are NOT synonymous. These words do NOT mean the same thing. Confused? Most sellers are when they hear this for the first time. They can’t understand how a house selling at a bargain price is not necessarily affordable for buyers. Well, price isn’t the only factor that determines affordability.
Buyers typically see affordability as what it will cost to live in the home. They don’t want to “bite off more than they can chew.” It has more to do with financing than anything else. A smart buyer will consider their debt-to-income ratio. Let’s say you find a buyer. Even then, are you sure they can obtain financing? Can they really afford your home? You may not know the answers to these questions. Fortunately for sellers, there are steps you can take to ensure your home is as affordable as possible.
Many first-time home sellers are unaware that there are ways to make their home more affordable without tweaking the selling price. These options are no surprise to experienced realtors. If you’re selling without a real estate agent, can you offer carryback financing on your purchase price? How EASY are you going to make it for your buyer to buy your home? There are many options, each of which has its pros and cons. The trick is finding the best option for YOU. If you’re not sure about your options or don’t understand them, consult with an experienced real estate agent in your area. A good real estate agent can walk you through every option, explaining the potential impact on selling your home. The insight and advice from an experienced realtor can be priceless when trying to sell a home.
The bottom line is that there is no generic formula that works for all homes. The fact is, there are so many options that it can seem overwhelming at times. A good real estate agent will help you evaluate the options efficiently and effectively. Look for Savvy Home Selling Insight #4 in my next blog post or give me a call to find out sooner.