Why You Need a Loan
Officer to Sell Your Home
By Jeanette Fisher
Home sellers who are prepared to help buyers find financing will sell
their homes faster, and for a larger selling price. Think about your
potential buyers: some of them will have already arranged for financing,
but many don't know how to buy a house. By offering financing options and
being able to help with buyers' closing costs, you can open up new
possibilities for selling your home.
This isn't as difficult as it might sound. By contacting local banks,
mortgage companies, and lenders, you can easily find out what type of
loans they offer. Also ask about credit scores, income and down payment
requirements, special loans for first-time homebuyers, and if they allow
you to contribute to a buyer's closing costs.
The Most Important Issue for You is the Lender's Appraisal
Many banks and mortgage companies employ appraisers who only work for
them, but that practice can cost you money as a seller. For instance, I
once sold a house to buyers who were financing through a bank that used an
"in-house" appraiser, and I lost $13,000 in profit because of a low
appraisal. Only later did I learn that the bank commonly understated
appraisals, in order to protect themselves in the case of foreclosures.
Many appraisers use only past sales when conducting their market analysis,
but in fast-moving market areas, those prior sales amounts may not reflect
current sale prices. A more accurate appraisal will also take into account
sales that haven't yet closed and the list prices of similar properties on
the market, which will give a better reflection of a home's true sales
value.
Before you agree to sell your home to a buyer who comes with a preset
lender, make sure their bank uses accurate appraisals. Don't sign a sales
contract contingent on that bank's appraisal. You don't want to end up
having to reduce your sales price, based on a low appraised value. You can
avoid that situation by including a firm price in your sales contract and
giving your buyers a set amount of time to arrange for financing before
the sales contract becomes void.
Finding a loan officer that offers a wide variety of loan programs and an
accurate appraisal will go a long way toward selling your home quickly and
at a higher price. It will also make it easier for buyers to purchase your
home when you can tell them that your lender may be able to offer better
financing and that you're prepared to pay a set amount of their closing
costs, if they use that lender.
Copyright ©
2006 Jeanette J. Fisher. All Rights Reserved.
Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars,
Credit Help! Get the Credit You Need to Buy Real Estate, Joy to the Home,
and other books teaches Real Estate Investing and Design Psychology.
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