In taking on the responsibility of selling your own home, you have the added task of appraising not only your property, but the people who wish to bid on it. Whether you are hosting an open house or taking potential buyers on a private tour of your home, you may be excited at the prospect of receiving a bid immediately.
Before you pop open the champagne bottle and celebrate a pending contract, however, it is necessary to take a number of factors into consideration when courting a home buyer. Do your research first, and prevent any headaches when it comes time to draft a contract.
When evaluating potential buyers, here are a few things to consider before you prepare to sell. It is handy, too, to have the assistance of a mortgage loan officer if you are not selling through a real estate agent.
How does the buyer plan to pay you for the home? Is there a sizable down payment available? Will the buyer need to apply for home loans, and if so will he be able to qualify? Does the buyer have a job or other means of steady income with which to make payments? Is he a stable employee with a good credit rating. If you intend to sell your home to someone, you definitely want to know if he is good to pay the mortgage.
Assets may refer to various things where making a large purchase is concerned. Liquid assets may be defined by ready cash or items that can be sold quickly for cash to make up payments. Cars, boats, jewelry and other luxury items may fall into this category. In the possible event a potential buyer may default on a mortgage payment, it is recommended to check in advance to see what assets the buyer has.
Debt is, sadly, a fact of life. At one point or another, we all have had to work to cover payments. When selling a house, such liabilities should be taken into consideration when interviewing potential bidders. A loan officer can help you determine if a potential buyer has a certain amount of debt or liability that may affect credit rating. Alimony and child support, college loans, credit card and automobile payments and other unpaid loans are considered liabilities.
This consideration works hand in hand with liability. If a buyer does have other debts to pay, how regular is he with payments? Has he defaulted on any loans in the past? Had he once declared bankruptcy. Always factor in the financial health of every potential buyer.
Personal History and Stability
Where has the buyer lived in the past? Has he remained in the same area for a long time, or has he jumped from city to city for reasons unrelated to work? Stability of character is as important as financial solvency. It would be wise to consult with an attorney or legal specialist to know which disclosure laws apply to you in this case.
With careful vigilance of potential buyers, you will be able to determine the right person to buy your home.