Wednesday, February 5, 2014

Buying and Selling Your Florida Home: Needs, Wants, Give and Take.

The key to a successful real estate transaction begins with clearly defined needs.  To get to the needs the wants must be defined as well.

When I first meet a prospective home buyer in Brevard County, Florida I always start with the same thing...What do you want in your new home?

When I first meet a prospective home seller in Brevard County, Florida I always start with the same thing...How much do you want for your home? 

The response to this question tells me if our starting point is reality based.

The real estate market sets the prices

The selling price of a house will be determined by its local competition.  There is a limit to how much a seller can get for their home.  If it is over improved for the neighborhood there will be a ceiling.  If it is dated or in need of repair there will be a limit. 

A seller will have their wants.   But the home's location, condition and competition will decide how much they will get for their house.

A buyer will have their wants.  The wants are often characterized by an ideal quality such as location, age of structure, size, room count, view, school district or one of a multiple other characteristics. 

Buyers and sellers have their needs.  

Most often financial needs is the overriding consideration for any real estate transaction to close.

For sellers there may be an existing mortgage that must be paid off.  For sellers it may be a net proceeds amount.  In some cases it may be a short sale that must be negotiated.

For buyers it may be the mortgage load including the taxes, insurance, association fees, and upkeep costs.  Home costs are not the only budget item to be considered.

Whether buyer or seller, a successful closing requires a clear understanding of needs and wants.  These will likely evolve as some give and take occurs along the way to a closing.