Advice on selling your home

<<>> I'm going to give you some of the best advice on selling your home. So, you’ve owned your home for ten years now and you’ve been paying your house payment on time. You don’t have much money, but you have some equity in your home and seven months cash in the bank. You’ve just lost your job and you are worried that you will not be able to make your house payment, so you put your home up for sale.

This is one of the biggest mistakes that home owners do. Do you know why? Here’s what happens. You list your home for $179,900, as this is what you feel that your home is worth. The realtor agrees with you. There are other listings and sales that support this value.

After five months, you realize that you’ll run out of money soon, so you call the bank to get your home refinanced. Here are the two problems with trying to refinance your loan at this time. First, the bank will look in their little black book of rules and tell you that they may not be able to refinance you because you’ve listed your home.

Secondly, when it comes time to appraise your home, the appraiser will find out that you’ve listed your home, but it was not selling, so you reduced the price. Now you need the full $179,900 to make your deal work, but guess what? You’ve just ruined the chances of a refinance at this point because the appraiser will not be able to support a value regardless of the comparable sales if your home was listed at a certain price point and never sold at that price point and has been on the market for around six months.

If the appraiser does not have strong sales in the area to disclaim the markets reaction to your listing, the value will be less than the listing price. This makes sense, right? If your home had plenty of market exposure and it did not sell at a certain price, then the home must not be worth this amount.

So, the best advice on selling your home is, if you’re running low on money and you need to sell your home, refinance your home first. Once you have the money, place the home on the market. This way you will have enough cash to weather this storm and sell your home for as much as you can get from the market.