Avoid Making This Common Seller Mistake:

Incorrect Pricing

Every seller wants to realize as much money as possible from the sale of his/her home which can lead to a tendency to overestimate the market value of the home. But studies show that over-pricing your home will ultimately net you less money than pricing it correctly in the beginning.

Buyers tend to look in specific price ranges. If they are looking at another home that is priced correctly in your range, your home will not show favorably in comparison. Also, buyers that are in your price range, won't look at your property because they will think that they can't afford it.

Homes that are mis-priced tend to stay on the market longer than they should. There is normally an initial burst of activity in the first few weeks after a property is placed on the market as buyers may be waiting for something to come up in that area. After that, the only buyers who will typically be looking at your home are those that are just entering the marketplace. It is important to price your home correctly from the start to avoid wasting the period of initial activity.

Calculating the Proceeds of a Sale

Sellers are probably more concerned with the net proceeds they will realize from the sale of their home than with any other aspect of the transaction. Many of the costs involved in real estate transaction can vary for a seller depending on what area of the country they live in. The costs discussed below are customary in Lafayette, IN and its surrounding area.

In addition to the realtor fee negotiated with your real estate agent, these are the other common costs you'll encounter as a seller:

• Escrow Fee -- Expressed as a percentage, approximately 0.0025 of sales price. If selling your home under VA financing, you would be responsible for this whole fee. Any other type of financing, you would be responsible for half of this fee.
• Owner's Title Policy -- Expressed as a percentage, approximately 0.0053 of sales price.
• Recording Fees -- Typically about $20.
• Reconveyance Fee -- Approximately $100 is often charged through escrow if there is a mortgage currently in place on the property.
• Termite Inspection Fee -- $55-$75 is typical.
• If you currently have a mortgage, your lender will be charging you interest on a daily basis until the mortgage is paid off.
• Of course, property taxes are also pro-rated on a daily basis right up to the day that the property is deeded out of your name.

• A home warranty protection plan for the buyer, typically $325-$425 depending on the amenities in your home.
• If you are selling under government financing, FHA or VA, certain costs by regulation fall on your side of the ledger in the approximate amount of $500.

Selling in Today's Market

Niki Sandstrom helps you be prepared to handle these basics of the home selling process before listing your home on the market to insure that you will get the best price for your home in the shortest time.

1. Fair Market Price. Make sure that your price is neither too high or too low. With a FREE Comparative Market Analysis, Niki Sandstrom provides an objective comparison of your home to similar homes in the area.

2. Prepare a "net sheet" for yourself so you'll know exactly how much you'll realize by accepting an offer.

3. Maximize exposure for your property. Niki Sandstrom knows how to market your home. She insures that this involves advertising, open houses, answering phone calls from interested buyers, conducting tours at the buyer's convenience. Niki Sandstrom provides an objective tour of your home. She has the knowledge and experience to successfully market and sell your home.

4. Prepare yourself to negotiate the purchase agreement. Niki Sandstrom will guide you through all of the settlement details of the transaction. She'll follow up with the lender, appraiser, title company, and others to insure that every detail is handled correctly so that your home closes promptly and properly.

For more information and tips for selling your home, check out the following:

Cash Buyer

If you want to get the best house you can for the least amount of money, then you need to make sure that you are in the strongest negotiating position possible. Other factors besides price can influence a Seller's consideration of an offer. For instance, a cash buyer is sometimes more attractive to a seller than a buyer who must seek financing because, with a cash buyer, the time necessary to close the sale and the uncertainty are reduced.

In order to position yourself to negotiate like a cash buyer, you need to consider being PRE-APPROVED for a mortgage, not pre-qualified. That way, the seller will know that you are approved for the loan and that nothing is likely to go wrong with the sale.

The process of pre-approval is a relatively short one, lasting anywhere from a few days to a couple of weeks depending on the type of financing you elect. The cost generally consists of a credit report (about $75) and possibly a small processing fee.

What Will My Closing Costs Be?

If you are paying cash for a home, your closing costs of course are at their minimum. The fees will include an escrow fee, which expressed as a percentage of the sales price would be 0.0025. Your first year's homeowner's insurance policy, depending on sales price, will cost $250 to $350. A fee to record the deed into your name is approximately $20.

If you are financing your home, a good rule of thumb is that your costs will be approximately 1.5% of the purchase price in addition to any points the lender may be charging you on the loan. Here is a breakdown of the costs:

• Most lenders charge an origination fee of 1% of the loan amount. In addition, there are other various lender fees that go by such names as "Funding Fee," "Document Preparation Fee," "Underwriting Fee," etc. These fees should amount to no more than about $500. Be sure to ask your lender for a good faith estimate.
• Most lenders require an Impound Account to be maintained. This is basically an account that pays the property taxes and the homeowners insurance when they become due. If you are putting 20% or more down, you can negotiate with the lender to waive this. Otherwise, you will be paying approximately 3 months worth of taxes and two months of homeowner's insurance premiums into this account at closing.
• When you purchase a home, you make your payment in arrears rather than in advance, so you will be paying interest from the day your escrow closes to the first of the following month. If you close in the middle of the month, you will pay 15 days interest at the closing and then you will live in the house another full 30 days before your first payment is due. So you will have 45 days in the house before the first payment is due, but you will have to face that 15 day interest charge at the time of closing.
• If you have a homeowner's association, there will typically be transfer fees to put the property into your name and you could possibly be required to pay a month in advance for association dues.
• If you are buying conventionally and putting less that 20% down, another cost you will run into is called "Private Mortgage Insurance." The typical charge for this is 0.005% to 0.0075% of the loan amount per year. If you divide that by twelve, you get the monthly cost of the insurance. Once you have owned the home and can establish that you have at least 20% equity in the property, you can apply to the lender to have this charge removed. If you have made your payments in a timely manner and can document that the home has appreciated or that you have paid the money down to arrive at the 80% Loan to Value, the lender will typically remove this charge.
• Other up-front costs you'll have to pay will be an appraisal fee which is typically $300 to $350 and a credit report which is typically $70. These are paid when you apply for the loan.
• You will want to have a home inspection performed by a licensed contractor or a qualified home inspector. This will cost $150-$250 depending on the size of the home and the ammentities (such as a pool, etc.)

Lafayette (p. 44,622) is the seat of Tippecanoe County (p. 130,598; 502 sq. m.). Famous as the site of the Battle of Tippecanoe in 1811, the county was created in 1826, after the first whites settled in the area. The county was named for the Tippecanoe River, which ends its 166-mile journey when it joins the Wabash River above Lafayette. For a wonderful and detailed account of the area's history, visit the Tippecanoe County Historical Association's website.

Lafayette prospered because of the development of the Wabash River, Erie Canal, and the railroads. This prosperity fostered the construction of significant commercial and public buildings which are largely intact and architecturally cohesive. The craftsmanship of many of the buildings is excellent.

Lafayette is definitely a strong example of community, diversity and opportunity. An All-American city and a great place to live, work, and raise a family.

Moving can be a very big job. Relocating can mean learning a whole new area and what services and products are available. Here are some of the helpful links that may make your transition easier.