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How To Showcase Your Property To Enchant Buyers, Part 6

Updated on January 28, 2010

Just like the smartest entrepreneur is the last one to start a business in a recession, the smartest home seller is the one who sells on an upward curve in the pricing and demand cycle. The upcoming increases in interest rates will no doubt hamper the full effect of an all out spike in real estate prices, so the growth will be moderate and should be sustained through the next year or two at least. Take this into consideration.

Shop around for a reasonable commission structure: Commission structure for real estate sales is primarily commission percentage based, and ranges from between a low of 1% to a high of about 10%, but is generally in the range of 3.5% to 7.5% for most residential properties. However, there are a wide variety of options available in commission structure from different real estate brokers, so it pays to shop around. Although a percentage of 7% may not sound like much, apply it to a house which sells at $500,000 and you're paying $35,000, or the cost of a new luxury car!

Watch out for the killer survey clause: The survey clause is also a leading area where legal mistakes are made. The property buyer has the right to add a clause specifying that the sale is contingent on a survey report being produced. This is a minefield for the seller, as if you have done any additions to your home, such as added a pool or enlarged your garage, the survey is no longer considered as current and a new one may be required. The cost of this survey can run to over a thousand dollars, and its results could cost you the transaction. Again, if a survey clause is worded properly it can offer significant protection to both buyer and seller, but sloppy wording can cost you thousands.

Preparing your house to be placed on the market can be an arduous task. You should place yourself in the mindset of the shopkeeper. You are displaying a product for sale, and you wish to present it in the best possible light in order to make sure that it sells quickly. You have to leave your emotions packed away before you enter into any form of real estate transaction. You cannot keep thinking of your house as your own personal domain, and think of every nail in every wall as your own offspring that you can't bear to part with. It is nothing more than a toaster on the shelf at Wal Mart. It is a commodity which needs to be cleaned up, displayed well, advertised properly, priced right, and moved out as quickly as humanly possible.

Yes, this is a difficult demand to make on any home owner, as a home becomes much more than just a product subject to cold calculations of net profit. However, it is those sellers who can not only accept but totally embrace this concept of the arm's length sale of a home that turn out to receive the highest profit from their investment. Stay cool, stay calm, keep your eye on the prize, and you will be very well financially rewarded.

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