The Parable of Limited Perspectives
A group of blind men heard that a strange animal, called an elephant, had been brought to the town…. So, they sought it out…. The first person, whose hand landed on the trunk, said, “This being is like a thick snake”. As for another person, whose hand was upon its leg, said, the elephant is a pillar like a tree-trunk. The blind man who placed his hand upon its side said the elephant, “is a wall”. The last felt its tusk, stating the elephant is that which is hard, smooth and like a spear.
The Blind Men & The Elephant
Allen bought his house with me in the fall so unfortunately, by the time closing happened, the pool had been closed for the season. The large fenced in yard, hot tub, and of course the above ground pool and patio were truly one of the main selling points of the home that Allen and his family were looking forward to. However, it was only the beginning of the following March, not even six months later, when he got the news; Allen was going to have to relocate for work.
Unexpected changes in life happen, and sometimes these changes can have an influence over where we live, and the homes we own. In Allen’s case, he unfortunately had to sell his new home despite wishing to stay. On top of the stress of moving across the country to an unfamiliar area, there was one stressor that was always on the back of Allen’s mind and that was would he lose money from having to sell his house so quickly? Allen had just completed a major upgrade only weeks before his sudden change of plans, which had cost him over $10,000 out of pocket. On top of paying off the existing mortgage, Allen knew he’d have to pay for a slew of other home selling charges, and there was a chance that Allen could actually owe money on closing day.
Unveiling PEAR: Piecing Together the Housing Puzzle
The first step of our research was to prepare the Property Evaluation and Analysis Report or PEAR. Up until recently, the Comparative Market Analysis has been the preferred method of informing sellers the value of their home. Real estate professionals typically use comparable, local properties in order to determine the value of the house someone wants to sell. In the end, agents come up with an approximate value of a home, in that given time under their market conditions. Because a home is not a fixed asset, price fluctuations are constantly in motion and as we have seen in the last 2-3 years, can seemingly change drastically within a few months.
As we delve into the PEAR analysis, it becomes evident that knowing how much a home is worth is only half the battle. As previously mentioned, their are costs incurred by sellers from selling their home. Not to be exhaustive, these can include both real estate commissions, attorney fees, title fees, and other miscellaneous closing costs.
Conclusion: Building a Clearer Picture of Home Value
At the end of the day, once we completed the PEAR from Allen’s home, we determined that he would not need to pay to close on his house. In fact, Allen was able to get back almost all of his initial investment back, which was more than we could have hoped for.
Like when examining the elephant, when it comes to selling your home, we need to feel and see all the parts, to truly understand the whole picture. To ensure we provide you with the most personalized and effective assistance, we work closely with you to gather essential details about your outstanding mortgage balances, additional loans, and any potential liens on your property such as unpaid child-support and back taxes. This comprehensive approach allows us to navigate the selling process with a complete understanding of your unique situation.
Whether selling a home in Streator or in Wilmington, Illinois, we are here for your real estate needs. Request a PEAR analysis of your property today for a clearer path to a successful home sale!