Table of Contents
Most home sellers dream of a stress-free sale where they simply register their home, quickly find a qualified customer, pool the cash, and hand over the keys. If only it were that simple! In reality, peddling a house involves many moving parts — someone you can control, and someone outside your control.
For example, geography can affect how long your home lasts in the market or how much mark-up you can get. Where competition is high and inventory is low, it is likely that you will peddle faster and command a higher price. On the other hand, in places where home sellers have cooled off. Homeowners will probably have to work harder to attract the right customers.
Given the unprecedented growth of the housing market since the coronavirus pandemic, there has been an escalation in the price and supply war, and understated inventory levels, over the past two years. final. However, the market is expected to calm down a bit as mortgage rates rise and prices stabilize.
Here is a list of things to do before selling as home sellers :
So you need to be prepared as home sellers and control the factors that can have a big impact on your bottom line. Things like hiring a great real estate agent and maximizing your home’s online appeal can translate to smoother closings — and more money in the bank.
Here are 11 must-see ways to sell your home in the year 2022:
The internet makes it easy to study real estate agent sales history and professional appointments, so you can choose the right people to work with. Look up agents’ online profiles to find out how long they’ve been in the industry, how many sales they’ve made, and what mentions they might earn. Pay attention to how and where they market their listings, and whether or not they use professional photos.
“Any appointment they get is a huge plus, as it is a signal that they have taken the time to learn about a particular niche,” said Jorge Guerra, Global Liaison for the National Association of Realtors.
Some homeowners may be persuaded to save on commission payments and further peddle their own home, without an agent. This is known as “for sale by owner,” or FSBO. The amount home sellers can save on subsequent costs can run into thousands of dollars, usually 5 percent or 6 percent of the total selling price.
However, agents have experience doing a lot of things to get their paycheck. For example, they can expose your home to a wide audience and negotiate on your behalf to get the best deals. If you are doing it yourself, you will have to personally arrange the preparation of your home, market it, review customer offers, and handle all negotiations and closing details.
When working with agents and negotiating commissions, keep this in mind: The cost of real estate has dropped to an all-time low. So you might be able to take a break at the closing table.
Selling a home is a big business that can take two to four months from start to finish — or longer, depending on local market conditions and available inventory levels.
As soon as you decide to sell your home, immediately research a real estate agent to find someone with the right experience for your situation.
At least two or three months prior to when you have plans to launch a listing, consider carrying out a pre-sale home inspection (more on that below!) to identify problem areas, especially structural or mechanical issues that may need to be addressed to facilitate the sale. Leave sufficient time to schedule necessary repairs.
Pre-sale home inspections are optional, but they can be a wise initial investment. A detailed inspection report can identify any structural or mechanical problems prior to the time you list your home for sale. It might cost a few hundred dollars, but it will alert you ahead of time of the problems customers are likely to flag as they carry out their own inspections later in the process.
By being a few ways ahead of the buyer. The home sellers may be able to speed up the selling process by carrying out repairs along with other home sellers prep work. This means that by the time the next home hits the market, the next home should be ready for sale, drama free, and fast.
If you are going to spend money on an expensive upgrade, make sure that the changes you make produce a high return on investment. It doesn’t make sense to place a new granite countertop, for example, if you just want to break even or even lose money on it. Plus, these upgrades may not be necessary to sell your home at a high price, especially if inventory levels are low in your location.
This is where a good real estate agent can help guide you. They often know what people in your area want and can help you come up with an appropriate upgrade plan. If local customers aren’t looking for super skylights or steam baths, then it doesn’t make sense to add them. A fresh coat of neutral paint, a new carpet, and a spruced-up landscape are usually low-cost ways to make a great first impression.
In general, upgrades to kitchens and bathrooms provide the highest return on investment. If you have old cabinets, you may be able to easily replace doors and hardware for an updated look. For example, you can take over standard kitchen cabinet doors along with modern Shaker-style doors on the weekends without spending a fortune.
Work with your real estate agent to schedule a photographer to take over the marketing photos of your home. High-quality photos are very important because maximizing your home’s online appeal can make all the difference between a quick sale or a languishing listing.
Some real estate agents build professional photography and virtual online tours into their services. Otherwise, however, you may wish to find a photographer yourself. The cost for professional photography will vary based on the size of your home, its location, and how long it will take to photograph the property.
A professional photographer, along with a strong portfolio, knows how to make a room appear bigger, brighter, and more attractive. The same goes for your lawn and outdoor areas. Dimly lit online photos can turn off homeowners especially before they’ve had time to read about the beautiful bike trail nearby or the new roof you’ve just installed, so a well-captured photo can really pay off.
Even in a competitive market, customers don’t want to pay more than the comparable, or “company” , so it’s very important to get the price right. Going too high can backfire, while underestimating the value of the house can result in you leaving money on the table.
To price your home early on, consult with your neighborhood company. This is an information sheet about properties that have recently been sold in a particular area. At a glance, you can get a description of homes in your area that are for sale.
“A common mistake home sellers make is to make sure house prices are too high and then lower them periodically,” Lopez said. “Some home sellers think this practice will yield the highest returns. However, in reality, what often happens is the opposite. A shared house at an exorbitant price will turn off potential customers, who may not even consider looking at the property.”
In addition, a house with several discounted prices can give an impression to customers. They will think that something is wrong with the condition of your home, or is not desirable. So it’s best to avoid the need for double deductions by ensuring the price of your home to attract the widest set of customers right from the start.
Once your home has formally entered the market and the customer has seen it, ideally, offers will come in. This is where a real estate agent (or attorney) is your best advocate and source for advice. If your local market is competitive and likes sellers, customers may offer to ask price or above asking price. You may even get a few bids. On the other hand, if sales are slow in your location and you’re not getting many offers, you may need to be open to negotiations.
When you receive an offer, you have one} choice: Accept the offer as is, make a counteroffer, or decline the offer.
A counteroffer is a response to an offer, where you negotiate terms and prices. Counteroffers must still be made in writing and have a short period of time (48 hours or less) for the buyer to respond to. You can offer credit for paint and carpet but insist on keeping your original asking price, for example. Or, you might offer to abandon certain equipment to sweeten the deal.
If you are lucky enough to grab multiple offers, you may be influenced to pick only the highest. But pay attention to the other factors of the offer, such as:
Keep in mind that if the customer relies on the lender’s financing, the property must be appraised. Any gap between the purchase price and the appraised value has to be made somewhere, or the deal could fall apart.
Both home customers and home sellers have closing costs. Home sellers usually pay a real estate agent commission, usually around 5 percent to 6 % of the selling price of the home. Some of the other fees that home sellers usually pay include:
In addition, if the customer has negotiated any credit that must be paid against closing for repairs or closing costs. The home sellers will pay for it as well. Your real estate agent or closing agent should provide you with a complete list of costs. You will incur at the closing table. Although the customer usually pays most of the closing costs. Neing from 2 % to 4 percent of the sale price, be aware that you may also have to pay some fees.
The good news is, many home sellers will not owe taxes on the profits from the sale of their primary home. If you have owned and lived in your home for at least two out of five years. Before when you sell it, then you don’t have to pay taxes on any profits up to $250,000.
For married couples, the amount you can exclude from tax increases to $500,000. However, if your profits from the sale of the home are greater than that. You must report it to the IRS against your tax return as a capital gain.
There are many documents needed to properly document the sale of shared home sellers. Organize everything in one area to help things happen faster. Some of the key documents you should collect include:
Not all states require hawkers to bring real estate attorneys to closing. Being someone who can be home sellers cost several thousand dollars. But the cost may be worth it to maintain such a large financial transaction.
An attorney can help fill out paperwork, review contracts, and paperwork. Identify potential problems and ensure the sale is as smooth as possible. An attorney will also be able to find title issues that could hold your sale for weeks or months — or even thwart the deal — such as:
You may have heard of roadside appeal. But the professionals explain that online appeal is even more important now. “Your first home show is online,” says Guerra. “The quality of your web presence will determine whether someone calls and makes an impact or clicks on the next list.
Stage and keep it clean for the show
Real estate agents will often suggest that vendors renovate their homes. Organizing a home means removing excess furniture, personal belongings, and unsightly items from the house while it is on sale in the market, and arranging the room for optimal flow and target.
If you’re in a slower market or you’re peddling luxury homes, investing in a professional stager can help you stand out. Nationally, professional home staging costs generally around $1,200, according to HomeAdvisor, but prices can range between around $500 and $2,000.
Let other people show their house
Make yourself rare when potential customers visit to see your home. Let them fantasize about themselves in the room, free from distractions meeting and talking with you. Generally, customers are accompanied by their own real estate agent to view your home. You can also ask your own home sellers to come to the show.
“Seeing a homeowner currently lurking can make customers hesitant to speak their mind,” said Grant Lopez, realtor at KW Heritage and former chairman of the San Antonio Board of Realtors in Texas. “That can mean they don’t really count your home as an option.”