1. Define your needs
Write down all the reasons for selling your home. Ask yourself, “Why do I want to sell, and what do I expect to accomplish with the sale?” For example, a growing family may prompt your need for a larger home or a job opportunity in another city may necessitate a move. For your goals, write down if you’d like to sell your house within a specific time frame or make a particular profit margin. Work with your real estate agent to map out the best path to achieve your objectives and set a realistic time frame for the sale.
2. Name your price
Your next objective should be determining your house’s best-selling price. Setting a fair asking price from the onset will generate the most activity from other real estate agents and buyers. You will need to consider the condition of your home, what comparable homes in your neighborhood are selling for, and the state of the overall market in your area.
It’s often difficult to remain unbiased when putting a price on your home, so your real estate agent’s expertise is invaluable at this step. Your agent will know what comparable homes are selling for in your neighborhood and the average time those homes sit on the market.
If you want a truly objective opinion about the price of your home, you could have an appraisal done. This typically costs a few hundred dollars. Remember: You’re always better off setting a fair market value price than setting your price too high. Studies show homes priced above 3 percent of their market value take longer to sell. Potential buyers may think something is wrong with the property if your home sits on the market for too long. When this happens, the seller often has to drop the price below market value to compete with newer, reasonably priced listings.
3. Prepare your home
Most of us don’t keep our homes in “showroom” condition. We tend to overlook piles of boxes in the garage, broken porch lights, and doors or windows that stick. It’s time to break out of that owner’s mindset and get your house in tip-top shape. The condition of your home will affect how quickly it sells and the price the buyer is willing to offer. First impressions are the most important. Your real estate agent can help you take a fresh look at your home, suggest ways to stage it and make it more appealing to buyers.
* A home with too much “personality” is harder to sell. Removing family photos, mementos, and personalized décor will help buyers visualize the home as theirs.
* Make minor repairs and replacements. Small defects, such as a leaky faucet, a torn screen, or a worn doormat, can ruin the buyer’s first impression.
* Clutter is a big no-no when showing your home to potential buyers. Ensure you have removed all knick-knacks from your shelves and cleared all your bathroom and kitchen counters to make every area seem as spacious as possible.
4. Get the word out
Now that you’re ready to sell, your real estate agent will set up a marketing strategy for your home. There are many ways to get the word out, including:
* The Internet
* Yard signs
* Open houses
* Social media advertising
* Agent-to-agent referrals
* Direct mail marketing campaigns
In addition to listing your home on the MLS, your agent will use these tactics to bring the most qualified buyers to your home. Your agent should structure the marketing plan so that the first three to six weeks are the busiest.
5. Receive an offer
When you receive a written request from a potential buyer, your real estate agent will determine whether the individual is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, understanding what is required of both parties to execute the transaction. The agreement, though not limited to this list, should include the following:
* Legal description of the property
* Offer price
* Down payment
* Financing arrangements
* List of fees and who will pay them
* Deposit amount
* Inspection rights and possible repair allowances
* Method of conveying the title and who will handle the closing
* Appliances and furnishings that will stay with the home
* Settlement date
* Contingencies
At this point, you have three options: accept the contract as is, take it with changes (a counteroffer), or reject it. Remember: The document becomes legally binding once both parties have signed a written offer. If you have any questions or concerns, immediately address them with your real estate agent.
6. Negotiate to sell
Most offers to purchase your home will require negotiating to create a win-win agreement. Your real estate agent is well-versed in the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. Your agent also knows what each contract clause means, what you will net from the sale, and what areas are easiest to negotiate.
Some negotiable items are:
* Price
* Financing
* Closing costs
* Repairs
* Appliances and fixtures
* Landscaping
* Painting
* Move-in date
Once both parties have agreed on the terms of the sale, your agent will prepare a contract.
7. Prepare to close
Once you accept an offer to sell your house, you must list everything you and your buyer must do before closing. The property may need to be formally appraised, surveyed, inspected, or repaired. Your real estate agent can spearhead the effort and serve as your advocate when dealing with the buyer’s agent and service providers. Depending on the written contract, you may pay for all, some, or none of these items.
The sale may continue if each procedure returns acceptable results defined by the contract. If there are problems with the home, the terms outlined in the agreement will dictate your next step. You or the buyer may decide to walk away, open a new round of negotiations or proceed to close.
Important reminder: A few days before the closing, you will want to contact the entity closing the transaction and ensure the necessary documents will be ready to sign on the appropriate date. Also, make arrangements for your upcoming move if you have not done so.
8. Close the deal
“Closing” refers to the meeting where property ownership is legally transferred to the buyer. Your agent will be present during the closing to guide you through the process and ensure everything goes as planned. By being present during the closing, they can mediate any last-minute issues that may arise. In some states, an attorney is required; you may wish to have one present.
Before the closing, you should make a “to-do” list for turning the property over to the new owners. Here is a checklist to get you started.
* Cancel electricity, gas, lawn care, cable, and other routine services.
* If the new owner is retaining any of the services, change the name on the account.
* Gather owner’s manuals and warranties for all conveying appliances.
