Buying or selling a house is not as simple as bargaining for other things; it is a huge responsibility and a step that you should take very seriously. Even if your home does not comply with housing standards, there are still certain ways to sell a house with code violations. If you are someone looking to sell your house, we shall go over steps you must follow and tips plus tricks you can use to land a deal successfully. Let’s get started!
Step 1: Pick Your Marketplace
Picking a marketplace and channel you are going to sell through is the first and most crucial step. This will help you build a strategy, set a price point, and prepare your property. Listing homes in other places is easier than contacting real estate agents. However, you must weigh the benefits and disadvantages of each channel before making your pick. Make your choice based on your circumstances and the condition of your home.
Work With A Real Estate Agent
A listing or real estate agent helps you market your home and reach out to potential clients. They are responsible for communicating with the client and handling all paperwork. They work both ways and can help people buy or sell a property. Most home sellers opt to work with a real estate agent because they can offer immense guidance and better understand the market, pricing, incentives, and buyer expectations. Most agents charge 5% to 6% commission. This can vary based on your location or region. Make sure also to keep other selling costs in mind before you plan on listing your home.
Opt for FSBO
For sale by owner or FSBO can be chosen if you do not wish to work with an agent. As the owner, you will be in charge of all aspects related to the sale of your home. You will not have to pay agent commissions and can set your selling price.
The buyer will have to pay a commission to their agent if someone is involved. You can negotiate rates with the buyer’s agent in that case. As a homeowner, It is easy to demand more if your home is in top-notch condition. Not only can you set a high price point for a well-maintained home, but you will also get more offers:
- FSBO saves money but requires extra effort and time
- All paperwork needs to be managed by the seller
- If the seller chooses to sell online, the responsibility of taking pictures, typing listings, and scheduling meetings will fall on their shoulders
- Poor knowledge of the real estate market can land an owner in a hot mess and cause them to land a poor deal accidentally
- First-time home sellers should not pick FSBO as saving up on the fee may not be worth the time, effort, and management required
Deal Through an iBuyer
Repairing your home to look presentable, scheduling meetings, and landing on poor offers for months can be quite a hassle.
It may be a good idea to list your home online through an iBuyer to help reduce uncertainty and increase convenience.
- It is easy to receive competitive offers online.
- The seller can choose their timeline for meetings and selling.
- Only a small fee is charged for using online services.
Step 2: Set a Price Tag
Setting a price tag on your home should be based on the market’s expectations and what you expect as a seller. Your selling offer should lie within a range that is comfortable enough for buyers and profitable enough for a homeowner.
Use online tools to estimate the value of your home. Compare the size and location of your home with other similar houses up for sale. Make sure these have been sold out near the same price tag you wish to offer.
Alternatively, you can also ask around for rates in your neighborhood. Make sure to consider swimming pools, mountain views, vaulted ceilings, yards, and other infrastructures that can help you scale your price point.
Another important thing to note is that if you wish to sell your property sooner, lowering the price a bit can help you do so more easily. However, if you are okay with waiting for months or years, you can opt for a higher price tag.
Step 3: Prep Your Home
A property in superb condition is likely to sell much faster than a poorly maintained one. You will also likely receive better offers and justify your price range.
Decluttering makes a home look presentable, spacious, and clean. Make sure to clean shelves, closets, corners, and countertops, and remove any items just lying around. If necessary, change the furniture setting and use additional storage to make your place look more welcoming. It is also a good idea to install adequate lighting.
Decor and Repair
Adding decor to your home may be a good idea but make sure it does not distract from the actual space. Pick neutral colors over funky ones. Remember that you are selling your home without all the furniture and decor inside, so offering visitors a blank canvas for imagination is your best bet to land an offer.
Before inviting buyers, also make sure to repair any cracks and broken windows. A home in good condition is likely to sell for a better price. It should also stay in good condition until the actual transfer to prevent the buyer from backing out. Repair your lawn and any wall cracks, flush the water heater, and check out your HVAC air filter,
Step 4: List Your Home
Real estate agents usually list homes on the MLS database and market them using the following:
- Professional photos are posted
- Property area and yard signage are mentioned
- Organizing an open house
- Hosting broker or agent showings
Under FSOB, the owner does all of the above so that the MLS can feed the listing to other popular real estate engines. You will also need to pay a listing fee to post to the MLS via a service in case of FSOB.
Step 5: Schedule Home Tours
Once you start receiving offers, it is time to schedule home tours for potential clients. You can pick your timings or allow visitors to come in whenever they find it convenient. Keep your house clean and tidy, so emptying on short notice won’t be a hassle.
Step 6: Negotiating and Accepting an Offer
If a buyer likes your home and offers a written offer, it is time to start considering whether or not to make the deal. You can consider your first deal or wait for others before making your final decision.
- Buying offers should be accompanied by proof of funds and a pre-approval letter
- Buyers may ask for a closing cost to complete closing fees
- You can provide concessions or negotiate as the seller to cover insurance, inspection, origination, homeowner association, and other fees for the initial year
- Sellers can pick an offer based on whether they want to opt for cash or bank transfer of the selling amount
- Sellers must consider buyer’s contingency which allows them only to buy another property after they have sold off their current one
- Sellers must pick a timeline and closing date based on their schedule, commitments, or contingencies
Step 7: Close the Deal
The final step to selling your house is picking the best offer and closing the deal
- After delisting from the market, a buyer is allowed to inspect the home thoroughly
- The buyer needs to obtain financing for the property (underwriting period)
- Banks inspect the buyer’s financial condition to ensure they are suitable candidates for a mortgage loan
- Seller signs the title and escrow documents. Make sure to carry a photo ID and other important documents to be a part of the public record
- The seller obtains the cash amount or is wire transferred to them
Once you successfully sell off your old home and get hold of the payment, you can start planning on moving to a new one. If required, you may want to consider living on rent if you were not able to purchase a property immediately due to a contingency. While waiting to move to your new home, starting shopping for decor, furniture, and other items you plan on using is a good idea.