Selling a House: Everything You Need to Know
1. Choose a market expert as your agent
You can easily research real estate agents’ past sales performance and credentials Homes for Sale in Bowmanville so you can pick the best one to work with. Investigate the internet profiles of agents to find out their tenure in the field, volume of sales, and potential designations. Keep an eye on how and where they advertise their listings, as well as whether or not they employ professional photography.
Some homeowners could be tempted to sell their home directly, without a real estate agent, in order to avoid paying a commission. The term FSBO refers to a real estate sale by the seller. Sellers can save thousands of dollars on such fees, which are typically 5% or 6% of the final sale price.
Their services include advertising your property to the widest possible audience and engaging in negotiations on your behalf to secure the best bids. Choosing to go it solo means you’re responsible for preparing your home, marketing it, evaluating buyer offers, conducting any negotiations, and arranging the closing.
2. Decide when you are going to sell your home
The entire process of selling a home can take two to four months, or even more, depending on the local real estate market and the amount of available inventory.
To find an agent with the right experience for your situation, begin researching real estate agents as soon as you decide to sell your house.
Consider getting a pre-sale house inspection (more on that below!) at least two or three months before you intend to list in order to spot any issues, particularly structural or mechanical ones that would need to be fixed in order to speed up a sale. Give yourself enough time to plan any repairs that will be required.
In preparation for taking photos, stage your home about a month before it goes on the market.
If you’re considering listing your home, here are a few things you need to do:
- Interview and research real estate agents.
- Organize your home, perhaps putting excess items in storage.
- Identify any issues with your home with an optional home inspection.
- Repairs should be scheduled if necessary.
- An in-depth cleaning.
- Prepare the house for staging.
- Photographs should be taken by a professional.
3. Make sure your home is inspected before you sell it
It’s not required, but a pre-sale house inspection can be a smart upfront investment. Inspecting your house thoroughly before putting it on the market can help you detect any structural or mechanical problems. Even while it may set you back a few hundred dollars, it will let you know about potential problems that purchasers are likely to discover when they conduct their own inspection later on in the process.
Sellers who perform repairs concurrently with other house preparation work may be able to accelerate the selling process by being a few steps ahead of the buyer. This implies that at the time the house is up for sale, it should be prepared to sell, without complications, and fast.
4. Upgrades that are unnecessary are a waste of money
Investing in pricey improvements should be accompanied by a strong return on investment. Installing new granite countertops, for instance, is not cost-effective if you are only likely to break even or even lose money. Additionally, these upgrades might not even be necessary if your neighborhood has low inventory levels and you want to get the best price for your house.
A good real estate agent can help you with this. The locals often know what the area expects and can assist you if any upgrades are required. If local customers don’t want super skylights or a steam shower, it doesn’t make sense to provide them. Good first impressions can often be achieved with a new carpet, neutral paint, and a well-kept yard.
The most profitable renovations are typically those made to the kitchen and bathrooms. If your cabinets are outdated, you might only need to replace the doors and hardware to give them a fresh look. For instance, you may quickly and affordably replace the stock kitchen cabinet doors with contemporary Shaker-style doors over the course of a weekend.
5. Professional photography is essential
With the aid of your real estate agent, arrange for a photographer to visit your property. High-quality photos are crucial because increasing your home’s online appeal could be the difference between a listing that sells quickly and one that stays on the market for a while.
Some real estate agents offer services like virtual tours and professional photographs. If not, though, you might want to go looking for a photographer on your own. Depending on the size, location, and amount of time required to shoot your property, a professional photographer’s fee will vary.
A talented photographer with a strong portfolio knows how to make a space appear larger by bringing in more natural light. The same applies to your yard and outside areas. Poorly lit site photos may turn away potential customers before they’ve had a chance to read about the wonderful bike path nearby or the new roof you recently installed, so well-taken photos can really pay off.
6. Make your house available for sale
In order to speed up the sale of your home, here are some tips to get it market-ready:
Online appeal of the home should be a priority
Although you’ve definitely heard of curb appeal, experts claim that online appeal is now even more crucial. Guerra declares, “The first exhibition of your house is online.” If someone phones and schedules an appointment or clicks on the next listing, it will depend on how well your website is presented.
Prepare it for showings by staging it and keeping it clean
Real estate brokers frequently advise house staging for sellers. When a property is being staged, extra furniture, personal objects, and unattractive items are simply removed from the house while it is on the market, and the rooms are arranged for best flow and function. Investing in a professional stager could make you stand out if you’re selling a luxury house or are in a slower market. According to HomeAdvisor, the national average cost of professional home staging is approximately $1,200, although expenses can vary from $500 to $2,000.
Show the house to someone else
When prospective buyers visit your home, keep a low profile. Without the interruption of your meeting and conversation, let them picture themselves in the area. Typically, when buyers come to see your home, they are accompanied by their own real estate agent. Additionally, you can request that your own agent attend showings.
Grant Lopez, a realtor with KW Heritage and a past chairman of the San Antonio Board of Realtors in Texas, believes that seeing the present homeowner lurking can make potential buyers hesitant to voice their thoughts. It can discourage them from seriously considering your house as a possibility.
7. Price it realistically
It’s critical to get the pricing correct since, even in competitive markets, purchasers don’t want to pay more than what the comparables, or “comps,” reveal. Overestimating the worth of a home can backfire, and underestimating it could result in you losing out on money.
Additionally, homes with multiple price reductions may give potential buyers the impression that there is a problem with the condition of your home or that it is unwanted. It is therefore ideal to avoid the necessity for multiple discounts by pricing your home to appeal to the broadest number of buyers from the outset.
8. Negotiate offers and review them
Additionally, homes with multiple price reductions may give potential buyers the impression that there is a problem with the condition of your home or that it is unwanted. It is therefore ideal to avoid the necessity for multiple discounts by pricing your home to appeal to the broadest number of buyers from the outset.
It is up to you to decide whether to accept or reject an offer when you receive it.
In a counteroffer, you respond to an offer by negotiating the terms and price. A counteroffer should always be submitted in writing, and the buyer should only have 48 hours or fewer to respond. You can insist on maintaining your original asking price while extending a credit for paint and carpet, for instance. You may even sweeten the bargain by proposing to leave some appliances behind.
A multiple offer might tempt you to choose the highest one if you’re lucky enough to get multiple offers. Take a close look at the offer’s other aspects as well, such as:
- Payment method (cash vs. financing)
- Financing methods
- The amount of the down payment
- A contingency plan
- Inquiries about credit or property
- An estimated closing date has been proposed
Be aware that the property must be appraised if a buyer plans to use lender financing. The contract may fall through if there is a discrepancy between the purchase price and appraised value.
9. Estimate the seller’s closing costs
Closing costs are shared by both the buyer and the seller. A real estate agent’s commission is usually paid by the home seller, usually between 5 percent and 6 percent.
A seller may also be required to pay the following costs:
- Taking tax from government transfers
- Fees associated with recording
- Liens that are due
- Fees associated with attorneys
A seller will also pay any closing costs or repairs credits negotiated by the buyer at closing. It is your responsibility to get a complete list of the costs you will be responsible for at closing from your real estate agent or closing agent. You might have to pay some fees in addition to the buyer’s closing costs, which usually amount to 2 percent to 4 percent of the sales price.
10. Tax implications should be considered
The good news is that a large majority of house sellers won’t owe taxes on the proceeds from the sale of their primary residence. Prior to selling your house, you must have owned and resided in it for at least two of the preceding five years. If so, you will not be required to pay taxes on any gain up to $250,000 in this situation. The amount that can be deducted from taxes for married couples rises to $500,000. You must declare it as a capital gain on your tax return to the IRS if your profit from the sale of your house exceeds that amount.
