Where to start when selling a property
Congratulations on taking the first step towards selling your house! The path to that bittersweet moment when you hand over the keys is filled with important milestones and decisions. To ensure a smooth and stress-free experience, it's crucial to grasp the fundamentals of how to sell a house.
Whether you're a first-time seller or looking to refresh your knowledge of home-selling essentials, my comprehensive 10-step guide has you covered. From understanding what repairs to tackle before listing your home to determining the asking price, and navigating the journey from listing to closing, I've got the answers you need. Let's embark on this exciting journey together, ensuring you make the most of your home-selling experience.
01
Set a Move-out Date
02
Get a Real Estate Agent
03
Make Necessary Fixes
04
Your Asking Price
05
Prepare Your Home
06
List Your Property
07
Marketing & Showings
08
Review Offers
09
Inspection & Appraisal
10
Closing the Sale
1. Set a move-out date
Deciding on your move-out date is a crucial step in the home-selling process. It's a milestone that deserves thoughtful consideration and planning to ensure a smooth transition. Here is an outline of different timelines based on common scenarios:
Typical Timelines:
Listing Prep: Generally, this phase takes around 2-3 weeks, although it may vary based on your specific needs.
Time on Market: Homes typically spend 2-4 weeks listed on the market, but this can fluctuate depending on market conditions.
Time to Close: The closing process usually spans 5-6 weeks but can be shorter for cash sales, typically taking 1 to 3 weeks.
Total Time: In total, a traditional home sale often takes approximately 2.5-3.5 months, while downsizing may require 8-15 months. Cash sales can conclude within a shorter 1 to 3 weeks.
It's important to note that these are rough estimates, and your actual timeline may vary based on your unique circumstances, goals, and local market conditions. Some sellers may require more time for preparation, while others may have a quicker timeline in mind. Ultimately, your timeline should align with your specific needs, so work closely with your agent to create a tailored plan that suits your situation.
2. Find a real estate agent
When it comes to selling your home, timing can be a game-changer, and early collaboration with a real estate agent is key. While it's never too soon to connect with an agent, a smart guideline is to bring them on board at least three months before your target listing date. This early engagement allows them to offer valuable insights and guidance to prepare your home for a successful sale.
A Peek into Realtors' Services
When you enlist the services of a top real estate agent, you can anticipate a wide range of benefits, including:
Thorough analysis of pricing trends and local price per square foot.
Professional-grade photography and expert staging to showcase your home at its best.
Automatic listings on major home search platforms for maximum exposure.
Exclusive previews for fellow real estate professionals, expanding your potential buyer base.
A minimum of two open houses to attract serious buyers.
As a bonus, additional services such as virtual tours, drone footage, and engaging listing videos to make your property stand out.
Considering Selling on Your Own?
While it's possible to sell your home independently, it's essential to weigh the pros and cons. Statistics suggest that For Sale By Owner (FSBO) homes often sell for less—up to 35% less— and the process may take longer. FSBO can also demand considerable time and effort from sellers.
3. Make necessary fixes
When it comes to selling your house, the next pivotal step is deciding how to address repairs, upgrades, and updates. While each home and market is unique, preparing for a home inspection often involves addressing specific issues:
Plumbing concerns
Outdated electrical systems
HVAC problems
Roof maintenance and repairs
Foundation issues
Repairs for broken items like doors, windows, or blinds
Incorporating modern safety features such as GFCI outlets
Additionally, buyers tend to focus on key areas like the kitchen, bathrooms, and the overall exterior of the home. However, this is a stage where seeking expert guidance can be a game-changer.
Pro Tip: Avoid Over-Remodeling
A valuable piece of advice is to refrain from excessive remodeling. For instance, a minor kitchen remodel of around 200 square feet, which includes replacing cabinet fronts, countertops, and appliances, typically costs about $26,790. However, it tends to recoup about $22,963 at resale, according to Remodeling Magazine's 2023 Cost vs. Value report, offering an impressive 85.7% ROI. In contrast, a major kitchen overhaul only recoups about 41.8% of expenses.
Leverage Your Real Estate Agent's Expertise
Identifying worthwhile fixes and improvements is best accomplished with the guidance of a seasoned real estate agent. They can help you prioritize and make informed decisions, ensuring you invest your resources wisely and maximize your home's appeal to potential buyers.
Selling a house involves a range of considerations, and your agent's role is to help you navigate the process efficiently, so you can achieve the best outcome without unnecessary stress, time, or expense.
4. Calculate your asking price
Determining the ideal asking price for your home is akin to a delicate dance. Go too high, and your property might linger on the market or struggle to sell. Set it too low, and you risk leaving potential earnings on the table. Achieving the right balance is crucial, and the most effective way to do so is by teaming up with an experienced agent well-versed in the appraisal process and proficient in calculating listing prices accurately.
Key Factors in Pricing Your Home:
Comps: The sales prices of comparable homes nearby, matching your property in size, amenities, structure, and age, serve as foundational benchmarks.
Unique Characteristics: Adjustments in dollars account for the distinctive features and competitive advantages your home brings when compared to the selected comps.
Market Conditions: Current market dynamics, including inventory levels, buyer demand, and the average time properties spend on the market, significantly influence the pricing strategy.
Navigating the intricacies of setting the right listing price is a collaborative effort between you and your trusted real estate agent. Their expertise, informed by market insights and a keen understanding of the appraisal process, ensures that your home enters the market with the perfect price tag — one that attracts buyers and maximizes your return on investment.
5. Prepare your home
Once you've tackled the necessary repairs, it's time to shift your focus to presentation. Preparing your home for open houses and in-person visits is a pivotal step in making a lasting impression on potential buyers. Your goal? To help them envision their future in your home. Here's how to get your home ready for the spotlight:
Declutter Your Space: Clear the way for a spacious, organized look that allows buyers to appreciate the true character of your home. Consider donating, selling, or storing items that aren't essential during the listing process.
Depersonalize Your Home: Create a neutral canvas where buyers can project their own dreams. Temporarily remove family photos, unique artwork, or any items that might divert attention or create polarization among potential buyers.
Home Staging: Collaborate with your agent to select or adjust decor and furnishings, aiming to instill a sense of newness, freshness, and universal appeal for prospective buyers.
Deep Cleaning: Leave no corner untouched. Thoroughly clean each room, paying special attention to baseboards, grout, and fixtures. Address any odors at their source for a truly inviting atmosphere.
Boost Curb Appeal: Welcome potential buyers with a magical first impression. Invest in landscaping, tidy up the exterior, and add inviting touches like a fresh coat of paint, a new mailbox, or charming potted plants.
Exterior Brilliance: Don't forget your home's exterior. A clean exterior can significantly enhance your home's overall appeal. Consider pressure washing siding, cleaning windows, and removing cobwebs or debris from the entryway.
With meticulous attention to detail and these strategic preparations, you'll be well on your way to presenting your home in the best possible light, attracting eager buyers, and ultimately achieving a successful and satisfying sale.
6. List your property
Now, it's time to unveil your home to potential buyers. To get your listing live, collaborate closely with your agent to input all the essential details into the Multiple Listing Service (MLS), the vital platform that connects properties with eager buyers.
Crafting a Captivating Listing:
During this crucial step, it's imperative to enhance your home's image by creating a listing that accentuates its most attractive features. Your listing should be a compelling narrative combined with eye-catching visuals.
Your listing should include:
Property Type: Specify whether it's a single-family home, townhouse, condo, or any other relevant category.
Location and Neighborhood Information: Provide the address and highlight proximity to schools, parks, amenities, and other local attractions.
Bedrooms and Bathrooms: Clearly state the number of bedrooms and bathrooms in your home.
Size Details: Include square footage and lot size to give buyers a sense of space.
Year Built and Updates: Mention the year of construction and any recent updates or renovations.
Notable Features: Highlight distinctive property features such as a fireplace, hardwood floors, or outdoor spaces.
Appliances and Inclusions: Specify which appliances or items are included in the sale, such as washer/dryer, refrigerator, or dishwasher.
Parking Information: Indicate available parking options, whether it's a garage, driveway, or street parking.
Homeowners Association (HOA) Fees: If applicable, disclose any HOA fees associated with the property.
Asking Price and Financing Options: Clearly state the asking price and provide information about financing options for potential buyers.
Visual Content: High-quality professional photographs and virtual tours to showcase your property's charm and allure.
Maximizing Visibility:
To ensure your property reaches a broader audience, your agent will work diligently to have the listing featured on major real estate search websites. Additionally, they'll employ cross-promotional strategies on platforms like social media, leveraging their network of fellow agents and brokers to give your listing the exposure it deserves.
With a captivating listing that provides all the essential details and a strong online presence, your home is primed for success in the competitive real estate market.
7. Marketing & showings
With your home now prominently featured online and ready for viewing, your agent will take the reins to coordinate showings for prospective buyers as they express interest. This phase is all about flexibility and accessibility, so be as accommodating with your schedule as reasonably possible to expedite the process.
What to Expect During Showings:
You can anticipate showing your home anywhere from 10 to 25 times before receiving an offer, although this range can vary. Homes in high demand may attract offers after just one or two showings, while others might take a bit longer to find the right buyer.
Your agent will be your point of contact and will respond promptly and professionally if potential buyers reach out with questions or special requests. If several weeks pass with limited showings and no offers, it's a good time to have a conversation with your agent about whether it's advisable to adjust the asking price.
Valuable Feedback for Informed Decisions:
Throughout this process, your agent will also gather feedback from the buyer's agents who've shown your home. This feedback is instrumental in shaping your next steps. For instance, if consistent comments highlight the need for extensive renovations, it may prompt you to consider additional updates or a price adjustment.
Remember, your agent is your trusted partner in this journey, and their expertise and insights will help you navigate the showing phase effectively, ultimately leading to a successful sale.
8. Review offers and negotiate
Once you've accepted an offer, the buyer enters a critical phase where they investigate and confirm the property's condition before finalizing the purchase. During this period, the buyer may perform inspections, review property disclosures, and conduct any necessary inquiries to ensure that the property aligns with their expectations and requirements.
Understanding the Seller's Role:
As a seller, it's important to be prepared for this phase, which may involve:
1. Home Inspection: Approximately 78% of homebuyers choose to have a home inspection before closing. If issues surface during this inspection, your agent will guide you through the best course of action, which could include making repairs, negotiating a lower selling price, or providing credits to the buyer.
2. Home Appraisal: The buyer's lender typically requires a home appraisal, with roughly 80% of contracts including an appraisal contingency. Various factors, such as recent renovations, local market trends, and comparable sales in your area, can influence your home's appraised value.
If the appraisal comes in lower than anticipated, options may include disputing the appraisal, adjusting the selling price, or discussing potential solutions with the buyer to address the appraisal gap.
This phase is pivotal for both buyers and sellers, as it allows for the resolution of any concerns or issues that may arise during the inspection and appraisal processes. Clear communication and collaboration with your real estate agent are key to navigating this phase successfully and ensuring a smooth path to closing.
9. Inspection & Appraisal
As offers start rolling in, it's natural to focus on the price, but remember, there's more to consider when weighing your options. It's essential to evaluate each offer comprehensively, taking various factors into account. These factors can range from proposed closing dates and closing costs to seller contingencies, the buyer's financing situation, and other critical elements.
Key Considerations When Reviewing Offers:
Timeline and Terms: Ensure that the offer aligns with your desired timeline, allowing ample time for your transition and post-sale plans.
Beyond Price: While price is undeniably important, it shouldn't be the sole deciding factor. For instance, a higher offer may come with a lower down payment or specific contingencies. Use negotiations to secure terms that align with your priorities.
Financing Concerns: If you have any reservations about the buyer's financing options or financial status, don't hesitate to discuss these concerns with your real estate agent. They can help gather additional information to provide clarity.
Once you've found an offer that meets your requirements and expectations, collaborate with your agent to move forward. Signing the purchase agreement marks the beginning of the settlement process, bringing you one step closer to a successful sale.
After a journey filled with preparation, negotiations, and thorough assessments, you're finally poised to complete the sale of your home. This pivotal stage comes on the heels of successfully navigating inspections and appraisals. As you edge closer to closing day, a crucial document, the settlement statement, will be presented to you. This statement breaks down fees and credits in intricate detail, providing a comprehensive financial snapshot of the entire transaction.
Understanding Your Finances:
Approaching this final step with a clear understanding of the costs and proceeds tied to the sale is paramount. Following the guidance of Alexander, it's imperative to ensure that the closing figures align with your expectations. Unexpected costs can occasionally catch sellers off guard. By diligently reviewing all the details ahead of closing, you can confidently move forward, secure in the knowledge that the outcome will align with your anticipated financial goals.
Final Walkthrough and Transition:
Approximately 24-48 hours before the closing date, the buyers typically conduct a final walkthrough of the property. This step allows them to verify that everything is as expected and that no surprises await them upon moving in. Generally, the buyer assumes possession of the home on the closing day, although specific arrangements may vary based on the terms negotiated in your contract.
The final walkthrough signifies the transition of your home to its new owners, marking the culmination of a successful selling process.