Home Selling Process
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1. Hire a Realtor
Whether you hire me or another Realtor, having representation is key. From staging your home to the actual closing, I will streamline the process for you. During the listing, you will be updated on everything that happens behind the scenes. I will inquire for feedback from each buyer/agent who views your home and send you the progress reports. I will expose your home to the broadest audience in order to get the best possible offer while negotiating on your behalf. Together, we will generate a strategy to see us through the listing period.
2. Prepping your home
You might consider getting a pre-sale home inspection (costs a couple hundred dollars) identifying any problem areas including structural or mechanical issues that might need addressing to facilitate a sale. Whether or not you are sure about the condition of your home, an inspection will reveal issues a buyer’s inspector could surface later or validate the integrity of the home. We will then schedule the required repair to optimize the appeal of your home. Prior to listing, you’ll want to deep clean in preparation for taking photos. Here’s what you’ll need to focus on:
- Pre-sale home inspection– Optional but recommended
- Schedule repairs– results of home inspection
- Upgrades– New carpet, fresh paint and a clean landscape are typically low-cost and optimize the appeal of the home. You want to make sure to invest money into additions or updates that’ll provide a high return on Invesment like kitchen and bathroom upgrades.
- Deep clean– The cleaner the better
- Declutter– Putting excess furniture in storage, keeping countertops clear, etc.
- Stage the house– Arrange rooms for optimal space, use and flow
- Take professional photos– Schedule a professional photo shoot in order to better market your home. High quality photos are imperative. Focus on the home’s online appeal as well as the curb appeal. First impressions start with the online presentations so making sure we get these details done efficiently will make all the difference in how quickly your home will sell.
By being a few steps ahead of the buyer, you might be able to speed up the selling process. This means by the time the house hits the market, it should be ready to sell quickly. Once all this has been completed, we will attach the lock box to your property.
3. Preparing for Listing
The next step in selling your home is understanding the factors that will affect the property value in today’s market, including:
- Location– Most important factor
- Condition– This affects the price and speed of sale. First Impressions are imperative. Optimizing the appearance of the home will maximize buyer’s perception of value.
- Timing- The first 30 days of the listing are very important. This is when buyers and agents become aware of the property and are most likely to view and make offers. Pricing your home correctly is the deciding factor on how long it will stay on the market.
- Comparatives– Prospective buyers will compare your home’s condition and price to other homes in and around your neighborhood. They will determine the value based on properties that are listed or have recently sold in the area.
The market decides the value of your home which tells us where to price your property to sell and which marketing approach to take. It’s about what the buyer is willing to pay and what the seller is willing to accept in today’s market. Most often than not, the first offer is usually the best.
During the first few days of your home hitting the market, ideally, offers will start flowing in. Depending on where the market is at that point, your offers will vary. For example, in a seller’s market, buyers may offer at or above asking price. As the demand will be high and supply low, you may even have people bidding on your home. In a buyer’s market however, if the sales are slow in your area, you may have to consider negotiating.
4. Pricing your home correctly the first time
Pricing your home correctly is the deciding factor on how long it will stay on the market. Pricing too high may have an adverse effect like having to periodically lower the price, while underestimating the value won’t be in your best financial interest.
Homes that have been reduced many times may give buyers the impression that there may be something undesirable about your home. Pricing your home to attract the biggest pool of buyers from the start, is crucial.
This step is done through comparables or comps. This information includes recently sold properties to give you a better idea of what the homes in your neighborhood are going for.
After determining the correct asking price, the property is now ready to be listed on the market.
5. Showings
If you are looking to sell your home quick, showings are an important aspect in attracting buyers. You don’t want to be home when a potential buyer is viewing the property. Also, you don’t want to be the one showing them the home. We want them to be free of any distractions as well as, imagine themselves living in the property. Typically, buyers are accompanied by their own real estate agent. If they don’t have representation, I would be the one to show them the home.
“Seeing the current homeowner lurking can cause buyers to be hesitant to express their opinions and keep them from really considering your home as an option,” says Grant Lopez, former chairman of the San Antonio Board of Realtors in Texas.
6. Offers
When you receive an offer, the buyer Is already pre-qualified so valuable time isn’t wasted. Each one of these offers will be presented to you. You may counter offer, reject the offer all together or accept the offer. Counter offering is where you negotiate the price and terms. This should always be done in writing and executed within 48 hours or less, with the buyer. You may also offer repairs or include certain appliances in the deal, in order the keep from negotiating the original asking price.
When dealing with multiple offers, you must remember, offers come in different shapes and sizes. You may receive a cash offer or an offer with third party financing. If they are being financed then the property will require an appraisal. Any difference between the appraised price and the purchase price will need to be compensated, which can ultimately leave room for deals to fall through. Sometimes the HIGHEST offer isn’t always the BEST offer. Things to consider when deciding which offer to accept:
- Are they strong buyers?
- Are they offering cash?
- Are they being financed?
- How much will they put down?
- Did they request personal property and/or credits?
- Do they have any contingencies?
- When is their proposed closing date?
I will negotiate the details of your transaction with the other agent and guide you through the different variables in considering which offer is best.
7. Seller Closing Costs
There are a number of things incorporated in the closing costs. The seller and buyer are both responsible for different aspects of these costs. For example, the seller typically pays the real estate commission fees which can vary around 6% of the home’s selling price. Other common closing costs paid by the seller may include, government transfer tax, liens on the property, recording fees and negotiated credits paid to the buyer (if applicable).
Before closing, I will provide you with a complete closing cost list of your financial responsibility at the actual closing. Keep in mind, the buyer usually pays a bulk of the closing costs.
