Local Selling Tips
Once you've made the decision to sell your home, it's time to think about what comes next. Throughout the process, you may find it beneficial to have a checklist to help guide you in some very important choices that you will be making in the coming months.
Interview Several REALTORS®
A REALTOR® is a person who you will enlist to help with the selling of your home. Just like no two homes are alike, no two owners are alike and each has different needs when it comes to real estate. The REALTOR® that you ultimately choose will have access to your home at any time and will be responsible for marketing it to potential buyers. As such, you should choose someone that you feel comfortable with and will do the best job for you. The only way to know which REALTOR® this will be is to speak with more than one, ask plenty of questions and get a feel for how they do business.
Get An Appraisal
When you list your home for sale, an appraisal will be helpful for a number of reasons. As the seller, you may wonder why you would need to have your home appraised, but here's why. As a seller, you do not want to overprice or underprice your home. If you ask for more than the home is actually worth, lenders won't likely grant a loan even if you find a willing buyer. If you price your home too low, not only will you be taking away from your own profit, but potential buyers may wonder what's wrong with the home that it's priced so far below market value.
With an appraisal, you can list your home with the knowledge that you need to make sure the price is right. If you want to advertise the home as a bargain, sell it somewhat below the appraised value. Buyers will know they are getting instant equity in the home and lenders will see the investment as a good one.
As a final thought to choosing an asking price, note that your REALTOR® will require a commission and possibly other fees in connection with listing your home on the market. It's perfectly acceptable to ask the REALTOR® for a written summary of these fees, as opposed to just a mention of them in the contract, and how much they will be. With this information, you will know exactly how much money you will have left in your pocket from the sale of your home.
Decide How Quickly You Want To Sell
Believe it or not, your schedule could greatly impact the listing price. If you are in a hurry to sell, you may find that a competitive asking price will help you to get the cash you need much quicker. A price that reflects the higher end of a buyer's budget may take some time to sell, so consider these factors when pricing your home.
Make Time For Updates
Your REALTOR® will offer advice as to what needs updated, repaired or changed in order to maximize the potential of your home. When a buyer looks at a house, they are looking at the cost, needed repairs or upgrades, decor, etc. Once your REALTOR® does a walkthrough and explains what, if anything, needs updated, you will commit to an asking price and sign the listing agreement.
Field Offers
As a seller, you are probably already aware that potential buyers will make an offer that could be less than your actual asking price. Most REALTORS® will tell you that if you ask for 'X' amount of dollars, buyers will probably offer you 'X' amount instead. That's the name of the game, and you will need to decide whether or not your asking price is firm or negotiable. If an offer comes your way, you will always have the option of making a counteroffer or simply rejecting the deal altogether.
As a final thought to the negotiation process, keep in mind that buyers typically offer less than they are actually willing to pay initially. Most offers are time sensitive, which means you may have to make some quick decisions. Of course, your REALTOR® will be there to guide you through every step of the process and will likely offer an opinion as to whether or not an offer is fair in the current market.
Close The Deal
When the price is right and you agree to the terms, it's time to say goodbye to your former home and hello to a brand new life. Letting go is not always easy, but moving forward is a part of life. If you still live in the home, most contracts will require that you move within 30 days. If you no longer live in the home, most buyers will want to move in immediately.
In addition to location and condition, the asking price of a home is at the top of the list of important considerations. When a potential buyer is looking for a property, they want to get the best possible value for their dollar. This doesn't mean that a home should be priced too low, but it does mean that knowing how to price your home is a must.
Know The Value
Regardless of whether you are in a buyer's market or seller's market, it's important for every seller to know the actual value of their home with the help of an appraisal. With this information, you will be able to choose a listing price that does not exceed the home's value. At the same time, you will know how to react to various offers that a potential buyer may make. If you can select a price that is affordable to a range of buyers, you may receive multiple offers thereby sparking a possible competition among the interested parties.
Do Your Homework
The asking price that you choose should not be based on an appraisal alone, but rather a combination of factors. One such factor is that of recent selling prices for comparable homes in the area known as “comps.” Important comparisons include construction year, square footage, views (if applicable), interior upgrades and additional features that make the home unique. While you're doing research, check out current listings and the asking price for each home available in your area.
Set A Realistic Timetable
In researching the sale price for other comparable homes in the area, you should also note the length of time a particular house has been on the market. Some homes practically sell overnight, while others may remain on the market for months without being sold. If you want to sell your home quickly, you should consider this when setting a price. A bargain will obviously move quicker, but it's important to make enough from the sale to feel good about your choice. If you aren't in a hurry to close, talk with your realtor about a fair starting price that's at or near the appraised value of your home.
Ask Your REALTOR® For Advice
While you hold the key, so to speak, to your house's actual asking price, most sellers will ask their REALTOR® for their opinion. After all, real estate is their business and they will be working with you through every step of the process. If you choose a REALTOR® that you trust, give great consideration to the advice they offer.
