It’s important to assume you will be staying in your current home for the long haul. Certain milestones in life will compel you to move out and find a living space that aligns with your goals and the lifestyle you want. This would make selling your current home inevitable but you have to do so while getting the best benefits out of it. Otherwise, you will only find it difficult to transition to your new life elsewhere.
Selling your home isn’t a decision you can’t possibly make overnight. It’s not a matter of putting a “for sale” sign on your lawn and expecting people to walk in and push an offer. Considering it’s a critical process, you must go through it as carefully as possible. That way, you can move out faster and with little to no hindrance to deal with. Preparation is crucial before putting your home up for sale, so here are a few things to keep in mind:
1. Learn about the current market situation
It’s never wise to ignore current market trends. While you want to sell at a price you think is fair, you have no control over the conditions that determine whether your property is sellable. There are factors you need to keep in mind that will help you identify the right time to sell your property and generate valuable insights on how to make it appealing to today’s buyers. Don’t assume you will be receiving offers immediately once your property is listed. Real estate buyers are more complex, especially if you’re selling in an exceedingly competitive market.
You may not have direct control over factors such as current interest rates and housing supply-demand levels, but learning about these factors will help you choose the right season for selling your home and set an attractive asking price. Read the news on national interest rates as well as the median price for similar homes in your area. It also matters to find out what features and amenities buyers want the most in your area.
2. Come up with a pricing strategy
Once you have done your research on the current real estate market, you should be able to come up with an asking price that attracts motivated buyers without diminishing the potential returns of the sale. This shouldn’t take a short while to do since there are lots of factors you should be taking in. Aside from using the median price in your neighborhood as your benchmark, you should also factor in the amenities you have added to the property ever since you bought it as well as the number of listings available in the area.
Setting too high a price could scare away potential buyers, so make sure your pricing strategy is at par with similar properties on the market. You can also pull up recently sold properties in your area. In any case, it would help if you could obtain a report on market comparables from realtors or websites with valuation tools. When you think you’ve come up with a good number, adjust the price to a level that allows for negotiations in case you’re dealing with savvy buyers.
3. Decide whether to get a real estate professional
Some homeowners would choose to go through the For Sale By Owner (FSBO) process. This would mean handling every part of the selling process without the oversight and guidance provided by an experienced realtor. They feel that going FSBO enables them to control every aspect, from marketing to negotiating, and align them to their long-term goals. This would make sense if the properties being sold via FSBO are smaller or if the owners are in a hurry to move out regardless of the final closing price.
However, handling everything by yourself deprives you of access to the resources and expertise you need to be competitive. At least with a real estate agent, you can promote your home on platforms that allow for better visibility, such as the local Multiple Listing Service and sites like Redfin and Zillow. You may have to pay the agent a commission coming from the proceeds of the sale but selling your home within your timeline is guaranteed. Whichever the case, consider your personal needs when deciding whether to get a realtor to help out or go FSBO.
4. Check for needed repairs
You wouldn’t want to put your home on the market when it has noticeable structural and aesthetic defects. Leaving such issues as damaged pipes and damaged or missing shingles on the roof will turn off buyers or give them a good reason to bring down your asking price. Either way, you will fall short of your home-selling goals if you list your property without making necessary repairs. This is why a pre-inspection is vital before selling. Hire a professional to do the job and list down any major repairs that matter the most to buyers.
In any case, opt for repairs you can easily manage. You can deal with common garage door opener problems by yourself but installing high-end lights and going for a total overhaul of your interior flooring will cost you more than you can gain from selling your home. Unless you have enough resources for a total makeover of the interior and exterior, you might as well go for the expense if it means marketing your home to high-end buyers.
5. Get all your legal paperwork in order
Honesty and integrity are crucial in the real estate world considering that homes are expected to provide comfort, security, and stability to the people buying them. As the seller, you have a legal obligation to let the buyer know about the property’s true condition. This would mean disclosing the issues it has had over the years and the repairs you’ve made to patch up these issues. Whether they’ve decided to purchase or not, at least they know everything about the property before making their final decision.
As you prepare your home for the real estate market, make sure to gather the original appraisal report as well as the agreement you’ve had with the previous owner. You will also need to provide the new owner with any manuals and warranties on appliances and fixtures that will be part of the sale.
Other than these documents, it’s also important to inform the buyer of any liens the property may still have. Do a title search on your property and find out if there are still any tax dues you will need to settle before finalizing the sale. Skipping this step will lead to legal consequences on top of a failure to sell your home.
Endnote
Selling your home requires a great deal of forethought if you want to move into a new neighborhood. With the right amount of preparation, you can spare yourself from the challenges and potential problems that lie ahead.
