How to Sell My House? Guide To Selling A Home

How to Sell My House? Guide To Selling A Home

Contrary to common opinion, there are more ways than one to sell a home! The question of how to sell your house may seem like a tricky one, but it doesn’t need to be. So you should absolutely ask “how do I sell my house?” rather than thinking from the outset that your options are limited.

There are a lot of different ways to sell a home but here is a list of some of the general things that happen.

Decide How to Sell the House

It seems a bit oxymoronic to have the first step to decide how to sell the house. But there are many different avenues in which a house is sold.

• Real Estate Agent - The real estate agent, also known as the listing agent, is the traditional route in which a home is sold. A deal is made and the agent will market and prepare the home, file the paperwork, and eventually find the buyer (usually through a buyer’s agent). A commission on the amount of the house being sold is split between the listing agent and the buyer’s agent.
• For Sale By Owner (FSBO) - This is a less traditional approach, but it tends to be cheaper, yet more time intensive. All of the steps typically handled by the agent will have to be assumed by you. You may save some on the commission, but it may be harder to prepare and sell the home.

There are different hybrid scenarios within the two described above. Here are a few to show what other options are out there.

• Flat Fee on a Multiple Listing Service (MLS) - A MLS is a platform where real estate agents can post different properties and prices in the area. The are hundreds of local MLS and they can be combined to create regional or national MLS groups. This adds exposure to the market. Only a real estate agent can contribute to an MLS, but a flat fee can be paid to an agent, regardless if the home is sold.
• Cash Offer from an Investor - There are well-funded agencies that will buy homes as an investment and then re-purpose or resell them. There is a large gap between the value of the home and the amount that is paid, but often they don’t require certain contingencies, such as a home inspection. An incentive is that it is quick and easy, and cash may be paid upfront.
• Discount Agent - A real estate agent is expected to perform certain responsibilities, and a discount agent is a real estate agent that provides fewer services for a lower commission. Thus, it is a cheaper option, but requires more from the home seller.

You need to understand the benefits and drawbacks of each selling method as you consider your options. For example, selling your home yourself gives you complete control over the sale, and you avoid paying potentially costly commission rates to an agent. However, you will not be working with an established network and you may make costly errors in pricing. Additionally, selling your home yourself is hard work. Likewise, selling through a cash investor may enable you to sell quickly, but you may end up selling below market value. By listing with a real estate agent, the hard work of selling is taken out of your hands, but you will lose some revenue through paying commission. The pros and cons need to be weighed to find the right solution for you.

Determine the Price

To sell anything it is very important that a price range is settled on. This can come in various ways, but one of the most effective tools is an appraisal.

A pre-listing appraisal before a home is sold allows you to determine the value of the home, especially based on factors such as land value, position, neighborhood, etc. This will help aid in a fast sale.

An appraisal will help facilitate the purchase for the buyer. It will show that the pricing is well-founded, which is very appealing. When a buyer attempts to finance a home an appraisal is necessary in order to receive the cash for the value of the home. It puts the bank at risk if they lend money above the value of the home.

Prepare the Home

In order to sell a home, it must be in good selling condition. It has to attract the buyer, however you don’t want to spend more than what would actually increase the selling price. Consider doing minor touchups such as new carpet, a fresh paint job, and landscaping work. Bathrooms and kitchens tend to have a high return on investment by increasing the selling price.

Another thing to consider is a pre-sale home inspection. A professional home inspector will view the home and take note of certain liabilities or faults with the property. Also, this can be very beneficial because if few problems are found while inspecting the home, it can attract more buyers or help when closing the deal. A home inspection prevents you or the buyer getting blind-sided later on.

This would be a great time to take professional photos of your home. First impressions mean a lot, and now where is that more true than in the purchase of a home. Photos can draw potential buyers to see more, and then hopefully close on the home.

Market the Home

Now it’s time for people to come see your beautiful home. It’s great to use the traditional channels such as a sign on the front lawn, and word-of-mouth, but there are many other options as well. If you are working with a real estate agent, he will post it on a MLS. Seek other technological channels in your area in order to get as much market exposure as possible.

People will want to come and view the property. Set times when the house will be clean, quiet and suitable for potential buyers to take a tour. Consider having a third party agent show your home to others. This stage may feel like you are a guest in your own home, but it is critical for facilitating a purchase. Try to have as many people as possible view the home.

Review Offers and Negotiate

Nothing is certain until it’s in writing. If a buyer shows interest accept a formal, written offer. There will be other offers so don’t be too hasty. Allow multiple offers to be received and considered before selling the home.

There are many more factors than just the price. Some things to consider are:

• Cash vs financing
• Closing contingencies
• Downpayment amounts
• Timeliness
• Requests for credits
• and much more

The devil is in the detail. It’s important to be very explicit about these things when negotiating the agreement.

Close the Deal

You’re getting so close to finishing the deal. At this point or perhaps earlier, it might be beneficial to consult with a real estate attorney. This will allow for any future legal complications to be taken care of and for the deal to finish out smoothly.

It’s important to keep all of your documents in a safe but readily accessible location. Some of these documents include:

• Mortgage loan information
• Final purchase and sale agreement
• Most recent tax information
• Deed
• Title report

Bottom Line

This article includes only the basic process on how to sell a home. When it comes time to sell your home, your strategy must be more specific to your selling environment. But don’t worry that’s why we are here to help.