Selling a house is the most time-consuming and stressful process one can endure. Most home sellers wish the process was simpler — in which they simply advertise their property, swiftly locate a qualified buyer, receive the money, hand over the keys, and bid their house goodbye.
Given the housing market’s remarkable expansion since the coronavirus epidemic, there has been an increase in pricing and bidding wars, as well as unusually low levels of inventory, during the last two years. However, the market is projected to calm down as mortgage rates rise and prices begin to level out.
As a result, as a seller, you’ll want to be prepared and in control of the aspects that might have a significant influence on your bottom line.
But are you abreast of the various nitty-gritties involved in selling a house?
The next 6 minutes will take you through the process step by step and by the end of it, you’ll be viewed as a seasoned professional.
Step 1: Pricing Your House
To correctly price your house, you must consider both your own expectations and market factors. If your house is overvalued, you may not get bids for weeks or even months.
You may evaluate the worth of your house using a variety of internet tools. You may also determine the worth of your property by looking at comparable properties that have recently sold in your region.
Since it is impossible to locate a precise match, you (or your agency) may need to make some changes.
If you need to sell your house soon, try pricing it competitively. If you can wait a few weeks or months, consider paying a higher fee.
Step 2: Weigh Your Options
There are many ways you can go when it comes to selling your house. A lot depends on you. Some of the recommended methods are…
Traditional Real Estate Agent
One of the most traditional methods is to hire a real estate agent who can support you at every stage when selling a house thereby making your work much simpler.
In the conventional sense, a seller must pay the listing agency 3% of the selling price and the buying agent 3 % of the sale price. In a nutshell, a real estate agent will handle everything from listing through closing for you.
For Sale by Owner
When you go the For Sale by Owner (FSBO) route, you have to handle the whole selling process without the assistance of a third party. No seller agent is involved during the selling process whatsoever.
Even if you save money on the listing agent commission, you will have to do all the running about to get make sure everything runs smoothly; right from listing, repairs, hiring an inspection officer, negotiations, marketing, paperwork, closing, and so on.
Flat Fee MLS Listing Company
The traditional selling route compels you as a seller to pay a commission of 2.5 – 3 % on the final sale to your listing agent. Though this number varies by state, it remains considerable at roughly 5-6 % on average.
Flat Fee MLS listing companies are gaining popularity because you pay a fixed flat rate, get maximum exposure, possible, make a quick sale, don’t get ripped off, control the entire sale process and amend the contract with the company your hire as per your preference.
The other lesser-known option is if you approach discount real estate brokers— similar to traditional real estate brokers but at discounted rates to sell your house. This method is not very widely used and may be available only in select states.
Step 3: Make Your Home Market Ready
If you want to bag your dream selling price, then your house needs to look like someone’s dream home. Follow these steps to prepare your house for a sale.
Take Care of Repairs
If your house requires any repairs, make sure they are completed before you begin the selling process. Investing in crucial repairs may help purchasers view a well-constructed home.
Tidy Up Your House
Make sure you clean up your space and remove any personal belongings scattered around. By implementing this process, prospective buyers will be able to imagine what their future house would look like.
Work On Your Curb
First impression is the last impression and you want to make every impression count, trim your lawn, pressure wash the sidewalk, and tidy up the curb with some fresh flowers, or eye-catching artwork. Your customers should feel welcomed when they first step on your property.
Touch up With Some Paint
Repaint your home with shades of grey, beige or white. Preferably keep the palate neutral for prospective buyers to visualize better for when they decide to buy your house.
Hire a Staging Professional
One of the best things you can do to ensure a successful sale is to hire a staging professional. He or she would be able to use the rooms and furniture in a tidy and appealing manner. In the context of the selling process, staging may be quite beneficial. The expenses of staging vary per state.
Step 4: Start Marketing
Check out these recommended options to market your property…
MLS Listing
If you hire a real estate agent, they will advertise your house as well as list it on the MLS. They are in charge of taking professional pictures, putting up “for sale” signs in your yard, and doing other things to sell your house.
If you decide to sell the house yourself, you will be responsible for doing everything by yourself. You will list your house in the MLS database so that potential buyers may discover it. You will have to pay a fixed charge to list your house in the system because you are not using a real estate agent.
Yard Signs
The traditional yard sign is one of the most underrated marketing methods. These draw the attention of everyone passing by the house and stimulate curiosity from neighbors and their acquaintances.
FSBO Sites
If you are not dealing with a real estate agent, you should advertise your house on FSBO sites. When you go the FSBO route, listing packages are approximately $100 for a period of six months on FSBO.com. Websites like Realtor.com, which is hand in glove with Trulia and Zillow and lists your property on them as well, costs approximately $400 for six months.
Other Real Estate Websites
If you don’t want to pay the high fees associated with FSBO packages, try advertising your house on Zillow, Trulia, and other real estate websites. These websites do not charge a fee to publish house listings.
Step 5: Schedule an Open house
Schedule your open house during a time that is convenient for both you and the visitors, such as a weekend or evening. A usual open house lasts two to three hours, however, it can be extended if necessary.
Spread the word about your open house on social media and seek help from your friends and family to help you advertise it. You may also distribute leaflets in the surrounding region to attract additional potential customers.
During your open house, attend to the potential buyers, even if they don’t appear to be serious about buying your house. Be patient, don’t take anything personally, and answer all questions your prospective buyers have for you.
The purpose of the open house is to inform everyone that you are selling your home and to create a favorable first impression of your property. The good thing about scheduling an open house is that the visitors to your property may tell others about it, which means you, will receive more offers following an open house.
Step 6: Start Negotiating and Start the Paperwork
When selling a home, negotiation is as vital as any other phase. The two most important negotiating strategies are making a counter-offer and asking for the best and highest offers. When negotiating proposals, it is also necessary to consider other elements such as contingencies, concessions, responsibilities, and so on.
Simultaneously get the paperwork in order. Some of the paperwork you will require is…
Title Certificate
This document empowers you to declare that you have the legal right to sell the property.
Purchase Agreement
The purchase agreement is a standard form of real estate contract that contains the various condition of the transaction to which buyers and sellers have mutually agreed. It includes information such as the sale price, financing contingencies, property description, and so on.
Closing Cost Document
The closing cost document explains all of the costs associated with the transaction. The paper is not complex and may be completed quickly.
Transfer Agreement
This paperwork allows the seller to legally transfer the title to the buyer. Read this document carefully and double-check all facts related to the legal description of the property.
Bill Of Sale
This document consists of the information about the seller and the buyer, as well as the final selling price.
While there are additional documents as well which may be needed during the closing process, it depends from state to state. Nonetheless, these documents are the most important ones you need to get in order when selling a house.
Step 7: Closing and Shaking On It.
Signing the title and escrow paperwork is the final stage in the house selling process. The closing procedure is usually overseen by a real estate attorney. When you go to sign these forms, bring a valid photo ID with you.
Following your signature, the seller will become the new owner of your house. The funds will be wired to you, and the sale of your home will be completed. Ensure that the title firm has a closing date set up early in the process.
Final Word
The process of selling a house is a complicated procedure. Furthermore, various states have different methods of selling a house with different paperwork and rules, which can be perplexing for home sellers. A seller may engage a real estate agent to assist in the selling process, but this may result in expensive commissions. Alternatively, the seller might go FSBO using for sale by owner websites, but this would include conducting all of the difficult formalities on their own.
In a nutshell, we have explained how to sell your property and kept you abreast of the nitty-gritties the process involves so that you can confidently sell your home like a professional.
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