Selling a Home
Selling your home can be a complicated process that affects your family and your future. Before you begin this process, you'll want to ensure you have the most up-to-date information. Some things to consider are:
We've prepared this Home Selling Guide to assist you in answering the many questions that arise during the home selling process. When you're armed with the right information, you will be closer to reaching your goal, selling your home fast, and for the best price.
Buyers don't see your home the same way you do. They are very discriminating about its condition, the neighborhood and the price. An average buyer will view between 15-20 different homes before making a decision.
With this in mind, here are some measures you can take to ensure your home presents well to a potential buyer, and garners you the best price, quickly.
Step #1 - Choose Your Winning Team
The first step is to decide how you want to sell your home. Do you want the help of a real estate agent or do you want to sell your home yourself. There are also many sale by owner services available to help you sell your home yourself. If you don't know where to start and don't want the hassle of selling your own home we suggest consulting a real estate professional.
If you require financing for a new home you should consult a mortgage broker to organize all financial matters ahead of time before you sell and or buy a new property.
We understand that the home selling process can become very expensive so we have negotiated discounts with all our partners on almost every service along the way so you have a complete package at the best prices possible! Whether you need a real estate agent or a FSBO marketing service, we can help!
Step #2 - Complete a Home Evaluation
Have a professional complete a full home evaluation before you list your home. The price you ask should be within the range of similar homes in the neighborhood. If it's too high or too low, buyers will question the reasons for this discrepancy. Your home could stay on the market longer than you'd like. You may also have to adjust the price and wind up getting less than you hoped. We offer FREE home evaluations through our partners. See what your home is worth today!
Step #3 - Maximize Your Home's Sales Potential
First impressions are absolutely critical. The look, the feel and the care of your home elicit an emotional response. Even before they walk in your door, a prospective buyer will try to imagine living in your home. Clean everything until it sparkles. Pick up, organize, throw away, scrub, scour, dust and disinfect. Be sure to complete all minor repairs. Buyers are especially keen on work that may need to be completed.
Set the stage with good curb appeal...
Curb appeal is the overall impression that your home creates when viewed by a potential buyer. It is the quality that gets buyers' thinking about your home, as their home. As soon as a potential buyer sees your home, they will begin creating an emotional connection, be that good or bad, with your home. A buyer begins to form a picture in their minds. Could I live here? Can I maintain my current lifestyle in this home? How much work do I have to do? After viewing a home that looks cared for, on the outside, they will want to move inside. Be sure to consider the following areas when enhancing your curb appeal.
Paint
Chipped or peeling paint detracts from your home's appearance. An inexpensive paint job, including front door, fence, shutter and other surfaces can significantly enhance your home's appearance and value. Choose a neutral color that matches the brick, siding, fence or trim of your home.
Landscaping
Mow and edge your lawn. Repair any unsightly patches. Trim trees and shrubs. Replace old pots with new ones. Water flowers. Store garden tools in the garage or basement.
Sidewalks/Driveway
Hose down sidewalks and driveways. Clear any clutter. Store any toys, sporting equipment or bicycles, neatly in the garage or basement. Remove stray weeds from adjoining lawn areas.
Eaves Trough
If possible hose them down, along with the siding and sidewalks. Remove any leaves or debris. If they're damaged or loose, repair them.
Fences/Siding/Exterior
Complete any repairs to these areas. A fence that looks like it will blow over the in the strong wind, leaves a bad impression. Be sure to hose down these areas, prior to viewing.
Cracked/Uneven Foundation
Have this area repaired. A buyer is less likely to purchase your home if they will be hit with foundation repairs.
Lighting
Upgrade any worn or rusted lighting. Warm lighting around your home's exterior creates an inviting appearance. Even a smaller home can appear cozy with the correct lighting.
Finishing Touches
Put out a new, inexpensive welcome doormat. Clean any outdoor furniture and replace old and worn cushions. When you pay attention to your curb appeal your home will likely spend less time on the market. Uncompleted repairs could lengthen the time needed to sell your home. The first impression that a buyer makes of your home is important. It sets the tone for the rest of the walk through. When your prospective buyer falls in love with the exterior, he or she will anticipate an equally appealing interior. With good curb appeal, you're issuing a personal invitation: "Welcome. Come on in."
When is the best time to sell your home?
In the spring and not during the Christmas season or school year. Some people look for bargains during the winter and then try to sell again in the spring. Summer is a good time.
Another key consideration is the economy. How do interest rates compare to your current mortgage? Are they higher or lower? If rates are higher, your monthly payment amounts may be higher than your existing ones upon the purchase of another home. If rates are lower, you may be able to trade up to a more expensive home, and not a significant increase in your monthly financial obligations.
You'll also want to research the market. Is it a buyers' or seller's market? In a buyers' market, there are more homes for sale then there are buyers. This usually means a high inventory of homes, and few buyers compared to available homes. Homes typically stay on the market longer. Prices are stable or may drop. With this type of market, buyers often spend more time looking for a home. Upon negotiation, they have more leverage. You could benefit if it's a buyers' market, especially if you have accumulated equity in your current home.
In a seller's market, there are more buyers for the available homes on the market. This translates to fewer homes for many buyers, resulting in quicker sales and price increases. Buyers tend to make decisions quickly, multiple offers are common, and sellers tend to look less favorable upon conditional offers, for those that are free to close.
In a balanced market, the number of homes on the market tends to be equal to the demand. As demand equals supply, sellers accept reasonable offers. Homes sell within a reasonable time period and prices generally remain stable.
Step #4 - Evaluating the Offer
An interested buyer will present an offer to you or your real estate agent through his or her agent. Your agent will discuss the offer with you, ensuring you understand all aspects. The offer is a legally binding contract which contains the following elements:
-
price
-
closing date
-
conditions, easements, caveats
-
survey
-
home inspection
-
An irrevocable date (you have until this date to accept, or sign back a counter offer).
-
Mortgage details (such as assumable mortgage, seller's buyback, or other arrangements)
Keep in mind that the purchase price is not the final price you will receive. That's because you will have additional fees to cover from the sale of the home including:
Before you accept and sign the offer, it is a good idea to have your lawyer review the offer. This way, you can be confident nothing has been missed, everything is legally accurate, and your interests are protected.
Accepting the Offer
When you are satisfied with the offer, you'll want to accept it. To secure this contract, you will ask the buyer for a deposit. Your agent will hold the deposit. Upon closing, the deposit will be applied to the commission owed.
Step #5 - Sold!
As a seller, you are responsible for ensuring the home is in the same condition it was at the time of closing. This means that the terms of the agreement must be upheld. If the home suffers damage after the time of closing, you must tell the purchaser. At this time, the purchaser could walk away and have the deposit returned, choose to close and receive any insurance proceeds. If the condition of the home changes, prior to possession date, be sure to check with your lawyer, real estate agent, and the purchaser before completing any repairs.
Once the offer to purchase agreement has been signed, both the buyer and the seller are under legal contract to close. If you change your mind, or decide not to sell your home for whatever reason, the buyer has the legal right to commence legal actions. If the purchaser decides to walk away from the deal, you can claim the purchaser's deposit or sue for damages.
When you're closing the sale of your home, you'll also want to be aware of adjustments, net proceeds, and possession date. The costs of these items could be substantial.
|
