5 Steps You Should Follow When Selling Your Home
Selling a home is a complicated task for most homeowners. Getting a profit as the prices for homes fall is the greatest headache for most owners. Moreover, it’s hard to get the right buyer. Sometimes you may find people who just want to know the home’s price. They are not bothered with buying it. Most people prefer to have middlemen to do the selling. Middlemen are not cheap. It is a good act to do selling on your own for you may walk away richer. You will probably smile with a few more dollars in your pocket.
It doesn’t come quickly, though. Sometimes, you may end up starting with a lower asking price. The importance of a real estate agent is that he does a better negotiation. Moreover, he may sell it faster. You are not at a loss yet. Instead of Realtors and discount brokers, you can still do it on your own. You can make it worth the time. All you need to follow is the tips required in every step you take. The steps may be few, but their requirement is what costs many sellers. Follow the next steps when you want to sell your home;-
Step 1: Deciding to Sell
It tempts to sell your home when real estates prices are on the rise. You need to sell when you need to, not when the market tempts you. You have to list your home when you need to. If you are facing family issues, you may not have the right energy to do it. At such a time, you will lack the time or energy to do the selling tasks. Ensure that when you sell low buy cheap. It’s only fair if you sell the house for the current price. Before you pull the trigger, get to know these few things;
During the boom period, there is a high tendency of equity evaporating as home values dropped. It happens because people borrow a lot. Some may owe more than the value of their home. If you’ve been keeping yourself off because of this reason, you may have better equity at your home. With market upswings, you may make a good selling; ending with your capital intact.
A Shrinking Family
When you get the empty nest syndrome, you probably need to move. It may be the time your last born child is getting married. There comes the need to pack up that extra bedroom. At this time, the operating cost and maintenance may be little. You will need less cleaning. One sentence works for this. Go for it.
Interest rates usually affect the mortgage of the home. Most people wonder about the right time to get the sound mortgage rate. The best time is when the future prices seem to go north. You need to sell at the time and buy at the low level. Always ensure that your mortgage fits the budget you need. Keeping your payment to 25% a month is suitable for a 20-year fixed mortgage. It will save you for a lifetime.
You need to consider if your home fits the way you live. If your home no longer meets your daily needs, then it’s time to sell.
In this stage, you need to plan for what you will do after you sell. This is also the time you will decide if you move elsewhere. Therefore, create a plan on how you would use the money so that you don’t waste it after you make the actual sale.
Decide on the Sale Method
You may choose to contact a realtor or opt to sell on your own. If you wish to sell on your own, you need to overcome some challenges such as negotiation on your own. You may decide to advertise your home on the Internet or print media.
Step 2: Preparing and Repairing
This procedure is also known as staging. Get the right tools and kits that will ensure the work is useful. Adjustment of structures such as brick walls is essential in making the home beautiful. It does not only help for faster selling, but it adds more value to the home. The following tips assist in staging your home for viewers;
You Need to Get Rid of Any Excess Stuff in the House
You may do this by putting it in the store. Wise still, you may give it to a friend. Make sure you show the people an excellent space. It gives them a great fantasy of living in a better home. You should not remove everything. It will make it look like a generic home. Instead, live some personality. It gives them a hint of what they may do if they move in. However, make sure you live bulky furniture out. It makes the house look small.
Put a Fresh Paint
It’s good to ensure your walls have a neutral color. It makes them look bigger and lighter. It is good when viewers think of adapting the rooms to suit their needs. Moreover, it makes it easier for them to move in. Don’t leave your walls bright purple. Freshen up the entry with a little sweep of a lovely color.
Fix and Clean
Repairs do more good than harm to the house. A little fixing of the holes and doorknobs gives a good impression of the house. It makes it look newer than it is. It’s good to know that most buyers prefer to move in without making significant changes to the house. Make sure you clean everything. Wax the wooden floors, clear limescale and repair the tiles. You can also hang fresh towels. Sparkling appeals. It sweetens the imagination of the buyer. Tidy the bushes and cut the grass. You know, if the garden is tidy, the house sells itself.
Update the Kitchen
Never underrate the value of the kitchen. It may be the most important room that is worth its square feet. When buyers are unsure of buying the house, this room makes the difference. Ensure the plumbing fixtures are upgraded. Fix the counter tops and reface the cabinetry. It is quite cheaper than buying new cabinetry.
Light a Fire
Burn some pinecones. It not only kicks the cold away but it brings a better scent. Moreover, it makes the home warm. It is a feeling of invitation. However, make sure you leave the fireplace clean if there is no fire in it.
Get the Right Scents
By right, it means the most appealing smells. It works especially if the buyers are female. They have a sensitive nose. First, clean the drains, open windows and air the kitchen. It leaves the kitchen free of old cooking smells. If you smoke, worry not. You need to place a vinegar bowl in the house and let it stay for three days. When you open the window, stale cigarette smell will be no more. You don’t have to do tedious jobs like baking bread for every viewer. Keep it simple. Brew some coffee. It turns on the nose
Lighten and Air
Put wall mirrors in the room. They give a bigger and airy feel. Consider putting more in the smaller rooms. Make sure you clean the windows from both inside and outside. It lets much light in the house. Put lamps in the dark corners. Create a warm glow in the bathroom by putting a soft light. By this, you will lure the buyer more as your house will be more appealing.
Step 3: Marketing
Selling of homes is full of advertising and marketing outlets. Most of these are changing. The internet and social media are evolving, with more people turning to them. You need to know that the way you market your home will determine its sales price and the time you sell. Putting a “For Sale” sign on your front lawn is not enough. Neither is running a selling ad in the Saturday Newspaper. The goal of marketing is to ensure that your house gets much exposure in the housing market. It’s pure mathematics, the larger the pool of buyers, the more likely you get offers.
When you receive many offers, you’re creating a buying atmosphere. It may increase the price of the house as the buyers may try to get better off each other. There are three ways in which people market their homes; Internet marketing, print media, and comprehensive marketing. The following are a few tips on how to sell your home;-
Photograph the Front
Most of the buyers will look for a home online. It is essential for them to see good photos of your house. You will probably get few people if you list with an exterior shot. It will be worse if you don’t put a picture at all. Remember that buyers are usually visual. Here are ways of taking a good picture;
- Crop streets and sidewalks
- Remove vehicles from the front of the home
- Shoot close or angled photos.
- Avoid putting a shade on the house
- You should remove vegetation that may block the front door.
If you have a townhome that lacks a yard, you need to take photos of the pool, the spa, and the clubhouse. If you have a yard, the buyers would want to see it. You should remove evidence of pets. A good photo happens when you stage the exterior. The position of the camera should immaculately show a real landscape of the surface. It is important, as it will leave the buyers guessing about their spending time in the backyards enjoying the sun or getting entertained. To make the act effective, you can do the following;
- Shoot long and emphasize much on space
- Trim the bushes
- Mow the lawn
Post a Video About Your Home on YouTube
It’s special if you walk through your home and neighborhood telling them of the best bits of your home and hood. You can tell them what your family adores about the house. You can also talk about your favorite grocery in the area. It will entice the buyers to feel that the place has a good living. No one can resist the feeling of knowing the place has a good shopping area. Additionally, the place is loved.
Let Your Neighbors Do the Choosing
If your neighborhood has an online message board, you can send your home listing’s link to your friends’ forum. Moreover, you can invite them to your open house party. This act will enable your neighbors to sell the house to the right buyers. They will link with people they like and know always wanted to move in the hood.
Facebook or Tweet Your Home’s Listing
The social media such as Facebook and Twitter has become a vital tool for connection. If you have 2,000 friends, and your friends have about 1500 friends each, you can imagine how the network will work. When you mention about selling your house, you’ll probably get a good number of responses.
Recognize that Every Market is Unique
Your neighborhood may go against the trend. However, you should never rely on one person’s advice as it may be from his point of view, not the reality. That’s why you will need to talk to some professionals. You can interview real estate agents to get their point of view. It helps in marketing your house.
Step 4: Negotiating Your Sale
Negotiation needs a good strategy. You need to know it’s a process. You need to know it’s a two-way street and not just about you because you’re the one selling. It needs both parties to gain something substantial. Putting you in the buyer’s shoes can enable the process to succeed. A real research about auctions and sales will give a good comparison. There is a need to be current in your knowledge when you start to negotiate.
Don’t Get Offended by a Low Offer
It is not a good thing for you to walk off in a huff just because someone came with a small bid. You need to know that buyers need to buy the house at the lowest possible price. When they bring about a low price, they are testing the waters. It does not mean they will end up buying less than your initial price. You don’t have to blow them off. The buyer may love your house and eventually change his bid to favor you. Remember that it is never a personal issue. House buying and selling is a business issue.
Don’t Share Your Life Story
You’re not on Tyra Banks Show or the Real Housewives. You need to know that by telling the buyer your story, it doesn’t earn you points to get the house bought. The buyer is not there to listen to the way you struggled to buy your home. Telling him or her much may even cost you a fortune. There comes the question on why you are selling. Don’t start talking about the weather being bad for you in the recent times. Moreover, don’t speak of your finances. The best answer here is; ‘It’s time. You can even extend and say you have been thinking about it and now the time has reached. Just don’t show the buyer a hint of why you want to move quickly.
Don’t Mention Your Deadline
It will make the customers panic. Some may learn from it that you have an urgency to leave the house. If you don’t mention your deadline, the buyer will have the heart to buy the house without pressure. Independence is the best way to negotiate.
Creating a Bidding War
When you feel that the buyer has settled to a much lower price you counter the price. A bidding war doesn’t involve violence. Instead, it can be legally binding whereby you can’t accept bad terms, but you can choose better ones if they get along.
Agree to Pay the Closing Price of the Buyer
It has become an official act for the customers to ask for the closing price to be paid by the seller. In most cases, the cost may amount to about 3% of the purchase price. Most buyers feel trapped to pay a down payment, decorating the house and appliances. Therefore, the closing costs do not appeal to their feeling. Some may never close the deal until you offer to help with the closing costs. If you are willing to give them the money, make sure you increase the purchase price so as to accommodate the cash.
Be Confident But not Cocky
When starting you should check your ego. You can quickly be caught up in the home’s potential wealth. This way, you may start thinking more on better terms and money. It may convince you to believe you are a better negotiator than you sure are. You need to focus on confidence rather than ignorance. The buyer needs to see that you are knowledgeable in what you are doing.
Know Your Limits
Even though the process may be emotional, you need to know your upper and lower purchase limits. Don’t allow yourself to be emotional. Think in a careful way, how to put your price and how to listen to your buyer.
Step 5: Closing
The final part of selling your home may be the most important part of the process. It is the stage at which the transaction becomes legally bonded. Closing is the time when the seller and the buyer both sign the papers, and the customer takes the key. It sets the framework for the complete paperwork. During that magical stage, the following things may happen;-
Open an Escrow
A neutral third party holds an escrow account. You need a third party to keep all the documents and money. Then you will need to let him submit when you have settled everything. Be careful, so read the purchase agreement because you may lose money if you don’t understand it. Escrow will ensure that it prepares the settlement statement once all the documents have no mistakes.
Maintain the House in Good Condition
The buyer’s inspector may find a small error that may affect your closing terms. He or she may want the prices revisited just for a small patch of termites in the house. Moreover, it can be a reason for backing out of the deal.
Ensure the Buyer gets Title Insurance and a Title Search
It ensures no one claims the property is theirs after the customer has bought the house. This process starts with a title officer who provides the property doesn’t have any clouds. If there are any problems, you may resolve with the buyer until everything is clear. Make sure you don’t cancel your insurance.
Get an Attorney
It may be optional if you understand the procedures of your act. If you do n’t get it, it’s vital to find an attorney who may give a high legal opinion on the closing documents you have. Sometimes, even if you are well-versed, you may not understand everything in the documents. An attorney knows how and where to look for potential problems in the documents.
Negotiate on the Closing Fees
There are usually a lot of fees charged during the closing of the buying process. Sometimes, there exist junk fees that are not necessary for the process. They are meant to milk the subjects dry. If you stand your ground, you can have fees such as administrative, application review and processing fees eliminated from the transaction. Remember, when you’re firm, you don’t need to be arrogant.
Sign the Documents
Without signing the papers, the deal will not be sealed. Selling records may be about a hundred pages in volume, but it is necessary to read and understand them thoroughly. Make sure the interest rate is accurate before you sign the papers. Moreover, ensure the closing costs are near the good faith estimate that is needed.
Selling your home should only come after you have exercised due diligence. In spite of this, the process should never be stressful. Luckily, if you follow all the steps with keenness, you can do your selling efficiently and smoothly. The goodness is once you learn the tips correctly; you will never mess up in the future. That’s not all you stand a good chance of getting better deals when selling a home or buying as you are better informed.