The Real Estate Home Selling Process Explained
Buckle up, because I am also letting you know
WHAT OTHER REALTORS DON’T TELL YOU
There are some things that you need to know before going through the home selling process, and one of them is how much work it can be. You may be surprised by the buying process’s complexity, but don’t count on it being any easier when you’re selling your home. Unfortunately, the home selling process is just as complicated and daunting. Things can get overwhelming quickly if they aren’t done correctly from start to finish!
The home-selling process is similar to buying one in many ways. It has its own set of steps and moving pieces, but if you remember how it felt when acquiring your first property then maybe this will help prepare for what’s ahead with selling!
You may be thinking that selling your home is an emotional decision, but don’t let it get in the way of making sure you are ready. Be clear on what’s important and make a list with non-negotiable items before committing to anything else – this will help avoid any future regret once all those other things start coming up!
When deciding the right time to sell your home, you must be aware of the real estate market in your area. Research hyper-local pricing trends and how quickly homes are entering and leaving the market in your neighborhood. This will help to ensure you get the most money possible and future negotiations are backed by market research.
Researching the best time to sell your home can be tricky. There are many factors that impact when people list their properties, including seasonality and trends in each market you’re interested in selling into – but there’s no one-size fits all answer! To get an idea of what may work well for YOU as a seller with different needs (eagerly waiting on THAT someday sale vs looking at off-market listings), take advantage of some free online research at sites like Zillow or Trulia; utilize their maps and economic reports for recent local sales data, comparable homes, and the demand for homes in your area for starters.
Find the right agent
You’ve bought a home so you understand how stressful that can be, it’s no different when selling it. Like buyers, sellers want to make sure that their best interests are being served by an agent who will work hard on getting them what suits THEM most! The first step of this journey starts with asking friends, family members or coworkers if anyone can recommend somebody before browsing through websites and interviewing potential candidates in person. On the flip side, just because an agent was able to perform well on your sister’s sale doesn’t mean the same agent is right for your unique situation. Interview more than one agent!
What other realtors won’t tell you: “I’m using your house to sell myself.”
Stories about the houses you sell are great, but agents should focus on selling your home instead. Homes with photos in magazines or direct-mail pieces won’t get buyers excited for what’s inside; they’re just another way of marketing themselves!
Sellers should ask an agent how long their recent listings stayed on the market before selling, and compare that to neighborhood’s history of sales. You should also look at other statistics such as average listing prices or sale speeds before making your decision.
Pick a competitive listing price
Pricing your home correctly can be the single most important factor when selling your house. While it’s tempting to price low to try and bring multiple offers, that strategy can backfire quickly for many reasons. Overprice taking advantage of the low inventory and high buyer demand and you risk it not selling and becoming stale. This is a daunting process even for skilled professionals.
What other realtors won’t tell you: You are overestimating
As stated earlier, this is your home. Every scratch on the wall, drawing in a closet, and birthday growth chart in a door frame is a memory. This sentimental attachment can inflate your perceived value. An agent worth their salt will tell you this and then walk you through a market analysis so you can price your house, not your home, appropriately.
Devise a marketing plan
The best listing agents know how to market their listings in order attract potential buyers. One of the most important strategies for this, as with all things related to real estate sales and marketing campaigns–is investing time into preparing professional photos that will make any home stand out. Sellers should also get involved in their own promotion process by opting for virtual tours or tapping into networks that can find interested buyers. According to MLS statistics, homes with professional photos sold 68 percent faster than those without.
What other realtors won’t tell you: Self-Promotion is Everything
You may find yourself bored with the same old bus station or Facebook ads that keep listing off apartments, but they’re an essential part of landing clients.
Marketing a property for sale requires heavy promotion including everything from direct mail, email marketing, website marketing, search engine marketing, social media, public relations and old-fashioned, pick-up-the-phone and dial broker after broker after broker until we locate a buyer. My team and I utilize each and every one of the marketing techniques listed here including going down the list..
Give your property a makeover
Your home may be a sanctuary, but it’s not immune from the demands of buyers. Take time before selling your property to rejuvenate and refresh its appearance by providing fresh paint or other updates like decluttering excess items that don’t belong in someone else’s life.
Giving an already cluttered space less clutter makes roominess feel larger than before; limit personalized effects unless specifically asked otherwise
What other realtors won’t tell you: Your Buyer is More than Likely a Millennial
Millennials aren’t drawn to large, ornate houses; rather, they prefer smaller, modern, more casual abodes with minimalist designs. Desired amenities include: multi-functional rooms like a guest bedroom that can aso be used as a home office or workout area, outdoor spaces including outdoor kitchens, decks, and gardens, environmentally friendly elements like energy-efficient appliances and sustainable materials. And they are moving to the burbs.
Prepare for open houses and private showings
The listing agent is your partner in preparing for open houses. They will show the property professionally and keep you up-to date on potential buyers’ interest through phone calls, emails or other means of communication
What other realtors won’t tell you: A Home in Move-In Condition is Essential For a Sale
Though TV shows make it seem like you can buy any old house, get rid of all your problems with one repair job (or even just paint) – know that this isn’t reality. A house that needs serious work may put off some potential buyers, move in condition, if possible, in important because then they’ll take better care and pay more attention towards what’s needed for sale instead just picking any old fixer upper without considering whether this would suit them well personally (and financially).
Do not be afraid to negotiate
Don’t be afraid to negotiate. If you’re happy with your property and it has an asking price that is fair within the community then there will likely already be several competing offers on record. Where there is negotiation, there is hope for agreement. Knowing what you want and what you can live without makes for negotiations where both parties can leave satisfied that they are walking away as a winner. out of selling homes in these types situations work closely together so both parties can come away satisfied after making their best counter offer.
What other realtors won’t tell you: Selling Without a Realtor Won't Save You Money
Selling your home can be a stressful process, especially if you’re going it alone. There are 184 separate tasks involved in a real estate transaction. You’ll have to execute and manage each of these details on top of preparing and showing the property (to strangers), negotiate with potential buyers, and hire an attorney (in Kentucky) to set up an escrow account and close the deal. Not only will a real estate agent coordinate each of the discussed items, an agent will also procure, FSBO homes sell on average 26% LESS than those listed with an agent. And as a side note – COMMISSION IS ALWAYS NEGOTIABLE and actually against the law to set.
Wait out the escrow period
The escrow period is the time set aside for the buyer to perform their due diligence under the terms of the contract such as: property condition inspections, wood infestation inspection, and home value appraisal while the title agent is preparing the deed, title reports, and investigating the chain of title or looking for liens. Your most important task during this period is to make your home available without your presence.
What other realtors won’t tell you:
If any clouds on your house are discovered (unpaid liens against the property), you’ll need to deal with them quickly. This sometimes means coming up with immediate cash. For example, if there is a lien on your house for unpaid child support, it’s probably not going to be removed until you pay the child support or get a statement showing that it is no longer owed.
Meet with the property appraiser
Unless the buyer is paying for the property in cash, the lender will require a property appraisal to make sure that the purchase price is also inline with the market by placing an actual monetary value on the property. It is best that you make your home available and leave the appraiser to do the job he or she was hired to do. Be sure to remove all pets from the premises if possible. The appraiser will not go into areas deemed unsafe and an incomplete appraisal is never a good thing.
What other realtors won’t tell you: You may have to go back to the negotiation table or complete more repairs separate from the home inspection
If your house had multiple offers driving the price over market value and the appraised value was less than this, the lender will ONLY lend the appraised value which creates a gap between the appraised value and the sales price. Who covers that gap may have already been agreed upon in the contract. If it was not, the buyer can ask the seller to lower the price, the seller can ask the buyer to cover, the buyer and seller can split the difference or the buyer can void the contract with their earnest money in their pocket. If the buyer has a loan backed by the government (FHA, USDA, VA), a different appraisal form is used which also contains property condition items that may not have been addressed in the inspection. These are REQUIRED to be completed by the lender and if they are not, the buyer will not be approved for the loan.
The home inspection puts your house under the microscope
The home inspection might reveal issues you were not aware of or worse than you thought. Inspectors are looking for things that are significantly deficient, unsafe, near the end of service life, or not functioning properly. They address everything from the exterior to the plumbing system (including crawl spaces and attics). You are not required to fix anything, but the buyer is also able to walk away if they are not satisfied.
What other realtors won’t tell you: the Seller’s Disclosure protects you from being sued years after close
The seller’s disclosure form is to protect both buyers and sellers by disclosing all known conditions that may affect the property. It protects the seller if they complete it honestly and accurately by making the buyer aware of all KNOWN and OBSERVED defects (you do not seek out issues, its about what you currently know). Sellers sometimes question how disclosing issues with the property can help them. The most obvious answer is that it prevents accusations of fraud from arising in the future. By completing the form honestly, you have placed the buyer on notice regarding the property condition and the buyer thn has the responsibility to decide how they wish to proceed with the transaction. If they choose to go forward, it prohibits the buyer from asking the seller to make any repair that was already disclosed on the form if it is addressed in the home inspection.
Prepare for closing
Closing is the phase in the home selling process when money and documents are transferred in order to transfer ownership of the property to the buyer. The home closing process was outlined in the sale contract. You’ve been closing since that day! The buyer will do a final walkthrough within 24 hours or so from the close to make sure everything is in order, check all repairs were made, property is clean and free from damage, and all of your possessions have been removed unless negotiated otherwise. If the buyer discovers anything problematic, you’ll need to address it or the closing can be delayed.