THE SIMPLE SELLING STEPS:
A STEP-BY-STEP TIMELINE
Turning that For Sale Sign to Sold: What to Expect when navigating The World of Real Estate
One of your life’s most significant financial transactions will be selling your home if you’re like most people. Selling a house is typically a complex process, involving many steps and a long list of tasks – from getting the house ready to sell, and setting a competitive price, to negotiating with buyers and processing the sale.
You can be prepared for success by following these simple guides, getting all the legal forms you’ll need, and getting suggestions about local professionals you might want to contact. Moreover, the Start to “Sold!” The checklist keeps you informed and on track. The most common steps to selling a home are listed below so that you can prepare yourself.
1. Do some homework
A month before listing
Consider your financial situation and how much leverage you have before you engage in a for-sale-by-owner transaction. If you are selling your home urgently, how urgent is the situation? Are you moving because of a career change or a job change? Do you feel financial pressures, medical concerns, or school-year pressures are affecting your move? When it comes to setting an asking price and accepting an offer, urgency is often a determining factor. A house can be priced according to its value if there is no pressure to sell.
Learn about your local market
Now isn’t the time to crunch the numbers and dive into market data. The only thing you need to do at this point is to be aware of the price of homes like yours on the market. Getting an estimate of your home’s value will give you a general idea of what your asking price should be. You should check home listings regularly. Especially if you’re expecting a specific dollar amount, it’s helpful to know upfront if you can obtain it.
Calculate the remaining equity and transaction costs
In most cases, the buyer will cover many of the purchase closing costs as part of the negotiation process. The specific dollar amounts are still good to know in advance. Find out what tax fees will need to be paid, such as property taxes, transfer tax, title insurance fees, and escrow fees. Estimate your expenses by using our Pricing Guide if you are selling by owner.
Gather important documents
Organize your paperwork now so you won’t have to scramble for it when things get hectic. Title, mortgage, and insurance documents are the most important.
2. Consider your home from the perspective of a buyer
A month before listing
Postponed projects are unattractive to buyers. Having a critical eye when touring your home is essential to getting the best – and most – offers. An outsider’s opinion of your house may be useful to you, so look for an outspoken friend. As you evaluate your home, here are some tips to help you fix its various flaws.
Fix cosmetic issues
It is possible to fix or neutralize these problems quickly at very little cost. It is a good idea to paint grimy walls. Replacement of torn carpeting is necessary. In addition to repairing damaged window screens, you should also fix crooked light fixtures.
Upgrades are worth considering
The gold-tone refrigerator you have had for more than four decades may still have ten years of useful life left… maybe. The question is, why would someone pay top dollar for a kitchen that has an old refrigerator? Make sure your house’s appliances, plumbing, electrical, heating, air conditioning, roof, and structural elements are in good working order. Repairing or replacing your home’s iffy systems removes a potential reason for rejection.
Structures must be addressed regardless of what else is going on. Renovations, however, will almost never earn you back more than you spent on them. In order to avoid your home sitting on the market for months, you should identify any issues that might drive buyers away.
It is important to recognize what you cannot change
A house’s location cannot be changed. You can apply the same logic to your neighbors, your school district, noise patterns, and traffic patterns, among others. Honesty is the best policy when it comes to these unchangeable traits. Is there anything about your home that will turn off most buyers? Your house will need to be priced and marketed accordingly if this is the case.
State law requires buyers to disclose unfixable defects (such as basement seepage). Some major house systems can be repaired or replaced with a home warranty, which gives buyers peace of mind.
3. Calculate the price
A month before listing
Find out what your asking price should be by researching your local housing market. Adding the costs of home improvements to the most recent purchase price and calculating the average appreciation rate can create a simple baseline for the price in a rising market. You may need to adjust your estimates further when the market is uneven because foreclosures, short sales, and bank-owned properties can reduce the value of nearby homes by 30% or more.
Check the sale price of recently sold properties
It’s likely that you’ve been monitoring home prices and listings online for some time now. You should now go a step further in your research. Search public property records for your neighborhood’s home prices to see what they are all worth.
Consult an appraiser
On-site appraisals by appraisers familiar with your neighborhood will provide you with the most accurate and reliable valuation of your home. Your house will be appraised according to what other houses have sold recently, adding value for unique features (like a fireplace) and taking away for those you don’t have. In addition to helping you prioritize repair, replacement, and upgrade expenditures, an appraisal can cost around $500. Furthermore, it will provide some leverage during negotiations by validating your asking price.
Calculate your price by crunching the numbers
The more data you gather, the better price you can set. When you look at all of the estimates, sale prices, homes sold, and market trends, you can get a better picture of the situation. The numbers can also be overwhelming and make you feel indecisive. You can learn how to determine your asking price in our blog on how to evaluate data and estimate your asking price.
We can help you with anything you need if you’re still having trouble.
4. Get Your Home Sell-Ready
A month before listing
To sell a house, you need to prepare your home for buyers. Ideally, you want your home to be as appealing as possible for the least amount of money. The best way to showcase your home’s best features is to do some house cleaning and staging unless you have an overgrown jungle or no interior updates since the 1970s.
Organize and clean your home
It will be easier for sellers to see the actual house if the clutter of everyday life is removed. If you are looking for a house and need to store out-of-season clothes, decorations, memorabilia, sporting equipment, furniture, etc., you might want to consider renting a storage unit. You should now have a spacious house that is ready for you to freshen up once you clear out the clutter. If you haven’t painted any rooms in quite some time, consider having the carpet and windows professionally cleaned.
Staging techniques can be used
Staged homes help buyers visualize how they would live in your house. It is likely that you will be able to stage the room with the furniture and accessories you already have, although you may want to add a rug, some throw pillows, or artwork to enhance the best features of the room. Don’t let your accessories look choppy or disorganized by grouping them by color, shape, or texture.
Consider rearranging couches and chairs into little clusters away from the walls to give the room a larger appearance. Make traffic lanes obvious in each room by rearranging furniture away from the walls. When viewed from the front, this arrangement appears more spacious and user-friendly. Lighting in a room is also an important aspect of its appeal. In order to create a welcoming and warm atmosphere, HGTV recommends 100 watts per 50 square feet.
Make your yard look good
You might not need to invest that much in a professional landscaping company to transform the exterior of your home. Fresh mulch can be applied to garden beds, some pruning should be done, and some annuals can be added to give them a splash of color. Adding that much curb appeal without spending a fortune usually does the trick.
5. Get your home listed and marketed
A week before listing
It’s time to start showing off your home once you’ve priced it and decorated it. Be sure to prepare all the materials you’ll need to list your property and market it. If you are able to afford it, include professional photos, pricing documentation, room measurements, yard signs, flyers, and marketing materials for buyers to take home.
Publish your home listing online.
Unlike other “by owner” sites, we will reach seven times more people if you are selling on your own. You’ll need a real estate agent’s help if you want to list your house on multiple listing services (MLS’s).
Don't forget print advertising!
Newspapers should not be dismissed. The audience for these publications may be down across the country, but many home buyers will search for them everywhere. A decent-sized ad can usually be run for very little money – and you can target it exclusively to your local area’s buyers. Direct mail is another way to reach buyers. If you contact a few brokers about buying a mailing list, you can reach out to them about buying one. In order to attract serious buyers, this is an effective, simple, and affordable method.
Organize some open houses
As long as your home is in an accessible location, it’s a good idea to hold an open house so buyers can get up close and personal. Get the word out through your social networks like Facebook, Twitter, and community groups. Advertise it on Craigslist. Post flyers at supermarkets. If you are selling your home on your own, it is okay to be present when buyers tour the property, but keep your distance. Most buyers don’t like to feel watched or pressured. Also, be sure to create property description flyers and leave them where buyers can grab one on their way in.
6. Making an offer and accepting it
MAKING AN OFFER AND ACCEPTING IT
Counteroffers are used in real estate negotiations. In most cases, you can either accept or decline a buyer’s offer after it has been submitted. It is important to know what you need in order to get what you want. Decide what’s a must-have, what’s a nice-to-have, and what’s not so important. Knowing when to compromise and when to stand firm will make it easier to agree on a course of action. Besides that, you may have to make concessions on matters that aren’t crucial to you. It is important to find a buyer in the middle so that both of you come away satisfied.
During your review of an offer, here are some things to keep in mind:
You should consider more than just the price
The dollar amount being offered will probably catch your attention first. The number is usually the most important one for both buyers and sellers. In spite of this, it isn’t the most important. A seller’s net gain is their most important number. Even if the price of the property is lower, a buyer can earn more profit through closing costs, taxes, or other expenses. Be sure to carefully consider what the buyer is offering to pay before making any decisions.
Don't limit yourself to numbers
It is important to consider more than just price when making a decision. It is important to be able to set the closing date if you are moving out right away or if you need time to find your new home. The occupancy section of a contract can help you determine this. Contingencies will also need to be considered. There may be conditions attached to a buyer’s offer, including selling their current house, obtaining financing, moving in within a particular timeframe, and getting an inspection. An offer with more contingencies is less reliable.
Try to reach an agreement that benefits both parties
To keep things fair, offer concessions when you make counteroffers to get more of what you want. Are you willing to sell your pool table in the basement to a buyer? Include it on the list. The dynamic of give-and-take motivates both parties to cooperate and come to a mutually beneficial arrangement.
7. Ensure that all paperwork is completed and closed
Closing 6-8 weeks before
When you accept an offer and sign a purchase agreement, you are usually relieved. For Sale By Owner processes can be quite demanding, especially during the stages of preparation, marketing, and negotiation. The moment you finish all those tasks, you’re faced with a new set of tasks. In addition to a purchase agreement, here is a typical checklist of to-dos:
- Cooperate with the home inspector hired by the buyer
- As determined by the mortgage lender, cooperate with the buyer’s appraiser
- The seller should provide legal documents to the buyer, the buyer’s agent, the buyer’s lawyer, and other professionals
- To begin the process of paying off your mortgage, contact your lender
- Organize your move on your own
Following the resolution of these matters, the next step is to prepare for closing day. A great deal of documentation will have to be gathered by you on your own if you are selling your own home. During your closing, you will be expected to complete the following forms:
In accordance with your state and municipality’s requirements, provide the following disclosures
- Records pertaining to the property, building permits, and receipts to be submitted to the appraiser
- Records of the property for the title insurer
- Documents pertaining to insurance
- Documents relating to mortgages, loans, and liens
- Documents related to the planning of financial and estate affairs
It usually takes a considerable amount of time, attention, and energy to sell a house. You will save thousands of dollars in commissions when you sell by owner, and you will be even better prepared the next time you sell.