Selling Your House: A Step-by-Step Guide
Selling a house can truly be one of life’s more crazy experiences. It’s likely the biggest transaction you’ll ever make in one sitting, and the money is all going to you. However, there are several things to consider before you put your home on the market. Once you do, there’s much to be done to ensure it sells quickly and for the price you want.
Preliminaries
First, you need to determine your needs when it comes to selling your house.
Where are you moving to? If you’ve received a promotion or job transfer, or if you’re starting an entirely new career elsewhere, you’ll want to sell your house before you have to leave. There’s nothing worse than having a home on the market in one city while living in another; this can take a substantial amount of money out of your sale profit. Time is critical in this case, so make sure you have a well-laid plan for your sales strategy.
Sell yourself or use an agent?
Many people try to sell their homes on their own to avoid the commission charged by an agent. What many don’t realize is that selling on your own could end up costing more than the commission would in the end. A realtor knows the ins and outs of the trade and has the contacts that can help reduce both time and fees associated with deed transfers and other legal costs. They’ll also have connections with people looking to buy homes for themselves or their clients.
Setting the price.
Setting the right price is probably the hardest part of selling your home. A realtor can give you a good estimate based on the sale prices of similar homes in your area and the condition of your property. Most property tax assessments are now available online, so you can check what the municipality thinks your home is worth by consulting their website.
Fix, fix, fix.
Don’t expect buyers or their agents to overlook those small repairs you’ve been putting off. Take the time to inspect your home and determine what improvements should be made. Both the interior and exterior need to be free of marks or issues that could detract from the property’s appeal—things like leaky faucets, peeling paint, holes, and damaged fences.
Preparing Your Home for Showings
Once your house is on the market, it’s all about waiting and preparation. Homeowners are usually notified when potential buyers are coming to view their properties, so you can be proactive by ensuring your home is ready.
Make sure all cleaning and maintenance tasks are completed inside and out. Lawns should be mowed, and all trees, hedges, and bushes should be neatly pruned. Even if you’ve never pruned before, this is the time to do it. It not only improves the house’s appearance but also gives the impression of good upkeep, which can positively affect a potential buyer’s perception of the entire property.
Inside, vacuum and wash every room until it shines. Appearances matter, and if you take care of the visible surfaces, buyers will assume you’ve also maintained the rest of the property. Start moving out some of your furniture before showings begin. A few pieces can help potential buyers envision the space, but large furniture should be removed to avoid crowding. Also, clear out any storage spaces to show buyers that there’s ample room for their own items.
Bargaining
Anytime you sell a house, there will likely be some back-and-forth over the price. While it’s not always the case, as seen in the 2005 housing boom, sometimes house prices are actually negotiated upwards!
Most of the time, though, expect to negotiate with potential buyers about the price. Your listed price is often a few thousand dollars above what you’re ultimately willing to accept. Be prepared to be fair in your negotiations, but don’t let buyers take advantage of you.
Remember that just because you sell your house doesn’t mean you’re free of responsibility. Legally, you’re required to disclose any hazards or issues with the property. For example, if the house has lead paint, you must inform the buyer. After you disclose this, the buyer assumes responsibility and risk. This can often be as simple as providing a signed acknowledgment form. It may seem like an inconvenience, but it’s far better than facing a lawsuit years down the road!
Once the sale is complete, make sure to keep all related documents in a safe place. Also, don’t forget to apply right away for the capital gains exemption on your income taxes; there’s a limited timeframe to claim this exemption.
