Are you a homeowner? Have you been thinking about whether or not to sell your house? If so, you’re probably weighing your options and wondering, “How does the process of selling a house work?”
Selling a house can be challenging for individuals who are new to it. However, the process can be streamlined and stress-free with guidance and preparation. As a result, you might even find that you can get more money for your home than you initially thought.
There are so many factors that go into the process of selling a house. Many people think that all they need to do is pack up their belongings and head to the real estate agent. Unfortunately, this isn’t always the case.
Many roles and tasks are involved in selling a home, from legal and financial preparation to marketing and negotiating. In this blog, we’ll discuss how selling a house works. We’ll go over the costs to sell a house, what you need to do to sell your home and how you can get it done stress-free.
Getting Your House Ready To Sell
The first aspect of the home selling process is preparing your home to be sold. This aspect is crucial because it’s the first impression that you’ll make on potential home buyers. As such, you must get everything together to ensure that your home is in top condition before putting it on the market or paying your real estate commission
Here are critical steps to take when getting your house ready to sell:
1. Ensure That You Understand Your Home’s Value
Before selling your home, you’ll need to know what you should ask for it as the purchase price. If you have a realtor, they should be able to evaluate your house’s value and provide an estimate of how much you can sell it for. If you don’t have a realtor, you can research the market value of other houses in your area that are being sold and use that as a basis for selling your home.
2. Look for an Appropriate Listing Agent
Once you’ve researched how much your house is worth, it’s time to head to the realty office.
This is where you’ll need to find a listing agent. The listing agent will be responsible for showing the house to prospective buyers, negotiating your home’s price, finding a listing price, coming up with the listing agreement, and ensuring the house is in perfect condition. Later you will need to incorporate the agent commissions for their excellent work.
However, if your home is for sale by owner (FSBO), you do not need this step. This is because an FSBO does not incorporate any listing agent.
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3. Declutter Your House First
You must declutter your house before showing it to prospective buyers. You should make this a priority because it’ll make the home appear clean and organized to potential or first-time buyers, which will help them decide to purchase. A clean home will increase your house’s curb appeal, attracting a more comprehensive range of home buyers.
4. Schedule Minor Repairs
You’ll need to do small repairs to your house before putting it on the market. Many people overlook these repairs because they think that minor repairs are unnecessary. However, fixing little areas of damage and cleaning up clutter will make your house look new.
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5. Do Something about Your Home’s Exterior
When you’re getting your house ready to sell, you should consider more than just its interior. You’ll also want to ensure that your home’s exterior is good. Put in minor repairs to the exterior to make your house look appealing.
Before you know it, you’ll have a home that’s ready to sell!
Preparing Documentation for Selling a House
There are so many documents that you’ll need to prepare for selling your house. These documents will vary from state to state, and you should ensure that you consult with your realtor for more information about them. This section will include an overview of documents you should prepare according to the National Association of Realtors.
Before Listing Your Home
Before consulting multiple listing services to list your home, you’ll need to prepare the following documents:
- An original copy of your sales contract
- Manuals and warranties.
- Records of repairs and maintenance.
- Insurance records of your home.
- Records of utility bills.
- Actual statements of your mortgage.
Launching Your Home for Sale
After you’ve listed your home with your realtor, you’ll need to prepare the following documents:
- Your proposal for a marketing plan.
- Records of the property listing.
- Comparative market analysis.
- Your net sheet as a seller.
While on the Market
When your home is on the market, you’ll need to prepare:
- A report of the home’s pre-inspection.
- A report on natural hazards
- Mandatory disclosures
Between The Contract and Closing the Contract
- A home appraisal report
- A home inspection report.
- A purchase agreement
Repairs and Renovations
Ensuring that your home is tip-top and has necessary repairs and upgrades will ensure you get the most money for it. This is because prospective buyers want to know that their home is in perfect condition. Consider hiring a professional to inspect your home and fix any problems before putting it on the market.
Here are some of the essential aspects you will need to repair and renovate:
1. Kitchen and Bathrooms
Renovate your kitchen and bathrooms to ensure a more appealing appearance. This can significantly increase your home’s value. As such, you will need to thoroughly inspect and repair these areas before putting the house on the market.
2. Walls and ceilings
Over time, your walls and ceilings may need to be painted. Before selling your home, it’s advisable to paint them so that they’re in perfect condition.
The heating, ventilation, and air conditioning system of your home is also crucial. HVAC is essential to a home’s comfort and appearance, so you should ensure it’s in perfect condition before putting the house on the market.
Like landscaping, your roof is also vital to your home’s appearance. Before you sell your home, you should do minor repairs, such as replacing the roofing material.
5. Electrical panel and circuit breakers
The electrical panel and circuit breakers of your home are also essential aspects of your home’s appearance. Always ensure that these two are in excellent condition before putting the house on the market.
Marketing Your House
There are many marketing strategies that you can use to sell your house. If you’re clueless about how to market your home, consult your realtor, who’ll advise you regarding the best marketing strategies before the new owner does a home walkthrough.
1. Give out Reusable Flyers
A good marketing strategy is to give out flyers that are reusable. You can use them to advertise your home in public places such as public parks or significant buildings. In addition, you can give them to your neighbors so they can tell their friends about the house.
2. Advertise On Newspapers
Another marketing strategy is to advertise your house in newspapers. You can advertise on the front page of local newspapers near your home. For example, you can ask for $1 per word for indoor advertising and $2 per word for outdoor advertising.
3. Publish a Postcard
You can also print postcards with high-quality professional photos of your house and its address. You can post them at a local market or public places such as libraries, community centers, convenience stores, and other businesses. You can also send them to your friends and relatives for free.
This is a helpful marketing strategy for homes in remote areas or neighborhoods with low traffic.
4. Put up Posters
You can get free postcards that you can use to advertise your home. You can put them in local parks, storefronts, and community centers.
5. Make A Video Tour
Another marketing strategy is to make a video tour of your home and post it on social media. You can use a video camera to record the interior and exterior of your home. You can also create an exciting video with music and special effects.
Staging Your House
One of the best ways to sell your house quickly is by staging it. Home staging is a method used by many realtors in open houses to make a house look appealing to prospective buyers. The following are some tips a stager will use before putting the home on the seller’s market:
1. Add Accessories
You should use new accessories to decorate your home. Adding accessories to your home will make it look more appealing. These accessories include new beds, tables, and chairs. New rugs and carpets are also essential in making the interior of your home look attractive.
2. Add Lighting
You can also add lighting to your home. It will make your home look appealing and beautiful. You can also place candles around rooms to give the house a warm, cozy appearance.
3. Paint the Walls
The walls of your house will also make it look appealing. When staging the home, you should repaint the interior walls, so they’re in good condition. The new paint will make the house look clean and fresh.
4. Acquire Knock-Out Cabinets
Knock-Out cabinets or units are also essential in making the interior of your home look appealing. You can get them at hardware stores and department stores. These stores can also get you new appliances, lamps, and other decorative accessories.
5. Create a Wall of Fame
A wall of fame is also an effective way to make the interior of your home look more appealing. It’s a wall with photos of your friends and relatives who have done great in life. You should place these photos to make your home look more appealing.
The Negotiation Phase
One of the most critical phases in selling your home is the negotiation phase. The best way to sell a house quickly is to get the property appraised at its higher value and then negotiate with the realtor.
The appraisal is a crucial step in determining what your house is worth. The appraiser will assess your house’s worth based on its condition and location. This is vital in determining the price that you can ask for the home. Homeowners should always aim to get a higher value for more money when selling a home.
When selling a house, you must understand each offer contains five essential components:
1. The purchase offer: This is the amount that the buyer will pay for the house.
2. The closing assistance: This is what the seller will give the buyer when the house is purchased.
3. The closing date: This is the date when you will sell the house.
4. Contingencies: This includes the conditions in the offer. It can consist of a lender’s appraisal, inspection, or appraisal contingency.
5. Buyer financing: This is the financing, for instance, the loan amount the buyer will use to pay for the house.
These components make up one offer. When an offer is accepted, it’s called “accepting” the proposal. However, if you decline, you always have the option of making a counteroffer. When making a counteroffer, the seller should use similar components in the offer to get everything that they want.
Closing Your House Sale
When the offer has been accepted, the buyers and home sellers should reach a closing agreement and selling price within a given time frame. In real estate, the closing process is the meeting where the buyers and home sellers exchange money to finalize the sale.
The buyer or buyer’s agent will give the seller a check that covers all expenses in buying the house. The escrow will then deposit this amount in a bank account. The buyer can also use other forms of payment, such as a loan or credit card.
The buyer will also pay the seller a down payment. This amount is usually between 3% to 5% of the sales price.
The escrow, responsible for the real estate transaction, will prepare a closing statement for both parties. It will contain details about how the transaction occurred.
The closing document and closing costs should also include the liens agreement, insurance, tax, capital gains, and other upfront costs that the buyer or seller will pay during the home sale.
It would help if you looked at your target market and market conditions when selling a house fast. It would help if you choose an agent or realtor to help you market your home best. It is also essential to choose the right price for your home.
Your marketing methods will also determine how much your house is sold for. You should use marketing methods to make your home appealing to prospective buyers.
There is always a way to sell your house quickly.