How to Get the Most Out of Selling Your Home
Selling your home is a significant decision that requires preparation, setting an appropriate asking price, and managing negotiations effectively.
Before your sale can close, mortgage lenders representing buyers will need to conduct an evaluation of your property – an arduous and time-consuming task that often goes unsaid.
Pricing
Pricing your home accurately is key to selling it successfully. Overpricing can make the home languish on the market for too long, potentially driving buyers away in favor of other more reasonable homes that may cost less overall. On the other hand, underpricing may leave money on the table and may cause buyers to assume something must be wrong with it.
An experienced real estate agent will assist in setting a reasonable asking price for your home using market data, comparable sales in your area and its features and amenities to establish what is known as “comp” or comparable market analysis (CMA).
CMAs provide real estate agents with an educated estimate of what a potential buyer might pay for your home based on all available information, from bedroom and bathroom counts to lot size considerations and upgrades you have completed since listing it for sale.
As well, local market trends should also be considered. Home sales typically increase during spring when people rush to purchase before school starts again.
If your market is particularly hot, selling your home could take just days or weeks with the right listing and price. If it has been weeks or even months since any serious interest was expressed in purchasing it, review your asking price and make any necessary changes if necessary – quick online home value estimators provide quick insight into its worth in just minutes.
Getting the Home Ready
In order to sell your home successfully, it must look its absolute best. This may require professional cleaning, decluttering and staging as well as making cosmetic changes such as fresh paint or eliminating odors – this investment may cost money but can often more than justify itself in return.
Many homeowners may be tempted to avoid commission fees by selling their home themselves – known as for sale by owner (FSBO). But doing it on your own can be time-consuming, complicated, and difficult; leaving you responsible for marketing, showings, negotiation, showings, negotiations etc. To effectively market and negotiate offers on your behalf you will require professional help – an experienced agent will have access to more clients, can guide through pricing processes more smoothly, negotiate offers quickly if they come through, etc.
Home ownership can be emotionally charged. But to ensure a successful sales process, it’s essential to think like a businessperson and set aside emotions during the selling process. Your goal should be to attract as many buyers as possible and this may involve lowering the asking price, even though that could be discouraging.
As winter is not an optimal time for many buyers, it’s wise to put your home up for sale then. A pre-sale home inspection will allow you to identify any issues that could stall or derail its sale, while it is also beneficial in understanding closing costs that both buyer and seller incur, including transfer taxes, recording fees and potential outstanding liens on the property.
Marketing
Marketing involves showing your home to prospective buyers. It can be an emotionally charged experience as strangers enter your private space and judge its decor – as well as potentially purchasing it! However, it’s essential that you remain calm during this process and focus on its business aspects; hiring a real estate agent might help immensely; they will charge commission but will expose your property to many more eyes than otherwise possible.
When listing your property for sale, remember to highlight its unique features – this can include bedrooms and bathrooms, air conditioning or any other features which might entice buyers. Furthermore, advertising your home locally classified ads, online and through social media is advised as is planning your sale during winter months when less people search for homes – this can lengthen the sales process considerably more and may lead to slow results.
Negotiating
As soon as an offer comes in, the real work begins. Negotiations is where things can get tricky. Your aim should be to sell your home for as much as possible while still getting a fair price; your agent can assist in setting an asking price based on current market conditions and comparable properties in your neighborhood; plus develop an effective negotiation strategy for buyers.
An effective negotiation position is key, and you may have to make concessions during the process. For instance, buyers may request repairs and upgrades that you aren’t comfortable with; to respond effectively you could either directly deny these requests, or diplomatically negotiate by setting time or cost limits that limit contingencies for repairs and upgrades that don’t fit within your timelines or costs – say $500 instead of $1,000 per repair/upgrade request respectively.
Your listing agent can also help you identify and exploit any unique selling points about your home, enabling you to take full advantage of them during negotiations. For instance, perhaps your home features more recent HVAC system than others in its neighborhood or is one of the larger lots – by emphasizing these aspects during negotiations you could create an atmosphere of competition among potential buyers and potentially spark bidding wars that increase its total sale price.
However, it’s essential to know when it’s time to leave a negotiation table. Protracted negotiations can make buyers frustrated and cause them to withdraw without ever concluding the purchase. When considering offers, keep in mind that it may be better to focus on issues other than price such as closing costs, timelines and removal of home inspection contingencies rather than price alone.
Closing
Closing or Escrow is the process where all final paperwork is signed and funds disbursed from escrow agents or attorneys. It is crucial that all documents, including your sales contract, be read thoroughly to understand them fully before signing anything at closing or signing any document that requires signature. Your real estate agent can offer guidance if unfamiliar with the process.
Before closing date, buyers will usually complete both a home inspection and appraisal to ascertain whether or not they can afford the property they intend to buy. An appraisal contingency clause in their purchase agreement allows them to back out of sale should it not appraise at offer price.
If the buyers are financing their home purchase, the lender must also perform a title search and approve the loan application; this could delay closing. In addition, there could be financing, home inspection or appraisal issues which could postpone closing date.
Some home sellers opt to go the for-sale-by-owner (FSBO) route in order to save money in commission fees; this option requires more work on their part to market the property and negotiate with prospective buyers.
Before listing your New York home for sale, obtain a pre-sale home inspection to identify any issues that might impede its sale process. Also consider listing it as cash only so as to reduce timeframes of having to wait for financing arrangements from potential buyers. Finally, consulting an experienced real estate attorney is invaluable when selling real estate properties.