Sell Your Home
When you start to think about selling your home, you might have two thoughts. You might want to try and sell it on your own, or you might want to sell your home using a real estate agent. Many home owners will buy and sell many homes in their lives. This is most likely the largest sale or purchase in a persons life. Selling a home in Fresno, Ca can be a stressful process. Not to mention potentially very complicated. There are even some expenses that homeowners are responsible for. If this is your first time selling your home, you might be wondering how to go about doing it. Hopefully these steps will help you navigate the home buying process and enable you to make the decision that is best for you.
Get a Home Valuation From a Real Estate Agent
When selling your home, your mortgage will need to be paid off entirely by the proceeds of the sale of the home. If not, you will need to pay the additional balance out of pocket. In a perfect world, the sale price will cover the pay off balance of your home in addition to closing costs. After those are covered you may even have a sizable profit. This is a very common occurrence for home owners and many rely on the profit of selling their home to make a down payment on a new home. Taking all of this in mind, it is critical to consider the sale price.
It is a very good idea to get a valuation quote from many different real estate agents. This really is the first step in the process. It is highly likely that these valuations will vary. Try to find out how each agent is coming to their conclusion, as this will help you determine a reasonable listing price. It is vitally important to remember that if you list your home higher than the market will support, it could potentially make your home much more time to sell. On top of that, you may still not even obtain the asking price. If you would like a quick home valuation click here.
Explore Selling Closing Costs
One of the largest expenses when selling your home is the real estate agents’ commission. As the seller, you are typically responsible for paying both the buyers and the sellers agents services. Keep in mind that there is no standard commission. Commission is always negotiable. It is not uncommon for the seller to pay for both the buyer and seller agents commission.
For example, if you, the seller, agree to a commission of 6% you might have your agent offer the buyers agent 3% for procuring the buyer. Both agents would receive a commission of 3%. The sellers agent would be paid for marketing the property, negotiating offers, inspections and all of the headaches that come with selling a home. You may also need to make repairs before you sell your home. The agents you have come through your home to potentially list it can give you recommendations for going about those repairs along with potential staging ideas and updating through the home.
Review Your Finances
After the steps of determining a reasonable price to list your home, as well as reviewing closing costs, you should take a look at your loan balance of your home. Ask your agent for a net sheet. This will allow you to examine your current loan balance and review what you owe and potentially receive at the closing. To determine what you will potentially make with the sale of your home, subtract the closing costs and the loan balance from the sales price.
If you need to pay additional money, you may want to consider your ability to pay it, or even wait to sell your home. In the event you do make a profit, consider if it is enough to use as a down payment on a potential new home. If you owe more money on your home than you can sell it for, it is called a short sale. You may be able to negotiate with the bank to take a shorter amount than the full mortgage. In these cases, you will need to prove a financial hardship to the bank and a reason for selling.
You may need to look into new living situations to ensure that you have plans that are compatible with your selling plans. Take into consideration that your list price could potentially be different than the actual sales price. A buyer could make a lower offer, you could pay their closing costs or the home could not appraise at that value. Be sure to leave some room in the budget to anticipate these potential changes.
Should You Make Repairs
Before placing your home on the market to sell, it is possible you may need to make some repairs. Some buyers enjoy purchasing what is known as a “fixer upper”. However many buyers do not. In addition, if you sell your home with a plethora of need to do projects, you will most likely receive lower offers that buyers are taking the cost of those repairs into consideration. If you want to bring more buyers to get a higher offer, you might want to make some repairs around the home before you list it. Consider the homes condition and determine which projects you want to tackle. Talking to your agent can be a great source of feedback for what potential repairs are important. This time and effort could make all the difference when you go to sell your home.
Staging the Home
This is not a requirement, but staging a home is an important step that shows results in a faster and contributes to an easier sale process. You could potentially receive an offer more quickly and closer to your asking price. The one critical element to staging is to remove all traces of personalization to the home. Buyers should not see pictures of you and the family. In addition, potentially other items such as religious symbols or sports trophies. They need to be able to envision themselves in the home, and that is difficult if they see traces of you everywhere. It could be a very uncomfortable feeling for the buyer going through somebodys home when they are thinking of buying it.
Listing Your Home For Sale On The MLS
After you have done all the repairs and depersonalized your home, you are ready to list it for sale. In this step, just work with your agent. The both of you should be able to determine a date that works for you, and offers maximum exposure. A “for sale” sign will be placed in your yard and the home will be listed in the MLS. Additionally it will be featured on a multitude of other sites, real estate browsers and apps.
At this point in time, be prepared to make the home available for showing and people wanting to see it. The home should be kept clean and tidy, with extra sparkle. This will allow the home to show well at a moments notice. It will also be the most attractive and appealing to any potential buyer. This task can become very daunting as you may have multiple showings a day and you will need to be gone for many hours. Just keep in mind that it is all worth it, and will hopefully garner the most money for your home.
Carefully Review Offers
From here, you may receive an offer or multiple offers in a few days or a few weeks. This depends on the real estate market and the condition of your home. For each offer that you receive, there will be different terms outlined. Pay attention to the loan amounts and whether or not buyers ask that you pay for their closing costs. There could also be special closing dates or other requests. Some buyers may ask that you do repairs before the close of escrow. If you are not comfortable with an offer, you can either reject it or draw up a counter offer.
Closing the Sale
After you accept an offer, there will be various inspections that you will need to make your home available for. These can include a property inspection, a pest inspection and an appraisal. Some of the inspections can take a few minutes to a few hours to complete. Most home sales take anywhere from 30 to 45 days depending on the loan type and buyer. By the time that the closing date arrives you should be completely out of your home, unless you negotiated that prior to the closing. You will turn in your keys, and the buyer will take immediate ownership of the home. After that, congratulations! You have successfully sold your first home. This can be a lengthy and daunting process. For help on getting started, feel free to contact the John JP Stone Real Estate Team today!