Your first time trying something new can be pretty exciting, as you challenge yourself with the unknown and try something you have never done before. While there’s little harm in ordering a new dish at your favorite restaurant, there are some “first times” you want to approach with a little more caution. In particular, it’s always a good idea to do a little research and seek out professional experience before selling for your first home. Here are a few tips that are always a good place to start for anyone getting ready to sell.
Prepare Your Home Once you’ve decided that you’re ready to sell, it’s a good idea to inspect your home, indoors and out, and analyze its shortcomings. Look for places where repairs are necessary, and determine if cosmetic touchups could be used to help enhance the strong points of your home. Buyers are looking for a clean, well-maintained home - so strive to give them exactly that. A home that’s “move in ready” is going to appeal to more to today’s buyers and may spend less time on the market as well as sell for a higher value than a home that is left in disrepair. A local agent can help you determine which projects should be addressed to maximize the value of the home.
Pricing Is Critical Consider the comparables – these are the homes that have recently sold in your area that are similar to your home with regards to location, square footage, the size of the land, and features. Choosing the listing price of a home takes strategy and must take into consideration your personal goals for the sale. Pricing a home a little higher than what you expect to get might lead you to think that you have wiggle room to negotiate with buyers, but the reality is that a high initial price might scare away some buyers or they patiently wait as your home sits on the market, hoping to jump in once the asking price is reduced. Sometimes, strategy dictates that is beneficial to start with a lower asking price- this could spark significant buyer interest, and could even start a bidding war- a great option if you’re on a short timeline, or are concerned about other aspects of the deal. This is one of the most crucial parts of a successful sale. Working with an experienced agent, the current market, the data received from the comparables, and your defined goals will all be weighed when determining the pricing strategy.
Negotiations
Negotiations start when an interested buyer puts forth an offer to buy a home. When it comes to real estate transactions, it is important to know the ins and outs of striking the best deal possible. The focus for many negotiations tends to be on the price of the home, where often the common thought is to “meet in the middle” but with real estate, there are so many other factors to consider. Other items that may be considered during the negotiating process are closing dates, contingencies, repairs based on inspection findings, and sometimes furniture or appliances that the buyer would like to have included in the sale. Flexibility is the key to being a successful negotiator, allowing you to mix and match these terms and conditions- alongside with sale price- to help both you and your buyer get what you want. Being able to talk with your agent and the buyers to find a happy agreement can sometimes take some back and forth until terms are agreed upon, but it’s important to stay positive. Both parties in the transaction have a common goal – the sale of the home! The seller wants to sell the home, the buyer wants to buy it – that common goal will help all parties come to an agreement.
Disclosure Agreements It’s almost a certainty that buyers will want to have a home inspected prior to making a purchase, but the Sellers Disclosure can help get buyers interested from the beginning. Being up front and honest with potential buyers can open the door to good communication and an easier negotiation process. When you share the details of the property’s history and current state, you really are giving buyers an opportunity to buy with confidence - especially if their inspection comes back and reflects the details you listed in your disclosure. When both parties are up front and earnest about making a deal, you’ll find that you often result in a smoother transaction.
Anticipating Closing Costs Title insurance, transfer taxes, commissions…. Closing costs can add up quickly, and for a first-time seller, they may come as a surprise. Depending on your agreed upon terms, closing costs could be split between both parties- again, this is another area where you can negotiate with the buyers to get the best deal for everyone involved. Regardless, it’s a good idea to understand these associated costs and how they could cut into the net proceeds of your home sale- an important aspect to consider, especially if you’re planning on purchasing a new home with those funds. Your agent will be able to outline them in detail.
Navigating the real estate transaction process can be done smoothly when you are prepared, and, ideally, have a trusted experienced agent on your side advocating for your best interests.