Last reviewed
"...discover how to protect and capitalize on your most important investment.."
Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the home selling process, a guide has been prepared from current industry insider reports. Through these 27 tips, you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.
Before You Put Your Home on the Market
1. Understand Why You Are Selling
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.
2. Keep the Reason(s) You're Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to the buyer which can be used against you in the negotiations. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process.
3. Before Setting a Price, Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents.
4. Do Some "Real Estate Window Shopping"
Visit other homes in your area that are for sale. Note their prices and how they compare to your home. Pay attention to the condition of each home and what upgrades or special features they offer. This will help you understand what buyers in your area expect at different price points.
5. Price Your Home Right the First Time
Pricing too high can be as costly as pricing too low. Research has shown that homes priced more than 3% over market value take longer to sell and usually sell for less than their market value. This is because potential buyers who can't afford the price don't bother to look, and buyers who can afford the price believe they should be getting more for their money.
Preparing Your Home for Sale
6. Maximize the "First Impression"
Impression is everything! Many buyers make up their minds in the first few minutes of arriving at a property. Consider what they will experience when they drive up to your property for the first time, walk up the walkway to your front door, and enter your property. Remember that you never get a second chance to make a first impression.
7. Clean, Clean, Clean
Cleanliness signals to buyers that the home has been well cared for and is most likely in good repair. A clean home indicates a home in which less money will have to be spent fixing it up. This equates to dollars in a buyer's mind.
8. Remove All the Clutter
Have a garage sale. Empty closets. Donate items to charity. Do whatever you need to do to create the perception of space. Remember, you're not just selling your house, you're selling space. The more spacious your home seems, the more valuable it will be perceived to be.
9. Go Light and Bright
Open all curtains and blinds when showing your home. Add lamps where needed. Consider replacing heavy curtains with lighter ones. Paint dark rooms in lighter, neutral colors. This will make the room feel bigger and more inviting.
10. Make Minor Repairs
Replace cracked floor or counter tiles, patch holes in walls, fix leaky faucets, doors that don't close properly, broken window panes, and other minor flaws. These small imperfections can create a negative impression that your home hasn't been well maintained.
11. Make the Kitchen Count
The kitchen is often the most important room in a home. Consider a fresh coat of paint, new cabinet hardware, or even new appliances if your budget allows. A clean, updated kitchen can significantly boost your home's value.
12. Bathroom Close-Up
Ensure all bathroom fixtures are gleaming clean and in good working order. Re-caulk tubs and showers if necessary. Consider updating dated light fixtures or hardware. Fresh, fluffy towels and a new shower curtain can work wonders.
13. Create Neutral Space
Remove excess furniture, toys, and personal items like family photos and collections. You want buyers to imagine themselves living in the space, not feel like they're intruding in someone else's home.
14. Pay Attention to Odors
Be aware of any odors from pets, cooking, or smoking that might be off-putting to buyers. Fresh air, candles, or air fresheners can help, but be careful not to overdo it.
During the Selling Process
15. Be Aware of Your Rights and Obligations
The process of selling your home can be complex. The contract you sign with your REALTOR® is a legal document. Know what it means when you sign it. Ask your agent to clarify if anything is unclear.
16. Be Flexible with Showings
Yes, it's inconvenient to have to clean up and leave your home on the spur of the moment, but the more often you do it, the sooner you'll sell your home. Be as accommodating as possible with viewing times, even at inconvenient hours.
17. When the Offers Come In, Keep Emotions in Check
When you receive an offer, remember this is a business transaction. Try to set aside your emotions and respond objectively based on market conditions and your personal needs.
18. Ensure Buyer Qualification
Don't waste time with buyers who cannot afford your home. Ask your agent to check that every buyer has been pre-qualified by a lender before you seriously consider their offer.
19. Disclose Everything
Smart sellers proactively go above and beyond legal requirements to disclose all known defects to their buyers. If a buyer knows about a problem, they can't come back with a lawsuit later on.
20. The Home Inspection
Don't be present during the inspection. The buyer's inspector is working for them, not you. Make sure all utilities are on and the inspector has easy access to all parts of your home, including the attic and crawl spaces.
21. Be Prepared for the Appraisal
The bank will require an appraisal to ensure the property is worth what you're asking for it. Provide the appraiser with a list of recent improvements and comparable sales in your neighborhood.
22. Prepare for a Low Appraisal
Sometimes appraisals come in lower than expected. Have a strategy in place with your agent about how to handle this if it occurs.
23. Moving Out Before Selling?
Consider having your home professionally staged or at least leave some furniture to give the rooms scale. Empty rooms can appear smaller than they really are.
24. Look at All Offers
Even if the first offer seems too low, don't reject it out of hand. It may lead to a better offer, and even a low offer gives you valuable information about buyer interest and what the market will bear.
25. Closing Day Preparation
Make sure all agreed-upon repairs have been completed. Plan to be out of the house well before the buyers arrive for their final walk-through. Leave the home in spotless condition with all agreed-upon items in place.
26. Resolve Issues Quickly
If any last-minute issues arise, work with your agent to resolve them quickly. The longer an issue drags on, the more likely the sale could fall through.
27. Don't Stop Marketing Your Property
Until the contract is signed by all parties and all conditions are satisfied, continue to market your home. Remember, the transaction isn't final until closing.
By following these 27 tips, you'll be on your way to a successful home sale. Remember, your REALTOR® is there to guide you through each step of the process and help you navigate any challenges that arise.
