This may well be the perfect time to sell your home. With housing prices rising over the past two years, they are potentially reaching their peak. Mortgage rates are going up now, and we could soon see a plateau, if not a downward trend.
Of course, if you need to buy a new home, you’re going to have to face the high prices too, but in isolation, you could get more for a home than ever before. That’s if you know how to sell your home at least. Most sellers do not know where to start or even the cost of selling your home.
Yes, selling your home is not going to be free. Costs include everything from getting your home into shape to renting furniture for staging to paying an agent commission. The costs will pop up throughout the process.
But what is the process? Let’s take a look at the 6 steps to sell your house.
1. Find the best real estate agent
Technically, you could sell your house yourself, but you’d need to either put in a ton of work that you’re not equipped for or get very lucky. Finding an real estate agent is far more sensible. However, you shouldn’t get just any real estate agent. There is a huge difference between a good agent and a bad one.
In the past few months, many homes have been sold by a certain agent in my neighborhood. My direct neighbors, however, have had their home on the market for almost a year. They moved to another country months ago, and have relied on a lesser-known agent to sell their home. While their home has sat empty, there has not been a single show day.
Good agents get deals done quickly, without accepting poor offers. They proactively find buyers who they recognize as perfect candidates for your home. Bad agents hope the home sells itself or, worse, expect you to do the legwork for them. Find a reputable agent who has a track record of sales in your area. They are going to receive a hefty commission at the end of it and should earn it.
2. Price your home
Pricing your home is a crucial step to the process, but in reality it is another thing you will need to ask your agent to do. The housing market does not run on objectivity. On the contrary, it is very dependent on supply and demand. Your home may be worth a hundred thousand dollars more than it was worth two years ago, and for no reason other than low supply and high demand.
Your real estate agent can do a comparative market analysis (CMA), and price your home according to what they think they can get you in the current climate.
3. Get a home inspection
Getting a home inspection before putting your house on the market is a good idea for two reasons. Firstly, it gives you the opportunity to address any potential issues, giving you more confidence in your home’s saleability. Secondly, you can use it to reassure potential buyers that your home is in good shape.
A home inspection may cost a few hundred dollars, but at the end of it you will have a detailed report about your home’s condition. If there are any major issues, you should see to them and keep receipts as proof that you had the work done. You can decide on whether or not to address minor issues that won’t have too much impact on your selling price.
4. Stage your home and take photos
Many people skip this step and end up regretting it. There are homes which are technically ready for showing before staging. However, most homes require, at the very least, a deep cleaning and some touch ups. These will improve the experience of potential buyers. If your home feels grimy or neglected, that can put buyers off, even if the grime can be easily removed.
If there are rooms in your home that are standing empty, you can rent furniture for staging. Rooms look a lot smaller when they are empty, and some people do not have the gift of being able to visualize a space’s potential.
You should also hire a professional photographer to take photos once your home is staged, as these will attract the kind of buyers you are hoping for. The staging and photographing process will be a few hundred dollars well spent.
5. List your home and find a way to manage showings
Now it is time to list your home and get ready for people to come see it. Showings are not an easy process to get through. People are assessing a home you have loved, which can be a sad and even infuriating thing to watch. You also have to ensure your kids or pets have somewhere to be during showings.
You can choose to be there, but many people just do not want to be part of the process and that is fine. A good estate agent will do a far better job at talking up the positives of your home.
6. Negotiate and close
People will put in offers that fall into one of three categories:
- insulting
- low but worth negotiating
- at or above asking price
People in the first category you will hopefully be able to reject out of hand. If someone offers your asking price (or above it!), you’re in the ideal scenario. But most people will offer a little bit below your asking price, accepting that they will enter negotiations with you. Don’t be scared to be a little stubborn, but let your agent advise you when they think it is a good idea to accept an offer.
Once you’ve accepted an offer and signed the contract, you need to take care of the admin and make plans to move out. Selling your home is stressful and can be a bit depressing, but with these 6 steps, you will get the basics done.