Considering selling your home soon? The process can sometimes seem intimidating, but this easy home selling guide should help you get through the steps to home selling with easy.
1. Pick a reputable, local Real Estate Agent to assist with your home sale
The ideas of home selling have changed. Have high expectations of Realtor representing the sale of your home. Home selling doesn't happen by magic, it happens when you hire the right Realtor®! The days of putting a for sale sign in the yard, printing a few brochures and placing the home on the MLS (multiple listing service) have changed. A well established Real Estate agent will be happy to provide you with a thorough marketing strategy in order to sell your home.
Home buying has gone digital, the way buyers search for homes has also changed. Make sure your Realtor is current on technology, has a mobile app, is a preferred agent with Realtor.com, and is interested in going above and beyond to make sure your home is seen everywhere and by every potential buyer. Get a sense of how other home sellers and clients feel about this particular agent by seeing real reviews and testimonials.
2. Spend Time Making Your Home Show Ready
It's statistically proven that a home that is clean, clutter free, and as close to move-in ready as possible will likely yield a higher selling price. Be aware that your first showing of your home is online. Remove the clutter from your home, de-personalize your home, pack up small knick-knacks, clothes out of season or items that you haven't used in awhile or don't plan to use in the next few months when your house is listed for sale. Removing those things will help you prepare for the actual move, can eliminate something getting broken during a showing and will make your home appear larger and show off that you have good storage throughout your home. Need a home consult, book one now FREE.
Most importantly, ask your Realtor® for staging tips. Always, always pick an agent that uses a professional photographer. They know the best way to portray your homes best features and angles that will make your first showing online, get those showing requests coming through at rapid pace.
3. Prepare For Your Next Step
If your plan is to move into a larger home with special features, let your agent know that so you can scope out the inventory while your home is listed. The Real Estate market changes rapidly if your goal is to purchase another home, talk to a lender, get a referral from your Real Estate agent and start that process early.
Remember, in a fast-moving Real Estate market a contingency for the sale of your current home may not be considered as aggressively as a sale that is not contingent on the sale of your current home. Talk to your Real Estate agent to get a feel for the current market conditions so that you are proactive about getting the home you want.
4. Negotiate to Win
Your Real Estate agent should complete, a seller's net sheet for you which explains the cost associated with selling your home. In this cost analysis, it's likely your Real Estate agent will mention that closing costs are paid by the seller. Depending on the state you live in, it is very customary for a home buyer to ask the seller to contribute to their closing costs. This fee, which is usually 3% of the purchase price will likely be added to your seller's expense sheet. Some prefer not to contribute to a buyer's fees but consider this...
your buyer may be a first time home buyer with limited funds. Without the 3% closing costs, the buyer may not have enough money to purchase your home. Work with your Realtor and focus on the bottom line. It's possible that increasing the sale price would absorb the closing cost expense and get your bottom line where you would like it to be, all while creating a win situation for all parties.
5. Stick to The Purchase Agreement or Contract
Your local Realtor® will make sure the buying side meets all of their deadlines when it comes to submitting earnest money, completing the inspection during the appropriate timeframe, getting you a commitment letter from the lender and getting the clear to close in sufficient time prior to the close date. It's possible the buyer will have a list of items that will need to be repaired/replaced, or the other option is to make a price concession where appropriate. Depending on the repair you may need to pull a permit. You may want to check with the city where you live as to what is required, also, remember some of these repairs could also include an inspection by the city. Be mindful of the requirements needed to complete the work and consult with the repair professional as to what is required so you're not scrambling at the last minute to get an inspection. Some local cities in the twin cities also require a city inspection usually prior to the home being listed on the MLS (multiple listing service). If you live in one of these cities, the city inspector may have pointed out some required repairs on your inspection. These repairs will need to be completed and inspected by the city so a certificate of completion is issued, this will be given to the title company as part of the closing documents so getting that complete early is in your best interest.
Remember to keep your receipts, often times paid receipts will also be part of your closing documents so keep them to show that you do not have any outstanding mechanics liens and the work was paid in full.
It's possible that a few items may have come up during the appraisal. Any work that is required to be complete on the home by the lender is referred to as lender required repairs. This means that the work will need to be completed prior to the lender being able to fund the loan (lend to your buyer). Complete them as quickly as possible as a re-inspection from the original appraiser will be necessary before a clear to close will be issued. Delays in the work or delays in getting the appraiser back to inspect the work will likely cause a delay in closing the home on time.
6. Prepare to Close
If you're selling your home in an estate or the sale of the home is associated with a divorce or you will be using a power of attorney, discuss these situations early with your Realtor®. Usually, any documents that will be made part of the closing documents will have to be official or certified copies, with a seal and the staples cannot be removed. Check on these situations early so you don't have any surprises at the closing table.
Beyond special situations, your purchase agreement is complete, you have stuck with the purchase agreement and received a clear to close from the buyer's lender, now what? Find any keys, garage door openers, and manuals to pass on to the new buyers. Make sure the home is left clean, and all personal property is removed from the house. It's customary for the buyer and their agent to complete a final walk through on the home. The purpose of this is to review the home, make sure everything is in order according to the purchase agreement (work orders completed) any items written into the purchase agreement are still in the home and it appears as they remember when they wrote the offer. They will also be checking that all appliances, plumbing, electrical etc. are still in working order. The lockbox will be removed and the last key brought to closing.
Review your settlement statement (ALTA statement), this is similar to a balance sheet and will outline all of your expenses associated with the sale of your home. It's typically in a form of debits and credits and is usually prorated to the day of closing unless otherwise specified.
For more home selling info, connect with The Herda Home Team at 612-807-4858 or HerdaHeidi@gmail.com