Your home is likely your most expensive asset. That is why when you sell your home you should make sure you understand all the terms and conditions involved to ensure you end up on top. These tips were compiled to help sellers like yourself understand the key points to watch over and to help you better understand the home selling process.
1. Stick To The Contract
If the buyer tries to change the terms of the contract or bend the rules, say no and tell them that you have been advised against it. It is better to not to take any chances with the deal falling through.
2. When to Get an Appraisal
Sometimes a good appraisal can give you a good indication of how to price. An appraisal is a good way to let prospective buyers know that your home can be financed. An appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the value given to you.
3. Shop The Market
To learn how to make your home look better, you can visit other homes on sale and see what you like and don’t like. Chances are other buyers will feel the same way and this can help you identify the do’s and don’ts for your home. A particularly important thing to note is not just the asking prices but the selling prices as well. You don’t want to price higher than your neighbors or it could end up taking you a long time to sell.
4. Always Counter Submitted Offers
Even if an offer is ridiculously lower than you were asking, always counter it. You never know how flexible a buyer may be, or how high they may actually be willing to go. If you walk away from a low offer, you may be walking away from a sale.
5. Selecting a REALTOR®
According to the National Association of REALTORS®, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Most people find it hard to choose a price and market their property. In addition it can be difficult to understand the liability involved and can add stresses to an already stressful time. When selecting an agent, always check out your options before making your decision. Make sure you see multiple Real Estate Agents before making your final decision. A professional Real Estate Agent knows the market and your area and can provide you with information on past sales, current listings and can develop a marketing plan for your home. Always make sure to evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Always choose somebody you can trust and somebody that you have confidence in. If you choose to sell on your own, you can still talk to a Real Estate Agent . They can often help with paperwork, contracts, etc. By being in touch with a Real Estate Agent if problems arise, you will have an experienced individual that you can readily call upon.
6. Tax Assessments Aren’t Always Accurate
Many consider tax assessments as a way to determine the value of a home. Unfortunately they do not always serve that purpose. Tax assessments are based on criteria that may not be related to the value of your property and thus may not indicate the real value of your home.
7. Get A Second Opinion
A second opinion can never hurt. Sometimes something you may not notice in your own home, someone else may be able to point out. Never be shy to ask for another opinion. Remember, if someone else notices a problem with your home, buyers will too! Fortunately, your Real Estate Agent will be honest about what you need to do to make your home marketable.
8. First Impressions Do Matter!
The look and feel of a home can be the difference between a bidding war and an offer-less home. When people come to see your home, the first impression they get will determine whether or not they believe it is worth pursuing. The look and feel of your home will generate an emotional response from buyers and help them feel at home. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.
9. Odors Can Drive Buyers Away
Pets, smoke and food smells can be deal killers in real estate. Even the tiniest odor can make buyers uncomfortable. It is your job as the seller to hide these odors and make sure signs of smoking and pets are not visible. Buyers assume that homes owned by smokers or homes that have pets will not be in the same condition.
10. Don’t Tell Buyers Why You Are Selling
Why you are selling your home can affect the way you negotiate and market it. Keeping these ideas to yourself gives you the upper hand in negotiations with potential buyers. If you are asked, simply say that you need something different from what you currently have.
11. Be Open With Buyers
Be open with your buyers. Answer questions and volunteer information. Buyers will feel more comfortable purchasing a house from someone they can trust. This can also reduce liability and prevent lawsuits later on.
12. Let Buyers Envision Themselves Living in Your Home
You want to avoid making potential buyers feel like they cannot see themselves living in your home. It is important to make the home look welcoming yet neutral so that the buyer is not forced to think of the home in a particular way. They can use their imagination to arrange items in the home and make it comfortable for them. Remember, if a buyer cant see themselves living in your home, why would they even consider buying it?
13. Don’t Let Emotions Get In The Way
Approach selling your home as a business deal. Even though you may have years and years of memories in the home, if you want to successfully sell the home, you will have to detach yourself and focus on the business aspects. You'll definitely have an advantage over those who get caught up emotionally in the situation.
14. Make Sure You Know Why You Are Selling
Make sure you have a clear understanding of why you want to sell your house and what are the key things you are looking for in return. Some people put price above all else, while others are more concerned about dates and conditions. Be sure you know what is important to you so that you can define your approach and stick to it. Depending on your goals, your approach can become very different.
15. More Interested Buyers Can Bring Higher Prices
The better you are able to market your home, the more buyers you can attract. If you have multiple interested buyers this can give you the luxury of choosing the price and terms that fit what you want. You will have control over the sale and may even be able to create a bidding war to increase the price of your home.
16. Determine What The Buyer Can Afford
If you understand what your buyer can afford, you can better understand if they are likely to be able to put an offer on the home. In other words, this can help to determine which buyers are legitimate and which will likely walk away.
17. Research Before You Price
Price is key in selling your home. Pricing can indicate to potential buyers that your house is over priced or under valued. In either case, this can have a negative impact and can reduce the number of potential interested buyers. You also want to see what other homes have gone for in your area and the prices of homes you would be competing against. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for. In subdivision neighborhoods, typically you find homes that have similar floor plans. You can select your price by looking at recent sales in your neighborhood to give you a good idea of the value of your home. In older neighborhoods, homes can change over time as owners replace or upgrade various aspects of their home. This can cause homes that were initially the same to have very different values. In this case you should consider consulting a Real Estate Agent to help you with determining your price. Another good way to determine the price in your neighborhood is to pay a visit to your City Hall, they can provide you with public records that include home sale information.
18. Determine When The Buyer Wants to Close
Quite often, when buyers would "like" to close is when they “need” to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you and can help you get the closing date that you want.
19. Understand Why Your Buyer Is Interested
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process. As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly? Armed with this information you are in a better position to bargain.
20. Moving Before Selling Can Detract Buyers
It is more difficult to sell a home when it is empty. Buyers see the home as forgotten, unwanted and unwelcoming. Try to sell your home before you move to make your home more marketable to potential buyers.
21. Make Your House Look Brand New
Wash, wax, dust, clean up, repair and do whatever else you need to do to make your home look like the day you bought it. Even the smallest mistake can be costly in attracting a discriminating buyer. Remember, you're competing with brand-new homes as well.
22. Never Buy a New Home Without Selling Your Current One
Beware of closing on your new home while you're still making payments on the old one. This could land you in a sticky situation and may force you to sell quick and not get the value you deserve for your home.
23. Be Sure Your Contract Is Secure
To avoid problems, ensure that all terms, costs and responsibilities are spelled out clearly in the contract. By having a good Real Estate Agent by your side, they can help you through these details. Make sure it includes items such as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.
24. Avoid Deadlines
Try to avoid hard deadlines or you may be forced to become a desperate seller. In situations like this, the buyer can gain the upper hand and can control negotiations because they know you must sell.
*The trademarks REALTOR®, REALTORS®, the REALTOR® logo, are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under licence.”
*The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license”.