Thinking of selling your home? Here are 5 things you should know
Real Estate Agent vs. For Sale By Owner
You’ve made the decision to sell your home and want to sell it for top dollar. Now what? First things first, you should start interviewing Real Estate Agents.
Now, I’m 100% biased when it comes to hiring a realtor vs. selling your home yourself, but it comes with the territory. Being a realtor for 5 years, I’ve seen countless individuals leave more money on the table than they’ve “saved” in realtor commissions.
Buy It Now or Make Me Move Price
On top of that, a lot of individuals are now going with “Buy it Now” price/offers from companies such as Zillow. Little do they know, the commissions might appear low upfront but they get you on the backend with a TON of fees that tend to add up to be more than you would have paid out in typical commissions. (In some situations, I’m hearing 8%!!)
Get Expert Advice
Meet with an expert. A Realtor who has been in the business for a few years, understands your specific location and neighborhood, and will shoot it straight with you will be able to provide you sound advice. There are a handful of important factors every homeowner should consider when preparing to sell their home including: timeline, understanding the market conditions, and getting expert evaluations of your home’s value.
To help get you started on the right foot, I’ve outlined five high discussion topics you should be thinking through and discussing with your agent. This will allow you to optimally align your goals, strategize your return on investment, and hopefully mitigate the stress of selling your home as much as possible. Moving is a BIG DEAL and you want an expert on your side to help you through a smooth transition. So let’s get started!
1
Determine Your Timeline
What is your reason for selling? This motivation can influence your timeline and approach. Whether you are relocating, have a growing family, or want to downsize, your ideal timeline is often the largest factor in deciding when to get started with your sale.
If you are flexible, keep in mind things like moving during the colder months of the year vs. warmer months, school year schedules, and what your moving plan is. These factors play a large role for many of my clients’ buying and selling timelines.
2
Selling by Season
Spring and summer tend to be the most active times of the year for real estate. Both the supply and demand see an increase throughout the warmer months. Be sure to keep in mind that higher inventory levels means more competition, and pricing your home competitively to get an optimal number of showings and bids is important. Multiple offers can drive up the sale price.
Throughout the fall, the number of homes for sale begins to plateau and slowly decline. This makes it easier for you to stand out, but there tend to also be fewer buyers transitioning out of leases, or moving during summer breaks. However, buyers during this time are usually highly motivated and love to see the seasonal changes around potential neighborhoods. Be sure to rake your yards and keep things feeling fresh and clean.
For winter, try to list your home before the holidays and take photos before the first snowfall. Make the home look cozy, warm and inviting. If the home is listed throughout the holidays, it is important to keep your holiday decorating as neutral as possible. You want to attract the masses, and the winter months are usually buyers looking to relocate for work or to be closer to family.
3
Your Home’s Market Value
Don’t be too quick to mentally lock into a price until you know its true value. Online automated valuations are merely looking at specs (number of bedrooms, bathrooms, and garage stalls as well as square footage and location). They do not take into account your specific homes features, appliances, etc. A comparative market analysis (CMA) is used by Real Estate Agents to accurately determine your home’s value.
Data that is considered in a CMA:
- Market condition (buyer‘s or seller’s market)
- The taxed-assessed value of your home
- Nearby comparable properties that have recently sold within the last 3 - 6 months
- Specific finishes in your home compared to other homes in the area
- Significant upgrades and renovations
4
Your Next Home
If you haven't yet nailed down where you want to move, I highly suggest driving around some potential neighborhoods and cities. It's one of the best ways to get a first hand look and decide where you want to narrow your home search!
Think through what’s most important to you. Interstate access, school district ratings, walkability, outdoor recreation, safety, privacy, etc. From there you can leverage a local Realtor to help direct you to some neighborhoods and areas that you might like based upon your preferences. Be sure to chat with them about pricing, you don’t want to get your hopes up on a specific area and neighborhood that is unrealistic with whatever budget constraints you may have.
5
Getting Your Home “List Ready”
Depending on who you ask and what their real estate approach is, getting your home “list ready” can look very different from agent to agent. At the end of the day, the data doesn’t lie. The more time you take to prepare your home for sale, the larger returns you will see.
I’ve shared many different blog posts on the impacts of staging your home, 72 hour weekend projects that can increase returns, and more. I would highly recommend taking the time to strategically make small updates to your home prior to selling. They go a LONG way and speak volumes in photography. Good photography ultimately brings more people through your door, which increases the likelihood of receiving an offer.
I hope that helps get you started! Real estate is all a numbers game and staying up to speed. If you approach it with the right partner and you can adapt to the market, you’re sure to find success in your own way. I am always here to help in any possible way.
Good luck!
Jen
Real estate investor, landlord and DIYer, Realtor, Business consultant, Globe trotter & Converting vegan.
