Real Estate

Selling your home can seem like a very daunting process, especially if you have never done it before. Even for people that have sold their home many times it can be a very overwhelming process. In this article we will talk about steps to the home sale process. The process is not always gone through in the same manner or order, but most of the time homeowners are advised to keep to this step by step process.

Decide to sell your home and what method to use.

This may seem obvious but many couples can go back and forth about this decision for months at a time and may lose their momentum in the middle of their effort. In most circumstances, the home sale will feel like a marathon with multiple steps rather than a quick sprint. There is planning and multiple decisions to be made. Make sure you are committed to your decision. As soon as you decide, the next step is to know whether you are going to sell your home yourself or use a real estate agent. This is also a good time to eye the costs of the closing process since you may have liens on your property and other debts that need to be fulfilled before the sale. We buy houses in Elk Grove

Go through the prelisting process.

The prelisting process is a mash up of different things, but generally this process is marked by making your home look its absolute best by yourself and using professionals as well as chasing after paperwork you know you will need during the closing process. Thus, this includes deeply cleaning each room, staging the home, and making the necessary repairs to bring your home to good condition. This is also the time to decide on your asking price, either by comparing similar listings or hiring a real estate appraiser. After the staging and decorating process has been completed, hire a professional photographer to take stunning pictures of your home. These you can use on your online listings to attract buyers who are wowed by the sight.

Listing Your Home

If you are using a real estate agent this can involve two things, one a listing agreement to the agent in question and showing of your home for a certain time period. If you are going to be selling your home privately you will want to get the materials together to make a great listing and then post it to the most popular sites. You will also want to purchase a sign and consider other listing methods like a magazine, newspaper, or other marketing materials. Some sites will even give you a yard sign and other marketing materials if you pay for the premium fee.

Arrange Showings And Consider Offers

Once you have advertised your listing you will start to receive interest from multiple interested parties. When you are using a real estate agent you will want to make sure that you have flexible showing times to be able to show the house to the most people as possible. If you are doing the showings yourself you will want to give the prospective buyer as much space as possible to see the home. No matter what the case you will want to give each offer consideration and to send counteroffers even for lowball offers.

Accept An Offer And Sign A Purchase And Sale Agreement

You will sometimes have to go through many rounds of negotiations but when an offer is finally accepted it will mean that you are in the home stretch. If you have multiple offers you will want to pick a buyer that has the best financing and keep a second offer as a backup just in case the first one doesn’t work out.

Go through the Closing Process

The closing process is about fulfilling the obligations that are stated in the contract and making sure all the financial and legal aspects of the sale are squared away and correctly done. You will be working with title insurance companies, escrow services, and real estate attorneys to make sure this process goes smoothly. On the closing day, the escrow or lending company will have you sign the necessary paperwork which transfers the deed from you to the buyer.

Selling your home is a big decision and requires a lot of work. Every bit of prep work you do helps you get the most return from your investment. Following are 5 tips to help with the home selling process:

1. Investigate the local housing market

Visit the large real estate sites, such as Realtor.com, to see how similar homes are priced in your neighborhood. Check your local newspaper for a listing of selling and asking prices of recently sold homes. Many newspapers will also list the length of time the homes were on the market. Use the prices for your neighborhood over the past several months as a reference point of what your home is worth.

2. Select an agent

Some home sellers opt to sell their home without an agent in an effort to save the 6% of the selling price that a broker typically collects. Don’t forget about the work involved in marketing the house and being available to show it at any time. If you decide to work with an agent, be sure to ask for referrals from friends. Make an appointment with the agent and interview him or her for the job. Ask the agent for thoughts on the selling price to ensure it is comparable to the homework you did. Be wary of agents who boast an inflated selling price. Go by what you know about the current housing market in the area and what you know about your house.

3. Educate yourself on the Commission Structure

Upon finding an agent to work with, you will need to sign a listing agreement. The listing agreement is a contract that outlines the specifics of your arrangement, such as how long you will let the agent represent your home and what the compensation will entail. Be sure to include relevant information, such as when you want the house off-limits for walk throughs.

Some agents will request an exclusive listing which means the property will not be offered in the local MLS and the listing broker will not share their commission with other brokers in the event the house is sold within a specified time frame. In this situation, you should commit to no longer than 3 months to avoid being locked into a bad situation.

Commissions can also be negotiated. For more expensive homes, agents may consider lower commissions of 4 or 5 percent (instead of the usual 6 percent). Or, in a buyer’s market, consider offering a higher commission if the agent sells the house within a certain percentage of your asking price.

4. Prepare for an Open House

Regardless of whether you are a For Sale by Owner or are working with an agent, you’ll need to ensure your home is up-to-par to show to prospective buyers. Remove clutter from every room by packing up what you won’t need in the short-term or by organizing a garage sale to thin things out. Move any unneeded furniture into storage. Paint the interior and/or exterior if it looks worn. Keep the lawn mowed and plant flowers (if it’s the right season). Fix known items, such as roof leaks.

Next, settle on an asking price. To price your home, take a look at what comparable homes are selling for in your neighborhood. Your agent should provide you with sales information as well and help you determine a strategy for pricing your home higher or lower.

5. Execute Good Timing

Research the average length of time homes are on the market in your neighborhood. Price the house according to when you need it to sell.

Your agent will provide guidance on how to respond to bids. Make sure your agent reviews the contingency clauses included with the bid. As a general rule of thumb, it’s not wise to sell your home with a contingency that the buyer must sell their home first.

Restrict the buyer’s contingencies within a specified amount of time. For example, if the sale is contingent upon the home passing an inspection, then get the inspection scheduled within 7 to 10 days of an accepted bid. As far as the closing date is concerned, ensure the buyer commits to a reasonable date, such as 45 to 60 days from acceptance.