Home Selling Tips
1. Get Yourself Pre-Approved for a Home Loan
Sometimes sellers sign a contract to sell their home before they know if they’re qualified to buy another home. Some of those sellers ended up renting or buying homes far from their expectations. Before deciding to sell your home, get pre-approved by a lender you trust. After that, research the housing market in the area where you’re targeting. This will give you a good idea of how much it will take to buy a replacement.
2. Check Your Mortgage Payoff
Contact your lender to check the payoff for your current home mortgage. This figure will be needed to calculate your estimated proceeds later on.
3. Determine How Much Your Home is Worth
Determine the house’s fair market value. Real estate agents will usually help you determine this value as a courtesy so don’t be afraid to ask. You can always take it a step further and order an appraisal.
4. Estimate the Cost to Sell Your Home
Estimate the real estate commission if you’re using an agency to sell your home. Estimate any fees for attorneys, closing agents, or any other professionals. Estimate any advertising costs, signs, and other fees if you plan to sell by the owner. These are just a few of the estimations you’ll need to make. Consult your real estate agent to make sure you cover all fees, costs, taxes, etc…
5. Determine the Cost to Buy a New Home
Tally up your costs to buy a new home. Some of the costs include moving expenses, loan costs, down payment, home inspections, title work and policy, and paying for a new hazard insurance policy. These are all expenses related to buying a new home. A disclosure should have been provided to you by your lender when you applied for pre-approval. The disclosure will have the estimated costs.
6. Calculate the Estimated Proceeds
First deduct your mortgage payoff from your home’s fair market value. Now deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing. Something to think about is your closing proceeds going to cover your expenses to buy a new home? If it does not, will you have the funding to make up the difference?
7. Make any Necessary Repairs to Your Home
Unless you want your home to be regarded as a fixer-upper, make sure all needed repairs are done. Anything that is clearly broken gives potential buyers reason to submit a lower offer for you home. Cosmetic updates are a good idea also and will help your cause.
8. Prepare Your Home for Showing
Most homes need a little tidying up before they can be shown to a potential buyer. Organized closets and cabinets, polished windows and appliances, and a warm and friendly atmosphere will appeal to potential buyers. You can take it a step further by repainting your interior and exterior. There is a great deal of things you can do. All the extra things you do will add up and help your showcase.
9. Get Ready for Your Guests
Don’t consider it rude if you’re listing with a real estate agent and your agent asks you to leave when the house is shown. This is because lurking sellers make potential buyers nervous. The potential buyers won’t feel comfortable inspecting the house if they feel they are intruding. Also, you don’t always need your real estate agent to be present for your showings. Some real estate agents prefer private interaction with their buyers and usually buyers don’t have time to work around your real estate agent’s schedule. Another thing is to make your home accessible. Many real estate agents won’t bother showing a home if it takes a day or two or more to get into.
10. Now if You’re Ready, Find a Listing Agent
The listing agent for you isn’t from the largest agency. The listing agent for you isn’t the busiest or has the most experience either. The listing agent for you is the one who will market your home aggressively to potential buyers and to other agents. Try to research real estate firms and when you find one you like, interview their agents until you find the one you like. Ask any questions you think are important. Your decision to hire an agent should be based in part on an instinctive feeling that the two of you can work together.