Steps to Successfully Sell Your House
Selling a house can be just as stressful as buying one, especially if you’re doing both at the same time. From preparing your home for sale to moving into your next place, here are the essential steps for selling a house.
Preparing Your Home for Sale
Make Repairs and Upgrades
Before listing your home, conduct a thorough walk-through inside and out. Address any minor issues like loose siding or dents in the drywall. Take note of the age and condition of major components like the HVAC system, roof, insulation, and water heater. Upgrading older features can prevent potential buyer concerns during inspections and help increase your offer quality.
Stage Your Home
Staging your home enhances its appeal to potential buyers. Your agent can offer suggestions to make your home a blank slate, such as removing personal photos and painting walls. You can stage it yourself or hire a professional stager, who can often make a home look larger and more inviting. Staged homes tend to sell faster and for higher prices.
Deciding on Selling Strategy
Choose Between an Agent or FSBO
You might consider selling your home yourself to save on agent commissions. However, selling a home involves significant time, industry knowledge, and marketing skills. Even showing your house can be awkward without an agent. Experienced agents can navigate unexpected situations and advocate for your interests. If you choose to hire one, interview at least three agents to find the best fit.
Analyze the Market and Comps
Understanding your local real estate market is crucial. In a seller’s market, you might receive multiple offers above your asking price. In a buyer’s market, you may need to adjust your price expectations. Your agent will gather data on recently sold homes similar to yours to help set a realistic price. Look at properties with comparable age, style, location, and size for accurate pricing.
Setting the Right Price
Set a Competitive Price
After analyzing comparable sales, your agent will help you set a list price. Include a cushion for negotiation, but avoid overpricing, as homes typically sell for less the longer they stay on the market. Consider all selling expenses, including a 5% to 6% agent commission. If selling without an agent, factor in costs for marketing materials like signs, flyers, and professional photography.
Marketing Your Home
List and Market Your Property
An agent can list your home on the multiple listing service (MLS), giving it broader exposure. Use high-quality, professional photos and engaging descriptions to make your listing stand out. Digital tools like 3D virtual tours can also enhance your online presence. Hosting an open house shortly after listing can attract interested buyers.
Prepare to Negotiate
Negotiating with potential buyers can be complex. If you receive multiple offers, consider factors beyond price, such as the buyer’s timeline and financing. Your agent can help evaluate offers based on these factors. If your home sells before you buy a new one, consider a “rent-back” agreement to stay in your home temporarily after the sale.
Closing the Deal
Get Ready for Closing
You’ll need to make your home available for appraisal and inspection. Be prepared for any issues that arise and understand the contingencies involved. High-demand markets might see buyers waiving contingencies, but typically, you’ll need to address any inspection findings. Also, be aware of the closing costs you’re responsible for, which vary by location and agreement terms.
Final Steps
Plan Your Move
Coordinating your move involves organizing movers, packing, and updating your address. Despite the challenges, selling your home can be financially rewarding. The IRS generally allows you to exclude up to $250,000 of your home sale profit from taxes, or $500,000 if married and filing jointly. However, note that selling your home at a loss is not tax-deductible.
By following these steps, you can streamline the process of selling your home and potentially increase your financial gains.
