Home Selling Basics
While the process of selling your home can differ from state to state there are some basics that will apply to most home sales. The tips below will help ensure that you get the most for your investment and protect your interests in the sale.
One: Get Pre-Approved
Remember when you began the buying process and you had to get pre-approved for a loan? Well before you sell your home you need to make sure you are pre-approved to purchase another home if you are planning on buying another one. Changes in your financial situation can change your ability to qualify for another loan or may reduce or increase the amount of money you can qualify for. If you get pre-approved before you even think about listing your house on the market, you will prevent yourself from having to rent or buy a house you don’t really want. When you fill out your pre-approval application make sure that the lender informs you of the estimated costs of purchasing a new home. These costs can include the down payment, closing costs, origination fees, titles fees and points.
It is good to get an idea of what proceeds you can expect to receive at closing. You can do this by contacting your lender to check the mortgage payoff and calculate your estimated proceeds. You begin by subtracting the mortgage payoff from the fair market value of your home. After that you will need to subtract the costs to sell your home from the remainder. What you’re left with is your estimated proceeds which will contribute to your budget for your next home.
Three: How Much is Your Home Worth?
You will need to determine how much your home is worth at fair market value so you know how much you can list your home for. Your REALTOR® will provide a market analysis as part of the the listing of your home they will also provide you with a list of things that can increase the value of your home. A licensed appraiser can help determine the value of your home as well. They will give you a detailed report that will show you the value of the other homes in the area in comparison to yours, an evaluation of the real estate market in your area and a list of factors that may be affecting your home’s value.
Four: The Cost of Selling
It is important to determine how much it is going to cost to sell your home. You will need to factor in REALTORS® fees and a list of other fees which may include a professional appraisal, inspections, surveys, taxes and HOA fees. Your REALTOR® will give you an accurate assessment of the closing costs and any other fees that may be involved in the sale. Your LKR REALTOR® will assist you through the entire process and though they will take a commission from the sale of your home, many times they can help you net a larger profit from your home than you could if you decided to do a for sale by owner sale.
Five: Make Some Fixes
An easy way to ensure your home will sell as close to asking as possible is to make all necessary repairs to your home. Many of the home buyers in today’s market are not looking to have to make a lot of fixes to the home after they purchase it, they want move-in ready. This means they don’t want to have to fix a leaky faucet, replace anything that is broken, have your carpets professionally cleaned or replace them with new ones, apply a fresh coat of paint to rooms that need one, etc. As most of the buyers in today’s market do not have time to fix up a property after they buy it, it is important that your home is move-in ready and competes with the other homes for sale in your area.
Six: Dress Up Your Home
It is time to get your home ready for showing. This means it is time for some decluttering and “spring cleaning” if you will. Pack up anything you will not need until you move and put it in storage or see if you can keep it in a friend’s basement until you move. Donate anything you don’t intend to leave for the buyer to a local shelter or charity. Throw away anything you don’t intend to move or cannot donate. This will leave you with a home that looks like someone lives there but with all of the extra clutter removed the owner will be able to see how much space is really in your home. In other words the decluttered space will make your home appear bigger. After you have decluttered you will need to clean your entire home. Deep clean every window, ceiling fan, vents, bathroom, appliances, essentially you need to make your home appear spotless in order to drive people to make offers. If you don’t have a lot of furniture or if your furniture is a little older you may consider hiring a professional stager. Don’t forget about the exterior of your house either. You may need to add a fresh coat of paint or new siding to your home along with a new roof depending how long it’s been since they were replaced. Make sure that your lawn is kept up and that you do any fixes necessary to improve your curb appeal such as trimming bushes, watering your lawn, cutting the grass, weeding, etc. During the open house it is best to not be present while potential buyers are looking through the house, it is also a good rule of thumb to take any animals out of the home during this time.
Good luck and happy selling!
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