Cheryl Fleming, GRI, ABR's Blog
All home sellers understand that there are some costs to selling a home, but not everyone realizes what they're expected to pay for (and how much the total will be). We'll look at the most common expenses and how they might affect your budget.
Real Estate Agent Fees
This is probably the first thing that comes to mind if you're selling a home. The standard rule is anywhere between 5 to 6% of the final sale price. Not all sellers will shoulder this cost, but the majority will. So if your home sells for $300,000, you should expect to hand over at least $15,000 to be split between the buyer and seller real estate agents. Please note that commissions can be negotiable, especially if you're selling in a popular neighborhood.
While none of these costs are strictly necessary, they can help you get your home ready:
- Repairs: If you're not planning to sell the house as-is, it's a good idea to spruce up the interior and exterior of the property. Even if you're only buying a few cans of paint and a roller, the costs can add up quickly.
- Home inspection: Buyers will typically do their own home inspection, but sellers who go above and beyond can give themselves an edge in a competitive market. If you're going out of your way to buy a home inspection, it can show you have nothing to hide. These inspections cost a few hundred dollars and may reveal structural problems that you were unaware of.
- Staging: Arranging your furniture to show off the best of the home can really inspire buyers to view its potential. Whether you dress up your home with cozy touches (e.g., cashmere throws, small bouquets, etc.) or more modern decorations, it can help attract the perfect buyer.
If you're moving out before you sell the house, you'll need to continue paying the utilities. You'll also need to check with your lender as to exactly how much you owe when you pay off the loan. Some lenders will charge prepayment fees upon early termination. You may also be asked to either pay or split the closing costs, especially if you're selling in a buyer's market. This can include anything from the title inspector fees to transfer costs. Finally, you may need to pay capital gains tax if your home skyrocketed in value or any lingering property taxes.
Some sellers end up paying closer to 10% of the total sale price of their home, a figure that can be difficult to swallow for many sellers. It's worth clarifying each cost so you always know what you're paying for.
There is no one-size-fits-all approach to craft an effective property listing. Instead, a seller needs to allocate the necessary time and resources to ensure a house listing hits the mark with buyers. In fact, failure to do so may make it tough for a seller to generate interest in his or her home. Perhaps even worse, an ineffective home listing may make it virtually impossible for a seller to enjoy a fast, profitable house selling experience.
Ultimately, there are many things a seller can do to create an effective home listing. These include:
1. Provide Accurate Information About Your Home
Include pertinent information about your home in your property listing – you'll be glad you did. If you can provide lots of relevant information about your home to prospective buyers, you may increase the likelihood that buyers will set up showings to view your residence in-person.
There is no need to stretch the truth in your home listing, either. Conversely, if you strive to include accurate information in your home listing, you can help a buyer make an informed decision to determine if your home meets his or her expectations.
2. Avoid Jargon
Although you want your home listing to capture buyers' attention, you should try to avoid jargon. Otherwise, a buyer may be turned off by your home listing shortly after he or she starts to read it.
When it comes to crafting an effective home listing, keeping things concise and precise is ideal. If you use your home listing to engage and inform buyers, you may be able to differentiate your listing from others.
3. Add High-Resolution Images
Including high-resolution images of your home's interior and exterior may make a world of difference in your listing. These images allow you to highlight the size and beauty of your residence. As a result, they may lead to many property showings in the near future.
Of course, before you take pictures of your home, you may want to clean both inside and outside. Remove clutter from inside your home and ensure each room looks pristine prior to taking photographs for a property listing. Meanwhile, you should take photographs that show off your house's dazzling front lawn, spacious driveway and other stunning exterior features too.
For those who want to craft a home listing that garners buyers' attention, you may want to collaborate with a real estate agent as well. This housing market professional can offer tips and recommendations to help you prepare an effective property listing. Plus, he or she can help you promote your residence to dozens of prospective buyers and ensure you can streamline the property selling journey. Best of all, a real estate agent is ready to respond to your house selling concerns and questions at any time.
Ready to create an effective home listing? Use the aforementioned tips, and you can craft a house listing that will help you distinguish your residence from the competition.
An ambitious home seller may be better equipped than his or her rivals to enjoy a seamless property selling experience. In fact, this individual likely will go the extra mile to ensure buyers can learn about his or her house and make an informed purchase decision.
Believe it or not, becoming an ambitious home seller can be simple. Now, let's take a look at three tips to help you streamline the home selling journey.
1. Analyze the Housing Market
The local housing market may have major ramifications on the home selling journey. If you review real estate market data, however, you can differentiate a buyer's market from a seller's market. Then, you can map out your home selling journey accordingly.
Review the prices of available houses in your city or town that are similar to your own. Also, check out the prices of recently sold homes in your area and find out how long these residences were available before they sold. With this housing market data in hand, you can distinguish a buyer's market from a seller's market. Plus, you may be able to find innovative ways to differentiate your home from the competition.
2. Evaluate Your Home
Your home – like all other residences – has various strengths and weaknesses. If you perform a comprehensive home evaluation, you can identify your house's weaknesses and explore ways to transform them into strengths.
It may be helpful to schedule a home inspection prior to listing your residence. During an inspection, a property expert will walk through your home and identify any underlying house issues. He or she next will provide you with an inspection report that you can use to prioritize home repairs.
In addition, you may want to perform an appraisal. If you obtain an appraisal report, you can receive a property valuation that accounts for your house's condition and the current state of the housing market. You then can use this property valuation to establish an aggressive initial asking price for your home.
3. Work with a Real Estate Agent
A real estate agent understands the ins and outs of selling a home, regardless of the current housing market's conditions. He or she will help you promote your residence to the right groups of buyers and host home showings and open house events. Furthermore, a real estate agent will help you review any offers to purchase your residence and provide assorted house selling tips.
If you hire a real estate agent, you can receive lots of insights into the housing market that you may struggle to obtain elsewhere, too. Perhaps best of all, a real estate agent is prepared to respond to your home selling concerns and questions at any time.
For those who want to enjoy a successful home selling experience, it helps to prepare for the home selling journey. By using the aforementioned tips, you can become an ambitious home seller and quickly generate significant interest in your residence.
If you want to enjoy a successful home selling experience, it generally is helpful to establish a competitive initial asking price for your residence. With an aggressive price, you can stir up lots of interest in your home. As a result, you can increase the likelihood of a fast home sale.
Now, let's take a look at three tips to help you set a competitive initial asking price for your house.
1. Conduct a Home Appraisal
A home appraisal enables you to receive a property valuation. Then, you can use this valuation to determine how to price your house.
In addition, it often is beneficial to conduct a home inspection prior to listing a residence. An inspection allows you to receive insights into any home problems. Once you have a home inspection report in hand, you can prioritize house repairs and upgrades, improve your home and get the best price for your residence.
2. Evaluate the Local Housing Market
Take a look at the prices of available houses in your city or town that are similar to your residence. By doing so, you can establish a price range for comparable homes and use this information to decide how much to ask for your house.
Also, you may want to take a look at the prices of recently sold houses in your area and find out how long these residences were available before they sold. This housing market data can help you differentiate between a buyer's and seller's market.
3. Consult with a Real Estate Agent
Pricing a home can be difficult, particularly for those who are listing a residence for the first time. If you work with a real estate agent, however, you can receive in-depth house selling insights and ensure you are better equipped than other sellers to optimize your home sale profits.
A real estate agent is happy to help you set an initial asking price for your home that hits the mark with buyers. He or she first will learn about you and your home and create a custom property selling strategy. Next, a real estate agent will help you prepare your residence for the real estate market. And when you're ready to sell your house, a real estate agent will add your residence to the local housing market and promote your home to buyers.
Of course, a real estate agent provides lots of assistance throughout the home selling journey too. A real estate agent will offer honest, unbiased recommendations at each stage of the home selling journey. Best of all, he or she will respond to any of your home selling concerns and queries.
As you get set to enter the real estate market, you should consider how to price your residence. Thanks to the aforementioned tips, you can set a competitive initial asking price for your home. That way, you can generate significant interest in your house as soon as it becomes available.
After you receive an offer on your home, how should you respond? Ultimately, there are many questions for a home seller to consider before accepting a proposal, including:
1. What is my home worth?
Did you get your home appraised before you added it to the real estate market? If so, you may want to review a home offer in contrast to your home appraisal. This will give you a better idea about whether the offer is "fair" based on your home's condition.
If you have not received a home appraisal, there's no need to worry. In fact, there are many ways to assess your home to determine whether to accept or decline a proposal.
Check out the prices of comparable residences in your city or town. This will enable you to see how these houses are priced and better understand how to proceed with an offer.
Also, review the prices of homes that recently sold in your area. With this information, you can learn about the current state of the housing market.
2. Are there any other offers to consider?
As a home seller, you'll likely have 24 to 48 hours to respond to an offer on your residence. But if you receive multiple offers at the same time, you'll want to evaluate these proposals in conjunction with one another.
Even if you receive two offers for the exact same price, these proposals may differ.
For example, a homebuyer who has financing in hand will be able to streamline the process of going from homebuyer to homeowner. On the other hand, a homebuyer who submits an offer without financing in hand may require additional time to secure a mortgage from a bank or credit union.
Take a close look at all of the offers on your home. Review these proposals with a fine-tooth comb, and you'll be able to make an informed decision.
3. Does this offer meet or exceed my expectations?
An offer on your home may fall short of your initial asking price, but this offer can still meet or surpass your expectations.
Consider what you hope to accomplish as a home seller as you review an offer.
For instance, if your goal is to sell your home as quickly as possible, you may be more inclined to accept one of the first offers you receive. Or, if you can afford to remain patient, you may want to take a wait-and-see approach to ensure you get an offer that matches or exceeds your initial asking price.
4. What will happen if I accept the offer?
After you accept an offer on your home, a homebuyer likely will want to complete a home inspection.
If the home inspection goes well, the homebuyer probably will proceed with his or her purchase. If it does not, you may need to complete home maintenance or repairs to finalize the purchase agreement.
Remember, if you accept an offer, there are still several steps that will need to be completed before you sell your house. With an expert real estate agent at your side, you'll know exactly what to expect at each stage of the home selling process.