In today’s competitive real estate marketplace, selling your home can be a very difficult task. Homebuyers have many options to choose from, including from foreclosures and short sales, which will most likely offer lower prices than most home sellers are willing to offer. Properly determining a sales offer price, advertising the real estate, and preparing one’s home for sale is vital in finding a buyer and achieving the best sales price.
The first step in selling one’s home is preparing the home for sale. Location, which can’t be changed, and a home’s physical appearance are the two largest factors when potential buyers consider between homes. Improving your home’s physical appearance does not have to be expensive or include extremely time consuming overhauls. Simply clean up your home by trimming the front lawn and bushes, complete any undone projects, fill in and holes in walls, and make sure your home is spotlessly clean.
After preparing a home for sale, the next step is determining the minimum sales point. The first thing one should consider is what their outstanding mortgage balance is and whether they can bring additional funds to closing if the proceeds from sale are less than the mortgage balance. Selling commissions and closing costs will often cost 7% or more of the sales price. So if one was to sell a home for $200,000, the proceeds from sale would only be $186,000 after $14,000 of commissions and closing costs. If the home seller has a loan balance above $186,000, they will need to bring funds to closing.
The next step should be to determine a fair sales point. The best way to determine this is to go online or ask around the neighborhood what recent sales have gone for, and for what current homes are marketing for. Based on that information, one should be able to determine what they can sell their home for.
After getting an idea of what the home can sell for and determining if the sales price is feasible, the next step is considering hiring a real estate agent. An agent will advertise the home on the agent’s website, place advertisements online, in newspapers, and place for sale signs in the homes front lawn. The agent may also provide more insight into sales price and how to market the home. Real Estate agents will definitely provide more exposure and are free until the home sells, but will take a large commission off the purchase price.
Another to avoid sales commissions is to sell the home yourself. A broker will still need to be hired to complete the transaction, but will be much cheaper. There are many options to market the home including placing advertisements online and in newspapers, holding open houses, and passing out flyers.