If you're thinking of selling your home, it's smart to prepare a home selling plan before you start making repairs or marking a date on your calendar for an open house. Prepare your property, making repairs if necessary. Interview real estate agents and be open to suggestions for a listing price.
Of course, you want the most money you can get for the property, but that might not happen if you make costly home selling mistakes along the way. Unsure of where to start? Here are steps you can take to make your home sale a success.
- Call at least three neighborhood specialists before you choose an agent, and ask them how they plan to market your home.
- Prepare your home for the market by cleaning and staging it, but don't make any repairs unless there are obvious maintenance issues or opportunities to increase the resale value.
- Once your home is ready to sell, you need to decide on an asking price, calculate potential profits, and—if you plan on buying a new home—find a lender.
Consider Your Motivation
Explore your reasons for selling. Maybe this isn't the ideal time for you to sell if you aren't really committed. Perhaps the current market isn't ideal.
Try comparing the pros and cons—staying a while longer versus selling right now—in a written list to determine if you're making the right move. Talk to trusted professionals and gather opinions.
Call Real Estate Agents
Interview real estate agents and talk to at least three neighborhood specialists. Ask each listing agent to present a comprehensive marketing plan that explains what they'll do to market your home. Ask the agents to prepare comparative market analyses for you so you have an idea of home values in your area.
Prepare Your Home for Sale
Compare suggestions and consider accepting the most sound advice. In general, you'll want to remove any bulky, excess, or worn-out furniture. Stick extra stuff in the garage or a private storage unit, or just throw it out if it's in really bad shape. Give the place a good, deep cleaning. Hire a professional if necessary.
Decide Whether to Make Repairs
Not all resale repairs will pay off, so calculate the potential return on your investment if you're tempted to spend money on repairs. Kitchen and bathroom improvements tend to provide the best returns. Ask for professional guidance, or you might spend more on things you don't need to fix.
Although you don't want to spend a lot of money making improvements, you do want to repair obvious maintenance issues.
Stage Your Home
Home staging is the art of presenting your home in a way that gives potential buyers that warm, fuzzy, I-want-to-live-here feeling. You can hire a professional stager, ask your agent to help stage, or stage your place yourself, but you'll almost certainly get more for your home if you address this issue.
Move furniture—what's left after you got rid of the bulky stuff—to make rooms look larger or cozier. Add throw rugs, pillows, or artwork in colors that tend to elicit a positive psychological response. Get the lighting just right. And don't forget the exterior. Add a few potted plants or lay down some fresh mulch so your house is warm and welcoming.
Take pictures or hire a professional photographer to do it for you when everything is neat, clean, and attractive. They'll know the tricks of the trade to make rooms look larger and brighter, and quality photos of your home that are posted in the right places can go a long way toward bringing in buyers.
Decide on How to Price Your Home
Don't select an agent based on the sales price they suggest. Some will try to overbid each other to get the listing. And do not overprice.
Homes that are overpriced often sell for less than market value, if they sell at all. Would you want to pay $25,000 more for a similar home in the same neighborhood?
Review those comparative market analyses you asked for, and look into other nearby homes that are on the market. You might even consider getting a professional appraisal so you have a firm, unbiased opinion as to what your home is really worth.
Compare Net Profits
Many agents will prepare two net sheets for sellers, one with a low price and one with a high price. This way, sellers can be prepared for the worst and hope for the best. If the lowest net price will allow you to buy the new home you want, it's time to find financing and get preapproved.
Consider Selling Before Buying
Selling your current home before buying a new one is almost always more profitable—even if it means renting for a while.
Find a Lender
If you're planning to buy a home in tandem with selling your home, start by calling your existing lender to find out your pay-off amount. You should also order a beneficiary statement. Then check out new mortgage offers from lending institutions and credit unions.
Ask for an estimate of costs. Compare rates and fees. You might want to ask your agent for referrals to mortgage brokers because they often have more flexibility to discount rates.
Make sure you're comfortable with your loan officer and that they have plenty of experience. Get a loan preapproval letter so you know how much of a mortgage you qualify for. Keep in mind that you don't have to apply for the maximum mortgage you're approved for. A lower mortgage payment might make you more comfortable in the long run. Compare loan types and choose wisely.