SELLERS GUIDE

It's time to research the market and make a few important decisions about your home sale. Most importantly, you’ll want to determine the right list price.

The list price represents the amount you as the seller want a buyer to pay for your home. An effective asking price considers several factors in the final sum, such as the state of the market in your area, the condition of the property and seasonality. For the most part, the comparative analysis your agent conducts will help you understand how much similar homes in the area are going for, and what you can reasonably expect to sell.

Your real estate agent can guide you to a number, but the final call rests in your hands.

• Seller’s Disclosure: Also known as a property disclosure, a Seller's Disclosure is a legal document that lists and explains any defects in the home. In an effort to protect buyers, these types of disclosures are required by most states.

 Similar to buying a house, the home selling process doesn’t happen overnight. However, knowing how long it takes to sell a house can help you set the right expectations and keep the sale moving as quickly as possible. Here are some of the most important factors at play:

• Time on the market: The longer your home stays on the market, the longer the entire sale process will take. If your home has been listed for a while without any bites, you may want to budget even more time into your schedule. Buyers may begin to assume there are problems with a house that’s been listed for longer than usual.
• Current market conditions: The difference between a buyer's market and a seller's marketcould mean the difference between a lengthy transaction and a fast turnaround. When the supply of homes exceeds demand from buyers, sellers will have to compete with other homes for sale, which could be challenging if you want to sell your house fast.
• Asking price: If buyers believe your home is overpriced, you’ll be hard-pressed to find a buyer right away. That’s why determining a reasonable price with your real estate agent is so important. If your home isn’t attracting any offers, consider returning to the drawing board and offering a more competitive list price.
• A low home appraisal: A home appraisal determines the fair market value of a piece of real estate. Home appraisals that are much lower than the agreed-upon price often slow down the selling process or jeopardize the transaction completely.

Although the timeline for selling a house is partly outside of your control, there are some tactics you can use to make your home more attractive to buyers. That begins with making the home as presentable as possible.

One of the most common questions first-time home sellers have is, "Should I renovate before I sell?" The answer to this depends on a few factors.

Renovations not only make a home look more enticing to potential buyers, but the right improvements can also increase your home value. Not all renovation projects are worth the cost, time and effort they’ll take to complete, however. Your real estate agent should be able to advise you on the top areas of focus that will help your property attract the best bid.

Once you’ve completed repairs, you’re ready to stage the house. Start with a top-to-bottom cleaning and spend time on both the interior and exterior. As you scrub down appliances and declutter each room, you should also depersonalize the space as much as possible. Removing unique decorations, painting over any rooms with loud wall colors and stowing away family portraits can all help the buyer imagine the home as their own.

Now that your home is in good shape, you’re ready to list the home and attract buyers. The real estate firm or agent who represents you is responsible for this step. Once they’ve shared your home on the multiple listing service – which is a database of every home currently for sale in the area – buyer’s agents will be able to view your property and some basic property details.

Advertising your home for sale helps your listing reach the right buyers and put you in the best position when it comes time to accept an offer. Even if you haven’t sold a house before, you’re likely familiar with open houses, “For Sale” signs in the front yard and other traditional marketing tactics. Our team will also ensure you are on multiple online platforms such as HAR and all social media platforms. Showcase with professional photography and feature all the main highlights of the home. Advertise on HAR, Facebook (business page, multiple local real estate groups, Facebook ads), Instagram, TikTok, Local Networking Groups, company database (around 10k). and open houses.  

With the right marketing strategy in place, you should begin to see offers roll in. Next, you’ll have to choose the right buyer and offer.

For many sellers, choosing which offer to accept is pretty simple, with the home usually going to the highest bidder. But there are a few other factors you should weigh beyond price. Are there any cash offers on the table? Or, is the buyer applying for a loan, and do they have a pre-approval or just a pre-qualification? Is the buyer’s offer attached to any contingencies and what contingencies are they willing to waive? Do the buyer’s proposed negotiations align with what you need from the deal?

With these questions in mind, you’re better prepared to accept the best offer all-around and move toward closing.

Selling comes with a number of expenses that you’re responsible for paying. Your realtor can give you a rough breakdown and the title company will give you a full breakdown a minimum of 3 days before you go to the closing table. Some examples are lender’s and owner’s title policy, an appraisal, recording and settlement fees, a survey cost and transfer tax.

Closing Costs

Although buyers and sellers pay different fees at closing, both parties are responsible for closing costs as they finalize the transaction. Closing costs for the seller usually include attorney fees, escrow fees, outstanding HOA fees and property taxes up to the official closing date. You may also end up covering some additional closing costs on behalf of the buyer. Sellers often pay the real estate commissions for both the buyer’s and seller’s agents, which is around 5% – 6% of the total loan amount. As part of the offer negotiations, the buyer might ask you to pay some of their closing costs; this is called seller concessions.

Capital Gains Tax

If your home has increased in value more than $250,000 from the time you purchased the home to the time of your home sale, you should also keep the capital gains tax on your radar. Essentially, a capital gains tax is an expense you would pay on any asset that has appreciated in value. Many sellers will be exempt from paying a capital gains tax, though this does depend on your unique situation.

Moving Expenses

Even if you plan to recruit friends and family to help move you out, there’s a good chance that moving out of your home will cost you something. If the timing’s right and you can buy and sell at the same time, you can have your movers move everything in one fell swoop. But if there’s time between when you buy and when you sell, you’ll also need to budget in the costs of storing and relocating your belongings.

Closing on the sale comes with its fair share of paperwork, and it’s never a bad idea to begin preparing the documents that you’ll need to provide or sign.

• Closing Disclosure: Though the Closing Disclosure is presented mainly for the benefit of the buyer, you may also receive a copy if you’ve agreed to pay some or all of the buyer’s closing costs.
• Deed and transfer documents: Your deed is the document that allows you to transfer title to the home buyer. Along with other transfer documents, you’ll need to sign the deed to certify the transfer of ownership.
• Government ID: Both buyers and sellers should bring a photo ID to verify their identities while attending the closing.

With the rest of the process checked off, you’re ready for the final step – closing on the home. For home buyers, closing means attending the closing date. Sellers, on the other hand, are not always required to attend their closings. If you’ve already signed the necessary paperwork, certain states allow your attorney to represent your side of the transaction in your absence.

For sellers who have the opportunity, skipping out on the table closing presents both pros and cons. Sellers who don’t attend can avoid the risk of any final conflicts with the buyer, but some attorneys or agents may prefer for you to attend regardless. In the event that you do not attend, your attorney or agent should be granted power of attorney to sign any remaining documents on your behalf. Keep in mind that you may be required to attend closing if you’re planning on renting the house from the buyer through a lease-back agreement.

With closing completed on both the buyer’s and seller’s ends, you’ve successfully sold your home to its new owner.

The Bottom Line

Selling a home may seem stressful, but many sellers are rewarded with a new place to call home once they’ve handed their keys over to the new owners.