You have made the decision to sell your home, but you are floundering when it comes to having a plan in place? Before you set up an open house or even start the cleaning process, it is imperative you have a plan, so you can stay on track.
Without a plan for selling your home, you will likely find yourself feeling stressed and overwhelmed. To save you the headache and hassle of selling your home, we have put together this definitive guide to assist you in creating a plan. Tackling each step will be much easier with a plan in place and will help you to avoid losing focus and making mistakes which could cost you in the long run.
Whether you have made up your mind or are still considering your options, this guide to planning your home sale will offer the insight you need, so you can take the right steps to protect your interests and get the most for your home. So, before you go stick that “For Sale” sign in the yard, be sure you read further.
Make Sure You Are Fully Motivated
Did you open your eyes one day and look around and find yourself tired of the same old house? Are your neighbors getting on your nerves? Before you make a final decision and put your home on the market, it is wise to truly scrutinize your reasons for wanting to sell. If you are not fully vested, you are likely to become disappointed in the outcome.
To find out if you are truly ready to sell, make sure to weigh the pros and cons. Research your options and make a decision based on the facts rather than your feelings, because feelings can change. Take time to think about it before you fully make up your mind.
Should You Begin Looking for a New Home Right Away?
Most homeowners sell their homes so they can buy new ones. Whether they are downsizing or have grown out of their current home, their agenda is to purchase a new home as soon as possible. Although you are likely going to be tempted to start looking for a new place right away, real estate agents advise against it.
The home selling process is unpredictable and can sometimes be lengthier than a seller would like. What happens if you find the perfect home, only to discover it ends up getting sold before you are able to come up with the money?
Although you should not begin the search for your dream home just yet, there are some things to consider regarding your next residence. One of the first things to do is to research home prices in your area or the area you want to move to. Research older home prices versus new home construction. In your research, you may decide selling your home is not the best financial decision. The more armed you are with information, the better equipped you will be to make a sound decision that will not lead to regrets later.
Once you have truly made up your mind to sell your home and know this is your best option, there are some steps you will need to take to make sure you are properly progressing towards your final goal – selling your home as quickly as possible.
Start Contacting Real Estate Agents
Yes, you can sell your home without them, but do you really want to? According to Time Money around 90% of home sellers hire a real estate agent to help them in the process. Selling a home is not easy, especially when you go it alone. It takes knowledge and skill to properly price a home, market, and negotiate with potential buyers. This is not something you are going to want to take on unless you have some prior knowledge.
You should plan on contacting at least three real estate professionals in your area before deciding on the one. Each agent should be willing to offer you a complete marketing plan and helpful advice on the many steps you will need to take to ensure your home sells as quickly as possible.
Make sure you do your homework and learn everything there is to know about the real estate agents before making a choice. A true real estate professional will be able to provide you with a strategy for selling your home and getting a fair price.
Once you have an agent, you will receive helpful advice and guidance on taking the next steps towards selling your home, so the process is as short as possible and ends up giving you the price you are hoping for.
1. Pricing Your Home
A real estate agent will prove instrumental in helping you price your home, but you should not go by the bid prices alone, because agents will do everything they can to compete. Pricing your home too high will lead to it becoming stagnant on the market. This is something you do not want.
There is a lot involved in properly pricing a home. Research is key to choosing the best price. Many home sellers worry about pricing their home too low, but this generally should not be a huge concern. Lower priced homes are naturally going to get more bids, so this drives up the price. Make sure to talk with your real estate agent regarding their method for pricing a home, so you will know what to expect.
2. Should You Repair?
The obvious answer is yes if the repairs are necessary. You do not want to spend tons of money on repairs because this only reduces your profit. Fix what has truly been neglected and then stop there. It may be wise to have a home inspection carried out, so you will gain expert advice on what needs your attention.
3. Preparing Your Home
One of the biggest worries homeowners have about selling their home is the preparation. Once again, a real estate agent will be helpful in this step, but the work will be on your shoulders. You should start by eliminating any clutter. Bulky, excess furniture will only make the home look smaller and cramped which is something buyers do not want. The home should look lived-in, but it is time to minimize the furnishings and keep things simple.
4. Staging Your Home
If you have ever watched any real estate shows, you have likely heard the term “staging.” This simply means making your home attractive to buyers. It is not enough to thoroughly clean the home. Staging involves making your home look as big and bright as possible. It means making the home welcoming and “homey” for potential buyers. Your home not only needs to look inviting, but it should also smell inviting. Pets, smoking, and cooking odors are a big “no-no.” Most sellers are wise to hire their real estate agent or a professional stager to help them get their home perfectly ready for open house.
5. Learn About Your Net Profit
When a real estate agent prepares to put your home on the market, they are likely going to give you two possible net sheets. One sheet will offer the highest possible selling price and one the lowest. While you will be hoping your home will sell at the highest price, there is a good chance it might not. If you look at the lowest price and it still allows you to be able to afford the home you want, it is likely a good time to start looking for preapproved financing.
6. Get a Loan Pre-Approval Letter
While your home is on the market, it never hurts to go ahead and proceed towards getting financing for your new home. Finding the right lender is essential and will allow you to see how much you can be approved for before you start the process of searching for a new home.
Unless you own your home outright, you will need to first contact your current lender to discover your payoff amount. It is a good idea to ask for a beneficiary statement. While you are at it, you can check out offers from your current lender and search for new ones.
Be sure to compare rates and fees, so you are getting the best offer. Keep your options open through the selling process and then you can make the final decision on which lender you will choose to help you finance your new home.
There are many more steps involved in selling a home, should you choose to go through the process without a real estate agent. Yes, you will pay for the services of your agent, but most sellers find the process is much less stressful when an agent takes over all of the details from marketing, to negotiations, to closing.
You are now armed with a plan in place and can begin the process of selling your home with much less aggravation and time involved. Keep track of your progress and take things step by step, and you will soon be well on your way towards getting rid of your old home and moving into a new one.