Are you thinking about selling your home? Now is a great time to do so! In this current Seller’s Market, there are more buyers looking to purchase a house than there are homes on the market. Because demand is high, your house could potentially sell for much higher than the asking price. In this complete guide to selling your home, we’ll go over the entire process from start to finish so you know what to expect and what resources are at your disposal.
Deciding to Sell your Home
Making the decision to sell your home can be difficult, so first and foremost, be sure you are ready to let go of your home and move on to something new.
Second, consider your motivation for wanting to sell your home. Is it an issue of space or functionality? Would investing money into renovations solve the problems you’re experiencing, and if so, would that be better for you financially than getting a new mortgage?
You also will want to calculate how much equity you have in your home. If you owe more than your house is currently worth, it may be better to wait to sell. Similarly, make sure you can afford the costs associated with selling a home, such as repairs, staging, and/or the listing agent’s commission.
Finding the Right Real Estate Agent
When picking a listing agent to help you sell your home, it’s important to research the top realtors that specialize in helping people buy and sell homes in your neighborhood specifically. This ensures they have an in-depth understanding of the local market, including the value of other homes in your area and what makes the location desirable. A good realtor will have a proven track record of home sales with a fast turn-around time. Checking review aggregators like GoogleMyBusiness, Yelp, Zillow, and/or Facebook is also a great way of learning about other people’s experiences selling and/or buying their home with that particular agent. Be sure to ask what marketing plan they have in place for promoting your home.
At Petra Cephas, we work with the best realtors in New Jersey every day, and have an extensive network at our disposal. Contact us at 732-873-1365 to be connected to a realtor in your area who can help you sell your home for top dollar!
Deciding Timing and Pricing
Your real estate agent will be able to strategize the best time to officially put your home on the market. If you don’t have to plan the sale around starting a new job or buying a new home yourself, for example, consider selling your home during the spring and/or summer months. This is when the housing market is most busy since families typically want to be settled in a house before their kids go back to school in the fall.
Your realtor will also recommend what price to sell your home for. They determine this based largely on the condition of your home and the sale price of other houses in the neighborhood. A fair market price will help your home sell quickly, and in a competitive market, you will likely see many offers come in above what you’re asking.
Decluttering, Cleaning, & Staging
A key element of selling your home is making sure it is easy for potential buyers to envision the property as theirs. First, remove any personalized items from visibility. This includes family photos and anything with your family’s name on it (such as customized home décor). Next, declutter and ensure everything looks neat and organized. It may be worthwhile to temporarily invest in a storage unit while you are showing your home. Keeping every room as clutter-free as possible will help your home to look bigger. Similarly, it is important to maintain a clean environment, so be sure to keep up with dusting, vacuuming, and dishes.
Your real estate agent will give you advice on how to best set up your home to prepare for showings. They may have a home staging expert as part of their team to assist in setting up your home to show off its best features, or you can hire someone yourself. If you choose the DIY approach to staging your home, here are a few items to keep in mind:
Remove any personalized items from visibility. This includes family photos and anything with your family’s name on it (such as customized home décor)
Declutter and ensure everything looks neat and organized. It may be worthwhile to temporarily invest in a storage unit while you are showing your home. Keeping every room as clutter-free as possible will help your home look bigger.
Deep clean, and then maintain the cleanliness. Be sure to keep up with dusting, vacuuming, dishes, etc. Check for smudges on the windows, water rings on counters/tables, and dust bunnies on the floor.
Get rid of signs of pets by removing toys, litter boxes, food dishes, water bowls, and fur.
Increase lighting by replacing old light bulbs and keeping curtains/blinds open during showings.
Arrange your furniture in a way that would encourage people to converse with one another if they were sitting there. For example, point arm chairs and loveseats towards the main sofa rather than towards the TV
Re-paint any brightly-colored walls into more neutral colors
Update finishes like caulk and grout, strip wallpaper, and swap out worn/outdated hardware
Touch-up the exterior areas of your property. Mow the lawn, power-wash dirty siding, plant flowers, etc.
Professional stagers will often arrange things like throw pillows, chairs, and artwork in odd-numbered groups (3s, 5s, 7s) to add visual interest to symmetrical spaces
Set the dining table
Choose appropriate accents for rooms. For example, make sure clean towels are hung in the bathroom rather than one that is still wet from your morning shower.
Make rooms appear larger by adding mirrors, removing leaves from dining tables, etc.
If your home has an unusual floor plan, think about how you can highlight that element as something unique. For instance, you could demonstrate how an oddly-shaped corner offers extra storage space or space for a reading nook.
Set up extra rooms to look like they have a purpose, even if you don’t use them in the way you are displaying
Filling out Selling Disclosures
You are required by law to disclose information about your property. This prevents sellers from hiding things from potential buyers like known damages to the house. You will also disclose any repairs or upgrades you have made during your time as a homeowner. It is important to fill out this paperwork truthfully to avoid lawsuits. Generally, it is better to over-disclose than under-disclose. Doing so will prevent problems later in the selling process.
Showing your Home
Your realtor will host a weekend open house, which is important to get as many buyers interested in the property as quickly as possible. They might also host what’s known as a Broker’s Open, where realtors representing buyers will tour the home to see if it is a good fit for any of their clients. Some buyers may ask for private showings. Try to be as accommodating with scheduling as possible; you will be able to establish time frames with your realtor that do and do not work for private showings.
Reviewing Offers
When a buyer is interested in your home, they will work with their realtor to prepare an offer and send it to your realtor. Together, you will review all the offers that come in. Here is a list of items to consider when choosing which offer to accept:
Does the buyer have a pre-approval that shows proof of funds to purchase the home? Verify that they are qualified to make a down payment and cover any closing costs.
What is the deposit amount that the buyer will put into escrow?
Has the buyer put any contingencies in the offer contract? Contingencies of any type permit the buyer to back out of the transaction if the conditions are not met.
During this time, your agent will likely be negotiating with the buyer’s agent. Negotiations often take place between agents both before and after the offer is submitted.
Getting to the Closing Table
Before closing paperwork can be signed, a few other tasks must be completed. First, an appraisal will be conducted to make sure your home is worth what the buyer is going to be paying for it. Most mortgage lenders will require this before signing off on a loan. Unlike when you are holding showings of your property, you don’t need to clean before the appraisal.
Sometimes home inspections will also occur, which are different from the appraisal. Typically the only time this affects you as the seller is if a home inspection is included as a contingency in the buyer's contract. To avoid this, some real estate agents may recommend you order your own home inspection as you prepare to list your home, that way you have the results of the home inspection available to show interested buyers.
Once all buyer contingencies are resolved and released, the buyer and their agent will complete a final walkthrough of the property. This is not a contingency; it occurs a few days before closing simply for the buyer to verify that the home remains in the same condition as when they first toured.
Next, you’ll sign the final closing documents with a notary public present. Be prepared by bringing your legal photo ID and the account information of where you want the sale money wired. In the few days before closing, make sure you tie up any loose ends, such as those listed below:
Remove all items from your home that are not included in the sale. Usually anything attached to walls—like toilets and large kitchen appliances—will stay in the home.
Clean the house thoroughly, or get it professionally cleaned to give the new owners a fresh start.
Remove your name from being associated with utilities
Cancel your home insurance policy, or get it transferred to your new address
Have your mail forwarded to your new address
After the closing paperwork has been signed and notarized on the buyer’s side of the transaction, the mortgage company will send the total funds to an escrow company. Once the deed of the home is officially transferred to the new owner, your realtor will work with the escrow company to get your money to you via cashier’s check or wire transfer.
Conclusion
We hope that, having read this guide, you are able to move forward with selling your home with the confidence that comes with knowing what lies ahead. If any of this confused you, you’re not alone! Selling your home can be an overwhelming task. That’s why, to reiterate, it’s important to work with a realtor you trust, and who will handle the majority of the transaction on your behalf.
Do you need a recommendation for a top realtor in your neighborhood? Contact us today at 732-873-1365 and we can put you in touch with someone who can help you determine whether or not now is the right time for you to sell, and if it is, can make sure you get top-dollar for your home.