Selling a Home for the First Time
You found it, didn’t you? The house you wanted to call home, but couldn’t afford before…but now you can! How exciting! But before you willy-nilly list your home, you should check out the below steps that will help ensure a smooth and successful transaction. In this blog post, we’ll walk you through the home selling process from start to finish, and give you some tips and tricks on how to make it easier and - hopefully - more enjoyable. Let’s get started!
Step 1: Assess Your Readiness
Just like when you first purchased, the first step to selling a home is to make sure you’re ready, both financially and emotionally. Selling a home requires a lot of planning, preparation, decision-making, and closure. Honestly evaluate where you’re at in this decision by asking yourself some questions, such as:
Why do you want to sell your home? What are your goals and expectations?
How long have you lived in your home? How attached are you to it?
How much is your home worth? What is your equity and profit potential?
How is your local market? Is it a good time to sell?
Where will you go after you sell? Do you have a new home lined up?
These questions will help you determine if you’re ready to sell your home, and what kind of seller you are. If you’re not sure about any of these aspects, you may want to do some more research, consult with a financial advisor, or wait until you’re more prepared.
Step 2: Find a Real Estate Agent
The next step to selling a home is to find a real estate agent who can help you with your home sale and purchase. A real estate agent is a licensed professional who represents buyers or sellers in real estate transactions. A real estate agent can provide you with many benefits, such as:
They have access to the multiple listing service (MLS), which is a database of all the homes for sale in your area. They can help you price your home competitively, market your home effectively, and reach a large pool of potential buyers.
They have knowledge and experience in the local market, and can advise you on the best timing, strategy, and tactics to sell your home. They can also help you evaluate the condition, value, and potential of your home, and suggest any improvements or repairs that can boost your home’s appeal and attractiveness.
They have negotiation skills and expertise, and can help you handle the offers, counteroffers, and contingencies that come with selling a home. They can also help you with the paperwork, inspections, appraisals, and closing process, and make sure everything goes smoothly and according to the contract.
To find a real estate agent, you can ask for referrals from your friends, family, or coworkers who have sold or bought a home recently. You can also search online for agents in your area, and read their reviews, ratings, and testimonials. You can also interview several agents before you choose one, and ask them questions about their experience, credentials, communication style, and availability. Furthermore, you want to find an agent who is trustworthy, knowledgeable, responsive, and compatible with your personality and goals.
Step 3: Prep Your Home for Sale
The third step to selling a home is to prep your home for sale. This means making your home look its best for potential buyers, and fixing any issues or problems that might affect your home’s value or functionality. Prepping your home for sale can help you showcase your home’s best features, create a positive first impression, and appeal to a wider range of buyers. To prep your home for sale, you’ll need to do the following:
Declutter, depersonalize, and deep clean your home. This is the most basic and essential step to prep your home for sale. You want to remove any excess or personal items that might distract or turn off buyers, such as clutter, family photos, or knickknacks. You also want to make sure your home is spotless and smells fresh, so that buyers can see its true potential and feel comfortable. You can hire a professional cleaner or do it yourself, but make sure to pay attention to every detail, from the ceiling fans to the baseboards.
Make any necessary repairs or improvements. Buyers are looking for a home that is move-in ready and doesn’t require a lot of work or money to fix. That’s why you should take care of any minor or major issues that might affect your home’s value or functionality, such as leaky faucets, cracked tiles, or peeling paint. You can also make some cosmetic or strategic improvements that can boost your home’s appeal and attractiveness, such as painting the walls a neutral color, updating the lighting fixtures, or adding some curb appeal.
Stage your home to sell. Staging your home means arranging your furniture, accessories, and decor in a way that highlights your home’s best features, maximizes its space, and creates a warm and inviting atmosphere. You can hire a professional home stager or do it yourself, but make sure to follow some basic principles, such as removing any unnecessary or bulky furniture, adding some plants or flowers, and creating focal points in each room.
Step 4: Market Your Home Effectively
The fourth step to selling a home is to market your home effectively. If you have a real estate agent, they’ll take care of this for you, but if you’re attempting to sell on your own, this means making sure that your home gets the most exposure and attention from potential buyers, and that you showcase your home in the best possible way. To market your home effectively, you’ll need to do the following:
List your home on the MLS:
The MLS is the main source of information and leads for home buyers and agents. You’ll want to list your home on the MLS with the help of your agent, who can write a compelling description, take professional photos and videos, and provide all the relevant details and features of your home.
You’ll want to price your home competitively, based on the market value, the condition, and the demand of your home, as well as your goals and expectations. This is why it’s important to get a pre-listing appraisal!
Promote your home online:
The MLS is not the only place where buyers look for homes. You’ll also want to promote your home on other online platforms and channels, such as Zillow, Trulia, Realtor.com, social media, blogs, or podcasts. You can use these platforms to share your listing, photos, videos, and testimonials, and to generate some buzz and interest for your home.
Be sure to utilize online tools and features, such as Zillow 3D Home, to create virtual tours and walkthroughs of your home, and to allow buyers to view your home from anywhere and anytime.
Hold home showings and open houses:
While online tools can give buyers a lot of information and insight, nothing beats seeing a home in person. You’ll want to hold home showings and open houses, where you invite buyers and agents to visit and view your home.
You can schedule home showings with individual buyers or agents, who will contact you or your agent to arrange a time and date. Furthermore, you can also hold open houses, which are events where you or your agent invite anyone to view your home without an appointment.
When you hold home showings and open houses, you’ll want to make sure your home is clean, tidy, and staged, and that you or your agent are prepared to answer any questions and provide any information that buyers might have.
Step 5: Evaluate and Negotiate Offers
The fifth step to selling a home is to evaluate and negotiate offers. This is where you receive and review the offers that buyers make for your home, and decide whether to accept, reject, or counter them. Evaluating and negotiating offers can be tricky and stressful, but also rewarding and satisfying. To evaluate and negotiate offers, you’ll need to do the following:
Review the offer details. An offer is a formal proposal that states how much the buyer is willing to pay for your home, and under what terms and conditions. An offer can include the following elements:
The offer price: This is the amount of money that the buyer is offering to pay for your home. You’ll want to compare the offer price to the market value, the condition, and the demand of your home, as well as your goals and expectations.
The earnest money deposit: This is a sum of money that the buyer puts down as a sign of good faith and commitment when they make an offer. The earnest money deposit is typically 1% to 3% of the offer price, and it’s held in an escrow account until the closing. The earnest money deposit is usually applied to the buyer’s down payment or closing costs, or refunded to the buyer if the deal falls through due to a contingency or a breach of contract by the seller.
The contingencies: These are conditions that must be met before the sale can be finalized. Contingencies are meant to protect the buyer, and give them the right to back out of the deal without losing their earnest money deposit if certain things don’t go as planned. Common contingencies include financing, appraisal, inspection, title, and sale of current home.
The closing date: This is the date when the sale is completed and the ownership of the home is transferred from the seller to the buyer. The closing date is usually 30 to 60 days after the offer is accepted, depending on the contingencies and the preferences of both parties.
The closing costs: The closing costs encompass a variety of fees and expenses that are incurred by both the seller and the buyer as part of the real estate transaction process.
This is not a full, comprehensive guide for selling your home, but we hope it, at the very least, helped you learn where to start, and what to expect from the process. From all of us here at Impact Valuation Group, congratulations on making this monumental decision to sell! For a free service quote for your pre-listing appraisal, click the button below:
