How a Home Seller’s Checklist Can Keep You Out of Trouble?
July 26, 2017
Planning to sell a house? Read this guide to get started in the game of real estate. Since you are selling, I can assume, it is not your first time dealing with property and an agent. You have already bought a home, and now it is your second turn, and you are trying to understand the other side of the coin.
Selling a home takes time and effort. You have to complete various jobs. The activity begins with an inspection tour and ends with choosing a customer. There are multiple steps between these two tasks and do not assume that everything will go smoothly.
This article is not an illustration of the actual selling process; rather it gives you the expert checklist to help you sell your house quickly and without trouble.
Prepare to Sell Your Home
In this step, you need to sell your current residence and find a new one for yourself. So this phase requires you to move out and settle into a new place.
What is your plan here? Will you buy first or will you sell first?
Write down the answer because it will determine the sales process for next six months.
Read About Your Home
Did you think you know all details about your property? Surprisingly, the answer is no. Human mind forgets things at an incredible rate. So, you should better read your mortgage documents and see how much you owe on the home and how much has been paid.
Note down the answers to these questions:
- Which year was your house built?
- When did you renovate your home?
- What is the condition of roof and foundation? If 25 years have passed since construction, then you will need to replace the roof, and sometimes the plumbing structure must be updated before you can sell the home.
Call a local inspection team and have them inspect your house in detail. The inspection team will reveal any structural damages in your home. The home inspection is mandatory because the buyers can walk away at the last moment if they find major flaws in the foundation. Furthermore, the mortgage approval also demands that the property in question should pass the FHA inspection test.
Understand the Market
Would you like to sell your home quickly and for the best price? Then you must have a good understanding of the market conditions. Here is your checklist:
- Partner with a realtor and get all the details about the local economy and housing market.
- Surf the internet and take a note of current homes selling in the area.
- Check: How other homes are selling? What are the average days on the market?
- Compare the listing price vs. selling price.
- Check the status of housing inventory
Expenses
Selling a house takes money and effort. This section talks about the common costs and expenses you will encounter during the process:
- Repair & Renovation Cost
- Realtor Commissions
- Home Inspection Fees
- Marketing Expenses (FSBO Only)
- Moving Costs
- Closing Costs
Price Your Home
Now we are moving towards one of the most important aspects of selling a property. You want to set a reasonable price that will attract quality bids. Real estate agents use two strategies to price a home. They will either list a property above the market value and then they reduce the price to match offers. Another strategy is to set a lower price that will create a bidding war, and ultimately you end up selling your home above the market value.
Which strategy will you choose? The answer often depends on the market inventory. In a seller’s market, most well-renovated homes will sell above the market price. You can also choose a middle-way price and close at that price.
Here is your checklist:
- Write down an ideal price for your home.
- Subtract the taxes, moving costs, and renovation expenses.
- Consider the other expenses and then establish a minimum base price for your home. That will be the minimum amount you will accept for your home.
- Anything more than the base price will be considered a profit.
Accept or Reject an Offer
It is an exciting feeling when you sit and decide which is the best offer for your home. Before you start celebrating because you received too many offers, you should read this checklist:
- Read the offer contingencies. Is the buyer asking you to make out-of-scope repairs?
- Is their offer contingent upon the sale of their other property?
- How much money is deposited as the earnest deposit? What will be the down payment?
- What is the closing duration?
- Are you getting an all-cash offer?
- Is the offer under consideration represents a legitimate buyer? Stay away from everyone who will back off at the last moment.