There is no doubt that owning a house is a dream that we all have and at the same time it is also a necessity that needs to be met. But if you are on the other side of the spectrum, selling a house can also be a necessity and can mean a lot of things. Maybe you want to move out to a new place, maybe your kids are all grown-ups now and you don’t need the extra space or simply you just want some change. Whatever your reason may be, selling your house can be a sad experience, and needless to say, it can be challenging. But don’t you worry, in this article, we will discuss the entire process of how to sell your house.
You have to be careful about a lot of things otherwise you may be left wondering “what did I do wrong”? So before you opt for such a decision, you must know when and how to sell your house. To that end, here is a step-by-step guide to walk you through the entire process.
When to sell your house
The most important question that might be lurking in your mind is “am I ready to sell my house”? After all, this is the most expensive possession you own. But don’t worry, we will walk you through the entire process. And hopefully, you will be able to determine when to sell your house.
Take home equity into account
One of the most important, if not the most important, thing when it comes to selling your house is to consider home equity. If you take a mortgage to purchase your property, the lending institution will burden you with interest on the home until you repay the loan. Home equity is the portion of the current value of the home that the owner currently possesses. To put it simply, your home’s equity is the current value of your home minus the mortgage balance.
That means, negative equity should be avoided and it will not be wise to sell your house at that point. At the very least you want to have enough equity to pay off the current mortgage and to have enough left over for a 20-30% down payment on your next home.
No debt and have cash in the bank
It is as straightforward as it sounds. If you are out of debt and have enough cash in your emergency fund to back you up for several years, it is safe to say that you are financially secure to purchase a new home again.
These are the two main aspects to consider when you are thinking of selling your house. Other than that you also have to consider other costs that are associated with a home sale such as staging cost, professional home inspection cost, so on, and so forth. Also, a little bit of understanding is also very necessary when it comes to selling a house.
How to sell your house
So how do you do it? There are uncountable ways you can make a sale. But there are some fundamentals that should be brought into the light. That being said, here are the things that need to be taken care of before you put your house on the market.
Inspect your house
Just like in the case of renting a house, a proper home inspection is very important before putting your house up for sale. It will expose you to a lot of things that need close attention. For most home buyers it is pretty common to do an overall inspection before making an offer. However, this is equally important for a seller. This will help avoid costly expenses later on which in some cases can lead you to the court.
And most importantly, doing so will help you build a more strong relationship with potential buyers. Since you are taking care of all the issues before the buyers even make the call, it will lead you to build a more stable relationship with them. Otherwise, if buyers find out any issue themselves, they can demand big changes and replacements that are just unreasonable or just simply walk away from the property. So do make sure you inspect the property properly to stay on top of things.
Fix that which needs to be fixed
After the inspection, chances are you will have a detailed report about the condition of the property and what needs to be repaired and maintained. So the next thing is to address those issues and fix them. Now you have two options in hand – one, price the property below market value or, two, price it according to the market but offer the buyer a credit to fix present issues. If the issues seem negligible and you think you can get away without disclosing those aspects, you will be making a huge mistake. Because these issues will be uncovered during the buyer’s inspection.
So if you want to make a sale fast, fix the issues that have been reported during the inspection. You will go one step ahead of the process of ‘how to sell your house’. But do not go overboard with the repairs. Instead, focus on critical issues such as roof leaks, water dampening problems, cracked walls, faulty ventilation systems (if any), and so on. Also, put extra emphasis on the bathroom and kitchen areas as these usually yield the highest return on investment. New light fixtures, new faucets, new handlebars or grab bars in your bathroom, doorknobs, or just a fresh coat of paint can do wonders. Other than these, there might be some elements in your house that can use a little polishing or replacement.
Stage the house
After all the inspection and fixing, it is now time to set the stage. But before you begin, one very important thing that needs to be taken into consideration is cleanliness. Considering all things that your prospective buyers can do to determine the condition of the house, you should keep your house neat. That is to say, prepare for a judgemental mindset.
Now, there are key rooms to focus on when it comes to setting the stage. Your kitchen and bathroom may play a very crucial role in this. Also, pay close attention to your master bedroom. The goal is to make them feel like they are already home. That is why it is important that you set the stage according to the viewer’s perspective. Get a professional cleaner if you have to. And if it is a furnished home, hire a professional stager if you can. Doing so will keep you several steps ahead of the home selling process.
Setting the asking price
Speaking of how to sell your house, setting an asking price that is more in line with the current market value is key. That is why a competitive market analysis is crucial. There are many things such as the sentimental value that are associated with a house, lack of proper real estate market knowledge, and an “if others can sell it at this price why can’t I?” mentality can lead you to set a price that is not feasible. And pricing too high can cause the house to sit on the market for a prolonged period of time and your house could possibly depreciate in value during that wait.
On the other hand, if you don’t price your house right or underestimate the value of the property, it can lead you to incur a huge loss. That is why when setting the price, think rationally and objectively rather than letting your sentiments interfere. Now one smart way to calculate an accurate property right value is to compare it to similar properties that have been sold recently or you can head over to a property listing site and take a look at all the listings similar to the property that you own.
Listing and marketing
Now it’s time to jot down the list of features of your house and prepare your property listing. This should include all the important information including facts such as the total area of the house, number of bedrooms and bathrooms, asking price, the address of your property and neighborhood, etc.
Don’t forget about the photos. As it turns out, most people nowadays start searching their property online and the first thing that attracts them are available pictures. So put extra emphasis on photos when listing your property online for sale. Photos can determine whether someone will pick the property for an appointment or skip to the next property. That is why it is recommended to use the help of a professional photographer who specializes in real estate photography. Take high-quality photos of your interior including bedrooms, bathrooms, living area, and 2-3 shots of the exterior from different angles.
Also, don’t forget to include a catchy description of your house highlighting all its best features. While photos can draw attention, a well-crafted description of your house can actually make all the points clear.
So how do you market your property? Since most people use the internet as their first source of information, market your property on different social media platforms including Facebook, Youtube, Twitter can draw huge traffic if done right. You can also use the traditional method of hanging a “For Sale” sign or print media including newspapers, magazines, and flyers to reach buyers.
Property viewing
Moving forward to the next step of how to sell your house is the property tour of your house. This is one of the most crucial stages of the property selling process. Do it right and you can find yourself a buyer. But there are certain things that you have to be very careful about. For example, you have to maintain professional communication with your clients. And during the viewing process, presentation is key. So that will need your extra attention. Devote yourself to the clients. Listen and answer all the questions. If that goes right, there is no need to worry.
Paperwork and closing
We now have arrived at the most critical stage of the home selling process. Paperwork has always been a complicated task. You have to be very careful about the legal documents. Otherwise, if buyers find out something is wrong during the property’s ownership validation process, they will simply back out. So prepare all the documents in advance so that you don’t have to go through the legal hassle. Also, be prepared for any unexpected issue to come up during this stage. Work your way through the process, take legal advice from experts if you have to. Now all that is left is to sign the documents and be done with it. The money will be transferred into your account and the sale will close.
Complete all the steps correctly and you should find yourself a buyer at this point. However, if it feels challenging to you, that is because it is. Doing all these things by yourself can make you go through a lot of trouble. And not to mention, you also have to give up a considerable amount of time in the process.
On the other hand, if you bring a real estate solution provider such as Bproperty into the scenario, it can rid you off of all the trouble and can save you a lot of your valuable time. Our specialized team of professionals can handle everything right down to professional property viewing. After registering your property on our site, a team of experts will come and inspect the house and make a detailed report. Next, they will address those issues and let the owner take action accordingly. As an owner, all you need to do is to be present where it is necessary and sign documents. Just the way it should be.
