With our mortgage rates continuing to slowly taper down towards the 6% benchmark, realtors are reporting an increasing volume of inquiries from owners now thinking of selling.
Most Americans spend between five to seven years in their home before upgrading to their next property. However, the high interest rate environment since Covid has forced many to delay plans to re-enter the market.
If it’s been the best part of a decade since you transacted, you’d be forgiven for forgetting all the twists and turns of selling a home.
As an experienced agent, I understand how owners can get confused about the process and the order in which you need to get each task completed.
Of course, a great agent will coach you through the whole journey – and I’d be happy to assist you.
Here are the basic steps for selling your home:
Check your motivation – Why are you selling? It seems like a crazy question, but understanding your motivation will help you plan for the future. Remorse at selling your old property should be avoided at all costs. So, let’s check in on why you’re selling.
Money matters – Talk to your lender about your capacity to buy your next home, especially if you are intending to upsize. Confirm the equity in your existing loan, and the amount your lender is prepared to lend you to make the next purchase. Ask about any conditions and penalties for changing your current loan.
Repair budget – You’ll probably need to spend a little time and money to prepare the property to maximize its value. It’s not unusual to spend a few thousand dollars to get all the work done. The investment will be worthwhile. Well-presented homes always attract buyer interest.
Your timing – Don’t let anyone tell you there’s a bad time to sell. There’s no such thing as a bad time. Instead, time your move to suit your personal situation. We have achieved great sales outcomes in late fall and winter. Don’t get hung up on the timing question.
Market sentiment – Timing the market to maximize profits isn’t a real strategy. It can take six weeks to close a deal, so it’s not like selling shares. Remember, you are not only selling but buying, too. If you wait for higher prices to arrive, you’ll pay more for your next property. At best, that’s a zero-sum-game.
Choose an agent – Seek personal recommendations and interview a minimum of three agents. Research says that trying to sell the property on your own will harm the ultimate sales price. Only 7% of people do it. Go with the 93% – they can’t be wrong!
Fix it up – Complete only those repairs that will hurt the sale price. Don’t overspend because you won’t be enjoying the benefits. Order a home inspection as this will highlight issues a prospective buyer might raise.
Price strategically – Work with your agent to price your home. If you ask for too much, buyers will turn away. A home on the market for more than six weeks becomes stale. Buyers think it’s either overpriced or there’s something wrong with it. Ultimately, you’ll reduce the price.
Stage your home – Consider hiring a home stager to ensure a five-star presentation. Experience suggests that while this can cost more than $2,000, you’ll get a return on your investment.
Late hurdles – Even after you get your dream offer, the deal isn’t done. The buyer’s home inspection may raise issues, or their lender may object to the appraised value and refuse them a loan.
Your coach – Throughout the sales campaign, a high-quality agent will be with you, explaining every challenge, providing perspective and possible solutions. Ultimately, it will be your decision to accept an offer and proceed with the sale.