Steps Involved in Selling a Home
Homeowners can sell their homes in one of two ways. Most homeowners use a broker. The broker lists the property for sale, helps establish the listing price, invites prospective buyers to see the home, helps review the condition of the home and what repairs might be needed, and helps negotiate the sales price. Real estate brokers should also help the buyer from the time of sale through the closing. Brokers usually get a percentage of the sales price, a commission, when the home closes.
Home sellers can also try to sell the home themselves in order to try to save the broker’s commission. Often, there is a tradeoff. The seller must do a lot of the work the broker would do – so the tradeoff is time and effort versus money.
In either event, broker or no-broker, sellers should consult with experienced Florida real estate lawyers when selling a home.
Understand how much you’ll really get for selling a home
Homebuyers should begin by examining what other homes in similar condition in their neighborhood are selling for. Home sellers also need to understand that the listing price is not the starting point for calculating their revenue. The listing price just starts the negotiation process. The starting point for valuing the home sale revenue is the sales price set forth in a sales agreement
There are many costs that will need to then be deducted including:
• The broker’s commission if a broker is hired
• The closing costs
• The costs of any repairs
• Any additional agreed upon costs the seller may assume
Establishing the listing price
Setting a listing price is what starts the negotiation process when selling a home. Keep in mind that when you review comparable properties, potential buyers will review the comparable homes in your neighborhood and geographical area too.
Setting a listing price also depends on the current state of the economy. Additionally, the time of the year can make a big difference. If you have a home that’s built for children, keep in mind that buyers will want to move in so that their own children can start the new year in their new school. Parents prefer to keep their children in the same location for each school year. This means that many buyers want to be able to move in before September but after May.
Additional sales factors
Homes may need to be sold faster if the seller needs to move. If the owners die, then the seller’s heirs may want to hurry the sale so they can get their inheritance.
Steps to take when showing your house, condo, or other property when selling a home
There are steps sellers should take to encourage buyers to want to pay a higher price for your home. Sellers should
- Remove any clutter. Buyers like to imagine what their home will look like when they move in. This includes the inside and outside of the home
- Make the home look nice. While, sellers may want to avoid spending too much money, small things can mean a much better first impression. This includes fixing items that are a minimal cost. It includes mowing the lawn. It also includes washing the floors, vacuuming the carpets, and polishing your furniture
- Keep your papers and valuable secure. People will be walking through your home. Your private documents and jewelry should be locked up or kept in a safe space.
Many buyers make up their mind in their first minute when the walk into your home. First impress matter a lot.
The negotiation process
Sellers should have a game plan before they even list the property. The plan should include how long they can afford to keep the property on the market before they come to a decision. They should review with the broker or an appraiser how much they really can expect buyers to offer. The plan should include a strategy for how much they lower the listing price and how much they’ll counter any offer.
Signing the sales agreement
Once an oral agreement is made about selling a home, a sales agreement should be prepared and signed by buyers and sellers. The sales agreement should set the date for obtaining a mortgage, the date for the settlement, the amount of the deposit, what conditions can mean the buyer forfeits the deposit, mortgage contingencies, and other matters. Whether the home is being sold :as is” or not should be clear. The contract should be reviewed by a Florida home attorney Before you sign it.
Getting ready for the closing
Buyers will normally request the right to inspect your property before the closing. They’ll also request a title report to see if there are any open claims against your home. They’ll probably also request a survey. Sellers need to be prepared to address any issues that may arise. For example, they normally need to get in touch with their utility companies to let them know the seller is moving. The title company will want payoff statements for any mortgage loan and any other bills that are due when you are selling a home.
Going to the settlement closing
Sellers need to be at the closing. Much of the paperwork is signed is signed by the buyer. Sellers will need to review the settlement sheet with their lawyer and sign the settlement sheet. They may need to sign other documents before the settlement can go through. In addition to any payoffs for debts, the settlement sheet will include a broker’s commission, tax adjustments, recording fees, and other charges your lawyer can explain.