When it comes to selling your home, most guides and tips will always focus on the appearance and cosmetic features of the home. While having a nice upgraded kitchen and bathroom is important, there are other aspects that can be crucial as well. Here are 3 Tips for Selling Your Home
Tip 1 — The Price is Right
No, that’s not just the name of an entertaining game show that we all love to watch but one of the most important things when it comes to selling your home. It is important for a seller to know what is market value for their home. There are many ways you can obtain that information and we are going look at the choices.
- Consult a Real Estate Agent
- Order an Appraisal
Consult a Real Estate Agent
Speaking with a real estate consultant is the best way you can get a comp estimate of your property. Real Estate agents will use other properties listed and sold on the market to get an idea of market value. This can also be known as a Broker Price Opinion. How a real estate agent values your property will vary depending on individuals but it is important for you to not list with the person that provides you the highest value, but the most realistic value and information.
For example, my job as a real estate consultant isn’t about trying to help you justify a high list price. My job is to provide you with the data and information of the most realistic price of your home. You can use that information and agree on a price to list your home. In the end of the day, the house will only sell if a person is willing to pay the price you want for it. I only list properties if it makes sense for the seller.
Order an Appraisal
The appraisal is done by an appraiser who is licensed and certified to value properties mainly for the lenders, but if an owner wants to know what value their house would be in the eyes of a lender, I highly suggest ordering an appraisal. This is important because many deals are not done in cash. They will require a loan and the appraisal will justify the sales price of the home and if the lender will be willing to lend that amount on the property.
What you shouldn’t do!
Zillow “Zestimate” are not always accurate. There have been many cases where clients will say “My house is worth xxx on Zillow.” One thing that every seller should consider is that Zillow is not a real estate website, it is a marketing website that profits from selling leads to real estate agents. Yes, they have a built-in system to calculate their Zestimates but its base highly on inputted data from nonprofessionals or information pulled from the MLS. Most Real Estate associations have removed the direct syndication between the MLS and Zillow so most data from Zillow might be out of date, incorrect or missing.
Tip 2 — Know the Market
When you are selling your home, you should consider the time frame you are selling in. The two major markets for real estate is a buyer’s market or a seller’s market.
Buyer’s Market
When there are a lot of listing on the market and not enough buyers purchasing. This is a buyer’s market. High supply, low demand means the buyers have a lot more choices and can negotiate in their favor. Your house in these periods will sell slower and possibly for less value.
Seller’s Market
When there are very few listings on the market and plenty of buyers purchasing. This is a seller’s market. Low Supply, high demand means buyers are constantly competing over the few properties on the market. This can be in the sellers favor as buyers will bid each other up on these properties. In this period, your house will sell faster and possible for more value.
You should consult a real estate specialist to see what market you are currently in!
Tip 3 — Hire an agent
Many owners think they can do a FSBO (For Sale by owner), with sites such as Zillow for marketing and information, what can go wrong. In many cases a lot of things. The reason you are not hiring an agent is because you probably don’t want to pay the x% commission. I have seen first hand from personal experience with FSBO’s that ended up getting 15% less for their property because they did not want to pay a commission or hire a professional. To be honest, if I was the owner I would have paid 6% and saved an addition 7%.
The reason for this is because many times when you list as a FSBO. Real Estate investors like myself and many others will farm these areas for profitable deals. If you start negotiating with these people as a FSBO, you should know a thing or two otherwise, you might end up falling short.
There are plenty of real estate consultants in any town. Most important thing is finding an agent that is knowledgeable and one that you can communicate with. Working with a real estate consultant is the same idea as consulting an attorney regarding legal advice. In the end of the day, hiring a good agent can help you save a lot of trouble, headaches, and money.
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