Your Search on How to Sell Your House Starts Here
If you’re thinking about selling your home, that usually means you have quite a few other things on your mind as well. Maybe you’re moving for your job or for school, both big changes whether good or bad. Maybe you’ve had a major life event of some sort – marriage, divorce, retirement, or the loss of someone close to you. Happy or sad, these are game-changers and emotions may still be running high.
You could be planning on moving as far away as possible – out of state, or even to another country. Maybe you’re upsizing, or downsizing. Your kids may be staying in the same school district and you’ll still be using the same grocery store, but you’ll be in a different place a few miles away from where you are now.
Whatever the situation, there are probably more things bouncing around in your mind (and heart) than you’re used to juggling. That’s OK. You’re going to do fine. This isn’t an article about how to sell your house the “absolute right way” or you’re going to fail and hate yourself forever and what’s wrong with you?!? It’s more of a how-to sell your house “friendly checklist of things to consider and helpful reminders of stuff you’ve probably thought of already (or would have eventually) and thoughts on your general mindset as you walk through what can be a very stressful event.”
With so much to take care of, and so many potential emotions and complications involved, sometimes it’s nice to have a list to help you get started.
Speaking of which…
1. Start a List – Like, NOW
If you’re like me, your belief in your ability to remember things is far more impressive than your actual ability to remember things – at least in a timely manner. I spend a lot of time thinking “I MEANT TO DO THAT!” Writing stuff down doesn’t guarantee everything will get done without any wrinkles, but it improves your odds considerably. If nothing else, you’ll be able to keep better track of the stuff you DO and DON’T get done.
Ideally, if you’re planning on selling your home seriously enough to be reading up on “how to sell your house,” you should do one better than a thorough list. It’s probably a good idea to prioritize and possibly delegate if that’s an option.
What needs to be done first?
What information should you gather?
What phone calls or web searches would you like to have done before your next steps?
If you’re doing this with a spouse or other trusted adult, who’s responsible for which parts, and on what sort of time frame?
The time you spend organizing and working through logistics will be worth it several times over. Plus, you’ll feel better. You know why? Because you have a list.
2. Realize It Will Be Emotional
Unless you flip houses for fun in your spare time, selling a home is likely to be an emotional experience. Even if you do flip houses, buying and selling isn’t always free from unexpected feelings – the rush is part of why some people do it. We all realize those home-flipping shows on HGTV aren’t completely realistic, but they’re not wrong about some of the passions, fears, and thrills that come with big money risks and rewards.
Most of us, though, buy homes to live in and sell them because we’re moving on to something else. Whether the reasons are good, bad, or somewhere in between, be prepared for feelings to rise and fall, or sometimes leap out at you at seemingly random times. Being prepared for this isn’t about preventing them, but owning them and accepting them as what they are.
If you had no emotions about your home or whatever major life change you’re in the middle of figuring out, you’d be seriously weird. OK, to be fair, I don’t actually know you, so you might be seriously weird anyway. The point is, feelings are normal. Don’t beat yourself up over them. At the same time, don’t let the emotions run the show. Feel what you gotta feel, but let your brain make the final call on logistics and timing and money and such. Do your homework, educate yourself on the process, and trust yourself to make the best calls you can at each step. That’s all any of us can do.
3. Hire A Good Real Estate Agent
I recently wrote a piece right here about finding a good agent. It won’t hurt my feelings if after you read it, you peruse a few other articles on the topic as well. I won’t go into great detail here other than to say that most people in most situations should buy and sell property through a local, qualified, experienced realtor.
There are exceptions. If you flip homes, for instance, as we mentioned above, you may have the process down, and you’re looking for places you can fix-up – not places you’ll be living in, at least not long term. If you’re selling to a family member and just need a real estate lawyer to help with the paperwork, you can probably skip the agent since you won’t actually be putting your home on the market.
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By and large, however, one of the most fundamental things you can do when you have real estate for sale and you’d like to get a fair price in a timely manner for as much as possible and avoid as many of the dozens of common pitfalls as you can along the way, start by bringing in someone whose profession is knowing how to sell your house – or at least how to help you sell your house.
Sure, technically you can learn to do almost anything they’d do for you. You can learn to pull up comparables and adjust based on the specifics of your home. You can learn when and how to hire inspectors or assessors, how to get your home listed online or in local periodicals. You can find professional stagers or photographers who know how to present your home in the best light. You can read up on the insane amount of paperwork involved and the closing process and liability and counter-offers and… and… and…
But why would you? Oh, you want to save that 5% - 6% commission on the sale? Fair enough. It’s just that on average, homes sold FSBO (“For Sale By Owner”) sold for an average of $80,000 less than those sold with a realtor’s assistance. That ought to just about cover that 6% you were worried about, yes?
4. Be Realistic
One of the biggest benefits of a good agent is that they’re willing to tell you what’s reasonable and what’s not when you’re setting your asking price. That doesn’t mean you can’t ask whatever you like, but your agent – who makes more when you sell for more and is thus on your side here – is usually a better estimator of what you’re likely to get. The housing market is always tricky, but it’s especially weird right now. Nationally, homes are selling rapidly and for rising prices, especially on new homes as the pandemic has increased construction costs and led to uncertain supply lines.
Mortgage rates are still low, but many people are still facing employment uncertainty and overall debt continues to rise. We just elected a new President, the virus is apparently heading into a winter surge of some sort, and I’m pretty sure someone along the way mentioned some “murder hornets” that will be visiting soon. It’s honestly anyone’s guess what the economy will be doing in the next twelve months. The housing market isn't the same everywhere. What is the same everywhere is that the market is... well, it's not the same. Anywhere.
That doesn’t mean you shouldn’t sell your home. It means it may sell for far more than you expect, or far less. You may have a bidding war by sundown the first day it’s on the market, or you may have trouble getting more than a nibble for months. Even if buyers are interested, financing falls through. Inspectors discover problems you didn’t anticipate. The expert you need to fix that one thing before you can show your home is scheduling about four months out these days and can’t work you in any sooner.
Take some deep breaths and don’t lose focus. You’ll get there, but it’s rare for things to go smoothly and quickly and perfectly all at the same time.
5. Fix Things That Need Fixing
Let’s distinguish between repairing or replacing items necessary to live safely and comfortably and meet local codes vs. remodeling or renovating in hopes your home will sell for more. The former is almost always a good idea; the latter can go either way.
The idea that people might want a “fixer-upper” they can get for less money then put tons of work into themselves is a bit overblown. Sure, there are folks out there who are into that sort of thing, but there are folks who do competitive “extreme ironing” as well. How many ad campaigns for spray starch have you noticed which rely on that segment of the public to keep products flying off the shelves?
By and large, people want a home that’s ready to move into and use from Day One. If they make major changes over time, they should be to personalize it, not to make it functional. This next part I say in complete love and respect.
Don’t even consider trying to hide or cover up genuine problems with your property in order to get your house sold more quickly or for more money.
That’s not how to sell your house. Even if the problem were somehow overlooked in the inspection and then the assessment (not likely either time), it will probably come back and bite you one way or the other. Plus, it’s just wrong.
If you’re not sure whether something needs to be fixed or replaced, you or your agent can arrange an inspection before you even put your house on the market. In addition to giving you more information upfront, you can avoid unpleasant surprises moving forward. Plus, it’s one more thing to make your home stand out from other options potential buyers may be viewing.
How Changes Impact the Value of Your Home
Remodeling or doing major cosmetic work, on the other hand, doesn’t always pay for itself in the sale price. If you’re going to be in the home for the next few years and want to make some changes, that’s great. Improvements will usually bump up the value of the home, and combined with your comfort and your family’s happiness, it may be worth putting in some time and money to remodel that bathroom or convert that basement into a living space. Just don’t spend $30,000 thinking it will automatically gain you $40,000 a month later when you put your home on the market. It doesn’t always work that way.
If you’d like a better idea of how much specific changes might impact the value or sale price of your home, you should check out the EquityMizer. It’s ridiculously easy to use and lets you know precisely how much equity your investment will add in order to make the best decision about how much you’re willing to spend and which changes make the most sense. Like everything here at Goalry, it’s not about telling you what to do with your own time and money. It’s about giving you as much useful information as possible so you can take more effective control of your financial world and make better decisions for yourself.
6. Control The Parts You Can Control
If you’ve spent any time home-shopping recently, or simply browsed homes for sale online, you’ve probably noticed how many people don’t do the basic things anyone can do in order to make their home look more attractive to buyers.
Declutter
Start by going through everything you own and getting rid of as much as possible. You don’t honestly want to pay to move all your old junk to your new place, do you? Have bags for trash, boxes for donations, and the third pile of stuff for a nice weekend garage sale if you wish. If your home is still full of stuff afterwards, consider pre-packing stuff you don’t need right away in order to reduce as much clutter as possible.
Make It Clean
Clean your home thoroughly, or hire a professional service to clean it for you. Your realtor can probably recommend someone to help you stage your home for listing photos, or give you advice on doing it yourself. The general rule is that you want to make your home look as large and new and inviting as possible. Ideally, potential buyers see furniture and art and picturesque touches – the sorts of things that help them picture themselves being comfortable there. At the same time, you want to remove anything too personal. Buyers should see no trace of you or your family as real people – no family photos, no personalized mugs or artwork, etc.
Take Good Photos
I’m also a huge fan of spending a little extra to have someone photograph your home who specializes in that sort of thing. Yes, your cell phone has the technological power to take amazing photographs. Chances are, however, that however popular your selfies may be on social media, you lack the eye for taking effective real estate photos. It’s nothing personal. Like being bad at ping pong or not knowing all the right names for rare saltwater fish, it’s natural if you’ve never had a reason to put in the time and energy before.
7. Be Prepared, But Flexible
Once your home is ready to view, try to keep it that way. This can be harder than it sounds if you and your family are still living in it and using it the way you normally do every day.
Let your agent know your basic schedule so that he or she can schedule walk-throughs around you.
You should never, ever, ever be home during a walk-through.
Logical or not, it’s awkward for everyone and will reduce your chance of selling. If there are some nights you’re typically out later than others, your agent will try to make those work. If you’re normally home, plan on a few more evenings eating out or going on driving adventures, or visiting family (depending on what’s safe and appropriate at the time).
If your agent has a chance to show your home to someone they think might be ready to buy, however, be ready to tidy up and get out with limited notice if at all possible. Sure, it’s a pain, but you know what’s not a pain? Getting your house sold for top dollar because you stayed prepared and flexible.
Conclusion
You can find more articles about how to sell your house more quickly or for more money here in the Accury blogs. Some focus on fixing it up, others on the actual negotiation process, or choosing the right realtor. If you have other real estate for sale, you’ll find helpful information as well.
You don’t have to figure it all out at once. The sooner you start preparing, and educating yourself, and making that list (there’s a reason it’s Step #1), however, the more prepared you’ll be. Take a breath, give yourself some credit, and let us know if we can help along the way.