Homes for Sale in Bowmanville and most house sellers picture a straightforward process where they simply advertise their property, quickly find a qualified buyer, collect the money, and give over the keys.
If if life were that simple! Realistically, there are many variables involved in selling a house, some of which you can manage and others of which are out of your control.
Geographical considerations, for example, may have an impact on the amount of markup you can use or the length of time your home is on the market. There’s a good chance that in markets with plenty of competitors and little available inventory, you’ll sell more rapidly and for more money.
However, homeowners in locations where real estate sales have slowed down will likely need to put up more effort to attract the right buyer.
Following are 12 steps to selling your house:
1. Cooperate with a knowledgeable agent.
Online research on real estate agents’ credentials and prior sales record makes it simple to choose the best one to work with. Examine the online profiles of agents to learn more about their experience, sales volume, and possible titles. Pay attention to the manner in which and the locations where they advertise their listings, as well as whether or not they use expert photographs.
To avoid paying a commission, some homeowners can be persuaded to sell their house on their own, without the assistance of a real estate agent. The phrase used for this is for sale by owner, or FSBO. These costs, which are often 5% or 6% of the ultimate sale price, allow sellers to save thousands of dollars.
2. Decide when you want to sell your house.
Depending on the local real estate market and the amount of available inventory, the complete process of selling a home may take two to four months or even longer. As soon as you decide to sell your property, research real estate agents to choose one with the right experience for your situation.
To find any issues, particularly structural or mechanical ones that might need to be rectified in order to enable a sale, consider arranging a pre-sale home inspection (more on that below!) at least two or three months before you intend to list. Allow enough time for you to schedule any repairs. A month or so before you plan to advertise your property, start deep cleaning and preparing it so that it can be photographed.
To prepare your home for listing, here’s a checklist:
- Conduct interviews with real estate agents.
- Organize your home by decluttering and storing excess items.
- If necessary, schedule repairs.
- Cleaning from top to bottom.
- Put your house on stage.
- Photographs should be taken by a professional.
3. A pre-sale inspection is a good idea
Pre-sale home inspections are optional, but they can be a wise upfront expenditure. A thorough inspection report may identify any structural or mechanical problems before you list your home for sale. Even though it can cost a few hundred dollars, it will inform you of any issues that buyers might find when they do their own inspection later in the process.
By performing repairs with other home preparation tasks to be one step ahead of the buyer, sellers may be able to speed up the selling process. This suggests that the home should be ready to sell when it hits the market, quickly and without incident.
4. Spare no money on pointless enhancements
If you’re going to spend money on pricy upgrades, make sure they’ll provide a fair return on your investment. For instance, installing brand-new granite countertops is not cost-effective if you are only going to break even or perhaps lose money. Additionally, if you want to sell your home for the highest possible price and there is little available inventory in your neighborhood, these upgrades may not even be necessary.
An effective real estate agent can assist you with this. They typically are knowledgeable about regional standards and can help you with any upgrades that are required. If no one in the area wants super skylights or a steam shower, it is pointless to offer them. A clean yard, neutral paint, and new carpet are frequently low-cost ways to create a favorable first impression.
5. Get professional photos
With the aid of your real estate agent, arrange for a photographer to visit your house. The difference between a listing that sells quickly and one that stays on the market for a while can be made by boosting your home’s internet appeal, therefore high-quality photos are crucial.
Some real estate brokers add professional photography and virtual online tours among their offerings. You might want to hunt for a photographer on your own if they don’t, though. Depending on the size, location, and amount of time required to shoot your home, hiring a professional photographer will cost a different amount.
6. Set a fair price.
Even in competitive markets, buyers don’t want to spend more than what comparables, or “comps,” indicate, therefore it is crucial to get the pricing right. You could lose money by underestimating the worth of a residence, and you could lose money by overestimating it.
Consult the comparable sales in your neighborhood to properly price your home right away. These are fact sheets on recently sold residences in a certain area. Finding out how much the adjacent homes are selling for is simple.
According to Lopez, a common mistake is overpricing a home and then progressively decreasing it. “Some vendors think that this approach will result in the best outcomes. In reality, it’s frequently the case that the opposite is true. Overpriced homes will scare away potential buyers, who might not even think about viewing the property.
7. Examine and bargain offers
The ideal scenario would be for offers to start coming in after your house has been listed and has been viewed by potential purchasers. Your best ally in this situation and go-to advisor should be a real estate agent (or lawyer). In a competitive, seller-friendly local market, buyers are likely to make offers that are equal to or higher than the asking price. Even numerous bids may be submitted. However, if sales are sluggish in your region and you don’t receive many offers, you might need to be amenable to haggling. When presented with an offer, you have three options: accept it as-is, make a counteroffer, or decline the offer.
When you make a counteroffer in response to an offer, you haggle about the terms and price. The buyer should only have 48 hours or less to respond to counteroffers, which must always be presented in writing. For instance, you could insist on maintaining your original asking price while extending a credit for paint and carpet. Or, to sweeten the bargain, you may offer to leave certain appliances behind.
8. Prepare for seller closing expenses
The buyer and the seller both pay closing costs. Other expenses frequently covered by the seller include:
- Tax on government transfers
- Fees for recording
- Defaulting liens
- lawyer’s fees
Additionally, the seller will cover any credits for closing costs or repairs that the buyer agreed to pay at closing. Your real estate agent or the closing agent should provide you with a detailed breakdown of the costs you’ll be responsible for at the closing table. Be aware that you might have to pay some fees in addition to the buyer, who normally pays the majority of closing costs, which can range from 2 to 4 percent of the sales price.
9. Consider the tax repercussions
The good news is that many homeowners who sell their principal residence won’t face taxes on the proceeds.If you owned and lived in your home for at least two of the five years before to selling it, you won’t be obliged to pay taxes on any profit up to $250,000. For married couples, the tax deduction amount increases to $500,000. If your profit from the sale of your home exceeds that amount, you must report it to the IRS and list it as a capital gain on your tax return.
10. Assemble the documents required to conclude
For a property transaction to be properly documented, a tonne of paperwork is required. To make things go more quickly, gather everything in one place. The original purchase agreement for your home
- Mortgage paperwork
- A tax return
- Appraisal from the sale of your home
- Habitational insurance
- Report of the home inspection, assuming you had one
11. Think about hiring a real estate lawyer
A couple thousand dollars might be needed to hire one, but in order to safeguard such a significant financial transaction, the investment might be justified. (In particular if you’re selling your house by yourself.)
A lawyer may assist with completing paperwork, reviewing contracts and other legal documents, spotting potential problems, and making sure the sale proceeds as smoothly as possible.Additionally, a lawyer would be able to spot title issues that can prohibit your transaction from closing or cause it to be postponed for several weeks or months, like:
- Unpaid judgments, liens, or other encumbrances
- Trust problems
- Mortgage obligations
- Tax problems
- Encroachments