Read Time: 6 min.
Introduction
Selling your home is a significant endeavor, both financially and emotionally. It involves a series of steps that, when navigated correctly, can lead to a successful and profitable sale. In this comprehensive guide, we’ll delve into each step, offering valuable insights and practical advice to help you confidently navigate the home-selling process.
Step 1: Pre Listing Appointment & Hiring a Realtor
If your agent is missing small details at the beginning or is not demonstrating that they have their act together, it could cost you THOUSANDS of dollars.
The initial step in selling your home is critical: hiring a professional realtor. They possess the expertise, market knowledge, and negotiation skills needed to guide you through the entire process. A trusted realtor will work as your partner, ensuring your interests are protected every step of the way. To establish this trust, you should verify their credentials and check reviews from multiple platforms. Personal recommendations can also provide valuable insights. Additionally, open and honest communication is vital.
One of my favorite ways to determine if someone is genuinely professional is timeliness. Pay close attention to their punctuality once you schedule a call or an appointment with any potential agent. If they don’t respond or are late to your meeting without giving you a heads up or a solid explanation, that is a RED FLAG! If someone cannot keep an appointment or show up on time, that is a good indicator that they will likely cut corners in the future or miss important details. Details are everything in real estate; I helped a client buy a house in a fantastic neighborhood in Chesapeake, Virginia, simply because the listing agent failed to include that the property was on 3 acres in the online listing. That home would have sold for $20,000 more if the listing agent had included that detail in the MLS. It simply didn’t show up on the automated search that many other agents set up, and the massive pool of buyers was reduced to only a few people with a keen eye. So, If your agent is missing small details at the beginning or is not demonstrating that they have their act together, it could cost you THOUSANDS of dollars.
If at any point you feel uneasy or sense a lack of transparency, do not hesitate to find another realtor. A real estate agent should be your fiduciary, meaning they should place your financial needs above their own. An agent that comes across as all about themselves probably is, and you should run, not walk the other way! Remember, this is a collaborative effort, and a strong working relationship with your realtor is the foundation of a successful home sale.
Step 2: Pricing
Determining the right asking price for your home is a strategic balance. Overpricing can lead to a prolonged listing period, potentially raising questions among prospective buyers. Conversely, underpricing may result in leaving money on the table. It’s essential to approach pricing as both an art and a science. Pricing effectively involves a thorough understanding of current market trends and a careful analysis of comparable properties. A Comparative Market Analysis (CMA) is an invaluable tool for setting the optimal listing price. This detailed assessment considers factors such as property condition, location, amenities, and recent sales data. Collaborate closely with your realtor during this process, as their expertise will be vital in arriving at a competitive yet realistic listing price.
Setting your price high and waiting for ‘bites’ will come back to bite YOU!
Take this example: You believe your home could get a price of $400,000 because that’s what you think it’s worth. Your agent tells you that it is likely to sell at $385,000. In your head, someone will fall in love with your home and stop at nothing to have it, so they may pay $400,000! You decide to set the price at $400k and “see what happens”... 2 weeks go by, and you have had a couple of showings and no offers. So you say let’s lower the price to $390,000. The fact that your house has already been on the market for two weeks means that when you make that price change, all the big-name websites will put your property in front of fewer people this time. That pesky “algorithm”... 2 more weeks go by. You have had some more showings and two offers at around $380,000. So you decide to try for that $385,000 number your agent told you was the right price a month ago... You get more offers, but ultimately, you end up accepting an offer six weeks into this nightmare for $375,000.
Why did this happen?
You chased the market as it went down, and to make matters worse, you were creating unnecessary objections in your buyer’s minds when they saw your home stacking up the days on market (DOM) count. In the potential buyers’ minds, your house had something wrong with it because it wasn’t selling as fast as all the other homes in the area. If you had priced your home at $385,000 on day one as your agent recommended, you would have gotten that price and done it in 14 days instead of 42.
Step 3: Staging and Photos
Creating an irresistible first impression is vital in capturing potential buyers’ interest. Professional photography is an absolute necessity in today’s digital age. Poor photos are a turn-off and will lead to people scrolling past your listing while browsing the internet looking for their next potential home. These images serve as the initial gateway through which buyers connect with your property. Your goal is to provide an immediate and positive emotional response.
Staging is also a powerful tool. It transforms the space, allowing buyers to envision themselves living in your home. Don’t worry; you don’t have to be Joanna Gaines to significantly impact how potential buyers perceive your home. Staging can range from decluttering, depersonalizing, and re-arranging furniture to employing professional staging services. Additionally, investing in a thorough cleaning before photography and showings ensures that your home presents itself in the best possible light. Remember, a clean, inviting environment sets the stage for a positive and memorable viewing experience.
Step 4: Showings
Preparing your home for showings requires thoughtful attention to detail. Start with a deep cleaning, addressing both major and minor areas. Consider depersonalizing the space, allowing potential buyers to imagine themselves living there. This might involve removing personal photos or unique decor items. A big picture of you on your wedding day might not be what a new divorcee wants to see and might leave a negative impression even in the most beautiful home. While feeling attached to your home is natural, avoid being present during showings. This allows buyers the freedom to explore and envision themselves in the space. Additionally, pay attention to sensory details. Ensure your home smells fresh and inviting, and consider using warm, natural light to create a welcoming atmosphere.
Step 5: Contract Negotiations
Negotiation is a pivotal aspect of the selling process. Your realtor’s expertise in this phase can significantly impact the final outcome. It’s crucial to approach negotiations with a clear understanding of your priorities and an open line of communication with your realtor. They will work tirelessly to secure the best possible terms for you. Remember, your realtor is your fiduciary, committed to putting your financial interests first. This means they will advocate for your needs throughout the negotiation process.
Step 6: Inspections and Underwriting
Inspections and underwriting are critical steps that can significantly impact the sale of your home. Understanding what to expect during this phase is key to a smooth transaction. The buyer side of the transaction conducts inspections to provide a detailed assessment of your property’s condition and identify potential issues. Your realtor will guide you on how to address these concerns. Every home has items that may need fixing, and buyers can range from wanting every light switch cover changed to not needing any repairs. This is all part of the negotiation process, and you, as the seller, may or may not want to fix the items requested. Rely heavily on your realtor in deciding what to repair to get to the closing table.
Consider getting your own pre-listing inspection, so you know ahead of time what you are willing to fix and what you are not.
Underwriting involves the lender’s review of the buyer’s financials and the property’s title. Be prepared for potential hiccups, and trust your realtor’s expertise in navigating any challenges that may arise. Similarly to the inspection, the lender and type of loan the buyers are using may require repairs. These repairs are generally non-negotiable for the lender to approve the buyer’s loan. Your realtor should guide you through the potential pitfalls during the contract negotiations. If you’re lucky enough to have multiple offers, the strength of the buyer’s financials and the type of loan used should play a role in which offer you choose.
Step 7: Closing
As you approach the final stages of the selling process, it’s essential to have a clear understanding of what to expect. The closing process involves the completion of all necessary paperwork and the transfer of ownership. Your realtor will guide you through this final stage, ensuring that all documents are accurately completed. Be prepared to review and sign various legal documents—additionally, budget for any closing costs that may apply. Having a knowledgeable and experienced realtor by your side ensures a smooth and efficient closing process.
Conclusion
Mastering these seven steps equips you with the knowledge and tools to navigate the home-selling process confidently. Remember, your realtor is your invaluable partner throughout this journey. Your greatest assets are open communication, strategic pricing, and attention to detail. By applying these principles, you’ll be well on your way to a seamless and profitable home sale.
Author: Sean Hudgins, Chesapeake Virginia REALTOR® - I love helping people in any stage of their Real Estate journey! The Real Estate world can be challenging and a bit overwhelming. That’s why I work so hard to educate people about the process and the power Real Estate has in the wealth-building process.
