How Do I Sell My House in Pennsylvania?
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Aaron Gray, Sr., a FastExpert partner and managing broker for CENTURY 21 Advantage Gold’s Elkins Park office, shares his expert insight into how to sell your house in Pennsylvania. Aaron has been selling real estate since 2008 and loves to support both clients and agents. His passion for real estate and mentorship shines through him.
The sale of a house is the most expensive transaction most people will ever undertake. With the abundance of social media sites and television programs like YouTube, HGTV, and countless other real estate “guru” pages, many homeowners actually believe they do not need to hire a real estate professional to guide them through the process. Although a real estate license or a real estate agent is not required to sell your own property in Pennsylvania, I would highly advise against it. In other words, don’t try this with your home.
According to the National Association of Realtors (NAR) 2023 Profile of Home Buyers and Sellers report, only 7% of houses listed for sale by owner (FSBO) were completed successfully. Although this minute number of property owners were successful with their sale, this same report showed these properties were sold on average for a staggering $95,000.00 less than agent-assisted sales.
What that means is those property owners lost thousands of dollars they could have earned after paying a real estate brokerage commission if they had hired a real estate agent. In addition, they lost valuable time with family and friends, as well as personal time doing a mere fraction of the 184 things a real estate agent does when marketing a property for sale.
Now let’s take a look at what is required for a successful property sale in Pennsylvania.
Know What Type of Real Estate Market You Are Experiencing
Believe it or not, real estate differs tremendously from one location to another. The type of market also plays a vital role in the success of your property sale.
There are a few factors that influence the type of real estate market in which a property owner seeks to sell their property. These conditions will render either a buyer’s market, a seller’s market, or a balanced market.
Buyer’s Market
A buyer’s market happens when key factors such as inventory, interest rates, and economic conditions are more favorable toward buyers. With ample inventory (6 months or more of available properties for sale), buyers have several homes to choose from. When they have more options, they can be much more selective in the homebuying process.
Lower interest rates lead to increased purchasing power. Buyers can afford to purchase more home and not feel as though they are settling for something less than they want because they can’t afford the mortgage payment. A steady economy, job growth, and lower inflation boost buyer confidence. They can purchase with less fear of not being able to maintain their new home down the road.
Seller’s market
While some factors such as interest rates, and a healthy economy, benefit buyers, these same factors are also beneficial to sellers. Two additional factors that contribute to a seller’s market are low inventory, and high buyer demand.
When there are less than 3 months of inventory (the length of time it would take to sell all of the available homes currently listed for sale), there is a seller’s market.
High buyer demand exists when there are more buyers than available houses. Think of the game Musical Chairs. If there are 10 chairs and 20 people, half of the people will not get a seat. That means all 20 people will be doing what they can to position themselves for the best opportunity to get a seat when the music stops.
>>Got Questions? Ask a Licensed Real Estate Agent for Advice
Balanced Market
This market is said to be equally favorable to buyers and sellers alike. When there are 4-5 months of inventory, it is a balanced market.
The housing market conditions do not give either side the upper hand.
Sellers must be savvy and creative in how they market their properties, the terms they will accept, and the incentives they offer to attract potential buyers.
Buyers must be just as savvy and creative in drafting and presenting their offers. A couple of tickets to a football or basketball game or free car washes for one year may appeal to some sellers and may be the thing that sets one offer apart from others enough for the seller to accept.
Hire a Real Estate Professional
The very first thing a homeowner should do is hire a real estate professional. Yes, I did state that a homeowner is not required to do so, but for the best results they should.
Unfortunately, many sellers and buyers hire the first agent they talk with. This is not always a bad thing, but oftentimes it is, and the seller does not find out until their property sits and does not sell or something is missed in the process, and the seller has to pay the price for it.
Criteria For Selecting Your Agent
Full-time Agent: The first consideration is whether or not the agent is full-time, part-time or bi-vocational. The benefit of a full-time agent is that they have no other employment obligations that pull them away from running their real estate business. This may sound unrealistic in a world of multi-streams of income thinking. However, the sale of a home requires a dedicated professional.
Part-time Agent: This is an agent that is not committed. They treat real estate as a side-hustle, not a bonafide business. A part-time agent looks to help family members and friends if they need it. While it can be beneficial to work with an agent that you know and trust, a part-time agent may not have the experience required to complete a smooth sale.
Bi-vocational Agent: Although this agent does have primary employment, they treat real estate as a second career. They do the work required to run a real estate business. They build relationships with other agents in their brokerage to support them when they cannot be available for some aspect of the home selling process. Their client does not suffer because they are not personally available.
Knowledgeable
Real estate is an ever-evolving industry. Laws and rules change frequently. There are many forms required when selling a property. Agents must stay informed about all of these changes. If a real estate licensee is a Realtor, they belong to a national, state, and local realtor association. These associations provide resources for Realtors to always be in the know.
Experienced
Every seasoned real estate agent had to cut their teeth on their first transaction. The good thing is that the inexperienced agent has a broker of record who is responsible for training and managing all of their transactions.
However, an experienced agent has some transactions under their belt. They have successfully taken other property owners to the finished line. This is a huge benefit to sellers because they understand the process and know what to expect.
Available
Whether the agent is full-time, part-time, or bi-vocational will determine their availability to a large extent. An agent doesn’t need to be available at the seller’s beck and call; however, a seller should not have to wait until after their agent finishes their primary employment to address their needs.
Evaluate property condition
A seller can sell their house in one of three conditions: as-is, showroom ready, somewhere in between the two.
As-is can be very subjective; it means different things to different people. Typically, as-is indicates that a seller does not want to make any repairs. However, that is not always the case. It is essential to clarify the seller’s expectations.
Showroom ready means the property is move-in ready, nothing has to be done.
Somewhere in between the two is just that. The seller may have put a fresh coat of paint on the walls, but some rooms will need updating or renovation to suit most buyer’s preferences. However, the buyer can generally move in immediately and no major renovations will be required.
Examine the Property Condition
Pre-listing inspection
The seller can have a home inspection company complete a pre-listing inspection to determine their property’s true condition. One problem is that anything discovered from the inspection would need to be disclosed to potential buyers. The pre-listing inspection’s benefit is that it allows the property owner to make any repairs, which can be used in negotiations.
Make Recommended Repairs
With or without a pre-listing inspection, a seller can make any repairs of known property defects, such as painting, installing new carpets, having the roof coated, etc. The list of repairs is endless, so it’s also important that the seller knows what will add value or enhance the sale of the home.
Determine price
The final requirement is to determine the listing price, which may or may not be different from the actual sale price. The listing price is the price that you see when scrolling through homes online. The sales price, also known as the purchase price, is what the buyer actually pays for the home.
As a property owner you may list your property for sale at any price you choose. However, in order for a property to sell and not sit, it must be properly priced to perform.
The type of market will play a part in the listing price. The listing price, or what I like to refer to as the probable sale price, is not some random number. Pricing is determined by recent market statistics and carefully calculated by the selling agent. Whether property values are appreciating, depreciating, or remaining steady will affect your property value.
Secure Your Next Home
If you are selling a primary residence, you want to make sure you have a place to live once your house is sold. This is one of the very first things I address with my seller clients. I jokingly tell them I have been known to make people homeless.
Many times sellers do not expect their house to sell as quickly as it does and they are caught off guard. Ideally, you want your after-sale housing secured before you list your property for sale. Or be ready to pounce on a home quickly if your house is already listed.
Consult Your Tax Professional
The sale of a property may have tax implications. The type of property being sold, whether it is the sale of a primary residence, an investment property, or an inherited property, will determine the tax liability. Be sure to speak with your trusted tax professional so that Uncle Sam does not come knocking at your door.
Work With Your Expert Agent
Selling your house in Pennsylvania can be smooth and successful with the right real estate agent. They are trained to work on your behalf to achieve your sales goals and make the process as stress-free as possible.
FastExpert has the best agents in your area to choose from and strives to make it easy to find your perfect agent. Let’s sell your home together!
