Seller’s Guide

Find Home Value & Equity

After you decide to sell your home, one of the first home selling tips you should follow is to find the true value of your home in the current market.

Home prices have surged across the country in the last two years. In the first quarter of 2022, the median home sales price was $428,700, a 30% increase from 2020’s figure of $329,000. However, the growth in the housing market remains uneven, with some areas increasing and others remaining relatively static.

So follow this tip: If you want to sell your house fast, the first step is to price your property accordingly.

Begin by examining the selling prices of comparable homes in your area. What happens in a different neighborhood might be irrelevant. Focus your analysis as close to home as possible.

Next, look at the condition of your home and how many updates you’ve made. This could raise the value of your house. Working with a knowledgeable real estate agent with in-depth knowledge of your area is important to ensure you don’t overprice or underprice your property.

Assess Your Home Equity

Another home selling tip is to review the equity you have in your home. Equity is how much of your home you have paid off. For example, if you put down a 20% payment on a home, you already have 20% home equity.

While there’s no requirement to hold equity in your home, more equity allows you to lower your home’s listing price and upsize to a larger home. U.S. homeowners today benefit from record home equity, averaging $300,000.

Leveraging your equity as part of your sale can enable you to put more money in your pocket.

Generally, most experts recommend holding at least 10% equity in your home before selling. However, if you’re upsizing, consider this tip and ensure a minimum of 15% equity to finance your move.

Estimate Costs and Profit

Is it even worth selling your home right now?

The last thing you want is to sell your home for less than you paid. Factoring in the closing costs, fees, and taxes involved in selling your home will tell you whether it’s a good idea to embark on the home selling process. Rates vary for every transaction, but as a seller, you can expect to pay 2% to 4% of the sale price in total costs, including your agent’s commission.

 

Real Estate Market Trends

Another one of the great tips for selling your home is around knowing the real estate market you’re about to get into. The market changes regularly, usually by season. Things can often go from a seller’s market to a buyer’s market somewhat quickly.

This can be impacted by lumber prices, inflation, and global pandemics. One local market might be seeing a surge in homes for sale while another is at an all-time low. Getting to know your market is important.

Local Real Estate Market Knowledge

Start by looking at what is impacting the national market and see how close it gets to home. If supplies are limited and home builders are feeling the pinch nationwide, it’s likely there aren’t many homes being built near you. That can mean more home buyers are looking for existing homes instead of new builds.

Next, look at what is happening at a local level. Maybe your county is building a new school that everyone is excited about. Homes in that school district could see an increase in their selling price.

Ask an Agent

Real estate agents are the best people for giving home selling tips. It is part of their job to know what is happening in the real estate market they work in. If you want to know if it is the right time, when to list or changes to make before listing, get your selling tips for a top agent.

Finding a Listing Agent

Working with the right team matters. When you start looking for a Realtor to help you sell your home, look for an agent who has sales in your neighborhood or zip code. You also will want an agent who understands your needs. According to the National Association of Realtors (NAR), sellers who used a real estate agent sold their homes for an average of 22% more than those selling independently. This is one of the best home selling recommendations you’ll get – use a highly rated, trusted local real estate agent. You’ll end up making more money than you would have saved if you sold without.

Refer to a Real Estate Agent Platform

Finding a real estate agent is challenging because there are many options, especially in major metropolitan areas. Many home sellers look to neighbors but their information could be dated and might not fit your needs.

Make your search simpler by using a real estate agent directory like FastExpert to connect with a top rated real estate agent. Our platform lets you see all the details, including prior client reviews, at a glance.

Review and Select an Agent

Another great tip when selling your home – don’t choose the first agent you meet. The key to how to sell your house is to create a shortlist of agents and get to know them.

Ask every agent on your shortlist how they maximize value for their clients. First, question them on their fees, selling processes, and negotiating steps. Find out what they think makes them an asset to your real estate selling journey.

Never choose an agent purely because of their fees. If it’s too good to be true, then it probably is. Discount agents give you a discount experience. When you are dealing with such a large financial transaction, you want the best.

Selling Your Home Without a Realtor

Many sellers consider how to sell a home by owner because they don’t want to pay any real estate commissions. But, unfortunately, while saving a few percent may sound smart, you’re opening yourself up to more work, stress, and potentially lower profits than with agent assisted sales.

Anyone can sell a home without a realtor by listing their homes on any popular real estate portal or even classified ad platforms like Craigslist. But if you don’t know the market or how to handle a complex real estate transaction, you will likely leave a lot of money on the table. You also can expect more buyers when using an agent and asking for a fair price.

If you are selling your home, the best recommendation we can make is to find a good real estate agent. The top ones will prove their worth quickly and tangibly. Check out FastExpert to see what realtors in your area can do for you.

Preparing to Sell

After reviewing the numbers and consulting realtors, it’s time to prepare your house for the market. This process is critical to how to sell your house quickly and with minimum fuss. It’s important to know if you are in a buyer’s market or seller’s market. From there you can decide how aggressive to be on your asking price.

When small areas of a house are in disrepair, it tells potential buyers that the home may not have been taken care of. Take this selling tip – spend time fixing the small things and ensuring everything is in working order. This will show prospective buyers that your home has been cared for and is ready for new occupants.

Determine Your List Price

Listing prices must balance attracting potential buyers while ensuring you don’t leave money on the table. Working with trusted real estate agents provide access to local real estate statistics, empowering you to make an intelligent decision.

Navigating today’s market is even more challenging for sellers because 42.42% of homes sold above the listing price in February 2022. While the market has cooled since then, it is still largely considered a seller’s market. these high prices indicate many sellers aren’t listing their homes at high enough prices.

Remember, listing too high allows you to lower the price later, but you’ll never recoup those lost dollars if you list too low. Most real estate agents will tell you to list at the high end of your range, especially in a seller’s market.

Consult Your Agent For Necessary Repairs

Launching a wholesale renovation project isn’t necessary to sell a home. However, some repairs may be needed. For example, buyers will expect a significant discount if your home has structural or mechanical issues.

Your goal is to make your home as marketable as possible in the selling process. First, work with your agent to order a home inspection. Home inspectors aren’t legally required, but they can flag any issues that could be a barrier to marketing your home for its maximum value.

Consider Effective Home Renovations

What is an effective home renovation?

Renovations should increase your home’s value while recouping most of its costs. Some renovations are more in-demand than others, with the most valuable home improvement projects being:

• Adding a wooden deck
• Replacing your home’s siding
• Minor kitchen remodel
• Bathroom remodel
• Window replacement
• Fresh coat of paint

Anything that can increase your home’s appeal would be considered an effective home renovation. Talk to your agent about cost-effective home improvement projects. Your agent can make recommendations based on how much capital you have and how quickly you want to move.

Declutter and Depersonalize

Homes that are clean, decluttered, and without personal items everywhere tend to sell much better than the opposite. Cleaning removes distractions and gives the house a chance to shine.

Depersonalizing your space allows buyers to envision themselves living there easily. Making your home look nice can pay off when you start offering offers. Many buyers are turned off by family photos and personal items. A good selling strategy is staging and cleaning a home properly. These tips for selling will help you sell quickly.

Clean Your Home

Keeping your home clean enhances the look and feel of your home. It allows you to highlight the most-coveted features of your home intelligently. There’s a real connection between home values and cleanliness, with clean homes selling for more than those presented “as is.”

Consider a full deep clean before taking photos and staging your home. Enlisting a professional company for a deep cleaning should only cost a few hundred dollars, but it’s an investment well worth making before your first open house.

Invest in Curb Appeal

Curb appeal is the impression your home gives off when seeing it for the first time. Unfortunately, the average time to form a first impression is 27 seconds, meaning if you don’t nail it immediately, you have an uphill battle to sell your home.

Most agents agree that dolling up the front of your home should be a priority. However, mowing your lawn, painting your home, and investing in professional landscaping can give you an edge over the competition.

Stage Your Home

A big mistake that homeowners make is using bad pictures to market their homes. According to the NAR, in 2021, 95% of buyers used online tools to search for a home. Unfortunately, when buyers see bad-quality pictures that don’t show off the home well, they get easily turned off. Both the interior and exterior are important.

A top real estate agent should be able to recommend a professional photographer to take pictures of your home. While it may seem like a superfluous expense, it can impact how much interest you garner from the market.

Home Marketing

Marketing your home will determine how fast you can sell and the price you get for your home. With more than two million real estate agents across the country, this is where your realtor earns their commissions.

Depending on the current market, you may get a lot of interest or just a few showings requests. Either way, making your home available to all buyers who want to see it will increase your chances of a sale. Keeping it in tip-top shape will also work in your favor with impressing potential buyers.

Promote Your Home Online and Offline

Curb appeal is what most people talk about in terms of selling a home. However, successful agents now talk about online appeal because how your home appears online is just as important. Spreading your reach across multiple platforms and brokerages is key to maximizing your reach.

You also need to think about offline sales. Your offline appeal applies to how your house looks when people visit and how your home looks in the window or catalog of a realtor.

Work with the right real estate agent that knows how to utilize both increases your pool of potential buyers and sell for top dollar.

Showings & Open Houses

Prepare for House Showings

To prepare for house showings, keep your home as clean and free of clutter as possible. Also, make sure you’re flexible. Narrowing down house viewing times will only lead buyers to look elsewhere. Allow other real estate agents to schedule time for their clients to view your home whenever possible.

One top tip for how to sell your house is to make yourself scarce. Hanging around your house is distracting and potentially intimidating for buyers. In addition, it’s not uncommon for buyers to feel unable to express their opinions honestly when the current owner is lurking in the background.

You can always ask your agent to be present at the time. Remember, the goal of a house showing is to allow potential buyers to imagine themselves living in that space.

Reviewing Offers & Negotiating

Review Offers and Accept

Assuming all went well, you should begin receiving offers within weeks of listing your home. Of course, all offers must be reviewed in line with your priorities before the home sale.

If you aren’t getting offers, talk with the buyer’s agent. They may have feedback and tips for selling that will make a huge difference in getting multiple offers. You can aways change to a lower price or offer financial incentives to buyers. Not all homes sell fast or lead to bidding wars but if you list at the best price, you can expect to get offers.

Whether you are looking for a quick sale, a high profit, a long rent-back, or someone to love your home as much as you did, it’s important to remember your priorities when considering offers. The best offer for your house is one that fits what is most important to you.

After Your Home Sale

The next step is to close the sale. Then, assuming the buyer is happy with the property’s price and condition, it’s time to address the nuts and bolts of the deal.

Your realtor will work with the buyer’s agent to complete this process.

Go Through Your Settlement Statement

Before closing, you’ll need to look over the settlement statement. A settlement statement details the fees and credits making up the real estate transaction. It details where money has changed hands at every stage of the process.

Some examples of items appearing on a settlement statement include:

• Real estate commissions
• Taxes owed to local municipalities
• Lender charges

It also details who is responsible for each fee. Go through every charge and dispute anything that doesn’t appear correct.

Collect Proceeds from the Sale

If both buyers and sellers are happy with the settlement agreement, you can collect the sale proceeds from the designated escrow company.

Most of the time, you can collect your check on the day of the sale. Remember, if you complete the sale after 2 pm Pacific time on a Friday, you’ll have to wait until Monday. All wires operate on Eastern time, meaning the cut-off is 5 pm Eastern.

Assess Taxes on the Sale

You may be required to pay capital gains taxes on your home. Capital gains tax applies if you have owned and lived in the home for less than two of the five years leading up to the date of the sale. If you qualify for avoiding capital gains, you can exclude up to $500,000 of your profits if married and filing jointly. Any other tax status means you can exclude $250,000 of potential profit.

As part of this home sellers guide, we recommend working with a tax advisor to reduce your capital gains taxes, such as by accounting for home improvements and selling expenses.

Moving Out

It’s time to move out of your old home and into your new one. The moving process is usually as simple as getting your stuff and leaving. But there are certain things you need to do before you leave.

Transfer Utilities

Make sure your utilities stay on for the business day after closing. Delays in closing the sale could mean you’re left without utilities over the weekend if the sale fails to record because of a non-business day.

Remember, once you turn off your utilities, some companies can take 24-48 hours to turn them back on at your new place, especially if a technician needs to visit your home. So ideally, your utilities should always be kept on for a short time.

Change Your Address in Your Accounts

Make sure your essential mail is routed to your new abode. Update your address on the official USPS Change of Address website. Change your address at least two weeks before the day the sale closes so that the changes have a chance to take effect.

Go out of your way to notify any creditors, family, and friends you have of your change of address. Alter your subscriptions to ensure nothing gets delivered to your old home.