If you thought the home-buying process was stressful, selling your home is no walk in the park either.
Unlike buyers, who often have the privilege of patience, many motivated sellers who rely on the sale of a home to finance the purchase of a new one need to act fast.
To best prepare you for this process, we’ve outlined seven steps to selling a house that will help streamline your next real estate transaction.
Step 1: Hire an Agent
Your first move when you decide it’s time to sell should be to contact your local real estate agent. Agents offer access to a bevy of important tools, including inspectors, marketing services, multiple listing services (MLS), and pricing tools to calculate the value of your home.
Your agent can help you along every step of the process, from listing and marketing your home to negotiation. In turn, your agent will not only ensure your house sells on time but for the right price.
This is why finding the right agent is so important to selling your home.
Qualities to Look for in an Agent:
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Qualities to Avoid in an Agent:
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Step 2: Prepare the Home for Sale
Before you list and market your home, your agent will recommend you make any improvements that can increase the value of your home.
Improvements may include minor, aesthetic, or even deep structural repairs, such as installing a new roof.
Ideally, you’ll want to improve its curb appeal and eliminate any issues that could delay or sour any deals you try to make
To-Do List:
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Step 3: Get Your Home Priced
Next, you’ll want to get your home accurately priced to ensure that you retain the maximum value of its sale and get it sold quickly.
Your agent will offer several resources to accurately price your home, including online calculators, performing a comparative market analysis, or even hiring an appraiser.
Common Pricing Mistakes to Avoid
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Step 4: Market and List Your Home
Once priced, it’s time to start listing and marketing your home. There are a variety of online platforms like Zillow and Redfin to list your home, but your realtor will have access to an agent’s-only MLS.
An MLS gives agents more detailed information about properties than traditional listing platforms and provides unique advantages to buyers and sellers alike.
During this stage, you can also host open houses to invite competitive bids or let your agent show your home via private viewings. However, to make the most of your home online and in-person, it pays to properly stage and photograph your home.
Tools Required:
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Resources to Market Your Home:
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Step 5: Negotiate Offers
By this point, you should be starting to field a few offers if you priced and marketed your home properly.
You can mostly leave negotiating up to your realtor to try and get the best price, though you’ll have the final say over what you are willing to sell your property for.
Questions to Ask Before Accepting an Offer:
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Step 6: Complete Inspection and Appraisal
Once a home is under contract, you will need to go through the stressful stages of inspection and appraisal.
Inspection comes first and can help identify any lingering issues that need addressing before selling a home. The buyer may waive these repairs or the need for inspection altogether, or they may ask for you to make the repairs before the home is sold. In other instances, they may even ask you to lower the price.
However, this doesn’t mean you can hide any lingering issues, as most states require you to disclose any issues to potential buyers before you close on a contract.
Furthermore, these issues will be priced into your appraisal. If the appraisal comes back at a different price than your home is under contract for, you or the buyer may be eligible to renegotiate the contract before closing on the home.
Since renegotiation can delay closing, it’s often ideal to complete these steps before even listing your home.
Step 7: Finalize Closing
Once everything is squared away, you and the buyer can close on the sale of the home.
Luckily, there are several loopholes that allow you to avoid capital gains tax. For example, if you lived in a home for two out of the last five years (it doesn’t have to be consecutive), you don’t have to pay capital gains on the first $250,000 in equity you gain if you’re single or $500,000 if you’re married.
The steps to selling a home are straightforward, though they do come with their ups and downs. To mitigate your stress, be sure to find a real estate agent you can trust who will walk you through the whole process.
FAQs: Selling Your Home
What is the best time to sell a home?
Most experts recommend selling your home between March and Labor Day when real estate markets are hot. The slowest months of the year typically include November through February.
Can I sell my home while still living in it?
There are ways to negotiate with a buyer to allow you to dwell in a home before it is sold. For example, some buyers will allow it, while some may require you to sign a leaseback agreement or home reversion.
How long does the selling process typically take?
Selling a home can take anywhere from two to six months. Typically, it takes two to four months to list and market a home, while it takes 30 to 60 days for the home to close under contract.