Tips on the Steps To Selling A House
It takes more than placing a ‘for sale’ sign in front of your home to sell it. Selling a home can be a complicated process, but it is much less stressful when you are prepared and organised. Here, we have provided a list of steps to help you through the process of selling your property from making the decision to sell all the way through handing over the keys.
Step One – Deciding to Sell
When you’re deciding whether to sell your home, consider the conditions of the housing market to determine of selling is the best choice for your situation. Often a home must be sold regardless of market conditions. If that’s the case, you first need to decide if you are going to use an agent or sell your home privately. You should also consider whether you will buy a new home before or after you sell the current home.
Step Two – Type of Sale
The type of sale that’s best for your property depends on several factors such as a need to sell quickly, whether the property is in a highly desirable area and if the property must be sold by a certain date.
- An auction is often beneficial for a homeowner whose property is in a desirable area. An auction sets a specific date for the sale and a reserve price that, unless met, means the property will not be sold. Auctions can bring in bigger prices by creating a sense of urgency amongst buyers.
- Some homeowners, especially those in slow markets, opt to do a set date sale. The seller works out an acceptable price range before the house is advertised or shown. Prospective buyers submit their best offers by a certain date and time. The homeowner can accept the highest offer, enter negotiations with the person who made the highest offer or relist the property.
- Private sales, or asking price sales, are favourable to many homeowners. There is no need to disclose a reserve price (the lowest acceptable price). You have more time to negotiate with prospective buyers to get a more attractive price and terms. There are no auction costs associated with this type of sale.
Step Three – Sale Price
Your home’s location, size, age and features are used to determine the sale price A good place to start working out the sale price is by looking at comparable homes in your area. You can do this by looking at adverts in newspapers or looking through online real estate listings. You may also want to visit auctions of comparable properties in your area to get an idea of what homes are actually selling for. Consider hiring a qualified valuator to get an independent valuation. Alternatively, you may ask several agents for their recommendations regarding sale price. The price should be set high enough to at least cover the costs of the mortgage payoff, legal fees, closing costs and agent fees if applicable. You’ll want to add a little more to that figure, too, in order to make a profit, but keep your price realistic. Don’t forget to determine the property inclusions (curtains, refrigerator, washing machine, etc.) as this may increase the asking price for the house.
Step Four – Advertising/Marketing
Advertising your home involves many different aspects of presentation. You must photograph the property, draw up floor plans (or hire someone to do this for you) and write copy for your adverts. You want to get the maximum exposure across a wide range of media. For Sale For Lease offers an affordable Residential Property package that lists your house on up to 10 real estate sites.
Step Five – Offers / Negotiations
Potential buyers will come to view the property by setting up an appointment or by attending your open house. When working with an agent, he or she will receive offers or negotiate on your behalf. If you are selling your home privately, these negotiations will fall to you. You must work with prospective buyers to reach a mutually agreeable price.
Step Six – Sale / Contracts
Once a price is agreed upon by both buyer and seller, contracts are signed, and the buyer pays a deposit. Lawyers and banks will iron out the details of the sale to ensure both parties meet the legal and financial requirements to complete the sale.
Step Seven – Settlement
On the day of settlement, you will relinquish the keys and your legal rights to the property in exchange for payment from the buyer. Attorney fees, bank fees and agent fees, if applicable, will already be deducted from the payment balance.