Selling a house requires a lot of processes before you can finally seal the deal with your home sale. The biggest dilemmas are knowing how much, when, and how to sell your property.
It's not every day that you will sell a house and get used to doing so. It is a once-in-a-lifetime experience that you have to do right. Thus, you should know what to do and what to expect when listing your home.
Best Time to Sell
Before selling your house, you should understand the seasonal trends in the real estate market. Typically, the best time to sell is during Spring and Summer.
This season is the best time, historically, to sell homes the fastest. Homes also sell higher than the asking price during this season.
During summer, there is an increase in demand for moving houses before school starts. There are also fewer listings during this time, which means fewer competitors from other home listings.
However, people might not be interested in going out during the summer to look for homes.
Aside from seasonal considerations, it would help if you also looked into the market you currently have. There are two real estate markets, the seller's market, and the buyer's market.
If you are under the buyer's market, then prices might drop.
However, if you are in the seller's market, the prices might be in your favor.
It would help if you also looked into conditions in your neighborhood:
- What are the trends in the appreciation of houses in your location?
- Are homes in your locale selling fast?
- What kind of homes sell faster?
- Knowing the trends in your locality might help you know when is the best time to sell your property.
Related: Should you sell your home as-is?
How Much Your House Should Sell For
One of the most overwhelming steps in selling a house is knowing how much you would sell it for. You should consider the repair and commission expenses, age of the home, area, and current market condition.
The most considerable expense you will have is on the repair expenses you may want to be done on the house before selling it.
The house might have leaks, wiring problems, holes, paint problems, and many more.
If you choose to address these problems, you should add them to the price you will set. If you have a real estate agent, then take into consideration his/her commission.
However, you should not make every repair to the house. Only do those needed, such as electrical systems and leaks.
Other expenses, like paint problems and lawn problems, can be shouldered by the buyer.
Another consideration is the age and the area of the property. If your house is relatively new, then you can price something higher. However, if your house is old, then you should price it lower.
Older houses hold many memories. However, it would help if you did not let sentimental value affect how you price your property.
It would help if you also thought about the current market conditions in your area. As mentioned, there are the seller's market and the buyer's market.
There are a lot of competitors if you are in a buyer's market. The best market to be in is the seller's market to make your selling price higher.
Related: Common Home Selling Mistakes
Get a Real Estate Agent or Sell Off-Market
Listing your property also means that you should understand the two listing contracts – selling with a real estate agent and selling direct cash off-market.
Knowing the pros and cons of both will help you decide which of the two is suited for you.
Selling with a real estate agent means that a third person will look for a buyer, be the middleman in negotiations, who will also receive a commission from you.
The agent will represent you in every transaction regarding the property. Thus, it would be best if you looked for one that is reliable.
Typically, the agent’s commission is 6% of the seller’s price of the property. An example is $18,000 on the sale of a $300,000 house.
From the beginning of your transaction with the agent, make sure you both understand and agree on the commission.
Another listing is selling for cash off-market. Here, no agent will commission from the selling price of the property.
There will be a marketplace that will connect you with a buyer and make an offer. Ensure that you clearly understand the terms and conditions of the online marketplace that will list your property for sale.
Listing and marketing your home can be complicated and overwhelming.
You should know when is the best time to sell, how much you would sell the property for, and whether you will get a real estate agent or sell off-market for cash.
If you already know these steps, then you are good to go.
Josh founded Money Buffalo in 2015 to help people get out of debt and make smart financial decisions. He is currently a full-time personal finance writer with work featured in Forbes Advisor, Fox Business, and Credible.