Dos and Don’ts of Selling a Home: A Guide for First-Time Sellers

Peter Warden

 

 

Selling your home for the first time

Just like buying a home for the first time, selling yours can be an exciting venture.

Similarly still, it comes with a list of things you should and shouldn’t do in order to get the best deal for yourself.

Read on to see the best ways to prepare yourself and your property before putting it up for sale.

 

 

Dos of selling a home

Most real estate agents now talk about marketing a home rather than selling a home. And they’re right to do so.

Selling techniques get you only so far. That means understanding what motivates your “target market,” which is the pool of potential buyers who are looking to buy a property in your area and price range.

Put yourself in their shoes and try to imagine what most of them want. At a minimum, it’s safe to assume they’ll be looking for a home that is:

1. In good condition — no cracked sidings, missing tiles or other obvious defects
2. Clean and smelling fresh
3. Attractive from the street and with tidy yards, front and back
4. Tastefully decorated in mainstream, neutral colors
5. Uncluttered
6. Somewhere they can easily aspire to live in

Get those things right before you even begin to market your home and you’ll give yourself a head start.

Should you use a real estate agent when selling a home?

Real estate agents charge high commissions, often between 5% and 6% of the sale price, depending on where you live. And nobody likes paying out that sort of money.

But you might benefit from appointing an agent for the first time you sell, if only because that buys you a ringside seat of the whole process. That way, you can use what you learn when you’re selling in the future.

Plus, many sellers value the service they get enough to continue using agents for all their future sales. The range of functions and expertise they provide throughout the sales process can often be the difference between a quick sale at a great price and a slow one that sees you settling for too little. But you must pick a good one.

Should you get a seller’s home inspection?

Traditionally, the buyer commissions a home inspection. So why would the seller pay an average of $340 for one before even putting the home on the market?

Well, it’s a marketing tool. An independent home inspection can give buyers confidence that they’re not buying a money pit with hidden defects. Or if there are defects, they are clear and easy to assess. And that might embolden potential buyers to offer a higher price than they otherwise would.

Are these worth it? The International Association of Home Inspectors lays out the pros and cons from the inspector’s point of view. But it’s also revealing for home sellers.

Setting the right asking price

If you have a real estate agent, you should explore the optimum asking price with them. A good agent will understand the current dynamics of the local housing market and provide good advice. But it’s ultimately your choice.

The danger of asking too high a price is that your home might sit on the market for months or years with close to zero interest. And every potential buyer will have seen it and actively ruled it out. That presents the risk of eventually having to reduce the price, perhaps to less than you could have gotten within weeks had you listed it more reasonably.

If you’re not using an agent, it’s up to you to decide your own asking price. To figure out your property’s value, there are four helpful tips to follow.

 

 

Don’ts of selling a home

Marketers talk about the “Four Ps,” which are fundamental to success: product, price, place, promotion (aka the “marketing mix”). Let’s use those as headings to explore the things that home sellers often get wrong.

Product

Don’t launch your product (your home) before it’s ready to market. Your job is to optimize its appeal to as many people in your target demographic as possible.

We listed the basic requirements in the opening section of this article. But don’t spend too much on preparing your home for sale (see next section). The chances of getting your money back on major works (remodeling, additions, landscaping) are slim. So, stick to the basics.

 

Price

No matter what you’re marketing, getting your price point right is vital. We covered that in the last section.

Place

No, we’re not going to suggest you physically move your home. In this context, “place” refers to the environments where you are going to market your product. If you have one, your agent should handle this.

Today, an online presence is essential. You should always get your home on the Multiple Listing Service (MLS). Your agent should do this for free. But you can get a listing on the MLS for a small fee ($99 is sometimes advertised) if you’re selling by yourself. And find other online outlets, such as community boards and local media, though you may have to pay for some ads.

Consider a For Sale sign in your front yard to catch desperate home buyers who often cruise the neighborhoods in which they want to buy. You could even try delivering flyers to neighbors and leaving bunches of them in local stores.

 

Promotion

Again, this is your agent’s job. But, if you’re a do-it-yourself seller, this is the range of marketing techniques (the “promotional mix”) open to you: advertising, sales promotion, publicity (PR), direct marketing (direct mail and email) and personal selling.

Personal selling is huge if you’re marketing a home by yourself. It’s when you show people around your home and negotiate with them. Sales promotion could be an open house, complete with balloons and an invitation sign outside and refreshments inside.

Advertising is likely the most expensive but gives your message reach. Publicity (free coverage of the fact the home’s for sale in news media) is unlikely unless your property is unique or historically important. Direct marketing? Well, if friends or relations have admired your home in the past, reach out to let them know it’s for sale.

Disclosures

This has nothing to do with marketing or promotions. But it’s a legal requirement across America. Legal website NOLO explains:

“When selling your home in the United States, you are likely obligated to disclose problems that could affect the property’s value or desirability. In all states, it is illegal to actively, fraudulently conceal major physical defects in your property. Beyond this, however, most states’ laws require sellers to take a proactive role in making problems known to buyers, by making written disclosures about the condition of the property, usually using a standard form.”

NOLO also lists disclosure laws by state. Don’t get this wrong or your buyer could sue you — and likely win.

 

 

Preparing your home for sale

We already listed the minimums that most buyers are likely to require in the opening section. But this is something many buyers struggle with.

When you’re living in it, there’s absolutely nothing wrong with your home being an expression of your personality. So what if some people find your color scheme garish or your decorations too much? It’s your home.

But when you come to sell, you either cater to majority tastes you might find bland — or risk selling for a lower price than you could otherwise achieve with a narrowed pool of interested buyers.

Do-it-yourself staging

Unless your home is worth a fortune, you won’t want to get it professionally staged. But check out listings of high-end properties that have been and try to copy that look.

Find another place to store your knickknacks, ornaments, collections and any oversized furniture that makes your rooms look smaller than they really are. Similarly, store any excess clothing and shoes that make your closets look inadequate or cluttered.

Decorate in the neutral shades you see on property renovation shows and in magazines. And add splashes of color using framed prints and posters, cushions and rugs. If you don’t have those, consider buying some that you like and taking them with you to your next home. With art, make sure you don’t display anything anyone is likely to find offensive.

 

The sweet smell of a sale

Even more important than your home looking great is that it’s scrupulously clean and smells good. If you lack the time, ability or inclination to do it yourself, hire a cleaning crew. Once it’s done, keep it that way. And pay particular attention to pet smells creeping back in.

Equally important, make sure any obvious defects are fixed before you list your home — no slipped or missing roof tiles, cracked sidings or damaged panes of glass. And try to spruce up (pressure washing or painting) the exterior as best you can. That should improve your home’s curb appeal.

 

 

Enhancing curb appeal when selling a home

Remember how we mentioned eager home buyers cruising neighborhoods? It’s why For Sale signs can be a good idea in your front yard.

But such signs are useless if they stand in an uncared-for yard. First impressions count. And that’s why real estate professionals go on about “curb appeal.” That’s how attractive your home is when potential buyers first see your home from the road.

And that applies to everyone, not just the weekend cruisers. Real estate agents have endless stories of buyers telling them to drive on because a home looks bad from the road.

It’s worth investing a little in upgrading your yard. If it has a lawn, keep it closely cropped and looking lush. Prune scraggly shrubs and trees. And buy some flowers that will bring color and beauty. Potted plants and hanging baskets can add yet more color and add to your home’s attractiveness.

Unless it’s visible from the road, your backyard doesn’t affect your home’s curb appeal. But you should still keep it in good shape. Your front yard will have raised expectations that you don’t want to dash. However, keeping it neat should be enough.

 

 

Negotiating with buyers when selling a home

This is the point where a real estate agent often really earns his or her commission. It’s difficult for an owner to remain calm and professional, especially when up against a buyer’s agent.

 

Don’t always immediately accept the highest offer. You need to be sure that the prospective purchaser:

1. Is preapproved for a mortgage. It’s hard to take offers seriously from buyers who haven’t got their financing lined up. They might easily drop out later
2. Requires only reasonable contingencies or none
3. Has sufficient cash resources to provide an “earnest money” deposit (which is payable on signing the sales agreement but will be deducted from the proceeds you receive on closing). If not, why not?
4. Will take ownership at a reasonably convenient time. There should be give-and-take on both sides when agreeing on the occupancy date

When you receive an offer, you may accept it, reject it or make a counteroffer. Your decision is likely to be largely determined by how easy it is to sell homes in the local housing market at that time. If it’s hard, you may have less leverage. Indeed, you might even be asked within the negotiation to agree to contribute to the buyer’s closing costs.

 

 

Closing the deal

Unfortunately, your duties don’t end when the sales agreement is signed. You’ll likely have to make your home available to a couple of professionals, the appraiser and the home inspector. And, if you don’t have a real estate agent, you might have to field queries from the buyer and chase progress across the whole process.

Closing day is when you finally receive the proceeds of the sale. But your real estate agent’s commission, the outstanding balance on your existing mortgage and any other related amounts due will be deducted before you get your hands on any cash.

 

And that might be a relatively small sum if most of your proceeds are going straight into a down payment on a home you’re buying. Often you’ll close on your purchase on the day you close on your sale so much of the money doesn’t touch the sides as it passes through.

Legal ownership of the home changes hands on closing day. And you’ll have to sign some documents before passing over the keys to your purchaser. Only then can you claim you’ve sold your home.

The process is overseen by an independent third party, sometimes an attorney, acting as a “settlement agent” or “escrowee.” And you’ll likely have to attend its offices on closing day.

 

 

Bottom line for home sellers

When you’re ready to sell your home, it’s important to take all the preparatory steps before listing. These include researching comps before setting your price, making your home clean and presentable, and boosting your curb appeal.

If you’re a first-time seller, a real estate agent can guide you throughout the process, providing valuable advice about how best to price and present your property. And their expertise and negotiating skills could see you save their commission.

Whichever route you take when selling your home, we hope your experience will be painless and profitable.

How Much Is My Home Worth?

Andrew Martins

 

 

Your home is an asset. Know how to find its value.

 

From the moment you sign on the dotted line, your home becomes perhaps your most important investment. As you spend time and money updating and maintaining your home, its value should grow. Know that value can help as you make future decisions about your primary investment, whether it’s selling, refinancing your mortgage, or borrowing money to remodel.

 

 

 

How Much Is My House Worth?

 

If you were to list your home for sale, you would need to know what price to put on the property. To accomplish that, you or a team of trained professionals must wrestle with complicated variables that can increase or decrease a home’s value. To do that, you’ll likely rely on one of the three following valuation methods:

• Appraised value: Licensed appraisers help determine a home’s worth. They take into account different variables like the size of your home and upgrades and come up with a price. You see this type of valuation when someone is either looking to obtain or refinance a mortgage.
• Assessed value: When a property is assessed, it’s typically done by the local county tax assessor. The assessed value of a home is used to determine how much money the homeowner will have to pay in local, county, and state taxes. This method compares your home to other nearby homes and their valuation, as well as its overall location within the community, how big your home is, and what upgrades you’ve done, among other things.
• Fair market value: This valuation method compares your home to nearby properties that are similar to yours, based on things like square footage, number of bedrooms, and general location.

Factors That Determine a Home’s Value

A range of factors will raise or lower your home’s market value, and many of them are out of your control. These are things like neighborhood safety, schools, surrounding homes, and other factors of the environment. As you know from your own home-shopping experience, these are of high importance to buyers.

 

 

Location, school system, convenience

The old adage rings true—it’s all about location, location, location. Where your home sits may have the biggest impact on your home’s value. Homes in noisy, run-down neighborhoods sell for less than those in peaceful, well-kept parts of town. Prospective homeowners look for things like good school districts, public transit, nearby shopping and entertainment options, and if they aren’t relocating for a job, they want employment opportunities.

Past home sales in the surrounding area

Another factor is the recent prices that nearby homes are fetching. Typically, you would try to find houses that more closely resemble your own. Defining features like the number of bedrooms and bathrooms can help whittle down the number of potential matches, leaving you with a more accurate look into how similar houses sold on the market.

Home characteristics

A home’s size and amount of actual usable space within it are huge drivers towards a big valuation. Prices are estimated in terms of square footage. Be sure to you have a good understanding of livable or usable square feet because it may or may not include things like basements and patios.

Age plays a role in a house’s value. As buildings get older, they become less structurally sound without significant effort to keep them standing. Similarly, if a home has aging electrical and plumbing systems running on the inside, that’s going to immediately be less attractive to a prospective buyer than a similarly sized home with all new features.

Upgrades you’ve made to your home

Maybe you’ve added solar panels, on-site electric car plug-in, and fully automated lawn sprinkler systems. Perhaps you’ve invested in things like efficient heating and air conditioning, the latest home security system, and energy-saving windows. These add value to your home and make it stand out when compared with other homes for sale.

The current market

The housing market, massaged and tweaked by factors ranging from labor to interest rates, helps establish the price for your home. If homes outnumber buyers, then a so-called buyer’s market will keep prices down. Conversely, buyers outnumbering homes boosts demand and creates a seller’s market that favors the homeowner. By paying attention to how the market’s moving, you can determine the best time to sell.

How Long Should You Live in a House Before Selling?

Homeownership has long been considered a great investment, especially for young couples and families starting out. Not only is having a home beneficial for your overall health and well-being, but it will begin building equity over time. Though there are inherent risks involved with any investment, homes typically appreciate as the years go by. With the housing market and real estate prices operating in a cyclical manner, there are bound to be some booms and busts along the way, but the general consensus is the longer you stay in a home, the more profit you’ll be able to extract out of it once you do decide to sell.

Though there’s no hard and fast rule for how long you should live in a home before selling, you should consider how much you paid for the house, along with any additional costs like closing fees, real estate agent fees, and mortgage interest fees. Depending on those costs, you may want to stick with the house you bought for at least five years before re-entering the housing market.

 

 

The Bottom Line

Your home is an important investment. While housing is one of the few investments that consistently appreciates over time, external factors can have an impact on your home’s value. Like any investment, it’s imperative that you keep tabs on its market value—especially when you plan to sell.

The Features that Can Help Your Home

Sell for More Money (and Faster!)

Lauren Phillips

 

 

While plenty of people are wondering whether they should buy a home at all in 2023 in the face of challenging economic circumstances and an increasingly challenging housing market, the cycle of buying and selling homes ticks on. And there’s actually some good news for those hoping to sell a home this year: New research from home search site Zillow indicates that current home-buyers braving this uncertain market are still willing to pay for the specific features that speak to them, and certain amenities may even help a home get a higher offer.

 

After years (maybe even decades) of experts telling sellers and homeowners to make their homes appealing to the most people possible, guiding them away from distinctive or excessively personal choices that might turn off potential buyers come time to sell the house, we may be shifting in a new direction, as homes with specific features sell for more than comparable home without those features.

 

 

 

 

According to Zillow’s research, listings that mention high-end cooking amenities such as steam ovens, pizza ovens, and professional-grade appliances can sell for as much as 5.3% more than similar homes that don’t have these features (or at least don’t mention them in their property listings). Other trendy statement features such as terrazzo and a she shed can lead to a 2.5% spike in sale price, which can mean a lot of money depending on where you live—more than $13,000, if your home is close to the current average national home sale price of $535,800.1
U.S. Census Bureau and U.S. Department of Housing and Urban Development. “Average Sales Price of Houses Sold for the United States [ASPUS].” Retrieved from FRED, Federal Reserve Bank of St. Louis.

 

“Not every buyer will appreciate a chef’s kitchen or a putting green in their backyard, but those who do are willing to pay more for these personalized amenities,” said Amanda Pendleton, Zillow’s home trends expert, in a statement accompanying the report. “Post-pandemic home buyers who had plenty of time for self-reflection now have a greater sense of what they want and need in a home.”

 

 

 

 

These features may help your home sell for more money, but they may also mean it takes longer to sell the home—homes with she sheds may sell for 2.5% more, on average, but they also tend to spend extra time on the market (an extra two days, typically, Zillow’s research found). If a quick sale is your focus and a little more money is less of a priority, take note: Zillow’s data also shows that homes that sell faster than expected have more practical features, such as doorbell cameras, heat pumps, and fenced backyards.

 

Just as the right features can boost your home’s selling price, others can hurt it. According to Zillow’s data, certain finishes or features might indicate that a home is dated and in need of work—signaling to buyers that it may not be worth top-dollar. Homes with tile countertops can sell for 1.1% less than expected, and homes with laminate floors or countertops can sell for 0.6% less. These percentages may be small, but if you’re hoping to get the highest-possible offer for your home, every percentage point counts.

 

 

 

 

According to Zillow’s data, the top features that help homes sell for more than expected are:

• Steam oven | 5.3%
• Pizza oven | 3.7%
• Professional appliances | 3.6%
• Terrazzo | 2.6%
• She shed | 2.5%
• Soapstone | 2.5%
• Quartz | 2.4%
• Modern farmhouse | 2.4%
• Hurricane shutters / storm shutters | 2.3%
• Mid-century | 2.3%

 

 

The top features that can help a home sell faster than expected are:

• Doorbell camera | 5.1 days faster
• Soapstone | 3.8 days faster
• Open shelving | 3.5 days faster
• Heat pump | 3 days faster
• Fenced (back)yard | 2.9 days faster
• Mid-century | 2.8 days faster
• Hardwood | 2.4 days faster
• Walkability / walkable | 2.4 days faster
• Shiplap | 2.3 days faster
• Gas furnace | 2.3 days faster

 

 

 

 

How to Use This Information

 

Whether you’re prepping your home to sell (now, in the near future, or years from now) or simply planning some home improvement projects to increase your own enjoyment of the property, be sure to approach your home (and property listing) holistically, instead of only chasing the data. The specific features or reasons a home sold for more money or in less time might not appear in the data Zillow uses, which is why it’s important to thoroughly assess the features of your space in its own right before you make any major decisions.

Also, there will be regional differences that impact how much any of these features could impact your home’s sellability: What might be a key feature in one state may be a avoid-at-all-costs feature in another. (Think the outdoor pool: In California or Arizona, it might be a huge selling point, while in the Northeast it might be a maintenance concern for potential buyers.)

Generally speaking, this data—and the features it points to as improving home sale price—should be seen as “signals of perceived quality,” the Zillow report says. If you already have some of these features (or want them for yourself), you should install them and be sure to mention them in your property listing when you want to sell. Just don’t go out of your way to make improvements or install features that you won’t enjoy, just in the interest of potentially selling your house for a higher price. In other words, if you’ve got it, flaunt it—but if you don’t, there are plenty of other ways to help your home shine.

Should I Sell My House Now or Wait?

Mia Taylor

 

 

 

 

 

Is now the right time to sell my house?

 

 

 

 

 

 

When is a good time to sell a house?

 

Historically, spring and summer are usually the best times of year to sell a house. But beyond seasonality, there are many factors that might make selling your home a wise decision. Often the reasons are based on financial calculations, cost of living expenses and other considerations, but there may also be other factors that make selling your home the right choice. These include:

 

• If rates are low – Low interest rates entice more prospective buyers to enter the market, which is advantageous for sellers. An increased number of buyers shopping for homes often leads to bidding wars and drives up home prices, meaning you can likely sell your home for a solid profit.

 

• If supply is short – A shortage of housing inventory also drives up demand and prices for available homes. What’s more, when housing supply is low, homes on the market tend to sell much faster.

 

• If you’re ready to downsize – Downsizing may be a more budget-friendly choice than maintaining a larger, costlier home. For older homeowners, downsizing may even be a necessity.

 

• If you need to relocate – If you’re relocating to a new state for a job or want to enjoy your retirement in a new area, and you need the profits from the sale to put toward your next place, selling may be unavoidable.

 

 

 

 

 

Tips to sell your home

If you’ve considered the pros and cons and decided to put your home on the market, here are some steps you can take to get the best deal possible.

 

• Find a good agent: The advice and guidance provided by a professional real estate agent can be invaluable, particularly amid a hot or unpredictable housing market.

 

• Make repairs if needed: To help land the best offer for your home, make necessary repairs.

 

• Declutter the interior: You should also make an effort to tidy and declutter your home, allowing prospective buyers to see the living spaces clearly.

 

• Add curb appeal outside: Your home’s exterior is another part of making a good first impression, and it’s worth freshening up the curb appeal before buyers see it. That can include improving or upgrading landscaping and walkways, or even be something as simple as a fresh coat of paint on the front door.

 

• Invest in home staging: Staging a home for sale, particularly if it’s vacant, can help prospective buyers visualize how rooms can be used and present a more inviting and polished image.

 

 

 

Bottom line

 

Deciding to sell your home, whether now or later, is a major decision that requires careful consideration. Your future plans and goals should be a significant part of the equation, as well as your financial needs and the realities of the current market. If you decide to proceed with listing your home, working with an experienced Realtor is a smart move. A real estate agent who knows your community well can help you price a home effectively, which will increase the chances of a quick and smooth sale. Give me a call at 678-744-8070 and let’s discuss your options. 🙋‍♀️