Selling a home in Oro Valley

 

1. Hire A Listing Agent

Unless you want to learn how to sell a house by owner, your home selling journey will likely begin by finding a seller’s agent, or listing agent, who is familiar with your local market. Although they wear several hats, listing agents are responsible overall for representing the seller in a real estate transaction. That includes advertising the property, creating listings, and researching pricing using comparative market analysis.

 

2. Decide On A List Price

With me by your side, it’s time to research the market and make important decisions about your home sale. Most importantly, you’ll want to determine the correct list price.

The list price, or asking price, represents the amount you, as the seller, want a buyer to pay for your home. An effective asking price considers several factors in the final sum, such as the state of the market in your area, the condition of the property, and seasonality. For the most part, the comparative analysis your agent conducts will help you understand how much similar homes in the area are going for and what you can reasonably expect to sell.

Your real estate agent can guide you to a number, but the final call rests in your hands. Also, remember that an asking price is not necessarily how much you can sell your home for.

 

3. Understand How Long It Will Take When Selling A Home

Like buying a house, the home selling process doesn’t happen overnight. However, knowing how long it takes to sell a house can help you set the right expectations and keep the sale moving as quickly as possible. Here are some of the most critical factors at play:

•  Time on the market: The longer your home stays on the market, the longer the entire sale process will take. Buyers may assume there are problems with a house that’s been listed for longer than usual. If your home has been listed for a while without any bites, you may want to budget even more time into your schedule.

•  Current market conditions: The difference between a buyer’s and seller’s markets could mean a lengthy transaction and a fast turnaround. When the supply of homes exceeds demand from buyers, sellers will have to compete with other homes for sale, which could be challenging if you want to sell your house fast.

•  Asking price: If buyers believe your home is overpriced, you’ll be hard-pressed to find a buyer immediately. That’s why determining a reasonable price with your real estate agent is essential. If your home isn’t attracting any offers, consider returning to the drawing board and offering a more competitive list price.

•  A low home appraisal: A home appraisal determines the fair market value of a piece of real estate. Home appraisals much lower than the agreed-upon price often slow the selling process or jeopardize the transaction altogether.

Although the timeline for selling a house is partly outside your control, some tactics you can use to make your home more attractive to buyers. That begins with making the home as presentable as possible.

 

4. Before Selling A Home – Renovate, Repair And Stage The Home

First-time home sellers ask first-time home sellers, “Should I renovate my home before selling?” The answer to this depends on a few factors.

Renovations make a home look more enticing to potential buyers than as-is, and the right improvements can also increase your home value. However, not all renovation projects are worth the cost, time, and effort they’ll take to complete. Your real estate agent should be able to advise you on the top areas of focus that will help your property attract the best bid.

Once you’ve completed repairs, you’re ready to stage the house. Start with a top-to-bottom cleaning and spend time on the interior and exterior. As you scrub down appliances and declutter each room, you should also depersonalize the space as much as possible. Removing unique decorations, painting over rooms with loud wall colors, and stowing away family portraits can help the buyer imagine the home as their own.

Sellers who don’t have the time or energy to stage a home themselves should try shopping around for home staging companies. These businesses help sellers furnish, decorate and redesign a physical and digital space. Adding this cost will bite your bottom line, but the expense may be worth it for sellers who need a speedy sale or want to stand out against other houses in the neighborhood.

 

5. List The Home

Now that your home is in good shape, we’re ready to list the house and attract buyers. The real estate firm or agent representing you is responsible for this step. Once they’ve shared your home on the multiple listing service – a database of every home currently for sale in the area – buyer’s agents can view your property and some basic property details.

 

6. Market Online And Offline

Advertising your home for sale helps your listing reach the right buyers and puts you in the best position when it comes time to accept an offer. Even if you haven’t sold a house before, you’re likely familiar with open houses, “For Sale” signs in the front yard, and other traditional marketing tactics.

However, sellers may need to adapt to new marketing strategies to compete in today’s real estate landscape.

Let’s look at an example. To prioritize the health and safety of buyers and sellers, many agents have conducted home showings during COVID-19 online. Online home tours use an array of technologies to imitate the experience of an in-person walkthrough.

The widespread adoption of online listings signals the importance of digitally marketing your property. Here are a few tactics you should consider:

•  Invest in professional-grade photography for your online listings: High-quality images put your home in the best light for buyers who prefer to shop for homes online. An excellent photographer can help you capture areas you and your agent may miss.

7. Settle On A Final Offer

With the right marketing strategy in place, you should begin to see offers roll in. Next, you’ll have to choose the right buyer and offer.

For many sellers, choosing which offer to accept is pretty simple, with the home usually going to the highest bidder. But there are a few other factors you should weigh beyond price. Are there any cash offers on the table? Or, is the buyer applying for a loan, and do they have a preapproval or just a prequalification? Is the buyer’s offer attached to any contingencies, and are they willing to waive what contingencies? Do the buyer’s proposed negotiations align with what you need from the deal?

With these questions in mind, you’re better prepared to accept the best offer and move toward closing.

 

8. Anticipate The Costs Of Selling A Home

Selling comes with many expenses that you’re responsible for paying. Here are the main costs of selling a house to keep in mind.

Closing Costs

Although buyers and sellers pay different fees at closing, both parties are responsible for closing costs as they finalize the transaction. Closing costs for the seller usually include attorney fees, escrow fees, outstanding HOA fees, and property taxes up to the official closing date.

You may also cover additional closing costs on behalf of the buyer. Sellers often pay the real estate commissions for both the buyer’s and seller’s agents, around 6% of the total loan amount. As part of the offer negotiations, the buyer might ask you to pay some of their closing costs, called seller concessions.

Capital Gains Tax

If your home has increased in value by more than $250,000 from the time you purchased the house (your real estate cost basis) to the time of your home sale, you should also keep the capital gains tax on your radar. A capital gains tax is an expense you would pay on any appreciated asset. Depending on your unique situation, many sellers will be exempt from paying a capital gains tax.

Moving Expenses

Even if you plan to recruit friends and family to help move you out, there’s a good chance that moving out of your home will cost you something. If the timing’s right and you can buy and sell a home simultaneously, you can have your movers move everything in one fell swoop. But if there’s a time between when you purchase and when you sell, you’ll also need to budget the costs of storing and relocating your belongings.

 

9. Assemble Your Documentation

Closing on the sale comes with its fair share of paperwork, and it’s never a bad idea to begin preparing the documents you’ll need to provide or sign.

•  Seller’s Disclosure: Also known as a property disclosure, a Seller’s Disclosure is a legal document that lists and explains any defects in the home. To protect buyers, these types of disclosures are required by most states.

•  Closing Disclosure: Though the Closing Disclosure is presented mainly for the buyer’s benefit, you may receive a copy if you’ve agreed to pay some or all of the buyer’s closing costs.

•  Deed and transfer documents: Your deed is the document that allows you to transfer title to the home buyer. Along with other transfer documents, you’ll need to sign the deed to certify the transfer of ownership.

•  Government ID: Both buyers and sellers should bring a photo ID to verify their identities while attending the closing.

10. Close On The Sale

With the rest of the process checked off, you’re ready for the final step – closing on the home. For home buyers, closing means attending the closing date. On the other hand, sellers are not always required to attend their closings. If you’ve already signed the necessary paperwork, certain states allow your attorney to represent your side of the transaction in your absence.

For sellers who have the opportunity, skipping out on the table closing presents both pros and cons. Sellers who don’t attend can avoid the risk of any final conflicts with the buyer, but some attorneys or agents may prefer for you to attend regardless. If you do not attend, your attorney or agent should be granted power of attorney to sign any remaining documents on your behalf. Remember that you may be required to participate in closing if you’re planning on renting the house from the buyer through a rent-back agreement.

With closing completed on both the buyer’s and seller’s ends, you’ve successfully sold your home to its new owner.

 

The Bottom Line

Selling a home may seem stressful, but many sellers are rewarded with a new place to call home once they’ve handed their keys over to the new owners.