Selling Property

+ Do I Have to Hire a Realtor to Sell My House?

If you’re not sure whether or not you should hire a realtor or try to sell your house yourself, chances are very, very good you should hire a reputable local realtor. There’s no legal requirement to do so, but unless you’re particularly well-versed in the process and legal requirements, as well as currently unemployed (so you’ll have the time to devote to the process and respond to prospective clients promptly), it’s usually a good idea. Typical realtor commission runs around 6%. Most reputable realtors will detail up front what you will and won’t get for your money, but generally it includes some promotion and plenty of logistical support throughout the process. Is 6% a lot of money? Absolutely. Is it worth it to get that house sold? Almost always. There are exceptions, of course. If you’re experienced at selling real estate yourself, you may have picked up enough through repeated transactions that you can eventually handle it yourself. Contractors who regularly buy, fix up, and “flip” old houses for sale sometimes have enough experience and contacts to handle things without a “middleman.” Or, if you’re selling the home to someone you know – a family member, for instance, or close friends – and don’t really need to promote or push the property to make it happen, you may be able to work through things together without outside assistance. Even in those situations, though, it’s perfectly reasonable to hire a realtor if you choose. This is, after all, what they do. On a related note, just in case you’re new to selling property, the seller typically pays the realtor fees for the buyer as well.

+ Professional Cleaning

Yes, in theory we can all clean our own homes. There’s a big difference, however, in how much “clean” is necessary for us to feel like it’s time to order pizza and how much “clean” makes a home look like “the one” to potential buyers. It doesn’t take much grime or dust in the most subtle nooks and crannies to subconsciously alter our perception of much larger and more important features. Depending on the size of your home, you can probably find a local service to do a deep clean for $300 - $400. In the grand scheme of things, that’s a pretty minimal investment for a potentially huge return. Whether you’re relying on open house events or hoping to sell house online, cleanliness is next to profitability.

+ Staging and Photography

This is one almost every real estate professional will suggest and about half of home sellers reject because they believe they can do it on their own. They’re usually wrong. Bringing in fresh (not to mention professional) eyes to photograph your home for whatever house selling websites you’ll be taking advantage of should be recognized as a practical and essential cost of selling a house. More and more people begin their efforts to find homes for sale by searching online, and the difference between a properly framed series of high quality photographs and the well-intentioned amateur efforts of the home sellers themselves is often the difference between that home going on the “to visit” list and being forgotten within a few clicks. Professionally staged photographs of a clean, de-cluttered home – both internally and externally – aren’t dishonest any more than wedding photos or senior pictures. They allow potential buyers to project their hopes for a new home into what you’re offering instead of being distracted by your real lives. If they wanted a documentary of someone else’s natural surroundings, they’d go watch the Discovery Channel. They want to know if this new (to them) home they’re considering could become their natural surroundings. Get out of the way and let them envision it. Staging and photography can run from several hundred dollars to several thousand. There’s no reason to go crazy with it, but ask your realtor for a few recommendations and don’t be afraid to negotiate within reason.

+ Inspection Results and Buyer Negotiations

Buyers typically pay for standard inspections. If the results reveal something you may have overlooked, however, chances are good they’ll ask for concessions to offset the discover or – more often – request that you fix it as part of the deal. Because of this, you may want to hire an inspector yourself prior to listing the property. This helps prevent surprises and provides an additional incentive to potential buyers. If you’re new to selling property, you’ll quickly discover that it’s impossible to predict what sorts of things potential buyers might ask as part of negotiations. Closing costs, replacements flooring, leaving the washer and dryer, or taking out the ceiling fans… anything’s fair game. You don’t have to agree to any of it, of course, but consider ahead of time what you will or won’t do (and spend) to make a deal happen.

+ Upgrades and Repairs

Most of us have a list of a half-dozen things we’d like to eventually fix or improve in our homes. What’s easily overlooked, however, is that there are sometimes dozens of other little things that we’re perfectly comfortable with as “quirks” or “character” when we live with them every day, but which suddenly look like “flaws” or “red flags” to potential buyers when selling your home. Take a slow walk through the entire property and write down everything which could potentially be upgraded, repaired, or just “touched up.” You’re not committing to invest money in everything on your list, but it’s helpful to see them together in one place and organized. If you’ve lived in the home awhile, ask a trusted friend or family member who doesn’t live there to take the walk with you and ask them to be as blunt as possible about everything they notice. (You’ll thank them later.) Now it’s time to talk investment in the upcoming sale. Sure, in theory potential buyers could get your home at a fair price and handle the repairs or upgrades themselves. Realistically? Very few buyers want “fixer-uppers” at any level. (Think about those home shows on TV – granted, they’re not exactly “real,” but how often do you watch prospective buyers reject an amazing property at a great price because they don’t like the paint color in one of the bathrooms or the scuffed kitchen sink?) It’s not always easy to predict which upgrades will pay for themselves in a future sale, but even if you break even on a few of your efforts, you’ll have dramatically increase the odds of selling your home in the first place. You don’t have to remodel the bathroom; touching up the paint or replacing a few chipped tiles can work wonders. You don’t have to tear out the kitchen; consider new cabinet hardware and replacing the burner covers on the stove. These aren’t expensive changes, but the visual and psychological impact can be substantial

+ Staging and Photography

This is one almost every real estate professional will suggest and about half of home sellers reject because they believe they can do it on their own. They’re usually wrong. Bringing in fresh (not to mention professional) eyes to photograph your home for whatever house selling websites you’ll be taking advantage of should be recognized as a practical and essential cost of selling a house. More and more people begin their efforts to find homes for sale by searching online, and the difference between a properly framed series of high quality photographs and the well-intentioned amateur efforts of the home sellers themselves is often the difference between that home going on the “to visit” list and being forgotten within a few clicks. Professionally staged photographs of a clean, de-cluttered home – both internally and externally – aren’t dishonest any more than wedding photos or senior pictures. They allow potential buyers to project their hopes for a new home into what you’re offering instead of being distracted by your real lives. If they wanted a documentary of someone else’s natural surroundings, they’d go watch the Discovery Channel. They want to know if this new (to them) home they’re considering could become their natural surroundings. Get out of the way and let them envision it. Staging and photography can run from several hundred dollars to several thousand. There’s no reason to go crazy with it, but ask your realtor for a few recommendations and don’t be afraid to negotiate within reason.

+ The House Itself

When was it built? How many square feet? How many bedrooms? Bathrooms? How big is the kitchen? What kind of flooring? How big is the yard?

These are the basics any time there’s a property listed or a house sold. They’re important factors, but far from sufficient to truly determine value when selling real estate.

+ The Home’s Condition

On closer inspection, how structurally sound is the property? As useful as those fancy house selling websites can be, what they can’t show you is whether or not the basement tends to flood or the upstairs has too much space that’s not quite level. How old is the furnace? How reliable are the appliances that are staying? What’s it look like underneath?

+ The “Context” of the Home

You know the old line about “location, location, location.” It’s just as true when I’m trying to sell my house as it is when I’m considering opening a diner or storefront. What’s the neighborhood like? How close are the grocery stores and trendy local restaurants? What’s the public school situation? Is the area prone to flooding, hurricanes, or meteor showers?

The “where” matters almost as much as the “what.” Sometimes it matters more.

+ Sales of Comparable Homes

This is a biggie. What have other homes in the area which are similar to yours sold for recently? There’s no better general measure of potential value. It’s particularly nice if you can chart home sales over the past several years and note any patterns which emerge.

Are there other homes similar to yours for sale in the area currently? What are they asking and how fast are they selling? Many homes selling quickly can indicate a brisk market and good conditions for selling your home. Too many sitting on the market for months suggests something’s not going well and you may have to re-evaluate your expectations.