Real Estate Seller’s Frequently asked questions:
Q: I am thinking of selling my home. How do I start to find out what it is worth?
A: There are times when we need to sell our home, or find out what it is worth. If you are moving, wanting to liquidate an asset such as a second home, or need to find the value in a probate estate matter you will need to get the market price of the home established. The best place to start is to contact a local realtor who can evaluate the probable market price of your home based on the condition and the sale prices of comparable homes in your neighborhood. Realtors do this all the time, and are well suited to evaluate prices of real property in your area. You can also arrange to have a professional appraisal done, and if you have employed a Realtor to help sell the house, they can arrange that for you.
Q: How do you go about setting the price?
A: The best way to set the price is to use the same method that appraisers use to establish a market value for homes in your area. In some rare cases, you may live in a neighborhood where all or most of the homes are very similar, especially if the builder was working off a small set of “models”. If that is not the case, we need to make adjustments to the price of your house by adding or taking away value from your home in comparison to homes that are most similar to yours in age and size. We will try to find 4 homes in your area that have recently sold, and adjust the price based on condition, features, recent remodeling, number of bedrooms, garage spaces, views and other considerations important to buyers. I wrote an article in my news section of this website the you might find interesting: Comps vs. Competition: two factors in pricing your home
Q: What should I look for in a Realtor listing my house for sale?
A: The most important thing is for you to feel confident and comfortable with your agent. If you know your agent is looking out for your best interests, is competent in your community, and has the time and will put in the effort to promote your home, that should be your first concern. Your home can be sold by any licensed Realtor, but the listing of your home is best suited to someone who is local in my opinion. You need someone who has eyes on your home, can secure your home after showings, and is knowledgeable about the culture and expectations of your community.
Q: If my home does not sell quickly, what do we do?
A: More than likely, it boils down to two reasons why a home does not sell. Price or Condition. Price sets an expectation with the buyer to have certain features and value. Condition can erode that expectation. If you feel strongly that your home is priced right, but there are other homes in the area that are priced lower than your home, a buyer will gravitate to those homes. A buyer does not care what you paid for your home, how much you owe or want to net on the sale. If your home is not selling, it is probably either 1) priced too high 2) does not have the features or condition that other homes have in your current price range or 3) your home does not show well due to clutter, smell or cleanliness. Numbers 1 and 3 can be fixed.
Q: What fees or expenses will I need to pay if I decide to sell my home?
A: There are costs that will be taken off at closing that the seller is usually responsible for. The commissions for the listing and buyers Real Estate Agents, a sellers Title Insurance Policy to present the buyer clean title, and any pro-rated taxes or HOA fees. In addition, there may be concessions to the buyer negotiated in the sale due to the buyer, and any concessions to a veteran using a VA loan. The escrow fees are usually split between the two parties as well.