Selling your house can be both exciting and stressful. Knowing what to expect can reduce tension and allow you to have the best experience possible. Here’s what you’ll need to do and need to know.
- Select a REALTOR. Step one in selling your house is signing a listing agreement that grants your REALTOR the exclusive right to sell your house. The terms of the agreement include the length of the engagement, the REALTOR’s compensation, and more.
- Gather documents. Real estate transactions depend on the sharing of a lot of information. Collect reports and other documents pertaining to any property inspections you’ve had, any work you’ve had done on the house, and all other information prospective buyers might ask for. Include utility bills and warranties on anything that goes with sale of house, such as a home warranty, appliance warranties, and warranties on any work done.
- Order a pre-sale home inspection. I strongly recommend ordering inspections as early in the home-selling process as possible. Inspection reports, even if they include bad news, are always useful. In addition to a home inspection, you’ll want specialty inspections like septic, pest and fungus, roof, and more. Inspection reports will help you establish the list price and, because they provide information up front, they reduce the chance that a buyer will want to renegotiate an agreement later.
- Determine a competitive price. Work with your REALTOR to set a list price as close to market value as possible. If a property is overpriced, it becomes shopworn. Even after price reductions, REALTORs and prospective buyers rarely revisit a property once they’ve crossed it off their list.
- Buy a home warranty. Home warranties are usually sold to sellers at a low cost with the fee to be paid once the property sells. These warranties give sellers limited coverage during the listing period. (Just make sure the warranty is transferable to your buyer.)
- Allow a lock box to be installed. A lock box contains a key to your house. It is affixed to your house—usually your front door—and only accessible by a licensed real estate agent who is a member of the Multiple Listing Service (MLS). A lock box allows agents to show properties without having to go to the listing office. This convenience makes it easier for REALTORS to show your property, and that’s good for you.
- Complete a seller disclosure. It’s important to list property defects of any kind on the transfer disclosure statement (TDS). If you’re contemplating whether to disclose something or not, err on the side of disclosure. Better to share everything before escrow closes rather than hearing from a buyer’s attorney after the close of escrow.
- Review homeowners association requirements. Contact your HOA for copies of the current agreement and minutes from the last several meetings. Sometimes, HOA boards pass new requirements or agree to one-time costs that prospective buyers should know about.
- Hire a professional photographer. Prospective buyers often decide whether to give your house a second look based on the photos they see. Your REALTOR will enter information (including photos) into the MLS database, and that information is picked up by Zillow. As they say, you only get one opportunity to make a good first impression.
- Invite buyers with welcoming language. Describing your house in a way that piques people’s interest can be harder than you’d think. Work with your REALTOR to put your property in the best light.
- Prepare for an open house. For a detailed description of how to prepare, visit selzerrealty.com/2017/03/20/getting-ready-for-a-successful-open-house. Here are the Cliff’s Notes: complete any repairs and improvements, declutter, deep clean, depersonalize, make arrangement for pets, stage the home, secure valuables, maximize curb appeal, and make sure the place smells fresh and clean.
- Review and negotiate offers. Remember, the highest price isn’t always the best offer. Your REALTOR will help you weigh factors like the length of the escrow or required repairs against the proposed price, so you can pick the best offer.
- Prepare for closing and moving. Answer any remaining questions the buyer may have. Don’t forget to bring a photo ID when you meet with the escrow agent to sign closing documents. Save a copy of the sellers closing statement (HUD1) and give it to your tax professional for next year’s tax return. Then, pack your belongings, shut off all utilities, and bid farewell to your property.
If you have questions about property management or real estate, please contact me at rselzer@selzerrealty.com or call (707) 462-4000. If you have an idea for a future column, share it with me and if I use it, I’ll send you a $25 gift certificate to Schat’s Bakery.