While each real estate transaction is unique, the questions sellers ask are often the same. Here are some of the most common questions answered.
What should I do to prepare my house for sale?
First, remove a third of the contents from your house, from furniture to artwork to clothes in your closet. If you don’t think you can remove a third, call me and I’ll come help you. I promise, you can.
Walk around your property and try to see it through the eyes of the most persnickety person you know. Clean up all the little things that catch your eye, inside and out. Tighten loose doorknobs, straighten pictures, and take almost everything off the kitchen counters. If you can spruce up your yard easily, do so. Add a little color, if possible. (I know this can be tough this time of year.)
Then, order the inspections that make sense for your property: roof, well, septic, whole house, heating/ventilation/air conditioning, electrical, pest and fungus, etc. Consider heading over to your local government Building Department to review your property’s file so you can identify any outstanding issues you may not have known about.
How long does it take to sell a house?
Two factors determine how quickly your property will sell: price and exposure. You determine the price. Your REALTOR is responsible for marketing the property to those who may want to buy it. If a property is overpriced, it will take longer to sell. Likewise, if you don’t let your REALTOR do everything they can to sell the property, it will also take longer to sell.
Occasionally, a seller tells one of my agents that they want to sell but they want to avoid looky loos, so they forbid the REALTOR from putting up a sign, telling neighbors the house is listed, or advertising. If you want a quick sale, you need to expose your property to as many folks as you can who are interested in this type of property and ready to buy. If your property is priced right and exposed to the market, it will take about a month to sell under current conditions. Of course, this can change if interest rates shift or if your property is quirky in some way.
What’s the best time of year to sell?
Common wisdom says spring, specifically the month of May, is the best time to sell. The next best months are March, April, and June for all the reasons you’d expect—the weather is beautiful, and families like to move during summer to reduce school disruption.
All that said, the best time to sell is up to you. There are always motivated buyers around. If you need to be at a new job in a different state three weeks from now, today is the best time to sell. If, on the other hand, you’re retired and want to downsize, you can sell whenever you’re ready. I wouldn’t worry too much about trying to time the market.
How do I figure out the sale price?
Pricing is both an art and a science. Your REALTOR can guide you, but ultimately, the decision is yours. Although online estimates are a place to start, those algorithms cannot account for the specifics of your property. Many factors make up price: the current demand from buyers, the local economy, interest rates, the condition and location of the property, and wildcards like whether there’s deferred maintenance or structural deficiencies.
How is the assessed value determined?
Assessed value is the value used to determine your property tax burden. It is usually based on the fair market value on date of acquisition, plus a 2% increase per year. There are exceptions to this formula, including inheritance and major improvements (e.g., add a bedroom, renovate the kitchen). If your property is used for agricultural purposes, you may be eligible for a significant discount on property taxes thanks to the Williamson Act.
Are REALTOR commissions negotiable?
The quick answer is yes. As with so many things, you get what you pay for. With discounted brokerage fees, you may simply get your property added to the Multiple Listing Service. You may not get help with showing your property, negotiating the contract, understanding legal disclosures, and more.
Whereas, if you pay a standard fee to a full-service REALTOR, they’ll support you all the way through. They’ll advise you on pricing, negotiations, and legal disclosures. They’ll coordinate with inspectors, vendors, lenders, and escrow officers. They’ll basically hold your hand from the initial listing through signing the final escrow papers.
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.