Selling your home isn’t simply about attaching a price tag to it and hoping the best offer comes through. There are a number of factors to take into account ranging from calculating the total cost to understanding the local housing market trends.
One thing to bear in mind is that the highest offer may not necessarily be the best one, nor does it mean that you stand to earn the most money from it. Your ultimate goal should be to get the most reasonable price from the offer. Here are some tips to get you started.
Understand the Factors that may Have an Impact on Home Value
Your location, any home upgrades or renovations you may have done recently, the local housing market climate, and even the economy could affect your home’s value. It’s important to take note of these before you put your house on the market. Other factors such as how long you’ve been living in your home and your reason for selling it may also impact its overall value.
Familiarize Yourself with the Local Housing Market
Having a basic idea of trends and developments in the local real estate market can equip you with the right information and tools to negotiate with interested buyers.
Find out if you’re making the move in a buyers’ market or a sellers’ market. A buyers’ market means that there are more homes to sell than there are buyers, which means the demand is pretty low and that sellers may accommodate offers that are slightly lower than their actual selling price just to make a sale.
On the other hand, you will find more buyers than there are available homes in a sellers’ market. The low inventory and the higher demand can be an opportunity for sellers to accept offers that are considerably higher than their actual selling price.
Given the current climate in your local housing market, you can ask your Realtor for advice on the next steps to take in your home-selling transaction. They can also help you in finding out how quickly home prices are rising. A sharp increase may indicate that buyers are paying more for available homes in the market.
Time the Sale Well
Timing plays a large role in the selling game. Determine the right time to go ahead and sell.
Pre-pandemic, spring was the default season when real estate transactions were at their peak. The more comfortable temperatures and better weather conditions enabled homebuyers to go out and attend open houses. The onset of the COVID-19 pandemic broke the seasonal cycle, however, as state-enforced precautionary measures resulted in a transition from physical home viewings to virtual home tours. The market climate is now a more dependable factor than the atmospheric climate in choosing the best time to sell.
The amount of equity you have put up for your home can also be an indicator of the best time to make the sale. If the equity you raised is enough to cover any current mortgage, selling costs, closing costs, and moving costs, then you can consider planning for the sale of your home. Review your budget to determine how much you can set aside for these costs, as well as any repairs you may have to do prior to listing.
Consider Contingencies
Contingencies are natural components of negotiation in a real estate transaction. Make sure you understand these contingencies laid down by the buyer and see which among these are acceptable and which need more negotiating. Some contingencies a buyer might offer include:
- Financing contingency. This lets a buyer rescind their offer if they find out they are not qualified for a mortgage.
- Home sale contingency. This means that if the buyer is not able to sell their home first, they can walk away from buying yours.
- Inspection contingency. In the event that a home inspection raises concerns or issues that have not been previously disclosed, this contingency allows the buyer to cancel or to move closing to a later date. According to experts, this is the most common reason why many home sales tend to fall through.
Fix Only What Absolutely Needs Fixing
A home appraisal conducted prior to selling will reveal certain flaws and damages to the home. Some of these may need costly repairs; others, not so much. Best to concentrate on upgrades and repairs that will improve the safety, structure, and functionality of your home instead of aesthetic improvements. The bottom line: keep upgrades basic.
When in doubt, speak with your agent
Find an experienced agent to take care of the details that can easily be missed. Here in San Francisco where the market is always hot, navigating it won’t be so daunting when the right team of agents has your back.
San Francisco is the milieu of Nina Hatvany and the rest of Team Hatvany. Their expert guidance will help you land the best deal for your home. Call them at 415.710.6462 or send an email to team(at)teamhatvany(dotted)com to get started.