So you’ve decided to sell your home! For whatever circumstances you are looking to sell, there are a few things you must know before selling your home. It’s difficult to time the peaks and valleys of the real estate market, but there are some factors you should consider based on the follow items we will discuss in this article.
- What are local comparable homes selling for in your market – particularly, your subdivision. If you can’t analyze this, consult with a professional Realtor to help you pull the “comps” and find out what your home’s list price would be. Having a realistic price point and current days on market it takes a home to sell will help you plan out where you are going and when. After viewing these “comps,” you’ll have a better idea of where your home fall as far as price and overall in the market. You may decide to make some renovations to your home to make it more marketable and net you more – granted you have the funds available to do so. Be sure any improvements you make will truly pay back off.
- Set a reasonable asking price. If you’re looking to truly sell your home, you want to price it to move fast. The longer a property stays on market, buyers are more apt to thinking there is something wrong with the property which will drive less and less traffic your way.
- Marketing and Being Properly Represented when selling your home is EVERYTHING! Be sure you chose the right professional who is going to return calls, keep you informed, advocate and negotiate the best deal for you and will market your property extensively in many different forms. You might have a great home, but if you can’t get traffic there and they can’t find it – it doesn’t exist!
- Make Improvements + Prep Your Home: You might get a pre-inspection to ensure no hiccups come up once you get into escrow. Now’s the time to add a little extra bark to your front yard and paint your front door. As your real estate professional, my team and I will guide you to helpful tips of things you can do to make your home most marketable. De-clutter and remove items not being used in your home. You want the space to feel open and inviting.
- Upfront Paperwork: Completing disclosures and known facts about your property is essential in sharing with potential buyers you get into contract with. It’s important you are honest and share everything you know that doesn’t work or that is a defect of the property to prevent a lawsuit.
- Profit or Loss: Analyzing your potential profits or losses on your property is important. You will need to pay off fees to close, charges from escrow and title, recording and transfer charges, any settlement charges, backed taxes or HOA dues, real estate commissions (Seller always pays both real estate agent fees), debts to existing mortgages, repairs and work completed, possibly fees requested by Buyer.
- Capital Gains Taxes: You’ll have to pay capital gains taxes on your home when sold if you sell and did not use the house for your primary residence for 2 of the previous 5 years. The exclusion amount is $250,000 for single taxpayers and $500,000 for married couples who file jointly. If you have specific question about this, consult with your CPA.