Most people think that selling real estate is easy-peasy….until they have to deal with it. Most people have this idealistic idea that selling and buying a property can be as easy as the breeze.
They think that selling a property can be as simple as marketing it, having someone interested in it, having a ‘haggle’ over the price, sealing the deal, and you are done! In reality, though, selling (and buying) a property requires tons of work, including the preparation, the execution, and the finalization.
This can be too much for some people, but the stages need to be done if you want to sell the property.
Getting the Right Help
The first thing that you need to do when selling real estate is to hire the professional real estate agents. Most home owners make the mistake NOT to hire one because they think that they can handle it by themselves.
But later on, they realize that there is so much work to do and they are overwhelmed. In the end, it takes just too much time, energy, and efforts to finally sell it, and it’s not worth it.
One of the many reasons why people don’t hire an agent is because of the exorbitant commission. A professional agent may want 5% (even up to 6%) from the sale price.
However, this can be a great idea, especially for home owners who have never done the sales before. An agent will take over your burden and make the process easy. All you need to do is let them do their work and ask for an updated once in a while.
A professional and good agent will adjust to their clients’ wishes and desires. They can help you a competitive and fair price, boosting the quick sale process.
They will do the research; you only need to sit and watch. They can help with the emotional process. They can even screen out potential buyers as they know which ones are truly interested in your property and which one isn’t really serious about the sales.
Let’s not forget that the agent will have a lot of experience and also knowledge in the field. He/she may know more about the neighborhood where the property is situated or they are more familiar with the situation.
With more experience in their hands, they should be able to help you get more money and even gain profits. In the event there are issues along the way, they should be able to cope with those problems.
Agents know what kind of process they need to go through, the paperwork they have to deal with, and even pitfalls that may arise from the real estate transactions. With the agents, you can have smoother experience without any delay or obstruction.
Another thing that you shouldn’t forget is the home appraisal. It’s usually buyers who pay for this process so they can really understand the real value of a property. The cost may start from around $350 up to $400.
Home appraisal is another crucial step in selling real estate, so buyers can really understand the property’s worth. An appraisal refers to the unbiased (and professional) opinion of a property’s value.
- Advertisement -
It’s generally required in property’s sales, purchase, or refinancing. A qualified and professional appraiser would make a report based on the inspection (usually in person type), the current market trend, research for recent sales (of similar property), and also the property’s details, covering the amenities, floor plan, condition, and size. If the appraisal value turns out to be lower than what expected, it’s possible to delay or even cancel the transaction.
In a transaction involving sales and buying, the appraisal would be required to understand whether the contract price (of the property) is appropriate, based on the features, location, and condition. It’s crucial for the buyers (and the lender service for the mortgage) so they know that they don’t borrow more than the actual worth of the property.
Understand the Property Value
In most cases when selling real estate, the value of what owners think don’t really match up with the real-life value. That’s why it’s imperative that home owners understand about real estate valuation.
- Advertisement -
Putting a value to a real estate can be difficult because every property has its own unique features, including the floor plan, amenities, lot size, and location. Let’s not forget about demand and supply either because they play such a huge role.
Naturally, individual property should go through home appraisal process so the true (and fair) value can be generated. This is also another reason why hiring professional appraiser can be beneficial.
When trying to estimate a value of a property, social trends, economic, government controls (including regulations), and environmental conditions should be considered. They would affect the 4 basic elements for valuing a property:
- Advertisement -
- It refers to the easy process where ownership rights can be transferred
- It is about the (finite) supply of the competing properties
- It refers to the need or desire for ownership, which would be supported by financial means
- It is about the ability to satisfy the future needs and desires of the owner
When you ask for a help from an appraiser to understand your property’s value, you can also check it against home value estimator. There are many services out there that provide this kind of service.
Many of them even offer online home value estimator, so buyers or sellers won’t have any issue finding out the real worth of a property. This may seem like a lot of work for selling real estate, but then again, you will have to do it if you want to go through the proper and correct step.
Getting into Negotiation Stage
When it’s finally time to sell, you will get offers from interested buyers. This is the time when you as the seller will have to deal with the bidding war. There are some effective real estate negotiation tips that you can follow when you are selling real estate.
- Have a Direct Negotiation
Technology may have replaced the traditional negotiation method by introducing texting and email, but nothing beats the old way (and traditional) system through in-person negotiation. It’s always better to have in-person and direct negotiation.
Having a face to face conversation would ensure you that everyone stays on the same page and it can avoid misinterpretation and misunderstanding. Written communication tends to cause misinterpretation and misunderstanding.
What if the potential buyers living far away? Then this is the time when technology helps out. You can negotiate by phone. You can do it over Zoom or other social media video channel, so you can ‘read’ their expressions and body language.
This kind of communication may not be as effective as the direct negotiation, but it’s still better than text messages or email.
- Have the Agent with You
When being involved in a negotiation for selling real estate, you need to be accompanied by your real estate agent. Let’s not forget that your agent also has their own negotiation skill and tricks up their sleeves. By having the agent by your side, you can combine both of your strength and abilities to strike the most promising deal.
The negotiation doesn’t have to happen one time. It may take several sessions or meetings to finally come up to a deal. During those meetings, you and your agent can work together and ‘join forces’ to get the desired result.
- Listen before You React
Negotiation can be overwhelming, especially for those who don’t really have the experience to do so. You can’t really allow your emotion to take over. When one side loses the temper, it can be ugly. When one side is emotional and even walk away from the negotiation, it can be bad and ugly for the reputation – and you definitely don’t want to have such a reputation.
It would be wise to check your emotional condition before stepping into the negotiation. Listen carefully and keep a cool head.
Listen what the others have to offer until they are done, and then you can provide reaction and answer. Even if the negotiation doesn’t work, you don’t have a bruised reputation. You can still keep your good name intact.
- Affirmative Language Is Crucial
A great negotiator is direct and decisive. You should be confident. You should use affirmative language, and minimize the use of ‘not’. You can say things like, “The property has promising features and it may need slight renovations’. It would help if you can write some of the most positive traits about the property, and how you can include those traits to the negotiation.
The Importance of House Staging
When selling real estate, house staging is pretty crucial. This is often viewed as one of the most ideal ways to sell a property quickly and with the best price tag. When you stage the property, you make sure that buyers can see it in the most complimenting way.
Without you having to do any makeover, you help them visualize the future appearance of the house. When you want to create a great first impression, you should include the staging to ensure successful sales attempt.
You can see the real value of the house when it’s clean, neat, and arranged in the most stylish way. Your property may be valuable and has a lot of potential, but it would be difficult to see such promising features if it’s in a messy, cluttered, and chaotic situation, with old furniture being packed within the rooms.
Although you can turn to professional staging service, you can actually do it on your own. Just so you know, a professional home staging service can cost you up to $1,500. So, you need to prepare such an amount if you are thinking about hiring them.
What are home staging tips that you can perform on your property?
- Clean up. Every part of the house should be cleaned up. It shows that you take care of the property well. You don’t have to buy new stuff for the staging, but make sure that the existing one is in good condition and spotless. It doesn’t hurt to make them ‘sparkle’ either. You want everything to look new and well maintenance.
- The purpose of the staging is to make the potential buyers visualize themselves within the property. They should be able to imagine themselves living there. You want to remove the keepsakes, refrigerator art, or family photos. Clean the bathroom counters from any personal item. Keep the clothes being hidden away.
- This is when the storage box can come in handy. Keep your daily stuff there, including the expired food or the kids’ toys that you don’t really used anymore.
- If you want to have successful outcome when selling real estate, focus on the house’s natural light. Add fixtures, but only when needed. Open the blinds and curtains during the open house. Turn all the lights on. It will make your house look more inviting and brighter. It also helps the potential buyers not having to search for the light switch. Clean the fixture off the grime. Dust them off. If there are broken and outdated (light) fixtures, fix or replace them.
- It should be fresh. Make the house smells nice, by adding vanilla (or other scents) scented candles or using half a lemon to wipe the (kitchen) sink. Several potted plants will create a refreshing effect. Some flowers as the centerpieces can also help. Make use of air purifiers, essential oils, and scented candles to make your house smells nice.
- Define the rooms. To attract buyers, each room should come with its defined purpose. Buyers should be able to see the square footage of the house and how to maximize it. For instance, if you have a finished basement, you can turn it into a fun man-cave or an entertainment spot. A small junk room can be turned into a laundry room. If it’s big enough, it can be switched into a guest room. A finished attic can even turn into a home office.
In the end, it does take extra effort when you want to sell out your property. But if you are able to do all of these and go through them, you should be good to go when selling real estate.