Selling a home can be a complex and emotional process, filled with numerous questions and uncertainties. As a real estate company who has done hundreds of transactions, we’ve compiled the top 25 questions homeowners typically have when selling a home, along with concise and informative responses to help you determine the best decisions for you and your family.
How do I determine the value of my home?
The value of your home can be determined through a comparative market analysis (CMA), an appraisal, or using online valuation tools. Consulting a real estate agent or active investor can also provide insights based on local market conditions.
It's important to note that utilizing "Zestimate" and other AI-generated algorithms to determine the value of your home is not best practice. Oftentimes, these algorithms are based on general factors in a market and do not take into account property condition, decreasing sales, high days on market and/or low buyer demand. It is best recommended to speak with a professional who buys and sells real estate regularly.
Ultimately, any determination of value prior to receiving credible offers from buyers in writing is purely speculation. A houses value is most simply worth what buyers are willing to pay for it.
What is the best time of year to sell my home?
Spring and summer are generally considered the best times to sell a home, as the weather is favorable and families prefer to move before the new school year and major holidays. However, market conditions and personal circumstances will also play a more prominent role. Major events, interest rates, and local demand fluctuates often. It's important to speak with professionals to fully determine when the best time to sell could be for your unique situation.
How long does it take to sell a home?
The time it takes to sell a home varies based on the local market, the condition of the home, and the listing price. It will also be greatly dependent on the direction you choose to go with selling your home.
If you choose to go on the open market with a realtor, the average time frame from signing the listing agreement to closing & getting paid will be around 45-90 days in most cases. If you choose to sell directly to a cash homebuyer, you typically can close on your timeframe. This could be as long as you need to find another place, or as fast as just a few days if you have no time to waste. If you are looking to sell for cash ASAP, feel free to fill out our form and receive your no-obligation cash offer.
Should I make repairs or sell as-is?
Doing any type of repairs and improvements can increase your home's appeal and value if done correctly and effectively. However, if you need to sell quickly or the cost of repairs is too high for your family, selling as-is might be the best option for you.
How do I prepare my home for sale?
An easy rule of thumb to get prepared for selling is to clean and declutter your home, make necessary repairs, stage the rooms to highlight their best features, and enhance curb appeal to make a positive first impression. Again, this may cost some money and take some time. If you are in a situation where selling the home as-is makes more sense for you, it's best to research a cash homebuyer that will buy the property as it sits and help you get the most money you can for it, without doing any work.
Do I need a real estate agent to sell my home?
While it's possible to sell your home on your own (FSBO), a good real estate agent can provide expertise, marketing resources, and negotiation skills that can result in a higher sale price and smoother transaction. However, going this direction can cost you up to 10-12% of your net proceeds on the completion of the sale.
Selling yourself is something more homeowners are starting to consider, in order to keep more of their profits at the closing table. Reaching out to a credible cash homebuyer could be a optimal solution for your family, depending on your situation. If you'd like to receive a free, no-obligation offer and consultation feel free to fill out our form and our team will get in contact with you.
How much will it cost to sell my home?
Costs will be dependent on how you choose to sell your home. If you decide to go on market with a realtor, you can expect to pay real estate agent commissions (typically 5-6%), closing costs (2-5%), repairs (1-3%), staging, and any outstanding mortgage balance. This does not take into account any price reductions or seller concessions that will have to be offered in order to actually close. It's important to note, none of this is publicly visible on public market places such as Zillow or Redfin. Meaning a "sale price" and what the homeowner actually walked away with could be vastly different numbers. If you choose to sell directly to a cash homebuyer, there will be no commissions paid and often times, they will pay all of your selling costs.
What is a home inspection and should I get one before selling?
A home inspection is an in depth evaluation of a property's condition. While not required, getting a pre-listing inspection can identify issues that might arise during the buyer's inspection, allowing you to address them in advance. If you are looking to sell your property as-is, you likely will not want to concern yourself with getting an inspection, as it will run you between $400-$700. It's also important to note that even if you choose to sell as-is, a buyer still has the freedom to request an inspection period and choose not to move forward based on those results.
What disclosures am I required to make?
Sellers are typically required to disclose known defects and issues with the property transparently, such as structural problems, past flooding, and environmental hazards. Disclosure requirements vary by state.
What is an MLS and how does it help in selling my home?
The Multiple Listing Service (MLS) is a database of homes for sale used by real estate agents to share listings and find potential buyers. Listing on the MLS increases your home's visibility to a larger audience. These listings get shared across all consumer friendly platforms such as Zillow, Redfin and Realtor.com. The MLS can be an effective tool for selling your home, but success on the open market is ultimately dependent on the realtor choosen by the homeowner. A good or bad realtor can make or break a sale.
What are closing costs and who pays them?
Closing costs include fees for the appraisal, title search, title insurance, taxes, and other expenses related to the sale. Both buyers and sellers have closing costs, but the specific costs and who pays what can vary. If you sell with a realtor, you can expect to pay around 2-5% for closing costs. If you sell directly to a cash homebuyer (like us!), they often will cover these costs for you.
How do I handle multiple offers?
First and Foremost - an offer is only considered a fully written offer with buyer signatures completed. Verbal offers do not hold weight, until translated into writing. Once you have the offers, review each offer carefully, considering the price, contingencies, financing, and closing timeline. Your agent or real estate consultant can help you negotiate and select the best offer.
What is a contingency?
A contingency is a condition that must be met for the sale to proceed. Common contingencies include financing, home inspection, and appraisal contingencies. Most of the time, if you choose to sell on the open market, buyers offers will contain multiple contingencies. If you are looking to sell as simply as possible, with the most certainty, it may be a good option to consult a local cash homebuyer to minimize contingencies in your sale.
What happens during the closing process?
The closing process involves signing the final paperwork, transferring funds, and officially transferring ownership to the buyer. It is VERY important that this only takes place at a neutral title company or attorneys office. The title company is there to protect both the buyer and the seller in the transaction. They make sure all the paperwork is completed correctly, title is clear for the buyer and all of the money get paid out correctly to all parties involved.
Can I sell my home if I still owe money on my mortgage?
Yes, the proceeds from the sale will be used to pay off the remaining mortgage balance. Any remaining funds will go to you.
How does selling a home affect my taxes?
You may be subject to capital gains tax on the profit from the sale. However, there are exclusions available if you meet certain criteria, such as living in the home for at least two of the past five years. It is best practice to consult with an accountant during the sale to see what tax responsibilities you will have or exemptions that you may qualify for.
How do I handle lowball offers?
It is important to remember that any offer you receive has someone willing to write you a check on the other end. That being said, the smartest thing you can do when trying to sell is consider all offers carefully and respond with a counteroffer that is closer to your desired price. Lowball offers can sometimes be negotiated into acceptable deals if all parties communicate clearly with each other. Completely disregarding any credible offer is never going to be best practice for selling a home effectively.
Can I sell my home if I’m going through a divorce?
Yes, and this is often common practice with families going through a divorce. It is important to understand that it may require additional legal considerations and cooperation between both parties. Consulting with a real estate professional and an attorney can help navigate this process correctly.
What is the difference between a buyer’s market and a seller’s market?
In a buyer’s market, there are more homes for sale than buyers, leading to lower prices. In a seller’s market, there are more buyers than homes for sale, resulting in higher prices and faster sales. It is important to consider what market we are sitting in when you are looking to sell, as it will drastically impact your strategy, as well as pricing.
What is an earnest money deposit?
An earnest money deposit or "EMD" is a sum of money provided by the buyer to show their serious intent to purchase the home. It is typically held in escrow and applied to the purchase price at closing. The general rule of thumb for an average EMD is about 1% of the sale price.
We hope some of the common questions we get from homeowners, along with answers from professionals in the industry have helped you on your journey! With over 25 years of combined experience, Modern Touch Real Estate is commited to helping homeowners both maximize the value of their property, as well as providing an A+ customer experience, start to finish. If you are considering selling your property as-is for cash, we encourage you to request a FREE, no-obligation offer from our team. Come experience the difference for yourself!