Seller
Frequently Asked Questions
Selling a house is a big undertaking. And if you want to ease the process while also maximizing profits, then being prepared is key. As a home seller, you may have lots of questions. I’ve gathered the 10 most frequently asked questions about selling a home and conducting real estate transactions, to help guide you through the process.
How Much Is My House Worth?
The big question. You can’t get too far selling your home if you can’t put a price on it. If you hire a full-service real estate agent, they will use “comps”, short for comparables, to help draw an accurate picture of what your home is currently worth. Agents also draw upon years of experience and local, neighborhood insight to price your home.
What Do Seller’s Agents Do?
Bottom line, if you’re a home seller, you want a real estate agent who sells your home as quickly as possible for as much as possible. But what specific actions does the agent take to achieve that goal?
An agent or Realtor’s first step is to price your home correctly. Next, they will help the seller with recommendations on decluttering, curb appeal, and small repairs. Then they will list the home and market the home through a mix of traditional and digital channels. Staging and showing the home comes next, followed by (hopefully!) helping the seller negotiate with buyers.
Of course, the above list is a highlight of the main things a seller’s agent will do in any successful transaction. However, there are many other details and duties an agent will complete on your behalf. Click here for a more in-depth article on everything a seller’s agent does.
How do I get my home ready to sell?
An excellent question for any seller to ask a Realtor is “what should I do to get my house ready for the market?” There is a lot of work to be done before you list your home. Everything must be done behind the scenes before you give buyers the opportunity to look at your home and start asking questions. That way, when you finally open the doors, you are prepared to make a sale then and there—and don’t need to do a bunch of stuff that you overlooked.
Your agent is the best-qualified person to help you identify what needs to be done before you sell. Keep in mind that every home is different, so the advice you get for your home might be different than the information another seller would get
How long is your contract?
Real Estate contracts can vary from agent to agent and company to company. As a general rule, most contracts fall somewhere between three to six months. You will find that homes in price points that take longer to sell usually have more extended contract periods.Some agents may offer a guarantee that if you are not satisfied, you can escape the contract. Most, however, do not let you cancel a contract just because the home hasn’t sold.
What happens if my home doesn’t appraise?
One of the things that can happen when you have multiple offers is your home sells for too much. The appraiser is unable to justify the price based on comparable sales data. Of course, there are times when an appraiser comes in low, and it isn’t justified.
In cases like these, you’ll need to know how to contest the appraisal. There are usually a couple of scenarios the rectify a low appraisal including the following:
- You challenge the evaluation, and it’s adjusted.
- The buyer makes up the difference by coming up with additional deposit funds.
- The worst-case – you lower your price.
- A compromise – you lower the price some, and the buyer comes up with a larger down payment satisfying the lender.
How To Sell A House Fast
Please understand that “fast” is a relative term in the real estate industry. For example, you could receive a great offer on day one. If you accept it, you could still be looking at anywhere between 30-45 days until the deal officially closes.
To help streamline the process to that best offer, there are some things a seller can do to sell their home “faster”: hire an agent, list the property on the MLS, list in early spring, price the home accurately, dial up the curb appeal, get a storage unit for clutter, paint the interior, stage the home like a pro, take great photos, remove pets and their odors.
Who Pays Realtor Fees When Selling A Home?
The seller pays for a real estate agent or Realtor commission fees after the sale has closed. The seller and the agent agree to the commission fee, usually a percentage of the final selling price. This number usually 6% is basically split up between the seller’s agent and the buyer’s agent.
Am I Ready to Rent?
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Should I price my home high, so I have wiggle room for negotiations?
One of the most popular questions a seller will ask a Realtor pertains to pricing and negotiating room. Leaving room for negotiations is one of the biggest home pricing myths in real estate. There is a lot of unnecessary risks that come from pricing a home too high. While you may think that you are giving yourself room to negotiate, too high a price is more likely to drive off potential buyers.
The longer you have the home on the market due to a high price, the more of a stigma that home develops. If the price is too high, you may not get any offers and be forced to relist the house for a lower price. When this happens, your home will certainly be viewed as a problem home by many buyers. Why else did you have to lower the price?
Instead of pricing high, price right. Work with your agent to find the perfect price.
How much do I have to disclose to buyers?
When it comes to selling your home, honesty is generally the best policy. There are several reasons for the honest approach. First, your state likely has real estate disclosure laws that require you to report any significant issues you know about with the home—especially if you are asked about those issues. It’s important to ask your agent about disclosure in your state. In some locations, it is caveat emptor or “let the buyer beware.” What this means is you don’t have to disclose problems, but you do need to answer questions honestly.
In states where disclosure is mandatory, you avoid the risk of a potential lawsuit by disclosing known issues. If you were to not reveal a problem to a buyer, that buyer could come back after the sale and sue you for failure to disclose.
One thing you should keep in mind about disclosure: Disclosure laws in real estate generally require you to answer questions honestly about significant issues—not to give a laundry list of minor problems to every possible buyer.