From finding a real estate agent, prepping, staging and selling your home to packing up and moving, the entire process of getting out of one home and into another can be overwhelming. Whether you are still debating if you should remodel your home or just move or feel ready to put up a for-sale sign, this guide is a good place to start — it’s packed with advice and articles covering just about every aspect of selling and moving. It can’t do the work for you, but perhaps it will at least help you feel more organized in the middle of this inevitably messy process.
There is a lot involved in buying a house and selling a house at the same time, but there are steps you can take to be completely prepared!
Steps to Take When Planning to Sell your Home
Below, we created a guideline of detailed steps and considerations to help you through this common process.
1. Investigate the housing market.
● Price: What are similar houses in your area going for? When researching similar houses, consider the age and condition of the home, the specific area, and amenities such as schools, restaurants and other services. You can estimate your own home’s value by using the price per square foot of the houses that are similar to yours that have sold recently.
● Time on market: It is very important for you to know the average time on market for the houses in your neighborhood. Time on market refers to how long a house is listed for sale before it sells. Knowing the time on market will help you better prepare for the timing when moving and selling at the same time.
● What type of market: Is the market in your area a buyer’s market or a seller’s market? The type of market will influence your sale strategy. A seller’s market would give you the greatest advantage when selling your home. A seller’s market can be caused by low inventory and high demand, but there are other factors that could contribute to it as well. In a seller’s market, time on market will be low and housing prices will be higher. However, since you are both moving and selling, a buyer’s market has advantages as well. In a buyer’s market, sellers are more anxious to sell and you will have more wiggle room to negotiate a better price.
2. Get and appraisal and consider getting an inspection.
The next few suggestions’ order can be swapped, but the next thing you should do is to get as much information about your own property as possible. An agent can help you determine the price of your house but having hard facts ahead of time will give you an advantage with buyers and will speed up the sale of your house since your agent will have less leg work to do. Getting your house appraised gives you a great general idea of the price you can offer. Buyers who are pre-approved for a loan will know exactly what price they can afford, so this information will be very helpful to them. Additionally, having an inspection done will shorten the negotiating process, as buyers will already know exactly what is wrong with the house (and so will you).
3. Understand WHY you are selling your home.
Understanding WHY exactly you want to sell your house will help you to know what you are willing to compromise on when the selling and buying process begins. While it is important to communicate this to your agent so they understand your specific needs, you do not want to share this information with sellers when you look at houses to buy. If they know what you can compromise, you may not get the best deal.
4. Find the right agent.
Make sure you get an agent that understands what you want and is willing to listen. Make sure they know that timing is crucial, and that they are knowledgeable about your neighborhood, and the neighborhood in which you want to buy.
5. Decide what to fix and what to leave alone.
After your inspection, you should already have a good idea of what you want to fix and what you are going to leave alone. Your agent can also help you decide what repairs, if any, will give you the biggest bang for your buck. Ask your agent what repairs will increase the value of the house the most, and what repairs if left alone won’t affect the selling price much.
6. Prepare the house for sale.
Preparing the house for sale includes repairs, but also includes things like landscaping and staging the inside of the house. We talk about this all the time, but it bears repeating. Consider repainting and new carpet using neutral and universally liked colors. Anything too specific or creative might limit your buyer’s ability to picture themselves in the home – give them a blank canvas! Some sellers choose to have a house professionally staged, but if that isn’t an option, just make sure to keep your house extra-clean and clutter free. Make sure your furniture is arranged in a way that makes best use of each space, especially for rooms that are unusual.
7. Be a smart seller.
Here are some suggestions:
● Market your house to get as many prospects as possible – Use popular house marketing websites, but also consider local ads, social media and referral marketing (ask your friends to tell their friends!) Even if someone expresses interest, don’t limit your options. Keep marketing until the house is SOLD.
● Make sure contracts are complete: Read offers and contracts completely and ask your agent to explain anything you don’t understand.
● Disclose everything – No one likes surprises when they are buying a house! Unless you plan to dish out some surprise bonuses – buyers would probably like that.
● Make SURE buyers are qualified – If your buyer is not pre-qualified by a lender, then don’t even consider their offer.
● Try not to sign on your next house before finding a buyer for yours.
● This last part is the trickiest: the timing of selling your old house and buying a new one. Ideally, you want both closings to happen on the same day or within a couple days of each other, but obviously things don’t always work out this way. That is why we suggested above that you try not to sign on your new house until someone has signed on your old one. Financially, it would be better to rent a hotel for a few nights or weeks than to pay two mortgages, etc., at the same time. One option for owning both houses at the same time, if there is no way around it, is to utilize bridge financing.
Selling your home by owner
Selling your home by owner is everyone’s ideal way to sell. You save money on realtor fees, and hopefully, save time by not having to find the perfect realtor. But what most people don’t realize is that, although you are eliminating high realtor fees you still have a lot of work to do. If you want your home to appeal to a buyer you are going to need to make sure your home is in tip-top shape. This can require expensive repairs and renovations. This can start to become really pricey and you will not see a return once you sell your home, but the potential buyers will expect this.
Trying to find an actual buyer is a whole other ball game. Without the resources of a realtor, you are very limited on where you can list your home. This can take months for buyers to even be aware of your property and it can take years to sell the home.
Choosing a real estate agent to sell your home
Realtors are great because they come in, take professional pictures and basically, they take care of the entire selling process, right? NO! Although they have a great market of buyers they will require you to make very expensive repairs and renovations in order for them to list your home. Once you have made these repairs, they have to sell your home still. This can still take six months to a year. Once they have your home sold they will take a large percentage of what you have made.
Selling to a cash buyer
Whether you need to relocate because of a job, or you want a change, selling your home can be stressful and it is quite the process. Especially if you are needing to do this quickly. It is important to decide carefully what route to go when selling your home. You can try to sell by owner or use a real estate agent. These are both lengthy processes, and you may want to consider something you probably didn’t even know was an option – selling your home to a cash buyer.
What is a cash buyer?
A cash buyer is someone who will purchase your home in any condition and they will buy it as is. As one of those companies, we will pay cash so that we can purchase your home in just a speedy seven days. Since we have the cash in hand, we will not have to go through the long process to qualify for a loan. This will shorten the closing process, and you won’t have to worry about us backing out.
Why will a cash buyer benefit me?
Since you need to move out fast then you are going to need to sell fast. If you sell your home on your own or through a realtor that is going to take time. It takes months to a year to sell your house when it is listed on the market. This is because you will need to fix up and renovate the home to appeal to potential buyers. Since Pro Source Home Buyers purchases any home in any condition you will be able to save precious time and thousands of dollars on repairs.
What is the time frame of a cash buyer?
On top of the great savings listed above, Pro Source Home Buyers has the cash already waiting for you. Because of this, we won’t have to get qualified for a loan. This saves you another 30-45 days, because we will purchase your home in seven short days. This removes the sting of looking back and wondering if your house is going to sell in time. If you can sell this home in as fast as seven days, you won’t need to worry nearly as much as you would if you sold your house traditionally.
Is the sales process the same for cash buyers?
Essentially, yes – especially from a seller’s perspective.
The obvious difference is that a cash buyer will not have to obtain a mortgage, which means a lot less hoop jumping on their part. That being said, a wise cash buyer will want to do their due diligence and conduct the same checks that a lender would before agreeing to lend on a property.
What this means is things such as surveys and property searches will still be carried out prior to the sale being made, although these are usually dealt with far faster by a cash buyer than a slow moving lender.
Are there pros and cons with cash house buyers?
Now that we know what defines a cash buyer and that the sales process remains largely the same, it’s now time to look at the pros and cons of working with someone who has the money for your property ready and waiting in their account.
Many erroneously believe that selling to a cash buyer is all rainbows and unicorns, but not every cash sale goes through without a hitch. Let’s explore the advantages and disadvantages in a bit more depth.
Cash buyer pros
● Chain free: Being able to buy your home outright with cash that’s already sitting in their bank means that selling to a cash buyer does away with the dreaded property chain. The removal of a chain from the process means there will be less chance of the sale falling through because of a third party.
● Fewer hurdles: Just as removing the chain from the equation means there’s less chance of the sale falling through, doing away with the need to obtain a mortgage also has its benefits. Removing the need to raise the required finance means another huge obstacle has been dealt with from the start.
● More certainty: Cash buyers are generally long in the property market tooth and will only deal when they’re absolutely certain it’s the correct move to make. They will also be able to take comfort from the fact that not having a mortgage negates any concerns over future finances. In other words, repossession fears are not even on their radar. If they make a solid offer, the chances are good that they’ll follow through on it.
● They can buy anything: Short lease? No problem. Providing the cash buyer likes the deal on the table, they can go ahead and buy the property in question. This isn’t even an option for those who need to obtain a mortgage before moving forward, as lenders are loathed to back such purchases.
● Quicker sale: This is probably the number one reason why cash buyers are so desirable to those selling their homes, especially to those who are desperate to sell up fast. Again, removing the lender from the equation can dramatically cut down the time it takes to complete a sale, which is just what you want if you need to secure a quick move.
Cash buyer cons
● Low price: Although not set in stone, cash sales will often result in the seller receiving less than market value for their home. For some, this will be an acceptable price to pay if they wish to move quickly, but it’s important to go into any deal with a cash buyer with your eyes open to this possibility.
● Scams can happen: While rare, scams are unfortunately part of the cash buyer landscape. Happily, avoiding them is pretty easy, but people have fallen foul of scammers in the past, so be aware that it does happen. The easiest way to steer clear of scammers is to work with a reputable estate agent when selling your home. Putting your property up for sale yourself is asking for trouble. Don’t do it.
Sadly selling your home on your own, or with a realtor doesn’t really help the situation you are in. This will just end up being a very pricey and long process. If you need to sell fast and don’t want to break the bank then contact Wasatch House Partners. We will not only buy your home fast, but we will purchase the property as is. No need to make expensive changes that take months on end. We will give you a cash offer today and get you out of your home in seven short days allowing you to relocate as quickly as you need to.