How to Sell a House

Hire a real estate agent or sell your house yourself.

Whether you are an owner-occupant or investor, selling your house can be a challenge, especially in a buyer's market where many homes in your area are up for sale. If you need to relocate quickly, you may face further challenges if you must wait to find a buyer before you can buy on a new home. Advanced research and planning, however, can help you find a ready and willing buyer able to close on your home in a timely manner.

Instructions

1. Upgrade and repair your house, which could include, but is not limited to, fixing electrical and plumbing problems, painting, replacing the carpet and installing new appliances. View each space in your house through the eyes of a prospective buyer. Make a comprehensive list of the items that need to be fixed and items that could use cosmetic touch-ups before you hire a handyman or shop for supplies. De-clutter your house, meaning throw out accumulated old and unused belongings. You should also have the house professionally cleaned if you have the budget to do so.

2. Weigh the pros and cons of working with a real estate agent versus selling your house yourself. Some real estate agents are skilled at selling homes quickly based on years of industry experience. They can list your home in the Multiple Listing Service, or MLS, and can market it to licensed buyer's agents. A real estate agent can also negotiate a sales contract on your behalf. The most significant benefit to selling your home "by owner" is saving the six percent real estate brokerage firm's commission. If you sell your home yourself, however, you must be able to show your home and screen all potential buyers without professional assistance.

3. Interview at least three real estate agents if you decide to list your home with a real estate brokerage firm. Ask members of your sphere of influence for referrals. When interviewing agents, ask them to about their experience selling homes in your area and about their sales techniques. You could also ask agents for lists of recent sales to confirm experience.

   Hire an agent with short sale experience if you know you will "come out upside down" on your sale, meaning you will owe money at closing. Agents with such experience can help you through the process of working with your bank.

4. Review a comparative market analysis, or CMA, to determine your home's listing price. Your agent can provide you with a CMA and other relevant sales data to help you set a competitive price for your home. Be advised that homes priced too high may not sell quickly in buyers' markets. You should also take your mortgage pay off balance and your agent's commission into consideration when setting your home's sale price. Sign your agent's listing agreement when you settle on the price and terms at which you will sell your home.

5. Stay in touch with your agent and ask for regular updates. You can expect him to market your home in the MLS, in advertisements, through open houses and other activities. It is important for you to know which aspects of your agent's marketing strategies to hasten the sale of your home are being implemented, and when, to determine whether he is earning his commission.

6. Make your home available to show as much as possible. Real estate agents may give you notice of a showing when possible, or they may come to your home unannounced. If you turn down an opportunity to show the home, you may be turning away a potential buyer. Additionally, you should keep your house clean and ready to show at all times. If your home is not getting any interest, consider reducing the price.

7. When your agent brings you an offer, read it closely and being willing to negotiate. Ask your agent to explain any parts of the sales contract you do not understand. If you are selling your home in a buyer's market, chances are that you will not get a full price offer. Plan to negotiate every offer you receive, even low-ball offers, especially when buyers have approved loans and can close quickly.

   Comply with the terms of the contract after acceptance, such as home inspections and additional repairs, to ensure that you close on time.

Tips & Warnings

• Stay in close contact with your agent, but there is no reason to call too often. Touching base with them weekly or every other week is sufficient.

• If you don't feel that your home is being well-represented, talk to your agent. Let them know your expectations and see how they can help you to reach them. If you are still having problems, each agent works under a broker, so you can talk to an agents broker if you have concerns that are not being addressed by your agent.

• If you are going to be in a short sale situation, meaning that you will get less for your home than what you owe on it and you don't have the money to make up the difference, be sure to talk to your agent about this and to hire an agent with experience in short sales. They can help you through the process of dealing with your bank and working though the sale.

References

• Selling Your House in a Tough Market; Alayna Schroeder and Ilona Bray