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How to Get Your House Ready to Sell
If you're planning to sell your home soon and aim for top dollar, it's essential to take a step back and assess what you're offering. Is your home in the best shape to impress buyers?
Over the years, your home may have experienced some wear and tear. While you might be accustomed to that creaky floorboard or sticky door, first-time buyers might not appreciate these flaws and could have plenty of other options.
To make your property stand out from the competition, consider making a few adjustments to present it in the best light. Here’s how to ensure your house is ready to sell, along with some things to fix and upgrade that will pay off when you receive an offer.
Tally the Age of Various Items
No matter how great your home looks at first glance, savvy buyers will inquire about the age of various parts. Since estimates won't suffice, gather some paperwork to prepare your house for sale.
If you've purchased your home in the past few years, check your home records or seller’s disclosure for the age or last repair of significant items (such as your roof, HVAC system, water heater, and gutters), or dig up copies of your maintenance records or receipts.
The lifespan of items depends on various factors, such as the model and how well they've been maintained. However, you can get a general idea of the average lifespan from the National Association of Home Builders. For example:
- Wood shingle and shake roof: 15 to 30 years
- Central air-conditioning unit: 15 years
- Electric water heater: 14 years
- Gutters: 30 years
Conduct Your Own Walk-Through
Go through your home, room by room, and look for signs of damage that might lower its value. Common problem spots include:
- Wood rot around outside door frames, window ledges, and garage doors. Condensation and rain can cause these areas to weaken and rot.
- Water stains on the ceiling or near doors and windows, indicating a leaky roof or rain seeping in from outside.
- Leaks under sinks or around toilets.
- Bulges under carpet or discoloration on hardwood floors, which can indicate flooding problems or an uneven foundation.
Next, test the functionality in every room. Look for cracks visible in the walls and floor, doors that don’t shut properly, broken handles on cabinetry, and anything that doesn’t work perfectly. Don’t forget to inspect the outside, as the exterior is where buyers will make their first impression.
Since you might be used to some of your home’s quirks, it might help to get your agent’s opinion on what should be fixed.
Consider a Pre-Inspection
After conducting your own walk-through, you may want to have a professional take a second look before deciding you're ready to sell. Professionals can spot flaws you might have overlooked. You can enlist a real estate agent or hire a home inspector to do an inspection (or pre-inspection) to identify problems from bad wiring to outdated plumbing.
While the cost varies, people typically pay $300 to $500 for a home inspection. It may cost a bit, but it will provide peace of mind knowing you’re not in for any surprises down the road. Having a home inspection report handy to show buyers can inspire confidence that they aren’t in for any nasty surprises as you move toward a deal.
What to Renovate Before You Sell
Once you know what in your house needs repairs or upgrades, decide where to invest some cash. Not everything needs to be done before your home is ready to sell. Certain fixes will give you an edge over the competition, leading to more and better offers. Remember, real estate is an investment!
Focus on fix-its that are less susceptible to personal preferences and that buyers like to know are in good shape. For example, upgrading hardwood floors reaps a high return on investment compared to other home improvement projects. Other top-rated upgrades include new insulation and a new roof, as buyers appreciate knowing they have a solid roof over their heads.
With the help of a renovation calculator, you can determine and prioritize the improvements that would yield the maximum return on investment (ROI), improve the marketability of your house, attract potential buyers, and potentially command a higher selling price.
How to Find the Right Real Estate Agent
Once you've decided to sell your home, finding a trusted guide is essential. That means it's time to find a real estate agent!
Here’s how to find the right real estate agent to help you navigate this important transaction. Not all real estate agents are created equal, and not all are Realtors®—a designation reserved for members of the National Association of Realtors. Here’s how to find an agent who’s right for you.
Gather Referrals
There are many real estate agents out there, so how do you choose? Ask your friends for referrals, but don’t pick an agent purely based on rave reviews. The old mantra of “location, location, location” applies to real estate agents as much as homes.
You want an agent who is very familiar with your area. If they’ve spent time in the area, they’ll know how to market your house there. So, a better question to ask your friends than “Know any real estate agents?” is, “Know a real estate agent who’s sold any properties in my area in the past few years?”
Test Their Communication Skills
Once you have some potential candidates, email them or call their office, then wait. This is your first test of a key component: How responsive will your agent be? Ideally, they should get back to you the same day.
If it takes longer than four business hours without a decent explanation, be cautious. Imagine if you’ve got competing offers on the table, or if some problem comes up with the home inspection. You don’t want to wonder where your agent is and whether you’ll hear back from them!
Questions to Ask a Real Estate Agent
Your initial conversation with a prospective listing agent should be like any job interview: Don’t be afraid to ask tough questions right off the bat. A good agent should know their stats, and any hesitation could mean they’re hiding something. Here are some questions to ask:
- How long have you been in business? Aim for agents with at least two years of experience, enough time to learn the ropes and finesse their marketing and selling plans.
- How many houses did you sell last year? Look for agents with double-digit sales.
- What percentage of your listings do you sell? Ideally, you want an agent who has sold an average of 60% to 80%.
- What is the average list price to actual sales price ratio for your listings? This can fluctuate by market, but look for high numbers. A low bar of 95% is acceptable for even the worst market conditions.
To sell a house quickly and get the best price, you need to reach as many potential buyers as possible. Ask these questions to gauge an agent’s marketing abilities:
- How will you market my home? An agent should use a good brokerage website, national listing portals, and an email subscription list.
- How will you use social media? They should use at least Facebook and Twitter to market listings; bonus points if they post photos on Instagram.
- What offline materials do you use? While most marketing is done online, your agent should still use methods like fliers, yard signs, and brochures, especially at an open house.
- How much do you spend on advertising? Advertising costs vary widely by area, but agents should consistently spend a portion of their business expenses on advertising. Ask for a set amount to know if they’re doing that or not.
Finally, don’t assume the most inexpensive agent is the best choice. While agents work at different price points, and some may take a lower commission, they should be confident enough in their abilities to stand by their prices. When discussing terms, ask agents if they’ll work on a discount. If they agree too quickly, it might be a red flag.
If an agent can’t negotiate to protect their own money, how likely are they to go to bat to protect your money? It’s a test of confidence in their own services.
How Much Is My House Worth?
Putting a price tag on a home you're trying to sell can be tricky. It's your home, filled with memories, hopes, and dreams, which can cloud your judgment and lead to the wrong price.
There are consequences: Price it too high, and your home could sit on the market for months and maybe not sell at all. Price it too low, and you could miss out on a significant amount of money.
Here’s a guide to help you through this critical decision and pinpoint a price that’s just right.
Why What You Paid Doesn’t Matter
You might have a dollar figure in mind based on what you originally paid, plus a little extra. Because homes appreciate, right? Maybe yes, maybe no. While an increase in value is nice in theory, ultimately, it’s up to the market.
Think of it this way: Would you buy a banana for $1 if those same bananas were on sale down the block for 69 cents? Of course not! And, of course, a home isn’t a banana.
Market values fluctuate—both up and down. This can work for you or against you. But all that matters on the open market is what buyers are willing to pay now.
Use Comps, AVMs, and Your Real Estate Agent
The best way to get a handle on your home’s sales price is by looking at the prices of similarly sized homes in your neighborhood—known as “comparables,” or “comps.” For example, if a house near yours with the same square footage and number of bedrooms and bathrooms, and in similar condition, sold for $230,000 within the past three months, your own price will likely be in that ballpark.
For a quick snapshot, several websites offer automated valuation models, or AVMs, where you type in your address and get a price based on an algorithm that factors in comps in your area. But AVMs are just a starting point.
No one has actually seen your house, so an AVM can’t give you an accurate price. That’s why you need your agent to visit your home, so they can factor in your home’s unique strengths and weaknesses along with comps to come to a better estimate.
When your agent tells you a price, check it. Ask how they came up with the amount, and look into the comps in your area yourself. Once you review the information, you’ll be able to see a price range for yourself, so you won’t feel like you’re just having to blindly trust your real estate agent.
Factor in Upgrades
You might have invested $10,000 into a brand-new chef’s kitchen or $15,000 to install an in-ground swimming pool. So it stands to reason that you’d make that money back when you sell, right?
Well, not quite. Surveys show that your return on investment for home improvements depends on the type of renovation and how much prospective buyers want it in your area.
Refinishing hardwood floors, for instance, will reap a much larger return compared to converting a basement to a living area. The harsh truth: Not everyone will fall in love with your five-seat built-in hot tub. So do your research and find out what those upgrades will really get you.
Leave Some Wiggle Room
Most buyers love to negotiate when you’re trying to sell your house. So it helps to “let them win one.” Instead of starting with the absolute lowest price you can afford, add a bit of a cushion.
How much? Round off your asking price in $5,000 increments. For example, if you want $347,000 for your house, you can play it safe and round up to $350,000.
Also, keep in mind that many first-time homebuyers may have a hard time coming up with cash for closing in addition to their down payment. Offering to cover closing costs—while sticking to a higher asking price—might help seal the deal.
Price with Internet Browsing in Mind
Once you find a ballpark price you’re happy with, it’s time to fine-tune it. Keep shoppers’ online search parameters in mind—small differences in your price can make a big difference in your exposure.
Homebuyers typically fill out an Internet form with a minimum price and maximum price. If you’re a dollar outside of that range, it’s like your house didn’t exist—they’ll never see it.
For example, price your home at $300,000, and you could miss out on many people searching in the $250,000–$299,999 price range. So if you’re on the cusp, consider taking it down a notch to capture more attention. Remember what we said about padding? It cuts both ways.
While choosing a price can be daunting, consider this small loophole: Some brokerages offer a “soft” rollout plan where they highlight the house as “coming soon” online, without officially listing it in a multiple listing service. This buys you time to test the market, see if people will click at that price, and adjust accordingly without having to officially lower or raise your price on the record.
Real Estate Ad Ideas to Attract Buyers
The real estate ad isn’t just a formality. Long before homebuyers set foot in your place and make you a terrific offer, they have to know you’re selling it first. And it’s up to you and your real estate agent to spread the word. But how?
Here are some ideas on how to put together an attractive online real estate ad that will win you plenty of admirers and prospective buyers.
Take Great Real Estate Photos
Online house shopping is a lot like online dating. Everyone will tell you they loved your bio, but really, they’re just looking at the photos. To show your home in the best light, consider hiring a professional real estate photographer.
Professional photos stand out over amateur snapshots. A pro will find the best angle, make your small half-bath look spacious, and even touch up some of the photos to make them truly pop online. Ask your real estate agent for suggestions, or look through the Real Estate Photographers of America and International.
If you (or your agent) want to take a crack at snapping some images yourself, here are some tips from a professional photographer:
- Store away everything you can before you start shooting. Movable art, throw pillows, brightly colored small appliances, and other knickknacks might make your home look cozy and inviting to buyers in person, but those small items don’t always translate well in photos. For your photos to look the best, you want to draw the eye to the key elements of the room—such as the fireplace or the huge bay window. Too much going on in each shot? Those eyes won’t know where to focus.
- Don’t use your smartphone. This is your house you’re selling, remember? For the best shots, the camera and the lens matter. Aim for using a digital camera with HDR (high-dynamic-range mode) capabilities, and take photos with a wide-angle lens that can capture the whole room without making the space feel squished.
- Try shooting from every viewpoint imaginable—and then add a few more that you might not have originally imagined. To make rooms appear more spacious, crouch down and snap at knee level. Experiment.
- Edit and retouch your photos using software such as Photoshop—but remember, less is more. Brighten a photo if it looks too dark but never touch up so much that it is not realistic. Stick to the basics and add just enough to enhance the photos, otherwise buyers may think you have something to hide.
Consider Adding Video or a 3D Tour
To make your listing stand out even more, consider including a video (using a camera to record a video as you walk through the home).
An even more sophisticated option is a 3D tour. This is where a professional photographer uses a special 3D camera to capture images of the home, which are then uploaded into a software program that renders these visuals in three dimensions.
Write a Winning Description
After the photos, buyers will read your listing details. At the top of your listing should be the basics: number of bedrooms and bathrooms and the square footage. Next come the stand-out features, such as interior exposed brick, a fireplace, an outdoor kitchen, or any upgrades.
While your real estate agent will usually write your listing, you can (and should) have final approval. Certain words reel in buyers better than others. Here are five words correlated with a higher sales price:
- Granite
- State-of-the-art
- Corian
- Maple
- Gourmet
These words work because they’re specific. Granite countertops give you a good idea of what that kitchen is like, as do maple floors. Terms that are vague or appear to be trying too hard will backfire. Below are five terms correlated to a lower sales price:
- Fantastic
- Spacious
- !
- Charming
- Great neighborhood
So keep an eye out for adjectives that might turn off buyers.
Build Buzz on Social Media
To get the word out, your real estate agent will post your real estate ad in the local multiple listing service, worldwide sites such as Realtor.com®, and their own brokerage business website. To add to the potential buyer pool yourself, get to sharing. Social media isn’t only for pictures of cats and political opinions; you can find a buyer for your house, too.
Using social media smartly to promote your listings is essential. Your friends and acquaintances will take a special interest in helping you out—make doing so just a click away. Even if they aren’t looking to buy, someone in their own network could be, so encourage your friends to share the post and pass it along. While Facebook is a tried-and-true favorite for posting listings, you can also use Twitter or photo-driven Instagram to great effect.
Market Offline, Too
Even in today’s Internet-obsessed world, you and your real estate agent need to do some offline marketing as well. Yard signs may not be the reigning house marketing tactics anymore, but it’s still a good idea to let your agent pop one in the yard. A study found that more than a third of buyers still relied on yard signs to help their search.
Bottom line: You never know which avenue will reach the right home buyer who will lay eyes on your home and fall in love. And all you need is love—however you find it. Also, make sure your lawn is mowed, and if you have a pool that’s open, keep it sparkling.
Once you’ve gotten your home looking fantastic both inside and out, it’s time to break out your camera and spread the news (on social media, too) that it’s up for grabs: with an eye-catching real estate ad for your open-house flyers or open-house signs, of course!
Home Showing and Open House Advice
Having an open house is an exciting part of selling a home, but it takes a lot of work to get there.
Once you’ve made repairs, picked a real estate agent, and decided on an asking price, your home is almost ready for market—but first, it needs some primping and polishing. This is where an open house for potential buyers comes into play.
To host an open house and show your home in the best possible light, it’s worth following these savvy seller tips and step-by-step advice.
Home Security During an Open House
When you’re living in your home, a bit of clutter is business as usual—but for a buyer, a mess can spell doom.
Clutter can make even spacious real estate look cramped and dirty, distracting from a home’s assets and putting off potential buyers. Smart open house ideas include paring down your belongings by going room by room and boxing up anything you haven’t used or worn in at least six months.
One area where you’ll want to be merciless as you stage for an open house is your kitchen counter. Remove everything but your coffee maker, so that people (and potential buyers) will think, “Wow, such a huge kitchen!”
To allow home buyers to really envision themselves living there, you’ll also want to depersonalize by removing items such as framed photos, report cards on the fridge, or your kid’s collection of “Star Wars” snow globes. But don’t declutter by just stuffing those things in the closet.
Closets often end up being the dumping ground to store all the clutter that was visible. This is never good, because closet space is an important buying consideration. Potential owners need to see the true amount of space in each closet, and buyers are going to open every door to peek inside and gauge how much space is available.
Instead, it’s a good idea for sellers to stack boxes neatly in the attic, basement, or, best of all, a storage facility. The perceived extra space you add to your home could be worth the rental cost and then some.
Home Staging Tips
These days, home staging is all the rage in the real estate world: On average, staged homes sell significantly faster and for up to 20% more than ones where home sellers just kept their furnishings in place.
While you can hire a professional stager for your open house, you can also use a few of their tricks and tips for free—and maybe snag a buyer fast.
For instance, hanging curtain rods higher can give the illusion of taller ceilings. Well-placed mirrors can make rooms appear bigger and brighter during an open house.
Want to go the extra step as you prepare for your upcoming open house? Paint your walls white, layer in neutrals, then add pops of color with pillows or a cashmere throw on the couch for a cozy glow.
Move the furniture toward the walls during an open house to make it feel like there is more space. Push furniture out and away from each other to open up floor space, but be careful to keep window space clear.
Conceal flaws whenever possible; if the view from a window isn’t great, put up sheer curtains so that the light comes in but the scenery stays hidden.
And as with all your possessions, think “Less is more,” although stagers do sometimes strategically add furniture (such as a cozy reading chair in a bedroom corner) to give a future buyer the illusion of more space.
Tricks to Boost Curb Appeal
Finally, it’s time to take a hard look at the outside of your house, the way a neighbor or buyer might do. After all, that’s the first thing buyers will see when they pull up, so you’ve got to work that curb appeal hard.
For starters, take a good hard look at the paint. If it’s looking dull or dingy, try power washing first.
You can rent a power washer from most home improvement stores; a good wash can take off layers of dirt that make your home look shabby.
Most professional paint jobs come with a 25-year warranty, and if you’re long past that, it may be time for a new coat.
At the very least, slapping a coat of paint on your front door will give you the most bang for your buck—because that’s what buyers will see up close before they even knock.
Door paint aside, your yard also needs to be in order. Overgrown trees can make a home seem dark and creepy. If your trees are touching any part of your house, you should scale them back. If your front lawn is lacking in shrubs and flowers, add some.
Even in winter, you can find hardy plants, such as evergreen boxwoods and holly bushes.
Also, make sure your lawn is mowed, and if you have a pool that’s open, keep it sparkling.
Once you’ve gotten your home looking fantastic both inside and out, it’s time to break out your camera and spread the news (on social media, too) that it’s up for grabs: with an eye-catching real estate ad for your open-house flyers or open-house signs, of course!
The Negotiation Process of Selling a Home
The negotiation process can be one of the most exciting parts of selling a home, but until you get there, you may be worried about securing the deal. Will you receive multiple offers, or will your home sit on the market with little interest?
And if you do get just one or two offers, and they’re not as high as you’d hoped, what do you do?
Here’s how to navigate the real estate negotiation process and come to a deal that will make you happy.
Getting Those Offers In
If you’re not in a rush to sell your house, it may make sense to see what offers come in over a few months. But if you need to sell quickly, your real estate agent might be able to push things along by setting a deadline—usually within a week or two of listing.
When you expect multiple offers because your price is competitive or your home is in a popular neighborhood, setting a deadline can help. But you’ll need to be confident that your home is priced right, relative to its appeal. If all goes well, you can sell for over asking.
The Negotiation Process Begins
Once you have an offer in hand, you’re probably scanning for one thing: the price.
In many areas, houses rarely sell for less than 90% to 95% of the asking price. The offers on your home may fall in that range, but don’t rely on price alone. Every offer has five important components:
- Price
- Closing assistance
- Closing date
- Buyer financing
- Contingencies
Some offers may seem great on the surface, but significantly less so once you dig in. For instance: Is the buyer asking for closing assistance? Often first-time buyers don’t have enough money to cover the down payment and the closing costs, so they’ll ask the seller to foot some of the bill—about 2% to 3% of the total closing costs is a common request. If you agree, any assistance you give will lower your bottom line, so factor this amount into the asking price.
The buyer’s time frame to close may not seem like a big deal on the surface, but it can actually matter a lot, especially if you give the buyer a long leash. If the deal falls through, you’ll have to put the house back on the market and wait for more offers. On the other hand, if the buyer wants to move in right away, you might be left scrambling. Make sure the timing works for you.
Good so far? Now make sure the buyer has financing. Hopefully, the buyer’s agent included a note verifying the buyer’s financing and how much the buyer will put toward the down payment and earnest money. The last thing you want is to accept an offer, only to find out afterward that the buyer can’t come up with the necessary cash.
Finally, look over contingencies, which give the buyer the option to back out of the deal if something goes wrong. The buyer may say the final sale is contingent on a home inspection, or they may want to move in early. Both requests are fairly standard and acceptable. But keep an eye out for buyers asking for too much. For example, it would be over the line for a buyer to ask a seller to wait more than 30 to 60 days for the property to go under contract.
When to Counteroffer
The negotiation process doesn’t end here. You always have the option to return the buyer’s offer with a counteroffer of your own.
You should always counter if the price is not what you are looking for, or if you can’t support the amount of closing cost help they are looking for. But if you do, keep it reasonable. If the buyer was 15% below asking, they probably won’t go up to the full asking amount. Consider being flexible with your price; you can always make it up in other ways. For example, submitting a counter with a slightly higher price and contingencies that may help you—like having the buyer waive an inspection to speed things along—might pay off in the end.
If you don’t agree with the buyer’s contingencies, consider your position first before making the next step in the negotiation process.
If your home is in a popular area, you have an advantage. Keep in mind, the buyer may not accept your counter outright. You can play “Let’s Make a Deal,” but always consider your bottom line.
Is it worth it to keep countering for a small amount of money or a single contingency?
Don’t get trapped in a loop; consider the buyer’s side of things. These prospective buyers may be maxed out. To help you decide, ask your listing agent to call the buyer’s agent and discuss it with them. Get some insight into the buyer’s state of mind, and whether they can budge.
You’ve Got a Buyer! What Next?
Hooray! You’ve found a buyer for your home. You’re done, right?
Not quite. All you have to do now is get yourself—and your house—ready to close. Let’s dive in!
Earnest Money
When the buyer makes an offer on your house and you accept, the buyer will write you a check for a deposit known as earnest money.
Earnest money is a deposit that proves the buyer is serious about moving forward with the deal. These funds are held by a third party until you close the deal; on average, buyers pay about 1% to 2% of the offer amount.
If the deal goes through, the earnest money becomes part of the buyer’s down payment (or full cash payment). If the deal falls through because you’re unable to meet the buyer’s contingencies (for example, with the inspection or appraisal), that money gets returned to the buyer.
However, if buyers back out just because they change their mind, sellers may get to keep that money for all the hassle. Consider it a consolation prize for having to put your home back on the market.
The Seller’s Disclosure
As soon as you accept an offer, you will need to supply the buyer with a seller’s disclosure—an itemized list of any problems with the house or surrounding area. But how much do you have to disclose?
It all depends on your state laws. Generally, expect to disclose:
- Basic information about the house, like the age or utility costs
- Structural problems, like the condition and age of the roof
- Environmental issues, like if the property is located in a flood plain
- Known issues, like flooding in the basement
Even if your state doesn’t have strict requirement rules, it may make sense to disclose more than the minimum. Withholding information could come back to haunt you. After all, the buyer will find out sooner or later, so it’s best to be upfront.
The Home Inspection
Unless you’ve sold the home “as is” (and sometimes even if you have), the buyer will want a home inspection. The inspector’s job is to look for problems like:
- Roof damage
- Structural problems
- Plumbing problems
- Fire hazards like bad wiring or improperly working chimneys
- Major appliance and HVAC issues
Since the buyers hire the inspector, the report will go to them. If they spot anything amiss, you will hear about it, as it may become a negotiation point you’ll have to work out before you close.
The buyer may want some repairs done after reviewing the seller’s disclosure and conducting the inspection. The repairs have to be legitimate problems (the buyer can’t just walk because the stove is outdated).
You may be asked to get things repaired, or give the buyers a credit so they can pay for repairs themselves. While fixing it yourself may seem cheaper, it’s faster to offer a credit, so be sure to consider what a delay would cost you.
The Home Appraisal
If your buyers are getting a mortgage, they will also have to hire a home appraiser.
An appraiser is similar to an inspector, in that they come to your house and check it out, top to bottom. Only the purpose is different: Rather than looking for problems and repairs, an appraiser is trying to estimate what your home is worth, so that the lender knows the investment is sound.
To do that, the appraiser will not only size up your home in person but check out the sale prices of comparable houses in your neighborhood. If the appraiser’s price matches the one your buyers are paying (or even if it’s higher), all is good.
But if the appraisal comes back lower than the asking price, it may become a problem. Typically, lenders won’t loan buyers anything above the appraisal amount. The buyers have two choices: Pay cash for the difference, or negotiate a lower sale price with you. If they choose the latter, you’ve got two choices, too: Accept the lower home price, or walk.
To decide what to do, ask yourself: How easy would it be to find a new buyer? If you were deluged with offers, it may be in your interest to move on, but keep in mind that you might run into the same problem with subsequent appraisals. So unless you’re confident your home is worth more and you’re willing to head back to square one, you may want to take a hit just to keep moving forward.
The Home Closing Process for Sellers
Ah, closing on a house. It’s the finish line! You’re almost home free (or free of your home in this case). You’ve accepted the buyer’s offer, the negotiations are finally winding down, and there is only one more little box to check: closing.
OK, so maybe it isn’t a little thing. And maybe you’re a little bit worried something is still going to go wrong when closing on a house. That’s why we’re here to help get you through closing without a hitch—or barely a hitch (hey, stuff happens).
Get Repairs Done
First things first: You’ve got to get those repairs done before closing on a house. We get it—the last thing you want to do now is work on a home you are about to sell. But if you agreed to make repairs or improvements, don’t put them off until the last minute.
Some sellers try to wait until the day of closing, but they really should do all the repairs at least a week before closing. Getting things done ahead of time will give you plenty of wiggle room if something should still go wrong, or if the buyer finds a problem during the final walkthrough.
Check the approved offer, make a note of any repairs you and the buyer agreed on, and get to it—and don’t forget to cover yourself. Save receipts from items purchased and invoices from contractors, and take before and after photos of any work completed. You will have proof that repairs were completed on the off chance that the buyers contest them during the walkthrough or at closing.
The Final Walkthrough
Before your closing date—often 24 hours before—the buyers and the buyers’ agent will do one more walkthrough of the house (for which you should not be present). They will go through every room of the house, inside and outside—a process that typically takes about a half hour. Some buyers will go into detail, testing every light switch. But in most cases, the buyer is just looking to make sure agreed-upon repairs were made and no new issues have crept up before closing.
Buyers are basically looking for anything unexpected in the home. If the buyers do find an issue, you may have a chance to fix the problem ahead of time.
In most cases, the seller would be notified immediately after the walkthrough.
If the problem is big enough, you may have to delay your closing date to give time for the repair. But that only happens occasionally. Often, the buyers will take a trade.
Many times, the buyers ask for money instead. But once the documents are ready to go, the terms usually can’t be altered to include the new amount, and that is where the trade comes in. You typically see gift cards or appliance trades added to the deal.
The Home Closing Process
Many closings go smoothly. By this point, the buyers are excited to get into their new house, agreed-on repairs have been made, and the sellers are ready to get out. If things are going smoothly, the closing for you might boil down to a blur of paperwork.
The sellers sign several documents and will have to sit through an hour and a half of watching the buyer sign.
Unless problems creep up—or the buyer wants to negotiate further—you only have two jobs: waiting and reading documents. Some are worth perusing more than others. For example, make sure you pay close attention to the settlement statement.
There are other documents you’ll need to sign like a warranty deed or ‘Don’t sue the attorney’ documents, but the settlement is the most important. It includes the money you’re making on the sale, plus tax implications. Make sure to check that these numbers jibe with what you’ve been told and were expecting—and if not, pull your real estate agent or attorney aside and point them out.
Last-Minute Drama
So what if things aren’t going smoothly? What if the buyers want to negotiate again? The buyer has the right to hash out concerns up until the time they sign the final document and take possession of your house. It makes sense to at least hear them out. After all, you’ve come this far.
If the buyer is negotiating for something you can solve without amending the terms (say, for example, you can offer up the washer and dryer in the house), you’ll probably be able to hammer those details out at closing.
But if you and the buyer have negotiated a lower price at the last minute, you may have to delay closing.
Big changes can mess the whole thing up. For example, a seller could say, ‘I’ll drop the price by $2,000.’ There’s an amendment that needs to be done and the loan would have to be rerun. That could take anywhere from one day to weeks, depending on the bank’s turnaround times.
Once the negotiations are handled and the papers are signed, the buyers’ funds are transferred to your attorney, who will handle the payments to cover your loan and pay your real estate team. Thankfully, this part is handled by someone else.
And then comes the best part: You’ll get a check for the remainder, usually the same day in most states. Consider it a reward for all your hard work!
How to Move Out After Selling a House
From the first coat of paint you used to freshen up your house’s trim to the stress of negotiating a deal, you’ve been through a lot in that place. Now you’ve made it to the final hurdle of selling a home: moving out!
Don’t worry, this is the easy part… but you want to do it right. Here’s how to get through the last leg of your journey without any bumps along the way.
How to Move Out on Time
Once the paperwork is signed at closing, the buyers will officially own the house—and you won’t. That means that, technically, if you or your stuff is still there after the close, the buyer could evict you. So make sure to have your exit strategy in place!
Still, most buyers will understand if you need a bit more time and have a legitimate reason—like if you can’t move until the weekend due to your work schedule. Just be sure to discuss these issues as soon as possible before the close, so your buyers can plan accordingly.
Decide What to Leave Behind
To make sure you’re leaving behind everything the buyer wanted—and that you agreed to—double-check the closing documents. There should be an itemized list of what comes with the house. And even if the buyers didn’t formally request them, it’s just good form to leave certain types of things behind.
Generally speaking, you should leave anything that’s bolted to the wall. Some homeowners want to take their fans and blinds to the next home, but generally if it’s screwed in, it stays.
Also, if you and the buyers agreed to transfer any services—such as alarm monitoring or pest control—be sure to set that up before you go. Leave the buyers a detailed note in the house, or ask your agent to get in touch with theirs to make sure the transfer goes smoothly.
If you do inadvertently take an item that the buyers had requested, they have the right to ask for it back—and they could potentially sue you in civil court for the cost of a replacement. So, when in doubt, feel free to check with the buyers before you grab and go.
But Don’t Leave Anything Else Behind
Just as important as what you leave behind is what you don’t. Your buyers have a right to move into a home that’s been cleared of furniture and other movable items they didn’t expressly request.
Some folks leave all kinds of unwanted clothes, furniture, paint cans, and other items, thinking they are helping the buyers. If you truly think your buyers might love to have your old planting pots or kiddie equipment, go ahead and ask—but please don’t assume they’ll welcome your leftovers.
Even if you’re careful, you might forget something—at which point the buyers may contact their agent to get it back to you, but they also have the legal right to just keep or get rid of it. So double-check areas (e.g., the attic, garage, basement, storage shed, kitchen, and bathroom drawers) where people commonly overlook items.
Clean Up
It’s common courtesy to leave the place not only clear of your possessions but also clean. However, that doesn’t mean you have to leave it immaculate. Generally, you shouldn’t have to pay to have it deep cleaned.
In most cases, a simple broom-clean will do. That means wiping down the countertops, cleaning out drawers, sweeping or vacuuming all the floors, and giving the bathroom and kitchen appliances a once-over so the new owners aren’t grossed out when they arrive.
Are You Forgetting Anything?
Before you close the door for the last time, run through a quick checklist. Did you eyeball every room for stray items? Have you forwarded your mail and turned off the utilities?
We all get in a bit of a rush even in the best-planned moves, but you won’t be able to get back in, so it can’t hurt to do a final run-through before you move out.
Once you’re ready, it’s time to leave. You can drop a line to your real estate agent to let them know you’re out, although it’s usually a courtesy more than a necessity. If you’re feeling truly gracious, feel free to leave a note, card, or bottle of bubbly congratulating the people who’ve inherited your former home. Given all the fond memories you’ve built between those walls, wouldn’t it be nice to start the home’s new owners off on the right foot?
And buy yourself some Champagne, too. Make it the good stuff—you’ve earned it.