Step 1: Decide When to Sell
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Market Conditions: In a seller’s market, you hold the advantage. In a buyer’s market, buyers have more power. Your sales representative can offer valuable insights into current market dynamics.
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Timing: How quickly do you need to sell? In a seller’s market, you can often get top price quickly. In a buyer’s market, you may need to adjust your price to attract offers.
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Seasonality: Spring is typically a busy season, but buyers are always active year-round.
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Buying and Selling Simultaneously: If you’re buying and selling at the same time, a sales representative can guide you through the process and help negotiate flexible terms or secure bridge financing.
Step 2: Choose a Sales Representative
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Referrals: You may want to work with the agent who helped you buy your home or ask for local recommendations from trusted sources.
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Interview: Ask the agent how they assess your home’s value and their approach to selling it. Ensure they understand your needs and have your best interests at heart.
Step 3: Sign a Listing Agreement
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Listing Agreement: This document gives your sales representative the authority to market your home, including details on price and commission.
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Exclusive vs. Multiple Listing: A Multiple Listing Service (MLS) is essential for maximum exposure, allowing other agents to help find buyers.
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Price: Your agent will assist in setting a competitive price based on market conditions and comparable sales.
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Commission: The agent's fee is usually a percentage of the sale price, and this is negotiable.
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Chattels and Fixtures: Clearly list any items (e.g., appliances) that are included or excluded from the sale.
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Seller Property Information Statement: Disclose any known defects or issues to avoid legal trouble later.
Step 4: Determine Your Home’s Asking Price
The right price is key to attracting buyers. Too low, and you lose out on profit; too high, and you may scare buyers away. The goal is to find the fair market value—the highest price buyers are willing to pay. Your sales representative will use a Comparative Market Analysis (CMA) to assess your home's value based on recent sales in the area, ensuring a competitive and well-researched price.
Step 5: Add a Lawyer to Your Team
A real estate lawyer will protect your interests by reviewing contracts and documents. If you’ve worked with one before, consider returning to them. Otherwise, ask for recommendations from your sales representative or trusted sources. Your lawyer will be essential in reviewing offers and closing the deal.
Step 6: Prepare Your Home for Sale
Prepare your home to make a great first impression. Clean, declutter, and make necessary repairs. Consider neutralizing your space so buyers can imagine themselves living there. Minor upgrades, like fresh paint or improved curb appeal, can greatly enhance buyer interest. Your sales representative can offer advice on which improvements will provide the best return on investment.