March 6, 2020
Even in a seller’s market, selling a home can be a difficult task. As a result, you’ll want to do your homework ahead of time to ensure that you will be able to sell your home quickly and at the best possible price.
Timing is everything
You can’t always choose when to put your home on the market. You might need to buy another home to make room for a new baby that’s on the way. Or, perhaps your employer is transferring you out of state. However, if you do have a say in the matter, you’ll want to make sure that you’re selling your house at the right time. Typically, you’ll sell your home quicker and get a better price for it when the real estate market favors sellers (i.e., when homebuyers are plentiful and homes are scarce). The time of year you put your home on the market can also make a difference. Since many homebuyers prefer to move in the spring and summer, real estate markets usually heat up in late winter and early spring.
Preparing your home for the sale
Before you put your house on the market, take some time to get it in top condition. Start by giving your home a thorough cleaning–you may even want to hire a professional cleaning service to do it for you. Next, move on to smaller maintenance projects such as fixing that leaky faucet in the kitchen or replacing the loose tiles in the bathroom. Certain contractors specialize in this part of the home maintenance market. However, be sure not to get too carried away. You’ll want to hold off on any major home improvements (e.g., renovating the kitchen) since you probably wouldn’t be able to recoup the money you put into the project, and prospective buyers might not share your taste in design. Focus instead on minor, cosmetic improvements, such as a fresh coat of paint and some landscaping.
Setting the right price
When selling a home, it’s important to set the right price. Your asking price shouldn’t be so high that your house won’t sell or so low that you’ll miss out on some profit. If you use a real estate broker, he or she will do most of the work for you in determining the right price for your home.
Additionally, all offers and counteroffers will be presented through your agent, so you’ll probably be able to avoid any face-to-face negotiations with potential buyers.
As a seller, you’ll probably have very little to do at the closing. Your main responsibility will be to make sure that any agreed-upon repairs have been made and that the buyer is getting clear title to the home. However, you’ll want to make sure all of the paperwork is in order, and if you hire an attorney, have him or her attend the closing with you.
Other things to consider
- If you’re buying another home and need to come up with a down payment on it before receiving the proceeds from the sale of your current home, ask your lender about a bridge loan, a short-term mortgage that is paid off once the sale of your home is complete.
- If necessary, include a closing-on-sale contingency clause in your contract to buy your new home, which allows you to delay the closing on your new home for a certain period of time while you find a buyer for your current home. If you can’t find a buyer within the allotted time frame, the purchase contract is canceled and any deposits are returned to you (unless you and the seller agree to extend the agreement).
- Find out about the tax implications of selling your home. Most sellers can exclude from taxation some or all of the capital gains. Consult your tax advisor on your particular situation. To speak with a member of The Summit’s mortgage team, call (585) 453-7010 or (800) 836-7328 extension 7010 or visit us online.
The Summit is an Equal Housing Lender. You must be a member of The Summit FCU to take advantage of its products and services. Subject to credit approval. Mortgage loans are only available for owner-occupied 1-4 family properties located in New York State.
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