Q: When is the best time to sell my house?
A: In my opinion, this is a Catch-22. It’s a common misconception that Spring and Summer are the best times to sell a house. There are more buyers in the market during warm months which is why sellers tend to list their houses during those months. However, that means you have more competition as a seller. During the Fall and Winter there may be fewer buyers in the market, but there are also fewer sellers – less competition. Weather aside, when making the decision to sell your house you should also consider your financial and even emotional situation. Those may have more impact on your decision than the season.
Q: What should I do to prepare my house for sale?
A: Start by cleaning your house from top to bottom – dust, polish and give everything a good wash. Put yourself in the shoes of a buyer and walk through your house like you’re viewing it for the first time. Clear out the clutter throughout the house (follow our 75% Rule to help with this). If you need to do any minor renovations, now is the time to do it. If you have any intense colors on the walls, we recommend repainting them to a neutral color (grays are more popular than beiges right now). Remember, you want your house to look as open and inviting as it can. Also consider the curb appeal, the natural light and the smell of your house (citrus and peppermint prove to be most appealing to the majority). You should strongly consider hiring an agent with staging experience to ensure you put your best foot forward right out of the gate!
Q: How much paperwork am I going to fill out?
A: Upon hiring a REALTOR®, you’ll need to complete a listing agreement to establish and set the terms of your business relationship. In Tennessee, you’ll also need to complete an agency disclosure, a property condition disclosure or exemption and a disclaimer at a minimum. Depending on the state, the terms of the agreement and real estate company’s requirements, there could be more. Once your house is under contract, you’ll be working with purchase and sale agreements, counter offers, amendments, repair proposals and more. These are all another reason why it’s so important to hire a reputable and experienced REALTOR®. They’ll help you navigate through all the documentation, bear the risk of litigation and ensure they are properly completed and filed with the correct parties.
Q: Can I sell and buy at the same time?
A: Also called a “simultaneous close”, this is something that is most definitely a realistic option. However, it takes great logistical planning to pull it off and involves more risk. Therefore, you’ll want to make sure your REALTOR® is including all necessary contingencies and verbiage in both the buying and selling contracts so you are protected should the purchase of your new home hinge on the sale of your current house.
Q: Should I be present during showings at my house?
A: No. It is best that you aren’t there when potential buyers are touring your house. This could affect their attitude toward the house and possibly cost you a sale. It will cause awkwardness and might leave you with your feelings hurt. It’s best to not be a part of this process and to allow the potential buyers their time in the house privately.
Q: When should I consider a price reduction if my house has not sold?
A: Typically, we say that if you don’t have an offer after 30 days on the market or after 10 showings (whichever comes first), it’s time to reposition yourself in the market. However, the largest amount of traffic comes through the door in the first two weeks. Therefore, be sure to get the price right from the very beginning. Overpricing does nobody any good.
Q: What are seller concessions?
A: A seller concession is an incentive to help the buyer qualify to purchase. In most cases, the seller will financially contribute toward the buyer’s closing costs, escrows and prepaid items. Offering a home warranty, a country club membership or other incentive could be considered concessions. These can be the difference between closing a sale and losing one.
Q: What is a contingency?
A: A condition associated with an offer that must be dealt with before moving forward with the closing of the property. For example, the offer has been accepted and become a contract, but the final sale is contingent upon _______ (ex. sale of buyer’s house, appraisal coming in at contract price, buyer’s approval of inspection results).
Q: Should I let the buyers move in before closing?
A: It’s typically recommended that sellers allow buyers to move in after closing and only after the transaction has been fully funded – all parties have paid and received their money. There are many risks involved with letting buyers move in early. For example, the buyers may find something wrong with the house and decide they want to cancel their contract. It’s an especially bad idea for insurance reasons. If the buyers decide to entertain and someone gets hurt, who’s responsible? If there’s a kitchen fire, who pays for it? To prevent the possibility of losing a contract on your house (or worse, losing your whole house), we recommend waiting until the t’s are crossed and the i’s are dotted before allowing buyers to move in.