When it comes to selling your home, setting the right price is critical. You’ll want to spend some time researching recent comparable sales, market trends, and buyer behvior before coming up with that magic number. Of course, there are sites out there that will provide you with an AVM (Automated Valuation Model) Price, but this is a case where a human touch might be best.
Why people are better than AVMS:
The AVM is a great tool, but computers, software, and algorithms are only as good as the information they have, and can’t account for a number of elements that may ultimately affect how much a buyer is willing to pay for a property. For example, an updated kitchen, new roof, or whole-house generator might make a home more desirable but an AVM may not “know” they’re there. Other items such as location, distance to schools and grocery, even the slope of the backyard, will be a consideration for many homebuyers. Today’s AVM models don’t have the ability to “see” those things...
If after looking at all the numbers and carefully considering the value of your home’s features as opposed to all the other homes’ features, you’re still not quite certain exactly how much your home can sell for, it might be time to call a professional. An appraiser can help you determine the value of your home, but keep in mind that appraisals are somewhat subjective, and that your List Price may not be the same as your Sale Price.
Even before that first would-be buyer walks in the door, there are various forms and disclosures you should have in place. Failing to have all the right paperwork in order can lead to delays, or worse yet, legal trouble, both of which you probably want to avoid...
What to Disclose:
Virginia is a “buyer beware” state, meaning that, for the most part, its on buyer to do their own research in order to determine if a home has deficiencies and to find answers to any questions they might have. But there are certain things you’ll be required to disclose, as per the State of Virginia or the United States of America. Some of the required disclosures are:
- Disclosures Pertaining to a Military Air Installation
- Disclosures Pertaining to Pending Building or Zoning Violations
- Disclosures Pertaining to Lis Pendens
- Disclosures Pertaining to the Previous Use of a Property to Manufacture Methamphetamine
- Disclosures Pertaining to Stormwater Management Facilities
- Disclosures Pertaining to Repetitive Loss
- Disclosures Partaining to Common Interest Communities
- Disclosures Pertaining to Lead-Based Paint
*This list may not be exhaustive. Learn more about Virginina Disclosure Requirements here.
If you’re looking to get the most money possible for your home, it’s important to prepare your home BEFORE listing or showing, to have a great marketing strategy so that your listing gets seen by all the right people, and that the showing experience is memorable (in a good way). After all, in 2022, homebuyers saw a median of 8 houses in person during their search, and who knows how many they passed over when scrolling online. Here are some things to keep in mind so your home stands out above the rest:
- PREPARING YOUR HOME
You only get one chance at a good first impression...- De-clutter, Depersonalize, and Deep Clean - You’re moving anyways, so take this time to pack up anything you won’t be needing in the near future. Go room by room and consider how you can create space by removing extra furniture pieces, clearing tables/countertops, and lightening up closets. To help buyers see themselves in your home, you can also take down and pack up personal items such as family photographs and knick-knacks. Finally, a deep clean is a MUST. Your home should look, smell, and feel clean both in person and in photos.
- MARKETING YOUR HOME
Did you know that, according to the 2023 National Association of Realtors Profile of Home Buyers and Sellers, ALL homebuyers used the internet in their home search last year? That means that your home needs to not only be easy to find online, but that your online listing needs to be great.- Some of the things buyers find helpful are: photos, floorplans, property information, and video tours.
- Consider hiring a professional photographer who specializes in listing photos. They have the equipment and experience to showcase your home with all the best lighting and all the right angles.
- Be where the buyers are!
While listing with a Realtor will ensure your home is marketed across hundreds of websites, and their network and budget allow for targeted social media, email, mail, phone, and in-person marketing, there are still a number of ways you can extend your marketing reach without the help of an agent. Leverage your own personal socials and available FSBO websites to help potential buyers find your home.
- SHOWING YOUR HOME
It’s showtime! Although during the height of the pandemic there were buyers purchasing homes “sight unseen”, today, almost all homebuyers want to see a home in person before buying. Make the showing experience memorable for all the right reasons...- Make it bright - Let in natural light by opening blinds and curtains, and turning on lights before the showing
- Keep it fresh - Neutralize pet and cooking odors. Be cautious of adding additional scents, as they can be overpowering and often backfire, as buyers will wonder what you’re trying to cover up.
- Give ‘em space - Allow buyers time and privacy when viewing your home. It’s okay to be on site (after all, it’s your house) and if there are certain elements you want to highlight, you can point those things out before or after their tour. (Better yet, provide a flyer listing your home’s best features.)
- Make it Available - If you really want to sell your home, make sure you can accomodate buyers’ schedules and showing requests. If your own schedule doesn’t allow you to show the home at various times during the week, consider soliciting the help of a friend, family member, or even a trusted neighbor.
- Play it Safe - The unfortunate truth is that there are some bad actors in the world. Help minimize risk by doing your best to vet would-be buyers, never meeting new buyers alone in your home, and making sure valuables and sensitive info are locked up tight.
This is what it’s all for, isn’t it? You’ve prepared your home by making strategic improvements, hired professional cleaners and photographers, set an asking price designed to bring in the most possible qualified buyers, and created a marketing plan built to ensure all the right people see how wonderful your home is... Now it’s time to evaluate offers.
OFFER RECEIVED. NOW WHAT?
Once you’ve received an offer you can choose to a) accept it, b) reject it, or c) respond with a counteroffer.
- NOT ALL OFFERS ARE CREATED EQUAL
It’s important to remember that not all offers are created equal. There are many variable (and negotiable) terms to consider, including purchase price, closing date, contingencies, conveyances, possession, and financing, among others. Be sure to thoroughly review every part of the contract and talk with your attorney to ensure you have the necessary information to make the best decision. - LOOKING FOR SLIGHTLY DIFFERENT TERMS...
This is where those negotiation skills come in! The first offer is your first opportunity to negotiate with the buyers, but it’s probably not the last, as inspections, appraisals, and even unforeseen events often open to the door to additional negotiations. And with 89% of buyers working with a real estate agent to find their new home, there’s a strong possibility you’ll be negotiating with a pro. So be sure to brush up on that skillset, too.
Generally speaking, a home sale that is being financed by the buyer(s) will be ready to close in 30-45 days. Your attorney, along with the buyer’s attorney or settlement agent, will help to ensure that everything is ready to go for the big day. The buyers are also likely to complete a final walk-through of the home before they sign on the dotted line...
Both buyers and sellers will have closing costs to pay at settlement, and it’s likely that who pays for what was already negotiated in the contract. As a general rule, sellers’ closing costs tend to be around 1.5% of the purchase price, while buyers’ closing costs are usually between 3%-5% of the purchase price.
At closing, both you and the buyers will sign additional paperwork to finalize the sale and transfer of ownership. Then the deed will be recorded and funds will be disbursed. Buyers are often ready to start the move-in process immediately upon signing, so you’ll want to ensure you’re completely moved out by the closing date, unless additional possession time was previously negotiated.
Selling a home by owner isn’t for everyone. In fact, only 7% of homes sold in 2022 were sold as FSBO. So kudos to you for choosing to be part of that small group.
Sellers cited some of the key reasons they wanted to work with an agent as: wanting help establishing a competitive list price, wanting help marketing the home, wanting to sell within a certain timeframe, and wanting help finding the buyer.
Sale price was also certainly a consideration, as recent studies state that the Median Sale Price of homes sold with an agent was $95,000 higher than that of homes sold as FSBO.
If you’re thinking of hiring a real estate agent to help lighten the load of selling and ensure you get the best possible terms and price for your home, be sure to find someone honest, trustworthy, and with a great reputation. CLICK HERE for a list of the Top 10 Questions to Ask When Hiring a Listing Agent.