We're selling our house soon and need help knowing stuff.
July 16, 2015 4:03 PM Subscribe
What do I need to know about selling a house that I don't currently know?
We are gearing up to sell our house in the spring/early summer next year and buy a condo - we're spending this summer doing a bunch of aesthetic/cosmetic stuff to make the house more saleable, then we'll landscape in March/April and off we will hopefully go.
This is our first home, so consequently this is the first time we've sold a home. I know that being a seller is different than being a buyer, but what sorts of things do I need to understand about being a home seller that didn't matter to me when I was a buyer?
It's a newish house - built in 2002 - with no issues as far as plumbing/electrical/foundation. It's in good shape and once we do a few upgrades will be a really nice house, although it'll never really be more than a nice starter house due to its size (1300 SF, not really big enough for a family of more than three).
Assume for the purposes of this question that we'll be using a realtor - I know it can get expensive to do that, and I know many people sell houses themselves, but I have neither the time nor, crucially, the desire to sell my own house and do my own paperwork and all that stuff. Also assume we know the advantages and disadvantages of owning a condo - after a lot of soul-searching and lifestyle-examining, we know that's what we want to do next and we have done the homework on that part.
So, hive mind - tell me what I don't know! Thanks!
We are gearing up to sell our house in the spring/early summer next year and buy a condo - we're spending this summer doing a bunch of aesthetic/cosmetic stuff to make the house more saleable, then we'll landscape in March/April and off we will hopefully go.
This is our first home, so consequently this is the first time we've sold a home. I know that being a seller is different than being a buyer, but what sorts of things do I need to understand about being a home seller that didn't matter to me when I was a buyer?
It's a newish house - built in 2002 - with no issues as far as plumbing/electrical/foundation. It's in good shape and once we do a few upgrades will be a really nice house, although it'll never really be more than a nice starter house due to its size (1300 SF, not really big enough for a family of more than three).
Assume for the purposes of this question that we'll be using a realtor - I know it can get expensive to do that, and I know many people sell houses themselves, but I have neither the time nor, crucially, the desire to sell my own house and do my own paperwork and all that stuff. Also assume we know the advantages and disadvantages of owning a condo - after a lot of soul-searching and lifestyle-examining, we know that's what we want to do next and we have done the homework on that part.
So, hive mind - tell me what I don't know! Thanks!
Don't invest too much in fixing up the house. How much depends on the house and the neighborhood. I would go ahead and figure out who you want to use as your broker now and then let him/her guide you on this. They won't mind spending time with you now if they know that they will get the sale later - in fact they should be very happy that you will be making their job easier.
posted by metahawk at 4:14 PM on July 16, 2015 [4 favorites]
posted by metahawk at 4:14 PM on July 16, 2015 [4 favorites]
Where are you located?
Does your state require Radon Test? Is the neighborhood quiet?
You may have to disclose any lumps and bumps that a new owner might need to know. ie: where is the main water turnoff, sewer or septic (last emptied) water-city or well-last tested.
Is it anywhere near a water source? Flood Ins.? (FEMA has new maps).
When I bought a home, the seller even had a diagram of the landscaping and how to take care of the bushes!
All the 'little things' told me that the seller was into taking care of this home and went a long way in deciding if I'd buy.
posted by donaken at 4:21 PM on July 16, 2015
Does your state require Radon Test? Is the neighborhood quiet?
You may have to disclose any lumps and bumps that a new owner might need to know. ie: where is the main water turnoff, sewer or septic (last emptied) water-city or well-last tested.
Is it anywhere near a water source? Flood Ins.? (FEMA has new maps).
When I bought a home, the seller even had a diagram of the landscaping and how to take care of the bushes!
All the 'little things' told me that the seller was into taking care of this home and went a long way in deciding if I'd buy.
posted by donaken at 4:21 PM on July 16, 2015
Best answer: Don't be afraid to talk to a Realtor now. We had a trusted Realtor friend come through about six months before listing our house - we had planned to do a number of changes pre-listing, and she had us change directions on quite a few things. Some of her recommendations surprised us, but looking back she was right on point with what we needed to do considering the neighborhood and market. We ended up investing a lot less than we would have, which was good for us.
posted by kellygrape at 4:29 PM on July 16, 2015 [1 favorite]
posted by kellygrape at 4:29 PM on July 16, 2015 [1 favorite]
Consult with multiple Realtors before choosing one. We talked to three, and it was obvious that two of them were just phoning it in while the third was really working hard to serve her clients.
posted by jon1270 at 4:45 PM on July 16, 2015 [2 favorites]
posted by jon1270 at 4:45 PM on July 16, 2015 [2 favorites]
Best answer: Based on your location, and given the local market, you might not need to do much…You're talking about one of the hotter real estate markets in the country right now. Inventory is so tight, your realtor will tell you exactly how much you need to do, or don't need to do.
We bought earlier this year in your market, our realtor's business partner had a client looking to sell their house, but didn't want to do any staging or…anything really because they had a small kid, a dog, and another kid on the way. They just wanted out of the house ASAP for a large zone. And honestly, for us, that was a bonus because our tastes are pretty picky; any yardwork or staging they would have done wouldn't have influenced us to spend more money or even favor the house more. We'd rather do all those things ourselves (I would have appreciated them letting me know that there were hops in the front yard, as I could have taken better care of them right off the bat).
The owners had their price in mind, it came in close to ours and aside from them putting a new roof on (which they knew they needed to do), we didn't haggle or adjust the price at all. We viewed it once, they told us the price, we said "how about price + that new roof you really needed to do a year ago" and they said "sure!" They got the deal of not having to enter an insane market and we got the deal of a decent price and…again, not entering the insane market.
You say in your question that you don't want a hassle. If you can put a price on that hassle, I'd come up with a number you're happy getting, and asking your potential realtors if they have anyone looking to purchase at that price. You don't have to list a house to sell it. You won't get top dollar that way, but if thats not important to you that might be a track to take. You'll make some laid back, non-aggressive hagglers really happy, and you'll probably get close to the price you want anyway.
Memail me if you want the name and number of a fantastic realtor in your market.
posted by furnace.heart at 5:26 PM on July 16, 2015
We bought earlier this year in your market, our realtor's business partner had a client looking to sell their house, but didn't want to do any staging or…anything really because they had a small kid, a dog, and another kid on the way. They just wanted out of the house ASAP for a large zone. And honestly, for us, that was a bonus because our tastes are pretty picky; any yardwork or staging they would have done wouldn't have influenced us to spend more money or even favor the house more. We'd rather do all those things ourselves (I would have appreciated them letting me know that there were hops in the front yard, as I could have taken better care of them right off the bat).
The owners had their price in mind, it came in close to ours and aside from them putting a new roof on (which they knew they needed to do), we didn't haggle or adjust the price at all. We viewed it once, they told us the price, we said "how about price + that new roof you really needed to do a year ago" and they said "sure!" They got the deal of not having to enter an insane market and we got the deal of a decent price and…again, not entering the insane market.
You say in your question that you don't want a hassle. If you can put a price on that hassle, I'd come up with a number you're happy getting, and asking your potential realtors if they have anyone looking to purchase at that price. You don't have to list a house to sell it. You won't get top dollar that way, but if thats not important to you that might be a track to take. You'll make some laid back, non-aggressive hagglers really happy, and you'll probably get close to the price you want anyway.
Memail me if you want the name and number of a fantastic realtor in your market.
posted by furnace.heart at 5:26 PM on July 16, 2015
In my experience (which is Australia, so might be different), it matters SO MUCH if you get a good realtor. Even in a hot market (especially that, as the realtors can just phone it in and still make a sale, but a good one can get you the extra money, and can also make things easier for you in a number of ways, by being contactable, talking you through things, giving you lots of feedback throughout the process, etc).
Also, at least in Australia, it is common to negotiate with the realtor about their percentage. I didn't realise this at first, but fortunately someone told me, and when I asked the realtor if she was flexible about her initial quote of 4%, she dropped it to 2%! Which is a huge amount of money on a half-million dollar house.
Depending on your local market, you may also have to decide things like whether you will sell by auction or by private treaty, or by any one of a number of less common methods. You will also have to decide how much to let the realtor spend on advertising - do they do a half-page in a newspaper, or just a small block, for how many weeks, or do they only list it online? What size sign do they put up in the front yard, and how many photos does it have on it? All of these things are a trade off in money invested upfront vs money you might get back on the sale, and you need to have a realtor you trust to advise you on what is worthwhile, rather than one who will push you to spend unnecessarily, or give you bad advice.
When you start getting offers, you have to trust that the realtor knows and is honest with you about whether they are the best you are likely to get, and whether they can be negotiated up.
For all these reasons, you super duper need to be able to trust your realtor, so don't be afraid to interview a few and go with your gut. And get recommendations from as many sources as possible.
posted by lollusc at 5:55 PM on July 16, 2015
Also, at least in Australia, it is common to negotiate with the realtor about their percentage. I didn't realise this at first, but fortunately someone told me, and when I asked the realtor if she was flexible about her initial quote of 4%, she dropped it to 2%! Which is a huge amount of money on a half-million dollar house.
Depending on your local market, you may also have to decide things like whether you will sell by auction or by private treaty, or by any one of a number of less common methods. You will also have to decide how much to let the realtor spend on advertising - do they do a half-page in a newspaper, or just a small block, for how many weeks, or do they only list it online? What size sign do they put up in the front yard, and how many photos does it have on it? All of these things are a trade off in money invested upfront vs money you might get back on the sale, and you need to have a realtor you trust to advise you on what is worthwhile, rather than one who will push you to spend unnecessarily, or give you bad advice.
When you start getting offers, you have to trust that the realtor knows and is honest with you about whether they are the best you are likely to get, and whether they can be negotiated up.
For all these reasons, you super duper need to be able to trust your realtor, so don't be afraid to interview a few and go with your gut. And get recommendations from as many sources as possible.
posted by lollusc at 5:55 PM on July 16, 2015
Best things you can do to to sell quicker are put a lot of stuff in storage, especially personal stuff like photos. And clean everything really well, especially windows and appliances.
posted by Melsky at 7:15 PM on July 16, 2015 [1 favorite]
posted by Melsky at 7:15 PM on July 16, 2015 [1 favorite]
If you're finding that your house is on the market for a while with no offers, and your realtor suggests lowering the price, you should probably do it (and maybe even if he/she doesn't). You'll probably have to do it eventually, and it's better to just do it then, like quickly ripping off a band-aid.
posted by trillian at 7:19 PM on July 16, 2015 [1 favorite]
posted by trillian at 7:19 PM on July 16, 2015 [1 favorite]
Over the years I've sold a few places, here's what I would do:
* don't put in any money or make any improvements until you have a few Realtors come in first
* you will absolutely have to box up at least 75% of your stuff and make your home as neutral looking or close to a fancy hotel as possible
* Put money into cosmetic updates only, if possible. New carpets/flooring, painting everything in neutral colors will make a HUGE difference to prospective buyers
* One thing I learned about staging is you want to make the place look as much like a swanky hotel as you can. That means expensive looking bedspreads and pillows, plush blankets and towels, brand new throw pillows, upscale small kitchen appliances, a bowl of fruit, upscale bath products so the bathrooms look like spas, plush bath mats, etc. FLOWERS. Think of creating a Pottery Barn showroom type of thing. You want to create the impression of simple luxury. And you can either keep the stuff or return it once you sell
* you may find that other than clearing out, painting, new floors, bright landscaping and the hotel-like staging, you don't need to do more. Buyers will fall in love with your neutral home and if there are roof/boiler/non-glamorous issues, they will still make an offer.
I have a Realtor friend who suggests saying that you're taking your appliances. She says to do this because they can end up being excellent bargaining chips to use. If someone wants to make an offer but the appliances aren't included, they'll still make the offer. When in negotiations if they ask for price reductions or something, you can offer them the appliances. She says you'd be surprised how often owners save a deal by giving the appliances to the buyer.
posted by kinetic at 2:50 AM on July 17, 2015 [3 favorites]
* don't put in any money or make any improvements until you have a few Realtors come in first
* you will absolutely have to box up at least 75% of your stuff and make your home as neutral looking or close to a fancy hotel as possible
* Put money into cosmetic updates only, if possible. New carpets/flooring, painting everything in neutral colors will make a HUGE difference to prospective buyers
* One thing I learned about staging is you want to make the place look as much like a swanky hotel as you can. That means expensive looking bedspreads and pillows, plush blankets and towels, brand new throw pillows, upscale small kitchen appliances, a bowl of fruit, upscale bath products so the bathrooms look like spas, plush bath mats, etc. FLOWERS. Think of creating a Pottery Barn showroom type of thing. You want to create the impression of simple luxury. And you can either keep the stuff or return it once you sell
* you may find that other than clearing out, painting, new floors, bright landscaping and the hotel-like staging, you don't need to do more. Buyers will fall in love with your neutral home and if there are roof/boiler/non-glamorous issues, they will still make an offer.
I have a Realtor friend who suggests saying that you're taking your appliances. She says to do this because they can end up being excellent bargaining chips to use. If someone wants to make an offer but the appliances aren't included, they'll still make the offer. When in negotiations if they ask for price reductions or something, you can offer them the appliances. She says you'd be surprised how often owners save a deal by giving the appliances to the buyer.
posted by kinetic at 2:50 AM on July 17, 2015 [3 favorites]
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The things that surprised me
- A lot of the "staging" shit people tell you to do strongly depends on what the market is like where you are. I did no staging. Most people tell you to just sort of remove a large percentage of your stuff. This is not bad advice. Usually you need to be gone when the prospective buyers come through. You drive the train, if the realtor is always trying to get you to do things that are inconvenient, bring people by, telling you to move shit around, say no.
- You can opt to include or not include fixtures and stuff, think it over. Some people will look at the place and be all "You leaving the fridge/dishwasher...?" so you'll have to think on that ahead of time. If you're in a cold place and there is a fuel tank, usually there is some hokey pokey about leveling that out (i.e. they buy it from you) and usually some pro-rating on the property tax if you've paid for time they are occupying.
- Things (in my experience and that of friends) often just turn into weird last minute bullshit with timing. I did not know I was for-sure closing on my house until three days before it happened and that is normal?
- You will get a tax form at the closing. You need this for taxes, don't put it in a folder and forget about it :)
Keep in mind that the realtor will not always lobby for the best price for you (science) so you can decide how firm you want to be about getting what you want for the place as opposed to selling it quickly. I took a lower offer just to be DONE selling the place, not everyone wants to make those choices.
posted by jessamyn at 4:14 PM on July 16, 2015 [3 favorites]