Seller FAQ

The first step in selling your home is to determine its market value. A professional real estate agent can provide a Comparative Market Analysis (CMA) to evaluate your home’s worth based on similar properties that have recently sold in your neighborhood. This helps you set a competitive listing price. Additionally, you should assess your home's condition and decide whether any repairs or upgrades are necessary before listing. 

Setting the right listing price is crucial for attracting buyers while maximizing your profit. A real estate agent will conduct a Comparative Market Analysis (CMA), which looks at the prices of recently sold homes in your area that are similar in size, condition, and location. Factors such as the home’s condition, age, upgrades, and the local real estate market conditions will also influence the price. Pricing too high can lead to your home sitting on the market too long, while pricing too low could leave money on the table. 

Small repairs and improvements can significantly increase the value and appeal of your home.  Common repairs include fixing leaky faucets, addressing any water damage, painting chipped walls, or replacing broken fixtures. Minor upgrades, like modernizing the kitchen or bathroom,  can offer a high return on investment. However, large-scale renovations may not always pay off,  so it’s essential to assess whether the investment will help your home sell quicker or at a higher price.

Selling a home comes with various costs, including the real estate agent’s commission, which is typically 5-6% of the home’s sale price. Other costs may include closing costs, repairs, and staging expenses. If applicable, you may also need to pay for a home inspection and title insurance. Additionally, you could be responsible for paying off the remaining balance on your mortgage. Be prepared for these expenses when budgeting for the sale. 

The time it takes to sell a home varies depending on several factors, including market conditions, price, and the home’s condition. In a seller’s market, homes can sell within weeks or even days, while in a buyer’s market, it could take several months. On average, homes typically sell within 30 to 60 days after listing. Working with an experienced real estate agent can help expedite the process by targeting the right buyers. 

Home staging involves preparing and decorating your home to make it more appealing to potential buyers. This may include rearranging furniture, adding decor, and decluttering. Staging can help buyers envision themselves living in the space, which can lead to faster offers and higher sale prices. Even simple changes, like a fresh coat of paint or updated lighting, can have a significant impact. While staging is optional, it’s highly recommended to make your home stand out in a competitive market. 

While it’s not mandatory, hiring a real estate agent is strongly recommended. Real estate agents have the expertise and experience to guide you through the entire process—from pricing and marketing to negotiation and closing. Agents also have access to the Multiple Listing Service (MLS), which ensures your property reaches a wide audience of buyers. Without an agent, you’ll be responsible for managing all aspects of the sale on your own. 

In a seller’s market, there are more buyers than homes available, leading to increased demand,  higher prices, and faster sales. Sellers have the advantage in negotiations, and homes often sell above the asking price. Conversely, in a buyer’s market, there are more homes for sale than buyers, which gives buyers more negotiating power and can lead to lower prices. The market conditions depend on various factors, including supply and demand, interest rates, and local economic conditions. 

Effective marketing is key to attracting buyers. Professional photos are essential for making a strong first impression online. A listing on the MLS ensures your property is visible to a broad network of buyers. Social media advertising, virtual tours, and hosting open houses can also boost visibility. Your real estate agent will help create a tailored marketing strategy to ensure your home is seen by as many potential buyers as possible. 

During a home inspection, the buyer hires a professional inspector to evaluate the home’s condition. The inspector will check the structure, electrical systems, plumbing, HVAC, and major appliances for any defects or safety concerns. If issues are found, the buyer may request repairs or ask for a price reduction. As the seller, you may need to negotiate or make repairs based on the inspection findings before proceeding with the sale. 

It’s tempting to accept the first offer, but you should consider the terms and contingencies, not  just the price. Evaluate whether the buyer is pre-approved for financing, if there are  contingencies like repairs or appraisals, and the closing date. Sometimes it’s beneficial to hold  out for a better offer or negotiate terms that work better for your needs, such as a faster closing or  fewer contingencies. 

Escrow is a neutral third-party service that ensures both the buyer and seller meet their  obligations before completing the transaction. After agreeing on terms, the buyer deposits earnest  money into an escrow account, and the seller provides the necessary paperwork and property  information. Once all contingencies are satisfied (e.g., inspections, financing), the funds are  transferred to the seller, and the property is transferred to the buyer. 

Negotiation is an important part of selling your home. Your real estate agent can help by  reviewing offers, presenting counteroffers, and guiding you through the negotiation process. Key  factors to consider include price, contingencies, closing date, and who will pay for repairs or  closing costs. Being flexible and open to compromise can help ensure a smooth sale while still  meeting your goals.

As a seller, you are legally required to disclose any known issues with the property. This may include water damage, foundation problems, or pest infestations. Failing to disclose material facts can lead to legal issues later on. Each state has its own disclosure requirements, but common documents include the seller’s disclosure form, which details the home’s condition and any past repairs or issues. 

A seller’s disclosure statement is a legal document that outlines any known issues or defects with the property. This includes past water damage, electrical or plumbing problems, structural concerns, or pest infestations. It ensures transparency and helps the buyer make an informed decision. Depending on state laws, sellers must complete and provide this document before or during the negotiation process. 

Increasing your home’s appeal starts with curb appeal—ensuring the exterior looks well-maintained and inviting. Consider simple improvements like cleaning the gutters, mowing the lawn, or planting flowers. Inside, decluttering, cleaning, and neutralizing the décor can help buyers envision themselves in the space. Small updates like fresh paint, new light fixtures, or updated hardware can go a long way in boosting your home’s appeal. 

If you sell your home for more than you paid, you may be subject to capital gains tax. However,  if you have lived in the home for at least two of the last five years, you may qualify for an exemption. The IRS allows a $250,000 exclusion for single filers and a $500,000 exclusion for married couples filing jointly. Consult a tax professional to understand how capital gains tax may apply to your situation. 

The closing process is the final step in the sale of your home. It involves signing the necessary paperwork to transfer ownership, including the deed and closing statements. You’ll also settle any outstanding costs or liens. After all parties have signed the documents and funds are disbursed, the buyer officially takes possession of the property. The process typically takes 30-60 days after accepting the offer. 

If the buyer backs out, it’s typically due to contingencies outlined in the purchase agreement  (e.g., inspection issues, financing problems). In some cases, the buyer may forfeit their earnest money deposit. If they back out for reasons not covered by contingencies, you may have legal recourse to keep the deposit or relist the home. Your real estate agent can help determine your options based on the circumstances. 

Selling your home without an agent (known as FSBO for “For Sale by Owner”) can save on commission fees, but it requires a lot of effort. You’ll need to handle pricing, marketing,  negotiations, and paperwork. While FSBO is a viable option for some sellers, it can be challenging without the expertise of a professional agent who has market knowledge, negotiation skills, and access to the MLS. Make sure you’re prepared for the time and effort involved in FSBO before deciding.