Being a first-time home seller is somewhat like being a first-time home buyer. Since you have never sold a home before, there can be some uncertainty and questions about the process. Yet, you may not know what questions to ask or where to go for answers. To start, consider these 3 tips. Preparation is key so the better prepared, the easier it will be.
The first step should be to seek out an experienced real estate broker. They will help you prepare your home and guide you through the process from beginning to end, so you know what to expect and how to handle any issues that could arise.
Tip #1 Prepare your home for sale. To get top dollar in the least amount of time, you will want to make any necessary repairs and stage your home to make it visually pleasing. First-time sellers can mistakenly believe that they can sell their home “as is” to anyone. While it is true that you can sell “as is” without making repairs, many buyers will purchase with a loan. Depending on the loan and the lender, you could be required to make repairs for the buyer to get final approval from the lender. For example, an FHA loan will not allow for a house to have peeling or chipping paint.
Tip #2 Prepare for paperwork. You will need to share certain information with a buyer, so get organized and have your documentation ready. You will have to make certain disclosures regarding the property like whether you know of lead-based paint or if the home is part of an HOA. The disclosures and documentation can be confusing and frustrating at times if you are not prepared.
Tip #3 Negotiations are Ongoing. First-time home sellers often think that once they accept an offer on their home, everything has been negotiated and agreed to. Unfortunately, this isn’t always the case. Here are two of the bigger things that can trigger ongoing negotiations:
- Home Inspections: The buyer will almost always do an inspection and inevitably there will be some repairs needed. Some repairs might be minor. However, some might be major and unexpected on everyone’s part. You will need to negotiate repairs, cost and who will pay.
- Appraisals: When getting a mortgage, the lender will want to ensure the home is worth what the buyer is willing to pay. The lender must protect the investment and be sure that buyer emotion isn’t dictating a bad financial decision. If the appraisal comes in lower than the contract offer price, you may have to negotiate how to reconcile the difference.
As you can see, selling a home for the first time can be just as overwhelming as buying for the first time. If you are considering selling and are a first-time home seller, we can help you prepare and answer any questions you may have about selling. Give the Fred Delgado Team a call at (602) 308-8394.