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9 Steps to Help you Sell Your House

Sell Your House

How to Get Your House Ready to Sell

Selling a house can be stressful. If you are like most people, your house is the largest single investment that you will ever make. It is both a matter of pride and practicality to ensure you get the best price.

It is not enough to just post a price and wait for buyers to come through the door with a checkbook in hand. What you need to know is:

  1. Your home’s value
  2. The local market prices
  3. The best way to sell your house
  4. How to present it so that it sells quickly at an attractive price

This is a very difficult task that has a lot of variables and requires patience and perseverance. It’s a good idea to keep a list of tips and tricks that you can refer back to when needed. This way, you can refer to the list whenever you feel stuck and help get things moving again.

These are 9 tips to help you sell your house.

get into the action1. Get in on the Action

When it comes to your home, you probably have a price in place. Everyone does. Research is the difference between those who achieve what they want and those who don’t.

Your home is not in a vacuum. Your home exists in a marketplace, which will determine its price range. Find out what similar homes are selling for in your area and set your price accordingly.

How can you research the competition? It is not as hard as you might imagine. These are the two best ways to win.

  • Open Houses – Attending open houses will give you a realistic idea of the homes that are being sold and how much they cost. You will also be able to see how other homeowners present their homes. You might even be able to hear what potential buyers have to say about these homes.

 

  • Browse Listings Online – The internet is the best information resource. Make the most of it. Each year, approximately five million homes similar to yours are sold in America. Nearly all of them are available online.

You can start your online search by simply going to Google.com, and then entering the area you’re interested in buying a home. That’s it. No matter where you live, there will be numerous listings in your local area. Once you have found them, spend some time looking through them and make sure to take down notes.

Use What You Have Learned

Open houses can help you determine a price but it will also help you create a better presentation for your home. You may have to sacrifice some of your weekend activities. It’s possible, but it will be a better decision in the end.

hire a handyman2. Hire A Handyman ASAP

People tend to let things slide the longer they live in their homes. Potential buyers won’t be impressed by leaky faucets and creaky doors. It is your responsibility to hire someone to fix it or do it yourself. An example repair/refurbish list might include:

  • Fresh Paint – We don’t realize how dirty our walls have become. So we decide to move old paintings. Yikes! Now is the right time to paint your home if you’re looking to sell it. A distraction can cost you a sale.

 

  • Repair Broken Items – While you might find the squeaky door charming, others see it as a sign that you haven’t maintained your house properly. While you might not take the smelly basement as an indication of a leaky foundation, potential buyers will see it as a sign that the foundation is leaking.

 

  • Remodeling the Cabinets – Over time, kitchen cabinets can look tired. It is possible to make your kitchen look newer by painting it or changing the hardware. Many websites can help you with the process of replacing your hardware.

It is important to get rid of all distractions and anything that might suggest neglect. Each light switch must work. Every light bulb should work. You want the walls to look attractive and fresh. The carpeting must be spotless and clean. Cabinets should not be a burden.

Do a deep clean3. Perform a Deep Cleaning

This point has been covered up, but now it is time to highlight the importance of deep cleaning the whole house. Deep cleaning is more than vacuuming and dusting. It should include a thorough cleaning of every room in the house, from the attic to the basement. This includes:

  • Steam Cleaning Carpets – A standard vacuum cleaner will often cause more damage than it solves. You should hire a professional carpet cleaner who uses a truck-mounted steaming system.

 

  • You can remove pet (and people) odors. Pet owners may not always notice the odors of pets because they are so familiar with them. However, others will. Many odors can be removed by steam cleaning carpets. You might also want to clean the upholstery. Closets can also be odor factories. Make sure to clean them thoroughly.

You should also include the following items on your deep cleaning checklist:

  • Windows – Clean windows from the inside and outside.
  • Garbage cans: Clean them well to get rid of any odors.
  • Stovetops and ovens – Ovens can be a source of unpleasant odors.
  • The fridge – clean it thoroughly. It should be thoroughly cleaned. All soiled items should be thrown out.
  • Dishwasher – Clean and disinfect the dishwasher’s interior.
  • Mold can grow in bathroom grout Grout often gets moldy. Make sure to clean grout.
  • Shower stall and curtain: Clean it from top to bottom, and then buy a new one.
  • Basement – Perform a wall-to-wall cleaning. Remove mold and seal cracks.

It is a good idea to have someone come in and clean your dryer vents and air ducts. Dirty air vents can collect pollen, dead skin, hair, and mold spores. It is possible to clean them and get rid of unpleasant smells.

Maximize Curb Appeal4. Maximize Curb Appeal

Experts agree that curb appeal is a key factor in the sale of a home. Potential buyers will be turned off by a dull exterior. You will need to make sure that your exterior looks good before you put your house on the market. Here are some ways you can do this:

  • The Front Door and Porch are the most important. You only get one chance to make a first impression. The porch should be freshly painted and cleaned. There should be no loose boards, no areas of decay, and no creaky stairs. The front door should look attractive, be substantial, and be well-framed.
  • Fresh Mulch and Flowers are a great addition to your home. When it comes to curb appeal, dead flowers and lifeless mulch are no good options.
  • Maintain a clean, neat lawn. It gives the property an organized aura. It not only gives the property a cohesive appearance but also adds a pleasant scent to the air.
  • Cut Back Shrubs and Trees – Trees or shrubs are wonderful, but they should not be wild, especially if the rest is well maintained. Hire a professional landscaper to trim the shrubs and trees. You may make a sale.
  • Walkways up to speed – A cracky driveway is an eyesore. The same goes for walkways. It won’t be expensive to replace old concrete with interlocking pavers, but it will increase curb appeal.
  • Replacing the Mailbox – Although traditional mail is losing ground to digital media, it’s still very relevant. Spend a few dollars to replace a mailbox that is more than a decade old. These are often the details that make a difference.

local real estate market prices

5. Find out the local real estate prices

This is something we discussed earlier but it’s worth a closer examination. It is not possible to simply pull the asking price of your house from the internet. It should be grounded in market realities. This means that you must research the local market.

  • Active Listings – These listings show what people are asking for in properties that are similar to yours. While your home might have unique features that increase its value, active listings can help you determine the range of price your home will be selling for.

 

  • Sold Listings – Sold listings are a real-world indicator of buyer sentiment. It is a sign of a healthy market if most sellers in your local area achieve their asking price. It can help you set a price range limit.

Remember that home prices can be affected by many factors. Some factors are under your control, while others are out of your reach. Listings that are active and sold serve as context. They do not guarantee anything.

FSBO or a Real Estate Agent6. Decide on FSBO or a Real Estate Agent

There are two options when it comes to selling a house. There are two options when it comes to selling a house. You can either hire a real estate agent or go the FSBO route. FSBO stands to “For Sale By Owner.” Let’s take a look at both the benefits and drawbacks.

FSBO Advantages

  • No Commission – This is why most people choose FSBO. This is understandable, as commissions can be significant, especially for million-dollar homes.
  • Allows for more competitive pricing – Once the substantial commission is paid, you can lower the price of the home. This is particularly useful in a highly competitive market.
  • Many Helpful Resources – Although this wasn’t always true, the rise in internet access has led to a proliferation of resources available for those who want to follow the FSBO route.
  • Total Control – You can pitch your house the way that you like.

FSBO Disadvantages

  • Paperwork – Property sales require a lot of paperwork. You’ll be surprised at how much if you choose to go FSBO.
  • Lower profit – Many homeowners aren’t skilled at selling. Consequently, most homeowners who choose to sell their homes by themselves end up with a much lower selling price than if they hired an agent. This is why flat fee MLS listings are so important! Check out the below…
  • Time – You will need to arrange home tours for an FSBO sale. Selling your house can be very time-consuming.

 

Real Estate Agent Advantages

  • Expertise – Experienced real estate agents know what it takes to succeed. They are able to quickly assess a property and create a sales strategy.
  • Connections – The most successful agents have access to many potential clients. Your network will speed up the selling process and ensure that you get a better price.
  • You save time – The agent handles all the paperwork and tours so you can focus on other things.
  • Higher Sales Prices – If FSBOs result in lower prices then the reverse must also be true.

Real Estate Agent Disadvantages

  • That Commission – Real estate agents are busy behind the scenes. People wouldn’t complain if they knew how much the commission was. However, commissions can still be significant.
  • Inattention – Real estate agents who are good at what they do are often busy. You are unlikely to receive anything that resembles “personal service” from top agents.
  • Loss of control – People who want to be in control often clash with agents. This can cause a cloud to hang over the whole process.

rent a storage unit7. You can rent a storage unit

Many homeowners accumulate items over time. These items, which are often not used immediately, can fill the basement, attic, and closets. A couple of reasons why renting a storage unit can prove to be a winning strategy during a sale are:

  • It allows for de-cluttering. Clutter can be a visual distraction but also a reminder of who lives in your house. This is why clutter is a problem. Potential buyers want to feel at home in the house, as we’ll see. The owner must step aside in order to do this. You can remove years of clutter by stepping aside.
  • It allows you to store extra furniture – Clutter typically consists of clothes, camping equipment, and books. Homeowners will often have more furniture than they need or that is aesthetically pleasing. This extra furniture can be moved to a storage area to open up the house and allow potential buyers to have more creative freedom.
  • It can pay dividends going forward – Storage space can be addictive. Many people who have used them for years cannot imagine life without them. The storage space that was acquired during a move is usually a permanent fixture in the homeowner’s future.

It is an affordable investment that can yield significant benefits. Storage space is an essential component of any sales process if you are having trouble saying goodbye to items.

staging to sell8. Staging to sell is not just for TV

Networks like HGTV have made home staging a very popular topic. Some people believe that the process was created for television, but it has been around for decades. According to the National Association of Realtors, home staging is one of the most important aspects of the selling process.

Home staging refers to the act of changing the appearance of a house in order to highlight its best features. Staging minimizes the impact of personal taste in favor of a neutral aesthetic. This allows potential buyers to be more involved with the home.

Basics of home staging

Home staging is a process that requires attention to several important aspects. This applies regardless of whether the homeowner or a professional staging your home.

  • Don’t make it personal – Potential buyers want to see themselves in a house. You don’t want a home filled with personal belongings, such as family photos or sports memorabilia. This makes it difficult. The role of the stager is to transform the “home” into a “house”.
  • Organize – To transform a home into one, you will need to impose a standard ergonomic system. Things will return to what most people expect. They are not where their owner is most comfortable.
  • Lighting – Lighting can be a powerful tool to create mood, establish focal points and emphasize spatial relationships. A well-thought lighting scheme is crucial for effective home staging.
  • Accentuate the Positive – Home staging should be about removing the owner’s personality from the space. You can focus on the practical and aesthetic strengths of your house by removing pets, family treasures, and quirky furniture.

According to Forbes, staging homes can make them sell faster and at a higher price. However, home staging may require homeowners to let go of their pride and put their furniture in the storage area. The homeowner will then rent pieces that can highlight different aspects of their house.

Professional Photos are a mush9. Professional Photos Are a Must

Although curb appeal is essential for attracting buyers it’s no longer the best. Curb appeal was a way people saw the house from the street. Although it still applies to some extent, curb appeal is now based on photos posted to the website of a realtor.

Professional photographers are being hired by smart sellers to take their homes through the Ansel Adams process, inside and out. Potential buyers can take a virtual tour of their house from their smartphones while they are at work, or in bed at night. This saves time and reduces hassle.

Pro Photos Will Help You Sell Faster and Nearer to the List Price

Professional photographers are well aware that customers who use their services for photography sell their homes half as fast and at a lower price than those who don’t. This assessment is also supported by most real estate agents.

A professional photographer for real estate is essential because:

  • According to industry professionals, high-quality photos can lead to faster sales.
  • Great photos attract more potential buyers.
  • Curb appeal is changing. You can either adapt or lose.
  • The potential benefits are so great that the cost of the service is almost nothing.

Don’t trust your smartphone photos.

Wrap up

In days gone by, the majority of people lived in one house for their entire lives. This notion is incredibly outdated today. Mobility is a hallmark of modernity. However, it can be tedious and complicated to move from one house to the next.

If you follow the tips above, you can reduce stress and anxiety during the selling process. You must be cautious, however, even then. There are many factors and forces that can cause things to go in unpredictable directions.

There’s no reason to be afraid. Be cautious, be open-minded, and you’ll be happy when you close the deal at the price you desire.

 

How Do Real Estate Agents Get Paid

How Do Real Estate Agents Get Paid

Many people get a real estate license because of the potential income in the real estate industry. How are real estate agents paid for their work? Here’s how real estate agents are paid.

How real estate agents are paid

Most real estate agents are paid commissions based on the sale price of a property. Real estate commissions can be negotiable. They range from 1% to 10%. We will use the 5% commission rate as an example for our purposes. For a property worth $250,000, the $12,500 5% commission will be paid at closing. This does not mean the agent will walk away with $12,500. A predetermined percentage of the commission will be paid to the broker of record.

The commission split

The commission split is the most common payment arrangement between a broker or agent. This the number can also be different depending on if the the property being sold is residential or commercial real estate. The percentage of commission paid to the broker is determined by the terms under which the agent was granted the license. If the traditional 50/50 split is used, each agent will be paid a $6,250 commission at the closing of escrow for the one property.

The promise of success is immense for a real estate agent who has a loyal client base.

If the above example is used and assumes that only one property is sold per month, a real agent can expect to make $75,000 annually. The potential income for a real estate agent who is committed and well-informed about the market where he or she works is much higher than commissions from a single closing per month. This is a significant increase in your income when you consider commissions this large. Your annual income could increase by as little as two closings per calendar month.

broker commission

How real estate brokers make their money

The commissions are even more straightforward for you as a real estate broker. You will receive your share of the commission split if you hold the real property license for all agents. If five agents work out of your office, and each agent closes one deal per month then you will make $31,250 per month as their broker.

Becoming a real estate agent or broker

There is tremendous potential to generate income, regardless of whether you are an agent and/or broker. Your willingness to work hard is the only limit.

Agents with extensive knowledge and experience in the real estate market can make a huge income. An agent who wished to become a broker needs to decide whether they will open their own brokerage or become a franchise of a larger brand. It is important then to know how to buy a real estate franchise. A network of knowledgeable and experienced agents can make you a successful broker.

Working with real estate investors

One way that many agents and brokers have found success is to work with real estate investors. Commercial investors, in particular, can bring in tens of thousands of dollars (or more) each year. That’s because they tend to deal with larger properties that cost many times the price of an average home. Plus, with these types of investments, there is usually more volume. That’s because these investors aren’t just buying a home to live in. They are buying properties to make a living. This makes them great partners for a real estate agent, who knows the commercial real estate market.

In conclusion

Regardless of which route an agent chooses, there are many ways to earn a good living while practicing real estate.

Types of Real Estate Investments – What is Right for Me?

Real Estate

There are many different kinds of real estate investment, but most fall neatly into two broad categories: The first category is residential real estate investment, such as housing property and residential real estate loans. The first mostly deals with single family homes and knowing the right time to sell and buy homes. The second category is commercial real estate investment, which includes office buildings, apartment complexes, retail properties, warehouses, shopping centers and the like.

real estate

However, there is a third category of real estate investment, called “orphan” real estate investment, because the vast majority of it is not involved in buying and selling physical property. These are the type of deals that can still be considered residential real estate investment depending on where they are made.

All the Information You Need

Physical properties and paper properties

These types of transactions, in turn, are grouped into two basic categories. These include “physical” properties and “paper” properties. A physical real estate investment is one in which the investor actually owns the property, while a paper investment is one in which the value of the property is based on some abstract value obtained from a contract or agreement between the buyer and the seller.

Residential properties

Residential real estate investors usually make an effort to get the best deal they can when purchasing residential properties. Buying a home is a big commitment, after all. Hence, investors who are looking for a piece of the action usually go for larger parcels of land with attractive features like schools, shopping centers and amenities like a nearby airport.

In fact, many investors are willing to put up large sums of money to buy residential properties in upscale areas simply because these properties will always have a good value no matter what. Some of the more common types of residential real estate investors include first-time buyers, retired military personnel and people with stable financial histories.

Commercial properties

Real estate investors dealing with commercial property have the advantage of purchasing and managing multiple properties. This gives them greater flexibility as far as making investments go. However, the commercial property also has its drawbacks.

One of the worst things you can do when investing in commercial property is to rent out your rental units. This is because it can be hard to recover money from tenants, and you won’t make much money if you don’t have a steady stream of them paying you rent.

Off-market properties

Many real estate investors focus their efforts on off-market properties. Off-market properties are those that are not being managed by a professional real estate agent. Sometimes these properties may have been abandoned by owners but are still standing.

Because they’re not managed, off-market properties are often less expensive. They make good investments for someone who has enough money to cover the initial costs of buying and then trying to maintain the property.

Off-market properties

To Sum Up

As you can see, there are many types of real estate investments that you can make. If you like to make a lot of money by buying and selling quickly, then you may want to consider becoming a real estate investor. However, you must be patient and make the right investment decisions. Those who do not, can wind up loosing money on a deal.

On the other hand, if you like to have more time to manage your investments and keep an eye on the market, then you may want to consider investing in residential properties. Whatever you decide, there are always options out there that will suit your investing style.

How to Make Smart Real Estate Investment Choices

Real Estate Investment

Real estate investment includes the acquisition, possession, control, improvement, rental or sale of real estate as consideration for gain. In simple terms, it is the buying and selling of commercial, residential, industrial and other real estate properties. The real estate market in the United States is highly leveraged and speculative in nature.

Real estate investment is an avenue through which borrowers can obtain ready cash for their investments in a short amount of time. Real estate investment generally involves the purchase of property in an underdeveloped or distressed condition with the objective of making money.

Acquire Knowledge About the Industry

Real estate investors have several things they need to keep in mind. One of these is that the investor should have a deep knowledge of the industry. Real estate investors deal in several types of investment properties.

Real estate agents

During these transactions, the investor will (usually) have to deal with two different real estate agents. The listing agent represents the seller of the property. The buyer’s agent is the realtor that the investor would hire to assist in the purchase of the property. It’s also important to understand how real estate agents get paid in order to make the right financial decisions when it comes to who the investor hires.

Types of properties

These include single-family homes, condos, commercial and office buildings, farms, ranches, vacant land, tax foreclosures, bank owned foreclosures, government foreclosures and many more. The basic thing that the investor needs to understand is the business of a property management company.

Hire a Property Management Company

There are various reasons why a real estate investor needs to hire a property management company. One of the major reasons to hire a property management company is that the properties held by this professional property management company are always in good condition.

Real Estate Investment

Learn to Make the Right Investment

Another very important thing that investors need to understand is that they should always try to buy reasonably priced properties. An investor should never purchase properties that are priced much higher than their worth.

Real estate investment is one of the most lucrative options in today’s market. Real estate is such a huge industry that it offers a wide variety of investment opportunities. The key to becoming successful in this industry is to find a good real estate investment company that can provide you with a good investment opportunity.

Different ways to invest

You can find numerous ways on how you can make your investments successful. One of these ways is by purchasing residential properties, commercial properties or a piece of vacant land. You can also find several ways on how you can make your real estate investments fruitful by buying low-priced and low-risk properties. You can also find a discount realtor, who can list your property at 1%.

Become a Property Investor

For those investors looking for ways to make their investments successful can do so by becoming a property investor. Property investors are those who purchase properties, either in an active mode or a passive mode.

In active real estate investing, as the name suggests, these people buy properties for the purpose of reselling them. On the other hand, the passive mode is when these investors do not occupy the property directly.

These investments come with risk because, during property selling, there is always a possibility that the property’s price could go down. This is why property investors should always rent out their properties.

Cap Rate

There are a lot of investors who rely solely on the cap rate when investing. One of the advantages of a cap rate compared to other types of investments is that the interest rate of this type of loan is relatively low compared to other loans.

Many real estate investors now offer a cap rate mortgage, which is essentially a mortgage from the cap rate loan provider with a fixed interest rate. As you can see, real estate investors now have a wide array of choices when it comes to lending.