Home for Sale

Home for Sale: there is no doubt that you've seen one of these signs in front of a house or pointing down a street.  Maybe you've even thought about putting up one of those signs in front of your house lately.  Well, here are a couple of tips that might come in handy before you put a "house for sale" sign on your front lawn.

Local Home Values

If you are thinking about selling your home, then you should try to find out how much the home is worth before you start talking to anyone.  This is especially true before contacting a real estate agent.  Finding out how much your home is worth is actually pretty easy; just start house hunting yourself.  That's right, the best way to find out how much your home is really worth is to start looking in the newspaper or searching online for comparable homes to the one you own; ones that are already selling in your township.

Figuring Out Home Values

Ideally, you want to find similar style homes (colonials, split levels) with the same numbers of bedrooms and bathrooms as your home.  The closer this comparable home is to your home, the better the estimate of your home's value.

You can even pretend that you are buying a home yourself, visit nearby homes for sale, and take a peek inside during an open house.  Make sure that the homes you choose have the same curb appeal, are equally maintained, and are in nearly the same condition as your home - both inside and out.  Once you've evaluated a couple of homes that are similar to your home, you should have a good idea of your home's value.

For Sale by Owner

If you are going to sell your home, then you have a couple of options.  The least expensive way is to sell the home yourself.  If you decide to go down this route, just remember that there is no such thing as a free ride.

If you are going to do a "for sale by owner," then you will need to find an attorney to handle the transaction on your behalf.  You will also need to find real estate contracts and disclosure forms.  There are many companies that sell kits for this market.  You can also find legal software on the Internet that has all the forms you will need to sell a home on your own.

Selling Homes Using Real Estate Brokers

Using a real estate broker is a more traditional approach to selling a home.  Brokers are paid professionals that understand the local market and can help you quickly figure out the best approach to selling your home.  Make sure that you have a good idea of what your home is worth before talking to a broker.  Remember, they earn commission on the sale of your home, so the more homes they can sell, the more money they make.  It is much easier for a broker to sell a home that is valued less than the market will really pay.

Real Estate Broker Fees

As the homeowner, you want to make sure you are fairly compensated for your home's true value.  Most real estate agents charge a 6% commission for the sale of your home.  They do a lot of work, but if your home is worth $300,000, then you will be paying $18,000 in commissions.  Make sure they are earning this money and protecting your interests as the seller.

Negotiating Broker Fees

Speaking of sales commissions, most agents will negotiate lower commissions if homes in the area are moving quickly and home prices have risen dramatically in the last several years.  In some areas of the country, home values have nearly doubled in the last six years.

This means that sales commissions owed to real estate agents have also doubled in those areas.  It is very likely that your salary has not doubled in the last six years, but the agent's salary has - get the picture?

This particular phenomena has caused a dramatic increase in "for sale by owner" listings.  In fact, smaller companies charging only 3% commissions are starting to appear across the country.  Do you homework and evaluate your options, negotiate with the agent, and see if you can get them to lower their commission.

Best Time to Sell a Home

There are a lot of factors that determine a home's value, including the school system and the economic factors in the surrounding areas.  There is also a seasonal influence to home values, especially if the home is located in a community where the school system is highly valued.

Most people are unwilling to pull their children out of school mid-term and move them to a new community.  The laws of supply and demand mean that there will be much more demand for homes in the months just prior to school's close in the June timeframe.  This way, closing on a home can occur over the summer months.

According to Census Bureau statistics, from March through August, there are more homes sold than any other time of year.  This means selling your home at this time of year should yield you more money.  In summary, there is a large demand for homes during the summer months.

Negotiating with Buyers

When you have a home for sale, you want to make sure that you are getting its fair market value.  Neither the buyer nor the seller should be looking to take advantage of the other party.  If negotiations are stalling, then keep the lines of communication open.  See why there is a fundamental difference in opinion.

Has the buyer checked out other similar homes?  Is there something about the home's condition that makes them think the home requires a major repair?  Focus on the issues that you can resolve to keep the negotiations moving along.  Finally, if negotiations come to a halt, figure out if there is some way to find a middle ground.

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