How To Sell My House

It's a tough market, so price is key

Let's face it. It's not the real estate market of even just a few years ago when, if you wanted to sell your house, you had all the cards in your favor when it came to price. Now, the buyer is in the driver's seat, and unless you can afford to sit back, and wait it out for the buyer to come along who is willing to offer the price that you really want, it's likely that you'll have to at least make a few concessions.

For some it is a painful proposition. Many people are in a situation, for example, where they are upside down, or basically, owe more on their mortgage than their house is worth. The higher the value your house was, and the more affluent the neighborhood you live in, the worse the situation may be.

Still, the housing market is picking up a little bit, and buyer's are eager to take advantage of historically low interest rates. So, it's not all bad. There are a few cards left in your own deck when it comes to selling your house.

But price is key.

How you determine price is based on a number of factors. People in the business will tell you in a minute it's a little bit of art as much as it's a little bit of science. And of course, no two appraisals will ever be exactly the same. They should come fairly close, however.

Hire someone to help you

It's true that you can sell your home without a real estate professional. And certainly you can also save money by avoiding the commissions real estate professionals charge. Still, they have buyers at their disposal. They have the MLS system to list your house on. And because they make their living in real estate, they can also guide and direct you well on what is available to you as a seller, and certainly they can assist you in better understanding what buyers are currently looking for.

Generally, once you hire a real estate professional, they are going to do a comparative market analysis to try and determine what comparable homes in your area are selling for. They'll take into consideration factors such as how big your house is, how many bedrooms it has, how many bathrooms, whether or not it has a basement, and whether or not the basement may be finished. Not only will they look at current selling prices for comparable homes in your area, but they will also take a look at what recent comparable home sales have gone for. This is a really important part because some sellers overprice their homes based on the emotions they have for their homes. It's good to have a rounded figure when it comes to determining the real value of your house.

Don't just hire anyone

Like most things in any market, there are a ton of brands and options to choose from. The case is the same when it comes to the real estate market. There are perhaps thousands of individual agents operating within up to a hundred or so real estate firms, and so picking the right agent, and the right firm is as important as is determining how much to sell your house for.

Whatever agent you choose should be someone who you feel comfortable with. You want them to sit down with you and discuss a variety of factors that will not only look at the housing market around you, but whatever your particular needs are as well. Such as whether or not you are upside down. How much can you afford to lose, for example? If you sold your house at "X" price, would you still be able to come up with the money to pay the difference? And what about where you will live once your house is sold. Will they be helping you to look for a new home as well? And how would the price you can realistically sell your house for affect where you might be able to go?

All of these questions will help you and the agent to come up with a fair market value price for selling your home that also meets your needs as a seller. Most importantly, you have to feel like you can trust your agent. Doing a little self homework may be in order as well. The more informed you are, the more you will recognize when the agent you hire is looking out for your best interests, and is doing the best job that they can do for you.

The bank can do an appraisal

If you are really wanting to know what your house is worth, then the best way to determine that is by going to a bank and asking to have your house appraised. Granted, it's not free to have it done. But it may be a worthwhile expense, especially if your house is particularly unique relative to your neighborhood, or is in a higher-end community where there can be a bit more fluctuation in style, ammenities, size, and of course price.

A bank appraisal can also be a valuable tool for the seller in that it helps to illustrate to a buyer that the deal they are getting is a good one. When the buyer can see the numbers for themselves, it justifies any price that may be asked for.

Additionally, regardless of what your agent says your house is worth, and regardless what the tax man says your house is worth, or what you think the house is worth for that matter, an appraisal by a bank will give you a better idea as to how much a bank would be willing to loan to a buyer to buy your house. This helps the buyer as well. At the end of the day, this really is what matters. If the buyer cannot afford to finance the house your sale is as good as dead in the water.

Be willing to budge

Again, this is a tough market. You as the seller do not have the upper hand right now. Buyers can be picky, especially when they also know they are in charge. They are certainly going to expect more for their money, and they are going to expect the seller to be willing to negotiate. That means you are probably going to have to negotiate the price as well. You need to be willing to be flexible. 

Gone are the days of full price offers, and certainly gone are the days of overbids. Buyers want a lot of bang for their buck, and you have to be able to provide them the value they are looking for. Especially if the inventory of houses in your particular area is unusually high. The best houses at the best prices are the ones that will sell fast.

And if you have problems like an older roof, dirty carpets, or marred floors, buyers are going to be less willing to overlook these things just because they like the house.