Selling your house is a big deal
Selling your house is a big deal with a lot at stake. Listing a house for sale isn’t as easy as slapping a price tag on it and wishing it luck, or calling an agent and expecting them to wave their magic wand to sell your house for top dollar in minimal time with no involvement from you. On the contrary, even with a qualified real estate agent you’ve got to be in the trenches, hands-on with all that’s involved with selling your property. Here’s what you need to know about how to sell a house in Sioux Falls.
Should I Sell or Rent My House?
Tough decision: You’re moving and aren’t sure what to do with the house you currently own. Are you better off selling the home and cashing in, or would it be wiser to use the property as a rental? There are plus and minus signs to both sides, and you will need to base much of your decision on your reason for moving coupled with the amount of risk you’re willing to take.
If you decide to sell, then you have to list and show the house while you still live in it. Not only do you have to stage and show the house while you’re occupying it, but you’ve also got to shop for a new home and cross your fingers that the timelines align so that your house sells and you can use those proceeds to pay for the next with the utilization of a contingency.
Should you opt to rent the house out, you can focus on your move first and then find the right renter once the house is vacant. For this option to make sense, you have to be able to rent out the property for more than your mortgage payments. You’ve also got to be willing to accept the responsibilities associated with being a landlord – finding renters, collecting rent, enforcing rules, managing repairs, handling evictions and legalities, cleaning and repairing for new renters, and then resetting. You could also hire a management company, but you’d have to work their fee into the rent you charge, too.
Can You Sell a House While it is Rented?
Yes, you can sell a house while a tenant lives there, but not without complications and compromise. When possible, wait for the lease to expire to avoid legal complications. Opening a tenant-occupied home for viewings is uncomfortable for everyone involved including both agents, the tenant, and the buyers who may pick up on the resistance.
Investigate your local tenant-landlord rules, which vary from one jurisdiction to another.
Even if the lease has expired, offer the current tenant the right to refuse, or the option to buy since they don’t have the option to resign on another lease agreement.
Offer the tenant a gift of gratitude for their tenure, and an added compensation if they’re willing to invite potential buyers and their real estate agents to tour the property, which means also agreeing to keep the place in excellent shape until the sale is final.
Choose a Real Estate Agent
When you’ve decided that selling is a more viable option for you than renting, you’re reading to reach out to real estate agents.
Because you’re selling, there are a few questions you can ask agents that can clue you into their level of success. About the last several houses the agent sold, ask the following:
- What was the original asking price for the house when it was listed as opposed to the final sales prices when the transaction closed?
- How long was the house on the market from the list date to close?
- How many price reductions did the home endure before selling?
How Long Does it Take to Sell a House?
The timeline for the sale of a house varies.
That’s not always the case – and that’s not including showings. Your timeline will depend on your level of preparation, the price you set for your house for sale, the schedule you agree upon with the buyer, and the efforts of your real estate agent.
If you receive and accept a substantial offer from a buyer who already has pre-approval for their home loan, has no contingencies, and is ready to move on the drop of a dime, you could speed right along through the process. However, if you’re selling to a buyer who has yet to apply for their home mortgage loan, or whose offer is contingent on the sale of another property, you might find yourself hung up.
Another place you might get deterred is in the inspection process. If the review reveals significant problems that you need to resolve before the close of sale, you could have to extend the timeline accordingly.
What is the Cost of Selling a House?
The saying is true, even in real estate, “You’ve got to spend money to make money.” While you’ll hopefully be gaining a nice return on investment for the sale of your home, you also have to expect to spend money up front preparing for that sale. You’ll be paying your real estate agent’s commission, any repairs you make to improve the condition of the home, costs for staging, repairs required post-inspection, if you move before you list your house you’ll likely continue utilities so your realtor can show the house with lights and heat or air. Also, the buyer may ask you to take part or all of the closing costs. And, don’t forget about your moving costs for things such as boxes, tape, storage units, moving companies, etc.
Who Pays Closing Costs when Selling a Home?
Traditionally, the buyer pays closing costs on a real estate transaction. However, it isn’t a bit unusual for a purchaser to request that the seller pay part or all of the closing costs out of the proceeds of the sale. You can agree to pay all of the closing costs, a portion of the costs, or your can counter-offer and reject the request to accept any responsibility for closing costs.
How Do I Sell My House for Cash?
Cash transactions are attractive to sellers because the deals usually process faster, encounter fewer setbacks, have smaller obstacles, and don’t require as much paperwork. When you opt for a cash buyer, you play one-two-skip-a-few right over the bit about the lenders, mortgage loan applications, and requirements.
Selling a house for cash can be tricky. Before you accept an offer from a cash buyer, verify that funds are available, and beware of scams and fraudulent claims. Also, know that cash buyers are going to offer less for your house in exchange for the ease of purchase. Beware of home investment companies marketing that they’ll pay cash for houses. It’s true; they will – but sometimes it’s shady. If you’re going to work with an investment company, check for licensing, insurance, read reviews, and find out what other folks are sharing about that company before you agree to do business.
How Does Seller Financing Work?
When a seller is extremely motivated and willing to work with buyers who cannot qualify for a traditional home mortgage loan, that homeowner may offer seller-financing on the property.
Seller financing is when the seller offers to carry the mortgage, essentially lending the funds for the purchase, to the buyer. The homebuyer still makes a down payment to the seller, and the terms are worked out for payment amounts, interest rates, the life of the loan, etc.
There are two ways of going about seller financing: The first is where the buyer receives the title and can sell or refinance the house as desired, provided he or she continues making the payments on the loan. The second type of seller financing is where the owner holds the title until the final payment is made, meaning the buyer cannot refinance or sell the home before the new owner pays in full.
What is a House Appraisal?
An appraisal is an inspection conducted by an appraiser. The service provider obtains public records information and a comprehensive market analysis report to gain an understanding of the real estate climate in the area and for the general information about the property. Then, the appraiser physically assesses the property to determine the effects of aging, weathering, and how well you’ve maintained the property. The appraiser also considers upgrades such as in-ground swimming pools, permanent fixtures, and landscaping. Then, the appraiser provides an estimate of what he or she believes your property may be worth in the current real estate market.
An appraisal is an opinion – an educated, experienced, well-rounded opinion, but an opinion nonetheless. Furthermore, an appraisal is an opinion of a subject that is ever-changing, fluid, in motion. The real estate market shifts – it rises and falls with supply and demand, so what a house is worth today may be an entirely different number tomorrow.
How much Does a House Appraisal Cost
The cost of this service varies, but you can expect to pay somewhere between $300 on the low end and around $700 on the high end. Although a listing appraisal is optional, not required, and the seller doesn’t need to obtain one unless looking for aid in how to price the home for sale, the buyer’s lender will require an appraisal after you’ve accepted the offer. If you have a pre-appraisal, you will not be able to use that to satisfy the buyer’s lender. Furthermore, in real estate sales, it’s usually the consumer who pays closing costs, so the buyer should pay the appraisal.
House Appraisal Tips
Appraisers use science coupled with art and experience to assess a home’s value. But they’re human. The service provider’s opinions begin forming the moment he or she drives up to your property for their first impression. You can influence their perception for the better by catering to the senses and making sure that the environment looks, smells, and feels nice.
Appraisers work primarily in $500 increments. If he or she sees little upsets such as ripped window screens, bent frames, chipped paint, rusty fittings, squeaky doors, cracked socket covers – those small items are going to ad dup to big bucks. On the flip side of that coin, small upgrades can add substantial value. Take care of the little things before your appraiser gets there.
How to Price Your Home for Sale
Use a free online home valuation calculator as a starting point. If desired, order a listing appraisal so an appraiser can help you understand the value of your home in today’s real estate climate. Next, consult with your real estate agent and review the comprehensive market analysis report. With a clear understanding of the prices that buyers are willing to pay for houses similar to yours in your area, you’re positioned to make an educated decision on the price of your home for sale.
Do I Have to Accept an Offer on My House?
The rules vary on whether or not you have to agree to an offer on your house based on whether you’ve received a single offer or competing offers. The price suggested in the bid for the house also influences the rules as to whether or not you must accept.
You don’t want to be guilty of false advertising or bait and switch if a single offer comes in on your home at full price with no obvious reasons to reject the offer such as contingencies or conflicting timelines. However, if you have competing offers in which buyers are offering more than the list price, you have the right to reject the lower offers in favor of the higher priced offer.
Can a Seller Accept a Different Offer?
When you’ve already accepted an offer and signed the deal, you’re locked in and cannot accept a second offer on the home you’re selling. It’s not unheard of, though, to consider that second offer as a backup in case the first offer falls through – but you can’t ditch the first buyer in favor of the second offer.
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Contact Pam Hoefert/ RE/MAX Professionals Inc
Phone-605-366-7119 [ pamh1222@gmail.com ] www.pamhoefertrealestate.com
