When the issue of selling real estate comes up, what comes to the mind of most property owners in the US is usually “how to quickly and profitably sell real estate in the USA”
Among other question properperty onwers ask as they want to dispose their property are;
(a) Is it the right time to sell my house or apartment in the USA ?
(b) Where do I start the selling process?
The most important questions for the real estate seller to decide :
- By yourself or with the help of a broker (realtor)?
- How much? Cost and how to determine it? How?
- How much does the sale of real estate cost and whose services may be needed?
Let’s start with ” By yourself or with the help of a broker (realtor)? “
Realtors do a lot of crucial behind the scene work in the sell of real estate property and therefore of course I will advise you to find a realtor to sell your property .
The most important and basic:
Other brokers will very quickly see your real estate apart from neighbors and will “bring” buyers to you. The sign “for sale by owner” will certainly interest the buyer, but only if he sees it. Usually, buyers work with realtors (because buyers do not pay for this), and realtors usually do not want to contact “for sale by owner” – because they run the risk of not earning anything on this deal … Thus, you need to promote not only buyers but also their realtors. Clear?
I hope to ask a professional broker for help, I have convinced you 🙂
The second question, which could have been the first – ” How much to sell? “
A very important, difficult and painful question. The price must be real. How to understand what the real price is – CMA.
What is CMA (comparable marketing analysis) – comparative market analysis. Created by a CMA broker (but you can do it yourself). For comparison, we take apartments or houses sold (closed), preferably in the last 6 months, very similar in type, year of construction and footage within a radius of one mile. That is, we compare a three-room apartment with a three-room apartment, and a two-storey cottage with the same cottage. Further, such moments as the presence of a completed basement, repairs, a view of a forest or a lake, and other pros (or cons) of your house are corrected. It is important to understand that if the compared houses are worth 300,000, but your house is better and you invested $ 200,000 in its renovation (built a pool, laid all the stairs with marble, etc.), then your house is not worth 500. $ 000 (in terms of comparative analysis). Unfortunately. How much it costs – a realtor will help you figure it out. Two points:
- a broker representing the buyer does the same analysis for his clients. And to the question “is the real estate worth the money” – if the price is too high, the broker’s answer will be “not worth it”. Yes, no one canceled the bargaining, but it is still better to start the sale with an adequate price, and not “what if you get lucky and someone will pay one and a half times more.” If you are not in a hurry, you can start with the desired price, gradually lowering it to the real one.
- roughly the same analysis is done by the appraiser. What does this mean, which means that a transaction based on a loan may simply fall apart if the price is too high. The bank simply will not give money for this purchase. There are, of course, buyers with their own money, but as a rule, these are investors who initially want to buy cheaper – a discrepancy.
That is, by listing real estate at an adequate price, you have more chances to sell quickly – which means you will pay less payments (credit, tax or HOA). Sometimes it makes sense to claim to put a price below the average – to accelerate the process.
Often sellers do not listen to the broker about the price, but the broker needs clients, and of course he follows the lead and promises to sell. And then the clients are offended by the broker that the house is not for sale. Would you buy a property yourself at a prce higher than the market price? I doubt and the answer usually “no”.
Sales methods. Advertising and other marketing
- MLS is a desirable and even mandatory location (Multi Listing Service is a database where realtors enter everything they sell. The database, unlike other resources, is reliable and reliable, contains a sufficient amount of information about real estate). A real estate agent can place real estate in this database. Your property will automatically be included in the mailings of buyers and realtors who are interested in similar offers. Also, data from MLS is quickly uploaded to the favorite places for finding buyers Redfin.com and Realtor.com
- If you still intend to try your luck without a realtor – FSBO (owners.com or FSBO.com) will help you. This resource replicates your sale to many resources: owners.com, craigslist (Craigslist is a good resource for renting, but not taken seriously for selling), resources such as zillow, trulia. For $ 400 FSBO will place your property in all of the above and on the MLS for 6 months;
- Radio and newspaper advertisements. Sometimes it works, especially if housing is sold in the favorite places of a certain community. Of the minuses – additional costs;
- Open house. Open house is good for attracting neighbors and residents of nearby areas;
- Word of mouth and social networks. Good and to the point advertising in social. networks (Facebook, Twitter) can bring unexpectedly fast results;
The cost of selling real estate in the United States.
The seller is always concerned with the question of how much “clean” money he will receive from the sale. Possible costs on the part of the seller:
- Brokerage services. The size of the commission is always discussed directly with the realtor and is set on a contractual basis. There is no average commission, it can be 3% and 7% of the property value. How to agree and what package of services you will receive. From just posting on the MLS to a complete package with professional photo portfolios, media advertisements and open houses;
- Listing costs without a realtor (see advertising and marketing);
- Repayment of the remaining loan – mortgage payoff amount;
- Services of a lawyer (real-estate attorney). The work of a lawyer is the verification and preparation of all documents for the transaction. Services cost about $ 300-500;
- Home appraisal. Completely optional expenses on the part of the seller to determine the market value of the property;
- Some closing costs (for example taxes – tax proration)
- Income tax (state law, if you are an investor and the resale of real estate occurs earlier than a year after the purchase, you will pay income tax)
- Utility bills, etc. at the time of sale;
- Remodeling / cleaning costs;
- Other costs are possible by agreement with the buyers (with rare exceptions, the seller can bear part of the buyer’s costs)
When to sell?
If you are just a seller, whose circumstances have developed that it is necessary to sell, then this question is not so important. In the autumn-winter period, the number of transactions decreases, in the spring-summer they grow. There are times of very strong stagnation, and then it makes sense to think about options such as “rent to own” or “land contract” (a situation when the seller becomes a lender for the buyer). Well, the price situation on the market is important because – see the paragraph “for how much to sell?”
How to prepare your property for sale?
The physical condition of the property is not unimportant. How to sell AS IS or refurbished? There is no unequivocal answer, a professional should help to determine.