Selling a Home Archives

Selling Your Home step-by-step

It is a pleasure to run through the details about selling your home. A quick step-by-step fly over to hear what goes on behind the scene. In our office, we have our detailed list of real estate activities for listing your home at about 200. Yes, you heard it right, 200 detailed steps in properly listing and selling your home. This may all sound like a lot, which it is, but we do this every day, so our job is to make it look easy.
I’ll like to break it down into 9 categories and/or subjects to easily follow along in the process.
Category 1 (around 17 steps) – Making the decision to sell your home. There are multiple reasons you are at this point, a job, getting married or divorced, your family is growing or all grown. And the decision will be both financial and emotional. We’re here to walk you through it. We’ll answer your detailed questions for your situation and desired goals. How to get it all done and discuss any special arrangements needed for you or your property.

Category 2 (24 steps) – Researching the current real estate market. We’ll learn about everything you have done to your home and how it will affect the price. The real estate market is a moving target; so, we’ll share every detail of what’s happening in the neighborhood and city. We’ll do all the back-end research and follow up to verify we have everything correct and prepared and ready to compare what is happening in the real estate market.

Category 3 (22 steps) – Pricing your home for sale. Our goal is to get you the most the market will bear. There are many factors to consider ensuring we attract the right buyers for your home. There are times to balance the terms of the sale around the market and your needs. We’ll talk about the benefits and hurdles that may arise during the process.

Category 4 (around 21 steps) – How to prepare your home for sale. Your motives for selling will point us in a direction that works for your timing, budget, and schedule. There may be some repairs, some upgrades, some moving of furniture, but only after we have discussed the benefits of any efforts and money put forward to sell your home for the most.

Category 5 (28 steps) – Marketing your home to buyers. We use a combination of still photography and videos, posted across a variety of platforms, to cast a wide net for buyers and their agents both locally and out of state. Reaching out both online and offline through traditional methods to capture eyeballs. Identifying other homeowners looking to purchase in your area. Presenting your property in the best ways possible.

Category 6 (24 steps) – How to stage and prepare a home for showings. We will discuss the options available to you and your particular home. Not one scenario is the same so we want to be sure that the process works for your schedule and timing. We’ll discuss moving furniture in and/or out of your home so that the potential buyers can imagine their family living in the home. Accentuating the best areas of your home.

Category 7 (around 22) – Negotiating purchase offers and real estate contracts. There are a lot of pages in a real estate transaction. We will review them several times so that you are aware of the benefits and importance of each to obtain the best possible scenario for you and your family. The can be a technical and emotional stage of the process. We’ll share decades of experience and scenarios to help you make the best decisions for your situation.

Category 8 (22 steps) – Performing home inspections. There are some basic inspections, such as the city and home inspection, and there may be others requested by the buyers. We’ll prepare you for the most common scenarios and any unforeseen findings. Some things recognized or called out can be quick repairs while others may need to be negotiated further. The best part is that there is always area for discussion to obtain a win-win scenario.

Category 9 (18 steps) – Preparing for the close. It was one thing getting through the process, but this step depends on where you are going. Whether you are buying across the street, in another county, or out of state… we’ll walk you through until you have keys in your hand for the next chapter in your life. Signing the last few documents, packing those last few boxes, makes the transition a sweet reality. If this is your first sale or your last, we’ll be there to ensure it all gets wrapped up efficiently.

Our goal is to make the transition a memorable part of your real estate journey. It would be our pleasure to assist you. Watch the video on YouTube

Reach out with questions...

Selling Your Home Without a REALTOR

Are you thinking about selling your home without a REALTOR®?

Some homeowners choose this option but not necessarily the most common. The National Association of REALTORS have noted that about 8% of sellers sold their home For Sale By Owner (FSBO) while less than 2% of sellers sold their home to a home directly to a buying company. While this is a riskier option, it’s not impossible to complete a transaction without an agent.
There are two options normally pursued when doing it yourself: 1) Sell to a cash buyer and/or home buying company and 2) Market it yourself as a For Sale By Owner (FSBO)
Option #1: Sell your house to a cash buyer
One way to complete a fast sale, locate and consider selling your house directly to a cash buyer company such as I-Buyers, house buying companies, or investment groups. These entities purchase properties outright and promote the convenience and certainty of your sale.
Positives:
You can sometimes avoid home inspections and repair requests. Most cash buyers will not require you to complete repairs and in most cases will not require a home inspection at all. Next, it is convenient not to have to prepare for an open house and home showings to potential buyers. No worries about cleaning or last-minute walk-throughs to see your home. Some homeowners remember what it takes to load up the family and pets just so you can disappear for an hour. Lastly, you can stop planning that needed upgrade or room painting. Again, because this is an as-is purchase, you won’t be hiring any contractors to visit and price out a job. You can also bypass normal updates needed to increase your home’s marketability and attract buyers. Yes, no decluttering, staging, painting, and updating hardware and fixtures just to make the sale.

Negatives:
The sale price in most cases is much lower than expected. Remember, easier comes at a price. The cash buyer’s strategy is to acquire your property at a discounted price so that they can make a profit after their upgrading process. Studies reflect that cash buying company fees could cost sellers 14% to 20% of a home’s sale price; these is significantly higher than real estate agent commission which is usually around 6%. So, if your home sells for $400,000, you’ll be walking away from about $56,000 of your home’s equity. They will only purchase your home if they can earn the best profit possible. They have experience knowing that some owners are willing to sacrifice money in exchange for speed and convenience.

Time for self-promotion: So… What is a “REALTOR”
Oftentimes, the term REALTOR® is used interchangeably with real estate agent. However, the two are not the same—REALTORS® are real estate agents, but not all agents are REALTORS®.
In my opinion, a REALTOR is an expert who will search for your dream home. Help you negotiate to get it. And then spend time in your community to help make it better for everyone. Now ask your home search app to do that…

Option #2: Sell your home on the open market without a real estate agent (FSBO)
Sellers are often drawn to FSBO because they want to save on agent commission and control the entire process. However, with added control comes responsibility. You’ll need to advertise and market the listing, price it accordingly, and host walk-throughs and open houses.

Few homeowners are willing to take on these tasks and risk selling their homes for less. In 2018, the National Association of Realtors shared that FSBO sales accounted for only 8% of home sales, the lowest percentage ever since data collection began in 1981. But if you’re savvy at marketing, home design, networking, and negotiating, you may just pull it off.

Positives:
You save on real estate agent commission fees, which usually sounds great. That amount will increase your net amount after the sale. Now there are advertising platforms for your home to be listed on a website (which costs around $325 and a monthly fee thereafter) or you can always try your personal Facebook page. And, good to know is that you can still list your home on the Multiple Listing Service (MLS) to ensure you reach the most homebuyers possible. Using a flat-fee listing service can range from about $250 to $500. Remember, you will need to provide the photos, information, and the verbiage to tell everyone about your home.

Negatives:
Statistically, you’re likely to sell your house for less money than if you hired a Realtor®. Real estate agents sell homes for around 7% more than FSBO sellers do, according to historical data. Nationally, the typical FSBO home sold for $287,900 compared to the $307,200 that agent-assisted homes sold for in 2021. Most commonly, why FSBO homes usually sell for less, is that Buyer’s agents out-negotiate FSBO sellers. Homeowners often miss the mark in setting a competitive listing price. And when they price their homes too high, their home sits on the market, leading to lower offers over time. Notably, a home inspection report could reveal issues that the seller struggles to address efficiently. They may concede to too many repairs and lose money or they may counter back ineffectively and influence the buyer to leave the deal. Lastly, FSBO is time-consuming: You’re in charge of marketing, communications, and scheduling all the tasks. In addition, you’ll need to plan and prepare for personal safety, wire fraud, phishing scams, and any negative feedback about your home that you have enjoyed for years.

If you’re planning to go this alone, be ready for a part-time job. Understand, the trade-offs before selling your house without a Realtor® is only the first step. Having a solid understanding of what your responsibilities will include and what you might sacrifice in the process. Remember, every home sale process has its positives and negatives.
But do keep in mind, we love real estate, and helping others. Watch the YouTube video HERE.

So, feel free to call anytime 800-584-1490.

Let's Talk About Your Options...

Seller Resources – Paying Taxes after Selling Your Home

Paying Taxes after Selling Your Home

Have you lived in your home for over 2 years? You may not be liable to pay tax on the sale of your home if the net profit is less than $250,000 if you’re single, or $500,000 if you’re married and file a joint tax return. The IRS provides a home sales exclusion for the sole purpose the sale of your primary residence when you meet the qualifying conditions.

Timeframe: You would need to have owned the home for at least two of the last five years to qualify, and you must have lived in it as your primary residence for at least two of the last five years as well.
Your time of ownership doesn’t have to be concurrent with the time you lived there.

Home Sale Exclusion?

It provides that anyone, regardless of their age, can exclude up to $250,000 in gains on the sale of a home, and a married couple filing jointly can exclude up to $500,000. This means that most people will pay no tax on the sale of their home unless they lived there for less than the amount of time mentioned above.

Tax-Free Gains When They Sell Their Home?

You must meet the following IRS requirements to qualify for the capital gains tax exclusion on your home sale:

The ownership test: You owned the home for at least two of the last five years.
The residency test: You lived in the home as your main residence for at least two of the last five years.
The home must be your primary residence, not a secondary or vacation home.

Your ownership period and residency period don’t have to be concurrent. You could rent the home and live there for two years, then purchase it and own it for the remaining three years while living elsewhere. You can use this capital gain exclusion to avoid tax on a home sale over and over, provided that you meet these rules.

How Are Gains or Losses Calculated?

You can run the numbers on your home sale by taking the original purchase price and subtracting any applicable selling costs, less the cost basis. Your cost basis is what you paid for the home plus the cost of any qualifying home improvements.

For example, you might have paid $480,000 for the property, and you spent $60,000 on allowable improvements and additions. Your cost basis then would be $420,000. Selling the home for $650,000 less commissions and fees of $39,000 would leave you with $611,000. The difference between the net of $611,000 and the $420,000 is your capital gain: $191,000

You won’t pay tax on this amount if you have lived in the home for at least two years, owned it for at least two years, and didn’t exclude the gain from another sale in the last two years. That $191,000 under the exclusion threshold, whether you’re married or single.

Remember to store all your receipts and records of any improvements made to the home to help reduce the total amount of your taxable gains. Certain types of home improvements can be added to your cost basis and will reduce the amount of reported gain.

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