Sellers Questions & Answers
When is the best time to sell my home?
You may have heard the term “seller’s market” before. In a seller’s market, demand for homes rises and sellers can get a lot more money for their house. The following factors may contribute to a seller’s market:
Low interest rates
The possibility of interest rates rising in the future
Other economic factors may contribute to the market. Some cities may experience a seller’s market while other simultaneously experience a buyer’s market. Reach out to a local real estate agent for more information about the current state of the market.
How can I figure out how much a home is worth?
Whether you are buying or selling, you may find yourself doing some Internet research to see the value of homes in the area. But before you accept the first number, know that not all online calculators are accurate because they don't take special home features that add value into account. Everything from new appliances to construction down the street can affect your home’s value.
The best way to figure out your home’s current value is to reach out to local professionals. Real Estate Brokers or Professional Appraisers can give you an estimate through a consultation or Competitive Market Analysis (CMA). CLICK HERE TO OBTAIN YOUR FREE CMA!
What is a Listing Brokers Commission Fee?
Traditionally, Sellers will pay 6% to their residential Real Estate Listing Brokers. Sometimes this number can be more, depending on the difficulty or liability the Broker takes on as part of the sale. The Broker will split the difference between themselves and the Buyer's Broker. Sellers negotiate the commission with their Broker. Ask your Broker for information on commission packages and what they may or may not include.
How should I prepare my house before selling it?
Preparing your home to sell begins with disassociating yourself from the home, depersonalizing your house, decluttering, organizing bedroom closets and storage cabinets, consider renting a storage unit, remove or replace favorite items, make minor repairs, make the house sparkle, scrutinize curb appeal, and stage your home if you wish to do so. CLICK HERE FOR A FREE HOME SELLING PREP CHECKLIST to get you started.
Should I order a home inspection prior to listing my house for sale?
Getting a pre-sale home inspected is never a bad idea, especially to get your client the best price for their home. You will have an opportunity to see what items need to be fixed prior to the public doing their own inspections, giving you a chance to get some or all of those repairs made. Most homebuyers will feel uncomfortable purchasing a house without seeing a home inspection and they'll often hire their own inspector. Either way, a home inspection may be done on your home, whether you want to be proactive or reactive is up to you. I say it’s better to be safe than sorry. Talk to your Realtor® about this to see if it makes sense for you to obtain a pre-listing home inspection.
How long will it take to sell my home?
No one wants their house to sit on the market for too long. A house may take anywhere between 30 - 45 days to sell depending on the market. If a market is hot enough, sellers could find their home off the market within a week. If the market is slow (or the house is overpriced) the number could reach triple digits. Exposure, negotiations, and the condition of the home will also affect its ability to sell fast. Once an offer is made and accepted, closing could take up to 60 days depending on inspections, repairs, appraisals, lender timelines, etc... Check with your Realtor® to see what kind of schedule is forecasted for the sale of your home.
Why is my home’s assessed value different than the market value?
Since there are many different metrics that can predict a home’s value, you may see some differences. Homeowners pay property taxes based on their home’s assessed value. But this number is not always accurate compared to the market value because the market values fluctuate more than assessed values. In other words, Assessors will use their own matrix to create the value needed for property taxes but they cannot base themselves on market values because of the quick fluctuation that can occur. So, when you are getting ready to buy or sell a house, pay attention to the market value. You will only need to worry about the assessed value when calculating how much you will pay in property taxes and this is something your Realtor® can help you with.
Are real estate prices negotiable?
Absolutely! There is usually a difference between a home’s list price (how much it is on the market for) and the sale price (how much it sells for.) In a seller’s market, buyers who want to negotiate should be careful. High demands leaves little wiggle room for negotiation. If you want to negotiate, talk to your Realtor® about what you should offer.
How can a Real Estate Broker really help me sell my home?
Real Estate Brokers have the experience, connections, and knowledge to help you sell your home for the right price. If you are selling, a Real Estate Broker can:
Help you choose the right price for the sale of your home.
Put your house on the local MLS and give your listing more exposure
Stage your house for open houses and answer buyers’ questions
Market your listing outside of the MLS onto major Real Estate websites as well as local ones
Create marketing campaigns.
Will recommend solutions for you to choose from when negotiations are in play.
Will review every document from the lender, title company, buyer, county, etc... to make sure everything is in order...believe me there is A LOT to go through and understand.
Protect you for the hassle of being in contact with everyone who wants to see the property who may or may not show on their scheduled appointments.
Protect you against doing something legally wrongful that could get you in trouble in the future, even after the sale of the home.
It is possible to sell a house without an Broker, but you can trust that we will get you the best deal and save you money down the line. Have more real estate questions? Contact me!
How much are Seller's closing costs?
Selling a home comes with a handful of costs. Expect to give up at least 10% of your home’s sale price. These costs include:
Keeping utilities on for the inspections
Any repairs needed
Staging the house
Obtaining or keeping a home owners insurance policy
Title company closing costs
Mortgage Payoff, if applicable
Real Estate Broker commissions
New Mexico Gross Receipt Tax on Services: CLICK HERE TO LEARN MORE ABOUT GRT
Do I need homeowners insurance to sell my home, even if its a vacant home or land?
Yes Yes Yes! If you don't have it, you'll need it for the sale of your home or vacant land property. Your Broker can connect you to an Insurance Agent to get you covered.
Selling without homeowners' insurance is a bad idea and most Brokers may not work with you, there is just too much liability involved. If a hailstorm or tornado does strike or the home burns down just before closing, it could destroy the value of your home and torpedo your home sale. You could be responsible in building an equal home out of your pocket for the buyer.
Also personal injury coverage is a must! If someone falls during the viewing of the home, you could have a lawsuit on your hands that could delay the sale or you'll end up in a lawsuit with the injured person even after the home is closed and paying out of pocket.
Should I sell my home before buying a new one?
Homeowners may have different reasons for selling their home. Maybe they are ready for something new or want to downsize. Other homeowners may just want to expand their portfolio or acquire an investment property. If you want to put up a high down payment and secure good interest rates on your next mortgage, selling is encouraged. If you can afford the down payment for your new home and want to wait until the market changes, you don’t have to sell your home. Talk to a Financial Advisor about turning your current home into an investment property.