1. Find Your Agent
Should you use an instant buyer or should you use an agent? Instant buyer (otherwise known as iBuyer) are still not a good deal for the seller. They take heftier commissions than the local market (they just call them something else, like experience charge or credit) and they are incentivized to pay you a lot less than market rates. So, a traditional real estate agent still makes more sense as you’ll get a much more profitable deal in the end.
2. Prep For The Sale
The seller should pay for their own inspection and address any major issues. This is an important step, as 95% of contracts that fall apart do so because of conflict during the inspection. By addressing major issues ahead of time, like the roof, sewer, or HVAC, you can limit the undue stress and lost time that frequently accompanies a sale.
3. Professional Photos or Videos
This can be relatively inexpensive and are a very important aspect of getting more interest in the purchase of a sale. Do not skimp on this.
4. Make Sure Your Comps Are Correct
There are a few criteria we consider when pulling comps (comparable properties).
Within a mile is preferred since the one thing you can’t throw money at post-close is location.
Larger homes have a cheaper price per square foot than smaller properties, so it’s important to pull from houses with a similar footprint.
We care about bathrooms a lot more than we care about bedrooms. It’s much more difficult and expensive to add a bathroom, which requires plumbing and expertise, to a house than it is to add a room, which just needs drywall. Also, the difference between one bathroom or two is huge, so that counts for more.
Our clients who live in Alberta, in general, want garages because of our harsh winters. A garage is not always cheap or easy to add. So this is an important feature to keep in mind.
This is becoming increasingly important with the popularity of Airbnb, house hacking, and co-living arrangements. Depending on who your buyer is, certain zoning categories are worth more than others.
Simply put, people care about their kids’ education.
Houses in the same development were likely built around the same time, so make sure the other houses being pulled were built within 20 years of the house you are selling.
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5. Set The Right Price
“Bidding wars” can be a hot topic because inventory can be low that sellers often get multiple offers on their listing. We understand the inclination from buyers to reject this, but here’s the thing to remember: the price is not the price. It’s a somewhat arbitrary number the listing agent recommends (or the seller demands).
Ultimately the market decides.
If the property is overpriced, it sits, acquires a stigma, and the seller is likely unhappy because it hasn’t sold. If it is underpriced, it moves quickly, and the seller is likely to be very happy with their agent. Market demand still dictates the price, but based on expectations, the client walks away with a very positive or negative experience.
6. Qualify Your Potential Buyer
There are actually two steps to this.
- The standard lender letter and phone call. The lender letter should disclose what they qualify for and under what terms. The phone call should give the seller peace of mind that the lender is local and available to talk if issues come up
- The second part of qualifying your buyer is proof of funds. Get a screenshot of a bank balance that shows they have the necessary money for the down payment, and if appraisal gap coverage is part of the contract, that they have the funds for that as well.
Buying or selling a house is a big deal. It’s likely one of—if not the—largest financial decisions you’ll make. It’s fair for it to be stressful, but you can limit a lot of this stress by knowing what to expect.
Many people struggle with the time, financial obstacles, and all kinds of realty advice when it comes to buying or selling a home. At clubhouse group, we work tirelessly to make the process seamless, and the experience enjoyable. So you can focus on what’s important to you. Creating new memories and traditions with those you love, in the home that you love. It’s what every person deserves… and frankly, it’s what you deserve.
Let clubhouse group get you home.
If you are thinking about buying or selling your next home and need guidance, give us a Call Today! It’s important for you to get the most out of your investment. We want to help you get out on top.