There is a unique combination of excitement, confusion, intimidation and stress involved with buying your first home. Did you know that first-time home sellers also deal with similar amounts of excitement, stress and intimidation?
Perhaps you are upgrading to a larger space and want to use your equity as a down payment; maybe you are relocating and need a quick sale to avoid the financial stress of paying for two living spaces. Whatever the case, you want to get the best value for your home, and you want to sell it to the right buyer with as few complications as possible.
How do you position yourself for the best possible sale, especially if you have never been through the process before? To help you chart a successful course, here are six tips that every first-time home seller should consider.
1. Do your homework.
Any potential buyer will likely pay to have your home inspected as part of the purchase. However, we highly recommend spending a few hundred dollars to get your own professional inspection before listing your home for sale. The reason? The last thing you want is to have the sale go off the rails due to some unforeseen problem after the contract is signed. An inspection will reveal any issues that could be deal-breakers so you can fix them before the home goes on the market. In addition to this inspection, go through your home thoroughly and evaluate the condition of paint and carpet, the age of appliances and HVAC, the age of the roof and so on. That way, you can make informed decisions about what to fix and how best to make your home attractive to prospective buyers.
2. Make updates, repairs and upgrades strategically.
Once you have a clear snapshot of your home and have made a list of needed repairs and updates, your next step is to decide which are the most important issues to address. Few homes are in perfect condition, and buyers generally know this — so you do not have to fix every little issue to make the home ready for sale. Your job is to determine which issues are most likely either to detract from your sales price or discourage buyers from making an offer — or conversely, which issues, when fixed, would increase your home’s value and encourage a quicker sale. As a rule of thumb, focus your priorities on updates and upgrades that accomplish one or both of the following:
- Add more value to the home than the cost of the repairs (e.g., kitchen/bath upgrades, adding usable square footage by finishing out a basement, etc.)
- Cost relatively little money compared to the benefit of impressing buyers (e.g., new paint, lawn care/landscaping)
3. Try to get as close to “move-in ready” as possible.
“Fixer-upper” homes appeal to only a niche demographic, and the more the buyer has to do to make the home livable, the less money you can make from the sale. Again, not everything has to be fixed, but try to have at least your home cleaned and repaired to the point that all a buyer has to do to be comfortable is to move in.
4. First impressions are everything.
Most prospective buyers will decide within seconds of seeing your home whether they are interested in considering it further. Thus, the more you can do to improve your home’s curb appeal, the better. Make sure the exterior of your home is in good shape; touch up areas of cracking paint, or better yet, consider repainting the outside. Keep the lawn and shrubbery trimmed, keep the flower beds weeded and replace wilting plants with fresh ones.
Once you’ve done as much as possible to spruce up the outside of your home, focus on the inside, so visitors’ first impression of the indoors matches that of the outside. Beyond the upgrades mentioned above, focus on creating a clean, clutter-free and well-lit atmosphere indoors. If necessary, consider hiring an expert to advise you on the best possible staging of the home to give prospective buyers a pleasant shopping experience.
5. Price your home realistically.
These days, basic market research on local neighborhoods is fairly easy to find online. Take a look at comparable homes for sale in your neighborhood and what they are selling for. When pricing your home, take into account these local market values and upgrades you’ve put into the home, as well as any issues you’re leaving for the buyer to fix. Try to build a modest pad into the asking price so you can make concessions if a buyer asks you for one to make a certain repair. Your real estate agent can also give you more detailed information on what type of listing price is both fair and likely to resonate with buyers.
6. Hire a good seller’s agent.
Speaking of agents — even after you’ve done all the above to prepare, the seller’s agent you choose can make the difference between a timely, profitable sale and a home that sits on the market too long or sells for too little. Do a bit of researching and vetting and choose an agent with extensive experience and a good track record in the local market.
Here in Atlanta, the agents of Atlanta Fine Homes Sotheby’s International Realty are highly skilled and knowledgeable of the competitive Atlanta housing market, and we have an outstanding track record of helping first-time home sellers get the most out of their property when they sell. To learn more, call us at 404.948.4812.