Understand any tax exposure from selling your home

It is wise to consult with a tax professional before deciding to sell your home, especially if you have had a change in ownership or title. Review whether you meet the homeowner’s tax exemption criteria and assess any potential tax liability from the sale. This can also help you set a sales price so that you minimize your tax exposure.

Know your current mortgage debt and closing costs

Any loan debt payoff will need to be subtracted from your sales price. There will also be other closing costs associated with selling your home, so knowing what you owe and what you wish to net will help guide your negotiations during the sale. Ask your real estate agent to provide you with a net sheet to avoid any big surprises.

Decide how you want to time your sale (and purchase)

If selling and buying a home simultaneously, one option is to make one or both sales contingent upon the other. However, that can get complicated, especially since there are at least two other parties involved.

If you make an offer on another property with the contingency that your current home must sell in order to complete the transaction – some sellers may not accept a contingent offer if the market is hot but may consider it in a normal or slowing market.

If you make your offer non-contingent (not contingent on the sale of your existing home), then you will have a better change in getting your offer accepted in a hot market.

Another option for selling is negotiating a rent-back to the seller after escrow closes for a specified amount of time. This can help ease the pressure of purchasing a replacement home and give the seller more time to move, but not all buyers are in a position to rent-back.

If you are not in a hurry to sell your home, then time is on your side and you are in a better bargaining position. However, don’t hold out for too long, or you run the risk of buyers losing interest (which usually means lower offers). Conversely, if you need to sell quickly, there are usually cash buyers ready and waiting to buy your home at a discount if you need cash in hand and can afford to sell for less.

Understand the conditions of the current real estate market

Things like housing inventory, availability of financing, interest rates, and affordability will play key roles in how you sell your home. Work with a real estate agent who can look at real estate market trends and indicators such as days on market, recent sales, and inventory in your neighborhood to help you create a price and plan to market your home to the ideal buyer. Also, know what terms of the sale are the most important to you so you know where you have room to negotiate. Ultimately, your agent works for you, so make sure you feel well represented. And remember – negotiation and willingness to be flexible when needed will make for a much more pleasant home selling experience.

Right Price

If your home is priced correctly, within the first few weeks of being on the market, you are more likely to attract a serious Buyer and to sell your home within a reasonable amount of time.

A key factor when selling a home is its list price. Every Seller should know what their property is worth and researching values of comparable properties can be a useful benchmark.

Timing

Most homeowners hope that they can sell their homes quickly and make a decent profit, especially if they have owned the property for long enough for it to have appreciated in value.

It would be ideal to be able to sell when market conditions are just right and you are able to get a good financial return, but for most Sellers it is not possible to hang on for the market to improve. Also, it's worth keeping in mind that the market you are selling in is also the market you are buying in (if you are purchasing a replacement home), which is a factor people often forget.

A Seller will be more likely to sell a home with greater ease when the property is in a sought-after location regardless of timing, but if this is not the case, a Seller should consider a sale during a preferred season.

Seasons

It may be easier to sell a property during the warmer months, when your home and garden look most attractive and those shopping for a home are more likely to venture out to attend open houses.

Based on current statistics, this is when homes listed online receive the most amount of interest from prospective buyers.

However, throughout the year there are always Buyers, so if you have to list your home during autumn or winter, there are other ways you can create interest. Having a fire going in the fireplace adds to the warmth and ambiance on show days, while additionally displaying warm and inviting images as part of your online property listing can catch a potential Buyer’s attention.

Pricing the home right from the Beginning can make the difference

The most important factor whether a home sells or doesn’t – relates to pricing.

If you price your home too high from the start, it can actually cost you lots of money in the future. The price a home enters the market at will do the majority of the marketing for the home. 

It’s important to understand that today’s buyers are very educated and have vast amounts of information readily available at their fingertips. Often, Buyer’s will know if a home is overpriced and will choose not to even preview it.

Have an initial walk-through of your home with your agent 

During the walk-through, your agent will be able to point out items that should be corrected or repaired. Items such as: de-cluttering, cleaning, painting and minor repairs, safety issues to be addressed, etc.

The first impression is crucial when selling a home

By not preparing your home for sale – this can often lead to a poor first impression and also can cost you thousands of dollars in the long run. Take the extra time and effort to prepare your home – it will be worth the time and money and you’ll be glad you did!