9 Steps Needed for Selling a First Home
Buying your first home can be exciting as you start a new chapter of your life, but selling your first home may be a different story. According to the National Association of Realtors, the average first time home seller has lived in their house for about 10 years by the time they decide to move on. At this point, owners may be ready to upgrade, and in the process of finding a new home. Or, they may need to move for work, or due to family issues. Any of these can add a layer of stress to the selling process.
To make your home sale go as smoothly as possible, we’ve put together a guide for selling your first home, getting the best price, and getting through the process unscathed.
The Important Steps to Selling a House
1. Put in Some Research
Online resources such as Realtor.com paint a pretty good picture of the housing market in your area. When you begin thinking about selling, look to see what prices similar homes are going for as far as square footage, number of bedrooms, and lot size. You will also want to look at how long those homes have been on the market so you know how quickly buyers are making decisions.
You can also do some Google searches regarding the best time of year to sell. In general, the late spring is generally considered the best time to sell a house, largely due to better weather for viewing houses and also the fact that kids are almost out of school for the summer. Time of year can also affect the price you can expect to get for your home. According to the Federal Reserve Bank of St. Louis, home prices in 2024 peaked in June with the median home price a whopping $48,300 more than it was in January. For those with a little flexibility in their timing, this makes a massive difference.
2. Get a Pre-Listing Inspection
Pre-listing inspections are not required for selling a house. However, they can put you one step ahead in the sale process since they can identify repairs that may be needed. This is particularly helpful when selling an older home that might have some unforeseen issues.
A pre-listing inspection will assess the roof, check for the presence of hazardous materials, like lead paint and asbestos, and check water quality. They can also be helpful if you have done any DIY remodeling by certifying that the changes are safe.
An inspection that results in a clean bill of health for your house has the potential to entice buyers more than a house that hasn’t been inspected. On the other hand, if you find out about potential problems, you have the opportunity to fix them before listing or to let buyers know about the issue and adjust the price accordingly. Most home buyers will appreciate the transparency. Either option is most likely going to be better than the potential buyer discovering the issue during their own home inspection, which is likely to cause a hiccup in the process.
3. Be Strategic About Improvements
While some home improvements can bring in a good return on investment, this is not always the case. It’s important to be strategic about what to replace or upgrade before selling. Here are some improvements worth the effort and money and some to avoid:
- Fix things that are obviously broken or dangerous, including fixtures, floors, doors, and appliances.
- Stick to neutral colors. If you have a room painted neon pink or black, a lot of people will find it offputting. Neutral colors help buyers to better picture themselves in your home.
- Focus on the kitchen and bathrooms if you want to do bigger updates. A new sink or kitchen appliances will provide a greater return on investment.
- Replace worn or stained carpeting. This can make a huge difference in how new or clean your house looks (or smells).
- Avoid adding a swimming pool, built-in electronics, wallpaper, or carpeting over hardwood floors that are in good condition. Many people prefer homes without these features, and adding them can be a waste of money or deter some buyers altogether.
4. Improve Curb Appeal
Technically, this falls into the home improvement category, but this step can be so simple and make such a big difference that it deserves its own category. The front of your house is often the first thing people see (whether in person or on a listing) and can either pique their interest or make them scroll down to the next house without even looking at the interior pictures.
Even if you don’t plan on making any major changes before selling your first home, tweaking a few things outside can make the process go faster and attract more interest. Consider making changes like:
5. Clean and Declutter
Ensuring that your home is clean and free of clutter will help to make a better impression on potential buyers. There is no rule against selling an unkempt home, but the cleaner your house is, the more comfortable people will feel buying it. No one wants to have to clean up other people’s messes before bringing in their belongings.
Of course you can do the cleaning yourself, but hiring professional cleaners is probably worth the money when it comes to selling your first house. As for clutter, it’s best to make the house look as impersonal as possible and keep most belongings put away in closets or other storage. If you have a great deal of extra stuff, consider getting a temporary storage unit to make the house look cleaner and more spacious.
- Planting some flowers
- Trimming hedges
- Painting the front door
- Cleaning light fixtures
- Replacing or spray painting a rusty mailbox
- Power washing the walkway or front porch.
6. Hire a Real Estate Agent
A lot of people are tempted to try to sell their home on their own as a “for sale by owner” (FSBO) listing to save on the commission fee, but 90% of homeowners chose to use a real estate agent to sell their home in 2024. Why is that?
There are multiple reasons why most people end up selling their house with a real estate agent. One important one is that agents have the marketing experience to make homes stand out in the markets where they’re listed. This involves:
- Staging the home to appeal to target buyers.
- Taking professional photos to make the home look great online.
- Creating online listings on multiple real estate sites where buyers will find it during their search.
- Sharing the listing on their social media pages to spread awareness.
Especially as a first-time seller, hiring a real estate agent can make everything go smoothly. This can relieve a lot of stress and reduce the chance of making any expensive mistakes.
7. Price Competitively
As mentioned earlier, you can get a good idea of what your house can sell for by comparing it to similar homes in your area. Some websites even have calculators for giving an estimate, but these may not take into account any improvements you’ve made since the house was last sold.
A realtor can be a great source of advice for your final listing price. They will have a better idea of how high you can go and still get offers. Ultimately, you’ll want to offer a competitive price, so that the house doesn’t sit on the market for too long. If this happens, it can scare off potential buyers who might get the idea that something is wrong with the house.
8. Be Prepared for Closing Costs
Long before selling your house, you should have an idea of how much it will cost you, keeping in mind that you’ll be going through the process of buying (or possibly renting) another home at the same time. To ensure a smooth process, it’s best to set aside enough to cover the following fees:
- Realtor commission
- Escrow fees
- Prorated property taxes
- Title insurance
- HOA fees (if applicable)
- Transfer tax (depending on the state)
- Title search fees
- Penalty for prepaying mortgage (if applicable)
The amounts of these taxes and fees will vary depending on the area you are in and how much your house sells for and some may not apply to your situation. For example, transfer taxes are not imposed in Missouri, but they are in Illinois.
7. Consider the Offers
Once your home is all cleaned up and listed, you can expect to start getting offers. While you might be tempted to simply take the highest bid, there are other factors to consider. For example, if the potential buyer is not pre-approved for a mortgage, they might run into problems before closing on the house. This can delay or even halt the sale of your house.
Another factor is whether the offer comes with contingencies. In some cases the sale of your home might be contingent on whether you fix something in the house or even whether or not the buyer is able to sell their current home.
Deciding on which offer to go with will depend on your priorities, like whether you need a quick sale or if you are more concerned about getting a higher price for your first home sale. A good real estate agent can help you weigh your options and determine which option will work best.
8. Keep Your Documents Organized
When you find a reliable buyer with their finances in order, it will be time to close. Keeping your documentation in order throughout the process can help the closing go more smoothly. Most real estate agents will go the extra mile to make sure all of the documents are in order and closing steps are properly coordinated, which can be a confusing process for someone who has not been through it before.
The realtors at Berkshire Hathaway Home Services are well acquainted with every step to selling a house. We can help get our clients through the process smoothly and take away some of the stress to let you focus on moving into your next home. Contact us today to find an agent.
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