What happens when you sell a house is different for each person. Whether you have to sell your house in 30 days, or are selling a house that needs works, or maybe even selling a house with a mortgage, the end result is hopefully all the same. You sell the house! If you are new to this or haven’t decided should I sell my house now or wait, don’t fret. We will walk you through how to list a house, how to get listings in a seller’s market, and how to close the deal. So, if you’re looking up how to sell my home, look no further. This is the How to Sell My Home: The Ultimate Tip Guide.
What if My House Has a Mortgage?
If you are still paying on your house, don’t sweat it. Selling a house with a mortgage is a very common practice. What you have already paid on the house is your equity.
However, the bank still needs to get paid. You entered an agreement with them on an amount that they are determined to get (with interest). So, what happens when you sell a house is that you want the closing price that will cover the remainder of your mortgage.
This will result in a profit. Sounds great, right? Yeah…not always that easy.
Like we said earlier, all situations are unique with the same end goal. We all want to know how to sell my home. So, while the situation above is ideal, it’s not always the case.
At times, we owe more on our mortgage than what our house is currently worth. This can happen for a few reasons. A lot of times this is being called upside down and is due to taking out a second mortgage.
A second mortgage is taking a line of credit out from the bank, and holding your house as collateral. Your house is an asset with a value.
The value is the mortgage you agreed to pay the bank the day you signed the loan. When you get a second mortgage, you are essentially getting a loan for cash, that you will pay back with interest to the mortgage company.
In these cases, it is very easy to owe more than your house is truly worth.
This can also happen when you are in a poor housing market. Not every market is a seller’s market. Either the area can be over-saturated with vacancies, or the job market may be down causing people not to want to venture to the area.
If everyone’s property value is down around you, unfortunately your property will suffer as well. That is one of the gambles of selling a house with a mortgage.
In these cases, you can opt for a short sale. In this situation, you go to a bank to inquire about a buyout. The lender will agree to a reduced payoff.
From there, they will work alongside you to get your house sold. This will most likely result in an overall loss for you. A short sale is a last case scenario where you have fallen on hard times and need to sell your house in 30 days or less.
Pop on a Price Tag
Imagine walking into a grocery store and nothing in it is marked with a price. You only have 10 dollars to spend and need to get a few items. How will you know if you can afford everything you need? The same is true of a house.
You can’t sell something to someone if they don’t know how much they are paying. If someone is looking for a three bedroom, two bath, and have no more than $200,000, they need to know how much a house with all those requirements costs.
Therefore, prior to taking all the pictures, before Googling how to list a house, you need to pick a price. Now are you scratching your head wondering, “So, how much is my house worth?” There’s a lot of factors.
Just like the stock market, the housing market is up and down like a jackhammer in the dirt. Many outlying factors affect this ever-fluctuating price such as what other houses are selling for, if your house has any additions, the number of bathrooms, room for parking, local school ratings…the list goes on and on.
The best way to get a fair price is to hire a couple of appraisers to give you quotes. This is great for two reasons. For one, the more people you get to bounce your thoughts off of, the more likely you are going to get the answer to the burning question of, “should I sell my house now or wait?”
Secondly, appraisers have experience in the housing market and know how to run comps (comparable home prices) to other houses in the neighborhood. That way you are not overpricing or under-pricing your property.
The key with appraisers is to get a couple. Beauty is in the eye of the beholder. Value is in the mind of the determiner. Just because one appraiser thinks your house should be valued at one cost doesn’t mean that the rest of the world feels that way.
The more people weighing in on the value of your home, the better the chances are you that you will list your property at a reasonable price.
Appraisers are a great way to get an educated guess as to what price to give your house so that you can leverage it to make a profit. From there, you have a cushion to work down toward if the house doesn’t sell.
However, if you are looking to sell your house in 30 days, then you shouldn’t list more than a couple thousand over the appraiser’s quote. Otherwise, high prices lead to turning people off and open the door to more negotiations, which will all slow down the process.
How to Get Listings in a Seller’s Market
The most ideal situation in selling your house is to be in a seller’s market. This is when an area is tight on vacancy. It’s the old supply and demand adage. The less available something is, the more valuable it is to everyone else.
So, if you are wondering how to get listings in a seller’s market, you need to stand out. Take the best pictures of your property. Ensure that everything is brightly lit.
Also, give a lot of pictures, but don’t over-saturate it. Nobody needs to see every single corner of each bedroom up close. However, a couple angles of each room would be nice.
Be sure to write a catchy headline that sums up your property in as few words as possible. Nobody likes wordiness. Be concise, yet descriptive. No filler words. Potential buyers will see through the fluff.
Lastly, you might want to enlist in a realtor if you are wondering how to get listings in a seller’s market. This is their specialty.
It’s especially helpful to enlist in a realtor if you are looking to sell your house in 30 days or are selling a house that needs work. They know a lot more about what happens when you sell a house, so they can get the ball rolling in a lot more areas than you are capable of.
Investopedia tells us, and I quote:
BREAKING DOWN ‘Seller’s Market’
A seller’s market comes into formation when demand exceeds supply for a product or service. A “seller’s market” is often heard in real estate to describe a shortage of properties in the face of healthy demand.
The seller of a house in a town with a good school system and limited inventory would have firm control over setting the house price. Her house could invite multiple bids and it would not be unusual for bids to exceed the seller’s asking price.
A buyer’s market is the opposite situation, where supply exceeds demand and therefore the power resides with the buyer in terms of setting a price.
What if I’m Selling a House That Needs Work?
Chances are, your house is going to need work. That’s the pitfalls of being a homeowner. Something will always need updating. Things are always breaking. Storms, kids, pets…there will always be a culprit that causes your property to need updating.
Truth of the matter is, many of us learn to live with these things. The broken light from your son’s football is a battle wound of a life well lived.
The stain on the carpet from the day your dog used to dry herself off from the rain is a labor of love. However, these aren’t things potential buyers want.
If you are looking up how to sell my home, and you are selling a house that needs work, put the work in. Otherwise, your listing is going to be sitting on the market for a long time.
However, there are many reasons why you might not be able to update:
- After all, you are looking to sell your house. For instance, if you are selling a house with a mortgage, chances are that you aren’t looking to spend more money.
- Perhaps you are looking to sell your house in 30 days. Then making a bunch of repairs may not be feasible.
If these are the cases, then you want to sell your house as-is. That’s the best way to get the property off your hands quickly and it gives you a simple answer to should I sell my house now or wait?
To sell your house as-is, you want to work with a company that buys properties like We Get Properties. Companies like We Get Properties will offer you a fair price for your house, warts and all.
Therefore if you are looking to sell your house in 30 days or selling a house that needs work, this might be the best route for you to go down.