Hooray! You’re finally at that stage where you’re planning to sell off your property, either to capitalise on its appreciating price, or simply want to upgrade to a better home. Whatever the situation, here are 5 basic – yet vital – tips you should take note when selling your property.
Oh, and if you’re on the other side of the transaction spectrum, consider these 5 questions you should ask yourself before buying a property.
#1 Choose an agent
Everybody dreams of selling their home without hiring an agent, thus saving a bunch on commission and other fees. Attractive though that thought may be, when you compare the savings to the work involved in advertising the property and being available at all hours to show it – especially when you have a regular day job! – the notion doesn’t seem so great. Get referrals from friends for a good real estate agent, and evaluate him or her through an interview to make sure you are both on the same wavelength to avoid any misunderstandings later on. Don’t be fooled by an agent who promises one thing but delivers another. In Malaysia, you should also make sure the agent is a licenced professional registered under the Board of Valuers, Appraisers and Estate Agents (BOVAEA).
#2 Sign the agreement
Once you find an agent you like, you have to formally sign a listing agreement. This is a contract, laying out the specifics of your arrangement, including how long you will let the agent represent your home and what the commission (and other payments, if any) will be. When you discuss the listing agreement, discuss other issues as well. For instance, if there are certain times when you want the house off-limits for walk-throughs, let the agent know. You can also consider negotiating the commission; if the house can demand a higher price, you can suggest a lower commission percentage, or if it’s a buyer’s market, consider giving a higher commission as incentive.
#3 Settle on an asking price
If you’ve done your research, you should already have a good idea of how much you can ask for your property. Remember: it doesn’t matter how much you originally paid for the house, how much you’ve spent on renovations, or even how much you need to move to your next home. When it comes to selling your property, the only thing that matters is how other similar homes in your neighbourhood are priced. Your agent should provide you with comparable sales and discuss why your house should be priced higher or lower.
#4 Prepare for an open house
When you’re going out on a date for the first time, you want to make sure you look nice, presentable and attractive, right? The same goes for your house when it comes to property viewings. Tidy up your property to make it look good for your listings (find out how to take great real estate photos), as well as make it appeal to potential buyers who come to view it. Consider a new paint job, moving extra furniture into storage, removing clutter like photos and ornaments, mowing the lawn, and even spraying some Febreze to freshen up the place before a viewing. You’ll be surprised how these little details can add thousands to your eventual sales price.
Yay! You’ve got an offer for your house! When you receive an offer via your agent, ask for guidance on how to respond. It will depend on how you priced the house, the condition of the housing market in your area, and your urgency to sell or wait for a better price. Make sure your lawyer or agent reviews the contingency clauses included with the bid, and ensure the buyer’s contingencies are restricted within specific amounts of time. You don’t want to waste time waiting for a buyer to settle their affairs beyond the acceptable time period while there’s another potential buyer waiting in line.
Of course, there are plenty of other factors you should take in when selling your house, but these five starter tips are good to get your started. Now, go forth and sell that property!
Source: CNN Money