Top 10 Real Estate FAQs for home sellers

1. How do I determine the right asking price for my home?

This Catch-22 question tops our seller FAQ list. Price too high, and you risk your home sitting on the market; too low, and you might not get the full value of your investment. Here’s how to strike the perfect balance:

Analyze comparable sales in your area: Look at recent sales of homes that are similar to yours in terms of size, age, condition, and location. These comparables, or “comps,” are a strong indicator of what buyers are willing to pay in your market.

Consider market conditions: The current state of the real estate market can significantly influence how you price your home. In a seller’s market, where demand exceeds supply, you might price your home slightly higher. In a buyer’s market, you may need to adjust your expectations and price more competitively.

Evaluate your home’s condition and features: Unique attributes or upgrades can increase your home’s value. Conversely, if your home requires significant repairs or updates, this could lower its market value. Be honest about your home’s condition and how it compares to others in the neighborhood.

Get a professional appraisal: Hiring a professional appraiser can provide an objective assessment of your home’s worth. This can be particularly helpful if you have made significant improvements to your property or if there are few comparable sales in your area.

Consult with a real estate agent: A top-rated real estate agent can offer invaluable advice on pricing your home. They have access to up-to-date local market data and can provide a comparative market analysis (CMA) to set the most competitive price. Moreover, their experience with buyer behavior and negotiation strategies can guide you in setting a price that attracts offers while maximizing your profit.

2. What repairs or improvements should I make before selling my home?

Before listing your home, making strategic repairs and improvements can greatly enhance its appeal and potentially increase its sale price. Here’s how to prioritize your pre-sale home makeover:

Focus on curb appeal: First impressions matter in a transaction that typically involves hundreds of thousands of dollars. You won’t get a second chance. Simple updates like painting the front door, refreshing landscaping, and ensuring the exterior is clean and tidy can make your home more inviting to potential buyers.

Tackle necessary repairs: Address any known issues that could deter buyers or be flagged during a home inspection. This includes fixing leaky faucets, repairing damaged flooring, and ensuring all electrical and plumbing systems are in good working order.

Update key rooms: Kitchens and bathrooms sell homes. In fact, in a recent HomeLight survey, 67% of top agents said the kitchen can make or break the sale. Consider minor updates that can make a big impact, such as painting cabinets, updating hardware, or replacing outdated fixtures. These spaces don’t need to be gut-renovated; even small upgrades can significantly enhance their appeal.

Paint with neutral colors: A fresh coat of paint in neutral tones can brighten your home and make it feel larger and more welcoming. Neutral colors also help buyers envision themselves in the space, increasing its appeal.

Invest in deep cleaning: A clean home is more attractive to buyers. Consider professional cleaning services, especially for carpets and windows, to ensure your home looks its best.

Declutter and depersonalize: Removing personal items and clutter can help buyers imagine their own lives in the home. Renting a storage unit for excess belongings can be a worthwhile investment to present a more spacious and neutral environment.

Evaluate the return on investment: Not all improvements will offer a return on investment. Consult with a real estate agent to determine which updates are most likely to increase your home’s value in your specific market.

3. How do I choose the right real estate agent for selling my home?

Selecting the right real estate agent that fits your needs — and your personality — is a pivotal decision when selling a home. The right agent can provide a smoother, faster sale and potentially increase your home’s final sale price. Here’s how to choose:

Look for experience and local market knowledge: An agent with extensive experience in your local market will understand the pricing strategies, buyer preferences, and marketing tactics that work best in your area. They should have a proven track record of successful sales in your neighborhood.

Check for credentials and reviews: Verify the agent’s licensing and any additional certifications they may hold. Online reviews and testimonials can also provide insight into their professionalism, reliability, and effectiveness.

Evaluate their marketing plan: A good agent will have a clear, comprehensive marketing plan for your home. This should include professional photos, online listings across multiple platforms, open houses, and possibly staging services. Ask how they plan to make your home stand out in a competitive market.

Assess their communication skills: Choose an agent you feel comfortable communicating with regularly. They should be responsive, listen to your concerns, and keep you informed throughout the selling process.

Discuss their negotiation skills: Your agent should be a skilled negotiator who can advocate for your interests, manage offers, and navigate the closing process efficiently.

Understand their fee structure: Be clear on how the agent is compensated. Most real estate commissions are negotiable, and understanding this upfront can help you manage your selling costs.

Interview multiple agents: Don’t be afraid to meet with several agents before making your decision. This will give you a better sense of your options and help you find the best fit for your selling goals.

Ask for references: A reputable agent will be happy to provide references from past clients. Take the time to contact these references to ask about their experiences working with the agent. HomeLight’s Agent Match platform can connect you with the highest-rated agents in your community.

4. What are the costs involved in selling my home?

Selling a home involves various expenses, many of which can affect your final proceeds from the sale. Considering these costs upfront can help you budget effectively and set realistic expectations for your net profit. Here are the primary costs you should anticipate:

Real estate agent commissions: This is typically the largest expense when selling a home. Commissions are usually a percentage of the sale price, ranging from 5% to 6%, split between the buyer’s and seller’s agents. Some agents may negotiate their rates, especially in competitive markets or for higher-priced homes. You can check average Realtor fees in your area with our commission calculator.

Home repairs and improvements: Before listing your home, you may need to invest in repairs or updates to make your property more appealing to buyers. Because these costs can vary widely, prioritizing them based on return on investment can feel like a financial high-wire balancing act.

Staging costs: Staging your home to look its best can attract more buyers and higher offers. Professional staging services may include furniture rental and decor, which can range from a few hundred to several thousand dollars, depending on your home’s size and the staging duration. According to top agents throughout the country, a professionally staged home can sell for up to 13% more.

Home inspection fees: While typically paid by the buyer, some sellers opt for a pre-sale home inspection to identify any issues that could impede a sale. This proactive approach can cost several hundred dollars but helps in setting the right price and avoiding surprises during the negotiation phase.

Closing costs: Sellers are responsible for various closing costs, which can include title insurance, attorney fees, and transfer taxes. These costs can amount to 1% to 3% of the sale price.

Mortgage payoff: While not typically viewed as a “seller cost,” if you have a remaining balance on your mortgage, this will need to be paid off at closing. The payoff amount might be higher than your mortgage statement’s balance due to interest accrued between your last payment and the closing date.

Moving expenses: Don’t forget to factor in the cost of moving to your new home, which can vary significantly based on distance, the volume of belongings, and whether you hire professional movers.

Capital gains tax: If your home has significantly appreciated in value, and you’ve lived in it for less than two of the last five years, you might be subject to capital gains tax on the profit.

5. How long will it take to sell my home?

The time it takes to sell a home can vary widely based on a number of factors, including market conditions, the price point of your home, its location, condition, and how well it’s marketed. The current nationwide average “days on market” (DOM from listing to signed contract) ranges from 43 to 61 days. Here’s what you should consider to understand the potential timeline for your home:

Market conditions: The state of the local real estate market plays a significant role in how quickly homes sell. In a seller’s market, where demand exceeds supply, homes may sell in a matter of days. In contrast, in a buyer’s market, where the supply of homes exceeds demand, it may take months.

Pricing: Setting the right price is a key factor when trying to sell your house fast. Homes priced competitively based on market analysis tend to sell faster than those priced too high. Overpriced homes may linger on the market, requiring price reductions to attract buyers.

Home condition and appeal: Homes that are well-maintained, updated, and staged appealingly typically sell faster. High-quality photos and virtual tours also help attract online buyers.

Effective marketing: The broader the exposure your home receives, the faster it may sell. This includes listing on multiple online platforms, social media marketing, and hosting open houses. A seasoned real estate agent can move your sale along at a healthy pace with proven marketing strategies that may include video tours and drone footage.

Seasonality: Real estate markets tend to be more active in spring and summer, making these seasons favorable for selling. However, this can vary by location. Check HomeLight’s Best Time to Sell Calculator to see the best months to sell for the highest proceeds or fastest sale.

Transaction process: Once an offer is accepted, the closing process, which includes inspections, appraisals, and securing financing, can take an additional 45 days or longer, depending on the complexity of the transaction. If you have an all-cash offer, the sale can close much faster.

6. Should I buy a new home before selling my old one?

The idea of buying a home before you sell is appealing to most homeowners. But deciding if you should (or can) buy first depends on your financial situation, the housing market, and your personal circumstances. Let’s take a look at some of the key considerations to help you make an informed choice — and a solution that might surprise you.

The benefits of buying first: Buying a new home before selling your current one offers several advantages. Most notably, it allows you to move only once, saving you the hassle and cost of temporary housing or storage. It also gives you the time to find the perfect home without feeling rushed by the timeline of selling your old home. You can also stage your home for a better or faster sale.