FAQ
Frequently Asked Questions
How do I prepare my home before I sell it?
When preparing to sell your home, the first thing to do is make it presentable. This means giving the entire house a thorough cleaning and making small repairs.
- Mop the floors, scrub the bathrooms, and get rid of all the grime in the kitchen.
- Little things like patching holes in the wall, changing burned-out lightbulbs, and repairing broken appliances can make your place stand out in a crowded market.
- And don’t forget about paint — returning the walls to a neutral color can help your house sell quicker. White, creams, and grays can make rooms seem bigger and help potential buyers see themselves living there.
- If you’re not moving out before listing your home, you’ll also need to depersonalize and declutter.
- Put away your family photos, knick-knacks, and other personal items. You may need to rent a storage unit if you don’t have a place to put them all.
How long will it take to sell my home?
On average, a house takes between 55 and 70 days to sell. That includes 25 days on the market and 30 to 45 days for closing.
The exact time it takes to sell a home depends on a few things, including:
- The time of year you’re listing: Homes tend to sell faster in the spring and early fall.
- Conditions in your local housing market: Homes sell faster in a seller’s market, when there is low inventory and high demand.
- The condition of your home: Homes in great condition may sell faster than homes that need more work.
- How the buyer is financing: If a buyer needs to take out a mortgage, this may slow down the process. Financing deals usually take an average of 42 days to close, whereas cash deals take only one to two weeks.
The longer your home is on the market, the more money you lose. You’ll still have to pay your mortgage, taxes, and utilities until the buyer officially closes.
To avoid this, there are some things you can do to help your home sell faster.
You can make impactful repairs, like adding new carpet or painting the interior. However, if it’s a seller’s market and homes are selling quickly, you might not need to make these repairs.
What Is the Lender's Formula?
Most lenders prefer you to spend no more than 28% of your gross monthly income on PITI payments (the housing expense ratio), and spend no more than 36% of your gross monthly income paying your total debt (the debt-to-income ratio). For this reason, the qualifying ratio may be referred to as the 28/36 rule.
When is the best time to sell a home?
Early spring and summer, especially June, is a great time to sell a home.
Research shows that home sales in May, June, July, and August account for 40% of total annual sales volume.
Overall, home sales are still pretty good through early fall, so it wouldn’t be a bad idea to sell a home during this period, either.
However, home sales drop once winter hits. January is the worst time to sell a home, as market activity is much lower.
Take a look at the number of homes sold per month in 2018 to get a better idea of when to sell your home.
Do I Need a Home Warranty?
When you purchase a home, even a home that isn’t new, there is a very good chance that you will be offered a home warranty as a safety net against expensive, unforeseen repairs. It may sound like a great form of financial protection—but is it really the safety net that homeowners expect? Let’s find out if home warranties are worth it.
- A home warranty reassures a homebuyer and provides the seller with a measure of protection against complaints about home defects that arise after the sale closes.
- The improper maintenance clause common to warranties can mean the new homeowner isn’t really protected if something goes wrong and the previous owner hadn’t maintained the system properly.
- The homeowner may have little or no say in the model or brand of a replacement component, or may not like the job the company-designated contractor does.
- Rather than get a home warranty, it may make more sense to put premium payments into an emergency fund to use for any repairs that do come up.
What Should I Expect at Closing?
This day consists of transferring funds from escrow, providing mortgage and title fees, and updating the deed of the house to your name. Basically, come closing day, you and the seller sign all the necessary papers to officially seal the deal.
What is the first step for buying a home?
Before you can purchase a home, you’ll need to check your credit score. Potential buyers with credit scores of 700 or higher reassure lenders that they can be trusted to repay the loan.
High scores reflect consistent on-time payments, long-term borrowing experience, and a good mix of credit types (student loans, car loans, credit cards, etc.).
Lenders look at these factors to determine if you qualify for certain kinds of mortgages, so be sure to review your credit history and correct any errors. This will give you a better chance at qualifying for loans with lower interest rates.
Shop around for different mortgage lenders to find out what kind of loans you prequalify for before beginning your home search. With this knowledge, you can easily create a budget and start looking for homes within that range.
What should the list price of my home be?
The first step in deciding your home’s list price is to get a comparative market analysis (CMA) from a real estate agent.
To perform a CMA, your agent will find similar homes in your neighborhood that have the same square footage, number of bedrooms, and number of bathrooms.
They’ll see what these homes recently sold for or are listed for, and use this as a starting point for your own list price.
A great agent will be an expert in their local neighborhoods, so they’ll be able to price your home to sell without sacrificing your hard-earned equity. Get a free home valuation from a top local realtor today!
Do I need a home inspection?
It’s the buyer’s responsibility to get a home inspection, so as the seller, you don’t need to get one. An inspection usually ranges from $300–500, so that’s money you can keep in your pocket.
That said, a pre-listing inspection does have some benefits:
You’ll have the chance to discover and take care of major problems before listing, which could increase the value of your home.
You’ll get to choose your own inspector instead of relying on the buyer’s choice.
You may be able to set a higher list price if your home is in great shape.
You can encourage the buyer to waive the inspection contingency, meaning there will be fewer chances for your deal to fall through.
How can a real estate agent help me sell a home?
A real estate agent has an in-depth knowledge of the area and how your home compares to others on the market.
They’ll have a good idea of how much you can get for your home and ways you can improve its value.
When it’s time to list, they’ll make sure your home’s priced just right, helping to maximize your offers and sell your home faster. They’ll also take care of all the paperwork, market your home, and coordinate open houses.
Real estate agents aren’t just helpful during the listing process, though. They offer a network of professionals throughout the entire selling journey.
You’ll have connections for everyone you need, whether that’s a closing agent or quality listing photographer.
What should I offer?
To figure out how much your initial offer should be, you have to work backwards from how much you’re willing to pay when all is said and done. Analyze comparable sales, market conditions, property conditions and financial considerations along the way.
Testimonial
Proudly affiliated with the MLS and NAR, Blu Edge Realtors stands as a beacon of commitment to industry excellence. With a strong belief in Equal Housing Opportunity, we advocate for inclusivity and fairness. Our membership in these esteemed organizations reflects our dedication to upholding the highest standards in real estate. When you choose Blu Edge, you align with a team that values integrity, professionalism, and the principles of equal access to housing for all.