These days, there are tons of real estate guides, data, and tools available online. With all the information out there, it’s tempting to think you can sell your home all on your own. Nevertheless, 89 percent of sellers last year decided to work with an agent. Here are a few reasons why.
The average seller doesn’t pay much attention to the real estate market until they’re thinking about entering it. Then, they might spend a few hours each month looking at homes online and self-educating about home sales. Would you trust a doctor with that much experience? A mechanic? A hairstylist? Whether it’s insight on pricing, building materials, or today’s sought-after design touches, agents have down-in-the-trenches expertise you simply can’t get from a casual web search.
Whether you’re selling your first, second, or third home, a good agent negotiates sales like these every day, giving them a deep bench of experience. They can almost always negotiate for a higher price than you ever could on your own. Plus, agents are contractually obligated to protect your financial interests.
Because they’re immersed in the real estate world, agents can tap into a much wider network to connect you with buyers. They know what contingencies are likely to cause problems, and what a strong offer looks like for you — and they can work with their fellow agents to try to find as many qualified buyers as possible for your home. Agents also have relationships with other professionals you’ll need: lawyers, appraisers, home inspectors, and contractors, to name a few.
Buying a home is a complicated process, full of fifinancial and legal obligations that no layperson can be expected to manage track of. Agents are required to know their way around a contract and keep upwith with changing regulations, ensuring that you’ll be guided every step of the way by someone who can give you informed advice.
Chances are you already have a job, which means you’ll be hard-pressed to find the time and energy for all of the necessary tasks in preparing and selling your home. Your agent, meanwhile, lives and breathes real estate, and is prepared to handle all the calls, paperwork, scheduling, and legwork involved.
Inventory (meaning the number of homes available for sale) has been historically low for years, and that means when homes are properly priced, they should draw offers quickly. In 2020, homes were listed on the market for a median of three weeks, but an astonishing 50% of all sellers accepted an offer from a buyer in two weeks or less.
If you aim too high, however, you’ll likely be waiting much longer, and you’ll be less likely to get your full asking price for the house.
Here are a few ways to pinpoint your magic number your area, as well as listings with similar amenities and characteristics, to determine what your home is worth.
Market analysis
Your first and best option is to have your agent compile a Comparative Market Analysis (CMA), which uses MLS data on active, sold, and expired listings in your area, as well as listings with similar amenities and characteristics, to determine what your home is worth.
Online valuation tools
Most major real estate sites offer online valuation services using public data, such as property records and tax assessments. (Zillow’s “Zestimate” is a prime example.) Take such valuations with a grain of salt, as these tools often use old or inaccurate data in their estimates.
Professional appraisal
While it’ll cost you a few hundred dollars up front,hiring an appraiser will also give you the most accurate market value estimate for your home. Appraisers are licensed and regulated by state boards and programs.
Being realistic
If you’ve lived in your current home for several years,you’ve likely invested lots of time and money into maintaining it, and hopefully made many fond memories. Nevertheless, it’s important to be realistic and approach pricing with an eye for current conditions. In a slow market, a seller should also be willing to offer incentives to beat out the competition, including home warranties, appliances, and repairs.
In 2020, 46 percent of all sellers offered incentives to help attract buyers. The most popular incentive offered was a home warranty policy; the second most-popular incentive was the seller assisting the buyer with closing costs.
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