In this market, many people in have been considering throwing their hats in the ring and selling their home. Usually, their minds go directly to listing with a local real estate agent. Maybe it’s the person who sold their neighbor’s house, or the face they see on a sign they drive past on the way to work. If you are thinking of signing on with a Realtor, it is important to keep all the facts in mind, even the ones they are not likely to tell them yourself.
It can be a real inconvenience.
Most people have a routine when they finally get home from work. Whether it’s the family route – managing homework, eating dinner together, bedtime routines, or decompressing after a long day – comfy clothes, a glass of wine, and the next episode of your Netflix binge, your routine can be completely upended when selling your home.
Early evenings and weekends are prime time for home showings. There is an extreme likelihood that you will need to clear your home frequently to free up the space for potential buyers and their agents to walk through. That means every out – even family pets. You wouldn’t want the cat to get out when a buyer opens the back door.
Buyers expect it took look a certain way.
And speaking of showings, you’re going to have to deal with your home becoming a real life episode of “House Hunters.” Strangers are going to be going through your personal space and looking at your home with a critical eye. But it is an important part of the traditional home sale process when your home is listed on the MLS exchange – more exposure means more eyes on, and in, your house.
And since showings can be scheduled at somewhat short notice, your home is going to have to be kept show ready at all times. Keeping a home decluttered and tidy is a key part of making your home desirable to potential buyers. Until you get your home under deposit, showings, walk throughs, and open house will be a part of your life.
Accept timeline uncertainty.
When you list your house, there will definitely be no definite timeline for sale. While your agent can tell you average days on the market for homes in your area, they are not fortune tellers, unfortunately. They will not be able to tell you exactly when your home will go under contract.
This uncertainty can make planning your next steps more challenging. Depending on how long the process takes, you may end up putting off or changing dates for other life events. You may even end up responsible for two properties, if you close or move into your new home before completing the sale of your current. It is important to know that no one can know exactly how long the process will take.
Expect unexpected delays.
Even once your home is under contract, there can be many delays in the process that will push back closing. Because so many people are involved in a traditional real estate closing process, there are many moving parts and hoops to jump through. From inspection delays and repair reports, banks or mortgage brokers taking longer than planned to complete paperwork, appraisal delays, closing attorneys or title companies who need more time – there are a ton of potential unforeseeable hurdles of getting to the closing table. Especially in the current, somewhat frenzied housing market. There are only so many inspectors, appraisers, and other professionals needed in any given area, more sales can mean more demands on their time, and more delays for you and your sale. In fact, it’s not unheard of for closings to take 60 days or longer for a closing to happen with conventional financing in a traditional real estate sale.
Offers can come with contingencies.
Contingencies are very common in real estate contracts. Contingencies are conditions in a contract that must be met before the terms of the contract are fulfilled. These contingencies can be ways to back out of a sales agreement if the conditions aren’t met – often with the deposit or earnest money going back to the buyer. Some common contingencies are the appraisal contingency (that a home must appraise at or above the sales price in order to obtain mortgage funding), the home inspection contingency (that a buyer has the right to have the home professionally inspected during the window of time in the contract, and ask for repairs or compensation for issues that are found), or a sale-of-prior-home contingency (also known as a Hubbard clause, this gives the buyer time to sell their current home before completing the sale of yours. If they can’t sell theirs, they can back out of the contract.) Getting all contingencies met can add time to your timeline – especially the Hubbard clause, or cost you money on the sale. Worst case scenario – these contingencies can cause a sale to fall through, starting you back at square one.
Repairs will cost you.
Unless you are in a brand-spankin’ new home (which would make wanting to sell rather unlikely anyway), your house probably is in need of some maintenance, upgrades, or repairs, even if you don’t know it. The average homeowner is not a home inspector, so it can be unsettling to get an inspection report from your prospective buyer’s home inspector and see a list of “issues” that have been uncovered.
Once the inspection report is complete, the buyer’s agent will contact your agent with a list of concerns that your buyer wants addressed. You will have to work with your agent to decide which repairs you will complete, which repairs you will not do, and any monetary concessions that you are willing to make. Sometimes, there will be repairs that you are required to complete by the lender – especially FHA loans. If you can’t complete the repairs or come to an agreement with the buyer, it can lead to the end of your contract.
Everyone has their hand out.
While you may think that selling your house means you’re the one getting the money, there are lots of costs that are going to come along with that. Before you even sell, there may be repairs, cosmetic upgrades like repainting or new fixtures to increase your aesthetic appeal, or landscaping for curb appeal – first impressions are important! If you have a lot of stuff, you may have to pay for storage space to declutter your home and make some room.
If you are really looking to appeal to buyers, there may even be staging required, for an additional cost, of course. In order to stand out among a sea of homes for sale, your agent may suggest a professional photographer to take the photos of your home to make sure it appeals to buyers looking online, getting more people in the door. You may also choose to hire a drone pilot to take those cool aerial drone shots of your home, property, and area.
In order to close on a deal, your agent and your buyer’s agent may have to negotiate. One common concession that can cost sellers is money back towards the buyer’s closing costs. This can reduce the amount that you net on the sale of your house.
These costs are all on top of the commission you have agreed to pay your real estate brokerage, as well as the commission that goes to the buyer’s agent. These costs range on average from 4-7% of the overall sale price. All these costs can add up to a big chunk of change out of the profit of your sale.
Basically, the selling of your home can be an expensive, intrusive, and time-consuming process that has offers you no guarantees – which clearly a real estate agent is not going to want to tell you. If none of this appeals to you, and you would like a different option, Bristol Home Buyers can be there for you. We offer guaranteed money, certain time-lines, no repairs, and zero costs or commissions to us. We make the process cheap, fast, and easy for you. To find out more, call us today or fill out the form below. We look forward to hearing from you soon!