Selling a home is an emotional process, not just for you but also for the buyers. When people make a decision to buy a particular home, a lot of factors come into play, including location, amenities and price. But it’s never these rational details that tip a buyer’s hand and make them decide to purchase a particular house; instead, it’s the emotional attachment or something very specific that lures buyers to a home. This is the hot button. Identify your home’s hot button and emphasize it in your marketing materials in order to draw the buyers who will really want your home.  

Identify Your Home’s Hot Button

A hot button can be anything about a home, or even a series of things about a home. Does your house have a fantastic master bathroom? A fabulous kitchen? Great flow? Think about what originally attracted you to your home; that’s probably the home’s hot button. Things like fireplaces, views and gardens tend to resonate with buyers, as well as features of the home that really go above and beyond. Figure out what the best features of your home are, and those are your home’s hot buttons.

Emphasize the Hot Button in Sales Materials

Once you figure out what makes your home unique and desirable, emphasize that in sales materials. If your home has a beautiful fireplace or fantastic views, don’t let that get buried in the rest of the sales copy; emphasize those features. Pictures are worth a thousand words, so include photos of your home’s hot buttons on your sales flyers, your website or your home sale ad. Keep in mind that if your home is roughly equivalent to other homes, it’s the hot button that is going to draw buyers and make your home unique; that’s the angle you’ve got to really market to get qualified buyers who are actually interested in your home.

One hard and fast rule that many home buyers don’t always acknowledge is to sell your existing home before you buy your new home. It doesn’t matter if you have a great house in a highly desirable location at a fantastic price; you can never assume that someone will buy your home within a designated period of time. Wait until the ink is dry on your home sale before buying a new home, or you could find yourself in financial trouble with two house payments to make.  

An Offer Isn’t Sold

One cardinal mistake that many homeowners make is to assume that when a purchase and sale agreement is signed, it’s ok to buy a new home. This is a potentially serious mistake. Purchase and sale agreements are typically pending meeting several criteria, including the buyers obtaining financing and the home inspection.

Sometimes, the buyers can’t get financing and a deal falls through – even if a buyer is pre-qualified for a loan. In other cases, buyers may uncover something in the home inspection that requires re-negotiating the deal, or the buyers may simply withdraw from the agreement. A purchase and sale agreement does not mean the house is sold, so you shouldn’t assume it’s safe to buy a new home until you’ve closed escrow on your existing property.

When to Buy a New Home

In many cases, homeowners decide to buy a new home and then put their home up for sale. Realistically, you should approach home sales from the other side. If you’re thinking about moving up to a bigger home or downsizing to a smaller place, put your home up for sale first. It’s ok to look at other homes to get a sense for what’s out there, but don’t make any offers until your home is sold.

If you do make an offer, see if the owner will allow you to make it a contingency based on selling your home. Otherwise, you could be stuck with two house payments for months or even years, which can drain  you financially and even cause you to file for bankruptcy or foreclosure.

Selling a home isn’t just a simple cut-and-dry process. Home sales come with costs, and if you don’t consider those costs, you could find yourself unprepared for the sale process. Make sure you know what it’s going to cost to sell your home before you start the process, and make sure your expenses will leave you with enough to put a downpayment on your new home.  

Some Homes Need TLC

Realistically, the time you spend in your home is going to leave a mark on your home. Particularly if you’ve been in a home for years, you’ve probably made your own unique impact on your home. You’ve painted the rooms to meet your design tastes, and you may have had dogs or cats that have made a lasting mark on your floors. Alternately, even if you haven’t done anything special with your home, many homes need some degree of maintenance that homeowners put off and must ultimately happen before a sale.

If you’ve painted your rooms interesting colors, or if your floors are in need of a little TLC, prepare to take care of these things before you put your home up for sale. Re-paint your walls a more neutral color, and you may need to get your carpets professionally cleaned or replaced. Even if you haven’t had pets, you might need to do some routine maintenance that has been piling up which can add up to serious costs. Make sure you find out how much TLC your home needs before you list it for sale, and perform the repairs and maintenance before you start the sale process.

Keep in mind that you’re going to want a new home after you sell your current home. Whether you’re downsizing into an apartment or moving up to a new home, you’ll have costs associated with your new home. Make sure you leave yourself enough money after repairs to handle the costs on your new home, including things like downpayment and also things like housewares, curtains and all of the minutiae of establishing a new home.

When it’s time to sell your home, it’s your job to prepare the home for sale. You want to make the home appealing to potential buyers who walk through it, which may involve just a little work or may become a serious project. If you’re ready to sell, it’s time to get your home ready, too. Consider having friends walk through your house and point out problem areas, and start with the basics.  

Clean the House Thoroughly

First and foremost: clean your house thoroughly. Shampoo the carpets. Scrub the baseboards. Knock out any cobwebs. Dust and clean every surface. De-clutter, mop, clean the windows and do anything you need to do to get your home sparkly and clean.

If you’re not great at cleaning projects, consider hiring professional cleaners to get your home ready for the initial round of buyers. You’ll still have to keep your home clutter-free and clean after this initial cleaning, but the initial cleaning involves things that many people don’t do very often, and you might miss important details if you’re not cleaning-oriented.

Consider Small Projects to Boost Your Home’s Appeal

After you’ve cleaned up your home, consider the small projects you can undertake to boost your home’s appeal. You’ll probably want to steer clear of the major renovations, such as redoing your kitchen, as you won’t recover the cost of major renovations when you sell. However, there are many small projects you can do to boost your home’s appeal.

Consider a fresh coat of paint in your house; particularly if you’ve got strong, loud colors on your walls that might dissuade potential buyers. Instead of doing an entire kitchen renovation, you might consider replacing the hardware on your cabinets, or re-facing your appliances. Make sure the yard is well-groomed and well-maintained; consider doing a little landscaping to remove weeds and plant pretty flowers to boost your curb appeal. These small projects take a little time and very little money, but can make a big difference when potential buyers visit your home.

A Listing Agreement is a Contract for Service

When you sign a listing agreement, you’re agreeing to pay a real estate agent a commission for finding someone to buy your home. It isn’t a contract to sell, though; it’s a contract for an agent to find you some buyers.

If an agent produces buyers who meet the terms of your listing agreement, but you decide not to sell or not to sell to those particular buyers, you may still be legally obligated to pay your agent’s commission. Keep this in mind if you’re thinking of selling, and don’t sign a listing agreement unless you want to commit to selling your home.

Loopholes in Listing Agreements

Listing agreements have two potential loopholes which you need to know and potentially use. First and foremost, never sign a listing agreement that commits you to working exclusively with an agent for more than three months. If you feel that the agent is doing a good job and just hasn’t found the right buyers, you can extend your agreement. If the agent is doing a poor job, you can try a new agent when your agreement is up.

Second, know the terms of your listing agreement and stick to them. You don’t have to accept just any buyers that a real estate agent can produce. If an agent finds you buyers who don’t meet the terms of the listing agreement, you’re not obligated to sell to them and you’re not obligated to pay a listing agent’s commission if you do sell.

Selling your home through a real estate agent involves paying a commission, which could be anywhere from thousands of dollars to tens of thousands of dollars. Some sellers consider the option of selling their own home to avoid paying the 5 to 7 percent commission. Selling your own home might not save you as much as you hope, and could cost you a lot of time and money up front.  

You May Still Have to Pay a Buyer’s Agent

First and foremost, when selling a home, a real estate commission often gets split two ways between your agent and a buyer’s agent. You still pay the full 5 to 7 percent commission, but if buyers are working with an agent, their agent gets a portion of this commission. This means that even if you decide not to work with a seller’s agent, you may still have to pay the commission for a buyer’s agent. Your potential savings goes rom 5 to 7 percent commission to 2 to 3 percent; roughly half of what you’d pay if you use your own agent. Some buyer’s agents only work with seller’s agents, so if you don’t have your own agent, you could lose out on the sale entirely.

Logistics of Selling a Home

The logistics of selling a home involve a lot of work, and one of the hardest parts is getting your home’s listing in front of the right people. When you use an agent, your agent lists the home in MLS and takes care of all of the advertising for you. Agents also field phone calls about your home, set up showings and conduct open houses. If you decide not to work with an agent, you’ll have to be prepared to do all of these things on your own. This can take a lot of time, and you’ll probably be investing money up front to place ads and try to advertise your home.

In most cases, when you buy a home, it isn’t forever. The average home mortgage is 30 years; a few keep their homes that long, but most homeowners sell and trade up or trade down at various points throughout their lives. Selling a home is a natural part of the home ownership cycle, but it is possible to make a poor decision to sell when you should keep your home. When the time comes to sell, carefully consider your reasons for selling before you go through with the sale.

Selling to Move Up

Selling a property to move up to a bigger house is a normal part of the real estate life cycle. Most people buy a small “starter” property to begin their home ownership, and move up to a larger home as finances permit or as part of starting a family. Make sure that when you make a change like this, you’re ready for it. Run the numbers to make sure you can afford to upgrade your home. Consider whether now is a good time to upgrade, or whether you’d be better served by hanging on to your current home for a few more years to build a bit more equity before you move. If you buy too much home too early, you could get yourself into a bad financial situation.

Selling Due to Life Changes

Life changes happen. Maybe you’re relocating to another city, or maybe you’re getting married or getting a divorce. Keep in mind that just because you’re moving doesn’t mean you have to sell your home. Real estate is a great investment, and keeping your home and renting it out can be a valuable way to continue to build equity and to generate some cash flow on your property. You don’t have to sell just because you’re moving, so consider your options carefully to make sure you’re doing the right thing financially.

When you decide to sell your home, one of the most challenging decisions is setting the right price. If you price your home too high, you won’t generate much interest and your home could sit on the market for months. Too low, and you could loose money. Consider your pricing strategy and make sure you have a realistic idea of what the home is worth.  

Know What Your Home is Worth

Don’t assume your home is worth what you paid for it, or what you owe on the existing mortgage, or even what the tax assessor says your home is worth. In order to properly price your home, you’ve got to know the current market value of your home. A good real estate agent can put together a Comparative Market Analysis, or CMA, to tell you what your home is worth relative to other home sales. Without an agent, you can get a decent idea of what your home is worth if you look at comparable sales in your neighborhood within the last six months.

How Much Time Do You Want to Spend Selling Your Home?

Realistically, if you price your home at its current market value, it will spend weeks or months on the market. Homes that aren’t a particularly good deal, financially, must make an emotional impression on buyers, so you might be waiting a while for the right buyers to come along.

If you’re determined to sell your home quickly, the best strategy is to price it slightly below market value. It could cost you a few thousand dollars to price your home low, but it will generate more interest in your home. Assuming that everything is in good shape, you shouldn’t have much trouble attracting buyers with a below-market price. The key is to avoid pricing your home too low, or buyers will wonder what’s wrong with your home and may be reluctant to make the purchase. $2,000 to $5,000 below market value is a fairly safe range, and should generate plenty of interest in your property.

Selling a home to move up to a larger home – or a smaller home – is typical in the real estate industry. People move up to larger homes when they start a family, or when their income increases, and people downsize to smaller homes when the kids go off to college or when they separate or have other life changes. Before you decide to sell a home and move up or down, though, crunch the numbers and make sure it’s the right decision.  

Only You can Decide What You can Afford

Only you can decide how much home you can afford. A lender can approve you for a specific amount based on standard calculations, but that doesn’t take into account your financial goals and budget. Remember to run the numbers yourself before you buy. If you buy too much home and go into foreclosure or bankruptcy, your credit will suffer.

Saving for Retirement or Other Expenses

When you decide to sell your home, consider your saving for retirement or your other expenses. If buying a larger home will prevent you from saving for retirement, to send your kids to college or other large expenses, reconsider selling your home and moving up. Spending more on a home can cost you a lot of money down the road if you’re not saving for other expenses.

Are You Loosing Money to Sell?

In some cases, you could be losing money to sell your home and move up to another home. Can you get a comparable interest rate? Will your new loan be larger or smaller than your current loan? Will you have to sell your house for less than you paid? If the market is down in your area, you might want to consider hanging onto your home until the market improves and you can get more money for your sale. In many cases, a matter of months or a year or two of staying in your existing home can make a big difference in the financial picture, so it’s worth doing the math.