First, you have to decide if you’re going to rent out your house or sell it. There are some advantages and disadvantages to each approach. Choosing to sell means you get the money, or equity, immediately that can be fronted towards a new place. However, you’ll lose out on further appreciated value. For renting, you get a steady source of income, but you have to deal with maintenance and potential tenant problems.
For the sake of the article, we’ll say you continued with your plan to sell the house. Now, how do you go about doing it? First, take a look at the current state of the market by looking at what recently sold houses that are similar to yours and in your neighborhood fetched.
If the market looks right for you, now you have to decide if you’ll use a realtor or not. Obviously, you’ll have to pay a realtor a commission, but a realtor can do marketing and researching, which they have more experience and connections for. However, it is absolutely possible to do it yourself! With 90% of home buyers investigating online, it is an increasingly accessible task to sell your house. Just be sure to photograph it in an appealing way and to maintain your curb appeal!
It may be months before getting an offer. Don’t get discouraged! This can just be part of the process. In fact, you might be suspicious of realtors that sell houses too quickly or 100% of the time, as they may be underselling it to get a quicker paycheck. Patience is key in this step.
Once you do receive an offer, there’s a third option to accepting and rejecting: the counter-offer. If the offer was too low but close enough that you feel you can negotiate, give a counter-offer. Adjusting appliances or furniture included can affect the buyer’s decision as well.
Let’s say you come to a deal. At this point, the buyer will often request a home inspection and title search. There may be repairs and/or contingencies negotiated into the deal. Then, you need to have an escrow agent hold the down payment until the deal is officially closed. They will also transfer the deed. You’ll need to go to an attorney for final price, financial contingencies, the possession date and closing date.
There are several forms that need to be filled out by you, the seller, and the buyer. You’ll need to sign a transfer deed title form, a bill of sale, an affidavit of title, and a 1099-S. Make sure you get a RESPA form, affidavit purchase price, and transfer declarations from the buyer.
All that’s left is the transfer of the keys, and your house is sold. Now go out and there sell that house so you can get your next one!
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