By James Hoffman
Selling your home can be surprisingly time-consuming and emotionally challenging. It can feel like an invasion of privacy when strangers open your closets and poke around every nook and cranny. They will openly criticize your home and your decorating abilities and will then offer you less money than you think your home is worth.
With no experience and a complex transaction on your hands, it’s easy for home sellers to become frustrated.
Remember these thoughts and maintain your cool.
Keep your emotions in check and stay focused on the business aspect.
Hire an agent – it’ll cost you a small commission and in my case (Greenwich Connecticut Properties, LLC, a 2% commission) of the sale price.
Of course you must set a reasonable price for your property. Spring is the best time of the year to list your property!
My thought as an experienced Greenwich broker is to fix problems prior to listing the home and having your home inspected before listing is a great idea to avoid costly surprises before and after the home is under contract.
Sellers who do not clean and/or stage their homes throw money down the drain. Failing to prepare your home will reduce the sale price and may also prevent you from getting a sale at all. If you haven’t attended to minor issues, such as a dripping faucet, a potential buyer may wonder whether the house has larger and more costly issues that have not been addressed.
Have your broker point out areas of your home that may need work. Because of your familiarity with the home, you may be immune to its trouble spots. A major issue with many homeowners is decluttering your property. Putting a fresh coat of paint on the walls and getting rid of any odors will also help you make a good impression on the buyers.
ACCOMMODATE THE BUYER
If someone wants to view your home, you need to accommodate them, even if it inconveniences you. Clean and tidy the house before every single visit. A buyer won’t know or care if your house was clean last week. It’s a lot of work but stay focused on the prize.
SELLING TO AN UNQUALIFIED BUYER
A good broker will not let you sign a contract with a buyer who is not qualified or who has a house that is contingent on the sale of their property, financial issues, etc. This may in the short or long run put you in a financial bind, especially if you need to close by a particular date.
CAN YOU SELL A HOUSE WITH A MORTGAGE?
Yes, you can sell a house with a mortgage. During the escrow process, you will get a mortgage payoff statement from the lender holding your mortgage that lists the exact remaining balance. When your loan closes, the escrow agent will send the balance of your mortgage to your lender, paying off your mortgage.
STAGING YOUR HOME
Staging a home can lead to a quicker sale and higher home prices. However, not everyone needs to hire a professional staging service. Just taking a few steps like cleaning and decluttering can have a significant impact on a home’s sale and will need to be done before moving regardless of the sale.
HOW MUCH WILL I MAKE SELLING MY HOUSE?
How much you make depends on the sale price, the broker’s commissions, closing costs, and the remaining mortgage balance. If working with a real estate broker, you should receive a seller’s net sheet detailing all closing costs, including conveyance taxes (State of CT and local taxes).
SHOULD YOU SELL YOUR HOME FOR CASH?
Selling a home for cash is a quick way to avoid the hassle and stress of staging a house, showing it repeatedly, making repairs, and juggling competing offers, etc. Many cash buyers may not buy a home for more than the list price, which may include the cost of any repairs. Cash offers need to be considered with the advice of a knowledgeable broker regarding all the pros and cons.
THE CURRENT MARKET
The Greenwich real estate market is suffering from a lack of inventory, much like the rest of the Northeast. The average sale price in Greenwich for a four-bedroom home is over $2.6M, with many homes, of course, selling well above this price point. With fewer homes, whether they are single-family homes or condominiums, the competition is severe for the buyer and places the seller in a unique situation as long as mortgage rates stay well above 7%.
DON’T FORGET ABOUT CAPITAL GAINS
Don’t forget about capital gains for sellers over 55 years of age, which excludes each individual up to $125,000 or $250,000 for a married couple on the sale of their personal residence. However, if the sellers are 65 or older and have lived in their home for at least five of the prior eight years, the capital gain is not taxed regardless of the amount. My advice is to contact your financial consultant and/or tax attorney regarding your personal situation.
JB Hoffman, SRES, CCRA is the Managing Broker at Greenwich Connecticut Properties, LLC and can be reached at 203-273-1759 or jbhoffman48@gmail.com
