Selling properties can be a tough job if you don’t know how to handle real estate deals properly. Most people think that hiring a real estate agent can get their properties sold without the need to play a part in the process, which is why around 60 percent of them fail to close deals.
Sure, you can garner higher profit with professional assistance, but if you don’t make an effort to understand the processes involved in selling your properties, your listing may end up expired, cancelled, or taken off from ads due to being stagnant.
According to the National Association of Realtors (NAR), job growth in the U.S. in 2016 will increase from 1.5 to 2 million, allowing more people to consider buying their own houses. Buffini & Company supports this claim, stating that 69 percent of Americans believe that now is the best time to purchase a home. So, why would you pass up this great opportunity?
Also, there are 80 million millennials in America who are now a part of the workforce, with 93 percent of them hoping to own a home in the future—that’s 25 percent of the whole U.S. population who you can sell your properties to! To be a successful property seller, here are smart ways you can take advantage of this information and score a deal:
1. Prepare Ownership Documents before Selling
Before you can even think about partnering with a real estate agent, you’ll first have to know what papers are needed to transfer your ownership to a buyer. Property purchases usually require:
It transfers the property from the seller to the buyer. Its form varies depending on your state or country. Deeds are given to the local county to record the transfer, so in case anyone is looking at your property’s ownership, they can see that it has been passed on to a new owner.
Bill of Sale
This document shows the transfer of assets which are sold together with the property, such as air conditioners, light fixtures, appliances, etc. All of the valuables included in the estate sale are also listed or referred to in the contract between the seller and buyer.
Affidavit of Title or Seller’s Affidavit
Similar to the bill of sale, it is a notarized statement from the seller that affirms previous ownership and declares title defects such as leases, liens, outstanding contracts, and any legalities that could potentially create disputes on the property.
Transfer Tax Declarations
As every citizen has duties in each state, selling a property requires you to pay real estate taxes. The amount will depend on your local government and your property’s purchase price, which you must declare and sign together with the buyer.
Being knowledgeable about these documents and acquiring them before you meet your buyer can prevent problems with paperwork and result in a smooth transaction. Like the 59 percent of buyers in 2015, your prospects will be more interested in purchasing your property if you make them comfortable with the process.
2. Create a Good Impression on MLS
It’s paramount that you stand out on the Multiple Listing Service (MLS) because more than 50 percent of recent homebuyers regard it as the most trusted source of great houses for sale. NAR states in their 2015 Buyers and Sellers Profile, 91 percent of sellers listed their homes on MLS because of the ease in getting leads and receiving inquiries.
In the California Regional Multiple Listing Service alone, America’s largest MLS organization, there are more than 70,000 active members who have generated more than 223 million impressions and 13 million property detail views as reported by Homes.com. With these statistics, it’s a no brainer that you’ll have a lot of prospective buyers. What you should do next is highlight your property’s best features and amenities to get them interested.
Like salespeople, you have to offer something that will make your buyers feel that they are getting a good deal. Add extra furnishings or sell it in a price range that is good for you and your target group without losing out on profit. Be sure to let MLS know of your property’s “X factor” and include it on your listing to capture potential buyers’ interest and get those inquiries coming.
3. Increase Your ROI through Staging
Some say that staging a property manipulates the true nature of a sale and that it just doesn’t work. Contrary to this belief, a lot of studies have shown that it can actually increase an estate’s value and lessen the time it’s out on the market. In Realtor’s 2015 Profile of Home Staging, it was found that 81 percent of buyers think that staging makes it easier for them to visualize a property as a future home.
Their offers also go up, with 32 percent of buyers willing to pay 1 to 5 percent more, 16 percent are willing to increase between 6-10 percent, and 4 percent of the surveyed buyers would increase it up to 20 percent on top of the initial price.
To make staging a more exciting effort, Home Staging Resource revealed in their survey that out of 3,500 staged homes, 46 percent were sold for 10 percent more than the original price compared to properties that weren’t staged.
4. Invest in Property Improvements
The look and features of your property must be attuned to what your target buyers need. That being said, you’ll have to consider if your floor area has enough room for the occupants. Every part of the property must also be functional and in good condition so your buyers won’t have to deal with the unnecessary hassle of renovations, which can lower the selling price.
Your job, as an investor or seller, is to make your property attractive and sellable. According to the NAR’s survey, both buyers and sellers agree that the five rooms that draw the most attention are the living room, kitchen, bedroom, dining, and bathroom. Also, yards should be one of the top priorities for improvements when selling a house because buyers consider a property’s curb appeal before checking it out.
So before you put up a listing, check if the property needs improvements, repairs, and upgrades. This will not only make it appealing to potential buyers, but it can also raise its selling price and speed up the sale.
Increase Your Odds
In real estate, it’s important to get your property in top shape and be prepared for any hiccups when trying to close deals. It always pays to be knowledgeable to have an advantage, especially when selling properties. By following these tips, you can have a leg up on the real estate competition and increase your chances of getting your property sold.