One of the biggest misconceptions is that you should wait until you are absolutely ready to go on the market before interviewing Realtors. In truth, this should only apply if you have to satisfy a sudden issue that forces you to list ASAP. If you were to get an acceptable offer on the first day your home hits the market, you would be looking at a 45-60 day process until closing if everything goes smoothly. Add in the time it takes to interview a few Realtors, prepare your home to sell, deal with any unforeseen issues that arise and you are really looking at a 3-4 month process at best. Things That Can Add Time and/or Value: - Staging/Cleaning: You don't have to have 10 years experience to know that homes that show well will attract more buyers and demand a higher value. Taking an extra week or two to spruce up the house and get all of the clutter out will go a long way.
- Updates/Repairs: Once you have determined which updates and repairs you want to make before selling (granite counter tops, new hot water tank etc...), you will be at the mercy of the contractors schedule for completion of the project.
- Not Reacting to the Market: If showings/offers don't come pouring in, how quickly you react will have a large bearing on the overall days on market. Remember, the 45-60 days until closing doesn't start until you get an acceptable offer.
- Finding your next home: If you will be upgrading or downsizing and your home sells quickly, you may want to negotiate a little more time to find/secure your next home.
- Buyer's Financing Issues: Any hold up with the underwriting process can cause minor delays and call for extension of time to close.
- Appraisal Issues: Any major difference between the appraised value and the selling price can result in issues with financing and could add time to get the problem resolved.
The Best Timeline for Your Listing:
- Hiring your listing agent: Approximately one month before you want to hit the market
- Go on the market: Once you have everything ready and in show condition. Remember, you only get one chance to make a first impression, make sure the price, condition and marketing materials are designed to make your listing stand out!
- Get an offer: This will depend on current market conditions along with all of the work and preparation you have done with your listing agent. While everyone would love to get an offer ASAP you need to be prepared to listen to the market if you aren't attracting showings or offers.
- Home Inspection Period: This is normally done on a 7-14 day timeline, but is negotiable and spelled out in the offer. The potential buyers can opt not to have an inspection if they choose but that is not the norm. (See 5 ways to inspection proof your home)
- Purchase and Sale Agreement: This is final contract and is usually negotiated between your Attorney and the Buyer's Attorney. The timing is outlined in the original offer and customarily a couple of days after the inspection period to allow for any issues to be addressed. If no inspection issues arise it can be completed a few days earlier depending on the Attorney's timeline.
- The Closing: The original contract will outline a specific date for closing which is normally 30-45 days after the signing of the Purchase and Sale Agreement. This can be a frustrating time for Seller's because it seems like nothing is happening, but this is where the bulk of the work is done. The Buyer's underwriting process, title search, appraisal all have to be completed. The Seller has this time to have a smoke/CO detector inspection done and arrange for final utility readings that will be used to arrive at the final numbers. If anyone drops the ball on a specific issue it could result in a delay.
No comments:
Post a Comment