When It comes time to sell a home, most people reach for their laptop or tablet and look for the nearest Realtor in their area.
Realtors know their stuff, will “work to the bone” for their clients, and it’s hard to argue the results of talented realtors across the country. However, you may want to stop and think before entering into a business relationship that may last up to 12 months.
If this is your first foray into selling a home, or you just feel overwhelmed by your options, here are some questions to ask yourself that may help:
1. Does the title have any outstanding issues?
Your new buyer is going to want what’s known as “clear title”. All that means is that there are no liens, judgements, encumbrances, etc. against your property. With a “clear title” any title or closing company shouldn’t have a problem insuring your new buyer’s title, and giving your new buyer a Warranty Deed. This is the deed most buyer’s want, and affords them, and their newly-purchased property, the most protection. Oftentimes, a title may come back with minor defects. Don’t panic, it’s common. If that’s the case, your title agent should tell you what documents are required to rectify any problems.
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2. Would a Buyer have trouble insuring the property?
Let’s face it: Not all properties are beautiful colonials with little white picket fences. If you’re selling a house you got through inheritance, or maybe a vacant property you own out of state, it may not be in tip-top shape. Now, there is nothing wrong with this but it’s just something you need to take into consideration. If the house is pristine there is no need to worry. However, if it needs some repair, you may want to call Homeowner’s Insurance providers in your area to do a little research. Give them a general idea of the condition of the home, and ask if their underwriters will insure such a property. If standard underwriters say no, don’t worry! There are other companies that may insure after just a very minimal inspection, known as a “4-point inspection”. Just to be clear, I’m not saying that your home won’t sell if it can’t be insured. I’m just saying look into it. Do your research. If you’re dealing with an older property that may have trouble being insured, you may want to reconsider listing with a Realtor.
3. Do I WANT to sell or do I NEED to sell?
After asking this question of yourself, if you’ve found that you “want” to sell your property (or you need to sell, but aren’t in a rush) you may want to go the Realtor route. If you need to sell, and need to sell quickly, the traditional sale process probably won’t be a good fit. Once things like inspections and financing are brought into the equation, the process of selling your home can take much longer. The average timeframe for the traditional sale of a house is 4 to 6 months. If speed is what you need, you may want to consider an alternate route like a local house-buying company. You could list the home For Sale By Owner, and sell it yourself but oftentimes this can create a lot of hassle and stress. Also, For Sale By Owner properties (or FSBOs) typically drop off without selling 50% of the time.
4. Have you considered the cost of working with a Realtor?
If you get a Realtor that is the right fit for you, they will be a great asset. They get paid a commission for their work, and rightfully so, but it is still a factor of a traditional sale that you need to consider. In addition, you’ll also need to consider closing costs. These are the costs involved in the sale of your property. You can call a local title company to inquire as to how much they will be, but they typically run 10-12% of the asking price including your Realtor’s commission.
Whatever you end up choosing, considering the questions in the article will set you on the right path to choose the option that’s best for you.
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