Whether you plan to sell your house on your own or hire a real estate agent, the home selling process is very similar throughout the country. Although a few things may vary in some counties.
1. Find, interview and choose a real estate agent
Having the perfect partner during the process determines the success of the sale. A real estate agent saves you the hassle of figuring out the dynamics by yourself. It saves on time, money and energy.
Before choosing an agent, here are three small steps:
- Search for a few local real estate agency and explore online reviews about each agency, then contact a few good ones for interviews.
- Spend 30-45 minutes interviewing each agent, at their office
- Based on your interviews, choose an agent that you feel suits you the best.
Related: Why You Should Hire Us To Sell Your House
2. Find out how much your house is worth and price it
Most Kenyans think you just plaster a price on their house which they assume is the correct price. However, your property needs to be valuated by a professional in order to price it according to the current market.
Although you can list your house at any price you want, you need to understand what the market is willing to pay before pricing it to sell. Here is where your agent comes in handy, they will provide you with the details.
3. Make necessary repairs or replacements
Unless you are planning to make the buyer handle all the repairs at a reduced price, you should definitely fix the home up. This stage will give you a workout before handing the responsibility over to the new homeowner.
You should walk through the house with your agent and make a list of the items to clean, repair and replace prior to showing your house to potential buyers. You don’t have to repair or replace everything your agent suggests. Just see how much your house can sell for and use your common sense when deciding which are reasonable projects so you can sell the house within your expected time frame.
4. Get your home ready for the sale
Honestly, some sellers seem not to care about the appearance of the property. However, keep in mind most buyers are buying the experience of the home, not the structure. Hence, focus on making the home look appealing. This is where home staging occurs. This helps prospective buyers imagine more freely what it would be like to own the home and adapt it to their own style.
See Also: Home Staging Ideas To Sell Your House Fast
5. Fill out seller disclosures
This is where you disclose all the makings of the property. Are you aware of the materials used? What year was the house built? Moreover, you should also provide full disclosure of anything that has been a problem in the house while you were the owner (leaks, faulty wiring, rodent damage, pests, cracks in concrete flooring, etc.) and explain how the situation was corrected.
6. Begin to market your house
Your agent would send someone over to take pictures of your house, then compile all information for the listing and begin to advertise your home for sale.
7. Show your house
You can discuss with your agent the options on how to show your house: by appointment only or give your realtor keys. If you still live in the house, the appointment option is the best because it allows you time to get ready for the showing. You will want to quickly put things away to protect your privacy.
This method can be combined with the other option. In this case, an appointment is made, you tidy up your house and leave a few minutes before the showing. The realtor then uses the keys to enter your home at the appointed time. If you no longer live in the house, then a key option would be better for you because the home is always ready for a showing. It maximizes the number of showings your agent can make.
8. Give a purchase offer and negotiate
Moreover, you priced your house competitively, multiple buyers should come your way. If offers are lower than your asking price, don’t hesitate to make a counteroffer or ask for full price. Buyers like to “test the waters” to see how you might respond, while still making room for negotiation. Property investors and experienced real estate agents often do this to maximize benefits for their buyer.
Make sure you keep track of all offers and counter-offers from potential buyers but remember to work with one offer at a time. Together, they will give you an idea of what people are willing to pay for your house. You can then adjust your price accordingly. You should ask for a “kick-out clause” or first right of refusal if the buyer’s offer is contingent on selling a home. This will help you avoid a difficult situation
Here is where the buyer will send an earnest money deposit to your listing broker or deposit it to the trust fund as stated in the purchase agreement/offer. This action shows that the buyer is genuinely interested in purchasing your house, and if they back out without a valid reason, that earnest money deposit is yours to keep.
9. Home inspection and appraisal
Most likely, the buyer will hire a home inspector to inspect your entire house for damages or non-functional components. This enables the buyer to make an informed decision on the home purchase, and the buyer may ask you to repair or replace several things before moving forward with the sale.
It is during this time of the home buying process that the buyer can back out of the deal if they find something wrong with your house. So, it is important to repair or replace anything that seems fair before showing your house.
You should also make full disclosure of the things you intend to repair or replace that will come with the sale. If the buyer needs to use financing to buy your house, their lender will order a third party appraisal company to appraise the current market value of your house. Based on that value, the lender will determine how much money they will lend to the buyer.
If the appraisal is lower than your asking price, the buyer may use that to renegotiate the deal. However, if the buyer cancels the contract if your home came in appraised at or more than the contract price, ask your agent or lawyer about your rights. One thing to know: you will not receive a copy of that appraisal because you did not pay for it.
In conclusion, as a seller consider the above to have a smooth sale. Or contact us to help in the process.