Top 15 Most Frequently Asked Home Sellers Questions
Posted By Winston Bowdre October 9, 2019
It’s known that the home buying process comes with many frequently asked questions and the home selling process is no different. Whether you have never sold a home or have sold half a dozen, there are many questions that come with the process.
This certainly is due to the fact that selling a home isn’t a process that is practiced regularly by home owners and also that rules, regulations, and the industry change on a daily basis.
The top frequently asked questions from home sellers begin to accumulate before even starting the home selling process. If you’re going to be selling your home, it’s suggested you are prepared and have a strong understanding of the process.
Many times the best way to understand the process and be well-prepared is by asking questions.
The importance of knowing how to interview a Realtor when selling a home certainly cannot be overlooked.
A top Realtor should be able to reduce the amount of questions a home seller will have when selling a home because they will address many of these frequently asked questions before they become a question.
So what are the most frequently asked questions from home sellers? Here are the top frequently asked questions that home sellers ask before listing a home for sale, questions relating to home value & pricing, questions relating to contracts, and questions relating to purchase offers.
HOW IS THE MARKET?
A frequently asked question from home sellers before listing their home for sale is related to the local real estate market.
There are many market indicators that a top producing Realtor should be able to share with you to help explain the condition of the local real estate market.
One of the most important indicators on market conditions is average days on the market. The average days on market can indicate to a seller how quickly homes are selling when listed for sale.
Other examples of market condition indicators that a top producing Realtor will provide a home seller before listing their home include market absorption rates, number of closed transactions year-over-year for a given month, average sale prices, and average list price to sale price ratios.
HOW MUCH IS MY HOME WORTH?
Most home owners want to know how much their home is worth.
This frequently asked question is another one that cannot be answered with a generalized answer.
One of the best perks to owning a home is the ability to make it your own and improve it how you’d like.
Finding out how much your home is worth is not something that should be done without asking a top local Realtor.
WHEN IS THE BEST TIME TO SELL MY HOME?
This frequently asked question cannot be answered with a simple or general answer.
Every real estate market is different, therefore, the best time to sell a home will be different from real estate community to real estate community.
In most cases, the spring months are the best time to be selling a home. For example, the spring market in the Dallas/Ft. Worth area may start in late February to early March.
Since every home sellers situation is different, you should discuss the timing of your home sale with your Realtor®.
In some cases, selling a home during the fall and winter months actually may be better than waiting until the spring real estate market. This is due to a combination of many factors including lower competition, weather, and that serious buyer’s are always looking for a home, just to mention a few factors.
WHAT STEPS SHOULD I TAKE TO PREPARE MY HOME FOR SALE?
This frequently asked question cannot be answered with a simple or general answer.
Every real estate market is different, therefore, the best time to sell a home will be different from real estate community to real estate community.
In most cases, the spring months are the best time to be selling a home. For example, the spring market in the Dallas/Ft. Worth area may start in late February to early March.
Since every home sellers situation is different, you should discuss the timing of your home sale with your Realtor®.
In some cases, selling a home during the fall and winter months actually may be better than waiting until the spring real estate market. This is due to a combination of many factors including lower competition, weather, and that serious buyer’s are always looking for a home, just to mention a few factors.
WHAT SHOULD I DISCLOSE TO POTENTIAL BUYERS?
When selling a home, it’s important you disclose to potential buyers anything you are aware of in your home.
Nobody likes “getting the raw end of a deal” when it comes to buying a home, car, or anything for that matter.
If you’re aware of defects with a roof, appliance, or home in general, you’re always going to be better off being honest and upfront.
If you’re aware of defects, whenever possible, fixing them before going on the market is best. This can avoid potential issues and/or lawsuits once your home is under contract, after inspections, and even years after you have sold your home.
WHY IS THE ASSESSED VALUE DIFFERENT THAN WHAT YOU SAY MY HOME IS WORTH?
Assessed value is not the same as market value or appraised value. There are many homes that could be sold for significantly more than an assessed value and others that maybe sold for significantly less.
The assessed value of a home is used for the purpose of taxes in your local municipality. The assessed value of a home is multiplied by the local tax rate to determine what your yearly taxes are.
The assessed value has no impact on how much your home is worth to a potential buyer in the marketplace.
Unfortunately, there are many home buyer’s who believe that a home that is listed higher than the assessed value is overpriced. This is the furthest from the truth.
Home buyer’s also question if something is wrong with a home if the list price is much less than the assessed value. The bottom line is the assessed value has no impact on how much your home is worth. There are home owners who don’t pay attention to their assessed value, just to find out their municipality has been slowly raising it, year after year, even though the market value hasn’t been increasing.
HOW DO YOU DETERMINE HOW MUCH MY HOME IS WORTH?
There are a handful of methods that Realtors use to determine the value of a home.
The most common method to determining the value of a home is by completing a comparative market analysis.
A comparative market analysis is an in-depth evaluation of recently sold “comparable” homes in the past 6-12 months.
A comparative market analysis, also known as a “CMA,” isn’t a crystal ball that determines what a home will sell for, however, if performed by a top Realtor, it should greatly narrow the sale price range.
A professionally completed “CMA” will take into account many features of not only a home, but also the local area and neighborhood. Considerations that a professionally completed “CMA” include, but is not limited too:
- Square footage
- Number of bedrooms
- Number of bathrooms
- Upgrades to kitchen
- Window quality
- Roof age
- Location; primary neighborhood
- Style of residence
- Flooring type
CAN I DETERMINE HOW MUCH MY HOME IS WORTH FROM AN INTERNET WEBSITE?
The answer to this frequently asked question is NO! Anyone who has bought a home, sold a home, or just looked at homes, has heard of websites such as Zillow and Trulia.
These are also commonly referred to as third party real estate websites.
Third party real estate websites are not local to every real estate market.
These third party real estate websites provide estimates of home values for practically any home in the United States.
How is it possible that a third party website that is headquartered in California or Washington can provide an accurate home value for a home located in Dallas, TX? It’s not!
These third party websites, such as Zillow and Trulia, use computer generated home values based on calculations and formulas.
These websites providing inaccurate estimates (or “Zestimates”) can create a false sense of hope and lead to frustration.
A home seller who is told their home is worth $20,000 less than the online estimate is going to be understandably upset. It’s critical that when selling a home, the value is determined by a top Realtor in your local area, not an internet website!
SHOULD I PRICE MY HOME HIGHER TO LEAVE ROOM FOR NEGOTIATIONS?
This frequently asked question often leads to a common pricing mistake that sellers make.
Many sellers believe they should price their home $5,000 higher than what a top Realtor suggests to leave room for negotiations and low-ball offers.
A well priced home will sell quickly and will sell for close to the listing price. There is no need to leave room for negotiations, as today’s home buyers are very well educated.
A seller who prices their home high to leave room for negotiations can actually be costing themselves more money than if they price it to reflect the suggested market value.
HOW LONG DOES THE LISTING AGREEMENT LAST?
Most of the frequently asked questions that relate to exclusive right to sell contracts are not able to be answered with a universal answer.
When it comes to the length of a listing agreement, every real estate agent will have a different preferred length.
One thing to keep in mind when asking about the length of a listing agreement is the average days on the market.
If the average days on the market in your local real estate market are 75, a 90 day listing agreement may not be enough.
HOW MUCH COMMISSION DO YOU CHARGE?
Commission is negotiable, period. Don’t let any Realtor tell you otherwise.
This being said, the saying “you get what you pay for,” often is true when it comes to real estate.
If a Realtor offers a lower commission, do you think they will negotiate aggressively on your behalf when it comes to the price?
Also, if you were working for a reduced hourly wage from your “normal,” would you work as hard as you normally would? The answer is likely not.
Choosing a Realtor based solely on the fact they offer the lowest commission amount is a top mistake made by home sellers when choosing a Realtor to sell their home.
SHOULD I BE PRESENT WHEN BUYERS VIEW MY HOUSE?
Easy question to answer – no! There are many reasons why sellers should not be present during showings.
The primary reason why you should not be present at showings of your home is potential buyer’s can feel uncomfortable to talk open and freely with their Realtor about your home.
They do not want to say something that could offend you, the seller.
The best idea is to leave shortly before the scheduled showing and come back once you are certain the buyer and their Realtor have left your home.
WHAT ARE THE MOST COMMON CLOSING EXPENSES FOR SELLERS?
Another popular frequently asked question from home sellers is how much it will cost to sell a home.
There are expenses that the buyer will have that the seller will not and vice versa.
Typical closing expenses for home sellers include the abstract and title search, instrument survey, real estate commissions, and prorated property taxes.
IS STAGING REALLY IMPORTANT?
The answer to this question is "maybe".
Home staging can become very expensive and often a seller will not recoup the money spent on staging their home.
Home staging is a very important tool in the marketing of your home.
Staging will help maximize the price a home sells for and minimize the time it spends on the market.
Staging a home can help a seller set their home apart from their competition.
In a competitive real estate market, a seller who differentiates their home from the other homes for sale, can be the difference on which home a buyer chooses to purchase.
Whether you buy furniture and other decorations to stage your home or keep it simple with your own, here are a few tips to keep in mind: Define rooms with a purpose, less is more, maximize space, and pay extra attention to lighting.
HOW DO YOU PLAN ON MARKETING MY HOME?
A comprehensive marketing plan is something that you should expect from your Realtor when selling a home.
The days of placing a sign in front of a property and waiting for someone to sell it are over.
With the evolution and the impact the internet has had on the real estate industry, it’s critical that not only is your home marketed through “traditional” avenues, such as newspapers and mailings, but it must also get maximum exposure online.
A top Realtor should have a quality website, quality real estate blog, and a strong social media presence. The importance of where a Realtors website ranks in search results is critical since over 90% of buyer’s are beginning their home search online!
Final Thoughts
The above frequently asked questions from home sellers are all great questions. After all, there just aren't any "dumb questions" when it comes to real estate. The reality is that selling a home is not something that is frequently done, therefore, questions are a great way to be prepared and well educated on the process.
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