Spring has sprung, and more "For sale" signs have been popping up in yards across the country.
The busy home buying season has begun, but mortgage rates are still high and home prices elevated. As always, homebuyers are out looking for a great deal.
Until recently, home sellers pretty much had their pick thanks to bidding wars. Not only have homes been selling quickly and even with multiple offers, many offers were coming in over asking price.
While trends in any given market are highly individual, hot selling days have started to cool in at least some places. According to the S&P Dow Jones Indices, the S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 4.08 percent in January. That's the third lowest January increase seen in the last 10 years, and is only fractionally above the two that are lower.
To be well positioned to address changing trends, first-time home sellers may need to be more strategic about how they list their home for sale, and when.
Related: What's holding back housing?
Five home selling tips
First-time home sellers aren't real estate newbies. Even so, it's not like buying a home teaches you everything you need to know about selling one.
Even if you've sold a home before, novice sellers still face challenges and decisions that are unique to the sales process. If you're ready to sell, but anxious about the unfamiliar experience, here are five tips to sell your home fast:
1. Price your home competitively
When listing your home for sale, cast a wide net for potential buyers. Pricing your home properly from the beginning is imperative.
Some sellers can let their emotions dictate their selling price instead of relying on their real estate agent's expert opinion and market data -- and that can be a big mistake. Just because your neighbors sold their home at a top-shelf price doesn't mean you'll be able to. Market conditions change, sometimes quickly.
According to studies, nearly 60% of homes nationwide sell at or above listing price when they accept an offer in the first week. In the second week, however, that drops seven percent and continues to trend downward as the weeks go on. As such, you'll want to be ready to deal.
Be sure to research comparable sales, also known as "comps". Your real estate agent should be an expert in home values in your area and can be a great help with this. It's important that the comps you use are a similar size and condition as yours. They should also be near the same age and in close proximity to your home.
2. Time your home sale properly
Whether you're in hot seller's market or it's a buyer's market, an important strategy that shouldn't be overlooked is when to list your home for sale.
Research shows that sellers typically get the highest prices and sell their homes more quickly when they list in early-mid April, according to Realtor.com. Homes listed in that week logged an average of 17.7 percent more views and have 13.2 percent less competition from other sellers.
Even more appealing for sellers: Homes listed during this week of April see 1.1 percent higher prices than the average week of a given year -- a gain of $4,800 more for a typical home (and 6.7% -- $27,000 -- higher than homes sold at the start of the year).
It's important to note, however, just because you miss an April window doesn't mean you can't sell your home quickly. According to Danielle Hale, chief economist with Realtor.com, while many parts of the country see homebuyers out in full force in the spring, some markets have later peak listing times.
3. Stage your house to sell
Consider staging your home to boost its selling power and appeal.
This is another area where your agent can help. Most real estate professionals can offer great advice on preparing your home for sale.
Home sellers should try to find the balance between being cluttered vs. being empty and not lived in.
You may be surprised to find out that most homes show better with roughly half of the furniture removed. However, if a homebuyer walks into your home and wonders if anyone lives in the house, that's not likely to leave them with a great first impression.
Related: Mistakes that could ruin your open house showing
4. Complete certain home repairs before listing
Don't wait until the home inspection to start making certain repairs.
If you know you have a water heater that's about to go, a running toilet, leaky faucet, or other issues that are likely to turn a buyer off, or more importantly, be flagged by a home inspector -- fix them before listing your house for sale.
On the other hand, buyers often ask sellers to repair "everything" in a home inspector's report, says Jean Bourne-Pirovic, a Realtor at Long & Foster Realtors in Silver Spring, Maryland. As a seller, however, you'll want to be more circumspect, since those repairs take a bite out of your profit.
You do have an obligation to make certain repairs, Bourne-Pirovic explains, so it's important to know what those items are. Typically, repairs that are required by law or involve safety or health hazards are "must-dos." But you needn't say yes to every repair. Cosmetic fixes in particular might be a "no."
Related: Get a Home Inspection Before Selling Your Home
5. Vet potential homebuyers
For buyers, financing is all about getting approved for a mortgage, and buyers who are short on cash might be especially keen to get a low- or no-down payment loan insured by the Federal Housing Administration (FHA) or guaranteed by the U.S. Department of Veterans Affairs (VA), respectively.
For sellers, though, financing is all about the buyer's ability to close and in that context, you might view a loan program that requires a healthy down payment and fewer hoops for you to jump through as a better sign.
"As a buyer, you think you've submitted a really good contract, which is basically a lowball (offer) with the minimum down and minimum deposit," Bourne-Pirovic says. "When you're selling, things that are attractive are a higher deposit and a conventional loan, instead of FHA or VA."
The bottom line when selling your home
Perhaps you've considered selling your house because you need additional space, you want to downsize, or are relocating for any number of reasons. Whatever your motivation, it's important to be prepared for the sales process -- even more so if you want to sell your house fast.
Selling your home can be both emotional and stressful, especially for a first-time home seller. If you follow these five tips, you can set yourself ahead of the competition by convincing buyers that your home is the one for them.
This article was updated by Keith Gumbinger.
Really thanks for sharing this useful post !! This post is very informative and i have got very good information about first time home sellers. keep sharing !!