Thinking about moving soon? We answer the most common questions about selling a home here.
Q: How much is my house worth?
Market value of your house is determined by the market – that is, what today’s buyers are willing to pay for your house. Like a stock, buyers are comparing your house to other homes currently on the market, and similar homes that have recently sold in your area. There are three ways we recommend for getting your home value. For a starting point, you can check online estimates such as Zillow. If you are making a financial decision it is smart to have a Realtor give you an evaluation called a CMA or Comparative Market Analsyis. The most recognized way to get your home value is to pay for an appraisal. Here is a quick read that explains these methods in more detail, and if you would like to get a Realtors evaluation, click here.
Q: How long will it take to sell my home?
The time it takes a home to sell depends on the availability of other homes like it and exposure the home gets to prospective buyers. Right now the average time a house is for sale in Denver Metro is 37 days. As we move in to the summer market that number will decrease.
Q: Should I be present when buyers view my house?
No. Sellers tend to make buyers nervous when they are home for showings. You don’t want them to feel rushed or unable to talk freely to their family about your house, and how they will live in it.
Q: How much does it cost to sell my house?
Commission rates, property tax, title insurance, and repairs are the most common expenses. Commission rates are typically between 6% and 3% of the purchase price. Taxes are split based on the most recent assessment. Title insurance for a $250,000 house is around $1,350. A $500,000 house is around $1,800. A $1,000,000 house is around $2,700. Repairs are property specific. Most homes range between $500 to $1,500.
Q: When is the best time to sell my home?
The best time to sell your home depends on your goals. If you are looking to sell your house and move to a bigger or smaller home in the same area most sellers choose to move in the summer when the most homes are for sale to choose from. The downside is that you will have more competition for selling your house. If you are looking to sell your home without purchasing another home in the area then you should pick the months that historically have the highest sale price or shortest time on market depending on your needs. A Realtor will be able to tell you which time of the year will best meet your goals.
Q: How long does a listing agreement last?
Every listing agent will have a different time period. If the average time it takes for a home to sell in your neighborhood is 30 days you should expect a three to six month listing agreement. If it takes more than three months for a home to sell in your neighborhood a 12 month listing agreement should be expected.
Q: Should I price my home higher to leave room for negotiations?
In Denver Metro the average closing price is only 2% below the original asking price. A home priced close to market value will sell quickly and close to the asking price. Buyers are well educated and if your house is overpriced they will move on to the next home, costing you more money and time on market.
Q: What is a sale contingency?
Some buyers will choose to find a replacement property prior to selling their current house. As a seller this is risky because their home may not sell and cost you time on market and your moving dates are up in the air. It is best for you to only work with a sale contingency if the buyer has a house that is currently under contract with a confirmed closing date.