Selling your Olathe home is not on anyone’s top 10 list of fun things to do in this real estate market. What can we say . . . It is a buyer's market and Olathe homes are selling at below 2007 prices....
If it is time to sell your Olathe home, here is a simple game plan of what you can expect during the process. First-time Olathe, Kansas sellers, listen up, because now it’s your time to find the buyer!
First and foremost, figure out if you want to sell your home on your own or with an experienced Olathe real estate agent. The vast majority of people choose to sell their home with an agent, which is statistically wiser. Fewer financial results and smaller sales are produced from homeowners selling their own homes. How can this be? The simple fact is that the sale of your home depends upon what a buyer is willing to pay. If you cannot attract the right buyer, or negotiate the proper deal, then you’re stuck behind the eight ball. And remember - marketing your own home can be very costly.
With an experienced agent, covering the marketing cost and applying proven plans to sell your home becomes
less stressful. A seasoned Olathe real estate agents is experienced with the process, which means fewer mistakes, if any at all. Is the 2.5-3% savings worth it? We suggest searching and weighing the pros and cons before making this decision, thinking you will save.
During the decision process, you want to make sure the reasons for selling your Olathe. Kansas home are beneficial. Many people move to save money, finding out that close to 15% of their home sale goes to moving costs, closing costs and the agent (or marketing for FSBO). Speaking to an accountant is also beneficial to protect yourself against any tax consequences.
Once you’ve made the decision, you will then Prepare to Sell, Set a Price, Accept an Offer, Close the Sale,
and then Prepare to Move.
It is now time to look through the eyes of the buyer, transferring your Olathe home of memories into a dream house for someone else. Decide whether you want to hire an Olathe agent to handle the sale, then do whatever necessary to get your home in it’s best possible condition.
Take the initiative and get a pre-sale inspection, to prevent costly surprises from the buyer's inspector.
Inspections usually cost between $200 to $400. If major damages are discovered, your decision to sell or at
least the price at which you sell may be altered.
Kansas require sellers and their agents to disclose issues that may affect a buyer's decision to
purchase your Olathe home. This is a touchy topic, so speak with your agent to make sure you understand what you need to disclose, what repairs need to be made, or what problems can be back-ended by adjusting your
asking price.
This is not the time to undertake major improvements. It is generally wiser to make only necessary repairs and
cosmetic improvements that will enhance your Olathe home's saleability.
Your taste may appeal to you, but may turn off the buyer. Decorate the home with neutral tones that will add
charm. Consider replacing out-of-date carpeting, painting odd-colored rooms, and polishing your home's
appearance. You may also want to kennel your pet during this time, and hire extra cleaning help while your
house is on the market, especially if an odor exits throughout the home. A good agent can make recommendations on companies that can assist you in preparing your Olathe home for the market.
Deferred maintenance and out of date carpeting may seem like a inconvenience. If undone, Olathe buyers will typically deduct 3 times the value of the repairs from the asking price on a real estate contract.
Set the Price of Your Olathe, KS. Home
Your Olathe home's value is ultimately what a buyer is willing to pay at any given time. It’s dramatically affected by the strength of the market: supply verses demand. If you want to sell quickly, or you are in a buyer's market like many areas and price ranges are experiencing in Olathe right now, you may decide to set your price lower than market value. On the other hand, if you're in a seller's market like some of the lower price ranges are experiencing where multiple offers are common, you may want to set your price higher than market value.
Use an Agent to Set the Price of Your Olathe, Kansas Home
If you plan to work with an Olathe listing agent, chose one familiar with your area that has a track record. A good agent will provide an honest assessment of your home's value. When deciding on an agent and sales plan, consider the current market and your home's saleable assets as well. Do not make your decision based on fluff and overhype from an inexperienced real estate agent. The fluff and overhype will benefit the agent by attracting buyers and hurt you by costing money in the end. Choosing an agent because they have a magic eight ball and the tell you what you want to hear is not a good course of action. Olathe real estate agents can't actually see in the future, good ones though have great marketing that can get you better results.
Comparative Market Analysis (CMA) - What is a CMA?
A comparative market analysis should take into account repairs, improvements, and annual costs (such as
property taxes) of your home, in addition to its size, features, and amenities. Expect to get an analysis of
recently comparable homes sold in your Olathe neighborhood, as well as a list of equivalent Olathe homes currently for sale. When you receive the analysis, break down the home comparisons to square footage. It will allow you to
analyze how accurate the CMA estimate is.
One Step Further to Help Establish the List Price of Your Olathe, KS. Home
If you want confirmation of the list price you have in mind, get a pre-sale appraisal. Appraisers use comparable
sales in addition to other information to make their determinations. The appraisal will cost between $200 to
$350 dollars.
Accepting an Offer on Your Olathe, KS. Home
In most cases, you will wait anywhere from 30 to 90 days for an offer, depending on the market and location of
your Olathe home. This can be an emotional process, especially if offers come in far below your list price, or your
home has been on the market for several months. This is why obtaining an experienced Olathe agent is essential, so you know what to anticipate and can attack the market accordingly.
Never rush. Take the time needed to make an appropriate decision and never jump at initial offers. Consider
all offers carefully, and make sure that the terms are as favorable to you as they are to the buyer. Never
accept an offer on the phone or by email. Contact your agent and meet in person. This rule will prevent you from
emotionally reacting. Sometimes buyers fish to see how low the seller will go.
Before you list your Olathe home, decide on the lowest acceptable offer. Keep this number to yourself; share
with your seller's agent but DO NOT share with anyone else.
Always assume interested parties are being represented by a buyer's agent. Sharing information with the wrong person may hurt you when it comes time to negotiating an offer.
Make sure that everything is in writing. This is for your protection and the buyer's. Documenting the process
helps avoid confusion and potential legal problems down the road. In most states, land transitions and their
details need to be in writing to be valid. If there is anything in your Olathe home that you want to keep, please share with your agent and make sure it is spelled out in writing on the contract.
The majority of the time, you’ll want to counteroffer. Someone purchasing a home will almost always start out
on the low side, so take this into consideration. Using an agent during this process will be an advantage, as
they are use to this process.
Closing the Sale of Your Olathe Home
You have identified the buyer. Now the buyer is busy with financing; until the sale closes, you are responsible
for keeping your property in the same condition as when the buyer saw it last. The closing date should be
clearly specified in your sales contract, which should include deadlines for the buyer to sign off on
contingencies. Make sure the buyer meets any deadlines you've set.
Be ready to deal with any problems that may crop up. For example:
Unsatisfactory home inspection - If the fix is major, you may want to split the cost of the repair with the buyer,
or give the buyer a cash credit at closing to cover the repair. If the fix is minor, or you are selling in an active
market, your sale might go through without any concessions on your part.
Preventive measure - Make sure that your sales contract is specific in its inspection contingency and
doesn't allow for the entire transaction to be renegotiated on the basis of the inspection.
Low appraisal - Your deal could fall through if the buyer's appraisal comes in lower than the agreed-upon sales
price and the lender refuses to issue a mortgage. Ask for another appraisal if you think the buyer's appraisal
was wrong, or renegotiate your price. Another option is to offer seller financing for the dollar difference. Typically, when Olathe sellers try to sell their homes for higher than comparable homes a low appraisal will result. Stick to the pricing of comparable homes and don't get emotional.
Preventive measure - Give the appraiser the most recent comparable sales from your neighborhood,
and make sure your home is in top condition.
Cloud on the title - Title problems can take several forms, including unsatisfied liens against your property,
delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any
liens or delinquent taxes. Title companies are used to dealing with encroachment issues, which may be
resolved with some kind of insurance policy.
Preventive measure - Check your title before you sell and make sure it is clear. A preliminary title policy will typically prevent title problems.
Buyer's remorse - Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the
consequences. Try to work with the buyer's agent to determine the problem. You may be able to suggest a
solution that reassures the buyer and rescues the deal. If you are not able to rescue the deal, you may be able to keep the buyer's deposit. That is why real estate contracts have earnest deposit.
Preventive measure - Learn all you can about the buyer's motivation before you accept an offer. Also,
be sure the sales contract allows you to keep the security deposit.
Preparing to Move
Once you've sold your Olathe home, you can proceed with your move and tie up loose ends.
Create a file in which to keep all closing and settlement papers: include receipts for any home improvements
you made while you owned the house. Even though it's unlikely you will have to pay capital gains tax, you will
need these figures for your next tax return.
If you are planning to buy another home, decide how much you need for a down payment and moving costs. If
you made a profit on your home sale, it may be wise to make a minimal down payment on your next home,
and invest the rest. This will depend on your tax situation and how the numbers evolve. Consult your financial
advisor. If you aren't buying another home right away, you may want to opt for a combination of long-term and
short-term savings and investment plans.
Make sure that your sales proceeds are in the right place when you issue checks at closing. Do a walk-through
of the property right before closing to avoid last-minute surprises.
Avoid getting caught by late payment fees: Before you move, send change-of-address notices to creditors,
professional associations, and publications to which you subscribe.
If you are closing your sale and purchasing a second home simultaneously, it's important to make sure your
utilities are switched off at your previous address and switched on at your new address around the closing
date. Typically an overlap is suggested to prevent utilities from accidentally getting turned off at your old home.