Why is it possible to sell a house yourself faster than through an agency? How to correctly calculate the cost and prepare a house for sale? How to place an effective ad and how to communicate with buyers to increase the likelihood of a sale? I will answer these and other questions in detail below. In short, to sell a house you need: Prepare documents; Prepare the house for sale; Place a selling ad; Find a buyer and take a deposit from him; Make a deal in Rosreestr and pay tax.
In short, to sell a house you need: Prepare documents; Prepare the house for sale; Place a selling ad; Find a buyer and take a deposit from him; Make a deal in Rosreestr and pay tax.
- Prepare documents;
- Prepare the house for sale;
- Place a selling ad;
- Find a buyer and take a deposit from him;
- Make a deal in Rosreestr and pay tax.
Which is more profitable: selling a house yourself or through an agency
Over the past 10 years, so many estate agents have emerged that it has become impossible to count them. There are more than 2 thousand of them in Moscow alone! Even a professional holiday appeared on the initiative of the Moscow guild – the day of the realtor (December 19).
Let’s say you, on the advice of friends or advertising on the Internet, chose an agency, entered into an agreement with it, and waited for a buyer to be brought to you. How long will you wait last? Month? Two? Maybe six months? It will be in vain to look for terms of sale in the contract – most likely they are vague or drawn up with large legal reservations. Of course, you can terminate the contract due to the protracted deadlines, but how to do it officially if they are not spelled out in the contract? Most likely – nothing.
Tip 1 – Don’t expect to sell your home through a real estate agency faster than selling it yourself. People are more likely to buy property directly from the owner.
In addition, there is a brilliant legal trick – “agreeing on the value of the object to be sold.” That is, the value of your house will be determined by an allegedly independent appraiser, who, most likely, will also be an employee of the agency. Such an assessed value would be clearly below market value. We will return to the question of how to independently evaluate a house before the sale.
Also, realtors can “leverage” – that is, in addition to the commission from the seller (1-5% of the transaction amount), agencies (especially top ones) like to take a hidden commission from the buyer, thereby increasing the cost of your property and, as a result, the timing …
And the last thing – when you come to a real estate agency, you do not know who will work on your deal, and if you do, no one will tell you – this is an experienced specialist or an intern who will learn the art of selling at your facility.
Tip 2 – selling a house on your own is more profitable than selling a house through an agency for at least 50 thousand rubles (this is the commission of the most modest agency).
What documents are needed when selling a house Start selling your home by preparing the documents:
- Cadastral passport for the house and land;
- Notarized consent of the spouse to sell the house;
- House commissioning act;
- Certificate from the Federal Tax Service on the absence of property tax arrears;
- Certificate from the Management Company (ZhEK) about the absence of debts for utility bills;
- Building permit and house design (if any);
- Extract from the USRN.
Although the document is paid, it is very useful in the sale process. For example, it helps to document the buyer’s right to own the house, as well as to convince the buyer that there are no arrests, encumbrances, and other problems with the house and land.
In other words: an official extract from Rosreestr helps in making a purchase decision. Please note that Rosreestr sends extracts from the USRN within 3 days (there are delays). If you want to get information faster, I recommend ordering extracts directly through the Rosreestr API – this way you will receive a document within a day. The cost is the same – 250 rubles, the official data is from the USRN Rosreestr and is confirmed by the electronic digital signature of the registrar (EDS).
How to prepare a house for sale?
Preparing your home can also be a fun experience that will open up a designer, an architect, and a jack of all trades in you. Make your home attractive and stand out from the rest with some unique touch. This can be a weather vane on the roof, a beautiful wrought-iron gate, a freshly painted fence, a cozy bench, or a trendy letterbox next to the entrance. There must be cleanliness and neatness in the house and near the house.
A few simple tips:
Before selling a house, I recommend making a small cosmetic repair: get rid of cracks, stains, chips, scratches, glue the wallpaper, whitewash the ceilings, etc.
Decorate the most noticeable places in the house with bright curtains, a vase of flowers or a wall sconce;
Emphasize the positive aspects of rooms and spaces. For example, one is sunny, the other is cozy, the third is ideal for a library or study, if you move the table there and put several shelves;
See your own home through the eyes of a buyer.
Tip 3 – Psychologists say that people make a purchase decision in the first 15 seconds, so get the buyer interested on the way to the house.
How to calculate the optimal house value?
Appraising a home correctly before selling is half the battle. Overestimation of your real estate leads to a loss of time, and underestimation – deprives of money, which, as you know, does not happen much.
Tip 4 – Keep in mind that the value of your home is only determined by the standard of living around it. Expensive renovations, a beautiful garden or a swimming pool in your home are not decisive factors in the sale. In other words: the richer your neighbors, the more expensive your home.
There are two approaches to real estate valuation:
The cost approach, which consists in determining the costs of purchasing the same land plot and building a similar house, taking into account its wear and tear;
Comparative, where you compare your home to similar homes for sale. The more comparisons you find, the more accurately you will be able to determine the market price.
Tip 5 – in the process of communicating with the buyer, find out the true reasons for the purchase and focus on them. If the buyer loves a bath, do not forget to show him the place where the bath can be built.
Factors affecting the value of the house (by importance)
- Legal purity (there are all the necessary documents, the house is free from the rights of third parties, it is not mortgaged to anyone and does not appear under arrest);
- The area of residence (the richer your neighbors – the more expensive your home);
- The location of the house (ecology, landscape, the beginning of the street or the end, the proximity of a reservoir or park, distance from the highway);
- Technical condition of the house (year of construction, deterioration, appearance);
- Engineering networks (heating, electricity, gas, water supply, sewerage, internet);
- Infrastructure around the house (driveways, shops, school, kindergarten, hospital);
- Readiness for a deal (no one is registered in the house and no one lives).
Selling a home on your own is not only profitable, but also beneficial. Once you have gone through this “path”, you will forever consolidate the skills of the seller, which will definitely be useful to you in the future.
Extra Tip: Watch for global property price movements to sell your properties when they are expensive and buy back when properties are cheap. You cannot count on eternal growth.