Getting Started
Looking to sell your home? At Big T Texas Realty Group, we have a dedicated team to help you every step of the way. The outline below will help you determine your net equity and market value of your home, then let our experienced realtors guide you through the process. With our seller's guide and support, you can confidently and successfully sell your home.
Determine Current Value Of Your Home
Knowing your financial position is paramount to planning your next home purchase or whichever next phase of life you may embark upon. The steps outlined below will provide a framework for you to follow to gain an understanding of where you stand financially with the potential sale of your home.
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Cost Of Selling: Know Before You List. This is a question many hopeful sellers don’t consider… but it’s important!
Many people spend as much as 10% of the sale price on selling their homes. This includes realtor commission and additional costs like repair costs, housing overlap costs, closing costs, seller concessions, and more. Knowing how much all this could total will help you understand if you have the budget and willingness to list.
A Comparative Market Analysis (CMA) To gain a clear picture of your home’s net equity, you will want to establish a value by comparing your home to other similar homes that have sold in the last 90-180 days. A Comparative Market Analysis is used by real estate professionals to help establish a sale’s price for your home. If you have access to a realtor, they can run a CMA for your home or with a little due diligence, you can find this information on your own by researching sold homes in your neighborhood that are similar to yours in style and amenities. Another option would be to pay for an appraisal through a certified appraisal company and could be used in supporting your list price should you decide to sell.
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Understanding Your Net Equity. Simply stated, the amount of net equity in your home is what you take away from the transaction after paying fees such as a mortgage balance, realtor fees (if applicable), repairs, closing costs, and any other outstanding obligations required to sell your home.
Calculating Net Equity
Your realtor can work with you to provide a net sheet detailing all exenses so you can see your true net equity
Let's see what this may look like:
Home Sale Price
Mortgage Balance
Realtor Fees (6%)
Appraisal
Repairs
Closing Costs
Net Equity:
$400,000
255,000
24,000
450
3,500
2,700
$ 114,350
Try out this net sheet calculator
Establish A Sales Price
Price To Sell. Selling a home is one of the largest financial transactions we perform in our lifetime. Owning a home is an investment and as such, we want to ensure we maximize our return when it is time to sell. When you are finished reading this section, you will have a better understanding of market value, avoiding pitfalls, and establishing a price that is both competitive with the market while returning the highest value for your property.
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Determine Your Home’s True Market Value. You might think you know what the best price is for your home, but in a slow or shifting market, price points vary. Before setting a price, you should:
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Study recent home sales in your neighborhood
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Consider the condition of your home
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Stay up to date on real estate news
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Get a second opinion from a agent
Since overly-inflated pricing is one of the top reasons homes fail to sell, it’s important to be realistic about the price within the current market conditions. Let’s look more closely to what the market value is and is not.
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Tip: As a seller, your primary goal is to sell your home as quickly as possible and at the best price. However, a significant factor in making a quick sale is ensuring your house is appropriately priced for the market.
Market Value
The Market Value Of Your Home Is Not:
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What you have in it
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‘What you need to get out of it
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What it is appraised for
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What you heard your neighbor’s house sold for
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What the tax office says it is worth
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Based on memories or treasures
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Based on the price of homes where you are moving
As A Seller You Control:
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The price you ask
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Condition of the property
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Access to the property
The Market Value Of Your Home Is Based On:
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Today’s market
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Today’s competition
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Today’s financing
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Today’s economic conditions
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The buyer’s perception of the property condition
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Location
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Normal market time
As A Seller You Do Not Control:
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Market condition
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The motivation of the competition
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Buyer’s perception of value
Prepare Your Home For Sale
Preparing your home for sale will increase it's value for the least amount of money. The old adage, first impressions matter certainly comes into play here and will help make prospective buyers fall in love with your home the minute they set eyes on it!
Find more tips on staging the interior of your home and increasing curb appeal in the seller guide
Interior focal points
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Paint: Perform Touch-Ups
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Energy: Make it Efficient
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Kitchen: Chef-Ready
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Bathrooms: Sparkle & Shine
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Clean lines: Sort & Declutter
Exterior focal points
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Refresh the Front Door
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Add Potted Plants to Entryway
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Do a Power Wash of Driveway
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Freshen Outdoor Furniture
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Add Fresh Mulch
View Seller's Guide
Negotiating And Accepting An Offer
You received an offer! Pat yourself on the back. You have worked hard up to this point to secure the best offer on your home. But it may not be as clear-cut as that. What if the offer it is not what you expected?
Negotiations are typically part of a home buying or home selling process. Once you start getting offers, your realtor will review and advise to help you make the most informed decision and response to the potential buyer.
Tip: Be responsive and attentive to buyers. Again, expect negotiations and bargains to be discussed. This is a normal part of property sales.
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Before negotiations, you should consider some of these scenarios:
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Your minimum selling price
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Renegotiating if a buyer surprises you with hefty repair demands
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Whether or not you’re willing to sell to buyers who aren’t pre-approved
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How much you’re willing to sell for if a buyer offers you cash
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What you’ll do if you have very few offers
How to come to the table with winning arguments to score the best deal:
Home Inspection
Another thing you can expect is requests for home inspections before closing. It’s very rare a buyer will close without first going through a home inspection. Proper inspections can make the closing process smoother, but sometimes a buyer will change their mind afterward.
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In the terms of a contract, the buyer most likely will secure an option period. This allows ample time to have the home inspected. Inspections can turn up multiple findings whether it is an older or new home.
How to handle home inspections
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Inspector Contact Info. Our realtors are present and available during the home inspection process. This ensures if there are any questions the inspector may have then there is a point of contact for them to communicate with. While we could list many examples, one that comes to the forefront is the inspection of pool equipment. Pool operation can be simple and complex depending on features it may have. If the inspector cannot test as a result of not having the instructions or information, they will leave a comment on the report that this particular item/function was not observed/tested. This can leave buyers in a grey area and they may want to have it inspected again which could lead to the buyers negotiating more time in the contract.
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Leave The House. This is a time for the inspector to have full access to the home to carry out the home inspection. Make sure you leave all areas accessible and coordinate with your realtor any special notes for the inspector should they be required.
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Inspection Report. The report is in. The buyers have reviewed and have come back and asked for repairs to be made or concessions to be given. This may place you back to the previous step of negotiations. Remember, you are never obligated to fix, replace, or provide a concession. This is strictly up to you. Keep in mind however, a buyer could walk away from the deal. Any home will have some issue or another so try not to get emotional. Review and respond accordingly. Try to work with the buyer and do what is reasonable.
Appraisal
A home appraisal is usually a required part of the home buying process and are performed by an objective and impartial professional. The appraiser will thoroughly assesses a home that is up for sale. The two goals are to check the quality of the home and assess its value. Most commonly, a lender will oversee this process and use a third-party appraisal management company.
Appraisal Process
Home appraisals are important and there are a few steps to get through one:
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​​Lender orders appraisal
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Licensed appraiser is hired
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Borrower pays for appraisal (typically included in closing)
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Home value is determined
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Home value report is issued
Tips for home appraisals
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UNDERSTAND WHAT FEATURES CAN CHANGE THE HOME VALUE
For instance, a home appraiser will take square footage, utilities, renovations and
even the age of home into account before making their declaration. -
KNOW THE VALUE OF SIMILAR HOMES
This should come into play whether you are listing or looking. Comps factor into
a home appraisal. -
IT WILL TAKE AT LEAST A WEEK
The availability of people, permits and more could impact the turnaround time
for a home appraisal.
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KNOW YOUR OPTIONS
Home appraisals may come in higher or lower than listing price. You should
discuss your options with a real estate attorney or a realtor to know what your negotiation and price difference options are. -
ORDERING INDEPENDENT APPRAISALS
Not happy with the results? Question the outcome of an appraisal? Buyers or
sellers can ask for a re-evaluation of an appraisal or order an independent
appraisal.
What is Escrow?
Part 1
What is Escrow?
Part 2
Title Company
Escrow Process: Once a purchase agreement is signed by all necessary parties, the agent representing the party who will pay the fee selects an escrow holder and the buyer's earnest deposit and contract are submitted to the escrow holder. From this point, the escrow holder will follow the mutual written instructions of the buyer and seller, maintaining a neutral stance to ensure that neither party has an unfair advantage over the other. The escrow holder will also work with the buyer's new lender, the seller's existing lender, and both parties' agents.
Title Insurance: Title insurance provides coverage for certain losses due to defects in the title and insures buyers against the risk that they did not acquire marketable title from the seller. You will pay for your owner's title policy just once, at the close of escrow.
What is Title Insurance?
Types of Title Insurance Policies
Closing Process
Your lender will provide you with a few disclosures to help you understand the loan costs and settlement service fees. Take time to familiarize yourself with the information detailed on these important forms.
The government requires that you have at least three days to review these forms before you close. Coordinate with your lender if you have any questions about the loan or related fees. Any major changes to the mortgage, like the loan type or the interest rate, will trigger a new set of disclosures and a new three-day waiting period.
Understanding the Closing Process
Closing Forms
Let's take a closer look at the loan estimate and closing disclosure forms.
Loan Estimate
Closing Disclosure
Selling Your Home
We know selling a home can be a stressful process. Our realtors want to ensure a stress-free and seamless transaction. We are in this with you every step of the way!
Seller Guide
Use our online booklet or request a hard copy to reference during the home selling process. We are happy to answer any questions you may have and refer you to top trusted companies throughout the DFW and surrounding areas.
View Seller's Guide
Get in Touch/Schedule Showing
101 North Greenville Ave #304
Allen, Texas 75002
817-733-3809