Seller’s Guide

PROCESS

How do I sell a house?

To sell a house in Illinois, most people find a real estate agent that they want to work with by referral from family or friends, or people find an agent from an Internet search where others have rated the experience with the agent.  

 

Most agents work with a company that provides marketing services and other administrative support to the agent, as well as inclusion in professional networks and access to professional development.  Working with an agent from a company that you recognize and trust may give you more confidence in the agent’s reputation.

 

Most importantly, you should find an agent that you feel comfortable with and is trustworthy, who will answer your questions to your satisfaction, and give you confidence that your interests are well represented.

 

How do I sell my house fast?

Several factors influence how quickly you’ll be able to sell your home.  If you need to sell it within a week, then strategic pricing will be your best bet.  The trick is to price your home so that it’s a good deal, but not such a good deal that you’ve significantly underpriced the property.  The condition of your home, improvements, and amenities are other important factors that can affect a fast sale.

 

How long does it take to sell a house?

Once listed in Connect MLS and being advertised on the market, a home can be sold right away or it can take months to sell. There are few reasons why a home may take a while to close. First, the home is listed at a higher price, therefore there will be fewer buyers interested in viewing it. Second, improvements, age, and location are important factors in home selection. Lastly, curb appeal can contribute to longer months on the market if the landscaping, siding, and general condition of the home are not attractive. 

 

Can I sell my house without an inspection?

Yes, if the buyer waives their right to home inspection, the home can be sold as-is. It is up to the buyer to schedule the home inspection and decide based on the results if they would like to continue with the contract for purchase of the home. 

 

The buyer usually puts in an offer, contingent upon the results of a home inspection.  During the inspection, the home inspector looks for any material defects that will add extra cost to fix for a future buyer. A home could fail a home inspection if there are significant problems found with the structure and/or other dangerous conditions are found that would make the property unlivable or very expensive to remediate.

 

If you do not want to fix some or all of the issues listed and the contract is still in attorney review, the contract can be nullified and voided by the buyer and the escrow returned.  Or, if the buyer agrees to the seller not fixing some or all of the items, then the contract can move to the next stage in the closing process.

 

How soon can I sell my house after I’ve bought it?

Typically, the gain realized upon the sale of an individual’s “main home” qualifies for a complete or partial exclusion from federal income tax that releases the seller from liability for federal income tax on that gain. Ordinarily, to exclude the gain from the sale of a primary residence, the seller must have owned and lived in the property as the seller's “main home” for at least two years during the prior five-year period. (atgf.com)

 

What is the best time of year to sell a house?

Homes can be sold throughout the year at any given month, but during the spring month(s) and summer month(s), there is an increased interest for home purchases in Illinois, which is due to seasonalities, job transfers, new school year, warmer time to schedule movers and repairs if needed.

 

What is the worst time to sell a house?

During certain times out of the year, there is a decreased interest in home purchases due to seasonalities. In Illinois between “back to school” and end of September, there is a slow down in home closings. During the holiday season and time with families, people tend not to look for home purchases. After the first of the year since in Illinois the weather is very cold, that also causes some slowing on the home closing front.

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SELL BY OWNER v. AGENT

 

How do I sell a house myself?

Selling your home without a realtor can be a full time job. It takes time, marketing, expertise and analysis. If you are putting your home up for sale by owner, you will most likely list the home to connect MLS for a small fee without representation. No real estate license is needed for the seller to list their home for sale by owner, but this process can be difficult and complex. 

 

When a seller wants to put their home on the market in Illinois themselves as For Sale by Owner, here are the high-level step in the process: 

1. If your home has not been updated for a long time and your budget allows it, make the necessary repairs and renovations, get a fresh coat of paint in all the rooms, and maintain your landscaping.

2. Make sure your home is presentable and ready to be shown by eliminating clutter, packing most of your personal items, and keeping the home clean before and during the time that it's listed.

3. List your home by owner in a Multiple Listing Service (MLS) so that others will be able to find your home for sale.   An MLS system is a private database that real estate brokers use to share what listings they have available.  Depending on the service provider, individuals may also list their home in the system.  There is usually a fee to use this service.  MLS systems are often owned by local or national realtor associations, as well as by private companies.

4. Once listed in an MLS, you will start to show your home to the public.  This may be making appointments with real estate agents or individuals.  Customarily, the current occupants of the home are not at the property while a buyer’s agent shows it.  However, individuals viewing the property without the agent will need to be supervised by you or someone else.

5. After reviewing buyers’ offers and the buyer you’ve selected has been secured and all of the mortgage, inspections, and attorney reviews, you’ll be ready to close where you’ll hand over the keys to the new owner.

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The Home selling process in Illinois can be a difficult task if a homeowner does not know how to approach it. Entrusting your property with an experienced real estate professional makes the process easy and less stressful for you.  I will take you every step of the way from signing the listing contract through marketing, showing, and securing a buyer.  If you choose to work with me, I will handle all of the mechanics behind selling a home and can give you perspective and advice about the process based on my decades of experience, keeping you informed and in control of the process all along the way.  Partnering with the right agent, you'll hand over the keys to the new owner in short order, so you can focus on the next chapter of your life.

 

Why should real estate agents get a commission?

A real estate agent provides full service to a seller in marketing, securing a buyer, and closing their home. It requires a lot of time, expertise, and market knowledge.  An experienced real estate agent has the knowledge and experience to avoid costly mistakes and help you to sell your home at the best price.

 

What are typical agent fees?

Real estate services in Illinois can defer from location to location, but a typical full service agent’s fees are at 6%.

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TRANSACTIONS

Can a seller refuse to sell a house?

A seller can refuse to sell a home during the attorney review if the negotiations are not going in a desired direction (home inspection comes back with a list of items that the buyer wants fixed, but they are costly, etc.). The seller cannot refuse to sell a home based on a protected class by the Fairhousing in the State of Illinois. 

 

What’s included in the sale of a house? 

When you put your home on the market for sale, all attached items within the house are considered by a prospective buyer to be included in the sale of the home. In most cases those items are things such as blinds, appliances, refrigerator, and curtains. If the homeowner prefers certain fixtures/items not to be included in the sale of the home, those items must be listed prior to the buyer making an offer. That can be part of the listing sheet or the home brochure that the real estate agent has created for their client.

 

What is owner financing?

Owner Financing occurs when there is a prospective buyer, but that individual is not able to get a mortgage to buy the property.  You would sign an agreement with the buyer to sell the home with the seller financing the purchase and buyer making payments to the seller, typically as a rent-to-own contract.

 

What are the associated costs with selling a house?

Most of the transactional costs associated with selling a house are paid for by the buyer.  The seller will usually incur costs for professional services, such as landscaping, painting, and other repairs/upgrades to get the best price for the house.  A seller may want to order an appraisal for their home to determine the value of their property that a buyer’s lender would approve.  A seller will often hire an attorney to represent them during negotiations and to attend the closing.  If using a real estate agent, the seller will need to pay commission to the agent.  The buyer will typically pay for the home inspection, survey and lender appraisal. 

 

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VALUATION

What tips help sell a property?

When selling a home, the seller/homeowner will need to make sure that it is presentable, in order, not cluttered, and if necessary, staged. Home improvements do make a difference in the sale of a house and bring more attention from future buyers. A freshly painted home with newer flooring and updated amenities also contributes to more interest. Landscaping and curb appeal is very important since that is the first thing a buyer would see when viewing a home either online or in person. 

 

Do the kitchen and bathrooms sell a house?

Yes, updated kitchen and bathrooms are important when putting a home on the market. New appliances and updated cabinets in the kitchen would be the first thing a prospect buyer would look at. When it comes to bathrooms since those can be expensive when purchasing a home, a buyer would more likely lean towards a property that has been recently remodeled unless they are looking for a flip to buy low, renovate and sell high.

 

Do you lose money when you sell a house?

It will depend if the homeowner is upside down on their mortgage, has liens against their property or other outstanding balances. In the current environment, home prices are going up. If the owner has equity in the home and owes less than what the home is worth then the seller will have positive proceeds from the sale at closing and not lose money on the sale. 

 

How do I make money building and selling a house?

Most buyers today apply for a mortgage to purchase a home. During the duration of the loan, monthly payments must be made. Over the course of time of homeownership usually the value of the home goes up, and as the homeowner continues to pay their mortgage, they grow their equity in the property. Improvements, home additions, and building more expansions to the home add value as well. When it is time to sell the home, a fresh coat of paint throughout the home would make a difference, as well as, the necessary updates such as new fixtures, cabinets in the kitchen and bathrooms would make the home more attractive to property buyers. 

 

How do you sell a house in a bad neighborhood?

If the home is updated, freshly painted, and priced accordingly with the location of where the property is located, it may have faster turnaround than similar comparable homes in the same neighborhood. 

 

How much is a view worth when selling a house?

Curb appeal, landscaping and home exterior are the first things that a prospective buyer would see when starting to search for a property to purchase. Therefore, a view is worth what a buyer is willing to pay. It does add to the attractiveness of a home if there is a view that comes with the purchase in comparison with other similar homes in the area that do not have the same view.  Unless the view has changed since when you purchased the home, it is probably already built into the price.

 

What are the best selling features of a house?

At the end of the day, it all comes to what a buyer is looking for and what are their requirements for their home purchase. Some buyers put a lot of emphasis on kitchen and bathrooms and others do not. If at the end, it comes to 2 homes that are similarly priced but one has a bigger kitchen and bathrooms, the prospective buyer would most likely go with the bigger home. A pool is considered a home improvement, and it does add to the home value, but again it will need to be part of the homebuyer’s requirements since a pool can add to the annual cost of homeownership, and it does require maintenance and upkeep.

 

What can I do to sell a house that won’t sell?

When a home is sitting for an extended time on the market, there can be few things that can be done. First, a lower price would trigger a MLS status change and that would send an email notification to people that have home searches set up to receive and may want to schedule a new showing. Second, do some updating of the home and have new professional photos taken after the improvements have been completed. Third, keep the curb appeal, landscaping and exterior presentable, so it can attract more showings when people scout the property. 

 

What can you do to sell a house in a down market?

In a down market lowering the price can attract more buyers. If the home was priced above buyers’ price range, then it will not show in their home searches in connect MLS or other 3rd party home selling websites. Updating the home, keeping the curb appeal, landscaping and exterior can also contribute to attracting more buyers. 

 

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STAGING & REPAIRS

 

Can I sell my house if it’s not up to code or has work without a permit?

Your home can be put up for sale at any time, but building code violations and other health related home conditions such as asbestos and mold need to be addressed and properly mitigated prior to close of home. It is advisable to get those done prior to putting the home on the market. Any material defects that are known by the seller must be disclosed. An old fuse box can add on to the extra expense for a new buyer, therefore it is a good idea to update it ahead of time. During a home inspection, some foundation problems can be brought to the buyer’s attention, also a costly fix.  So, addressing those issues are important for a smooth home transaction. 

 

What are the best things to update before selling a house to get the most value and best price?

When selling in today’s home market, painting the interior an appealing color is important to attract home buyers. First impressions are powerful and doing your homework ahead of time could bring faster results by completing home improvements, updating the light fixtures, and adding ceiling fans in the home. Curb appeal is major in home selling, so nice looking landscaping and a manicured lawn could capture future purchasers' attention. 

 

Are pictures important when selling a house?

An online presence when selling a home is a significant selling feature in today’s real estate market. Being online allows a prospective buyer to view a home without being physically at the location, and the buyer can decide to schedule a showing to take a closer look.  Additionally, your home can be viewed by more people than could be without an online presence.  Professionals know how to take pictures that show your home at its best.  That is why professionally created photos and a video tour of your property is critical.

 

Should I stage my house?

Staging your home can help a prospective buyer see themselves living there, but it is not essential if your house is empty.  However, if you are still living in the home, then too much clutter and unnecessary extras take away from home appeal. Start packing your personal items, family photos, knick-knacks, and keep the things clean, neat, and tidy.  This can help the buyer envision themselves living in the space and reassure them that the home has been well cared for by you.

 

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MORTGAGE & FINANCING

 

Can I sell my house if I still owe money on it?

During the home selling process, the buyer will need to secure a mortgage with a financial institution. At the closing, the seller’s mortgage will be paid off.  If you owe less on the mortgage than what you sell the house for, then you will receive the difference between the selling price and the remaining balance of your mortgage, less closing costs and realtor commissions.  If you owe more money on the mortgage than what you can sell the house for, then you will owe the difference to your lender.

 

Can I stop paying a mortgage when selling a house?

No. Until the deed is transferred to the new buyer, your mortgage payments continue. If a seller stops paying the mortgage, the lender will start the process of regaining control of the property, such as a short-sale or foreclosure, which will complicate and delay selling your home. 

 

What happens to the money when you sell?

During the home selling process, the buyer if not paying in cash, will need to secure a mortgage with a financial institution. If appraisal, home inspection, and attorney review goes smoothly and without complications, at closing, the title company will assist in the seller's outstanding mortgage balance to be paid off and any equity accumulated during the time that the seller was holding the loan will be given to the seller.