When the time has come to sell your home, some prefer realtors, some may use iBuying, and others might choose to be an independent sellers. This is also known as a sale by owner, or FSBO. If you’re looking to sell your home on your own, there are a couple of important things you’ll need to know. Independent selling has its benefits, so to ensure you’re prepared, we’re going to go over what to do, what not to do, and everything in between.
How To Sell Your Colorado Home
- The very first step to selling your own home is to determine its market value. The value of your home will vary, depending on your location, the homes condition and the current status of the real estate market. By taking the time to do a little research, finding the value of your home can be fairly easy. If you’re not comfortable determining its value on your own, we recommend using an online automated valuation model. By entering in your home address, an accurate estimated value will be provided to you.
- Next, you’ll want to decide what you’re going to list your home for, now that you know what it is worth. This value, subtracted by taxes, fees, or your remaining mortgage, will give you an idea of what exactly you’ll receive at the end of your selling process. This can be one of the benefits of selling by owner; you get more say on what price works best for you.
- If you haven’t already started, cleaning out your home to prepare for showings will be the next step. You’ll need to get rid of extra clutter, unnecessary appliances or decoration, and anything that you don’t intend on bringing with you into your new home. Creating an environment that others can imagine themselves living in is the overall goal. It’s also important to make sure your home has gone under any repairs necessary. If you choose not to do repairs before putting your home up for sale, then you’ll want to make sure your prospective buyer understands their extent. Then you’ll also want to begin staging your home, which can be done by a professional or by yourself.
- The more people who know your home is for sale, the more likely you are to find a buyer. Put up a “for sale” sign, maybe even a simple ad in your local paper or magazine. In the Denver area, many types of media sources can prove to be an effective way to make sure people know your home is on the market. There are also many online outlets that charge just a small fee to provide your home sale with significant exposure.
- You’ve found a buyer, so now it’s time to come to an agreement with them. Once you’ve both compromised on all the final details, you can give yourself a pat on the back. You’ve officially sold your home by owner.
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Real Estate Lawyers
Selling a home is one of the more significant things people do, and many who sell their house by owner wonder if it is required to have a lawyer when doing so. The reality is that every state is different, and while an area such as Colorado doesn’t require it, it is often recommended. Lawyers can provide you with the professional advice for any legal questions that may arise during your selling process. In most cases, people are more comfortable using the assistance of an expert, but some find using a lawyer unnecessary. If you’re looking for a lawyer in the Colorado area, the real estate section of the Colorado Bar Association can help refer you to some.
Taxes on a Home Sale
In the state of Colorado, specifically the Denver area, someone who has lived in their home from 2 to 5 years prior to the sale will be exempt from federal income taxes up to $250,000. The terms on home-sale taxes differ, depending on the state you reside in and the overall amount your home sells for. More information regarding the taxes in your state can be found online.
Cost of Selling a Home
Anyone who decides to sell their home will have to spend different amounts on different things throughout the process. Each home sale has its own price, which depends on repairs, staging (unless you do so on your own), advertising your home sale, closing costs and other fees. In Colorado, repairs and staging can cost around 2-3% of your sale price. Buyer incentives and closing costs will be around 1-3% of your sale price. In some places, such as Denver, Colorado, the closing costs are paid for by the buyer. Plus, if the seller were to cancel their real estate contract, the buyers would be refunded. While each state varies, you must be prepared to spend some money to sell a home, in order to later gain some once it has sold.
The Market in Denver, Colorado
Recent studies show that the market in Denver Colorado is still considered a seller’s market, despite the fact it takes some time for homes to sell. Most homes only spend around a month on the market, but the buying market is competitive leaving the median price of a home sale to be $415,000 to $430,000.
Selling Your House As Is
Selling your home “as is” means selling it, or the appliances in it, in their current condition. In Colorado, selling your home “as is” means that the buyer has agreed to buying the home and the appliances in it while also acknowledging the fact there is no warranty or guarantee of its functionality. This can be an advantage for home-owners looking to get rid of their home quickly, for example. Or, for a seller looking to completely re-do the home and the appliances in the home either way, making their current conditions unimportant.
In the event you need to sell your home by yourself, we hope providing some information regarding its process and its legal requirements proves to be helpful. While everyone’s selling process can differ, the one you choose is ultimately up to you.
