Do you think it’s time to move on and sell your home? From getting your home ready to sell to setting a good asking price, here are some general tips for selling homes in Placentia, CA.
American homeowners hold onto their homes for eight to 13 years on average, according to the National Association of Realtors (NAR). The duration of homeownership has increased by three years since 2008. The amount of time you spend in your home depends on several factors, such as your location, relationships, career, financial situation, and perhaps most importantly, equity.
Equity refers to how much you own outright – this amount can be calculated by deducting the principal you still owe on your mortgage from the current value of your home. Equity increases with each mortgage payment you make. It also increases when your home appreciates in value.
In general, you’ll want to build as much equity as possible before selling your home since you will be expected to pay off the rest of the mortgage when closing a sale. The more equity you build, the more you’ll get to keep from the proceeds of the sale.
Most real estate experts recommend holding onto your home for at least five years. This is how long it takes for the average homeowner to recoup mortgage interest rates and closing costs. The longer you hold into your home, the more time you can spend building equity. If the time is right, then there are many ways to sell homes in Placentia, CA for top dollar.
However, it’s not always possible to wait to sell your home — life events, new opportunities, and medical emergencies may require you to sell now. In this case, you can still increase the likelihood of a quick and profitable sale with some simple tips.
What to know about the Placentia, CA real estate market
Placentia is a prosperous city in Orange County. The population increased from 51,818 to 52,049 between 2019 and 2020, according to Data USA. The median household income also increased by 5.17% from $95,757 to $100,707 during the same time period. Population and income growth often help create demand for housing.
The homeownership rate in 2018 was 64.9%, which is 12.5% higher than the county-wide homeownership rate of 52.4%, according to the Southern California Association of Governments (SCAG). A higher rate of homeownership typically brings more stability to the community.
The median home listing price is $899,000, or $543 per square foot, as of May 2023. The median sales price for homes in Placentia, CA is $910,000 with a sale-to-list price ratio of 101.24%, according to Realtor.com. This means that the average usually sells for 1.24% above asking price. On average, homes stay on the market for 28 days – much shorter compared to the national average of 43 days in May 2023.
Some buyers are willing to pay a premium for the most desirable homes in Placentia, CA. Known for its laid-back atmosphere and close-knit community, the city offers countless recreational opportunities. Kraemer Memorial Park and Tri-City Regional Park feature playgrounds, walking trails, and picnic shelters while the Placentia Champions Sports Complex provides ready access to basketball courts, baseball diamonds, and soccer fields. Placentia’s relaxed lifestyle and first-rate amenities appeal to buyers in search of a place to set down roots.
TIPS FOR SELLING YOUR HOME IN PLACENTIA, CA
No matter the temperature of the market, preparation is the key to a successful home sale. Here are some things to take into consideration when getting ready to sell in Placentia.
General tips for selling your home
Know your motivation for selling – When developing a strategy for the sale of your home, it’s important to know your reasons for selling. This will help you set clear goals. Are you relocating to a new city for work or retirement? Are you in a hurry to finalize the sale? Ultimately, your home selling strategy should address your unique personal circumstances and financial needs. Knowing what motivates you as a seller will also help guide your decisions when vetting offers and negotiating with prospective buyers.
Prepare your home for the sale – Make basic repairs and improvements before listing your home. These typically include general cleaning, decluttering, painting the walls, and making sure that all locks, switches, fixtures, and water and electrical systems are in working order.
If you’ve kept up with home maintenance over the years, then getting your home ready to sell should be fairly easy. There will be a lot of work to do if the home shows obvious signs of neglect and disrepair. If you don’t have the time or resources to make improvements, you can sell the home as-is. This means that you’re selling the home in its present condition without further repairs or significant changes.
Selling your home as-is will help you save time and effort during the sale. However, be prepared to lose money — the US News & World Report estimates that homes that need work typically sell 15% to 20% below market value and often stay on the market for longer periods. It’s also important to know that selling as-is doesn’t take away buyers’ legal rights. As the seller, you will still be expected to disclose all known defects.
Whether you decide to make repairs or sell as-is depends on your motivations and goals. It is necessary to calculate the cost of the repairs and upgrades against the home’s market value after the improvements have been paid for. In any case, keeping your home in excellent condition will help you attract better offers as well as give you more leverage during negotiations.
Set a budget – Many homeowners overlook the costs of selling property. In addition to the cost of repairs and improvements, sellers should be aware of their tax obligations, utility bills, and closing costs. Bankrate recommends setting aside about 5% of the sale price to cover real estate commissions, attorney fees, transfer taxes, and other administrative expenses. If you’re paying off the rest of your mortgage, your lender may also charge certain fees.
Price your home correctly – When setting the asking price for your home, it’s common practice to come up with a price range based on comparable properties and recent sales in the area. No matter how much investment you’ve made in your home over the years, it’s important to price your home correctly based on relevant real estate data and information.
This will help you attract better offers since most buyers know a good price when they see one. Today’s homebuyers have access to more data than ever and often have the means to compare home prices online before deciding to tour a property.
Pricing your home requires a balanced view of the transaction. If your home is priced too high, you may be less likely to receive multiple offers. You may even be forced to reduce the asking price if the home languishes on the market. However, if you price it too low, you will profit less from the sale.
Complete the seller’s disclosure form – Section 1102 of the California Civil Code requires sellers in the state to fill out a seller’s disclosure form. This is a legal document that includes an itemized list of everything you know about the property you’re selling. These typically cover previous repairs, hazardous materials, major damage, and more.
As a seller, you are legally obligated to inform prospective buyers of the material facts of your home, particularly those that could potentially lower the material value of the property and affect their decision to go through with the transaction. Buyers can either cancel a purchase or sue the seller after closing if they fail to disclose certain information or misrepresent facts. To protect yourself from legal action, it’s crucial to fill out the seller’s form to the best of your knowledge.
Invest in marketing collateral – Once you’re ready to sell, you can start developing marketing collateral such as real estate photos, videos, virtual tours, property descriptions, and more. It’s worth investing in high-quality images and detailed descriptions to generate interest in your home. 97% of buyers use the internet when searching for a suitable home and 76% use a mobile device during the property search, according to NAR.
Get the word out on your listing – After listing your home, let your friends, family, and colleagues know that your home is for sale. You can reach out through email, social media, and online groups. This will help you gain exposure for your listing. Working with a real estate agent will also help you gain access to the Multiple Listing Service (MLS) and attract qualified buyers outside of your personal and professional network.
Evaluate offers – If you’ve marketed your home effectively, you’ll start receiving offers from interested buyers. Dealing with multiple offers can be overwhelming. However, it’s important to revisit your reasons for selling so that you can evaluate offers based on your goals and intentions. It’s also important to keep in mind that the highest offer isn’t always the best offer. While it’s important to make a profit from the sale, you may want to consider offers from buyers who are willing to waive certain contingencies if you’re in a hurry to close the deal.
Negotiate offers – When you receive an offer, you can decide to accept or counter it. You’ll go back and forth with the buyer until you reach an agreement. In some cases, the deal may fall through and you’ll have to start over. To ensure that the transaction goes smoothly, it’s important to remain objective during negotiations. Working with an experienced real estate agent will help you come up with an effective negotiation strategy. A skilled agent will help you secure the best possible terms for the sale.
Tie up loose ends – As you work towards closing the sale, you may also want to take the time to say goodbye to your home and your neighbors. This is especially important for homeowners who have lived on the property for many years. Each seller will have their own parting rituals, whether it’s throwing a small party with the neighbors or recalling all of the fond memories they have of the home.
Other tips for selling your home
Get professional cleaning. If you’re putting your home on the market, it must be clean and presentable at all times. This will help make a positive first impression on prospective buyers. But if you’re also dealing with the demands of your career and family, you may not have the time or energy to clean. This is especially true for larger properties with multiple structures and plenty of open space.
Consider hiring a professional cleaning service to help tidy up your home. Some key areas to focus on include:
- Front yard and driveway
- Exterior walls, windows, and doors
- Floors and corners where dust and grime tend to build up
- Basement and garage
- Bathroom counters, toilets, tubs and showers
- Kitchen countertops, cabinets, and appliances
- Shelves, cupboards, and closets
Depersonalize your home. Prepare the home for its new owners by removing your personal effects, family photos, children’s drawings, and any items that mark the home as your space. Some experts also recommend removing any political and religious items. This will help create a neutral space and make your home more universally appealing.
Stage the property. Home staging is the practice of presenting your home in the best light through tasteful decor and artwork. This enables prospective buyers to see the home’s full potential and visualize themselves living in it. According to NAR, 81% of agents believe that home staging helps their clients envision any given property as a future home. 20% also say that staging can potentially raise the dollar value offered by 1% to 5% compared to similar homes that have not been staged.
HOME STAGING TRENDS FOR 2023
When selling your home, you can decide to stage it yourself or work with a professional staging company. You can also ask your real estate agent for feedback and advice. In any case, here are some of this year’s home staging trends to give you some ideas.
- Accent lighting fixtures can help set the tone and draw attention to your home’s best features. Accent lighting can include anything from lavish chandeliers to contemporary lighting solutions that double as artwork and serve as conversation pieces. Feel free to experiment with pendant lighting over the dining table or wall sconces to call attention to stylish wallpaper.
- Accent color – While it’s common to use neutral colors when staging a home, 2023 is all about adding a pop of color against all-white or all-beige home decor. This year, home staging experts are making better use of earth tones and warm neutrals with pops of bright shades or rich, dark accents for added depth.
- Accent walls – It’s becoming more common for staging experts to add accent walls with molding, tiles, and graphic designs and patterns to add visual interest to the space.
- Black or dark hardware with deep tones and textures can help add mystery while defining the borders or designated areas of the home’s interior.
THE BENEFITS OF HIRING AN AGENT
To help ensure a smooth and pleasant transaction, work with a real estate agent who specializes in selling homes in Placentia, CA. A skilled and experienced agent will help you understand all of your obligations as a seller, such as seller’s disclosures, taxes, and more. They will also provide valuable information and advice on pricing, marketing, and negotiations. Lastly, they will offer much-needed guidance and support if you encounter challenges during the selling process.
How to choose the right agent
When selling a home in today’s market, choosing the right agent is half the battle. When looking for an agent, schedule a consultation with several professionals that serve the Placentia area. During the consultation, ask questions that will help you assess their qualifications and experience level.
This would also be a good opportunity to get a feel for their personality and communication style. Keep in mind that you’re not just hiring an agent – you’re looking for a real estate partner with whom you’ll have to work closely with over the course of several weeks or months.
SELL YOUR HOME IN PLACENTIA, CA
If you’re ready to sell your home in Placentia, get in touch with our real estate agents at IMPACT Properties. We offer exceptional service and advice to help sellers secure the best price and terms for their home.