Selling A House In Dothan: A Step By Step Guide For 2024
HIRING A LISTING AGENT TO SELL YOUR HOME IN DOTHAN
When putting your home on the market, you likely hope it will sell quickly. The speed at which your home sells depends on several factors, including how well you prepare it for the market, the price you set, and the marketing strategies used to attract buyers.
Homes that sell quickly often fetch a higher percentage of the list price. Buyers tend to make stronger offers when a home is new to the market, and a quick sale reduces the need for price reductions. Here’s a guide to what you should consider before selling your home, what to look for in a listing agent, steps to take for a fast sale, and what to expect once your property is listed.
We’ll look at key considerations for selling your Dothan home effectively.
- Should I Hire A Listing Agent?
- How To Sell My House In Dothan.
- What Should I Do Before I Contact An Agent?
- What Should I Look For When Hiring An Agent To Sell My Home?
- What Kind Of Commission Rates Should I Expect When Selling A Home In Dothan?
- When Is The Best Time To Sell My Home In Dothan?
- How To Price A Home To Sell In Dothan.
- Which Real Estate Company Sells The Most Homes?
- What Should I Do If I Can’t Sell My House?
- Can I Use Two Agents To Sell My Home?
- What’s The Next Step To Put My House On The Market?
Should I Hiring A listing Agent?
When you decide to sell your home, the first question to tackle is whether to hire a listing agent or go the for-sale-by-owner (FSBO) route. Your home is probably the biggest investment you’ll make in your lifetime, so it’s crucial to get the selling process right. Selling your home can be an enjoyable experience, but it can also become complicated, stressful, and time-consuming. Even small mistakes can lead to significant losses in equity.
Having an experienced advocate on your side can make a world of difference. While FSBO properties do exist, many don’t sell, and those that do often fetch lower prices than they should.
The True Cost Of FSBO
Selling a home without a real estate agent might seem like a good way to save money, but the reality is often different. The average “discount” of a FSBO property is much greater than the cost of hiring an experienced agent. According to The National Association of Realtors (NAR) Profile of Home Buyers and Sellers, FSBO homes generally sell for significantly less than agent-assisted homes. In fact, the 2023 version of the study shows that FSBO properties tend to sell for much lower prices, highlighting the value of having a professional on your side to navigate the complexities of the market and secure the best possible price for your home.
"FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $310,000 last year, significantly lower than the median of agent-assisted homes at $405,000"
Looking at these numbers from last year, homes listed by agents sell, on average, for nearly 76% more than homes sold by owners. Why is that? It’s simple: real estate agents are experts at selling homes. They have the education and experience to correctly price a listing, market it effectively, negotiate contracts, and handle any obstacles that arise on the way to closing.
Real estate agents know how to showcase your home to attract serious buyers, ensuring you get the best possible price. So, while it might seem like you’re saving money by going the FSBO route, you could actually be leaving a significant amount of money on the table. Trust the experts to guide you through the process and maximize your return
Maybe you’ve heard of the story of the computer technician. It’s a pretty good story about how someone that’s an expert can make all the difference in solving a problem like listing and selling a home.
A computer technician was called in to fix a complex issue on a company’s server. After just a few minutes of inspection, the technician clicked a few buttons and the server was back up and running flawlessly. The company received a bill for $1,000 and was shocked at the high cost for such a quick fix. When they requested an itemized bill, the technician sent the following:
Clicking buttons: $10
Knowing which buttons to click: $990
Total: $1,000The value lies not in the time spent, but in the expertise and knowledge that the professional brings. Similarly, hiring an experienced Realtor can make all the difference in selling your home.
Of course, this is a silly little story, but the lesson is accurate. It’s just like anything else. Sure, you can fix your own car or write your own will, but doesn’t it make more sense to hire an experienced mechanic or a competent attorney? There are certain things that require a specific type of expertise, and selling real estate is surely one of those things. Trust the experts to guide you through the process and maximize your return.
HOW TO SELL MY HOUSE IN DOTHAN
How To Sell My House In Dothan
You might be wondering, what are some of the best ways for you and your listing agent to work together to sell your home in Dothan quickly? Here are a few of the most important steps:
- Walk Through Your Home with a Realtor Realtors know what buyers will love and what might turn them off. Spend some time identifying areas that need improvement before listing your home. This can make a huge difference when your home hits the market.
- Study Comparable Sales Your listing agent should provide an opinion on your list price backed by comparable sales from the market. Some homes are harder to price correctly than others, but your agent should recommend a price range based on sold properties.
- Price It Right from the Start New listings can generate a lot of showings and even multiple offers within the first week or two if priced correctly. Overpricing your home can cool the market’s initial enthusiasm and cause it to languish until the price is corrected. By then, many potential buyers may have found another home.
- Get Your Home in Show-Ready Condition If your home is a fixer-upper and will be sold as-is, you may not need to spend much time getting it ready for sale. But if it’s in good condition and just needs a few improvements, definitely make those changes. Sometimes all it takes is touch-up paint, new mulch in the flowerbeds, professionally cleaned carpets, and a weekend of decluttering to make your home impress potential buyers.
- Provide Great Photography Your home is your most valuable asset, so don’t sell it with dark or blurry photos. Even a $100 pair of shoes you buy online has professional photos. Your home should be no different. At Big Creek Real Estate, we hire a professional photographer for the homes we list. Drone photography or a 3-D video tour can also be beneficial.
- Provide Lots of Information About Your Home Never assume that buyers or their agents will know everything they should about your home. Professionally prepared marketing materials should be available at your home and in MLS. If your neighborhood has unique amenities or you’ve made lots of updates, a detailed list should be shared with every buyer and buyer’s agent.
- Market Aggressively on Multiple Websites MLS is powerful, but buyers find homes on many other websites like Zillow, Realtor.com, and local real estate brokerage sites. Ensure your agent is experienced with these websites and knows how to make your home look great online.
- Make Your Home Available for Showings It seems obvious, but many sellers put too many restrictions on when their home can be viewed. It can be inconvenient to show your home when you live there or work from home, but buyers should be pre-qualified before a showing, so the buyers that come to your home are serious about making a purchase.
What Should I Do Before Hiring A Realtor?
Before you pick up the phone or send an email to a potential listing agent, it’s worth doing a bit of homework. The internet is a treasure trove of information about real estate agents, and you can find many online testimonials. Zillow, the largest real estate website nationwide, has countless agent reviews. At Big Creek Real Estate, we also showcase many of our clients’ comments on our website.
Even more valuable than online reviews are recommendations from your own friends, family, and neighbors. According to the NAR Profile of Home Buyers and Sellers, personal recommendations are often the most trusted source of information:
"63% of sellers found their agent through a referral from a friend, neighbor, or relative or used an agent they had worked with before to buy or sell a home. 75% of sellers said that they would definitely (67 %) or probably (8%) recommend their agent for future services."
Talk to your friends and neighbors about their experiences with their real estate agents. Most folks are happy to share if they had a positive experience with their listing agent. Ask them what they liked, what they didn’t like, and if they would hire the same agent again. Their insights can be invaluable in helping you choose the right agent for your needs.
What Should I Look For When Hiring A Real Estate Agent?
What Should I look For When Hiring A Real Estate Agent To Sell My Home?
Interviewing Listing Agents
Now that you’ve done your homework, you’re ready to start interviewing agents to list your home. But how do you choose the right one? It makes sense to hire an agent who not only has experience and a proven track record but also one you can relate to on a personal level.
Why Experience Matters In Real Estate
Experience in real estate means the listing broker is familiar with the market and the type of property being marketed. This experience will prove invaluable if a hurdle comes up, and one likely will at some point. A home inspection may reveal a significant defect, an appraisal might come in below the selling price, or a buyer might threaten to back out of the sale. All of these things can be overwhelming if the agent doesn’t know how to deal with them. Even the most experienced agents will run into things on occasion that they have never encountered before. These agents need to be creative in finding ways to overcome such obstacles.
The Importance Of A Good Personal Fit With Your Listing Agent
Listing and selling a home takes a lot of effort, and it should be a team effort between homeowners and the listing agent. Over the years, we’ve had the pleasure of working with some amazing sellers. We got along well and truly enjoyed working together. Many of these clients have become very good friends. These relationships made it fun to put together a strategy to sell the property, and when problems arose, we were able to work through them effectively.
Of course, not every situation is so great. Any real estate agent who has been in the business for a while has had clients they didn’t exactly mesh with. It might not have been anyone’s fault, but the chemistry just wasn’t there. When sellers and the listing agent aren’t on the same page, the selling process can be stressful. That’s why it’s crucial for sellers and agents to work well together as a team. Finding an agent you can communicate with and trust makes all the difference in ensuring a smooth and successful sale.
Trust Your Instincts When Choosing an Agent
If you’ve done your research and interviewed an agent you feel comfortable with, it’s smart to go with your gut. Most sellers can’t and don’t spend countless hours interviewing multiple agents. If they do, it’s usually just to get a second opinion on the list price. According to the NAR report we’ve been referring to, most sellers end up hiring the first agent they interview. This highlights the importance of first impressions and trusting your instincts when you find an agent who feels like the right fit for you and your home.
75% of all recent sellers contacted only one agent before finding the right agent to sell their home.
The Value Of Meeting your Agent In Person
While there are many ways to get to know your potential listing agent, nothing beats speaking with them in person. Our favorite part of the job is getting to talk with people. We often meet prospective clients at their homes, simply to understand their situation. Sometimes, it’s helpful for property owners to bounce their ideas off someone who is in the market every day. They might decide not to sell their home or land, and we might not get the listing, but we’ve built a relationship.
So much of the real estate business is about listening to people and offering input if they need it, even if no real estate transaction takes place. It’s these personal connections and understanding that make all the difference in our approach to real estate.
We hope that you give us a chance to earn your business. We’re happy to meet with you over a coffee, at your property or even over a beer.
What Commission Rates Should I Expect When Selling A Home In Dothan?
We often get asked about the “going commission rate” in Dothan. The short answer is, there isn’t a fixed rate, as real estate commissions are negotiable. Saying otherwise would be price-fixing, which is illegal. While most firms have a set commission policy, this doesn’t mean the entire Dothan market adheres to one rate.
It’s important to remember that in almost every case, the seller pays the commission for both agents (buyer’s agent and seller’s agent). For example, if a house is listed with a 6% commission, and a cooperating firm represents the buyer, the listing agent and buyer’s agent will share the commission. Typically, this is an equal split, with each firm receiving 3%.
Understanding this structure helps sellers know what to expect and how commissions work in the real estate market.
Offering Buyer's Agent Comission: Why It's important
Lately, there has been a lot of talk about sellers not offering a buyer’s agent commission. In our opinion, this is a mistake. While there isn’t much data available about selling this way, you can bet that nobody works for free, and not offering compensation can significantly impact the sale of your home.
Buyer’s agents play a crucial role in bringing buyers to your property. If they know they won’t be compensated and the burden of compensation is placed on the buyers, buyers won’t even tour your home, steering themselves towards properties where the commission is guaranteed for their agent so they don’t have to come out of pocket to pay commissions. This will absolutely reduce the number of potential buyers viewing your home, ultimately affecting the chances of a quick and profitable sale.
Offering a competitive commission to buyer’s agents ensures that your property gets the visibility it deserves. It’s a strategic move to incentivize buyer’s agents to prioritize showing your home to their clients. In a competitive market, every advantage counts, and ensuring agents are motivated to bring buyers to your property can make a significant difference.
In summary, while it might seem tempting to cut costs by not offering a buyer’s agent commission, it will certainly backfire by limiting your home’s exposure and potentially delaying the sale. To maximize your chances of a successful sale, it’s wise to offer a fair commission to both parties.
When Is The Best Time Of The Year To Sell Your Home In Dothan?
When Is The Best Time Of The Year To sell Your Home In dothan?
The Dothan, AL real estate market has traditionally experienced seasonal highs and lows, similar to many other markets. However, over the years, these peaks and valleys have become less pronounced. While we still have busier times of the year, what used to be slower seasons are now fairly active. Spring and early summer remains the prime selling season, but we’ve noticed a steady sales volume throughout the year. Despite this trend, many homeowners still assume they can only sell their homes in the summer. It’s important to understand that the market is more dynamic now, offering opportunities for selling your home year-round.
The truth is, there is demand for real estate in Dothan and the surrounding areas for most of the year. However, certain property types and price ranges tend to sell better in the summer and fall. Generally, our market cycle works like this:
January-February
During January and February, listing inventory is pretty low, but there’s active demand among first-time homebuyers and local residents. More affordable price ranges still sell relatively quickly. Desirable areas for young homeowners may still experience multiple offer situations.
We often see an uptick in land sales this time of year. With fewer homes available, buyers consider purchasing land to build their own homes. Additionally, land is easier to view in the winter when the leaves are off the trees. This season also presents an opportunity for homeowners who struggled to sell their home during the previous summer and fall, as there is less competition with other listings.
March-April
This is listing season. Inventory increases significantly as homeowners prepare their homes for sale. Many listings that hit the market earlier in the spring will be sold before the rest of the listing inventory even comes on the market. If you’re considering selling in the spring, it might make sense to list earlier to take advantage of the lack of competition. Getting your home on the market in March or early April can give you a head start and attract buyers before the market becomes saturated.
This is a prime time to be on the market if your property is priced for affluent buyers. Much of our upper-end real estate is sold to second-home and snow-bird retirement buyers. Listing your home during this peak season can attract these buyers and maximize your sale potential.
May-June
It’s go time! May is another busy month for listing properties. By June, the floodgates have opened, and buyers are here. Schools are out in many parts of the country, Memorial Day is over, and people are passing through on their way to summer vacations in Florida. This includes families and retirees, who are a huge segment of our market and often drive the upper price segments.
July-August
This is contract-to-closing season. Homes that went under contract in the spring are now closing. While more homes are still coming on the market, it’s not at the same rate as in May and June. There’s a lot of buyer activity in July, and this trend continues until about mid-August when vacations wrap up and families start preparing for the new school year. If you’re thinking about selling, it’s a great time to list your home and take advantage of the active market before the seasonal slowdown.
September-October
September brings a bit of a market lull. Summers are busy for most people with vacations and trips, but September marks a return to the normal routine of work and school. This slowdown in buyer activity presents an opportunity for real estate buyers. Many homes that didn’t sell during the busy summer season may now be poised for a price reduction.
If a homeowner didn’t list their home for sale during the summer, October is a great opportunity to get it sold before the year ends. Homes that have been on the market for a while might benefit from a price reduction. This can attract new interest and help move your property before the slower winter months.
November-December
Our market can sometimes stay busy through Thanksgiving and even mid-December. This period sees a lot of buyer activity, though not much new inventory comes on the market. This presents another great opportunity to sell a home in Dothan with minimal competition. In a strong seller’s market, this is a chance to price your home at the upper range of its value, especially in the lower price ranges. Buyers who need to move quickly will have fewer options and will be more inclined to meet the seller’s terms.
Throughout the year, different opportunities arise for sellers to capitalize on either high buyer activity or low listing competition. When deciding the best time to sell a home in Dothan, it’s crucial to consider your motivation for selling. If you’re ready to sell or need to sell quickly, then put your property on the market. Even during slower times, your home won’t sell if it’s not listed. Getting it on the market ensures it’s available for buyers, increasing your chances of a successful sale.
How To Price A Home To Sell In Dothan
It’s simple supply and demand that tells us: the lower the home price, the more demand there will be. Homes in Dothan in more affordable price ranges are snapped up by first-time homebuyers, investors, and working families. Higher-end luxury homes, on the other hand, are naturally geared toward wealthier buyers. However, Dothan’s market is active across all price ranges, and even high-end properties attract buyers from various parts of the country. There’s always closings taking place, even in the highest price brackets. The key is to price the listing correctly right from the start.
Listing agents who inflate a home’s value to win the listing do a disservice to the seller. Overpriced homes tend to sit on the market, becoming stale and eventually selling for less than they would have if priced correctly from the beginning.
Another common mistake is when homeowners accept their agent’s recommended listing price but add extra to cover negotiating room and closing costs, including the real estate commission. This approach leads to an overpriced listing. Remember, comparable sales already include these factors.
At Big Creek Real Estate, we ensure your home is priced right from the start to attract serious buyers and achieve a successful sale. A good listing agent will recommend a listing price and also predict the likely sale price. The difference between these two prices is the negotiating room, and the sale price should already include closing costs.
Which Real Estate Company Sells The Most Homes?
This is a common question we got from home sellers, but it’s not really relevant. When hiring an agent, you’re hiring one person. The listing agreement you sign will have the company’s name on it, but the person who really cares about selling your house is the agent who has the listing (and maybe the agent’s broker-in-charge).
Larger firms have more agents, so they naturally sell more real estate. However, these firms often have a small percentage of top-producing agents and many part-timers or agents who only do a few sales per year for friends or their own investments.
Can A Small Agency Market My Home Effeciently?
There’s a common misconception that larger firms have more marketing tools to advertise your property for sale. That’s simply not true. Most real estate marketing tools are scalable. For example, if a large national firm buys a billboard, it might cost $50,000 for extensive coverage. A smaller firm could rent a local billboard for a fraction of that cost, say $1,000, and still reach the target audience effectively.
The most powerful marketing tool is the MLS (Multiple Listing Service). Every agent at every firm in Dothan has access to the Dothan MLS, and we all pay the same to use it. So, no matter the size of the firm, your property gets the same exposure in that regard.
Instead of asking which firm sells the most real estate, a better question might be, “What will my listing agent do to sell my home?”
At Big Creek Real Estate, we customize our approach for each listing. Every property is unique and has distinct features that need to be highlighted. Our marketing strategy varies depending on the target buyer—whether it’s investors, first-time homebuyers, or luxury home seekers. We tailor our efforts to ensure your property gets the attention it deserves and attracts the right buyers for a successful sale.
What Kind Of Support Does My Listing Agent have?
One of the goals I had when we started Big Creek Real Estate was to ensure that our agents never felt isolated. Isolation causes anxiety and stress for the agent, and it robs the client of the good ideas that come from an office where agents work closely together. It also puts the client in a vulnerable position if an urgent need arises while their listing agent is out sick or on a much-needed vacation.
That’s why we provide in-house administrative support for our agents, including a broker-in-charge who is always accessible and often involved hands-on with listings. Our constant environment is collaborative, with agents bouncing ideas off each other and discussing any obstacles that come up in transactions. Collectively, we’ve closed hundreds of transactions over the years, so there’s a good chance we’ve encountered and already overcame any hurdle that might arise for you. This means we can find solutions quickly.
What Should I Do If I can't Sell My Home?
If you’ve tried selling your home on your own without success, it’s time to speak with a real estate agent. But if you’ve had your home listed with an agent and it still hasn’t sold, it’s wise to look back at what happened during the listing period.
A good listing agent should be consistently following up with agents who have shown your home to gather feedback from potential buyers. If you’re getting consistent comments about issues that can be fixed, take action to address them. This might mean cleaning up the landscaping, installing new carpet, or repainting. Sometimes, it might mean adjusting the price.
There are some challenges, like nearby interstate noise or an unusual floor plan, that can’t be changed. In these cases, lowering the price or trying another strategy might attract more buyers until the right one comes along. If your agent isn’t willing or able to adapt the strategy to sell your house, it might be time to consider a different agent.
At Big Creek Real Estate, we’re committed to working with you to overcome any obstacles and adjust our strategies to get your home sold. Don’t hesitate to reach out if you need a fresh perspective on selling your property.
Can I use Two Agents To Sell My home?
In the Dothan real estate market, most listing contracts are “Exclusive Right to Sell Listing Agreements.” This means only one agent will act as your listing agent. However, this agreement also allows the listing agent to cooperate with other agents, so there’s a very good chance that another agent will represent the buyer. Essentially, in most cases, two agents will be involved in selling your house.
Right now, there are nearly 500 agents in the Dothan MLS and many more from surrounding areas like the Wiregrass Board Of Realtors who also represent buyers in our market. In times of lower inventory, buyers expand their search areas, and we often see agents from other regions like the Valley MLS based out of Huntsville representing buyers for our listings. This widespread cooperation ensures your home gets maximum exposure to potential buyers. At Big Creek Real Estate, we leverage this network to sell your home effectively.
What's The Next Step To Put My Home On The Market?
If you’re thinking about listing your property for sale, you probably have a lot of questions about the current market, how to price your home, and how we’ll market and sell your property. We’re here to help! We’d love to answer your questions and ensure you make an informed decision. Contact us to get started—we look forward to working with you and making your home-selling process smooth and successful!
