Here is a comprehensive guide on selling a home in Lexington, NC. It covers the important factors affecting the sale, pricing strategies, preparing your home for showings, and hiring the right real estate agent and much more. If you are wondering what your home might sell for in today’s Lexington Real Estate Market, call or text Megan at 336-239-7501 or use this Instant Home Value Calculator. This tool only takes 15 seconds and is a good starting point.
Understand the Factors Affecting the Sale of Residential Property
Here are five important factors that will affect the sale of your home.
Local Real Estate Market
List Price
Location
Condition
Marketing
Current State of the Local Real Estate Market
One of the most important jobs of your listing agent is to educate you as to what type of market the local area is presently experiencing. Is it a buyer’s market, seller’s market, or a normal market? These statistics will tell you how long it might take you to sell your property and gives you an idea of what price other sellers are receiving in offers. Having this information will help you set the correct price for a quick sale and help in any negotiations on the home. Some of these statistics include the following information:
Median List Price – This calculation represents the point at which half of the homes that sold in a given month were priced higher and half were priced lower.
Days on Market – Median or the average number of days between when a property is listed and when an offer is accepted in a given month.
Months Supply – The inventory of homes for sale at the end of a given month, divided by the average monthly pending sales from the last 12 months. This figure is also known as the absorption rate.
Active Listings – The number of properties available for sale in active status at the end of a given month. Also known as housing inventory.
Pending Listings – A count of the properties on which contracts have been accepted in a given month.
Closed Homes in last 30 days – The number of homes that have closed during the month.
View the Davidson County Market Watch Report
Video from the National Association of Realtors
on National Housing Figures for October 2018
Setting the Right Price
Of all the factors affecting your sale, Price is the most important because it is flexible and can correct deficiencies in other factors. 
How do you set the right price so your home will sell quickly? You can start by checking an Instant Home Value Calculator. These quick evaluations use computer models to check public records.
But be aware that sometimes they can be off by 8 to 20 percent in a home’s value. These computer-generated values are not aware of recent updates and the condition of the home.
There could also be errors in public records. This tool is a fast way to get a general idea of value but to have a realistic idea of your home’s present market value, you need an agent to prepare a Comparable Market Assessment. This assessment should include the following information:
Status of Comparable Homes
- Closed listings – Sold properties in the last six months
- Active listings – properties currently for sale in your neighborhood
- Pending listings – listings that are under contract but have not yet closed
- Expired listings – listings that failed to sell when they were on the market in the last six months
A Detailed Report of your Home and the estimate of its value range in today’s local market.
You will need to study this valuable information carefully so that you can set a correct price to attract multiple buyers and offers.
A common mistake with sellers is to price the home above its market value thinking that buyers will still look at the property and negotiate. Let’s take a look as to how this might work against the seller. For example, say the best price to list the home would be between the $190,000 and $200,000 range according to the comparable homes recently sold.
But the sellers decide they want to list it at $205,000 to start with, so they have wiggle room to negotiate. It is not overpriced by much; but here is one problem with that thinking. Most buyers today find out about new listings on the market by setting up a buyer’s account on the internet.
When the buyer sets up an account to get new listings, they have to pick criteria by which the system will send them listings. There is a minimum and maximum price they enter. So let’s assume they set the maximum price at $200,000. They won’t see the new listings priced at $205,000 when it comes on the market, which might have been perfect for them.
Browse Lexington Homes for Sale from $200,000 to $300,000
Your Home’s Location
Aspects of your home’s location can have a direct effect on its price. You must analyze how your home’s location compares with the recent comparable properties that have sold. For example, if a recent comparable home had a lake view, but your home sits further back in the community, the list price should reflect the lack of a lake view. But if a comparable home that sold was on a busy street and your property sits in a quiet cul-de-sac, you should be able to increase your price to account for the better location.
Condition of Property
The condition of your home includes its age and how you have maintained it over the years. Your home’s condition includes interior features such as kitchen and bathroom cabinets, appliances, countertops, flooring, ceilings, doors, windows, sinks, toilets, and shower enclosures. If the home is 30 years old and you have not updated it during this period, the price will have to be realistically adjusted.
Marketing the Home to Attract Buyers
The internet has changed the way agents market homes for sale. Over 90% of buyers today use the internet to find a home, and a large percentage of these buyers are using mobile devices. Your agent should understand how to reach and market to those internet buyers. Usually, within less than a day’s time, a new listing is syndicated to hundreds of websites when the listing agent enters it into the Multiple Listing Service.
Also, with the advent of social media, there are numerous ways to advertise a new listing that was not available before. Another source is for your agent to market the home to local agents who sell in the area by sending a marketing email or flyer or holding an agent open house. These are the agents that have buyers looking for property in the area.
Agency in the Real Estate Transaction
The term “Agency” is used to determine what legal responsibilities your real estate professional owes to you. All states today have laws regarding consumer representation in real estate transactions. Agency was brought about by numerous lawsuits resulting from consumers being unclear as to who the agent was representing. North Carolina has three types of agency relationships – Buyer’s Agent, Seller’s Agent and Dual Agency.
The buyer’s representative (buyer’s agent) works in the buyer’s best interest throughout the home buying process. Here in North Carolina, the buyer’s agent is paid by the seller through the commission split with the seller’s agent. The home seller agrees to this commission split when they sign the listing agreement. In other parts of the country, it might be common practice for the buyer to pay the agent directly through a negotiated fee arrangement.
The seller’s representative (also known as the listing agent or seller’s agent) is hired to represent the seller. It is the listing agent’s job to get the best price and terms for the seller.
A disclosed dual agent – In this situation, an agent represents both the buyer and seller in the same real estate transaction. All parties must give their written informed consent because of the potential for conflicts of interest in a dual-agency relationship.
When you first have contact with a real estate broker in North Carolina, they will explain to you the different types of agency relationships that are available to you and have you sign a North Carolina form entitled “Working with Real Estate Agent.”
Choose the Right Real Estate Agent
The Realtor you select to sell your property should be knowledgeable about the entire sales process and the local real estate market. They become your trusted advisor with your most important financial investment – your home.
They will be representing your best interests in negotiating the transaction. Understand what marketing the agent will do to sell the property. The agent you hire needs to be tech savvy and a good negotiator. Once under contract, can the agent keep the transaction on track to close if problems occur?
Browse New Homes for Sale in Lexington Zip Codes 27292 and 27295
Preparing Your Home to Sell
Remember, the second most important factor in the sale of your home is its condition. The way we all live in our homes every day is quite different from the way we have to keep it when we decide to list it for sale. Your home needs to appeal to the biggest group of potential buyers that are currently looking for listings in your price range. To accomplish this, you need to step back from your emotional attachment and view the property as a potential buyer would see it for the first time.
Don’t miss the window of opportunity when your home is new to the market. First impressions do count so do everything that needs to be completed before you put the property on the market and have the first showing. It will not take a lot of money to get your home ready, but it will take a lot of effort and time on your part.
Charm buyers and make them want to buy your home by following these steps.
Basics for Outside
- Spruce up the yard. Cut the lawn, rake the leaves, and add mulch to the flower beds. Check to make sure the doorbell is working properly.
- Wash the mailbox, keep the porch area swept and perhaps place a flower pot on the front steps or a seasonal wreath for the front door.
Inside Basics
- Start by airing out the home. Buyers will be turned off by even the smallest odor. Eliminate all odors, especially those caused by dogs and cats or smoking in the house.
- Clean windows and screens to help bring more light into the home. Check to make sure light bulbs are functioning. Clean walls and repaint if needed. Consider hiring a professional service to help.
- Have the carpets cleaned and wood floors need to be waxed and polished.
- Put bright light bulbs in every socket for good lighting.
- Go through your closets, cabinets, and drawers and clear out unnecessary items.
- Reduce your furniture footprint. A room with too much furniture will make the room seem smaller than it is. Put the extra furniture in storage.
- Keep your kitchen and bathrooms sparkling clean.
- If you have limited counter space in the kitchen, keep unnecessary items put away.
- Repair items that have been on your “to-do list.”
- Check your faucets in the home to make sure there are no leaks.
- Family photographs, collections, and personal effects can distract buyers when they are viewing your home so pack these items away.
- If you have repurposed a room in your house, return the room to its original purpose. Each room must function as it was intended.
Prepare for the Listing Pictures
As mentioned above, more than likely the first time buyers see your home will be on the internet. The first impression of your home will be from The Listing Photographs.
To help make sure your home shows at its best, take some pictures on your camera of each room. Look at the pictures and make the necessary changes to improve each room’s appearance. Removing just one or two pieces of furniture from each room can make your space appear larger on screen.
Showing Your Home
The actual job of selling your home is the job of your listing agent. They take the responsibility to market the property and bring buyers to view the home. A lot of the marketing is done through the Multiple Listing Service. Your agent enters the home’s profile into the home database available to all brokers in the MLS membership. Interested brokers may tour the home to become familiar with it.
Buyers will view the home on the internet through their email buyer accounts and decide if they want to see your property. Then their buyer’s agent contacts the appointment service to schedule a showing. The service will contact you by phone, text or email to accept or reject the appointment. If there are any special instructions about the showing, the agent will be informed by the appointment service. For example, if there is a security alarm or if pets are present in the home.
The perfect situation is for the sellers to be away from home during the showing. If the sellers are present, buyers feel like intruders and rush through the showing.
At showings, send the pets to the neighbors if possible. Or confine pets to one room. Let the showing agent know where they will be confined.
Costs involved in selling a house in Lexington,NC
When your home is listed, the agent will provide you with an estimate of your proceeds from the list price you decide. When offers come in, your agent will give you an estimate of your net proceeds if you accept the offer or any offer you decide to counter back with.
Costs at closing by Sellers:
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- Mortgage balance and prepayment penalties, if applicable
- Other claims against your property, such as unpaid property taxes
- Unpaid special assessments
- Document stamps (or taxes) on the deed
- Real estate commission
- Legal fees for deed preparation
- Buyer Closing Costs if negotiated in the contract
- Repairs bills for contractors
Average time to sell a house in Lexington, NC
How long your home will be on the market will depend on your list price, its condition and what the local real estate market is doing.
As of the publish date of November 9, 2018, there are 278 single family homes for sale in Lexington, NC. Homes are taking approximately 24 days before they go under contract. Sellers are getting 97.1% of list price. There is currently a 4 months supply.
Negotiating Offers
When an offer is received, the first thing your agent needs to check is the preapproval letter from the buyer to be sure they will be able to purchase the property. You will need to look at what type of loan product they are using and how much down payment they have to put down.
You need to evaluate these items in the offer:
- How close is the offer to your list price?
- Will there be a problem with the home appraisal?
- Is the buyer asking you to pay closing costs?
- Is the buyer asking for a home warranty?
- Does the estimated settlement date work for you?
- What is the amount of Earnest Money and Due Diligence?
- Estimate of your proceeds if you accept the offer with no changes?
You will have the option to accept the offer, reject it or go back to the buyer with a counter offer for them to consider.
How long will it take to close
How fast a transaction closes depends on how the buyer is paying for the home. Typically, once both parties have agreed and signed the contract, it will take six weeks to close. If the purchaser is obtaining a loan, the bank will need to verify all the information on the loan application, order an appraisal and submit the file to their underwriting department for final approval.
During this time, the buyer will schedule the inspections and negotiate with you for any needed repairs. If there is no financing involved and it is a cash deal, the buyer may decide to close earlier after they have done their due diligence and inspections.
Due Diligence in the Offer to Purchase Contract
Due diligence was added to our residential contracts in North Carolina in 2011. In the contract, there is a negotiated timeframe for buyers to investigate the property, do inspections and apply for their financing. Another item to be negotiated is the due diligence fee which compensates the seller for taking their home off the market.
The buyer writes the due diligence check to the seller. If the home closes, the amount of the check shows as a credit on the buyer’s closing disclosure. However, if the buyer for some reason decides to terminate the contract before the end of the due diligence period, they do not get the due diligence money back.
How to Handle Repairs
You thought the negotiation process was over when you signed the Offer to Purchase contract, but now you need to decide how to handle the requested home repairs. It is during the due diligence period that the home inspection takes place. The buyers review the report from their inspector and decide which of the items they want the seller to repair or replace.
Next, the Buyer’s Agent prepares the Due Diligence Agreement and Request form and forwards it to your listing agent, along with a copy of the Home Inspection Report. The seller and the listing agent will review the report. The seller might need to get estimates from contractors before deciding on what to fix.
Seller Options in handling repairs:
- Repair the items yourself
- Hire a Contractor
- Lower the Final Sales Price
- Negotiate on which items to repair
- Offer to split the repair costs
- Decline the Repair Request
Requested repairs start the negotiations going back and forth again. It is a good idea for both parties to know the costs of the repairs. It is better not to guess. The seller or the buyer might think that something will cost $1,000, but it turns into a $5,000 repair.
Seller Trend for Pre-Inspections
More and more sellers today are seeing the value of investing in a pre-inspection on the property they are preparing to sell. Whether or not you are confident in the condition of the home, an inspection can either give you third-party validation or reveal issues you should attend to before listing your property – issues a buyer inspection could surface later, making them part of the final price negotiation.
Closing – Transfer of Title
The closing meeting finalizes the sale of your home and makes everything official. It is not required for sellers to be present at the closing unless they wish to do so. Sellers can sign the documents needed ahead of time.
The buyers will be reviewing and signing many documents, especially if a loan is required to purchase the home. After all of the documents are signed and approved by the lender, the attorney can then record the deed to make the transfer of title official. The attorney will then disburse the funds in his trust account to pay the necessary expenses.
Remember to keep copies of all closing documents and home improvement receipts on the home you sold. This information is needed when you prepare your taxes.
11 Tips for Packing and Moving
Develop a master list of tasks you need to complete.- Go through items you no longer need or want. Have a garage sale, donate, or discard them.
- Check your moving insurance coverage. The moving company usually carries insurance if items are lost or damaged. Make sure if you transport anything yourself that the item will be covered if damaged.
- Pack a box with important items you will need first in settling into your new home.
- Make a list of the things you want to move personally.
- In packing try to keep the weight of each box to 50 lbs.
- Purchase bubble wrap and other needed materials to pad the bottoms and sides of boxes to protect the items inside your moving boxes.
- Label moving boxes on all sides so you can easily see what they contain.
- Inspect each box and piece of furniture when it arrives for damage. Report any damage immediately to your moving company.
- Change your mailing address at your local post office.
- Update important service providers of your new address.
