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Even if you've bought or sold a home before, this process can still be daunting. You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures. Whatever turbulent feelings you're experiencing right now, there are plenty of practical matters that need your attention. Keep in mind the following considerations to help the whole process go more smoothly. On The Inside
Strong curb appeal will lure potential buyers inside, where you have to live up to their expectations. Fortunately, there are plenty of easy improvements you can make to your home's interior without spending a lot of money. Cleaning is No. 1. Your windows, floors and bathroom tiles should sparkle. Make sure you have clean heating and air conditioning filters. Shampoo dirty carpets, clean tubs and showers, repair dripping faucets and oil squeaky doors. Keep your home neat, clean and picked-up at all times. It may not seem fair, but a peek in the oven may be the hallmark by which a buyer judges how well you have kept up your home. Remove unnecessary clutter from the garage, basement, attic, closets and straighten stored items. Also remove any items that might make a statement that would be offensive to others who may not share your same views, beliefs or sense of humor. If your home is crowded with too much furniture, consider putting some things into storage. If a room needs a fresh coat of paint, use a neutral off-white. Think, too, about how your home smells. You may be used to the smell of a pet or cigarettes, but such odors can be a strong turn-off to others. Be certain to remove valuables such as jewelry and other items from view. It might be wise to put these items in a safe deposit box before showing your home. Finally, set a mood for the buyer. Make your house homey with live flowers and fresh guest towels in the bathroom. Remember, cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It's attention to the basics—anything that says “this home has been carefully maintained”—that will help you get the price you want. Selecting a REALTOR Choosing the right person to sell your home is one of the most important steps of selling. Therefore, choose wisely. Speak with 2 or 3 brokers from different agencies. Ask prospective brokers the same list of questions, in order to compare their answers. Find out what they would do to sell your house. Above all, choose a broker that you feel comfortable with and like. This person will help you make the biggest sale of your life, so find someone you think will do a good job! A good Realtor will advise you on when to place your home on the market, make suggestions to prepare your home to shine, help you set a listing price and will know what advertising venues will work best for your home. The Listing Agreement The lisitng agreement between you and your Realtor will specify the lisitng price, the length of the lisiting, fees and reserved prospects if any. You will also fill out the "Seller Disclosure of Property Condition" form and the Lead Base Paint Disclosure form. Expect to sign a minimum of a 180 day agreement or more. Pre-Listing Home Inspection Having your home inspected by a professional home inspector before you list. Eventually the buyers of your house are going to conduct a home inspection. You may as well know what they are going to find by getting there first. Having an inspection performed ahead of time helps in many other ways: - It allows you to see your home through the eyes of a critical third-party.
- It permits you to make repairs ahead of time so that defects won't become negotiating stumbling blocks later.
- You have the time to get reasonably priced contractors or make the repairs yourself, if you are qualified.
- It may encourage the buyer to waive the inspection contingency.
- It may alert you of items of immediate personal concern, such as radon gas or active termite infestation
- It may relieve buying prospect's concerns and suspicions.
- It reduces your liability by adding professional supporting documentation to your disclosure statement.
Copies of the inspection report along with receipts for any repairs should be made available to potential buyers. Setting a Fair Price Naturally, you want to get top dollar for your home. But, at the same time, you don't want to scare off potential buyers with a price tag that's too high. Setting an artificially high price may cause your property to languish on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider in pricing your home. - Your location
- Economic conditions
- Supply and demand in the local housing market
- Seasonal influences
- Local schools
- Average home prices in the neighborhood (Currently on the market and homes sold in the last 6 months)
- Your home's extras -- garage, fireplace, central air, etc.
Marketing Your Home
There numerous ways to market a home. The best way for your home will depend on location, season, local customs, condition and local market conditions. Here are some ways that your home might be marketed. - Yard Sign-one of the most effective ways to advertise your home is available. Potential buyers will often drive the areas that ore of interest to them.
- Newspaper
- Real estate homes magazines offer a great place to advertise with pictures.
- Internet advertising allows prospective buyers to visit your home anytime. Make sure your Internet ad has plenty of photos.
- Virtual tours linked to your Internet ad allows buyers to get a better view of your home.
- 24 hour hotline numbers can be placed with your yard sign as well as print and Internet advertising.
- Target mailings.
- Home brochures for prospective buyers to take with them after they have viewed your home.
- Multiple Listing Service (MLS) is probably the most effective way to market your home.
Showing Your Home While your home is on the market you will need to think of it has a retail space. You will need to keep it clean and picked up at all times so it can be shown on a short notice. When a Realtor schedules an appointment to show your home you will need to turn on all of the lights, even during the daytime. This helps the home show brighter and will help the buyers notice your light fixtures. Open all of the blinds if the showing is during daylight hours. Make sure the home brochures are in an area they will be seen. If you have pets take them with you when you leave. And make sure you have cleaned the yard of pet waste. And always leave during any showings. If you are present during showings the buyers will be reluctant to really look at your house.
The Offer
When an offer is made on your home it will in most cases be on an Offer to Purchase Real Estate Contract used by local Realtor’s. It will contain the offering price, good faith deposit amount, financing conditions, inspection contingencies, possession date and closing date. Once the offer as been presented to you will have the option of accepting it, making a counter offer or rejecting it. Once an offer has been negotiated and signed, it becomes a legally binding contract.
Inspections
In most sales the buyer will have an inspection contingency. The buyer will have an inspection done by a professional inspector. If there are any areas of concern the buyer can negotiate with you on repairs. If you and the buyer cannot agree to repair items, the buyer will have the right to back out of the contract without penalty.
Appraisal
Most lenders will require the buyer to have an appraisal performed to insure their interest in the mortgage. If the value comes in below the contract price, the lender will not give the buyer the mortgage.
The Closing
Also know as Settlement, this is the time you have worked to reach. Here you will sign the deed over to the buyer and receive the check. The closing agent will collect funds from the buyer and their lender, then will pay off your mortgage and any other fees you may have including but not limited to; Realtors fee, state transfer tax, deed preparation, closing costs for the buyer if negotiated, etc.
If you would like to meet with me to discuss selling your home please fill out the form below and submit. I will get back to ASAP. Usually in less then 4 hours. I would love to hear from you! Time Becomes Money
It's a good idea to place your home on the market as far in advance as possible of purchasing a new one. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you qualify for a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. Shop around for the best terms. Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply. Check Your Curb Appeal
A home that's visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to view your property through an outsider's eyes. - Are the lawn and shrubs well maintained?
- Are there cracks in the foundation or walkways?
- Does the driveway need resurfacing?
- Are the gutters, chimney and walls in good condition?
- Do the window casings, shutters, siding or doors need painting?
- Are garbage receptacles and debris stored out of sight?
- Are lawn mowers and hoses properly stored?
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