Your house is too small. Your house is
too big. It’s in the city and you want to live
in the country, or it’s in the country and you
want to live in the city.
Whatever reason there is, you want a ‘for
sale’ sign in your front yard. You probably will
never sell anything more valuable than your home. This
means you’ll want to get the most from your long-term
investment.
Where and how do you begin this process?
Getting
Ready to Sell
Clutter Removal
Assessing the Exterior of Your House
Selecting an Agent
Why hire a Real Estate Agent
Which Realtor should you choose?
What to Expect from a Real Estate Professional
Setting Your Price
Study the Comparables
Get an Appraisal
Showing your
House to Potential Buyers
Leaving During a Showing
Lighting
Fragrances
Pet
Control
Kitchen Trash
Keep the House Neat and Clean
The Contract
Key Elements of the Sales Contract
Price
and terms
Condition of home and inspection
Response
deadline
Settlement date and occupancy
Finalizing
Preparing
for the Close
The
first step in getting your home ready to sell is to "de-personalize" it.
A house can be a place to eat, sleep, park your car and
put all your "stuff" (including other family members).
A home is where you feel comfortable, warm, safe and
protected. A home is where you live.
De-personalizing your home allows a potential
buyer to perceive your house as their potential home.
Removing family elements such as photos, sports trophies,
collectible items, knick-knacks and souvenirs allows
the buyer to picture it with his “stuff”,
thereby putting his “brand” on the home.
You might want to store these prized family items in
an air-conditioned storage.
Clutter removal
Part of preparing a house for sale is removing
the "clutter.” Through the years, you’ve
amassed a significantly large quantity of “stuff.” Remember
when you first looked at your new home? You opened
the cabinets, pulled the drawers and opened closet
doors. Your buyers will be doing the same thing, so
getting rid of the extra stuff that has gathered over
the years will help your house look ready for its next
owner.
Areas especially vulnerable to attacks
of opening and examining are:
The kitchen – clean out
the pantries, cupboards and shelves – keep
trashcans hidden and of course emptied.
Closets – Closets are great
places for accumulating “stuff”. Extra
clothes, shoes and accessories that may not have
seen daylight for sometime can all be boxed and placed
in storage. Cleaning this space out also makes your
closets look bigger – a huge item on any buyer’s
list.
Furniture Clutter – A room
can look overcrowded if you have it full of furniture.
That big over-stuffed sofa or your favorite worn,
but comfortable recliner may need to find a temporary
home when showing your house to prospective buyers.
Again, remember, the buyer wants to envision his
or her own favorite pieces in the house. You may
want to tour some builder’s models to see how
they place furniture in the model homes. You can
then get an idea of how to place your own furniture
to provide the maximum effect – getting an
offer.
Storage Areas – These are
favorite places for “stuff” to gather.
Like magnets, basements, garages, attics and sheds
attract whatever doesn’t go into the living
room, bedrooms, closets or kitchen. Things like Uncle
Henry’s old bowling ball, Aunt Hilda’s
sketches of her parakeet or even your “Elvis
is alive and well” poster. This might be the
perfect time to have that garage sale you’ve
been putting off. Cleaning up and cleaning out will
dramatically enhance your selling efforts.
Plumbing and Fixtures – check
all fixtures to make sure they turn easy and that faucets
do not leak. The fixtures should look as shiny and
new as possible.
Ceilings, walls and painting – Check
your walls and ceilings for water stains. Sometimes
old leaks leave stains, even after the leak has been
repaired. If you should find a leak, of course have
it repaired. Painting can be your best investment when
selling your house. A neutral color – beige,
cream, ivory or standard off-white will allow your
buyers to picture your house with their color schemes.
The lighter color also adds brightness to the rooms
and makes them appear more spacious.
Carpet and flooring – Unless
your carpet appears old and worn, or is definitely
an outdated style, hiring a good carpet cleaner may
be all you need. If you choose to replace the carpet,
find something inexpensive in a fairly neutral color.
Windows and doors – Check
all windows and doors to make sure they open easily
and without noise. Invest in a can of WD-40 and spray
all the hinges to ensure that each opens smoothly.
Check your windows for cracked or broken windowpanes.
Of course, this would be a good time to clean them
allowing your rooms to be bright. As potential buyers
go from room to room, someone will open each door and
you want to do everything necessary to create a positive
impression.
Odor Control -- For those who smoke,
you might want to minimize smoking indoors while trying
to sell your home. You also could purchase an ozone
spray that helps to remove odors without creating a
masking odor.
Pets create odors that you may have become
used to, but are immediately noticeable to those with
more finely tuned olfactory senses. If you are a cat
owner, be sure to empty the kitty litter box on a daily
basis. There also are products that you can sprinkle
in a layer below the kitty litter that helps to control
odor. For those with dogs, keep the dog outdoors as
much as possible. You might also try sprinkling carpet
freshener on the carpet on a periodic basis.
Top
The Exterior of
the House
Cleaned out closets and cabinets, washed
windows, new paint on the walls and freshly cleaned
carpets, along with shiny new faucets and replaced
light bulbs – the inside of your home sparkles
as it entices potential buyers to “take a look”.
But we’re not quite finished. Before the buyer
steps over the threshold, will he or she need to walk
through the un-mown grass, step over the kid’s
bicycles or dodge the game of kick ball being played
on your front lawn?
Your potential buyer’s first impression
of your house will be based on his or her view of the
house from the inside of their agent’s car. So,
it’s back to work!
Take a walk across the street and take
a good look at your house. Look at the houses nearby
to see how they compare to yours. If yours already
looks better, then you are several steps ahead of the
game.
Landscaping -- Is your landscaping
at least average for the neighborhood? If not, buy
a few bushes and plant them. If you have an area
for flowers, buy mature colorful flowers and plant
them. Flowers add a splash of vibrancy and color,
creating a favorable first impression.
Your lawn should be evenly cut, freshly
edged, well watered and free of brown spots. If there
are problems with your lawn, you should probably
take care of them before working on the inside of
your home. This is because certain areas may need
to be re-sod, and you want to give it a chance to
grow so that re-sod areas are not immediately apparent.
Plus, you might want to give fertilizer enough time
to be effective.
Always rake up loose leaves and grass
cuttings.
House Exterior -- The big decision
is whether to paint or not to paint. When you look
at your house from across the street, does it look
tired and faded? If so, a paint job may be in order.
It often is a very good investment and really spruces
up the appearance of a house, adding dollars to offers
from potential homebuyers.
Choose a color that fits well in your
neighborhood. Of course, the color also depends on
the style of your house, too. For some reason, different
shades of yellow seem to bring out the best response
in homebuyers, whether it is in the trim or the basic
color of the house.
As for the roof, if you know your house
has an old leaky roof, replace it. If you do not
replace a leaky roof, you are going to have to disclose
it and the buyer will want a new roof, anyway. Otherwise,
wait and see what the home inspector says. Why spend
money unnecessarily?
The Back Yard -- The back yard
should be clean and neat. If you have a pool or spa,
keep it freshly maintained and always clean. Dog
owners – be sure to consistently keep the area
clear of "debris."
Front Door & Entryway -- Your
front door should be especially nice, since it is
the entryway into the house. Polish the door fixture
so it gleams. If the door needs refinishing or repainting,
make sure to get that done.
Remove anything with a personal nature, plaques, doormats, name plates,
etc. The idea is again, to let your potential buyer visualize the home
as his.
Make sure the lock works easily and the
key fits properly. When a homebuyer comes to visit
your home, the agent uses the key from the lock box
to unlock the door. A sticky lock can cause a ‘sticky
situation’.
Top
Why hire a Real Estate Agent
Selecting an agent is one of the most pivotal
decisions when selling your home. It is important to
seek advice about this important financial transaction
from someone who "sells" houses for a living.
Working with professional real estate agents
is beneficial for several reasons:
- They will help establish a fair asking
price for your house.
- They will promote your house to other
agents and list your property in multiple listing
services so your house will receive maximum exposure.
- They will create, pay for and place
advertising for you.
- They will schedule appointments to show
your house to prospective buyers even when you are
not there.
- They can weed out buyers who will not
qualify for a mortgage.
- They can refer you to sources for insurance,
inspections, legal counsel and financing.
- They will help negotiate with the buyer.
Top
Choosing an Agent
Since you will be working closely with an agent,
choose an agent with whom you feel comfortable. One
who is responsive to your needs and the needs of
your family, one who compliments your personality,
and one who is prepared to be with you throughout
each step of the home-selling process
- Get referrals from trustworthy family
and friends.
- Seek an experienced agent with a known
reputation – look at credentials, track records
and awards received.
- Select someone who is a member of the
Board of Realtors®.
- Interview at least three agents.
- Find someone who is continuing his/her
education – a Certified Residential Specialist
(CRS), Certified Residential Broker (CRB) or a Graduate
of the Realtors Institute (GRI) – this shows
the Realtor has a long-term interest in the business
and is willing to invest in his/her career
These questions, asked of family and friends
who have dealt with a specific real estate agent, will
help you learn what you need to know about agents:
- What were they like to deal with?
- How hard did they work for you?
- Did they get you a good price?
- Were there any complications?
- Did they always tell the truth?
- Were they always looking out for you
or just interested in getting paid?
- Would you use their services again?
- After interviewing a few agents, ask
yourself the following questions to narrow your choice:
- Which one returned your phone calls?
- Which one was most enthusiastic about
selling your house?
- Which one provided a competitive market
analysis – an in-depth discussion on how the
selling price was determined?
- Which one provided a detailed marketing
plan?
- Which one provided a time frame on how
long it may take to sell your house?
- Which one explained things most clearly?
- Which one made you feel most comfortable?
Top
What to Expect from
a Real Estate Professional
Expect:
- To be treated as a respectable client,
not as a transaction.
- To have your best interests represented.
- To be served selflessly – your
agent shouldn’t be eyeing your wallet.
- Your agent to work as hard for you as
he/she would for himself/herself.
- The highest skills available.
- To have calls returned promptly and
to be kept up to date.
- Your agent to go above and beyond what’s
expected when dealing with problems that may arise.
- Your agent to be a trusted advisor that
you can consult even when the transaction is complete.
Rely on instinct to determine which agent
is right. The right person will have suitable credentials,
a marketing plan you agree with and will make you feel
comfortable.
Top
Setting the
Price
It is human nature for you to want the highest price
for your home. However, to set the right price on your
house, combine an objective evaluation of your property
with a realistic assessment of market conditions.
Study the Comparables
You are more likely to benefit by determining a fair
value and sticking close to it than by asking an
unrealistic figure.
Under pricing can deprive you of money
that’s rightfully yours. Unless rushed, aim for
full market value.
Be cautious of either overpricing or under
pricing if you rely on less-than-solid information.
Know your competition. Learn the offering and selling
prices of similar properties. Find out how long each
took to sell.
Compare your home to others close in age,
style, size, condition and location. Timing is all-important.
If market demand is high, you should be able to increase
the price. Sales prices of homes are published in local
or regional sections of newspapers.
Get an Appraisal
Appraisal opinions are subject to honest dispute. Generally,
an appraisal prepared by an experienced, licensed
professional comes as close to an objective evaluation
as you can get.
Top
Showing your
House to Potential Buyers
Your house should always be available for a potential buyer to see, even
though it occasionally may be inconvenient for you. Your agent will probably
suggest a lock box placed in a convenient location that will make it easy
for other agents to show your home. Most agents will call and give you at
least a couple of hours notice before showing your property.
Top
Leaving the house
Potential homebuyers may feel like intruders if you are home when they visit,
and they might not be quite as receptive toward viewing your home. Visit
the local coffee house, yogurt shop or take the kids to the local park. If
you absolutely cannot leave, try to remain in an out of they way area of
the house and not move from room to room. Allow your agent to do all the
talking – but do answer any questions the agent may ask.
Top
Lighting
When you know someone is coming by to tour your home,
turn on all the indoor and outdoor lights – even
during the day. At night, a lit house gives a warm,
inviting impression when viewed from the street.
During the daytime, turning on the lights prevents
harsh shadows from sunlight and it brightens up any
dim areas. Your house will look more receptive to
the buyers.
Top
Fragrances
Do not use scented sprays to prepare for visitors.
For a pleasant aroma in your house, use a potpourri
pot or turn on a stove burner for a moment with a
drop of vanilla extract on it. It will smell like
vanilla cookies and who can resist a house with fresh
baked cookies.
Top
Pet Control
If you have pets, make sure your agent puts a notice
with your listing in the multiple listing service.
If you know a buyer is coming, try taking your pets
with you while the homebuyers tour your home. If
that isn’t possible, keep Fido and Max in a
penned area in the back yard. Try to keep indoor
cats in a specific room when you expect visitors,
and put a sign on the door. Most of the time, an
indoor cat will hide when buyers come to view your
property.
Top
The Kitchen Trash
Having an empty trashcan, freshly lined with plastic
is much more appealing than having one with last
night’s spaghetti box showing. Go through you
house and make sure all the trashcans are empty,
newly line and have clean odors. It might even be
a good idea to wash the trashcans at least once a
week while your house is on the market. Not only
will it make your house smell clean, it keeps germs
from building up.
Top
Keep the House Neat
and Clean
A nicely made bed, some fresh flowers on the nightstand
will make your bedroom seem very inviting. Walk around
your house just before your buyers come by and pick up
any newspapers, empty glasses or other clutter that may
have made its way into your rooms. Keep everything freshly
dusted and vacuumed. Try your best to have it look like
a model home – a home with furniture but nobody
really lives there.
Top
The Contract
A valid real estate contract must be in writing and be
freely offered by the buyer and accepted by the seller.
All parties to the contract must be legally competent
to do business. Money or other valuable consideration
needs to be exchanged for title to the property.
Keep in mind that if things go wrong, the
buyer could require you to sell your home to him/her
or pay damages. Be familiar with the terms of any contract
you give to a would-be purchaser.
Consider the contract as a whole. Is it
slanted in favor of the buyer? If so, consult an attorney
about making changes. Analyze the document as a series
of paragraphs or clauses, each written to benefit one
party or the other.
Top
Key Elements of the Sales Contract
Price and terms
If a low offer comes your way, remain cool until you've
examined the terms. Nothing evokes a more emotional
response than a low bid. Be realistic and objective
because many properties don't bring full price. Don't
use price alone as a reason not to counter or negotiate.
A first offer may reveal what's most important – price
or terms – to this particular buyer, giving
you the key to begin bargaining.
Top
Condition
of home and inspection
The purchaser should have your home inspected for soundness of construction
and state of repair. Include all mandatory and voluntary disclosure statements
concerning the property's condition, such as known defects in the contract.
Be careful what you guarantee. You cannot be sure the roof won't leak, the
heating system won't go out or any other number of such assurances. Once
the property is sold, you are no longer responsible for it.
Top
Response deadline
You'll be asked to respond to an offer within a specified
timeframe. Try to get as long a response time as
possible. Other offers may come up and you'll want
to buy time to review them and perhaps use one offer
to increase another.
Top
Settlement date
and occupancy
If you have another home under contract, ask for a settlement date that will
enable you to take your sales profits to the next closing. Be realistic;
the buyer of your home probably will need at least 30 to 50 days to arrange
financing and close.
Top
Finalizing
Everything in the offering contract is negotiable. When
everyone has agreed to the terms, initialed the changes
and signed the contracts, you've got an agreement
binding on all parties. All that remains is removing
contingency clauses, arranging financing and clearing
title.
Top
Preparing
for Closing
As the seller, you have relatively little
to do at this point. Avoid common glitches by keeping
abreast of progress on both sides.
Be aware if the buyer is having trouble
getting a loan on the terms specified in the contract.
If he/she is turned down, it could jeopardize the whole
deal and your house could be put back on the market.
A day or so before closing, make sure all the necessary
papers and documents have been gathered and are in
the hands of the right parties.
Things can go wrong. Documents can be misplaced,
delayed or lost. However, common last-minute difficulties
can be avoided.
Parties who should be present at closing
need to be informed of any change in the date, time
or place. They should be reminded a week before closing
and again the day before.
Everyone named on the deed under which
you hold title must sign the new deed by which you
grant title.
Know when and how you will be paid. Don't
expect to walk away from the settlement table with
a check in hand.
If you are buying another property, consider
having both closings at the same office scheduled back-to-back.
That way, the timing of the disbursement is not a problem.
You sign a paper authorizing the title company or attorney
to assign the funds from sale to purchase.
The papers you'll need:
A copy of the sales contract and documentation showing
that any contingencies have been removed or satisfied.
All documents needed to complete the transfer
of title. This may include certificate of title, deed,
correcting affidavits, quitclaim deeds, survey and
title insurance policy.
Prorations for ongoing expenses such as
insurance premiums, property taxes, accrued interest
on assumed loans and utilities (if not shut off between
owners).
Receipts showing payment of the latest water, electric and gas bills.
A certificate from your lender indicating the mortgage balance and the date
to which interest has been prepaid
