Selling Your Home
When it comes time to sell your home, whatever the reason, it is best to separate yourself emotionally and think of your home as a house, a product, that is going to be competing with other houses in the area to attract buyers and be purchased. This article is meant to offer you a few suggestions on how to put your house in the best position to effectively compete.
When to Sell
The time of year makes a difference both in the amount of time it takes to sell and in the actual selling price. Most years, the real estate market picks up in March, with the strongest selling season usually lasting through April, May, June and July. Many prospective homebuyers want to have their children settled in a school district and head out on family vacations by late July or early August. Following the late summer slowdown, real estate sales activity tends to pick up for a second, less vigorous, fall market, which usually lasts until Thanksgiving, when market activity usually slows until after the holiday season. Should you take your home off the market for the holidays? Probably not. You are always more likely to sell your house if it is available for showing.
Start Early
Put your current home on the market as far in advance of purchasing a new one, as you are able. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this happens, ask your mortgage officer about a bridge loan to help you make the double payments. Also, if you find a new home first, you may put yourself in a negotiating squeeze to sell your current home too urgently. So put first things first and get ready to sell.
Keep the domino effect in mind. When people move, sell and buy, there are very often closing and moving dates that must be coordinated. Make sure all agreements about dates are in writing, and protect yourself by negotiating financial penalties for failure to comply. Make sure there are not too many contingency dominos.
Preparing Your Property to Sell
Look at Your Home from the Outside and Work Your Way In
Don't underestimate the importance of drive-up appeal. A well-manicured lawn, neatly trimmed shrubs and a clean walkway all help make a good first impression. Also, repair or replace damaged screens, glass panes, door hardware and other outdoor fixtures.
Invest In Paint
Paint livens up a dingy room and makes it fresh and more appealing. Use soothing colors like white or other neutral tones.
Invite Sunshine
Open your curtains, shades or drapes to let in the sun and brighten the room. Washing windows inside and out will add a sparkle to your room. Also, turn on lamps or accent lighting and replace missing light bulbs. This helps to make the room more inviting. As unfair as it may seem, most buyers make that first impression within a few seconds of entering a home.
Mend Minor Flaws
Check squeaky and hard-to-open windows, doors, doorknobs, drawers and sliding glass doors for ease of operation and provide adjustments or lubrication as necessary. Make sure all your plumbing is in working order, too. And always clean rust and soiled spots, empty trash baskets and deodorize pet and smoking areas.
Decorative Kitchens Can Sell A Home
Create a comfortable atmosphere in the kitchen with colorful curtains, cup towels and place mats. Clear countertops of appliances and add green plants or bowls of fruit. Remember, prospective buyers will look inside cabinets, so make space in cabinets and clean inside and out.
Blend Color And Convenience In Bathrooms
Remove clutter from bathroom vanities and cabinets. Be sure to scrub the sinks, tub, shower, and polish mirrors and chrome. Always clean the floors and walls, and deodorize the area. Put out nice towels, and add some scented soaps or candle.
Living and Dining Areas Reveal Interests
Arrange your living and dining room furniture to create an open friendly effect. Straighten cluttered bookshelves and discard excess papers. Clean all the carpets, and polish the furniture and hardwood floors. By adding a few logs in the fireplace, and magazines, books and flowers to the coffee table, you'll portray an inviting and well-maintained home.
Family Rooms Are For Relaxation
In family rooms, you should store games and sports equipment or arrange them in attractive containers. Your goal is to eliminate the clutter. Turn off all entertainment units and play soft relaxing music. Place furniture in conversational groups, and showcase books and magazines on tables or shelves.
Bedrooms Must Invite Rest And Peace
Avoid a crowded look in the bedroom by removing excess furniture and unnecessary items -- keeping the room light and bright. Attractive, clean and crisp bed linens, with decorative pillows and shams, are important to help add peace and tranquillity to the room. Arrange nightstands to display books, plants and family photos.
Value Goes From Top To Bottom
Permit visitors to see the value of your property from the attic to the basement and through the garage. Remove unnecessary artifacts, and neatly arrange stored boxes and cartons. Darker spaces may be lightened with new paint or additional lights.
Look at your home with a buyer’s eye. Would you buy it? A home that's visually appealing and in good condition will attract potential buyers at first sight.
Choosing an agent?
Some homeowners are hoping to save commission dollars by going it alone and trying to sell their homes themselves. Real estate brokerage fees will vary, depending on the firm you choose, and what services they offer. However, handling your own sale means you will be responsible for the time and expense of placing ads, answering phones and showing your home to strangers. You will need dogged persistence and will have to have a thorough understanding of financial and legal issues, contracts, disclosures, and the current local real estate market. What's more, buyers who know you are saving on a real estate commission usually offer less for your home, wiping out the financial incentive to do it all yourself.
Your home is one of the largest investments you have, it makes sense to let a real estate professional, a REALTOR®, manage the sale. The term REALTOR® is an exclusive, registered trademark that can only be used by agent members of the National Association of REALTORS®, (NAR). Membership is based on an individual’s demonstrated competence in real estate matters and high standards of business character and conduct. The NAR Code of Ethics is included as an addendum to this guide. Also, be aware that a REALTOR® probably knows a lot more about the business of selling a home than you do. Here are some of the advantages a professional REALTOR® offers:
1. REALTORS® represent most serious buyers.
2. REALTORS® list you property on the Multiple Listing Service.
3. REALTORS® can help determine market value and best pricing.
4. REALTORS® bear the expenses of marketing your property.
5. REALTORS® only get paid for producing results for the seller.
6. REALTORS® can provide profitable marketing preparation.
7. REALTORS® have broad-based current market exposure.
8. REALTORS® help assure seller convenience and security.
9. REALTORS® are professional at showmanship.
10. REALTORS® can ask personal questions the seller can't.
11. REALTORS® are trained to handle impatience.
12. REALTORS® understand the seller's wants and needs.
13. REALTORS® can negotiate without conflict.
14. REALTORS® can provide the seller with closing costs/net proceeds estimates.
15. REALTORS® have financing skills.
16. REALTORS® can help avoid legal problems.
If you decide to sell through a real estate professional, ask friends and neighbors for recommendations. Select a well regarded local brokerage. Talk to several agents before picking the one you want to work with. Ask about their training and licensing and background. Look for strong business skills. Taking a walk through your home with an agent should give you a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home. Don't sign with an agent just because he or she suggests the highest asking price. Find out just what you get in return for their brokerage commission. Review the details of their marketing plan for your home prior to listing. Discounted commissions usually mean discounted service. It costs a lot of money to reach a broad base of potential buyers. The right brokerage and a good agent can save you a lot of money by bringing the most buyers, then negotiating the best price and terms of sale.
Determining a Fair Price
Sure, you want to get top dollar for your home. Also, you don't want to scare off potential buyers with a price that's too high. Setting the initial listing price too high may cause your home to just sit there on the market for months. Reducing your asking price later on may cause buyers to ask if there is something wrong with your home. Here are some of the issues to really think about when deciding on the list price for you property.
* Location, Location, Location.
* Property Condition, “Top Dollar Demands Top Condition”.
* Supply and demand in your area.
* How soon do you need to sell?
* Local schools and community features.
* Average home prices in the neighborhood.
* Your home's extras-pool, fireplace, central air, etc.
Either a competitive market analysis or an appraisal can help in determining a home's price range. Your real estate agent will be happy to provide a competitive market analysis, an market estimate of value based on comparable sold properties, comparable active listings, pending sales and failed to sell properties in the neighborhood. Be sure that you are researching properties that are similar in size, construction and location. An appraisal, which generally costs $300 to $400 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.
To determine the value of your home, you probably will want the advice of a real estate agent or appraiser. Ask an agent to prepare a market analysis for you, showing the recent selling prices of three neighborhood properties comparable to your own. The agent can help you adjust for the unique features of your own property.
Qualifying a Buyer
Either you or your agent will want to quickly weed out potential buyers who cannot really afford to purchase your home. Buyer qualification documents and source of funds information from credible sources will help sellers avoid experiencing time wasted with unqualified buyers.
Steps to Completing the
After the property is prepared, listed, marketed, shown and connected with a willing and able buyer, the process for completing the transaction is as shown in the 16 steps below. Whether it be handled by the seller or the seller’s agent, the process needs to be closely monitored and managed to successfully complete the transaction.
1. Buyer and Seller reach agreement and sign earnest money contract.
2. Selling Agent delivers contract and buyer's earnest money check to Title Company and earnest money is deposited into trust account with Title Company.
3. Buyer's option check deposited with Seller and option period begins with property inspections.
4. Title Company opens file, begins title search, issues title commitment binder to Buyer's lender, orders property tax information, and obtains loan pay-off information from Seller's lender.
5. Buyer makes loan application (if loan involved); appraisal and credit report are ordered and Buyer verifications processed.
6. Coordinate expiration of Buyer's option period and any repairs.
7. Buyer orders homeowner (hazard) insurance policy; insurance company commits to insure.
8. Appraisal of property completed; verify any lender-requirements of property and re-inspections.
9. Lender prepares Buyer's loan package and submits for final underwriting approval.
10. Loan approval granted and lender's closing department prepares documents and sends to Title Company.
11. Verify Buyer's loan approval; any lender-required conditions to be met by Buyer; survey ordered by Title Company.
12. Buyer and Seller agents coordinate parties, closing date and time.
13. Title Company receives lender's closing instructions, prepares additional closing documents, and the HUD-1 closing statement.
14. Buyer does final walk-through inspection of property and obtains cashiers check for closing costs and balance of down payment.
15. Title Company closes the sale, returns or faxes required documents to Buyer's lender for approval. All loan companies require this before disbursement of funds. The Title Company receives and funds all money from loan company, including payment of all past due taxes, termite inspection, mechanical inspections, any bank charges, attorney's fees, professional real estate fees, title company fees and any other accrued expenses in connection with the closing. The Title Company records the legal documents in the office of the county clerk. A recorded deed is mailed to Buyer by
16. The transaction is funded and closed. The seller gets their money and possession is given to Buyer.
