The process of selling a home can differ from state to state. Before putting your house on the market, there are some important steps you must take to get the most from your investment and to protect your interests.
Step One
Get pre-approved to buy another house before you sign a contract to sell your own home. If your financial situation changed since your last purchase, it’s possible you may no longer qualify for another loan. You may also be unable to sell your house for a price that will allow you to buy another house you want. This way, you won’t end up renting or buying a house you don’t really want. When applying for a pre-approval, be sure the lender discloses the estimated costs required for you to purchase a new home, such as: the loan price, down payment, new insurance, title and inspection fees.
Step Two
Call your lender to check the mortgage pay off and calculate the estimated proceeds. First, you will need to subtract the mortgage pay off from the fair market value of your home. Second, you will need to subtract the costs to sell your home from the remainder in order to get an idea of the proceeds you can expect to be paid at closing.
Step Three
Determine your homes fair market value. Most real estate agents will gladly help you determine the market value as a courtesy and may also give you helpful hints as to what you can do to increase the value of your house. You may also consider hiring a licensed appraiser, which you will have to pay for out of pocket, to perform an appraisal on the subject property.
Professional appraisers will provide you with a detailed report that will usually include: the neighboring property values in comparison to your own, an evaluation of the real estate market in your area, harmful issues to the property value and any defective qualities.
Step Four
Estimate what it will cost you to sell your house. If you are using a real estate agent, you may have to pay their commission. If you are planning to sell by owner, then you must consider the advertising, signs, attorney fees, closing agents and other possible fees involved. These other fees may include: appraisal, inspections, surveys, taxes and home owner association fees. Real estate agents can give you a more precise estimate of the closing costs and any other fees that may be involved. Real estate agents are professionals that deal with these transactions every day and can prove to be a valuable asset to you.
Step Five
Make repairs. Whether these repairs can be done by you or by hiring a contractor, they should be completed before trying to sell your home. If there are too many repairs that need to be done, your home will be considered a fixer upper. You want to get the most out of your house and dissuade potential buyers from submitting insultingly low offers. These repairs can range from fixing a broken window, adding a fresh coat of paint, replacing or repairing the flooring, to spackling a hole in the wall. The larger repairs may include fixing a damaged roof or repairing damaged siding. Other issues that can deter a potential buyer is mold and mildew stains and odors, leaky basements, lead based paint, broken gutters, location or type of circuit breaker, plumbing problems and old or faulty electrical wiring.
Step Six
Before you show your house, do some spring cleaning, regardless of what season it actually is. Organize your shelves and closets, wash the crayons off the wall, dust off the blinds and window sills, clean away the cob webs and wash all windows and appliances. You will want to make everything as spotless as possible and remove any offensive odors and clear the clutter. You will need to present your home in a clean and appealing way to the potential buyers.
You may also need to work on the exterior part of the house by scraping and painting porches and windows or maintaining an appealing lawn. You can also add low maintenance decorative flowering plants and shrubs to dress up your yard.
Show Time
Now that your home is ready to show, make it accessible to real estate agents with potential buyers at all times. Most buyers feel more comfortable being shown a house when the owner is not present. If you decide to take a walk while your house is being shown, make a note to the agent if there are any pets on the premises. You will want to be sure your cat doesn’t sneak out the door and your dog (if you have one) is securely locked up in a crate or in the back yard. You want everything to go as smoothly as possible.
If you’re going to be having an open house in an effort to expose your home to more potential buyers, there are some things you should do in order to make a difference in how your home shows.
Clean It Up
Making sure the home is absolutely clean is first and foremost when having an open house. Special attention should be paid to the kitchen and bathroom areas. Bathing areas and toilets should be sparkling and the sinks should be clean and dry. The other furnishings should also be clean and well kept. All of the furniture should be dust-free and the floors should be cleaned and vacuumed.
Clear Out the Clutter
All personal items and knick-knacks should be completely out of sight. Photographs and mementos should be packed away. Countertop appliances should be stored so countertops appear free from clutter. All clothing and shoes should be neatly in their place and away from view of any potential buyers making their way through the home. No personal items of any kind should be in the way of a buyer envisioning themselves in the home.
Make Some Room
Make sure there is plenty of open space in all of the rooms. Where possible remove an item of furniture to create a spacious feel. Choose the most worn pieces of furniture to remove. Less furniture in a room will make it appear less cluttered and easier for a potential buyer to see themselves in the home. The ability of a buyer to see how they would fit into the surroundings is the key to having a successful open house.
Pay Close Attention to the Details
Attention to detail does not go unnoticed by buyers in an open house. Make certain everything is functioning properly. All the light bulbs in all lighting fixtures should be in working order. Cabinet hinges and drawers should open smoothly without squeaking, as should all of the doors in the home. Walls should be free from holes or marks from furniture. Buyers will inspect every detail, so make sure you have inspected it first. Remember things like fresh flowers can completely change the feel of a room.
Comfort Food
Having a spread of food and refreshments creates a festive atmosphere. Potential buyers are looking for a space they can walk into and feel like they are home. Food has an amazing way of making everyone feel more at home. Bake some cookies just before your open house. The homey scent will be a pleasant smell to your visitors.
Just taking the time to follow these quick and easy tips will help ensure you get the best possible response from your open house. With a minimal amount of time and effort you can make a big difference in the outcome of your open house.
Getting your house ready for sale entails so much more than just sticking a for sale sign in your front yard. To improve your odds of an efficient, top-dollar sale, acquire a good house inspection to find challenges before they turn out to be deal killers, complete the remedial and cosmetic work ahead of when getting your property available on the market, and time the promoting of your home to correspond with a strong selling season in your area.
Look for a good real estate broker. Promoting the house usually requires that you employ and work with various real estate experts (like real estate brokers, property inspectors, escrow officers, and, possibly, tax, legal, or financial advisors). For those who put the correct members on your team, you optimize your possibilities of an effective sale. Make sure to diligently examine as well as negotiate the real estate broker’s listing plan, that is a personal services contract among you and a real estate firm. For many sellers, a 90-day listing that puts your home in the local multiple listing service is best. Remember that commissions as well as other terms of the listing agreement are negotiable.
Work with a stager. This is somebody who will come into your home and show you how to de-clutter and arrange your home for sale. The options they make will certainly transform your house into a real showplace. Many stagers have a variety of furniture and accents to rent during the duration your residence is for sale. Your real estate broker can help you find a good stager.
Be sure to divulge any issues you have present in your home. If you have any doubts whether to reveal a defect or problem with your property, err on the side of disclosure. Otherwise, you raise your (and your real estate broker’s) likelihood of being party to a lawsuit initiated by disgruntled buyers.
Probably the most critical questions you’ll have when selling your house is what is the value of your home? To get the answer, consider sales of houses comparable to yours in size, age, condition, and location (a good agent can help you with all of these issues). Price your house right, and your chances of finding a buyer will increase dramatically because informed buyers recognize the value having seen other houses with unrealistically high asking prices. To produce the most interest in and competition for your house, you should produce a comprehensive, well-coordinated marketing and advertising campaign plan. Working with the right people may help you obtain your goals for selling the house.
If you have any questions about the market, your home, or the best ways to get your home ready to put on the market for sale, contact us. We’ll be happy to assist you in any way we can.
If you’re selling a home, you’re probably considering a real estate agent. Then again, you might be thinking how much you might save by selling your home yourself.
Real estate agents have their good points, and selling a home privately is not for everyone. Before you try, make sure you read the following tips.
Should I use a real estate agent?
There are many benefits to using a professional real estate agent. First of all, real estate agents are professionals. They have training in how to market and sell your home. They can advise you on realistic prices, help you make deals, and provide general expertise.
Real estate agents also network among each other. They have access to online and offline advertising you won’t be able to use, which means they can sell your house more quickly and expose it to more people. Also, if someone approaches a real estate agent looking to buy a house, they are less likely to contact someone selling as a for sale by owner (FSBO) unless they are working as excluisive buyer agents — they will network with each other to maximize fees.
So using a real estate agent probably means your house will sell more quickly and efficiently. If you’re in a hurry, this might not be the time to mess around with private sales.
If, on the other hand, you have plenty of time, it can’t hurt to put your house on the market privately first — you can always contact an agent later if it doesn’t sell. You’ll save money on real estate fees and be able to offer your home at a lower price since everything you collect will be profit.
However, keep in mind, if a home is on the market for a long time as a FSBO, then you list it, it does take away some of the newness of the listing in the fact that it’s already been for sale for some time.
If you decide to go it alone, be sure to ask a realistic price, advertise everywhere you can, and tell everyone you know that you’re looking to sell.
Home staging is when you prepare your home for sale, inside and out, focusing on design and overall appearance. However, many homeowners believe that in order to sell their home, they will have to spend big bucks to get it into shape to attract potential buyers.
It’s time to debunk that myth. Not everyone can afford to do a major makeover as seen on home improvement shows.
There are many ways to set the stage for a smooth and quick purchase of your home on a budget, with some time and creativity. Learn the benefits of staging your home and the ways you can do so without having to tap your retirement fund!
- New Perspective: The home staging process makes you think like a buyer, which is a valuable tool when trying to present your home from the outside looking in. Ask yourself, “would I buy my house again as is?”
- Cleanliness and Organization: Staging forces you to clear out cabinets, clean shelves, go through closets and pack up knick-knacks. You’ll have to do this anyway when you move, but now it serves a dual purpose – saving you last minute stress and enlarging your rooms by removing clutter.
- Reduced Market Time: Staging makes it more likely that your house won’t be on the market forever. Staging makes the home more desirable and can help you achieve a sale faster, which allows you to move on.
- Opportunity to Showcase Worth: If you are selling your home in a buyer’s market, it’s easier to defend your asking price when your home stands out. Proper home staging can help you display all the reasons why your home should become theirs at a price that’s comfortable for everyone.
Home staging is not just reserved for the inside. Otherwise known as curb appeal, the outside of your home should make potential buyers want to see the inside.
Here’s where the outside-looking-in perspective kicks in. Start by standing at the curb and jotting down what you see. If this wasn’t your home and you were simply walking by, what is your first impression? Do you see shutters with chipped paint? Does the area around the porch look dull and in need of some color?
Remember, home staging is about presenting your home in a way that appeals to a broad range of people so that you can sell your home quickly and for a price that makes you happy!