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.
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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’.
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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.
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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 your 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.
Information provided compliments of Stewart Title.
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