Selling Your Home: 8 Steps to Success.

Eric Deeter — Sat, 15 Aug 2009 23:56:39 +0000

Define your needs. Some of you may be thinking, “What are you talking about? I need to sell my home.” But you should stop and ask yourself, “Why do I want to sell and what result do I really want?” For instance, you might have a growing family and need something larger. You may have kids going off on their own and want to downsize. Relocation for a job is kind of a no-brainer. But even in this case, you may want to list that you need to sell in a certain time-frame. Work with your real estate agent to plan the best way to achieve your objectives and set a realistic time frame for the sale.
Set the price. This is the time you should listen to your realtor. Your home will generate a lot of attention in the first several weeks it is listed. Setting a fair asking price right out of the gate will generate the most attention and activity from other real estate agents and buyers. Be sure to take into account the condition of your home, how much comparable homes in your neighborhood are selling for, and of course what the real estate market is like in your area. It’s hard to be objective when you’re doing this step, but listen to your agent. He will know what comparable homes are selling for in your neighborhood and the average time those homes are sitting on the market. If you want a truly objective opinion about the price of your home, you could have an appraisal done. This typically costs a few hundred dollars. Remember: You’re always better off setting a fair market value price than setting your price too high. Studies show that homes priced higher than 3 percent of their market value take longer to sell. If your home sits on the market for too long, potential buyers tend to think something’s wrong with it. And, when this happens, you will have to drop the price below market value to compete with newer, reasonably priced listings.
Get your home ready to sell. If you’re like most of us, your home isn’t in “showroom” condition. For heaven’s sake, you live in your house. Like me, you tend to overlook piles of boxes in the garage, broken porch lights, and doors or windows that stick. You’ve got to get to work and get your house in tip-top shape. The condition of your home will affect how quickly it sells and the price the buyer is willing to offer. First impressions are the most important. Most buyers will decide not to buy in 2 – 5 seconds after walking in the door. If the first impression passes muster then they will take a closer look and may then decide to buy. Your real estate agent can help you take a fresh look at your home and suggest ways to stage it and make it more appealing to buyers. If your home has too much “personality” it will be harder to sell. Removing family photos, mementos and personalized décor will help buyers visualize the home as theirs. * Make minor repairs and replacements. Small defects, such as a leaky faucet, a torn screen or a worn doormat, can ruin the buyer’s first impression. * Clutter is a big no-no when showing your home to potential buyers. Make sure you have removed all knick-knacks from your shelves and cleared all your bathroom and kitchen counters to make every area seem as spacious as possible.
Get the word out. Now that you’re ready to sell, your real estate agent will set up a marketing strategy specifically for your home. There are a lot of ways to get the word out, including: * The Internet * Yard signs * Open houses * Agent-to-agent referrals * Direct mail marketing campaigns. In addition to listing your home on the MLS, your agent will use a combination of these tactics to bring the most qualified buyers to your home. Your agent should structure the marketing plan so that the first three to six weeks are the busiest.
Getting an offer. When you get a written offer from a potential buyer, your real estate agent will first find out if the buyer is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, taking care to understand what is required of both parties to execute the transaction. The contract, though not limited to this list, should include the following: * Legal description of the property * Offer price * Down payment * Financing arrangements * List of fees and who will pay them * Deposit amount * Inspection rights and possible repair allowances * Method of conveying the title and who will handle the closing * Appliances and furnishings that will stay with the home * Settlement date * Contingencies. At this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it. Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with your real estate agent right away.
Negotiations. Most offers to purchase your home will require some negotiating to come to a win-win agreement. Your real estate agent is well versed on the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. Your agent also knows what each contract clause means, what you will net from the sale and what areas are easiest to negotiate. Some negotiable items: * Price * Financing * Closing costs * Repairs * Appliances and fixtures * Landscaping * Painting * Move-in date Once both parties have agreed on the terms of the sale, your agent will prepare a contract.
Prepare to close. Once you accept an offer to sell your house, you will need to make a list of all the things you and your buyer must do before closing. The property may need to be formally appraised, inspected and perhaps repaired. Your real estate agent will be your advocate when dealing with the buyer’s agent and service providers. Depending on the written contract, you may pay for all, some or none of these items. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the home, the terms set out in the contract will determine your next step. You or the buyer may decide to walk away, open a new round of negotiations or proceed to closing. Important reminder: A few days before the closing, you will want to contact the title company that is closing the transaction and make sure the necessary documents will be ready to sign on the closing date. Double-check the closing time and location. Also, start making arrangements to move.
Close the deal. “Closing” refers to the meeting where ownership of the property is legally transferred to the buyer. Your agent will be present during the closing to answer questions and make sure everything goes as planned. By being present during the closing, he or she can mediate any last-minute issues that may arise. After the closing, you should make a “to do” list for turning the property over to the new owners. Here is a checklist to get you started. * Cancel electricity, gas, lawn care, cable and other routine services. * If the new owner is retaining any of the services, change the name on the account. * Gather owner’s manuals and warranties for all conveying appliances.

Eric Deeter » pricing

Selling Your Home: 8 Steps to Success.