Home Seller Tips and Information

If you´ve decided to sell your home, chances are you´re caught up in a host of emotions. Get a pre-inspection! You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures. Whatever turbulent feelings you´re experiencing right now, there are plenty of practical matters that need your attention. Keep in mind the following considerations to help the whole process go more smoothly.

Time Becomes Money

It´s a good idea to place your home on the market as far in advance as possible of purchasing a new one. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you choose to accept a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. Shop around for the best terms.

Keep in mind that when people move, sell and buy; there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.

Check Your Curb Appeal

A home that’s visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to view your property through an outsider´s eyes.

• Are the lawn and shrubs well maintained?
• Are there cracks in the foundation or walkways?
• Does the driveway need resurfacing?
• Are the gutters, chimney and walls in good condition?
• Do the window casings, shutters, siding or doors need painting?
• Are garbage and debris stored out of sight?

Inside the Home

Strong curb appeal will lure potential buyers inside, where you have to live up to their expectations. Fortunately, there are plenty of easy improvements you can make to your home´s interior without spending a lot of money. Cleaning is No. 1. Your windows, floors and bathroom tiles should sparkle. Make sure you have clean heating and air conditioning filters. Shampoo dirty carpets; repair dripping faucets and oil squeaky doors. It may not seem fair, but a peek in the oven may be the hallmark by which a buyer judges how well you have kept up your home.

Remove unnecessary clutter from the garage, basement, attic and closets. If your home is crowded with too much furniture, consider putting some things into storage. If a room needs a fresh coat of paint, use a neutral off-white. Think, too, about how your home smells. You may be used to the smell of a pet or cigarettes, but such odors can be a strong turn-off to others. Finally, set a mood for the buyer. Make your house homey with live flowers and fresh guest towels in the bathroom. Place scented potpourri around the house or, on the day you´re expecting a potential buyer; pop a batch of frozen cinnamon rolls into the oven for a welcoming aroma.

Remember that cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It´s attention to the basics -- anything that says ´´this home has been carefully maintained´´ -- which will help you get the price you want.

Go at It Alone or Choose an Agent?

Some homeowners decide to sell their homes themselves in order to save the commission charged by a real estate agent. The commission rate may vary, depending on where you live or what agency you choose. However, handling your own sale means you will be responsible for placing ads, answering phones and showing your home to strangers. What´s more, buyers who know you are saving on an agent´s commission may offer less for your home, wiping out the financial incentive to do it all yourself.

You may decide an agent´s commission is a bargain the first time that a would-be buyer shows up unannounced at dinnertime. Also, be aware that a real estate agent probably knows a lot more about the business of selling a home than you do. Here are some of the advantages professional agents offer:

• They will help you establish a fair asking price for your home.
• They will promote your home to other agents and list your property in multiple listing services. A multiple listing service is a book or computer database that all real estate agents that subscribe to the service can access. Your home will get exposure to all those agents, one of whom may have the perfect buyer.
• They will create, pay for and place advertising for you.
• They will schedule appointments to show your home 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 you negotiate with the buyer.

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.

Setting a Fair Price

Naturally, you want to get top dollar for your home. But, at the same time, you don´t want to scare off potential buyers with a price tag that´s too high. Setting an artificially high price may cause your property to languish on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider in pricing your home.

• Your location
• Economic conditions
• Supply and demand in the local housing market
• Seasonal influences
• Local schools
• Average home prices in the neighborhood
• Your home´s extras -- pool, fireplace, central air, etc.

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.

Either you or your agent will want to quickly weed out potential buyers who cannot really afford to purchase your home. A number of factors will help determine whether or not you are wasting your time negotiating a sale.

• The buyer´s debt and credit history
• The buyer´s current income and employment
• The buyer´s cash position and availability of a down payment
• The length of time the buyer needs before closing on your home
• How interested the buyer appears to be in your home versus others

To beat the competition today, you simply must avoid the mistakes other sellers are most likely to make. Then you'll sell faster and get the best price, too! Here are seven of the most common mistakes other sellers make-but you can avoid!

1. Pricing Incorrectly.
   
   Every seller wants to realize as much money as possible when he sells his home. But a listing price that is too high often gets the seller less than a price that is at market value. If your house is not priced competitively, people looking in your price range will reject your home in favor of other, larger homes for the same price. At the same time, the people who should be looking at your home will not see it because it is priced over their heads! Overpricing usually increases time on the market, and that adds to the carrying costs. Ultimately, many overpriced properties sell below market value. To help avoid this, we can prepare an extensive Market Evaluation of your home.
   
   
2. Failing to "Show Case" the home.
   
   Buyers look for homes, not houses, and they buy the home in which they would like to live. This is why we stage our listings. We assess a home starting right at the front door and recommend the necessary changes needed to get you top dollar!
   
   
3. Using the "Hard Sell" during showings.
   
   Buying a house is an emotional decision. People like to ´´try on´´ a house and see if it is comfortable for them. It´s difficult for them to do that if you follow them around pointing out every improvement that you made. It may even have the opposite effect you want, by making them feel they are intruding on your private space. Resist the temptation to talk the entire time a buyer is there, and let them discover things on their own. Try a tasteful sign to point out some hidden amenity that they might miss.
   
   
4. Mistaking lookers for buyers.
   
   For Sale by Owners always get more activity than homes with an agent. No questions about it. Realtors will only bring qualified buyers, and these will be less than if you open your front door to every one who walks down the street. A qualified buyer is one who is ready, willing, and able to buy your home. We find that most people who go looking at For sale By Owners are just starting to think about moving. They may be good buyers, but they´re just 6-9 months away from being ready. They don´t want to bother an agent yet, so they call the ´"By Owner´" ads to get a feel for what´s available. They may have a home to sell first, or may need to save some more, or may have credit that needs fixing. When everything is in place, that´s when they go out looking with a Realtor. An agent will ask a buyer how much he can really spend for a house, how much he has to put down, how good his credit is, how much he can pay each month, how much he will realize (realistically) when he sells his present home and about a dozen other questions. But unless your Realtor finds all the facts first, you must ask all these questions before the buyer crosses your threshold, otherwise, you may have a parade of Sunday afternoon shoppers with a dream of owning a home someday.
   
   
5. Not knowing your rights and obligations.
   
   Selling Real estate is extensive and complex; the contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through, or could cost you thousands for repairs, inspections, and remedies for title defects. You must know whether the property can legally be sold ´´as is´´, and how deed restrictions and local zoning will affect the transaction. If there are defects in your title, or if your property is in conflict with local restrictions, you must remedy them before you can sell your home.
   
   
6. Limiting the marketing and exposure of the property.
   
   The two most obvious marketing tools (open houses and classified ads) are only moderately effective, Surprisingly, less than 1% of homes are sold at an open house. Agents use them to attract future clients, not to sell the house! Advertising studies show that less than 3% of people purchased their home because they called on an ad. And if a machine answers, most callers just hang up without leaving a message The right Realtor will employ a broad spectrum of marketing activities, emphasizing the ones he believes will work best for you and your particular property. There are dozens of more effective ways to find buyers than just open houses and advertising.
   
   
7. Choosing the wrong Realtor, or choosing him/or her for the wrong reasons.
   
   It´s likely that you don´t interview people very often. And yet in order to find the Realtor, who is right for you, you may interview several. The quality of your home selling experience is dependent upon your skill at selecting the person best qualified.