Moving
day was barely over before you started wondering what it would be like to
try and sell your home someday. What will the house be worth when you
decide to sell? What
will you need to do to get your home
ready? Now the time to put the house on the market has arrived, and you've
already started looking for you next home. But selling a house can be hard
work, especially if you expect top dollar on the sale. Luckily, all it
takes is some time and effort to ensure a successful sale. You don't even
need to spend a lot of money prepping.
Below are some guidelines to keep
you on track:
Set goals with time and
money in mind
What are you willing to do to ensure
you get the highest possible price? Can you spend a lot of time and
effort, or would you rather have a quick, hassle-free sale, and possibly
only get out of the home what you put into it? Is it more important
that you sell the house quickly or get a high price? Talk you your spouse
to see if you have the same goal in mind.
You also need to have a plan for
where you will go when you sell the house. Sales sometimes close in a
matter of weeks, especially in a hot housing market. Would you consider an
offer that would require you to move out on a few weeks' notice? Where
would you go? Take into account, you won't be able to be as flexible about
the closing if you plan to have a double closing - which is when you try
to time the sale of your house with the purchase of you next home.
Choosing whether or not to
hire a real estate agent
Going solo isn't for everybody.
There are pros and cons to hiring a real estate agent, but it's always
worth at least trying to sell you home without a broker.
The price is
right
Set a realistic price by evaluating
the market in your area. Check the price of similar homes in your town or
hire an appraiser. A real estate agent can also provide information on
comparable homes that have sold in your area. Do some research and make
sure you set an attractive price. An overpriced home can sit on the market
for too long and go stale, but you also don't want to feel you sold
yourself short. A real estate agent will suggest a price, but you should
still examine the price on your own. Brokers have been known to set a high
price to get your listing and then recommend that you lower it later.
Assess your homes
problems
As a seller, you must disclose any major problems or
flaws with your home or property. Disclose such problems as dry rot,
termites, asbestos, septic problems, or any anticipated developments that
might lower the value of your home. The disclosure requirements vary by
state, but the repercussions are serious. You could be sued for fraud if
you fail to mention
that leaky roof or flooding
basement. Most buyers will have the home inspected before closing, so be
honest. There are no benefits to trying to hide problems.
You may even want to have the home
inspected before you set the price, especially if you are selling an older
home that you have lived in for years. If your home requires some TLC you
can always sell the house "as is," attracting buyers who are interested in
a fixer-upper. You also might want to fix small, inexpensive things, like
a broken refrigerator or cracked window, so they don't enter into
negotiations.
Prepare your house for
showing
While you will probably not want to invest in major
repair work before a sale, small cosmetic touches can make a big
difference and even increase your home's value by thousands. Add a row of
flowers to the walkway to improve "curb appeal." Consider trimming the
shrubs and doing some exterior painting. Pay special attention to the side
of the house that shows from the street and the front door. Think about
painting inside. You want your buyers to start imagining their belongings
and style in your home, so neutral paint works best. The small things
really make a difference, so make sure your home has clean windows and
polished fixtures. Cut back on clutter and remove extra chairs and tables
to make rooms look more spacious. Make sure your kitchen counters are
clear. Final touches like a few plants and a potpourri pot will complete
your home.
Not everyone makes his or her bed
every day, but when selling a home it is important that you keep your
house meticulously neat. Try your best to have it look like a model home.
When a buyer is in the house, turn on all the lights, fluff up pillows,
light a fire in the winter and make sure you've emptied the kitchen trash.
Decide what you would like
to include in the sale
You need to decide what will be
included in the sale before you start showing your home. If you want to
take your Bosch refrigerator and Fisher-Paykel washer and dryer with you,
tell serious buyers before negotiations start. Leaving behind the custom
window treatments and cushions designed for a window seat could make an
attractive selling point.
Assess your
finances
Look into exactly what you'll make
from the sale. Identify the amount you'll owe the bank. If you used a real
estate agent, add the standard commission, which is usually 6% of the sale
if you go full-service. The good news is that most home sales are now tax
free if you have owned and used the property as your primary residence for
at least two years. As a bonus you may get some money back at closing for
prepaid local taxes, home insurance or fuel.
Find an attorney
Talk to an attorney early in the process, even though
you will most likely not need one until you draw up a contract of sale. An
attorney can answer any questions you have about negotiating with buyers
and will be very helpful if you are selling the
house on your own. If you use a real estate agent, it's a good idea to
have a lawyer to look at the listing agreement before you sign.
A new
home
Sellers are usually advised not to
start looking for a new home until a sales contract is signed since you
don't want to be stuck with two homes if the sale falls through. Plus,
trying to perfectly time two closings can make your experience stressful.
However, if you have already found your dream home and don't want to pass
it up, you have some options. A "bridge loan" will use the equity in your
old house to buy a new one. You could also make the purchase of you new
home contingent on the sale of your old home. That way if the sale of your
old home falls through, you are not obligated to buy the other
house.
