Thinking of Selling?
Ten Steps to an Easy Sale
- Get Pre-Approved for a Home Loan
- Check Your Mortgage Payoff
- How Much Is the House Worth
- Estimate Your Costs to Sell
- Determine Your Costs to Acquire a New Home
- Calculate Your Estimated Proceeds
- Make Necessary Repairs
- Get the House Ready to Show
- Kill mold and mildew on the house, sidewalks, roof, or driveway.
- Stow away unnecessary garden implements and tools.
- Clean the windows and gutters.
- Pressure wash dirty siding and dingy decks.
- Keep sidewalks and driveways clean.
- Edge sidewalks and remove vegetation growing between concrete and bricks.
- Mow the lawn regularly. Get rid of weeds.
- Rake and dispose of leaves, even if your lot is wooded.
- Trim tree limbs that are near or touching the roof.
- String low voltage lighting along your drive way, sidewalks, and around landscaping elements.
- Add a decorative street lamp or an attractive light fixture to a front porch.
- Solar versions of outdoor lights are quick and easy to install, but only work when they receive full sun each day.
- Lighting that's visible through front windows should enhance the home's appearance.
- Get Psyched Up to Let People In
- Find a Listing Agent, The Questions You Should Ask
- Which agency's ads or Web sites are the most appealing?
- Which agencies consistently feature virtual tours on their Web sites?
- Do house descriptions make you want to schedule an appointment?
- Does the agency provide multiple photos of homes? Are they of good quality?
- Which agencies advertise in multiple publications? On TV?
- Was their Web site easy to find when you searched for homes for sale in your town?
- Ask your friends for agent referrals. Have they worked with an agent who did a great job?
- Once you have a list of agents, make an appointment with each one to learn more about their services.
- Ask agents to explain the marketing tactics that will be used to sell your house, including print, Web and other types of advertising (you'll already know much of this if you've done your research).
- Will the agency place your house in the Multiple Listing Service (MLS) immediately? Making your home available to every affiliated agent greatly increases the buyer pool.
- Find out if the agency belongs to more than one MLS. In some areas there's an overlap of popular neighborhoods, making multiple memberships important.
- What's their commission rate? How does it compare to that of other agencies that offer the same services?
- Find out how long they want you to list with them, keeping in mind that the time is usually negotiable.
- What's the average length of time it takes to sell a house in your area? What is their company's average?
- How long has the (potential) listing agent been licensed to sell real estate?
- What percentage of the agency's listings sell during the initial listing contract period?
- Buyer feedback is an important tool. If everyone makes the same negative comment, you should consider working on the problem. How often can you expect to receive buyer feedback? Weekly, twice a month, after every showing? Will the feedback be written?
- Will the agent hold an open house for other real estate agents? For buyers?
- How are showings handled? Will you receive advance notification that someone is coming? How much notice is typical? You can put restrictions on showings--certain days or times are off-limits--but that may cut down on the number of times your home is shown.
- If you have pets, make sure the agent is committed to a plan that ensures their safety. If it's a dog that bites, you will need a plan for buyer safety, too.
- Does the agency use lockboxes? Many agencies place a key inside a box that is secured to your home. Ask the agents to explain how it works.
- If your new home will be in the same area, ask the agent any questions you might have as a buyer. You may choose to use the same agent to buy and sell.
I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.
Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.
How To Start Researching:
Start looking for two types of real estate: houses that seem to match the one you'd like to buy and houses that seem similar to your current home. Pick up free For Sale publications outside the grocery store, or wherever you find them.
Search the Internet for homes for sale in your area and read real estate ads in your local newspapers. You won't find house locations without making phone calls, but browsing the general market is a good start.
Make a call to your lender to check the payoff for your current home mortgage. You'll need the figure to complete Step 6.
Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy, but you might prefer to order an appraisal. Click here to get a free evaluation. Do both of the above if you want to be sure the price is right.
Real estate commission if you use an agency to sell. Advertising costs, signs, other fees if you plan to sell by owner. Attorney, closing agent or other professional fees. Excise tax for the sale. Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and fuel tank rentals. Any other fees typically paid by the seller in your area (surveys, inspections, etc.)
If you are unsure of costs, ask a real estate agent. Agents deal with transactions every day and can give you a very close estimate of seller closing costs.
Total your costs to acquire a new home: moving expenses, loan costs, down payment, home inspections, title work and policy, paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for pre-approval.
Deduct your mortgage payoff from your home's fair market value.
Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.
Will your closing proceeds cover your costs to acquire a new home? If not, do you have cash or other funding to make up the difference?
Make all needed repairs unless you want the house to be regarded as a fixer-upper. I'm not referring to cosmetic updates, but to items in need of repair. Anything that's obviously broken gives potential buyers a reason to submit a lower offer.
Hot spots inspectors look for include: mold and mildew, wet crawlspaces, deteriorated roofs.
Most houses need at least a little spiffing up before they are shown to potential buyers. Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances, and a clutter-free atmosphere are essential if you want the house to appeal to buyers.
Some of the things you can do include:
If you're listing with a real estate agent, she'll no doubt ask you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding.
Unless there's a real reason for it, don't ask your agent to be present for all showings. That's the kiss of death for the best showing rates. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.
Make the house accessible. That means it's always ready to show. Many agents won't bother showing a house that takes 24 hours to get into.
