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Tips on Selling Your Home
If
you are thinking of selling your home, chances are you're caught up
in a mass of emotions. You may be looking forward to moving up to a
new home or facing the uncertainty of a major move across country.
You may be reluctant to leave your memories behind or eager to
start new and exciting adventures. Remember, I am here
to help you with any of your needs. Call or email
FirstTimeHomeBuyerCenter.com!
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.
In
setting the list price for your home, you should be
aware of a buyer’s frame of mind. Based on a list of
houses for sale in your neighborhood (which can be in the form of a
printed list from us, or online search results that you’ve found
yourself), buyers will determine which houses they want to view.
Consider the following pricing factors:
- If you set the
price too high, your house won’t be picked for viewing, even
though it may be much nicer than others in the area.
You
may have told your real estate agent "Bring me any offer.
Frankly, I’d take less." But in that list of houses, yours
simply looks too expensive to be considered.
- If you price too
low, you'll short-change yourself.
Your house will sell
promptly, yes, but before it has time to find the buyer who would
have paid more.
NOTE:
Never say "asking"
price, which implies you don't expect to get it.
To determine the
proper list price,
contact FirstTimeHomeBuyerCenter.com to provide you with the following professional
services::
- Furnishing comparable sales.
- Analyzing market conditions.
- Helping to determine offering
incentives.
- Estimating your net proceeds.
Using
Comparable Sales
No matter how attractive and
polished your house, buyers will be comparing its price with
everything else on the market. Your best guide is a record of what
the buying public has been willing to pay
in the past few months for property in your neighborhood like
yours.
We can furnish data on sale figures
for those "comps", and analyze them for a suggested
listing price. The decision about how much to ask, though, is
always yours. The list of comparable sales we bring to you, along
with data about other houses in your neighborhood presently on the
market, is used for a "Comparative
Market Analysis (CMA)." To help in estimating a possible sale price for your house,
the analysis will also include data on nearby houses that failed to
sell in the past few months, along with their list prices.
This CMA differs from a formal
appraisal in several ways. One major difference is that an appraisal will be based only on
past sales. In addition, an
appraisal is done for a fee while the CMA is provided by us and may
include properties currently listed for sale and those currently
pending sale.
In the normal home sale, a
CMA is probably enough to let you set a proper price. A
formal written appraisal (which may cost a few hundred dollars) can
be useful if you have unique property, if there hasn't been much
activity in your area recently, if co-owners disagree about price,
and any other circumstance that makes it difficult to put a value
on your home.
NOTE:
If you do order a market value
appraisal, make it clear you don't need an
elaborate, or full narrative report--the kind that's
complete with photos of the house and neighborhood, a map
specifying the site, and floor plans is sufficient.
A
Comparative Market Analysis (CMA) often includes
Days
on the Market (DOM) for
each comparable house sold. When real estate is booming and prices
are rising, houses may sell in a few days. Conversely, when the
market slows down, average DOM can run into many months.
We
can tell you whether your area is currently a buyer's market or a
seller's market. In a seller's market, you can price a bit beyond
what you really expect, just to see what the reaction will be. In a
buyer's market, if you really need to sell promptly, offer an
attractive bargain price.
Some sellers
list at the rock-bottom price they'd really take, because they hate
bargaining. Others add on thousands to the estimated market value
"just to see what happens." If you want to try that, and if you have
the luxury of enough time to feel out the market, sit down with us
and work out a schedule in advance. If there haven't been many
prospects viewing your home after three weeks, you may need to lower
your list price. If that doesn't bring any prospective buyers, you
may need to lower your list price again. Plan on doing that regularly
until you find a level that attracts buyers. Make a written schedule
in advance, before emotion takes over and you're tempted to dig your
heels in.
Sometimes
cash
incentives are as effective
as lowering the price, especially in the lower price range where
buyers may be "cash poor." You may offer to pay such
items as:
- Some or all of a buyer's closing
costs; and
- Discount points required by the
buyer's lending institution; or
If
you haven't had much traffic through your house and you’re in a
hurry to sell, you may want to add the offer of a bonus to
the selling broker, in addition to their commission. An example of
the wording for such an offer may be "to the broker who brings
a successful offer before the New Year."
Once
you’ve been given an estimate of market value, you can get a
rough idea of how much cash you might walk away with when the sale
is completed. This can be particularly useful as you start looking
for another home to buy.
From the estimated sales price,
subtract:
- Payoff figure on your present
loan(s);
- Broker's commission;
- Any prepayment penalty on your
mortgage;
- Attorney's fees, if any; and
- Unpaid property taxes.
In addition, we can tell you whether
local customs or rules expects the buyer or seller to pay for the
following items:
- Title insurance premium;
- Transfer taxes;
- Survey fees;
- Inspections and repairs for
termites and the like;
- Recording fees;
- Homeowner Association transfer
fees and document preparation;
- Home protection plan; and
- Natural hazard disclosure report.
As
far as closing costs are concerned, you and your eventual buyer may
agree on any arrangement that suits you, no matter what local
practice dictates. It is difficult to predict what the exact
closing costs will be when you negotiate with a particular buyer.
A
house that "sparkles" on the surface will sell faster
than its shabby neighbor, even though both are structurally
well-maintained. From experience, REALTORS® also know that a "well-polished"
house appeals to more buyers and will sell faster and for a higher
price. Additionally, buyers feel more comfortable
purchasing a well-cared for home because if what they can see is
maintained, what they can't see has probably also been maintained.
In readying your house for sale,
consider:
How Much You Should Spend;
- The Exterior "Curb
Appeal"; and
- Preparing the Interior
How Much Should
You Spend
In preparing
your home for the market, spend as little money as possible.
Buyers will be impressed by a
brand new roof, but they aren't likely to give you enough extra
money to pay for it. There is a big difference between making
minor and inexpensive "polishes" and
"touch-ups" to your house, such as putting new knobs on
cabinets and a fresh coat of neutral paint in the living room, and
doing extensive and costly renovations, like installing a new
kitchen. Your REALTOR®, who is familiar with buyers' expectations
in your neighborhood, can advise you specifically on what
improvements need to be made.
Don't
hesitate to ask for advice.
The Exterior
"Curb Appeal"
Before putting your house on the
market, take as much time as necessary (and as little money as
possible) to maximize its exterior and interior appeal.
Enhance your home’s exterior
and curb appeal by:
- Keeping the lawn edged, cut and
watered regularly;
- Trimming hedges, weeding lawns and
flowerbeds, and pruning trees regularly;
- Checking the foundation, steps,
walkways, walls and patios for cracks and crumbling;
- Inspecting doors and windows for
peeling paint;
- Cleaning and aligning gutters;
- Inspecting and cleaning the
chimney;
- Repairing and replacing loose or
damaged roof shingles;
- Repairing and repainting loose
siding and caulking;
- In Northern winters, keeping walks
neatly cleared of snow and ice;
- During spring and summer months
considering adding a few showy annuals, perhaps in pots, near
your front entrance;
- Re-sealing an asphalt driveway;
- Keeping your garage door closed;
- Storing RVs or old and beaten up
teens' jalopies elsewhere while the house is on the market; and
- Applying a fresh coat of paint to
the front door.
Preparing the
Interior
Enhance your home’s
interior
by:
- Giving every room in the house a
thorough cleaning, as well as removing all clutter. This alone
will make your house appear bigger and brighter. Some homeowners
with crowded rooms have actually rented storage garages and moved
half their furniture out, creating a sleeker, more spacious look.
- Hiring a professional cleaning
service, once every few weeks while the house is on the market.
This may be a good investment for owners who are busy elsewhere.
- Removing the less frequently used,
even daily used items from kitchen counters, closets, and attics,
making these areas much more inviting. Since you're anticipating
a move anyhow, holding a garage sale at this point is a great
idea.
- If necessary, repainting dingy,
soiled or strongly colored walls with a neutral shade of paint,
such as off-white or beige. The same neutral scheme can be
applied to carpets and linoleum.
- Checking for cracks, leaks and
signs of dampness in the attic and basement.
- Repairing cracks, holes or damage
to plaster, wallboard, wallpaper, paint, and tiles.
- Replacing broken or cracked
windowpanes, moldings, and other woodwork.
- Inspecting and repairing the
plumbing, heating , cooling, and alarm systems.
- Repairing dripping faucets and
showerheads.
- Buying showy new towels for the
bathroom, to be brought out only when prospective buyers are on
the way.
- Sprucing up a kitchen in need of
more major remodeling by investing in new cabinet knobs, new
curtains, or a coat of neutral paint.
Click
HERE for help in selling your home
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