Write down all the reasons for selling your home. Ask yourself, "Why do I want
to sell and what do I expect to accomplish with the sale?" For example, reasons
for selling include: a growing business that needs more space or a job
opportunity that necessitates a move to another city. Things you want to
accomplish with the sale may include the time frame in which you'd like to sell
or a particular profit margin.
Work with your real estate agent to map out the best path to achieve your
objectives and set a realistic time frame for the sale.
STEP 2 - PRICING STRATEGY
Your next objective should be to determine the best possible selling price for
your house. You will need to take into account the state of the local market,
the condition of your home and sales of comparable homes in your neighborhood.
It is often hard to maintain a non-biased view of your property, so you will
want to gather the necessary information in the most objective way possible. If
you want a truly objective opinion about the price of your home you could have
an appraisal done. This may cost between $300 and $500.
Be reasonable about the price you set. You will always be better off setting a
fair market value price than setting your price too high. If your home stays on
the market too long because it is overpriced, potential buyers may think that
something is wrong with it and you may end up selling it for less than what you
could have gotten if you had started out with a realistic asking price.
STEP 3 - PREPARE YOUR HOME
It's time to get your home in "showing and selling" condition. Most of
us don't keep our homes in the condition they need to be in to be sold.
Piles of boxes in the garage, a broken porch light and even an overgrown
garden just seem normal after awhile. It's time to break out of that
owner's mindset and get your house in tip-top shape. How your home looks
will impact how quickly it sells and the price the buyer is willing to
offer.
First impressions are the most important. Work with your real estate
agent to help you take a fresh look at your home. Do the shrubs need
pruning? Do you need to repaint? What's normal for you may be
unacceptable to the buyer.
Make your interior appear more
spacious by removing appliances from countertops, and clearing
knickknacks off coffee tables and shelves.
Organize your closets and kitchen
cabinets.
Make sure items stored in the attic
or basement are tidy.
Open the curtains or blinds during
the day to maximize the natural light.
Turn on the lights at night to
create a welcoming environment for prospective buyers.
A home with too much "personality"
is harder to sell. Consider painting walls white and removing clutter.
This will help the buyer to visualize the home as theirs.
STEP 4 - MARKETING STRATEGY
Now that your home is ready, it's time to put it up for sale and market it.
Establishing a marketing strategy with your real estate agent is a must. Your
agent will expose your home to the greatest number of potential buyers possible.
He or she will use a marketing plan that will bring not only the most buyers,
but also the most qualified buyers to your doorstep.
There are many different ways to get the word out that your home is for sale. A
yard sign, flyers, and direct marketing are just a few of the many options
available. If you are in a buyer's market you will have to be extra careful when
choosing a plan. You don't want your property to sit unnoticed. You and your
agent should structure your marketing strategy so that the first 3-6 weeks that
your house is on the market will be the busiest.
STEP 5 - RECEIVE AN OFFER
When a buyer decides they like your home, they will make you a written
offer. Your real estate agent will advise you as to whether or not the
prospective buyer is qualified to purchase your home. After all, who
needs to review an offer from a buyer that is unable to buy it?
After determining the buyer's qualifications, you and your agent will
review the written contract, taking care to understand what is required
of both parties to execute the transaction. The contract should protect
the interests of all parties.
After you accept the offer, it may be too late to make any changes. 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
Remember that the legalities of this
phase are very important. If you have any questions or concerns, be
certain to address them with your real estate agent right away.
STEP 6 - NEGOTIATE TO SELL
Most offers to purchase your home will require some negotiating to come
to a win-win agreement. You 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. Your agent will review the written offer with
you to make sure you thoroughly understand what the buyers are offering
and what they are asking you for in return.
Some negotiable items:
Price
Financing
Closing costs
Repairs
Appliances and fixtures
Landscaping
Painting
Occupancy time frame
Once both parties have agreed on the
terms of the sale, your agent will prepare a contract.
Remember…bargaining is not a winner-take-all deal. It is a business
process that involves compromise and mutual respect.
STEP 7 - SELLING SERVICE PROVIDERS
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, surveyed, inspected or repaired. Depending on the
specifics reached during the negotiations, 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 forth in the contract will dictate your next step. Depending on the
contract, you or the buyer may decide to walk away, open a new round of
negotiations or close.
STEP 8 - PRE-CLOSE PREPARATION
A few days before the closing you will want to contact the entity that is
closing the transaction and make sure the necessary documents are going to be
ready to sign on the appropriate date. It would be a shame to get this close to
selling and have the deal fall through because of a missing form. Begin to make
arrangements for your upcoming move if you have not done so. Check out our
Relocation Center to get started.
STEP 9 - CLOSING
"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 help
explain the process and forms to you 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. In some states, an attorney is required and you may wish
to have one present.
As the seller, you will need to be prepared to hand over any necessary
documentation regarding the property and, depending on the arrangements made
during negotiations, you may be required to have done something specific in
order to close.
Be sure to read all the documents and ask questions. It is important you
understand every document you are signing.
STEP 10 - POST CLOSE
Congratulations on the successful sale of your home!
Now that you have closed, prepare to vacate your home in the time frame agreed
upon. You should make a list of all the items you will need to do to turn the
property over to the new owners. For example, make sure to cancel electricity,
gas, lawn care, cable, etc., or if the new owner is going to retain some of the
services, change the name on the account. The home and all items specified by
the contract should be prepared appropriately for the new owners.
