1.
Define Needs For Selling Your Home
It is important
to set out in writing the reasons that are motivating you to sell your
current home. You might ask yourself, "Why am I selling my home and what
do I expect to accomplish?" If you have a growing family and you need more
space you may be under less pressure to get your house ready to sell than
if you were, let's say, moving to a new city due to career opportunity.
Explore your
short and long term goals and decide how selling your house fits into those
goals. Your agent will identify all of the variables within your individual
goals and how best to achieve them in your local real estate market. Your
real estate agent will apply his or her expert knowledge to your particular
needs and set a realistic time frame for the process to proceed. This will
help you to establish a time management path for selling your home.
2.
Determine A Pricing Strategy
Your next objective
is to consult with your real estate agent to determine the best possible
selling price of your home. 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. He or she will create a comparative market
analysis by taking into consideration the type of market you are in and
recent sales of comparable properties. Your agent will then guide you to
the best fair market price that will help sell your home within your desired
time frame. Usually, real estate agents have a clearer and more objective
sense of market value than anyone else- including appraisers!
Often, it can
be hard for you, as a seller, to also maintain objectivity, so remember
to be reasonable about the price you set. You will always be better off
setting a fair market value price than setting your price high expecting
that someone will come along and be willing to pay it. 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.
3.
Prepare Your Property For Selling
It's time to
get your home in "showing and selling" condition. Most of us don't keep
our homes in the condition it would need to be in to sell. Over the years
those boxes in the corner of the garage just seem to multiply on their
own. Things have broken that we just never get around to fixing and some
things have just worn out. We just accept the fact that they will always
be this way. It is this frame of mind that you have to break out of in
order to get your house ready to show. How your home looks will have an
immense impact on how quickly it sells and whether or not you get full
market value for it.
First impressions
are very important and you only get to make one. Your real estate agent,
who is interacting in the marketplace every day, can assist you in approaching
your home from the buyer's standpoint. What needs to be changed to make
a good first impression? This may mean that all you do is prune the trees
and shrubs. On the other hand, it may mean that you completely repaint
the house, inside and out. Do a "curb to door" check. Give the potential
buyers a clear path to enter the home. The fewer obstacles between the
buyer and the true appeal of your home the better. Keep in mind that over
time we become accustomed to our surroundings. What's normal for you may
be detrimental to the buyer.
Make your home
look as spacious as possible. Organize your closets and kitchen cabinets,
and if you have things stored in the attic or basement, make sure they
are presentable. If you are showing during the day, pull back your curtains
and drapes to show how bright and cheery your home is. If you are showing
at night, turn on all of the lights to create a warm and welcoming environment
for the prospective buyers. A home that is marked with your personality
and style may be harder to sell. You might even consider such things as
removing obvious clues to your political affiliation and tucking away any
biased literature that may be visible. This will reduce distractions and
help the buyers to visualize the home as their own.
4.
Establish A 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 most potential buyers possible using a marketing
plan that will have the highest possibility of bringing not only the most
buyers, but also the most qualified buyers, to your doorstep.
There are many
different ways to get the word out there 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 home to sit with no one showing
interest. 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.
5.
Receive Offers On The Home
When a buyer
decides to buy your home, an offer will be presented. Your real estate
agent will advise you as to whether or not the prospective buyer is qualified
to purchase your home. After all, there is no reason to review an offer
if the person(s) making it will not be able to actually buy your home.
You and your
real estate agent will then review the written document, taking care to
note what is required of both parties to execute the transaction. The contract
should protect the best interests of all parties involved and should be
comprehensive in nature.
Once you accept
the contract, it may be too late to make any changes. The contract, though
not limited to this list, should include the following:
· A
legal description of the property
· The
offering price
· The
down payment
· Financing
arrangements
· A
list of fees and who will pay them
· Amount
of the deposit
· Inspection
rights and possible repair allowances
· The
method of conveying the title and who will handle the closing
· A
list of appliances and furnishings which will stay with the home
· The
settlement date
· Any
relevant 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.
6.
Negotiate To Sell Your Home
Most offers
to purchase your home will require some level of negotiation to come to
a win-win agreement. Your real estate agent is well versed on the legalities
of the real estate contract used in your area and will handle the responsibility
of protecting your best interest throughout these negotiations. In addition,
your agent has a thorough understanding of the contract itself, including
what each contract clause means to you and your buyer, what you will net
from the sale of your home, and what areas in the contract lend themselves
easiest to negotiation. Your agent will review the written offer with you
to make sure that you thoroughly understand what the buyers are offering
and what they are asking in return.
Some of the
items that you may have to negotiate are:
· The
price
· Financing
· Closing
costs
· Repairs
that need to be done
· Appliances
and fixtures
· Landscaping
· Painting
· Occupancy
time frame
To really gain
some insight into why potential buyers are pursuing the purchase of your
home and how they might proceed in the negotiations, it is also important
to know as much about the buyer as possible, especially their motivation
for buying. Once both parties have reached a point where the deal is acceptable,
your agent will be certain that you have a legally executable contract.
7.
Find the Vendors You Need
Once you have
accepted an offer to sell your home, your real estate agent will inform
you of all the procedures involved in order to proceed successfully to
closing, as well as the parties responsible for completing those procedures
and estimates of completion. For instance, 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.
Your agent will
then coordinate with all the parties and keep you informed as to the results
of the various procedures. If each procedure returns acceptable results
as defined by the contract, then the sale may continue. If there are problems
with the property 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. Your agent will advise
you throughout this process and will help you coordinate any actions you
must take to keep the sale moving forward.
There are some
sales that go smoothly and some that require a lot of work to get to the
closing table. Until you get into it, you won't know which one you have
on your hands. Either way, your agent will be there with you every step
of the way.
8.
Pre-Close Preparation
A few days before
the closing, your real estate agent will contact the entity closing the
transaction to make sure that all of the necessary forms and documents
have been prepared and are going to be available for you to sign on the
appropriate date. Your agent will also contact each party to the transaction
to be certain that they have taken each action necessary for closing, so
that the entire closing can proceed on the date and time planned.
Your agent will
also prepare you in advance for the process of the closing, advising you
of any documents you must bring to the closing, how much time to block
off for the closing, and any other information that is pertinent to the
closing meeting itself.
9.
Close On The Home
"Closing" refers
to the meeting where ownership of the property is legally transferred to
the buyer. Your real estate 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.
As the seller,
you will need to be prepared to give 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 any questions you may have. It
is important that you understand every document you are signing.
10.
Post-Close Activity
Congratulations
on the successful sale of your home!
Hopefully, everything
went smoothly and you will be vacating your house in the time frame that
you had anticipated. Your real estate agent will help you create a checklist
of all the things you will need to do to turn the property over to the
new owners. You will need to make sure that all of the local services (i.e.
electricity, gas, lawn care, cable, etc.) have been cancelled or, if the
new owner is going to retain some of the services, the name for the account
should be changed. The property and anything assigned to the buyer according
to the contract should be prepared appropriately for the new owners. This
will make the transition as smooth and effortless as possible.