Pricing Your Home
If you are planning on selling a house, you will need to decide
what price to ask for your home. This is one of the most important
and difficult decisions you will make. Buyers shop by comparison.
Your home must be fair market priced. We can help you determine
the market value of your home so you may obtain top-dollar for
your property. The first five sections of this help guide will
take you through a quick overview of the sellng process. We
will then take a more in depth look at Selling Your Home.
Some
of the things to consider when choosing your home price are:
- What is the age
& condition of your home?
- Does it need updating?
- What have similar
homes in your area sold for?
- Are homes in your
area increasing or decreasing in value?
- How many homes
are for sale in your area?
Remember, your home
is only worth what someone is willing to pay for it. By working
with a qualified real estate professional, you can ensure that
your property will receive the needed exposure to attract interested
parties who are willing to make an offer.
Here are a few critical points to keep in
mind about pricing:
- Realistic pricing
will result in the fastest sale and subsequently bring a higher
selling price.
- Your cost or profit
desire is usually irrelevant: the market always dictates the
price.
- The cost of improvements
made is almost always more than the added value.
- Remember that
cost, price and value are three different things.
The first step in
determining the market value of your home is to prepare a comparative
market analysis reflecting the prices of other sold houses in
the your market area. You may think you can always lower the
price, but overpriced listings aren't shown and houses that
are on the market a long time become "shop worn" and do not
sell for top dollar.
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When you are selling your home you want to present
the very best product. Buyers carefully inspect property. Keep
the exterior neat by painting the trim, clipping the hedges,
mowing, edging, and weeding the lawn and you may wish to plant
a few flowers.
Inside lighten up the dark corners, perhaps add
some fresh paint and put the clutter away to give the rooms
an open feeling. Make sure there are no "stale" odors in the
home. This can be especially important for remote areas such
as a basement or attic. On the second showings, you may want
to consider baking some cookies or bring in some fragrant fresh
flowers. This will add a cheery and pleasant scent to your home.
These little things may help you sell your home more quickly.
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Marketing Your
Home
It is not likely that the right buyer will simply
walk through your door. Properties must be presented to the
buyers. A successful marketing campaign can insure a number
of qualified buyers. Select an agent who uses agent to agent
marketing, and one who uses state-of-the-art techniques such
as an interactive voice-response system, a front end MLS system
and the internet. Make sure your agent is trained not only in
the financial aspect of a real estate transaction, but the marketing
aspect as well.
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An Offer!
Assuming you price your home correctly, a prospective
buyer will "make an offer." As the seller, you have three options:
you can accept the offer, reject the offer or make a counter
offer. A counter offer usually will encourage a buyer to continue
their negotiations. You may also receive multiple offers. You
may prefer to take slightly less for your property from someone
who is willing to pay cash, versus someone who needs to sell
their current home. Contingencies, move-in dates, and financing
are all things to consider when weighing an offer.
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The Closing
After you accept an offer on your property there
are a number of details to be completed. There will probably
be an inspection of your home by a professional who will determine
the condition and integrity of your property for the buyer.
The buyer's mortgage company may choose to send out an appraiser
who will assure the lender of your property's worth. The title
company will warranty that there are no liens or existing encumbrances
which would inhibit a transfer of title to the buyer. Either
you or the buyer may chose to be represented by an attorney.
First time sellers and buyers often feel more comfortable to
have the paper work reviewed prior to signing.
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Preparing Your
Home to Show
- First impressions
are lasting. The view from the street has an impact on the
buyer's reaction to the entire house. The addition of seasonal
flowers works wonders. Keep the lawn trimmed and edged.
Be sure snow and ice are removed. Remember the importance
of exterior paint and the front door appearance.
- Jazz it up inside.
Faded walls and worn or soiled carpeting reduces appeal.
Most buyers are attracted to homes offering "move-in" condition
and neutral colors and they often over estimate the cost
of decorating changes.
- Can you see
the light? Keep your home looking cheerful. Dark rooms feel
dreary so keep the draperies open to let the sun shine in
through sparkling windows. Provide a feeling of glowing
warmth by turning on all the lights (closets, too) for an
evening showing.
- Fix that faucet!
Dripping water discolors sinks and suggests faulty plumbing.
Also, attend to loose knobs or hand rails, sticking doors
or warped drawers which can detract from your home's value.
- Make closets
look bigger. Neat, well-ordered closets suggest room to
spare. Can you move extra items to another location?
- From top to
bottom. Display the full size of your basement, garage and
storage areas by removing all unnecessary articles. Brighten
dull, dark basements by painting the walls.
- Bathrooms need
to sparkle. Repair caulking in bathtubs and showers.
- if it is cold
outside. Logs crackling in the fireplace can be a hit for
second showings.
- The icing on
the cake. Setting the dining room table as though it's time
for a dinner party helps buyers imagine themselves living
there.
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During the Showing
Three's a crowd. Avoid having too many people present during
inspections. The potential buyer will feel like an intruder
and will hurry through the home.
Man's best friend. Keep pets out of the way- preferably out
of the home. Even the friendliest pet can become anxious when
strangers appear.
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Can
You Sell Your House Yourself?
According to the National Association of Realtors between three
and nine percent of American homeowners handle their own sales.
In order to join the ranks of the successful ones, you need
to realistically assess exactly what's involved. The routine
parts of the job involve pricing your house accurately, determining
whether or not a buyer is qualified, creating and paying for
your own advertising, familiarizing yourself with enough basic
real estate regulations to understand (and possibly even prepare)
a real estate contract, and coordinating the details of a closing.
The greatest downsides are the demand on your time, and the
possibility that a mistake may cost you the money you are trying
to save.
The best
reason for working with real estate brokers is the enormous
amount of information they have at their disposal. Professionals
know about market trends, houses in your neighborhood, and the
people most likely to buy there. They also know how to reach
the largest number of people who may be interested in your house,
and are trained in areas like screening potential buyers and
negotiating with them. Finally, Realtors are always "on-call,"
and willing to do the things most of us hate: working on the
weekends, answering the phone at all hours, and always being
polite.
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Set
a Realistic Price.
Today's
residential real estate market is no place to look for easy
profit. The fact is, prices have generally leveled off from
their peak during the 1980's. That is not to say you cannot
get what your house is worth. You just have to be realistic
about its value, and price it accordingly. A good place to start
is by determining the fair market value.
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How
to Determine Your Asking Price.
Real estate sales agents suggest asking prices based on a variety
of information you may not have, including recent listing and
selling prices of houses in your neighborhood. If you're not
completely confident in their suggestions, you may want to order
an appraisal. Next, establish clear priorities. If you had to
choose, are you more concerned with selling quickly, or getting
the most money possible? What would you pay for the house if
you were the buyer?
Someone else -- a neighbor, friend or relative -- may point
out advantages or disadvantages about your house that you had
not thought about. Third-party views will help you start thinking
of your house as a commodity, with positive and negative selling
points. Then you should decide on a price that you feel is competitive
and consistent with what other houses in your area have sold
for.
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Fix
Your House Up Before it Goes on the Market.
Unless your house is nearly new, chances are you want to do
some work to get it ready to market. The type and amount of
work depends largely on the price you ask, the time you have
to sell, and of course, the present condition of the house.
If you are in a hurry to sell, do the "little things" that make
your house look better from the outside and show better inside.
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Create
"Curb Appeal."
"Curb appeal" is a common real estate term for everything prospective
buyers can see from the street that might make them want to
see the inside of the property. Improving curb appeal is critical
to generating traffic. While it does take time, it need not
be difficult or expensive, provided you keep two key words in
mind: neat and neutral.
Neatness
sells. New paint, an immaculate lawn, picture-perfect
shrubbery, a newly sealed driveway, potted plants at the front
door -- put them all together, and drive-by shoppers will probably
want to see the rest of the house. Hand-in-hand with neatness
is neutrality. If you're going to repaint, stick to light, neutral
colors. Keep the yard free of gardening tools and the kids'
toys. Remember, when a family looks at a house, they are trying
to paint a picture of what it would be like as their home.
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Make
Sure Your House Shows its Best.
First, make your house look as clean and spacious as possible.
Remember, people may look behind your doors -- closet and crawlspace
doors as well as those to the bedrooms and bathrooms. So get
rid of all the clutter; have that garage sale and haul away
the leftovers. After you've cleaned, try to correct any cosmetic
flaws you've noticed. Paint rooms that need it, grout tile walls
and floors, remove or replace any worn-out carpets. Replace
dated faucets, light fixtures, and the handles and knobs on
your kitchen drawers and cabinets. Finally, as with the outside
of your house, try to make it easy for prospective buyers to
imagine your house as their home. Clear as much from your walls,
shelves, and countertops as you can. Give your prospects plenty
of room to dream.
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When You Find
The Buyer Here
are some questions to answer before you can be sure a closing
is in your future...
Is this person truly a buyer? As a security precaution,
don't disclose too much information about yourself or your finances
to strangers.
Is the buyer financially qualified? Do they have
written proof of loan approval from a lending institution, or
do they merely think they are qualified?
Do you have a professional to handle the contracts
and oversee the escrow?
Have you researched the laws which apply to your
transaction? Find out about the Fair Housing Act with 1988 amendments,
contract laws, material disclosure requirements, and Truth and
Lending, Regulation Z regarding your advertising requirements.
Is every detail in writing? You need more protection
than merely the buyer's memory on various terms, and oral contracts
on real estate contracts are generally not enforceable.
Secure an adequate earnest deposit. You'll need
an escrow agent to hold the funds.
Is the buyer asking for contingencies? Perhaps
you should wait for a better buyer.
Is the buyer having the property professionally
inspected? What items will you be required to repair and is
there a dollar limit?
Do you understand all of the contract provisions
- are they standard or stated in the favor of the buyer?
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Moving Day
Moving
does not always mean a traumatic experience. Comprehensive pre-planning,
organization, and family meetings to establish each person's
responsibilities will go a long way in maintaining harmony and
efficiency. For the children: If you are moving out-of-town,
provide the children with photographs of their new home and
school. Once they know what to expect and begin to visualize
themselves in their new surroundings, they grow much happier
and more cooperative.
Give each
child his or her own "packing labels" for marking personal possessions.
Provide
them with floor plans of their new bedrooms so they can participate
in furniture placement. Give children small address books for
noting names and addresses of friends they leave behind. They
can look forward to filling the remainder of the book with names
of the new friends they make after moving.
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Planning Is the
Key
Send change
of address to:
- Post Office with
forwarding address.
- Charge accounts,
credit cards.
- Subscriptions.
- Friends and relatives.
Notify:
- Bank-Transfer
funds, arrange check-cashing in new city Carry Travelers Checks
for ready cash.
- Insurance -Notify
new location for coverage.
- Utility companies/
Gas, light, water, telephone. Make arrangements in new town.
If you are moving before the final closing on your new home
is completed, you need to leave utilities on. During the cold
season, winterize the plumbing.
- Delivery people-Cancel
newspaper, milkman, laundry, etc.
Miscellaneous
Checklist:
- Automobile registrations-
Remember to transfer car title, registration, driver's license,
and auto club membership.
- Medical records-Arrange
for medical and dental records to be transferred. Ask your
physician for a referral.
- Employment Recommendations
-Have teenagers obtain written recommendations from their
current employers.
- Empty freezer
and defrost.
- Have appliances
serviced for moving.
- Clean rugs or
clothing for moving.
- Make arrangements
with cable television service.
- Plan for special
care needs of infants.
- Carry currency,
jewelry and documents yourself.
- Double check
all rooms, closets, drawers and shelves.
- Leave old keys
and garage door openers with your real estate agent.
- Ask your hair
stylist for information on preferred hair products and hair
cutting instructions.
- Obtain letters
of introduction to new club chapters.
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