Selling Your
Largest Asset- Your Home.
Because your home may well be
your largest asset, selling it is probably one of the most
important decisions you will make in your life. To better
understand the home selling process, this article has been
prepared from current industry insider reports.
Through these 27
tips, you will discover how to protect and capitalize on your
most important investment, reduce stress, be in control of your
situation, and make the most profit possible.
1. Understand
Why You Are Selling Your Home.
Your motivation to sell is the
determining factor as to how you will approach the process.
It affects everything from what you set your asking price at to
how much time, money and effort you're willing to invest in
order to prepare your home for sale.
For example, if your goal
is for a quick sale, this would determine one approach. If
you want to maximize your profit, the sales process might take
longer, thus determining a different approach.
2. Keep the Reason (s) You are Selling to Yourself.
The reason (s) you are selling
your home will affect the way you negotiate its sale. By keeping
this to yourself you don't provide ammunition to your
prospective buyers. For example, should they learn that you must
move quickly, you could be placed at a disadvantage in the
negotiation process.
When asked, simply say that your
housing needs have changed. Remember, the reason(s) you
are selling is only for you to know.
3. Before Setting a Price - Do
Your Homework.
When you set your price, you make
buyers aware of the absolute maximum they have to pay for your
home. As a seller, you will want to get a selling price as
close to the list price as possible. If you start out by pricing
too high you run the risk of not being taken seriously by buyers
and their agents and pricing too low can result in selling for
much less than you were hoping for.
SETTING YOUR HOME'S SALE
PRICE:
* If You Live in a
Subdivision.
If your home is comprised of
similar or identical floor plans, built in the same period,
look at recent sales in your neighborhood subdivision to give
you a good idea of what your home is worth.
* If You Live in An Older
Neighborhood.
As neighborhoods change over
time each home may be different in minor or substantial ways.
Because of this you will probably find that there aren't many
homes truly comparable to your own. In this case you may want
to consider seeking a Realtor® to help you with the pricing
process.
* If You Decide to Sell On
Your Own.
A good way to establish a value
is to look at homes that have sold in your neighborhood within
the past 6 months, including those now on the market.
This is how prospective buyers will assess the worth of your
home.
Also, a trip to City Hall can provide you with home sale
information in its public records, for most communities.
4. Do Some "Home
Shopping" Yourself.
The best way to learn about your
competition and discover what turns buyers off is to check out
other open houses. Note floor plans, condition,
appearance, size of lot, location and other features.
Particularly, note not only the asking prices but what they are
actually selling for. Remember, if you're serious about getting
your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal
is a Benefit.
Sometimes a good appraisal can be
a benefit in marketing your home. Getting an appraisal is
a good way to let prospective buyers know that your home can be
financed. However, an appraisal does cost money, has a
limited life, and there's no guarantee you'll like the figure
you hear.
6. Tax Assessments - What They
Really Mean.
Some people think that tax
assessments are a way of evaluating a home. The difficulty here
is that assessments are based on a number of criteria that may
not be related to property values, so they may not necessarily
reflect your home's true value.
7. Deciding Upon a Realtor®.
According to the National
Association of Realtors, nearly two-thirds of the people
surveyed who sell their own homes say they wouldn't do it again
themselves. Primary reasons included setting a price, marketing
handicaps, liability concerns, and time constraints. When
deciding upon a Realtor®, consider two or three. Be as
wary of quotes that are too low as those that are too high.
All Realtors® are not the same!
A professional Realtor® knows the market and has information on
past sales, current listings, a marketing plan, and will provide
their background and references.
Evaluate each candidate carefully
on the basis of their experience, qualifications, enthusiasm and
personality. Be sure you choose someone that you trust and
feel confident that they will do a good job on your behalf.
If you choose to sell on your
own, you can still talk to a Realtor®. Many are more than
willing to help do-it-yourselfers with paperwork, contracts,
etc. and should problems arise, you now have someone you can
readily call upon.
8. Ensure You Have Room to
Negotiate.
Before settling on your asking
price make sure you leave yourself enough room in which to
bargain. For example, set your lowest and highest selling
price. Then check your priorities to know if you'll price
high to maximize your profit or price closer to market value if
you want sell quickly.
9. Appearances Do Matter -
Make them Count!
Appearance is so critical that it
would be unwise to ignore this when selling your home. The
look and "feel" of your home will generate a greater
emotional response than any other factor. Prospective buyers
react to what they see, hear, feel, and smell even though you
may have priced your home to sell.
10. Invite the Honest Opinions
of Others.
The biggest mistake you can make
at this point is to rely solely on your own judgment.
Don't be shy about seeking the honest opinions of others. You
need to be objective about your home's good points as well as
bad. Fortunately, your Realtor® will be unabashed about
discussing what should be done to make your home more
marketable.
11. Get it Spic n' Span Clean
and Fix Everything, Even If It Seems Insignificant.
Scrub, scour, tidy up,
straighten, get rid of the clutter, declare war on dust, repair
squeaks, the light switch that doesn't work, and the tiny crack
in the bathroom mirror because these can be deal-breakers and
you'll never know what turns buyers off. Remember, you're not
just competing with other resale homes, but brand-new ones as
well.
Current homeowners: if you
anticipate selling within the next few years, the time to begin
minor repairs is now! Save yourself time and aggravation
by addressing small problems as they arise, rather than waiting
and spending a lot of effort and money in the short time before
you sell.
12. Allow Prospective Buyers
to Visualize Themselves in Your Home.
The last thing you want
prospective buyers to feel when viewing your home is that they
may be intruding into someone's life. Avoid clutter such as too
many knick-knacks, etc. Decorate in neutral colors, like white
or beige and place a few carefully chosen items to add warmth
and character.
You can enhance the attractiveness of your home
with a well-placed vase of flowers or potpourri in the bathroom.
Home-decor magazines are great for tips.
13. Deal Breaker Odors - Must
Go!
You may not realize it, but odd
smells like traces of food, pets and smoking odors can stop
deals quickly. If prospective buyers know you have a dog, or
that you smoke, they'll start being aware of odors and seeing
stains that may not even exist. Don't leave any clues.
14. Be a Smart Seller -
Disclose Everything.
Smart sellers are proactive in
disclosing all known defects to their buyers in writing.
This can reduce liability and prevent law suits later on.
15. It's Better With More
Prospects.
When you maximize your home's
marketability, you will most likely attract more than one
prospective buyer. It is much better to have several
buyers because they will compete with each other; a single buyer
will end up competing with you.
16. Keep Emotions in Check
During Negotiations.
Let go of the emotion you've
invested in your home. Be detached, using a business-like manner
in your negotiations. You'll definitely have an advantage over
those who get caught up emotionally in the situation.
17. Learn Why Your Buyer is
Motivated.
The better you know your buyers
the better you can use the negotiation process to your
advantage. This allows you to control the pace and duration of
the process.
As a rule, buyers are looking to
purchase the best affordable property for the least amount of
money. Knowing what motivates them enables you to negotiate more
effectively. For example, does your buyer need to move quickly?
Armed with this information you are in a better position to
bargain.
18. What the Buyer Can Really
Pay.
As soon as possible, try to learn
the amount of mortgage the buyer is qualified to carry and how
much his/her down payment is. If their offer is low, ask their
Realtor® about the buyer's ability to pay what your home is
worth.
19. When the Buyer Would Like
to Close.
Quite often, when buyers would
"like" to close is when they need to close.
Knowledge of their deadlines for completing negotiations again
creates a negotiating advantage for you.
20. Never Sign a Deal on Your
Next Home Until You Sell Your Current Home.
Beware of closing on your new
home while you're still making mortgage payments on the old one
or you might end up becoming a seller who is eager (even
desperate) for the first deal that comes along.
21. Moving Out Before You Sell
Can Put You at a Disadvantage.
It has been proven that it's more
difficult to sell a home that is vacant because it becomes
forlorn looking, forgotten, no longer an appealing sight. Buyers
start getting the message that you have a another home and are
probably motivated to sell. This could cost you thousands of
dollars.
22. Deadlines Create A Serious
Disadvantage.
Don't try to sell by a certain
date. This adds unnecessary pressure and is a serious
disadvantage in negotiations.
23. A Low Offer - Don't Take
It Personally.
Invariably the initial offer is
below what both you and the buyer knows he'll pay for your
property. Don't be upset, evaluate the offer objectively.
Ensure it spells out the offering price, sufficient deposit,
amount of down payment, mortgage amount, a closing date and any
special requests. This can simply provide a starting point
from which you can negotiate.
24. Turn That Low Offer
Around.
You can counter a low offer or
even an offer that's just under your asking price. This lets the
buyer know that the first offer isn't seen as being a serious
one. Now you'll be negotiating only with buyers with serious
offers.
25. Maybe the Buyer's Not
Qualified.
If you feel an offer is
inadequate, now is the time to make sure the buyer is qualified
to carry the size of mortgage the deal requires.
Inquire how they arrived at their figure, and suggest they
compare your price to the prices of homes for sale in your
neighborhood.
26. Ensure the Contract is
Complete.
To avoid problems, ensure that
all terms, costs and responsibilities are spelled out in the
contract of sale.
It should include such items as the date
it was made, names of parties involved, address of property
being sold, purchase price, where deposit monies will be held,
date for loan approval, date and place of closing, type of deed,
including any contingencies that remain to be settled and what
personal property is included (or not) in the sale.
27. Resist Deviating From the
Contract.
For example, if the buyer
requests a move-in prior to closing, just say no. That you've
been advised against it. Now is not the time to take any
chances of the deal falling through.
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