STEP 1 - DEFINE NEEDS
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.
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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.
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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. |
