Tips On Selling Your Home #1

Selling your home can be an overwhelming task. So I’ve put these steps together to assist you in the process. Here is phase #1.  

Make a list of why you want to sell your home. Are you moving because of a job relocation or opportunity? Has your family outgrown your current home; Do you need to downsize because the children have moved out for college or have started their own families?

Decide on a time frame.

Ask yourself: how soon do you want or need to move? Factor in the time you may need to find a home at the new location or to arrange temporary housing while selling your current home.

Determine how much you want to make from the sale of your home to accomplish your plan to move. Get an estimated net proceed (what you expect to take to the bank after the close of escrow). Make sure you have a reasonably accurate amount of the various expenses involved in selling a home. This is also a good time to include an estimated cost to purchase the home you are moving into.

Contact a local real estate agent to assist you in mapping out the best marketing plan to achieve your objectives and set a realistic time frame for the sale. Once you’ve established these first steps, you’re ready for Tips On Selling Your Home #2)

Pricing Your Home. Tip #2

Pricing Your Home.

Now that you’ve established the reason why you want to sell your home on Tips On Selling Your Home #1 ; decided on a time frame; and determined how much you want or need to accomplish your plan to move, you are ready for Phase #2.

Setting a reasonable initial asking price on your home will determine how much interest you’ll get from potential buyers and the other real estate agents. It’s good to remember that homes that are priced higher than their market value typically take longer to sell. The longer your property sits on the market, the lesser it will attract interest. You don’t want to have to drop your price to compete with newer and reasonably priced listings.

Consider condition of your home: it may need a fresh coat of paint; the carpet cleaned; the yard spruced up; and so on. A move-in property condition will typically bring in a better, and in most cases, a higher price. Improve Your Home's Appeal.

Obtain a list of the most current properties that sold on the multiple listing service (MLS) in the past 3-6 months. Know the properties currently on the market in your neighborhood and how long these homes have been sitting on the market. It’s always good to know what the competition is like.

A real estate agent’s expertise and unbiased opinion is invaluable at this point. They can give an insight on the market activity in your area. Recommend marketing strategies and suggestions on how to prepare your home before it goes on the market.

Two important and crucial factors in selling your home are pricing and preparing it to showcase its best features. Make the buyers fall in love with your home the moment they walk up to your front door.

Prepare Your Home To Sell. Tip #3

Preparing Your Home to Sell.

Living in the property and putting it on the market are separate things you need to look at when selling your home. On a day to day basis, we tend to leave newspapers, magazines, books, shoes or pieces of clothing like jackets, strewn around the house, dishes on the sink and counters, unmade beds, and so on (you get what I mean).

Now that you will have buyers and real estate agents coming through your home, you need to have every room in your house in “showroom” condition. Clutter and knick-knacks are the first to go. Remember: first impressions are important to potential buyers. It affects how quickly it will sell and the price a buyer is willing to pay for.

A real estate agent can assist you in “staging” your home with suggestions on how to make it more appealing to help prospective buyers visualize their own style and “personality” into the home. Or, check out my post on Improve Your Home's Appeal for a list of ideas and things you can do yourself.

When you are ready and your home is in tip top shape, it’s time to put it on the market. Some of the ways to do this include: Yard signs; the Internet; newspaper and Media Advertising; Craigslist Ad; Direct mail; Open Houses; Multiple Listing Service; Broker’s Tour; agent to agent networking. Your agent, if you are hiring one, can put a marketing plan best suited for your property to sell your home quickly and attract a ready, willing and qualified buyer.

Some special things you can do for showing your home.

• Turn on all the lights.
• Increase the wattage of bulbs in light fixtures to the maximum that is safe.
• Open all drapes and shutters in the daytime.
• Buy new towels for bathrooms.
• Buy new bedding for bedrooms.
• Replace old lamps or lampshades.
• Play quiet background music.
• Light the fireplace or clean out the ashes and light a candelabrum.
• Infuse home with a comforting scent, such as apple spice or vanilla.
• Set the dining room table for a fancy dinner party.
• Vacate the property while it is being shown.

Receiving An Offer On Your Home. Tip #4

Receiving a Purchase Offer.

If all goes well, you would most likely be receiving an offer from an interested buyer (let’s hope you get multiple offers). Having the following documents when the purchase offer is presented to you will save time in determining you have a qualified potential buyer who is serious in purchasing your home

• Written purchase offer agreement
• Copy of the earnest money deposit check
• Evidence of the downpayment, i.e. copy of latest bank statement
• Letter of loan approval letter from the buyer’s lender with the loan officer’s direct contact information.

Carefully review the buyer’s terms set forth on the purchase agreement. Amongst other things, pay close attention to the date, buyer’s name, correct property address, purchase price, downpayment, buyer’s financing terms, and make sure the agreement is properly signed and dated.

Read and understand the transaction especially items that buyer expects you, as the seller, to pay for. Make a list of these expenses and costs. Some examples of what the buyer may ask you to pay: Pest inspection or related reports; requests for repair or retrofit expenses, credits for closing costs, etc. The contract commonly used in California has at least 8 pages, so make sure you and your agent go over each line and paragraph so as not to miss anything that you may end up paying at close of escrow.

At this point, you will either accept the offer as is; make a counteroffer to change some of the terms; or reject the offer altogether. Make sure you discuss any concerns or questions you may have with your real estate agent before signing the offer. Once you sign with the buyer, it becomes a legal and binding contract.

When you finally agree to the terms as stated on the purchase offer, sign and date your acceptance of the offer, make a copy of it, and deliver a it to the buyer or buyer’s agent in person, by fax or email.

Congratulations, you are now in escrow. Expect a written confirmation of the receipt of the earnest money deposit and opening of the escrow from either the title or escrow officer. Now you’re into the final phase of selling your home which is Tips On Selling Your Home #5, Escrow Process and Closing.

Escrow Process and Closing. Tip #5

Escrow Process and Closing

Once the escrow is opened and you have confirmation of the receipt of earnest deposit, the process should go smoothly, especially when you have a real estate agent handling and coordinating the various appointments for: property inspections, appraisers, obtaining required property disclosures; possible repairs that need to be done; removal of contingencies; settlement date or close of escrow; and so on.

You need to make the property accessible to the buyer to allow for their inspections and investigations during the time allotted on the purchase agreement. Defer and refer any requests or calls for these arrangements from the buyer or buyer’s agent, who should facilitate them with your specific instructions.

In the event, unfavorable conditions are uncovered during the buyer’s inspection and investigation, or a problem arises from the official appraisal value of the property, you may find yourself back negotiation with the buyer to discuss these issues. You or the buyer may decide to walk away or proceed with the transaction.

Most issues are resolved by buyer and seller, with the guidance of the real estate agents involved in your transaction. Concessions may have to be made by either you or the buyer, or by both of you, in which case you’ll most likely be proceeding to closing.

As soon as the buyer removes all the contingencies on the contract, you can start making plans for your upcoming move, if you haven’t already done them. Other arrangements you may want to keep in mind: cancellation of utilities and services such as electric, gas, phone and cable, gardeners, notice of change of address at your local postal office, your banks and various credit card companies, magazine/newspaper subscriptions and alike. It might also be nice to put together all the owner’s manuals and warranties for appliances or equipments you are leaving behind for the new owners.

A week before the agreed upon date of the close of escrow, make sure you contact the title and/or escrow officer handling your transaction to make an appointment to sign the necessary documents and other paperwork that you may have to bring with you at closing.

There you are, you’ve just completed the successful selling of your home! I hope this helps. Any questions, just post it on the comment section.

Improve Your Home's Appeal.

First impressions are important when a prospective buyer walks in to preview your home. I read somewhere about the 60-second rule: That's all the time you have to get a winning first impression.

Something to ask yourself too: “What would I like to see if I were considering buying this house?” Stand across the street and look at your house from the buyer’s standpoint, seeing the house for the first time. You’ll be amazed how many creative ideas will come to mind.

Here are some ways to improve your home’s appeal. You may have already done them, but take a look as you may have overlooked something.

EXTERIOR

• Buy a new welcome mat for the front door.
• Tighten and clean all door handles.
• Paint the front door. Or at least, clean it or apply fresh varnish.
• Place potted flowers near the front door.
• Replace dead plants and shrubs with fresh ones that add color and brighten your lawn and landscaping.
• Keep the grass cut and apply fresh mulch or decorative bark to flower beds.
• Store tools, garbage cans, hoses, and other items neatly in the garage or shed when not in use.
• Trim all trees and shrubs that block the view of the house.
• Replace rotted boards and posts in decking and fencing.
• Apply fresh paint or Use outdoor stain, sealants, and protectants to brighten up bleached decking and fence
• Make sure doorknobs aren’t loose and all doors latch properly.
• Clear patios and decks of barbecues, charcoal, utensils, etc.
• Clean windows inside and out.
• Powerwash home's exterior.
• Make sure all gutters and downspouts are firmly attached and functioning.
• Add low voltage outdoor lighting in the front and backyard to enhance landscaping and prevent accidents on dark walkways.

INTERIOR

• Keep entryway flooring spotless
• Replace broken, worn or outdated knobs and hinges on doors and cabinets.
• Upgrade old or worn curtains with new. Mini-blinds and vertical blinds are preferable to heavy drapes.
• Keep extra furniture to a minimum. Remove or replace worn or dated furniture and keep the traffic areas clear. Too much furniture will visually reduce the size of the room. Too many pictures on the wall will do the same.
• Limit pictures, photographs, wall hangings and knick-knacks to a minimum.
• Keep all windows and sills clean. Use razor blades to remove paint, decals, etc.
• Make sure window screens and vent screens are in good repair.
• Dust regularly and watch for cobwebs in corners and on light fixtures.
• Clean all light fixtures and ceiling fans.
• Shampoo carpets. Check tack stripping in corners of carpeted rooms for gaps. Consider stretching carpet where it’s loose.
• Replace yellowed, worn, cracked, broken, or missing faceplates for switches and outlets.
• Paint any room that needs more than a little touch up. If you aren’t sure, take down a picture from the wall and look at the room again.
• Preferable colors of interior paint are: antique white, bone, frost. Stay away from pure white or eggshell as well as darker colors.
• Keep all woodwork spotless. Use ‘Liquid Gold’ or a similar wood restorative to make cabinets and trim look new. 
• Clean and organize cabinets, closets and bookshelves.Make sure all cabinets close properly and all drawers operate smoothly.
• Keep bookshelves neat and organized. Try to eliminate clutter. Don’t hesitate to box up excess magazines, videotapes, CD’s, albums, personal collections, etc.
• Display fresh flowers from the garden, florist, or supermarket in several rooms. Avoid strong potpourri and other air fresheners.
• Make minor repairs (torn screens, sticking doors, cracked caulking, discolored grout).
• Keep counters clean and clear. Anything not used daily in the kitchen should be stored out of sight. The more space you have available on the counter, the larger and more inviting the kitchen appears.
• Keep fireplaces clean. Replace old grates and screens that are worn or unattractive.
• Replace broken tiles and worn countertops.
• Repair all plumbing leaks, including faucets and drain traps.
• Keep bathrooms spotless and smelling slightly of cleaning products. Tilex, Lysol,
• Always keep counters clear. Put away bath toys, shampoo bottles, etc. Keep daily toiletries in a basket that can be stored underneath the sink or in a cabinet.
• Have pets out of the way as much as possible. Even iguanas, parakeets, and aquariums distract a buyer from focusing on the house. Also keep in mind that many buyers may have allergies to your pets. Visible cat boxes and pet beddings should be placed discretely.
• Get rid of unwanted or seldom used items through garage sales and donations. Or, move them to a storage unit off site.

I've compiled this list over the years from many sources. This is the final one I use when I prepare my client's home before it goes on the market. There's so much more you can do, but these should give you a good start.