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Selling a home involves careful planning, a well thought-out strategy, and
business savvy. This checklist will help guide you to a successful and
potentially profitable home sale.
1. Determine the "right" time to sell.
Spring and fall are usually the hottest home-shopping periods, but the
downside is that a glut of products makes it hard for yours to stand out.
While your location can be a factor (i.e., it's easier to sell a Phoenix home in the winter), some elements of timing remain constant. For
instance, the last week of December will probably never be a good time to
show your house.
2. Prepare yourself for the costs involved.
Selling a home can cost about 15% or more of the total sales price,
depending on the equity you have, according to House Selling for
Dummies by Eric Tyson and Ray Brown (IDG Books). Checking your equity
is an important first step in preparing to sell your house
3. Decide whether you will
Be a "FSBO" (for
sale by owner) or hire a real estate agent.
While selling your own home can save you thousands in commissions (about
5% to 7% of the sale price), the process is time-consuming and often
frustrating to the novice. According to the National Association of
Realtors, more than half of the people who do sell their own home say they
would not do it again.
4. If you hire a real estate agent, do your homework First.
Interview several candidates and check references. The National
Association of Realtors (NAR) suggests that you ask prospective agents to
create a comparative marketing analysis, a marketing profile, and a
suggested list price for your home. You'll need to sign a contract, which
can generally last anywhere from 30 days to 6 months, so be 100% confident
in your agent.
5. Establish a reasonable sales price.
Research what comparable properties in your neighborhood have sold for
before setting your price. After you've collected enough information,
consult with your real estate agent, or consider hiring an appraiser.
6. Leave room for negotiation.
Bargaining Tips
For example, if you aim to get a minimum of $200,000 for your home, set
your price at about $210,000 to $215,000. Make sure you consider current
mortgage rates, which are a major factor, and recent home sales.
7. Develop a marketing plan.
Or, if you hire an agent, review his or hers. Determine where you want to
advertise and establish a schedule of open houses. Create home profile
sheets that prospective buyers can take with them. These should contain
appealing photos and brief descriptions of all your home's features. Make
sure you let your friends and family know that you are selling, which can
be often be most valuable in finding potential buyers.
8. Consider MLS Listings.
MLS Data (Multiple Listing Service) is collected by real estate agents
around the country. While MLS data looks comprehensive, keep in mind that
not all MLS are the same. In fact, neighboring real estate franchises have
occasionally been known to feature conflicting information.
9. Surf the Internet.
A NAR survey released in January 2000 found a twelve-fold rise in the
number of Internet home shoppers during the previous three years. Aside
from scoping out neighborhoods on your own, there are plenty of other real
estate sites worth checking out. However, not all real estate sites are
created equally, so surf wisely.
10. Stay in tune with your neighborhood.
It helps to know if 10 homes around the corner have gone up for sale after
you planted your sign. When possible, and within reason, make sure you
know what they're selling for, who's representing them, and what kind of
successes and failures they've had.
11. Check your home's "curb appeal."
Trim the lawn and shrubs, keep your gardens neat and healthy, and repair
visible damage. Always keep clutter, including trash barrels, out of
sight.
12. Clean up the inside of your house as well and make sure it stays
that way.
Store clutter away, and make sure that any plants and flowers are fresh
and healthy. Make cosmetic improvements, such as repairing cracked walls
and applying a fresh coat of paint. If you have pets, keep your house free
of pet messes and odors. If possible, keep pets out of sight during
showings.
13. Disclose defects and past damage, such as a faulty roof or
insurance claims.
Be careful to avoid misrepresentations. Also, disclose the items you
intend to take with you, such as refrigerators, chandeliers, and
dishwashers. In selling your home, honesty is not only the best policy; in
most states, it's the law.
14. Become Familiar with the paperwork involved.
From the listing agreement and the disclosure statement, to the sales
agreement and the settlement statement, selling a home involves enough
literature to wallpaper a living room. Know what to expect and make sure
you understand what you receive.
15. Consider retaining an attorney.
For as little as a few hundred dollars, a qualified real estate attorney
can provide valuable advice and review the reams of documents involved.
16. Make sure you know where you're going next.
Make sure the next place you are moving, whether a rental or purchase, is
ready to accept you.
17. Have Patience.
Although there may be a flurry of activity during the first month your
home is on the market, it could take several months to close a deal.
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