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.
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.
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.
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