Selling a Home...

If you've decided to sell your home, chances are you're caught up in a host of emotions. You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures. Whatever turbulent feelings you're experiencing right now, there are plenty of practical matters that need your attention. I hope this page will help to make the whole process go more smoothly.

One of the first decisions you have is whether to try and sell the house yourself or to hire a real estate agent. The thought of saving the commission may appear attractive but make sure you know what you are getting in to before trying to sell yourself. Handling your own sale (known as For Sale by Owner or FSBO) means you will be responsible for placing ads, answering phones and showing your home to strangers. What's more, buyers who know you are saving on an agent's commission usually deduct the commission amount first and then lower their offer price from there. FSBO homes typically net the owner less than those homes marketed by a real estate company. Buyers typically see these homes as "discount stores" and expect the price to be reflected as such. You need to decide if you are prepared to set a fair price for your home, show your home whenever a would-be-buyer shows up unannounced, negotiate with the buyer, write a contract and follow through with the terms of the contract. Here are some of the advantages professional agents offer:

• I will help you establish a fair asking price for your home.

• I will promote your home to other agents and list your property in the local multiple listing service (MLS). A multiple listing service is a computer database that all real estate agents who subscribe to the service can access. Your home will get exposure to all those agents, one of whom may have the perfect buyer.

• I will create, pay for and place advertising for you.

• I will schedule appointments to show your home to prospective buyers even when you are not there.

• I can weed out buyers who will not qualify for a mortgage.

• I can refer you to sources for insurance, inspections, legal counsel and financing.

• I will help you negotiate with the buyer.

• I will make suggestions to help make your home more attractive to a potential buyer.

• I will manage the entire process from contract signing to closing, including arranging inspections, appraisals, repairs and settlement.

Because the Real Estate Industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game.

Deciding When to Sell. It is a good idea to place your home on the market as far in advance as possible of purchasing a new one. Having a home sale contingency on an offer to purchase another property is less attractive to the sellers. You could end up with two mortgages if you can't sell your house before you settle on the new one. Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved.

Putting your House on the Market. The first step toward putting your house up for sale is to meet with a real estate agent at you home. This is what we call the "listing appointment". Before the listing appointment, you should collect a list of documents requested by the agent. The real estate agent will prepare for the appointment by studying recent neighborhood sales of homes comparable to yours, as well as comparable homes currently on the market.

The Listing Appointment. At the listing appointment, I will inspect the house and yard to become familiar with its special features. Prospective buyers will be "comparison shopping" and aware of subtle differences in houses for sale in the area. Be sure to tell me why your house is special - especially any remodeling that has been done. As an Accredited Staging Professional (ASP™), I bring an added level of education and experience to preparing your home for sale.  When we preview the house, we will discuss any potential problems or items that might need to be looked at. We will discuss other recent home sales and those that are currently on the market. This is known as a Comparative Market Analysis (CMA). Naturally, you want to get top dollar for your home, but at the same time, you don't want to scare off potential buyers with a price tag that is too high. Setting an artificially high price may cause your property to languish on the market for a long period of time and may actually reduce the amount of money that you will get for your house. A house that stays on the market too long may make potential buyers wonder if there is something wrong with your home. Over pricing a house will also help sell your competitor's house.

Factors that will affect the price of your home include:

• Location

• Economic conditions

• Supply and demand in the local housing market

• Seasonal influences

• Local schools

• Average home prices in the neighborhood

• Your home's extras such as a pool or lot size

What is the difference between fair market value and asking price? Simply put, fair market value of a house is the highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase. You can assume that some negotiation will be necessary to reach an agreement with a buyer. When I present you with the results of your CMA at the listing appointment, I will provide all the data that establishes fair market value. Then, based on your own timing and marketplace variables, I help you establish a competitive pricing strategy. Generally speaking, the owner's asking price - the advertised price of a house when it goes on the market - is set slightly higher than fair market value. When setting the asking price you need to keep in mind your priorities. If you had to choose, are you more concerned with selling quickly, or getting the best price?

How flexible should I be about the asking price? Generally, the first three weeks will be the test period of your initial asking price. If you see showings drop off and very few return visits, you may want to consider repositioning your asking price. Most buyers leave room for negotiation when they make an offer. Thus, a certain degree of flexibility is usually called for on the part of both the buyer and seller.

While it is ultimately your decision to accept or reject an offer, or present a counter-offer, I can be of assistance to you during the negotiating process. In fact, experience in negotiation is one of the valuable skills I can offer you. As negotiations proceed - whether in writing, face-to-face, or by phone, I will inform you of your options in responding to each offer from the buyer, so you can make an educated decision as to how you want to proceed.

Preparing Your Home for Sale. I'm sure by now many of you have seen the TV shows such as HGTV's Designed to Sell. Shows like these are a good place to start when you are ready to put your home on the market. They help point out items that, because you live in the house everyday, you may not notice. Remember, you only have one chance to make a first impression. You want to make sure that impression is a good one. As an Accredited Staging Professional (ASP™), I am uniquely trained to help you prepare your home to achieve this goal.  Staged® homes traditionally present themselves better than the competition by being clean, clutter-free, and ready to show to prospective buyers.  This helps homes sell for more money and/or in less time.  Call me to find out how I work and how Staging® your home can help you.

One of the first things you will need to do is remove your emotional feelings toward the house. You need start looking at the house as a marketable commodity. Your goal is to get others to see it as their potential home, not yours. If you do not consciously make this decision, you can inadvertently create a situation where it takes longer to sell your property.

Where do you start? Step back and take a look at the house as a potential buyer. Start on the outside from the curb. How will others see your house as they are driving by? A home that is visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to view your property through an outsider's eyes:

• Are the lawn and shrubs well maintained?

• Are there cracks in the foundation or walkways?

• Does the driveway need resurfacing?

• Are the gutters, chimney and siding in good condition?

• Do the window casings, shutters, siding or doors need painting?

• Are garbage and debris stored out of sight?

• Are lawn mowers and hoses property stored?

• Is the garage door closed?

• Are there potted plants or flowers at the front door?

Improving "curb appeal", while it does take time, needn't be difficult or expensive, provided you keep two key words in mind: neat and neutral. Do the little things that will make your house look better from the outside. If you are going to repaint, choose neutral colors.

Now, enter the house through your front door. What are the first things that you notice, and just as important - smell? You need to keep clutter and personal knick-knacks, photos, etc. to a minimum. When a potential homebuyer looks at a house, they are trying to paint a picture of what it would be like as their new home. Seeing your family photos hanging on the wall puts your own brand on the home and momentarily shatters their illusions about living in the house themselves. Make sure when you take items down to put them in a box. Do not just put the box in the attic, basement garage or a closet. Remember you need to remove the "clutter".  Rent a storage unit for a few months and put the boxes in the storage unit, or hold a garage sale or take them to a local charity.

Remember odors can turn a potential buyer off just as quickly as a home's appearance. People become accustomed to the "smell" of their home. If you have pets, smoke, or often cook with strong smelling foods you might want to ask a neighbor or friend to give you their honest opinion about the smell of your home. I will also be honest with you if your house as a strong odor on my initial listing appointment. Please do not be offended. We share a common goal - sale of your home!

Make the house look as clean and spacious as possible. Remember, people may look behind your doors, closets, cupboards and crawlspace. Cluttered closets give the impression that there is not enough space in the home.

After you have cleaned, try to correct any cosmetic flaws you've noticed. Paint rooms that need it (remember, keep it neutral!), re-grout tile walls and floors, remove ore replace any worn-out carpets. Replace dated faucets, light fixtures, and the handles and knobs on your kitchen drawers and cabinets if needed. Make the appliances, faucets, floors and furniture shine!

Be careful before embarking on any major home improvements though. Certain improvements that are useful to almost everyone have proven to add value or speed the sale of houses. The challenge that comes with any home improvement designed to help sell your house is recouping your investment. There is always the risk of over-improving your house - that is putting more money into it than neighborhood prices will support. Remodeling OnLine provides a list of home improvements and the expected return on investment.

Be sure to keep good records on the costs of your home improvements. After the house has sold and all proceeds have been collected, your capital gains will be based on the difference between the sales price (less any selling expenses) minus the adjusted basis. The IRS lists the following as increases to basis:

• Improvements

• Additions

• Special assessments for local improvements

• Amounts you spent after a casualty to restore damaged property.

The IRS defines improvements as those items that "add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of improvements to the basis of your property."  You should seek professional tax advise to determine how this may apply to you.  You may also want to read Realty Times article: Capital Gains Tax Relief Refresher Course.

Once we have a Listing Agreement, I will provide you with a video that will give you more helpful hints on preparing your home for sale. I will also provide you with checklist for preparing the house to sell and show.  You can also visit Realtor.com for additional tips on home improvements and making your home more saleable. 

How Much is your home worth. Fill out this form and I will give you an approximate figure of what your property might be worth on the market. Just click the button below.