Seller's Resources -
Ten Steps
10 Steps to
Selling Your Home
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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