The Best Way To Sell Your House

Once you have made the decision to sell, you will immediately be faced with another tough question – is it best to hire a real estate professional, or try to sell the house yourself? Consider this article from a North American Mortgage Company newsletter:

“To sell and market a house requires specialized skills, is time consuming, and costs money. Are you prepared to buy advertising space? Advertising is one way to let the public know your house is on the market. If not, can you afford the time it will take to sell your house with only a sign in the yard? Are you willing to stay close to home for days, weeks even months to be available to show your house? Do you possess the necessary legal and financial knowledge to answer buyers’ questions, negotiate a contract or close a sale? If you answered “No” to any of those questions, then hiring a real estate professional to assist you is the most efficient way to get the deal done."

As your personal real estate resource, I can be indispensable to you in many ways. Here are some of the steps I take to insure that we successfully get your house sold:

· Assist with accurately pricing your house by conducting a thorough “Comparative Market Analysis”

· Provide a detailed marketing plan

· Submit your listing into the Multiple Listing Service (MLS), which exposes your house to all cooperating member brokers

· Expose your home via the Internet – 24 hours a day, 7 days a week – in my “Featured Homes” section

· Screen potential buyers for financial qualifications / pre-approval

· Provide suggestions for making your property more marketable to potential buyers

· Show your home any time – and you do not even have to be there

· Answer potential buyers questions

· Present all offers

· Assist with negotiating the best sale

· Facilitate the closing

Setting The Right Price

Determining the “right” selling price for your home will take some work. If the price is set too low, you could lose thousands of dollars. If it is too high, the home may not sell within your desired timeframe…costing you time, money and anxiety. The right price is a balance between the maximum amount the current housing market will allow, your “competition”, and your own time limits in selling. A reasonable time frame for selling a house may be between 30 and 90 days. If a house is on the market too long, potential buyers may avoid the house, wondering if something is wrong with it.

Timing is extremely important in the real estate market. The above graph illustrates the importance of placing your property on the market at a realistic price and terms from the very beginning. A property attracts the most excitement and interest from the real estate community and potential buyers when it is first listed; therefore, it has the highest chances of selling while it is new to the market.

An excellent first step is to have a Comparative Market Analysis done on your house. This type of analysis details the current housing market in your area, showing you what houses similar to yours have sold for recently. The market analysis should also list your “competition” – houses like yours which are also currently on the market. With this information in mind, you will also want to consider the following points before deciding:

• Location – This is an important factor in pricing. Look at both the area in which the house is located as well as the surrounding neighborhood. Does the house back up to a busy street? Is it on a cul-de-sac, etc.? Try to put yourself in the buyer’s position – what are the tradeoffs and advantages of your property?
• Features – Does your house have the specific features that set it apart from the other houses in the area – such as a spectacular view, a pool, mirrored closets, room additions, etc?
• Condition of the house – Has the house been adequately maintained during your stay? Are there minor or major repairs that could make a difference in the immediate sale of your home?
• Age of the house – Potential buyers will want to know the age of the plumbing, furnace, roof, appliances, etc. If anything has been replaced, this could add to the value of your property and the sales price.
• The Current Market – Is today’s market a “buyer’s market” or a “seller’s market”? A “Buyer’s Market” means there are several similar houses for a buyer to choose from. Usually interest rates are low and prices are steady. A “Seller’s Market” is the opposite. Interest rates may be low or high, but typically housing prices are on the rise, and there are few houses to be sold.
• Your Time Frame – How long do you have to sell the house? What was the average time on the market for a comparable house? Can you wait while a buyer arranges financing? Does your purchase of another home depend upon this deal closing quickly?

With these points in mind, you should be able to determine a fair price for your house. A word of caution: Avoid the temptation to “pad” the price excessively, thinking that it gives you negotiating room. Most buyers have limitations on how much they can spend. If your property out-prices other houses in the neighborhood, it could remain on the market longer than you wish. Studies show the longer a house is on the market, the lower the final sales price.

The Listing Agreement

After we decide that you are ready to proceed, then we sign the listing agreement. This agreement will state how much brokerage fee, or “commission”, shall be paid, who will receive it, who has the right to produce potential buyers and how long the agreement is valid. It should also include a list of personal property that will go with the house.

Professional Inspections

Some sellers have a home inspection, pest inspection, radon or septic inspection prior to the property going on the market, so that they will have an idea of any problems, if any, they are facing with the new buyer. In Massachusetts, if you have a septic system, it must pass certain Title V certifications in order to be sold. It is the responsibility of the seller to provide an up to code system to the new buyer. Many sellers want to have this done prior to an offer being tendered in order not to face any surprises after the fact. Need info on local home inspectors?  Click Here...

Preparing To Sell

Of course, any major repair should be completed before showing the house, if a top selling price is expected. It is the list of non-major items that can either help you or hurt you. Where should you turn your focus?

Limit your repairs to functional parts of the house – such as roof plumbing and major appliances. Cosmetic changes like new carpeting and draperies may not match your future buyer’s tastes, and could even discourage the sale. The key words to remember are neat and clean…and I mean clean enough for royalty to visit! Take a look at your house as if you were seeing it for the first time. You may not notice the crowded closets and untidy flower beds, but potential buyers WILL! Make a list of jobs and begin getting prepared today…

Outside

When potential buyers drive up to your house, what they see on the outside will leave a lasting impression. Keep the grass mowed, edged, and the weeds pulled. Trim trees and bushes away from windows. Plant flowers to add a touch of color…

If your house needs painting, do it now. Good paint jobs will more than pay for itself in the selling price. Try to maintain the neighborhood look when choosing paint – you don’t want to be remembered as the “green house with the blue door”. Look for the small things that have blended into your day-to-day world. Check for:

• Oil stains in the driveway
• Functioning doorknocker/doorbells
• Torn screens
• Weathered mailbox
• Clean outdoor light fixtures
• Loose brickwork
• Cracks in the driveway

In other words, make your house a showpiece from the curb to the front door…

Inside

A coat of paint will brighten interior walls. Choose neutral shades of white, beige or light pastels that will coordinate with most decors. This in-expensive investment will increase the show-ability of your house. Reduce closet and cupboard clutter…what better excuse to have a yard sale?! Remove all unnecessary furniture to make your rooms seem more spacious.

Always open the curtains and turn on as many lights as possible. Give your house a fresh, airy look.

The bathroom should be spotless. Remove stains from fixtures, repair any dripping faucets, and polish the mirrors. Add a sanitizer to the toilet bowl and keep the lid down. Wash and fluff bathroom rugs and hang fresh towels. Potpourri or scented soaps add a nice fragrance to the air.

A clean kitchen tells the buyer that the house has been well cared for. Remove excess pots, pans, bowls and clutter from the cupboards. Clean the oven inside and out. Run a lemon through the garbage disposal for a fresh smell. Make sure all the appliances are working.

Considering the Offer

All offers for your property must be presented to you. My role is to counsel and advise you, but the final decision will be yours. Review every offer, comparing the financial qualifications and readiness of each prospect to buy. You decide what terms are acceptable, then, I will negotiate with the buyer. I will make known what costs you are willing to pay and what your expectations are of the buyer. A suitable deposit will be collected from the buyer prior to any acceptance of their purchase offer. Both parties will sign a written agreement, stating all conditions of the sale.

Now comes the time to sit back and be patient. The buyer is busy arranging mortgage financing. The bank and attorneys are beginning to accumulate data and prepare the necessary documents. I will be monitoring the progress of the sale, so that you can concentrate on the important matters of preparing to move.

Final closing day will be scheduled when all the steps are completed. Both parties must sign the final closing documents. Once you present an executed deed to the buyer and receive a check in the amount agreed upon, your house has been successfully sold!