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Home Selling Tips.
Advice for Today's Home Seller.
- Know what your house is worth. Price
your house too high and your home may linger on the market. Price your house
too low and your
home may
sell so quickly that you may end up kicking yourself later. So how do you
price your home right? Do your homework. Ask an agent (or maybe three different
agents) to prepare a Comparative Market Analysis for
you, showing the recent selling prices of three near-by properties comparable
to your own. Most agents
will do this for free. Then look for unique features of your home that may
lead it to be priced lower, or higher than these comparable homes. Your agent
can help here. When looking at these comparable homes (hopefully your agent
has pictures), take a real hard look, is the only difference between the highest
priced home
and the lowest priced a good paint job and a manicured lawn? Are there
things you can do to get a better price or sell your home more quickly? When
should you pay for a professional House Appraisal?
When you can't find comparable homes with recent selling dates. But if you
are going to pay for an house appraisal, try to get someone who is working
independently, and not out of a real estate office.
- Know what it means to buy a listing. This
refers to the practice of promising to list your property higher than the
current market
value in order to convince you to sign an Exclusive
Right to Sell Agreement.
Before an agent can make any money selling your home, he needs you to sign
an agreement to pay him a commission. He will very likely tell you exactly
what you want to hear. Just remember, even if this agent is able to get you
your price, at some point your buyer is going to have qualify for a mortgage
loan, which means the bank is going to have to appraise your property close
to
your selling
price. If an agent tells you he can get more money for your home than other
comparable homes in the area, make sure he can give you specific reasons
that ring true. Your home is fully detached.
Brick sells for a premium. You have a rentable basement.....
- Know what an Exclusive
Right To Sell Agreement is. An Exclusive
Right To Sell Agreement guarantees
your agent a commission no matter who sells the home. This agreement is
not necessarily a bad thing. An agent will likely work much
harder for
you
once
you've signed
one
of these. More willing to spend money on advertising, schedule open-houses,
and list in the MLS (Multiple Listings
Service).
- Know what the MLS (Multiple Listings Service)
is. The MLS is
a huge network and practically every local agent is a member. This network
is often the most effective mechanism for selling your home.
By listing in the MLS your
real estate agent is agreeing to split his
commission with any real estate able to provide a buyer. And you have in
effect hired most of the real estate offices in your area
to sell your house. If your thinking that sounds a lot more effective than
a local ad in your local paper -- your right. So make sure your agent is
a MLS member. But even if
your agent is a MLS member,
he may be slow in listing your home on the MLS --
not wanting to split the commission. You may want your agent to specify
whether the house will be listed in the
MLS,
as part of the Exclusive Right To Sell Agreement. If
your agent has promised any other kind of local advertisement, you may
also want him to include those promises as part of this agreement.
- Know you can negotiate your commission. Do
you
live
in a area
where
there's
a real
estate office every four blocks, don't be surprised if you can get an agent
to agree to a 3% commission and a guaranteed MLS listing. On the other
hand, if your area only has one real estate office, you might have no choice
but
to pay that traditional 6% commission.
- Know that expensive renovations rarely pay
for themselves.
But there are inexpensive things you can do to help your property move. The message that you are trying to send the buyer
is that this home has been well taken care of.
-
Walk
up to your house as if you were seeing it for the first time. What you
want is maximum curb appeal at minimal expense.
- Does the lawn need to be mowed?
- Could you use a few more flowers?
- Do the shrubs need trimming?
- Are there cracks in the foundation or walkway that need to be fixed?
- Do the fences, windows, doors,
or siding need painting?
- Are any window panes broken?
- Do your windows need cleaning?
- Is the garbage stored out of sight?
- When was the last time you swept out the driveway or in front of your
house?
- Is garden hose put away?
- Now walk inside your house. The same principal applies, maximum
appeal at minimal cost.
- Do your windows, floors and bathrooms sparkle (This should include
the bathtubs and showers)?
- Are your window curtains clean?
- Are your air-conditioning and heating filters clean?
- Do the rugs need shampooing?
- Are there leaking faucets, and pipes that need fixing?
- Does your roof leak? (If your roof does leak, fix it now. If you are
forced to disclose the leak later, the buyer may demand
an entirely new roof.)
- Are there water stains from previous leaks? Paint them now.
- Do your light bulbs need
replacing? The more the better.
- Is your home neat and clean? Neatness makes
your rooms look bigger.
- Does your garage/attic need to cleaned out?
- Do your closets need straightening?
- Are the rooms over-crowded with furniture?
- Is your home filled with family pictures and trophies?
- In general, you should put as much as practical in storage. This is
includes family photos and trophies. You want the buyer to picture himself
and his stuff in your space. Hard to
do
if there is no space. Everything, from rooms to attics to closets to
cabinets, will look bigger with less in it.
- Are there any rooms that need painting? Use a neutral off-white color.
- Do you have any creaking door hinges? WD40 is your friend.
- Do your door knobs all work? Do they sparkle?
- Does your home smell? Pet or cigarette odors can be a big turn-off.
Change the litter box more often, and start going outside for a smoke.
Keep a clean ashtray outside somewhere (porch, yard)
and point to it when guests ask for an ashtray. Carpet freshener may
also be a good idea.
- Just before an agent shows your house:
- Put valuables such as jewelry in a safe deposit box. Expect potential
buyers to open drawers and cabinets.
- Close the garage door.
- Park the kids and your pets with a neighbor.
- Put all toys in the children's rooms.
- Turn on all the lights.
- Open all the curtains (unless of course the window looks out on an
unattractive wall). This should make your rooms appear larger.
- Remove all ashtrays and other evidence
of tobacco.
- Turn off appliances.
- Leave some soft music playing in the background.
- Make your beds.
- Put fresh guest towels in the bathroom.
- Scented potpourri can be a nice touch.
- Leave if you can. If you can't leave then try to stay out of the way.
Buyer's like to kick the tires -- open closet doors, walk
into bathrooms, and bedrooms, flick switches. They may not feel comfortable
doing this if you're watching. You don't want a potential buyer to feel
like he's intruding and hurry through your house.
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