| A typical real estate commission on a $234,000 home | | | | replaced--or void the contract. Might as well get that |
| (national median price for all existing homes as of July | | | | part out of the way up front when it can boost your |
| 2005) is over $16,000. In many areas the cut a real | | | | marketing efforts. This is true of any structural, |
| estate broker gets is much higher. A home owner | | | | mechanical, electrical, foundation, roof covering, or |
| can easily save that money by selling on their own. | | | | plumbing system, etc. in the house. If there's a |
| All that is needed is a basic understanding of the real | | | | problem it's best to take care of it beforehand. In |
| estate market and a touch of marketing sense. Here | | | | many areas state and federal disclosure laws |
| are the "Big Five" of selling any home. | | | | mandate that an owner reveals any problems they |
| 1. Pricing. Set a realistic asking price. While it might be | | | | are aware of, including the possible presence of lead |
| tempting to inflate the asking price just in case | | | | paint, mold, radon, or asbestos. Be aware of these |
| someone really loves the home or to make room for | | | | laws. A good way is to hire your own inspector |
| negotiations, the result is a home that can't stand the | | | | before the house is put up for sale. |
| competition. The market always sets the price. Find | | | | 3. Advertising. When the house is bright and shining |
| out what the competition has to offer and set your | | | | to the point where you wonder if you really want to |
| price accordingly. | | | | sell such a treasure it's time to hit the market. This is |
| The best way to do this is have three or four real | | | | the easy part. Run print ads in the leading daily |
| estate brokers provide a free market analysis. Yes, | | | | newspaper noted for home classifieds. Note the |
| you will be wasting their time if you sell on your own. | | | | price, location, number of bedrooms and baths and |
| But don't worry; real estate brokers are used to | | | | the three nicest features of your home--the things |
| having their time wasted. If we earned a $20,000 | | | | that made you buy it in the first place. You needn't |
| commission every time we went out we'd arrive at | | | | bother with monthly publications such as For Sale By |
| your home in a limousine. Fact is, nine out of ten | | | | Owner magazines. Buyers quickly discover that by |
| outings are a bust for us. It's the main reason why | | | | the time a good home is listed it's sold. If you use |
| commissions are as high as they are. In any event, | | | | the Internet, make sure the site is very popular. The |
| you may end up listing with one of them. Fact is, | | | | easiest way to do this is enter a search term a local |
| selling by owner really isn't for everyone. But pricing | | | | buyer would use in Yahoo or Google. For instance: |
| your home correctly is the first step in a successful | | | | you would search "homes for sale in (your town)" or |
| transaction. | | | | "home listings in (your town)". Make sure the site |
| If you choose not to have a market analysis from | | | | you're considering comes up on the first page. You |
| your local Realtors you will have to do your own | | | | may also want to forego open houses. Only 1% of |
| calculations. In order to do that you will need a fresh | | | | homes ever sell on open house. What you mostly |
| batch of comparable sales. The best place to get | | | | get are "Looky Lews" and curious neighbors. |
| these is from your local assessor or municipal records. | | | | Use free word of mouth advertising. Tell everyone |
| You will need between three and five recent | | | | you know, neighbors, friends, family, coworkers that |
| comparable sales. Make sure they really are | | | | your home is for sale. Invest in a professional yard |
| comparable. They must be in the same location | | | | sign. Note the basic features of the home as in your |
| (ideally within a half mile) they must be the same | | | | ad as well as "By Appointment Only" but don't list the |
| style and size as your home (number of bedrooms, | | | | price. Be available to make appointments when your |
| baths, garage, etc.) and they must be in the same | | | | ads are running. Don't rely on voice mail. |
| condition as your home. Drive by each. Take pictures. | | | | When the buyers arrive give them a warm welcome. |
| The hard part is when you can't find exact | | | | Have the dinning room table set with your best china. |
| comparables. You will then have to make | | | | Place fresh flowers. If you have a whirlpool tub put |
| adjustments for the differences. The best way is to | | | | out a bottle of Champaign and two glasses. Bake |
| ask your assessor how much an extra bath, for | | | | bread or cookies, or just put a little vanilla and |
| instance, influences the market value. Hopefully they | | | | cinnamon in the oven at low heat. |
| will provide an approximation. | | | | 4. Negotiations. If you've followed the plan up to now |
| If you can't come up with an accurate dollar amount | | | | you will soon be getting offers. Be prepared for a |
| consider hiring a professional appraiser. They can be | | | | low offer but when any offer comes in always insist |
| found in the yellow pages or online. And while the | | | | on a pre-approval letter from the buyer's lender. |
| service costs several hundred dollars it's a small price | | | | Review the offer with your attorney. You can |
| compared to what you will save by successfully | | | | counter the offer but be aware that the buyers are |
| selling on your own. | | | | under no obligation to accept your counter-offer. And |
| Avoid pricing your home based on how much you | | | | that anything but full acceptance of their offer usually |
| paid, how much you owe, the amount of the | | | | voids it. All terms of the contract are negotiable, not |
| municipal assessment, the cost of improvements you | | | | just the price. |
| have added, or what a friend or neighbor thinks it's | | | | Do not, under any circumstances, become |
| worth. The market doesn't care a bit about these | | | | emotionally involved in the negotiations. This is the |
| factors. | | | | one area owners are never as good at as Realtors |
| However you arrive at a price it will usually be | | | | (except when it's the Realtor's own property in |
| expressed as a price range. Aim for the upper end of | | | | question). Consider only whether you can realistically |
| the range if your home is generally in better condition | | | | do better and that the amount you will net will allow |
| and has nicer amenities than the competition. Aim for | | | | you to proceed with your move. |
| the low end if you need a quick sale. Otherwise stay | | | | When price and terms are agreed upon get |
| in the middle and prepare to be flexible. | | | | everything in writing. Do not fail to use a qualified real |
| 2. Appearance. My father always said, you never get | | | | estate attorney. |
| a second chance to make a first impression. Nowhere | | | | 5. Processing Period. The time between when a |
| is this truer than marketing your home. Anything | | | | contract is fully executed and the time you give |
| amiss--including a funny smell--will send your | | | | possession is when all contingencies in the contract |
| prospects on to the next house. Take a picture of | | | | are met. Different areas have different customs as |
| the front. Compare your "curb appeal" with the | | | | to who does what and who pays the bill. But in |
| pictures you took of the competition. Pretend your | | | | general there will be a time period for both the buyer |
| home is going to be in House Beautiful Magazine. | | | | and the seller to have the contract ratified by their |
| Clean, paint, resurface, mow, weed, trim, plant, | | | | attorneys. In addition, a mortgage contingency will |
| replace anything that looks shabby or worn. | | | | allow the buyer to secure financing based on their |
| Now step inside. See your home as if for the first | | | | qualifications and the bank's appraisal of the home's |
| time, as buyers will. A fresh coat of paint, new | | | | worth. Usually there is a provision for a structural |
| draperies, and new carpeting (or professional | | | | inspection, as noted earlier, for the buyer to assess |
| cleaning) will do wonders for your sales appeal. Again, | | | | the condition of the home. A target closing date is |
| consider what you would be paying a Realtor. | | | | also included when possession is given the new |
| Remove all clutter and excess furniture. The only | | | | owners. Generally, this is an estimate of transfer of |
| items in a bedroom should be a bed and a dresser. | | | | ownership with delays common, unless wording such |
| Anything else makes the rooms look smaller. | | | | as "time is of the essence" is incorporated into the |
| Next evaluate the kitchen and the baths. These are | | | | contract. Beyond the basics there are a host of |
| the single most important rooms in the house in | | | | other possibilities for contingencies in a contract. |
| terms of buyer appeal. Again, clean, paint, and | | | | Anything, in fact, that is legal can be included. That's |
| consider replacing the flooring with something light | | | | why you should always use a real estate attorney. |
| and bright. Wash the windows. If your appliances or | | | | Finally, the closing day comes and it's on to your next |
| fixtures are old consider replacing them. Most buyers | | | | dwelling. It's been a hard road--much harder than |
| these days are including a contingency in their offer | | | | most people expect--but the extra money you save |
| to purchase contract for a professional home | | | | will go a long way towards easing your pain in your |
| inspection. If an appliance or fixture is a problem it will | | | | new home. Enjoy! |
| be noted and the buyer will expect it to be | | | | |