1. Needs Analysis
It is important to set out in writing the reasons that are motivating you to sell your current home. Explore your short and long term goals and decide how selling your house fits into those goals. Discuss with your agent about (1) the length of the listing period (2) the desired sales price, as well as a price that might be accepted (3) the amount of the commission. Doing this will help you to establish a time management path for selling your home.
2. Pricing Strategy
The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent’s knowledge of the overall market and what’s selling — or not selling — will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won’t leave money on the table.
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 an non-biased view of your property, so you will want to gather the necessary information in the most objective way possible.
Setting a fair asking price from the outset will generate the most activity from other real estate agents and buyers. You will need to take into account the condition of your home, what comparable homes in your neighborhood are selling for, and state of the overall market in your area.
3. Property Preparation
First impressions are very important and you only get to make one. How your house looks will have an immense impact on how quickly it sells and whether or not you get full market value for it. A house that is marked with your personality and style may be harder to sell.
Make your house look as spacious as possible. Organize your closets and kitchen cabinets, and if you have things stored in the attic or basement, make sure they are presentable. If you are showing during the day, pull back your curtains and drapes to show how bright and cheery your home is. If you are showing at night, turn on all of the lights to create a warm and welcoming environment for the prospective buyers.
4. Marketing Strategy
Establishing a marketing strategy is a must. You will have to decide how you want to get the word out there that your house is for sale.
There are many ways to get the word out, including:
• The Internet
• Yard signs
• Open houses
• Media advertising
• Agent-to-agent referrals
• Direct mail marketing campaigns
5 – Receiving an Offer
When you receive a written offer from a potential buyer, your real estate agent will first find out whether or not the individual is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, taking care to understand what is required of both parties to execute the transaction. 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 At this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it. Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with your real estate agent right away.
6. Negotiating to Sell
Most offers to purchase your house will require some level of negotiating to come to a win-win agreement. It is critical that you be well versed on the legalities of the real estate contract used in your area. And of course, I can be of immense help in this arena, having done it so many times before from both sides of the table.
7. Sell
Once you have finally accepted an offer to sell your house, your agent continues to make a list of all the things you must do as the seller, and a list of all the things the buyer must do, in order to proceed successfully to closing.
A lot can happen in between if you’re not careful, and often does with realtors who are less prepared, letting much slip through the cracks, only to be hit with weighty contingences in the end.
Due to the points of the contract previously negotiated, of which you will have been fully apprised, the property may need to be then 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.
8. Pre-Close Preparation
A few days before the closing, your agent will contact whichever entity that is closing the transaction, generally the lawyer, title company, etc. and make sure that all of the necessary forms and documents have been prepared and are going to be available to sign on the appropriate date.
9. Closing
This is where ownership is legally transferred to the buyer. As the seller you will need to be prepared to give 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. Double check and be sure and read all the documents. Mistakes are more common than you might think.
10. Post-Closing
After the closing, you should make a “to do” list for turning the property over to the new owners. You will need to do such things as make sure that all of the local services (i.e. electricity, gas, lawn care, cable, etc.) have been canceled or, if the new owner is going to retain some of the services, the name for the account should be changed. The property and anything assigned to the buyer according to the contract, should be prepared appropriately for the new owners.
Here is a checklist to get you started.
• Cancel electricity, gas, lawn care, cable and other routine services.
• If the new owner is retaining any of the services, change the name on the account.
• Gather owner’s manuals and warranties for all conveying appliances.