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PRICING
Price is the most important factor in selling your home. Price it high and most agents will not show your home and buyers will pass it up for being above what they can afford. Price it low and you may risk selling your home for less than what it's worth.
There are several components in pricing a home: 1) Find out the sale prices of homes that sold recently in your area with similar features to your home, 2) if you have an agent, have the agent who has access to MLS data analyze comparable sales and provide you with a comparative market analysis (CMA) to set a realistic asking price, 3) if necessary, get an appraisal, 4) study your competition and how the homes presently on the market compare to yours, and 5) consider the current state of the market for increases or decreases in prices, the demand for homes in your area, and the average number of days to sell.
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CONDITION OF HOME
The second most important factor is the condition of your home in order to sell.
Take an objective look at your home and repair any obvious cosmetic defects prior to putting your home on the market. Prioritize what needs to be done and decide how much time, effort and money you can spend to make your home look its best. Avoid overspending especially if there are few homes for sale and many buyers willing to purchase at almost any price. In a down market, you may need to consider making a major repair in order to attact buyers.
There are three categories of fix-ups:
Basic - Requires more elbow grease than money. Examples: De-cluttering, washing windows, cleaning out closets, mowing the lawn, and trimming the bushes.
Basic, Plus - Requires elbow grease, plus some cash outlay. Examples: Painting the walls and replacing the carpet.
Major - Requires extensive renovations. Examples: Updating kitchen countertops and installing new appliances and replacing the roof.
Note: Extra upgrades and remodeling could help sell a home more quickly but they have only a small effect on the market value of a home. If you are thinking about updating your home, concentrate on two key rooms - the kitchen and the master bath - for a return on your money.
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MARKETING STRATEGY
The #1 way to advertise and sell your property is by being listed in a Multiple Listing Service. Placing your property in a multiple listing service lets tens of thousands of real estate agents know that your property is for sale. Furthermore, when your property is listed on a multiple listing service, your listing syndicates to hundreds of public-access real estate websites, including Realtor.com, Zillow.com, and Frontdoor.com, and reaches buyers - over 85% of them - who now search for properties online.
Because a high number of buyers search online, how your home presents online is very important and often the first battle to get buyers to take the next step to see your home in person.
Good photos on your listing are essential. Buyers are visual and notice photos before the written word. Listings without photos or only an exterior shot of a home are often passed up. Buyers also like virtual tours. It could be a slide show or a 360 degree tour.
The following are additional ways to market your property:
A "For Sale" Sign. It encourages buyers driving by to call for information about your home. On a real estate broker sign, the firm's phone number and the agent's contact number are printed; while the caller is "hot," the call goes to a live person who can answer questions immediately.
Flyers. Flyers placed in a brochure box outside for drive-bys to pick up provide details about your property. Buyers can call for additional information or request a tour of your home.
Open House. Your home opened to the public to invite potential buyers. Open house signs placed throughout the area to direct people to your home and, through an agent, your open house may be advertised on your listing and on the Internet.
Feedback. Obtaining feedback after a showing is vitally important to learn what an agent and the agent's buyer thought about your property. Any corrections or improvements suggested could help sell your property successfully.
Craigslist.com - A very popular site for buyers to search for homes for sale.
Advertise your property in newspapers (the online versions of the ads are growing more in popularity).
Direct Mail. Postcards announcing your property for sale are sent to your neighbors who may have friends and relatives moving near them.
E-Flyers. An agent can send flyers by e-mail advertising your home to other agents who sell in your area.
Advertise in real estate publications, such as the Real Estate Book, through an agent.
Agent Luncheon. Agents from the surrounding area may be invited to view your home if your home is listed. By serving lunches and offering door prizes, agents and brokers are enticed to visit to better remember the details about your home. Hopefully, they will have buyers to bring back to show your home.
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SHOWINGS
Do whatever you can to put your home's best face forward. How your home looks can have an impact on a buyer's first impression.
To make your home show better, start with curb appeal. Statistics indicate that about half of all home sales are determined at the curb. If needed, consider a fresh coat of exterior paint on your house. Landscape your yard - prune the bushes, plant flowers, and mow the lawn.
For the interior of your home, basically, it boils down to the following: De-cluttering, minimizing decorations, depersonalizing, keeping the home clean, neutralizing offensive odors, and making your rooms look light and bright by opening curtains, blinds and turning on lights.
If you have a choice, it is usually better to sell your home while it is still furnished. Generally, homes that are furnished sell more quickly and at a higher price than vacant homes.
To add the "Wow" factor, stage your home. Go study the arrangement of furniture and interior decorating of model homes to determine how they play up the home's good features and minimize the home's drawbacks. You may need to invest some money to mimic the popular "look" so that it doesn't take your home longer to sell and for a lot less.
After your home is all set to show, make your home as accessible as possible to agents and buyers. If an agent or a buyer cannot easily show or see your home, your home may be passed up. Allow agents to give you a courtesy call to show your home and put an agent-access lockbox on your door; avoid by appointment only, no lockbox, and restricted hours for agents. |
OFFER
An offer should be in writing.
When you receive an offer, the common first impulse is to react to the offer price. While price is an important factor, there are other factors to consider. They are as follows:
Is the buyer qualified? A pre-approval letter from a lender should be included with an offer. The sale of the property will be contingent upon the ability of the buyer to obtain a loan.
Amount of the earnest money. Its primary purpose is to serve as a source of payment of damages should the buyer default.
How much the buyer is asking you to contribute toward closing costs. Closing cost items* are expenses of a sale. The contribution amount is negotiable.
Date of closing. You must have time to select your next home, obtain financing, and move into your new home by the proposed closing date. If you do not have time, check if you can lease back from the buyer.
Check if the buyer chose a "Due Diligence Period" or to purchase the property "As Is." Due diligence is a length of time (14 days, for example) during which the buyer can conduct evaluations, inspections, appraisal, examinations, surveys, testing and obtain/finalize approval for a loan. The buyer may exercise the right to terminate the contract during this period for any reason. If the buyer has chosen "As Is," the seller has no obligation to make any repairs or replacements to the home.
Contingencies. Check if the buyer has attached any contingencies such as the contract being contingent upon the buyer's ability to sell a present property owned by the buyer before purchasing yours.
On responding to an offer, you have three choices: 1) accept the offer as presented, 2) reject the offer, or 3) make a counteroffer. Most sellers select the third choice and try to give the best effort to negotiate. |
COUNTEROFFER
Counteroffer in writing. Make changes and initial directly on the original contract form or use a counteroffer form until the negotiations reach a common ground.
If the contract is contingent upon the buyer selling their present home, you may consider including a kick-out clause. The clause allows you to accept another offer unless the buyer can remove the contingency within a specified time, such as within 48 to 72 hours. |
REPAIRS/REPLACEMENTS
If you have negotiated to make any repairs or replacements to your property, find the vendors that you will need. Prior to the closing date, a walk-through by the agent or the buyer will be set up to confirm that the repairs or replacements have been made.
If the buyer has concerns after the walk-through, expect the buyer to put the request(s) in writing. Repair/replacement problems can be taken care of after the closing but make sure you have a written agreement to that effect and a specified timetable to complete the work. |
PRE-CLOSING PREPARATION
About seven to ten days before the closing, the closing attorney's office will send you a Seller's Pre-Closing information form in preparation for the closing. The form enables the closing attorney's office to obtain your mortgage loan payoff amount and other pertinent information. Follow-ups with the closing attorney's office are necessary to check if the closing is proceeding as scheduled and to receive a copy of your Settlement Statement as soon as possible for your review (most often, the Settlement Statement will not be available until the day before closing or sometimes just prior to closing). |
CLOSING
Take a photo I D, such as your driver's license, and items such as keys to the home, garage door openers, and receipts for repairs (check with the closing attorney's in advance on any items that you will need to take).
At the closing, if you are represented by an agent, your agent will make sure everything goes smoothly. Should any last minute problems come up, your agent will mediate in order to close. |
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* CLOSING COST items and typical fees:
Attorney Fee: $450
Lender's Title Insurnce: $2 per Thousand of Loan Amount
Owner's Title Insurance: $1.50 per Thousand of Purchase Price
Title Exam: $155
Tax Report/Review Fee: $25
Title Binder Fee: $50 (if applicable)
Wire Fee: $25 (per payoff)
Courier Fee: $50
Recording/Filing Fee: $80
Post Closing Fee: $50
Intangible Tax: $3 per Thousand of Loan Amount
Transfer Tax: $1 per Thousand of Purchase Price
Power of Attorney: $50 (if applicable)
Additional Deed: $25 (if applicable)
Mail-Out Fee: $150 (if applicable) |
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