Because your home may well be your largest asset, selling is likely one of the most important decisions you will make in your life. Be sure you understand the homeselling process, and educate yourself to be in control of your situation, reduce stress, avoid the common seller pitfalls, and make the most profit possible.
Define your motivation for selling. It affects everything from setting your asking price, to preparing your home for sale, and even negotiating any offer. Don’t lose sight of your purpose. If you must net a certain amount to allow you to purchase your next home or to pay off your mortgage, it may preclude you from accepting an offer.
Do your homework. Research the last three to six months of actual home sales of comparable properties to determine a fair and reasonable price. Homes that are overpriced take longer to sell and ultimately sell for less than they would have had they been priced correctly.
Learn about your competition. Current inventory impacts your potential sales price. Check out other open houses to note floorplans, condition, appearance, size of lot, location and other features so that you can highlight the amenities of your home and its distinctions.
Think of what led you to buy the home in the first place, and highlight those features for potential buyers, as well as any updates and energy-efficient features of your home. Buyers often request one year of utility bills to help them evaluate costs, so have that information available.
Do not rely on county tax assessments. The county’s assessment of your property may not be the most accurate. Instead, rely on actual market sales in your area or a professional appraisal.
Carefully select your Realtor. According to the National Association of Realtors, nearly two-thirds of people who sold their own homes say they would not do it again themselves because of liability concerns, time constraints, and inability to determine pricing. If you choose to use a Realtor, evaluate each candidate on the basis of experience, qualifications, enthusiasm, personality, and knowledge of your market.
Position your home to sell. First impressions are critical. Take steps to maximize your home’s curb appeal, and
“stage” your home to increase the emotional response of buyers. Your Realtor should advise you on repairs and improvements you need to make, as well as inexpensive treatments like painting that can dramatically improve a property’s sellability.
Listen to others. Sometimes it is difficult to be objective about your own house. Solicit opinions from your Realtor and friends, and carefully evaluate any feedback you receive from buyers and their agents.
Clean and fix everything. Scrub, scour, tidy up, straighten, declutter, repair squeaks, and repair faulty light switches and outlets. Change bad light bulbs and A/C filters. Small details can be Deal Killers!
Neutralize your home. You want buyers to visualize themselves in your home. Avoid clutter like knick-knacks. Decorate in neutral colors, like beige and white. Well-placed flowers can give a room vibrance - Just be certain to remove them when they wilt.
Odors must go! Buyers will quickly eliminate a property based on smells like traces of food, pets and smoking odors. Deodorize rooms and professionally clean carpets if necessary. Candles, potpourri and diffusers can provide a fresh scent.
Remove Fido. Don’t leave your dog in your home for showings. Some buyers are very uncomfortable viewing a room if a dog is inside, even if crated. Also, buyers may accidentally leave doors or fences open, so avoid the risk of your dog getting out.
Disclose everything. With few exceptions, seller’s disclosures are required by law. Disclose all known defects to your buyers in writing. This can reduce liability and prevent lawsuits later on. Also be sure to disclose deed restrictions, utility districts, and mandatory homeowner’s associations.
Remain unemotional. Be business-minded in your negotiations. Do not dismiss any offers. A low offer is still an offer, so don’t take it personally. There are many strategies for responding to a low offer, and with a careful response, you may be able to negotiate your way to an acceptable offer, whereas an inappropriate response might cost you a buyer.
Promote aggressively! Selling your home is NOT a passive process. Select an agent who has a strong, proactive marketing plan that extends from the day your home goes on the market until it sells. In today’s market, simply listing a property on HAR.com and sticking a sign in the yard are not enough. You need an incredibly strong Internet presence.
Know your buyer. Before entering a contract with a buyer, do your research. The more you know about the buyer, the better your bargaining position. Ask questions to determine their motivation, and find out when they need to close.
More importantly, it’s critical to know that your buyer is qualified. Require proof of funds or a preapproval from a recognized lender, and determine whether the buyer must sell his home in order to buy yours. If you receive more than one offer, carefully analyze all terms, including the amount of downpayment and type of financing. In some instances, the lower-priced offer is actually the better choice.
Contingent offers. Fully understand the impact of contingencies before accepting them in a contract. There is significant risk to tying YOUR sale to the sale of your buyer’s home, and there are specific protections you should incorporate if you do agree to accept a contingency.
Moving out before you sell. Furnished, occupied homes routinely sell faster and for more money than vacant homes. They show better and do not convey a message of desperation or motivation to sell. If you must vacate, consider staging your home. Some Realtors provide this service as part of their marketing programs.
Don’t set an arbitrary deadline. Selling your home is stressful enough without adding the unnecessary pressure of a deadline. Certain circumstances will dictate the deadline for you, but unless required, let the market and overall circumstances dictate the timeline that accommodates your personal goals.
Ensure the contract is complete. To avoid problems, including the risk of a buyer walking away at the last minute with no recourse, ensure that all terms, costs, responsibilities and disclosures are spelled out clearly in the contract. The first step is selecting the right contract for the type of property you are selling, as different contracts are used for new versus existing construction, as well as for condos versus townhomes and single-family homes. Second, be sure every appropriate blank in the contract is completed accurately and all terms are written legibly. And finally, note that the omission of forms, disclosures and even minor terms can result in an unenforceable contract.
Follow the contract to the letter. A contract is a legal document, and deviating from its terms can have significant consequences. Follow timelines closely, including delivery of option fee and earnest money checks, deed restrictions and condominium association documents. Obtain a delivery receipt for anything you are required to provide to the buyer.
Exit strategy. Plan ahead to know where you are going to move once your home sells. Sometimes this involves short-term corporate housing and putting furniture in storage. If you are buying another house and need to sell your home first, there are complicated timing details that must be worked out, and the inventory of homes available during your timeframe may not be ideal. Consider whether a “temporary lease back” is a solution, and be certain you understand the risks involved.
The Puryear Team of RE/MAX Metro consists of five licensed agents and additional support staff. Team leader
Donald Puryear is a top-producing broker associate and licensed attorney.
