TIPS

9 Steps To Take Before You Sell Your House

1. (If Purchasing Again) Get Pre-Approved for a Home Loan
I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.
Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.
Start looking for two types of real estate: houses that seem to match the one you'd like to buy and houses that are similar to your current home.


2. Check Your Mortgage Payoff
Call your lender to check the payoff for your current home mortgage. You'll need the figure to complete Step 6.


3. Determine How Much Your House Is Worth
Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy, but you might take it a step further and order an appraisal.


4. Estimate Your Costs to Sell
• Real estate commission if you use an agency to sell.
• Advertising costs, signs, other fees if you plan to sell by owner.
• Attorney, closing agent and other professional fees.
• Excise tax for the sale.
• Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and fuel tank rentals.
• Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.


5. Estimate Costs to Buy a New Home
• Calculate moving expenses, loan costs, downpayment, home inspections, title work and title policy, paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for loan pre-approval.


6. Calculate Your Estimated Proceeds
1. Deduct your mortgage payoff from your home's fair market value.
2. Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.
Will your closing proceeds cover your costs to buy a new home? If not, do you have cash or other funding to make up the difference?


7. Make Necessary Repairs
Make all needed repairs unless you want the house to be regarded as a fixer-upper. I'm not referring to cosmetic updates--just items in need of repair. Anything that's obviously broken gives potential buyers a reason to offer you a lower price, especially if it's one of several repair hot spots that worry buyers the most.


8. Get the House Ready to Show
Most houses need at least a little spiffing up before they are shown to potential buyers. Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances and a clutter-free look are essential if you want the house to appeal to buyers.


9. Get Ready To Let People In
If you're listing with a real estate agent, she'll ask you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding in your personal space.
Unless there's a valid reason for it, don't ask your agent to be present for all showings, because that requirement can be detrimental. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.
Make the house accessible. That means it should always be ready to show. The longer people have to wait to see the home, the less likely they are to be interested in seeing it.

 

 

Should You Start Out with a HIGH Listing Price?

 

Because of the change in real estate market conditions, more sellers are competing for fewer buyers. So once again, it seemed important to challenge a long-standing "myth" of real estate.

"The initial listing price isn't that important because the price can always be adjusted down later."

Many homeowners believe this.

It is a myth.

Not true.

If most buyers first viewed your house because of a newspaper ad, a magazine, the internet, brochures, or the sign in your front yard, the initial listing price probably would not make a difference. The house would always be "new" to those seeing it.

But most buyers do NOT come to your house because of various types of advertising. That is the another myth.

Sure, buyers call on an ad, they often LOOK at that house, but not always. Once they talk to an agent, they may discover it isn't what they need (or want) at all.

However, they ARE talking to an agent. That agent knows the current inventory and will know of other property that DOES fit their needs.

Those are the properties that buyers look at, and THIS is how most buyers end up looking at your house, too. Because of other agents, not because of your ad.

Hardly anyone buys the house in the ad.

As a result, you need to get other agents interested in your property, and this is where your listing agent comes in...and why a good listing agent is extremely important. The listing agent gets buyer's agents looking at your home.

Those agents have clients who called in on other properties.

Buyer's agents are not swayed by advertising. They look at the needs of the client, where the client wants to live, location, condition, and other details of the property...

And most importantly....

...price.

If your house is overpriced, agents are going to show similar homes that are priced more attractively. Your listing will get passed over.

Agents pay MOST attention to homes newly on the market. There are fewer NEW listings than current listings. It is easier to keep an eye out for what is NEW, compared to the vast number of current listings.

New listings are on the "hot" sheet circulated in real estate offices. The MLS computer identifies new listings. Your listing agent may hire a service to distribute fliers to all the buyer's agents. There are office previews and MLS tours to showcase new listings. A lot of attention is focused on what is NEW.

With agent's looking at newly listed homes so aggressively, a properly priced home gets attention.

An overpriced home gets passed over.

You may be thinking, "But I'm willing to negotiate!"

Buyers aren't thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices.

Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you've realized your error. Keep in mind that statistics show, quite often, the first offer is the best offer.

So what happens if you overprice in the beginning and get more realistic later?

You don't have all those important Buyer's Agents looking at your listing because it is NEW. A price reduction later in the listing cycle often gets overlooked. It is just one of many listings, not one of a few new listings.

As time passes, you could actually become desperate to sell because you've accepted a new job or because you have already bought a new home.

That is a recipe for receiving lowball offers, so you could end up selling for less than if you had priced the home correctly in the first place.

Agents know this stuff, but many sellers still mistakenly believe they should "price it high" because they can lower the price later, if necessary.

That is not the best strategy.

 

Buying a Home


Whether you've spent years saving and preparing to buy a home, or are unsure if you can afford it, the questions surrounding a house purchase can feel endless.

You can find the answers - and peace of mind - by working with RE/MAX, the industry leader in experience and service.

Here are some tips to help you become your own landlord.

  1. Hire a real estate professional.
    The first step is to select a professional to help you find your dream home and fine-tune your financial expectations. Working with a buyer agent is worth consideration since he or she is legally responsible for representing the buyer's interest in a real estate transaction. Before making a decision, however, have a Realtor explain the pros and cons of using a buyer agent versus a sales or dual agent. Your RE/MAX Associate can guide you through every step to buying a home.

  2. Shop for mortgage rates and terms.
    A difference of even half a percentage point can mean a huge savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.

  3. Prequalify for a loan.
    Your third step should be to get prequalified, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and really can afford to buy the property.

  4. Define what you want.
    The next step is to create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations.

  5. Visit properties.
    Now you're ready to visit houses. Ask your RE/MAX Associate to arrange showings, and keep track of the properties you've seen.

  6. Know the features that help or hurt resale.
    In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may impact the home sale and future value. Your RE/MAX professional can point out features that hurt or help resale value.

  7. Rate the houses you tour.
    After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the field down. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard.

  8. Make an offer.
    Once you've pinpointed your dream house, it's time to get serious about the financial and contractual side of the purchase. Your RE/MAX Associate will be a strong advantage since you and the seller have different goals.

  9. Arrange for a home inspection.
    After your offer is accepted, set up a home inspection. It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Your real estate professional can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the paperwork. Ask your real estate expert about home protection plans, which may save you money in the near future.

  10. Close.
    Before your closing date, make sure you've made all necessary deposits and completed the paperwork - including mortgage, title, homeowners insurance and any other paperwork required by local or state governments.

  11. Prepare for life in your new home.
    Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas, cleaning or replacing the carpet, and notifying your local post office of your new address. The best time for renovations is often before you move in.

 

 

Selling a Home

As a homeowner, you can play an important part in the timely sale of your property. When you take the following steps, you’ll help your RE/MAX Sales Associate sell your home faster, at the best possible price.

The easiest and most reliable way to improve the appeal of your home is to enlist a quality home service professional. The right professional can help you get everything in order - from repainting the kitchen to providing a thorough cleaning - so you can stay focused on more important things.

  1. Make the Most of that First Impression
    A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted – or at least freshly scrubbed – front door. If it’s autumn, rake the leaves. If it’s winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
  2. Invest a Few Hours for Future Dividends
    Here’s your chance to clean up in real estate. Clean up the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. If you’re worried about time, hire professional cleaners or painters to get your house ready. Remember, prospects would rather see how great your home really looks than hear how great it could look "with a little work."
  3. Check Faucets and Bulbs
    Dripping water rattles the nerves, discolors sinks, and suggests faulty or worn-out plumbing. Burned out bulbs or faulty wiring leave prospects in the dark. Don’t let little problems detract from what’s right with your home.
  4. Don’t Shut Out a Sale
    If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect’s mind. Don’t try to explain away sticky situations when you can easily plane them away. A little effort on your part can smooth the way toward a closing.
  5. Think Safety
    Homeowners learn to live with all kinds of self-set booby traps: roller skates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
  6. Make Room for Space
    Remember, potential buyers are looking for more than just comfortable living space. They’re looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
  7. Consider Your Closets
    The better organized a closet, the larger it appears. Now’s the time to box up those unwanted clothes and donate them to charity.
  8. Make Your Bathroom Sparkle
    Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats, and shower curtains.
  9. Create Dream Bedrooms
    Wake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
  10. Open up in the Daytime
    Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
  11. Lighten up at Night
    Turn on the excitement by turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
  12. Avoid Crowd Scenes
    Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Keep the company present to a minimum.
  13. Watch Your Pets
    Dogs and cats are great companions, but not when you're showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
  14. Think Volume
    Rock-and-roll will never die. But it might kill a real estate transaction. When it's time to show your home, it's time to turn down the stereo or TV.
  15. Relax
    Be friendly, but don't try to force conversation. Prospects want to view your home with a minimum of distraction.
  16. Don't Apologize
    No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced RE/MAX Associate handle the situation.
  17. Keep a Low Profile
    Nobody knows your home as well as you do. But RE/MAX Sales Associates know buyers - what they need and what they want. Your RE/MAX Associate will have an easier time articulating the virtues of your home if you stay in the background.
  18. Don't Turn Your Home into a Second-Hand Store
    When prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
  19. Defer to Experience - It's the Experience®
    When prospects want to talk price, terms, or other real estate matters, let them speak to an expert - your RE/MAX Sales Associate.
  20. Help Your Agent
    Your RE/MAX Associate will have an easier time selling your home if showings are scheduled through his or her office. You'll appreciate the results!

 

 

 

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