Tips to Selling Your Home
If you've decided to sell your home, chances are you're caught up in a host of emotions. Keep in mind the following considerations to help the whole process go more smoothly.
Time Becomes Money
Place your home on the market as far in advance as possible of purchasing a new one. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments
Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.
Check Your Curb Appeal
• Are the lawn and shrubs well maintained?
• Are there cracks in the foundation or walkways?
• Does the driveway need resurfacing?
• Are the gutters, chimney and walls in good condition?
• Do the window casings, shutters, siding or doors need painting?
• Are garbage and debris stored out of sight?
• Are lawn mowers and hoses properly stored?
• Is the garage door closed?
On the Inside
• Cleaning is No. 1. Your windows, floors and bathroom tiles should sparkle.
• Make sure you have clean heating and air conditioning filters.
• Shampoo dirty carpets, clean tubs and showers, repair dripping faucets and oil squeaky doors.
• Keep your home neat, clean and picked-up at all times.
• Remove unnecessary clutter from the garage, basement, attic, closets and straighten stored items.
• If your home is crowded with too much furniture, consider putting some things into storage.
• If a room needs a fresh coat of paint, use a neutral off-white.
• Think, too, about how your home smells. You may be used to the smell of a pet or cigarettes, but such
odors can be a strong turn-off to others.
• Finally, set a mood for the buyer. Make your house homey with live flowers and fresh guest towels in the
bathroom. Place scented potpourri around the house or, on the day you're expecting a potential buyer, pop
a batch of frozen cinnamon rolls into the oven for a welcoming aroma.
Don’t Go It Alone
Some homeowners decide to sell their homes themselves in order to save the commission charged by a real estate agent. The commission rate may vary, depending on where you live or what agency you choose, but it is generally upwards of 5%. However, handling your own sale means you will be responsible for placing ads, answering phones and showing your home to strangers. What's more, buyers who know you are saving on an agent's commission may offer less for your home, wiping out the financial incentive to do it all yourself.
Here are some of the advantages a professional agent offers:
• They will help you establish a fair asking price for your home.
• They will promote your home to other agents and list your property in multiple listing services. A multiple listing
service is a book or computer database that all real estate agents who subscribe to the service can access.
Your home will get exposure to all those agents, one of whom may have the perfect buyer.
• They will create, pay for and place advertising for you.
• They will schedule appointments to show your home to prospective buyers even when you are not there.
• They can weed out buyers who will not qualify for a mortgage.
• They can refer you to sources for insurance, inspections, legal counsel and financing.
• They will help you negotiate with the buyer.
• They can make suggestions to help make your home more attractive to a potential buyer.
Setting a Fair Price
Here are some of the factors to consider in pricing your home.
• Your location
• Economic conditions
• Supply and demand in the local housing market
• Seasonal influences
• Local schools
• Average home prices in the neighborhood
• Your home's extras -- pool, fireplace, central air, etc.
• To determine the value of your home, you probably will want the advice of a real estate agent or appraiser. Ask
an agent to prepare a market analysis for you, showing the recent selling prices of three neighborhood
properties comparable to your own. The agent can help you adjust for the unique features of your own property.
What to look for when qualifying a Buyer
• The buyer's debt and credit history
• The buyer's current income and employment
• The buyer's cash position and availability of a down payment
• The length of time the buyer needs before closing on your home
• How interested the buyer appears to be in your home versus others
Seek Legal Representation
Look for an attorney with expertise in real estate transactions. When a potential buyer puts an offer in writing and you accept it, the signed acceptance becomes the sales contract.
Tax Implications
Check with your tax consultant on the factors that may affect taxes resulting from the sale of your home.
For example:
• Whether you purchased the home or acquired it by gift or inheritance
• Whether you used your home partly for business or rental
• Costs associated with selling your home
• Home improvements or additions, which may help to offset capital gains
• The sale of your home. In certain cases you can exclude up to $250,000 in gain ($500,000 for married couples
filing a joint return) on the sale of property that was your principle residence for at least two years. Generally,
you can use this exclusion every two years.