As owning a home is such a personal endeavour, chances are you’re caught up in a host of emotions while selling it. You may be looking forward to moving up to a new dream house or facing the uncertainty of a major move across country. You may be reluctant to leave your memories behind or eager to start new adventures. Through all of these emotions, there are still some crucial moving factor that need addressed. Keep in mind the following considerations to help the whole process go more smoothly.
Time = Money It’s a good idea to 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. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you qualify for a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. Shop around for the best terms.
Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.
Check Your Curb Appeal There is really only one chance to make a first impression. A home that’s visually appealing and in good condition will attract potential buyers driving down the street. Use this checklist to view your property through an outsider’s eyes.
On the Inside Your home's curb side appeal will lure potential buyers inside, where you have to live up to their expectations. Fortunately, there are plenty of improvements you can make to your home’s interior without spending a lot of money. Cleaning is your number one essential task. 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 well kept at all times. Although it may not seem fair, a buyer may make their decision, whether or not to purchase, based on a whole lot of variables. Remove unnecessary clutter from all major storage areas, and clean up the extra clutter. Also remove any items that some may deem to be offensive. Consider putting some things into storage to create more room. 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 turn-off others. Set a mood for the buyer. Place scented potpourri around the house or, on the day you’re expecting a potential buyer, or pop in a batch of cookies into the oven for a welcoming aroma. Finally, be certain to remove valuables such as jewelry and other items from view. It might be wise to put these items in a safe deposit box before showing your home.
Minor cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It’s attention to the basics—anything that says “we care about this home”—will help you get the price you want
Go It Alone--or Choose an Agent? Some homeowners decide to sell their homes themselves in order to save the commission charged by an 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. 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.
A Real Estate Agent probably knows a lot more about the business of selling a home than you do. Here are some of the advantages professional agents offer:
If you do decide to sell through an agent, ask around for referrals. Shop around for an agent that you get along with, and one who you feel will be able to properly showcase your home. Taking a walk through your home with an agent should give you a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home. Don’t sign with an agent just because he or she suggests the highest asking price. Negotiate the broker’s commission prior to listing your home, and sign for a limited period of time—usually three to six months.
The Fine Line As anyone would, you want the top dollar for your home. But, at the same time, you don’t want to scare off potential buyers with an outrageous price tag. Setting a high price may cause your property to sit on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider when walking the line between offensively pricey and suspiciously low:
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.
Legitimate offers from legitimate Buyers
Either you or your agent will want to quickly weed out potential buyers who cannot realistically afford to purchase your home. Here are some crucial factors in telling if he offer will be a serious bid, or if the bidders will no be able to finance your home.
When selling your home—particularly if you are selling on your own—it’s a good idea to be represented by an attorney. 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. Your attorney will be present at the actual closing to protect your interests and can assist you with the following elements of a sales contract:
Oh, Mr. Taxman... Selling a home can have a major impact on your tax returns. Check with your tax consultant on the factors that may affect taxes resulting from the sale of your home. For example:
