Here you can find helpful articles about the home selling process, holding an
open house and much more. Whether you're a first time seller or a veteran, you
can find helpful information to make your home selling experience a pleasurable
one.
(click on a link below to view the article)
5 tips for a better open house
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Clean. Be sure to clean your house. Potential buyers do not
want to see your dust and dirt as it alerts them that you may not be taking
care of your home.
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Repair.
Consider making minor cosmetic repairs and upgrades such as touching up paint
and planting fresh flowers. Small un-repaired items can be "red flags" for
potential buyers.
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De-clutter.
Put away the knick-knacks, toys, toiletries, excessive items on bookshelves,
newspapers, mail, etc. A crowded house makes it look smaller and makes it
harder for buyers to imagine themselves living in it.
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De-personalize.
Take down family photos, trophies and other personal effects, even books on
your nightstand. Make the house feel warm and inviting and very neutral. Buyers
need to imagine the house as a blank slate, ready to be occupied and
personalized by them.
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Promote. Make sure your open house is listed on the internet.
www.OpenHouseGuide.com provides you with the perfect venue to advertise your
open house online. You can also send out flyers, and put up lots of signs.
Open House Don'ts
DON'T leave dirty clothes all over the bedroom floor, your bed, in the bathtub
or even in the laundry room. No one wants to see your dirty underwear, or even
your son's sweater draped over a chair. Dirty clothes belong in a hamper. And,
don't forget to make your bed.
DON'T leave dirty dishes in the sink, on the counter or anywhere except in a
dishwasher. And even then, you should run the dishwasher so that you have time
to empty it before you get out of the way for the showing. No one wants to
imagine what you made for dinner last night. Be sure to sweep the house for
coffee cups, milk or sippy cups, or other remnants of late-night snacking.
DON'T leave a filthy house, hoping the buyers will see past the dustballs near
the couch -- they won't, and as they run their fingers over your dusty window
frame, they'll just wonder what other maintenance projects you've let slip.
DON'T allow odors from pets, babies or other unappetizing smells (think
bathrooms, garbage and smelly cheese in the refrigerator) to permeate your
home. If you think your home might smell bad, ask a neighbor to give it a
"whiff test." If your house does smell bad, don't try to mask it with a spray.
Buy a roll of refrigerated cookie dough and slice and bake some on a piece of
tinfoil just before the showing. It'll make your house smell good enough to
eat.
DON'T assume Mother Nature is your friend. Prepare for whatever weather is
seasonally appropriate. If it's winter, then be sure your walk is shoveled and
salted. If it's wet, be sure to leave out a tray for wet boots. And while we're
on the subject.
DON'T assume that prospective buyers will treat your house as if it were already
theirs. If you don't want muddy shoes or boots on your white carpets, create a
nice laminated sign that nicely asks everyone to remove their shoes. Then,
provide a basket of booties or socks for buyers and agents to slip on as they
walk through your home.
DON'T leave vacant rooms filled with junk, toys or spillover messes from other
rooms. If you're lucky enough to have too much space in your house, make sure
your empty rooms are pristine.
DON'T leave personal information such as mail or bills out in the open where
anyone can see it. Be sure to lock down your computer and lock up your laptop
and any other expensive, easy-to-pocket electronics, like iPods, before your
showing.
DON'T leave money, jewelry or other valuables out in the open or even in typical
hiding places, like the top dresser drawer. Invest in a safe or put your
valuables in a brown paper bag and hide them somewhere unusual, perhaps in a
box at the top of the closet, or in the basement.
DON'T use boxes and extra furniture to hide problems in your basement or attic.
Don't use paint to cover up perennial problems. In other words, fix the leak,
don't just paint over it.
DON'T leave your house in the dark. People want to buy light, bright homes. As
you walk through the house for the final check before you clear out for the
showing, be sure to turn on all the lights, including closet lights. While you
may pay a few bucks more on your electric bill, a dark house simply won't sell.
Making a Great First Impression
"First impressions mean everything!"
Be sure that when the buyer sees your house for the first time, they enjoy the
experience. From the curb appeal outside to the warm and inviting interior,
make your first impression a lasting impression.
Here are a few helpful tips:
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Mow the lawn and trim the shrubs. Be sure to keep it looking great all week
long. You just don't know when a potential buyer may drive by or look at your
home with their realtor.
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Be sure all of your outdoor items, barbecue, dining table, play structures, etc
are in good working order. It reflects on how well you take care of your home.
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Try to keep the front clear of multiple cars. This blocks the view of the house
and makes it seem uninviting. Park down the street if there are too many cars.
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If you have children, be sure to keep toys tucked away and the beds made. This
may be tough, but it makes a difference.
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Take down personal photos. This will help to neutralize your home so that
buyers can imagine themselves living there.
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Be sure in the winter that your house is warm and inviting and in the summer
that it is cool inside.
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Remove excess furniture. You may also want to consider hiring an interior
consultant to help with furniture placement. This helps make ordinary spaces
extraordinary and also makes your home feel more spacious.
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Take the time to do touch up painting throughout the house and paint entire
rooms if necessary.
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Have the carpets cleaned the week before you go on the market, not the day
before. Wet carpets have a damp smell and need ample time to dry.
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Vacuum as often as possible, at least every few days.
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Try to keep everything from the garage to the laundry room tidy. It may be
tough at times, but when your home is tidy and clean, buyers sense that you
have pride in your home and have taken care of it.
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Avoid cooking fragrant foods while on the market and especially before an open
house. It is a huge deterrent to buyers to come into a smelly house.
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Clean the windows inside and out. You can hire a window cleaning company to do
this. It lets in more light and makes the room feel clean and bright.
8 Easy Steps to Selling a Home Yourself
Step 1. Preparing your home to sell - make it look great
Presentation is everything! Home buyers are attracted to clean, spacious and
attractive houses. Your goal is to dazzle buyers. Brighten-up the house and
remove all clutter from counter tops, tables and rooms. Scrub-down your house
from top to bottom. Make it sparkle. Simple aesthetic improvements such as
trimming trees, planting flowers, fixing squeaking steps, broken tiles,
shampooing rugs and even re-painting a faded bedroom will greatly enhance the
appeal of your house. Also, make sure your house smells good. That's right,
clean out the cat box and light mildly scented candles.
Step 2. Pricing your home effectively
Do not over price your home. Over-pricing when you sell a home reduces buyer
interest, makes competing homes look like better values, and can lead to
mortgage rejections once the appraisal is in. Over-pricing when selling a home
is the single biggest reason why many "for sale by owner" home
sellers don't sell their homes successfully. Remember: the home selling market
dictates the price (not what you think it should be worth).
One of the best ways to correctly price your house when selling is to find out
how much other homes, similar to your own, recently sold for in your
neighborhood. Talk to home sellers, buyers and check out the real estate
listings on the internet or in your local newspaper.
You may try calculating the cost per square foot of your home compared to the
house selling prices in your area (divide list price by square footage of
livable space). If your house has more features or other desirable qualities,
you may want to set a slightly higher house selling price.
The easiest way to accurately price your home is to contact a local home
appraiser.
Finally, set your house selling price just under a whole number, such as
$169,900 rather than $170,000.
Step 3. Get a real estate lawyer
Even though it's an additional expense, it may be wise to hire a lawyer who will
protect your interests throughout the entire transaction. An experienced real
estate lawyer can help you evaluate complicated offers (those with a variety of
conditions), act as an escrow agent to hold the down payment, evaluate complex
mortgages and/or leases with options to buy, review contracts and handle your
home's closing process. They can also tell you what things, by law, you must
disclose to buyers prior to a sale and can also help you avoid inadvertently
discriminating against any potential buyers.
In some areas, title companies will handle all aspects of the transaction and
have in-house legal departments that can assist you with legal issues that may
arise.
Unless you're significantly experienced in the home selling process, having a
real estate lawyer at your side provides peace-of-mind. You know you've got
someone looking out for your interests, not just the buyers.
Step 4. Marketing your home
Exposure, exposure, exposure. That's how sellers sell their home fast.
80% of buyers use the internet to find a home
With those kinds of numbers, you want to make sure you are on the internet. If
you are selling yourself, you can list your home on website specifically
designed for "For Sale By Owner" sales. Be sure to list your open houses on
OpenHouseGuide.com for national exposure at a fraction of the price of
conventional newspaper.
Writing your sell ad
While many internet sites allow you a lengthy description when you list with
them, try to afford that in a newspaper ad, your advertising copy should be
thorough yet short, simple and to-the-point. Make sure to provide the critical
facts buyers are looking for such as the house's number of bathrooms, a
re-modeled kitchen, etc.
Most home buyers quickly scan ads, so it is important that your house stands
out. For example, you may want to add a theme-line such as "Priced below
market" or "Great schools."
Home Photos: Yes, a picture is worth a thousand words
If you are taking a photo of your home, be sure that the home's yard/driveway is
uncluttered. Remove bikes, garbage cans and parked cars. The same applies for
interior shots. People are looking to buy your house, not your possessions.
Think of furniture as props and the room a stage. Move things around if you
have to. Also, take lots of house photos. The more you shoot, the better the
odds are that you'll get a few really good shots. OpenHouseGuide.com allows you
to post up to 5 photos to advertise your open house. That's something you just
can't get in the newspaper.
Lawn signs
Lawn signs are one the most important marketing tools for home sellers. They
attract attention to your home. Professionally-produced signs telegraph to home
buyers a "quality" image of your house. Directional signs also help drive
buyers to your property, especially if you do not live on a busy street. You
can also promote your open house by purchasing OpenHouseGuide.com open house
riders. They will tell the buyers where to find out all of the open house
information and plan out their open house tour. Multiple photos and
comprehensive information will be sure to bring them to you!
Open houses
Open houses are a great way for people to view your home while it is on the
market. They sometimes feel more comfortable walking through an open house to
familiarize themselves with the area and houses before they employ the services
of a realtor. Also, if their realtor is holding a house open of their own, the
buyers can come through on their own. OpenHouseGuide.com provides you with an
effective solution for advertising your open house at a fraction of the cost of
newsprint. It also allows the relocation buyer to see pictures and map your
location before they are even in the area. It makes their process of moving to
a new area easier and faster.
Home Brochures/Information sheets
It is a good idea to create an information sheet (with a photo) about your home
to give potential buyers. Print these in full color if possible and give them
to people who visit your home. You may also want to have a supply of these on
the front yard sign post.
The MLS
The MLS or Multiple Listing Service can also help market your home, particularly
to real estate agents who may know of buyers seeking a property like yours. The
MLS is a directory used by real estate agents to announce to other agents that
they have a home for sale. In many selling markets, for sale by owner internet
sites can put your house on the MLS (for an additional fee). However, if a real
estate agent finds you a buyer after seeing your home on the MLS, you must
usually pay that agent a 2.5% to 3% commission (the law states that all
commissions are negotiable, however).
You are your home's best salesman
As every salesman knows, to be effective you have to really know your product.
And who knows your home better than you? Sell your neighborhood as well as your
house. Show enthusiasm, but don't get caught-up talking too much about how
"your daughter spent the best years of her life in this very room."
Step 5. Negotiating an offer on your home
When a home buyer makes an offer (this is often presented to you directly from
the buyer or through their lawyer/agent), you should consult with your
attorney.
Purchase price isn't everything. Carefully consider the purchase contract's
other terms and conditions. Too many contingencies can leave loopholes and
cause a deal to collapse. Especially avoid contingencies that favor the house's
buyer, such as linking the escrow closing date to the buyer's sale of their
current home. If the buyer insists on such terms, include a so-called kick-out
clause in the contract that will allow you to consider other offers if the
buyer isn't able to sell within a certain period of time. This is usually done
with a clause that allows you to put the current buyer on notice to remove
their sale of property contingency and allow another buyer to move into first
position.
Assess your buyer's financial qualifications
Is the buyer pre-approved? How much of a loan is the buyer seeking? Unless you
are in an active market, lenders tend to shy away from underwriting a loan in
which the purchase price is higher than the nearest comparable sale and the
buyer is putting less than 10% down. If this is the case, your buyer may not be
able to obtain financing.
Know the home selling market
How you judge an offer also can depend on market conditions. If the selling
market is slow, you may feel vulnerable, especially if circumstances are
pressing you to sell. Make sure any offer you accept does not keep you in
escrow longer than 30-45 days. In a hot market where multiple offers are
likely, be wary of countering more than one offer at a time (you could end up
in legal trouble if two buyers both accept your counter offer). Also be wary of
offers that promise more money but contain poor contract terms (long escrow,
multiple contingencies, etc.).
If you feel the home's offer is insufficient, make a counter offer. Rarely is a
first offer the buyer's absolute highest price they are willing to pay.
Negotiating is part of the home selling process. Again, your lawyer should
review the details of all offers.
Step 6. Home inspections
All standard real estate contracts are going to give the prospective home buyer
the right to inspect your property - so be prepared. Under a general inspection
contingency, you are not automatically obligated to make any and all repairs,
they are generally negotiable. However, if the buyer is not happy with the
amount of repairs you are willing to do, they can cancel the offer.
The inspections that a buyer generally performs are: a general home inspection,
a roof inspection, pool inspection, chimney inspection and a termite
inspection. The buyers have the option of inspecting additional items if they
deem it necessary.
If you are concerned about how your home will fare when inspected, you may want
to visit a local inspector. They can conduct an inspection for you before a
potential buyer has one done. This way, you can address the problems before a
buyer stumbles upon them. Keep in mind, you must also disclose any items you
repaired to a perspective buyer to satisfy your disclosure obligations.
Step 7. Buyer appraisals and other details
The mortgage lender will order an appraisal of your home to make sure they are
not paying more than the house is worth. They may also order a surveyor to make
sure that the property boundaries are properly laid out. They will also order a
title search to determine if there are any liens against your property. These
tasks are all the responsibility of the buyer and/or their attorney or title
company.
At this point too, the mortgage company will issue a commitment. Again, the
buyer (and their attorney/agent) must complete all conditions listed on the
mortgage commitment.
Prior to closing, you should notify your lender that you will be paying off your
mortgage. After a closing date has been agreed to, you should contact your
utility providers and advise them of your final billing date.
Step 8. Closing
A few days prior to the close of escrow, the home's buyer will do a "walk
through" of the property to make sure all agreed repairs are completed and that
the home is in the same condition as when the buyer made their offer. If
problems arise at this point, the closing can still take place with funds held
in escrow to remedy the problem.
Closings usually occur 30 - 45 days after you have signed the sales contract.
Depending on what state you reside in, you may close with an attorney, or with
a title company. At the closing, all monies will be collected, any existing
loans or liens will be paid, the deed will be transferred, and insurance will
be issued insuring a free and clear title.
Conclusion
Each state has slightly different laws and customs as they relate to the
transaction process.
Selling a home yourself can be time consuming, but the financial rewards can be
tremendous. If you are ready to do this on your own, you may want to first
consult an attorney. Now that you see all that is involved, you may also want
to consult with an experienced real estate agent in your area. Whichever you
choose, OpenHouseGuide.com is ready to help you promote your open houses!
