Home selling--including the actual moving process and getting your home ready for the market--doesn't have to be an intimidating process. Following are: - 5 Tips to Selling Your Home Fast
- Creating an Action Plan for an Easy Move
- Getting Your Home Ready for the Market
- Real Estate Glossary
5 Tips to Selling Your Home Fast There is no question that houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following 5 tips to place your home on the fast track to sale. 1. Price it Right The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects. Deciding the value of a home isn't an exact science. Yet, there is data to help you determine a fair asking price that is right on target. Consult with a real estate agent who can help you determine true market value based on a comparative market analysis, which will include recent home sale transactions as well as homes currently on the market. Your agent is familiar with local property, and will be able to give you an extremely accurate analysis as to where your home should be priced. From her analysis, you will want to price your home at, or slightly below the current market value to give it a competitive edge in this market. (If you have an appraisal on your home, be aware that they have a very short shelf life - appraisals need to be very recent and up-to-date so pulling out your two-year old appraisal is not going to be any accurate or reliable way to determine your home's current market value.) How do you know if your home is priced too high? If there is no traffic- your home is priced too high. If you've had ten legitimate showings with agents who have clients in tow-and you've gotten no offers- your home is priced too high. As a general rule of thumb, if your house goes two weeks with no showings it's time to reduce the price. When you price your home below the competition, buyers will perceive the value, and you will generate traffic and interest, and in many instances, you will receive multiple offers and often get your asking price or above.
2. Make your Home Irresistible Unless they're specifically looking for a fixer-upper, most home buyers are more likely to make a bid on a home they can enjoy immediately. Therefore, you need to create an environment the buyer can't resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself. Evaluate the home from a buyer's point of view. Your real estate professional will be able to offer an objective view and will also know what buyers are asking or responding positively to in your area. Real estate is extremely local in nature, and what is important in some areas is of absolutely no consequence in others. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home's look and give it fresh feel such as installing newer carpet and light fixtures and painting the walls a neutral shade.
3. Create Traffic If you want buyers to see your home, you must first find the buyers. Your real estate professional is trained to market your home to the largest audience possible, both online and offline. Let your agent do their job to their fullest by cooperating with marketing tools such as Broker's Opens, Open Houses, and Signage, but be particularly conscious of making your home available for showings. Flexibility is extremely important - remember- there are many homes on the market-if an agent calls and does not have easy access to your home, they're on to the next one, and may or may not call to re-schedule your showing. Keep your home "Show Ready" at all times. 4. Offer Incentives Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance if you don't have the time or desire to replace carpeting or paint prior to listing your home. You can offer credits towards the closing costs, pay for a professional Home Inspection, buy your buyers a Home Warranty, etc. Some sellers get quite creative with their incentives, and in this market it certainly won't hurt. 5. Go with a Real Estate Professional Selling a home is more than just putting a sign in your yard and having a listing on the Internet. In a competitive market, you don't want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer invaluable advice on pricing and staging your home based on their vast experience. Plus, there's the added value of the peer-to-peer networking among real estate agents, which can bring buyers and sellers together - sometimes even before the property goes on the market. Remember the 3 most important things to consider in selling a property quickly - PRICE, LOCATION, CONDITION. Be objective when looking at your property, and once you list your home, try to think of it as a commodity. Don't let your emotions de-rail your goals. If an offer comes in that "insults" you, let your agent work it to its fullest - you'd be surprised how much higher some offers will go from their original starting point. Once a buyer actually makes an offer in writing they become emotionally engaged in the process-let them be the emotional ones in the negotiations- they obviously want your house. Don't turn your back on any offer until you've given your agent a chance to work for you!
Create an Action Plan for an Easy Move The key to an easy move is careful planning. There are many things that need to be planned prior to the actual day of the move. Take the time to write down and organize the decisions and activities that will need to be accomplished prior to the move such as securing a mover and changing your address. To get you started, consider using the checklist below as your guide to a smooth move. Eight Weeks Prior to Move- Get estimates from at least three professional movers. If you are going to do it yourself, get estimates from rental truck companies.
- Decide which furniture and household goods you'll be taking, and which need to be disposed of or replaced. Whatever needs to be disposed of get rid of it now.
- If you will be moving to a new city, contact their Chamber of Commerce for a new residence packet. Your real estate agent can help you with this. This info packet will be a great resource for you.
Six Weeks Prior to Move- Inventory your possessions besides furniture - kitchenware, decorative items, electronics, apparel and so on.
- Complete a change of address form with the post office. This can be easily done online at http://www.moversguide.com/ for a minimal cost. Make sure you notify organizations, credit card companies, and publications to which you subscribe of your new address, too.
- Obtain copies of all medical, dental, legal, accounting and veterinarian records.
- If children are changing schools, arrange for transfer of educational records.
- Itemize moving-related costs with the mover including packing, loading, special charges and insurance.
Four Weeks Prior to Move- Make arrangements for packing your belongings. If you will be using professionals, schedule with the company for packing to take place a day or two before the move. If you will handle packing on your own, purchase adequate boxes, packing materials and tape.
- Arrange for short-term or long-term storage if needed.
- Make travel arrangements for pets including necessary medical records, immunizations, medication, etc.
Three Weeks Prior to Move- Begin packing items you won't need immediately or that will go into storage
- Contact utilities on both ends of the move to order termination or turn-on for occupancy date. Plan on continuing service on your current home through the day of closing, or coordinate with our real estate agent.
- Confirm travel arrangements for family and pets
Two Weeks Prior to Move- Terminate newspaper and other delivery services
- If necessary, arrange and confirm new bank accounts and local services in your new neighborhood
One Week Prior to Move- Gather important papers, records, and valuables for protected shipment to new home or safe deposit box
- Obtain any prescription medications needed for the next few weeks
Day Before or Actual Moving Day- Defrost refrigerator/freezer and give away all perishable food
- Keep a box marked "Last Box Packed/First Box Unpacked" for tools, flashlights, first aid kit and so on. On moving day, this should be the last box placed on the truck.
- Pack items to carry with you such as valuables, financial records, personal papers etc.
- Give the movers a telephone number and address to reach you
To be sure, a detailed action plan can get you well-prepared and prevent any stress and last-minute surprises on your road to your new home.
Getting Your Home Ready for the Market As a seller, your No. 1 goal is to sell your home as quickly as possible at or near the listing price. In today's market there is much more competition for buyers, and first impressions are lasting impressions. Many of today's prospective homebuyers have busy lifestyles and are looking for properties that don't require a lot of work. Therefore a home in move-in condition is much more attractive. Start by inspecting your home both inside and out, make a list of all practical and aesthetic repairs, then check your home against the following suggestions to be sure you've covered everything. 1. Exterior- 1.1. Is the yard well groomed? Trees and bushes should be trimmed, lawn mowed, edged, and free of weeds. 1.2 Does the exterior of the house need painting? Are there any holes or cracks? A fresh coat of paint on the front door and replacement of old hardware, and a shiny new kickplate is recommended-it's the buyer's first impression of your home- make it a good one! 1.3 Decks and patios should be clean and un-cluttered 1.4 Walkways in good repair and clean-no loose bricks or stones 1.5 Does the roof sag, or is it wavy? Does it leak? Are there any tiles or shingles missing? 1.6 Is the chimney in good repair, does it need re-pointing? Is the flashing in place? 2. Walls-Ceilings-Carpeting 2.1 Do your walls need painting? It's always a good idea to apply a fresh coat of paint to all walls, doors, and shutters. Repair any cracks or holes, remove all wallpaper if possible and paint with neutral colors that are modern and current. 2.2 Check ceilings for stains, cracks or peeling. Re-paint them unless they look fresh 2.3 Carpets that are in good shape should all be cleaned to remove any pet, smoking, or cooking odors. Stretch any carpets that need it. 3. Kitchen- 3.1 Appliances should be sparkling clean and in working order 3.2 Cabinets should be clean and polished 3.3 Countertops should be uncluttered and scrubbed clean-put all appliances out-of-sight while your home is being shown. 3.4 Sink should be clean- never leave dishes in sink while home is on the market, remove any stains if possible, re-caulk with fresh caulk 3.5 All kitchen tile grout should be clean - a professional can do this 4. Bathrooms- 4.1 Make sure the bathrooms are spotless-shower doors shiny, old caulk replaced, toilets sparkling- (consider replacing the seat/lid), sinks draining freely and spotless, faucets shiny and not leaking 4.2 Vanities and mirrors should be clean, repair any chipped paint and/or polish the cabinets, mirrors that are defective should be replaced 4.3 Floors should be very clean, and vacuumed daily, clean all grout 5. Living Areas 5.1 Clean all carpets and buff and polish wood floors. Hardwood floors are a very strong selling point-make sure yours look good. 5.1 Are all drapes clean? Are all shutters and shades clean and working properly? 5.2 Are any fireplaces clean, are they in working order, do the chimneys need cleaning? Do the fireplace screens look good? 5.3 Do all of the windows open freely, are there any ripped, bent or missing screens, any broken seals? Are the window sills clean, do the locks work? Do any of the doors stick or sag? Do the doors seal tightly? 6. Basement/Attic 6.1 Is the basement/attic cleaned of all clutter and organized? It is a good idea to throw out anything you're not taking with you before you put the house on the market and get these areas as clean and clear of your "stuff" as possible. Basements /Attics should be well-lit, replace any burned-out bulbs. 6.2 Make sure the stairs are clean and in good repair, and make sure there is NOTHING on the stairs. They should be well-lit as well. 6.3 Check for any signs of insects or rodents and have this addressed if necessary 7. Garage 7.1 Floor of the garage should be clean and swept, if there are oil stains on the concrete clean them as well as possible. 7.2 The garage should be well-lit 7.3 Get rid of all clutter, and organize whatever you must keep - the less, the better. In addition to the above, many sellers find it extremely helpful to hire a certified home inspector to thoroughly and impartially evaluate the property. A standard report will review the condition of your home's heating system, central air conditioning, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure. You will eliminate a lot of surprises by doing this, and you will be prepared and informed about any issues before they're brought up by the buyer's inspector. Consult with your real estate agent to help you prioritize the list of repairs. Your agent will be able to help you decide which items need to be addressed, and which may not depending on your goals and budget. Local market conditions will dictate how extensive your repairs/updates need to be. BE CAREFUL ABOUT MAJOR REPAIRS/REMODELING - SELLERS RARELY RECOUP MONEY ON MAJOR REMODELING PROJECTS. However, a home in good condition demonstrates pride of ownership. Taking the time to make small repairs can go a long way in making sure your home is shown to potential buyers in its best possible light.
Real Estate Glossary of Commonly Used Terms Amortization Repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example 15 or 30 years) Annual Percentage Rate (APR) Calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan Appraisal A document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property ARM Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates, when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap Certificate of Title A document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner; before the title is transferred at closing, it should be clear and free of all liens or other claims. Closing Also known as settlement, this is the time at which the property is formally sold and transferred from the seller to the buyer; it is at this time that the borrower takes on the loan obligation, pays all closing costs, and receives title from the seller Closing Costs Customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing; these costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application Credit History History of an individual's debt payment; lenders use this information to gauge a potential borrower's ability to repay a loan Debt-to-income Ratio A comparison of gross income to housing and non-housing expenses. With the FHA, the monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income Deed The document that transfers ownership of a property Discount Point Normally paid at closing and generally calculated to be equivalent to 15 of the total loan amount, discount points are paid to reduce the interest rate on a loan Down Payment The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan Earnest Money Money put down by a potential buyer to show that he or she is serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal Equity A owner's financial interest in a property; calculated by subtracting the amount still owed on the mortgage loan from the fair market value of the property Escrow Account A trust account created by a third party to hold money. A mortgage escrow account is an account set up to pay taxes and insurance. Monthly mortgage payments may include 1/12 of annual property taxes and insurance. When the bills come due, lenders use the money in the escrow account to pay them Fair Market Value The hypothetical price that a willing buyer and seller agree upon when they are acting freely, carefully, and with complete knowledge of the situation Fannie Mae Federal National Mortgage Association (FNMA); a federally chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential homebuyers Fixed Rate Mortgage A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change Flood Insurance Insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the lender will require flood insurance before approving a loan Freddie Mac Federal Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation that purchases residential mortgages, securitizes them, and sells them to investors; this provides lenders with funds for new homebuyers Ginnie Mae Government National Mortgage Association (GNMA); a government-owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment; as with Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders Home Inspection An examination of the structure and mechanical systems to determine a home's safety; makes the potential homebuyer aware of any repairs that may be needed Homeowner's Insurance An insurance policy that combines protection against damage to a dwelling and its contents with protection against claims of negligence or inappropriate action that results in someone's injury or property damage HUD1 Statement Also known as the settlement sheet, it itemizes all closing costs; must be given to the borrower at or before closing Lien A legal claim against property that must be satisfied when the property is sold Loan to Value (LTV) ratio A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment Lock In Since interest rates can change frequently, many lenders offer an interest rate lock in that guarantees a specific interest rate if the loan is closed within a specific time Mortgage A lien on the property that secures the promise to repay a loan Mortgage Insurance A policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price Origination Fee The charge for originating a loan; is usually calculated in the form of points and paid at closing PMI Private mortgage insurance; privately-owned companies that offer standard and special affordable mortgage insurance programs for qualified borrowers with down payments of less than 20% of a purchase price Pre-approve Lender commits to lend to a potential borrower; commitment remains as long as the borrower still meets the qualification requirements at the time of purchase Pre-qualify A lender informally determines the maximum amount an individual is eligible to borrow Prepayment Payment of the mortgage loan before the scheduled due date; may be subject to a prepayment penalty Principal The amount borrowed from a lender; doesn't include interest or additional fees Radon A radioactive gas found in some homes that, if occurring in strong enough concentration, can cause health problems Title Insurance Insurance that protects the lender against any claims that arise from arguments about ownership of the property; also available for homeowners Title Search A check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property Truth in Lending A federal law obligating a lender to give full written disclosure of all fees, terms, and conditions associated with the loan for the initial period and then adjusts to another rate that lasts for the term of the loan Underwriting The process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower's credit history and a judgment of the property value |
