Approximately 5 million existing homes are sold each year. While each transaction is different every owner wants the same thing - the best possible deal with the least amount of hassle and frustration. Home selling has become more competitive and complex than it used to be with new seller disclosure statements, longer form agreements and new environmental concerns in the last decade. At H&M Estates, we want to exceed your expectations and provide as much information as possible on the home selling process. Please study through the following Seller's Guidebook and checklist when planning to sell your home. We will guide you through this process and come up with an Action Plan to achieve your desired results!
Selling a home can be a very involved process. By monitoring your progress with this checklist, you can eliminate many of the pitfalls, time delays and frustrations that can erupt at any time during the house-selling period. Bookmark this page so that you can return to it frequently and maintain control over the experience.
Be an informed seller. There is a lot of information on the Internet that can be very helpful as resources. Numerous guides are available on specific subjects. Gather as much information as possible to increase your effectiveness. o Decide whether it is to your advantage to sell your house with an Agent or on your own.
If your sale involves a move to a different city, see our tips on relocation.
Familiarize yourself on how to price your house. Pulling a price "out of the air" is almost never successful. If you would like comparable sales prices in your neighborhood, homevaluehunt.com can give you a report with up to 30 comparable sales, plus a neighborhood demographic profile, nearby home owners and more.
Know what you can and cannot change about your house. This allows you to concentrate on those items that will yield the highest rewards.
Spend time on the house preparation phase--it will probably be the most productive time you can spend!
For tax purposes, develop a record of all home improvements made to your house.
Decide whether or not to do a pre-listing house inspection.
Have a yard sale before you list. Sell, donate, or trash everything you don't need.
Decide whether you want to offer a Home Warranty with your house.
Get familiar with financing options. Be at least as knowledgeable as your buyers to compete on a level playing field.
Develop an effective advertising and marketing plan on your own or with your Agent.
Know how to best show your home. Consider staging your home with your agent or interior designer to effectively attract potential buyers.
Learn how to deal with offers.
Familiarize yourself with real estate contracts.
Check out our Home Buyer’s Guidebook before you purchase another home. You'll find many of helpful hints and tips from a Buyer's perspective.
Make moving plans early. Don't wait until the last minute!
Know what is involved at closing and settlement.
Smile and breathe a sigh of relief: It's over!
Selling a House With an Agent
Usually, the majority of home sellers take on the task of selling their home through an ally: a Real Estate Agent. From the perspective of these home sellers, they feel that it is better to entrust the sale of their biggest investment to a professional, rather than attempting to learn about selling a house by trial and error. Additionally, many people would prefer to use an Agent since there are many complexities found in modern Real Estate transactions which usually incorporate legal and financial attributes, and which takes them well beyond more simple transactions, such as the sale of an automobile.
Some of the other advantages of working with Agents home sellers will list include: access to the Multiple Listing Service (MLS) so that greater numbers of buyers will have access to the seller's property, the fact that the Agent absorbs all advertising and marketing costs, and the screening of potential buyers that will be done by Agents. In addition, the Agent handles the lion's share of the details of negotiation.
The decision of whether or not to use an Agent largely depends on how confident you feel about handling these affairs on your own. If you feel fully confident that you can handle all of the details, then you may well want to attempt selling your house on your own. If not, you most likely will want to use an Agent and leave the messy details up to them.
How do you choose an effective agent? What kinds of things should you know about an Agent to proxy whether they are capable of getting the job done? The following questions should be asked of any prospective Real Estate Agent in order to assess their capabilities and philosophies.
What to look for in an Agent
A sense of professionalism.
A full time Agent who is committed to the profession (and who will be committed to getting your house sold!)
A familiarity with the area in which your home is located.
A familiarity with the price range in which your house will be listed.
Evidence of advertising and marketing ability.
References from previous sellers.
Where to find an Ageny
Ask family, friends, and co-workers about Agents they have used —for selling a home—not buying—to get positive (and negative) input.
Check your local newspapers and homes magazines. An Agent with a number of advertisements most likely has a fairly extensive marketing budget and experience. Be certain, though, that the Agent does not have too many listings to service the sale of your home effectively.
Questions to ask a prospective Agent
Are you a full time Agent?
How long have you been in the Real Estate business?
Are you an MLS (Multiple Service Listing) Member?
How familiar are you with the area where our home is located?
How many homes did you sell in this area in the last year?
Can you supply 3 names and addresses of recent clients for whom you sold a home that we can contact for reference purposes?
How did you arrive at the suggested listing price for our home?
What is your specific marketing plan for out house?
How do you plan on keeping us informed of the progress of the sale of our house?
Why you CAN...and CAN'T change
When it’s time to sell, a lot of homeowners worry over things about their present house. If only we were in a different school district. If only the factory had not had that big layoff. If only. It is much better (and will put more net proceeds in your pocket) if you determine the things you can change (and do something about them) and those you can't change (and ignore them--there is nothing you can do).
CAN CHANGE
CAN'T CHANGE
Exterior condition
Location
Interior condition
Style
General appearance
Size
Always ready to be shown
Proximity to shopping and services
Advertising and marketing
Schools
Pricing "with the market" so your house sells quickly
Neighbors
The general Real Estate Market
Choose Remodeling Projects that Add Value to Your Home
There are a multitude of reasons to consider when remodeling your home, but as you plan your dream house, it’s important to keep the resale value of your home in mind. Of course, most remodeling projects are primarily targeted to improving your home for yourself and your family. It is very rare to have the complete cost of remodeling recovered when a home is sold. However, some changes are much more broader in popularity and therefore have greater significant resale value than others.
A customized photography darkroom or a built-in wine cellar may be improvements you adore but may be of little interest to prospective buyers who don’t share your passion or interest. On the other hand, a renovated kitchen or an additional bathroom are very appealing to a broad range of homebuyers and could greatly increase the value of your home.
Enlist Professionals in Remodeling Decisions
Some assistance from your Realtor can help you identify those areas of your home where improvement holds the greatest potential impact on its resale value. With his or her knowledge of real estate trends and the features of homes that have recently sold well, s/he can advise you as to what amendments to make if you want to improve your home’s sales appeal. Sometimes, those changes might not be in line with your vision. However, if you decide to add that wine cellar instead of the additional bathroom a realtor recommends, you will at least be able to do so fully informed and notified of any repercussion or effects it might have on your home’s resale value.
Also, before beginning any major remodeling, it is important to obtain a home inspection. By identifying structural problems like water damage or termite infestation before you build a new room on top of them, you can save thousands of dollars in duplicated work. Follow these tips to get a comprehensive inspection:
Do not opt for an inspector in fancy clothes—s/he should get dirty crawling around checking out every corner of your home.
Check that the inspection is thorough—a detailed inspection should take anywhere from two to four hours.
Follow the inspector around and ask questions. Make sure you understand all the inspector’s comments and recommendations. What’s critical? What’s something to be conscious of for the future?
It is also important to make an inquiry into your home insurance policy before having any work done. Check to make sure your home is "insured to value"—that any previous changes you have made to the home are also brought current on your insurance policy. Also, consider updating or adding coverage for worker injury, theft, fire, and weather-related wear before beginning a significant project.
Choose a Project with Good Resale Value
Surveys have revealed that the changes considered most valuable to the desirability of a home include the addition of an extra room, kitchen or bathroom remodeling, and the added space made usable through a back yard deck or patio floor.
Updating an older kitchen is one of the most valuable remodeling projects you can do. If you are planning to sell the home in the near future, you stand a good chance of recouping nearly all of your remodeling investment on this project (in some cases, you can even make a profit!). The kitchen is one of the busiest areas of the house, and experiences a lot of wear, so it shows its age earlier than many other rooms. Also, with recent lifestyle trends shifting toward the kitchen as the heart of the home (rather than simply the utilitarian space where food preparation takes place), remodeling a kitchen will give your home fresher appeal.
If you’re considering adding an extra room, add a family room. Even though your family may be accustomed to gathering in a dining room or den, most homebuyers look for a family room in which to spend daily time. And, because a family room won’t age like a kitchen remodel, adding it to your home could offer the highest payoff in resale value in the long term.
Bathroom additions and renovations are also valuable projects, especially if your home was built when a single bath for the entire family was the norm. More modern floor plans almost always include at least two full baths, so adding a bathroom to your older home can do a lot to bring it in line with what buyers expect. Like kitchens, bathrooms age quickly—they get a lot of use, and styles are frequently changing. Adding a new bathroom or renovating one that appears worn can increase a home’s sales price enough to cover much of the original investment within a year of the remodel.
When you consider projects like these, however, you should also keep in mind the values and characteristics of the other homes in your neighborhood. No matter how popular the remodeling you choose to do, you won’t be able to recover your costs if they price your home significantly higher than others in the neighborhood.
Look Into Remodeling Loans If Your Needs Outstrip Your Resources
When cash is not available, some homeowners turn to lenders for help with their projects. Home improvement loans are available to simplify the remodeling process, whether it is to make much needed repairs, to redesign a corner of the kitchen, or to renovate a home you are considering for purchase. Banks and mortgage centers offer a variety of options to the homeowner, as well, and it is certainly worth it to examine all your options before beginning your remodeling.
Setting the Value Pricing a House to Sell
In tandem with location and condition, the pricing of a house is a major aspect of the reasons why a house will--or will not--sell quickly. Although the pricing should not be dealt with lightly, some sellers have a tendency to place too great of an emphasis on the price and not enough on the condition, resulting with a house that is overpriced for its current condition and the overall market. Even if there is an unaware buyer that appears willing to pay the high price, when the buyer applies for a mortgage, the chances are good that the lender's appraisal will force the price back down to market value.
It's important to get it right the firt time
Care and time are needed when establishing the original listing price for several reasons:
If the house is overpriced, it won't sell. If it doesn't sell and sits on the market the listing quickly becomes stale.
If you overprice the house with the intention of reducing the price later just to "see what the market will bear", when the price of the house is lowered, it signals to buyers that it was (and still may be) overpriced.
If the house is under-priced, it most likely will sell quickly--to the detriment of your net proceeds.
Some factors that affect the price
Location: This is unavoidable. If your house is located in a desirable area that is in demand, the price you will be able to get will be higher than you can for the same house in a less desirable area.
Condition: A house that has been better maintained and shows it will always sell for more than one that has had deferred (neglected) maintenance and requires additional work.
Desirable amenities: If a house has amenities that are currently popular in the marketplace, it will yield a higher price.
Methods of setting the price
CMA (Comparable Market Analysis): A comparison of similar properties in the same general area that compares actual sold prices. A Real Estate Agent can generate a CMA, or in many cases you can do it on your own. Homevaluehunt.com gathers data on properties in the majority of U.S. states. Some of the information you'll see includes address, sale date, price and square footage for up to 30 comparable properties.
Appraisal: A estimated valuation is placed specifically on your house by a professional appraiser. An appraisal takes into account the location, condition and sale prices of comparable properties in the neighborhood.
Preparing to Sell Your House Quickly
What makes one house go on the market, have a number of showings in the first week and have a contract in place shortly thereafter, while an apparently similar house sits on the market for months? Of course, luck may have a little to do with it, but there is a good chance that the quick selling house (and its owner) was prepared to sell while the other house and owner was not.
5 Steps for Helping Your House Sell Quickly
Prepare yourself to sell your house. Do your best to see the house, no longer as your home, but as a product to be marketed. This involves a little work, especially if you have been in the home for a number of years and have many memories there, but it is essential if you want to maximize your potential.
Consider a professional whole house inspection. An inspection will most likely uncover any major defects before they can cause trouble with a potential buyer. It also coveys to buyers that you are a responsible seller.
Prepare the house. View your home as objectively as possible. Would you buy this home? Ask friends and neighbors for their honest opinions, asking them to be totally frank. Overlooking flaws could cost you money! Get them fixed before you place your house on the market.
Do what is necessary to make your house stand out from the competition. Make certain that your house is fresher, cleaner, and better maintained. Become familiarized with effective marketing and advertising techniques.
Preparing Your House Interior
Once you get the buyer into the house, it is very important to have their visit be as pleasant and memorable as possible—this means having the entire house ready. You want the prospective buyer to be as comfortable as possible, and to linger in the home. A "turn off" will send them running off quickly to the next house on their list!
Room by Room
Entry
Must be especially inviting for your guests (your potential buyers). Make certain it is well lit, clean and has nothing around either inside or outside. Repaint the front door if it even remotely needs it.
If you normally use a back or side entrance to your house, pay particular attention to the front entry. You rarely see it but this is where the buyers will enter!
Living Room or Guest Room
If possible, keep furniture at a bare minimum so that traffic flow is easier and the room’s size does not appear smaller than it actually is.
If bookshelves, curio cabinets, and the like are overflowing with books and knick-knacks, remove some of them.
Family Room or Den
If this is the room you live in the most, make it look inviting but not overly lived in.
Keep furniture at a minimum but make the room look like a comfortable place to spend time.
Kitchen
Clean the exterior of all appliances. Clean the oven interior.
Clean or replace the stove hood filter. This is often overlooked, usually dirty and greasy, and looked at by a lot of buyers.
Clean cabinet faces. Make them shine!
Remove all clutter and unnecessary items from countertops and clean all countertops and backsplashes thoroughly.
Clean vinyl or ceramic floor.
If you have ceramic tile elsewhere in the kitchen, pay particular attention to the grout--make sure that it's clean. If it is discolored, there are "grout whitening" products that are available.
Bedrooms
Remove all clutter. If you don't need it, store it or pitch it!
Arrange or remove furniture to maintain good traffic flow through rooms. Remember, there may be three or four people in each group that walk through your house.
Bathrooms
Make sure all bulbs are working and have the highest wattage available and safe for each fixture. Brighter is better!
Clean all ceramic tile. Check the grout for cleanliness and deterioration.
If faucets drip, fix them.
Thoroughly clean sinks and tubs. If rust spots are on the porcelain, attempt to remove them.
Remove any evidence of mildew from the shower and bathtub. Products are available that spray on and quickly kill the mildew.
Basements
If the basement is damp or musty, consider a dehumidifier.
Give prospective buyers room to move around. Clutter...well, you know the drill!
Garages
Remove all junk: broken tools, old car parts, toys from the 1960's, etc.
If floor has oil marks, clean it (cleaning solutions are available at most home improvement stores and work with a normal garden hose).
Miscellaneous
Replace the furnace filter.
Preparing Your House Repairs & Detail
Often, many home sellers tend to ignore certain repair or maintenance items in hopes that a potential buyer will either not notice, or if they do, telling them that they (the seller) will repair or replace the item. Most buyers cannot envision. They are not able to look at a room that needs paint and carpet and imagine it fresh and attractive. Telling them that something will be cleaned, or painted, or repaired may work with some, but the majority will not be able to envision the house after the changes have been made and will most likely scratch your house from their list.
General Interior Preparation
Painting: Painting gives you the best return for money spent when it comes to preparing a house. Which rooms should be painted? Any with dirty or marked walls or any rooms that are currently painted in dark colors. Keep it neutral—off-white or antique white is the best.
Carpeting: At the very minimal, all carpeting needs to be steam cleaned. Any worn, stained or foul smelling carpet should be replaced. You may be tempted to give a "carpet allowance" and that may work. Just remember, most buyers cannot imagine what the final product might look like.
Operation: If you are not having a whole house inspection done, check all faucets, toilets, and electrical items for correct operation.
Safety: Make sure that your house is safe. Not only can a wobbly railing stop a sale, it could also cause an injury to a potential buyer who is not familiar with your house (and is spending time looking instead of being careful).
Clutter: If an item is not necessary for your day-to-day life, box it up and store it or throw it out!
Fireplace: Have a professional fireplace or woodstove cleaning and inspection. The buyer will most likely request it anyhow. Getting it done in advance impresses the buyer and makes the home appear cleaner and fresher smelling.
Closets: Make sure all closets are neat, clean, and organized. See above item on clutter.
Doors and Windows: Check that are working smoothly. Replace any cracked window panes.
Cleaning: Although you may consider your house clean and tidy, a thorough cleaning--including dusting, washing, and waxing everything--will always make a house more attractive.
(For more specifics, see preparing the interior, room by room)
Yard Sales
Many home sellers have a "moving sale"--they hold a yard or garage sale after their home has been sold, right before they move. It is a much better idea to hold your sale before you even put your house on the market. If you have visited any of the other pages on this Site, you probably know how important it is to not have any clutter, excess furniture, or just plain junk anywhere in your house when it is on the market. A perfect opportunity to get this accomplished is to:
Have a yard sale as soon as you decide to list your house to sell any excess items. What doesn't sell....
Give away or donate to charity. What you can't give away...
Pitch!
Hints for a successful yard sale
Plan at least 2 weeks in advance so you can advertise the sale.
Organize all the items that you will be selling. Keep similar items together from the beginning.
Prepare signs to be put up the night before the sale. Locate areas where signs can effectively (and legally) be placed and seen.
Label prices on everything before the sale. It will save you a lot of time answering questions and buyers will feel more comfortable. But, be prepared to negotiate!
Have as many tables available as possible to place items for sale on.
Have $25 or $30 in small bills and coins for change.
The day of the sale get up early and prepare. Your first customers will probably be early!
A Pre-Listing Whole House Inspection
It is almost safe to assume that a buyer who contracts to buy your house will want a professional whole house inspection conducted. Most sale contracts are written with a "contingent upon an acceptable whole house inspection" clause. So, why not wait to have a buyer who wants and will pay for an inspection? While many sellers do wait for this situation, there are a few compelling reasons for you, the seller, to invest in a professional whole house inspection before listing your house.
If you were planning to do any cosmetic repairs or remodeling before listing your house, an inspection may reveal additional defects that your cosmetic repairs could have hidden. A pre-listing inspection gives you the opportunity to fix possible underlying problems right the first time. This saves time, trouble, and money of fixing an apparently small repair, only then to find out there is a larger problem, forcing you to destroy your work, repair the underlying problem, and then redo the cosmetic repair all over again.
You will have advance knowledge of defects and then have an opportunity to repair them before the first potential buyer ever sees your house. Experience has shown that buyers tend to look for more defects when they find one through their own home inspection.
A completed whole house inspection tells buyers that you are a conscientious seller. If a buyer is torn between two houses--your house and another that has not been pre-inspected--it is very possible they be more comfortable with yours.
It eliminates an "unknown" from your selling process. There are a multitude of "unknowns" when you sell a house--when will it sell? How much will it sell for? Will the buyer's financing be approved? By finding (and repairing) defects up front, you remove at least one uncertainty if not more from the selling process.
What to look for in a professional inspector and inspection
NOTE:Doing a pre-listing whole house inspection does not guarantee that a buyer will not opt to have another done at the time of the contract. Nor does it guarantee that the second inspector will not find items that the first did not discover (or think important enough to note). What it does guarantee, though, is proof that you did spend the time (and the money) to make sure that the house is without defect. In addition, if you find yourself in a contract squabble over repairs at contract time, you will have evidence to substantiate your position.
Home Warranties
Home Warranty packages are available through most Real Estate Agents. They differ somewhat in coverage (and therefore in price), but in general they will warrant the major systems of the house--heating and air conditioning, many plumbing and electrical components, and major appliances--for one year. Although there are some warranty programs that will take effect when you list the house (meaning that you, as seller, may have some coverage before the house is sold), all will give the buyer at least one year's coverage.
Some of the items covered may include:
Central Heating and A/C
Plumbing
Electrical
Water Heater
Refrigerator
Washer and Dryer
Range and Oven
Dishwasher
Microwave
Garbage Disposal
Garage Door Opener
Trash Compactor
Doorbells
Water Softener
You should offer a warranty up front if it may help the marketability of your house. If a buyer (especially a first time buyer) is in the process of comparing two homes, one with a warranty and one without, if all else is equal, it could be an added selling incentive for your house. It is much like doing a pre-listing whole house inspection. When you can eliminate doubts from a buyer's mind, it will most definitely work to your advantage.
A warranty also may help to reduce some post-closing hassles. If the heating system goes out the week after closing, a warranty could be a safety net for the buyer (and less potential aggravation for you). Most sellers are more comfortable when they know that, once the home goes to settlement, the chances are reduced for having any added responsibility to their former house.
Advertising & Marketing
Whether you are selling your home on your own or using the services of an Agent, you will want to be involved in the advertising and marketing process. Self-sellers need to be especially well versed on this subject, since they will be competing with hundreds (or thousands) of ads and the marketing efforts of local Agents. If you are using an Agent, you will need to communicate to them what you feel to be the most important selling features of your house (you know them best) and you will want to monitor and relay comments about the Agent's marketing activity. The following are some examples of advertising and marketing.
Newspaper & magazine ads
Look through the classified section of any newspaper or a home sales magazine and you will see hundreds of ads...some very effective, some less so, and some that are of no use at all. When writing a classified ad it is important to not only grab the reader's interest with a strong headline, but to maintain that interest with colorful and descriptive copy.
Classified Ads: Effective and not effective
YOUR SEARCH IS OVER!
This beautiful home awaits you. 2generous sized bedrooms, including an exceptional master suite. 1.5 baths, both freshly redone. Expansive eat-in kitchen overlooking a private, park-like yard. Many additional amenities make this home a must see. Priced at only $115,000.
Call 309-9997
House for Sale
2 BR. 1.5B. Nice yard. LBFB, HP/AC, Deck. Large kitchen. Good location. Asking $115,000. Call 309-9997
Never use the words "asking" or "negotiable" with your selling price. Look at it through the eyes of a buyer: If you are only "asking" the price or are "negotiable" on it, why haven't you priced it right in the first place? Don't give up negotiating leverage before you need to!
Online
The arrival of the Internet has revolutionized real estate marketing methods. Also, it has become much easier for those who wish to sell their home to do it on their own. Several studies have shown that more and more home buyers are utilizing the Internet as their primary source when considering buying a house. With a few simple steps, you could be showcasing your home to millions of potential buyers.
Fact Sheets
A Fact Sheet that’s done well can be one of the strongest tools available to market your home. Every house on the market should have an effective Fact Sheet available. If you do not have a professionally done Fact Sheet in the house, you are at a disadvantage competitively speaking.
Showtime!
Your home has been checked, inspected, and cleaned from every corner. You have priced it at a price that you feel is fair. The marketing and advertising is in full throttle. Now it is time to put all of the preparation into action: showings! All of the work that you have done up to this point will only show when a buyer walks into your house for the first time.
Showing Your House to Maximum Advantage
Designate to all family members assigned jobs in advance so things can be quickly and easily accomplished should a short notice showing be scheduled. Everyone should know and understand their duties and fulfill them, so that you don't end up running and bumping into one another trying to get everything done hurriedly.
Open all window coverings. All drapes, curtains and blinds should be positioned to allow maximum light to enter every room. Buyers generally prefer a house to be "light and bright," so accommodate them! Turn on as many lights as possible.
Be sure the house smells good. Baking cookies, often recommended, may be overdoing it, but pet odors, smoke, or greasy cooking odors definitely will not do! Air out the house just before the scheduled showing, but close the windows (unless it is a perfect day) before they arrive
Six very important words: no clutter, no clutter, no clutter!
Make sure that everything is spotless. Pay greater attention to the bathrooms and the kitchen. In the bathrooms, towels should be fresh and clean, sinks and baths scrubbed, and the floor freshly cleaned. In the kitchen, make sure all dishes are put away and countertops and sinks cleaned.
Check the thermostat to make sure that the house is at a comfortable temperature.
Remove pets from the house, or at least, keep them outside. Pets under foot will quickly put a damper on an otherwise positive showing.
Make sure Fact Sheets are available and easily accessible. (The dining room table is an ideal place for them).
If you are using an Agent, leave! If this is not possible, make yourself as inconspicuous as possible. If it is comfortable outside, go there until the buyers leave. If you are selling on your own, of course, you don't have this luxury. If this is the case, be as helpful as you can but don't crowd the buyers.
Offers
All decisions have been established. Preparations have been made to the house to showcase. Advertising and marketing has begun. The listing has been entered into the MLS and the showings are in full swing. It is not time to progress onto the next stage: an offer.
As opposed to many businesses, an offer in Real Estate is a bit different. For example, if a buyer asks a shop owner "could I buy this for $15?" and the shop owner accepts this offer, the buyer can still change his/her mind and walk away. This is not plausible when you are dealing in Real Estate. If a buyer makes an offer, it is in the form of a legal contract. If you, as the seller, accept the offer, the house is sold. Should you counter-offer, negotiations may continue to proceed. It is important to understand that all of the offer and counter-offer activity that you will engage in is framed legally.
For this reason, this is why it is so pertinent that a seller never gets entrenched in oral offers and negotiation. If you have a house listed at $185,000 and the buyer asks "would you sell the house for $175,000?" almost any response you make--short of "put it in writing"--can lead to problems. If you verbally accept the offer, not only does the buyer have no obligation to actually buy the house, many will say to themselves, "gee, that was easy....I wonder if $160,000 would work?" This is why an Agent will never deal in verbal offers. If you are selling on your own, this is very good advice to abide by!
Some important points regarding offers
If you have the intention to accept an offer (or make a counter-offer), do it as soon as possible. At any time prior to your acceptance or counter-offer, a buyer can withdraw their offer.
EXAMPLE: Seller Smith receives an offer from Buyer Jones. The acceptance date on the contract is the next day at 4:00 PM. Seller Jones knows that he is going to counter-offer at a price just a bit over Buyer Jone's offer. At noon the next day, Buyer Jones, in a cold sweat, withdraws the offer. Seller Smith is out of luck.
Any amendments made to the contract require the written approval of all parties involved for the contract to be enforceable. Even the most seemingly minor of changes may open the door for either the seller or buyer to change their mind.
EXAMPLE: Seller Smith receives an offer on his house. Further, He accepts all of the conditions of the offer (selling price, financing agreements, etc.) except for one. He changes the occupancy date from July 30th at 12:00 noon to July 30th at 6:00 PM, to allot himself more time to move. If the buyers agree (in writing), there is no problem and the contract is valid. If the buyers change their mind about buying the house, however, the contract is not enforceable. In this scenario, there has been a change (the occupancy time) that has been approved by only one party to the contract.
What about low offers
Regardless of how well the preparations you have made to your home are and how certain you are that it is priced at fair market value, there always exists the possibility of receiving a low offer. It could simply be a blindly made offer or it could be due to a limit in the buyer's mortgage qualification ability. Yet, no matter what the case is, the most important thing to remember is to not take it personally. Many home negotiations, if they had just been allowed to naturally run their course, very well may have come together acceptably for all concerned if the negotiations hadn't become a “grudge match". Yes, it is your home, and yes, you have put a great deal of love and effort into it, but regarding a low offer as a personal attack does nothing for you. Reject the offer or counter-offer it and move on.
If you do get a low offer, it is far more important to try to get as much information as you can in regards to the offer. Why was it at the price that it was? What was the motivation behind the offer? (Be aware, though, that if the offer has come from a Buyer's Agent, the information you receive will only be as much as the Buyer's Agent wants you to know. They owe their loyalty to the buyer and cannot disclose any information that may put their client at a disadvantage.) There still may be information that will be revealed to you, which will help you as you structure a counter-offer.
Sales Contracts
Familiarizing yourself with a contract’s components before having one presented to you places you in a better position when it comes time to negotiate one.
What are the Components of a contract?
While there will be some variance based on your residence’s location, most Real Estate contracts contain most or all of the following items:
The Sales Contract: What It Includes
What: A legal description of the property as well as the street address.
How much: The selling price.
Mortgage contingency: Subject to obtaining a mortgage (if applicable) and the specifics of the mortgage--amount, rate and term. Application to be made in X number of days.
Deposit: How much money accompanies the contract and who will hold it.
Closing: When and where.
Inclusions and exclusions: What is and is not included in the sale of the property.
Home inspection: Contingency for and to be done in X number of days.
Warranties: Any included with the house and description of the warranty.
Condominium: If the property is a condo, other provisions will apply.
Well and Septic: If applicable, they must be tested (and pass).
Termite and Pest inspection: Who will pay and if there is infestation or damage, who will conduct the repair.
Possession Date: When the buyers take possession of the house--before, at or after closing.
Acceptance: How long the sellers have to respond to the offer with either acceptance or a counter-offer.
Arbitration: Any provisions for arbitration of disputes.
Insurance: Whose insurance covers the property up until the closing date.
Property Disclosures: Notices of any property disclosures concerning the house.
The exact wording of the sales contract varies from area to area (and sometimes even within localities), but by trying to look for at least the items listed above, you will find yourself much better off when a contract is presented to you. Therefore, familiarize yourself with the components of a contract.
Planning for Your Move
Even if you have moved several times, it never seems to get any easier. The culmination of all the emotion associated with selling a home results in another huge emotional challenge: Moving! Here are some hints that we hope you will find helpful as you prepare for moving day.
To avoid surprises, get coordinated in advance: Use this checklist to monitor your progress.
Make agreements with buyers (ideally at the time of the contract, but definitely long before the closing date) regarding possession of the home and moving date. Having sellers and buyers meet on the front walk--each with a house full of furniture--is not a happy situation.
Start planning early. Once you are reasonably confident that you will be proceeding with the sale, start weeding out your current possessions. Toss (or give away, or sell at a yard sale) things that you don't want to move. This goes a long way toward taking the clutter out of your life, too!
Compare moving plans. Will you be doing the entire move yourself? Will you want a professional mover to handle the entire process? Don't hold off until the last minute--or you may be doing the whole move on your own! Compare rates and services as well as availability.
Make a list of important items you will need to buy for your new house. Examples: draperies, blinds, shower curtains, etc. Having these things with you on the day you move in prevents unexpected surprises.
Pack early. Anything that you are sure you will not be using before moving day should get boxed.
Identify a "staging area" where any items that are ready to be moved are placed. This saves a lot of the aggravation associated with having boxes scattered throughout your present living quarters and gives you a place to look should you need an item that is already packed.
Mark every box and carton. Again, it makes it much easier if you need an item before you move, and makes it much simpler after you move. Unpacking will probably be somewhat of a gradual process--this way you know where the most necessary items are located.
Be an informed seller. There is a lot of information on the Internet that can be very helpful as resources. Numerous guides are available on specific subjects. Gather as much information as possible to increase your effectiveness. o Decide whether it is to your advantage to sell your house with an Agent or on your own.
