Usually the biggest asset a family has is the home they own and live it. When the time comes to sell your home, it is one of the most important financial decisions you will make.
Thanks to the internet and a booming real estate market in many areas, it’s not hard to get an idea of what the asking price is for properties that compare to your house. You may find it a bit more difficult to get a true answer on your own of what houses have actually sold for. Also, comparing your house to others for value can sometimes be – well – tied up with your feelings about your house and what you have done with it. You may be really proud of that great family room you added on 15 years ago. A buyer may wonder why you did all that work and didn’t upgrade the kitchen or add a bath! You enclosed the garage and got a huge living room or an extra bedroom. The typical buyer for your neighborhood may want not only the extra room, but a two car garage as well!
Along with all this information at your fingertips, it is wise to consult a realtor for a market analysis. This is not an appraisal; it is a comparison of your home with similar homes on the market and those that have recently sold. A knowledgeable realtor will not only give you the basic details, they will offer solid observations on differences and similarities between your house and others which affect the price point. You may want to consult with several realtors, to view the analysis they make and to evaluate their marketing plan. Even at discount commissions, the service a realtor provides in marketing your home is a valuable one, and you should expect professional knowledge and behavior for your money. It costs nothing to ask a realtor for a market analysis.
You may decide to sell the home on your own. Sometimes this is a no brainer, if the sale is simple and straightforward. Be prepared to do some work if you intend to show the house yourself, and have an idea how you will determine if a written offer is from a truly qualified buyer. Some homeowners partner with mortgage brokers for the purpose of verifying a buyer’s pre approval.
Whether you sell your home with a realtor or on your own, you are obligated to disclose any knowledge you have about the condition of the property. Some states require written disclosures. These often are a means of protecting you, as they are documentation that you have told the buyer about the condition of the property, and no one can come back and say that you did not tell them.
Be specific about what goes with the house. Appliances, light fixtures, window treatments are usually standard. If you intend to take the washing machine and dryer, the window air conditioners, the chandelier, be sure that is understood by the buyer, and that it is in writing in the realtor listing and in your contract with the buyer.
Many people wonder what they should do to make their home ready. If you have not updated the kitchen and baths, don’t worry. Improvements like that do increase the value of your home over the long term, especially when the kitchen is expanded or the number of baths increases. But if you have lived in the home for a while, chances are that you have built a good chunk of equity and the buyer will have their own ideas about renovation. Just don’t price your home on the same level as one that is completely renovated!
If you do just one thing – clean it up and get your stuff packed! Buyers want to see themselves in the space. They cannot envision themselves in the house when all your stuff is there. Also, if you have a lot of clutter, they wonder what possible defects are hiding behind all that. Ask yourself – do I really want to move this with me to my new space? If the answer is no, get rid of it. Have a garage sale, sell things on eBay, or give it away. If it is really junk, toss it!
If you show the house with unmade beds, laundry all over the place, dishes in the sink, etc, potential buyers don’t equate the sloppiness with “that lived in look” – they suspect that there is neglect that they cannot see. Make any obvious repairs that can be made, and make sure that your heating and cooling systems have been properly maintained.
In future entries, we will discuss ways to work with a full service or discount Realtor, the contract and seller’s obligations, and the closing