For thousands of home sellers who were unable to sell their homes in 1993, this is the ideal time to make changes to get your home sold for more in 1994.
For example, a few weeks ago, I was in New York City. At a party, a friendly lady who recently moved to New Jersey told me, “I followed your techniques and sold my home in Southern California while two other houses on the same block remained unsold.”
What did she do that her neighbors apparently didn’t? Here are the keys to getting your home sold for top dollar in today’s market:
– The first step to a successful home sale is to get your home into its best possible physical condition. Most prospective home buyers want to buy a home which is in “move-in condition” where all they must do is turn the key in the door. If your home needs fix up work, expect to discount the price substantially and limit your prospective buyers to the bargain hunters (like me!).
Painting, carpeting, landscaping, cleaning and repairing are the types of work which produce the most profitable results to make a home saleable. But avoid major work, such as remodeling the kitchen and bathrooms, because the cost usually doesn’t increase the home’s market value. Perhaps new appliances are all your kitchen needs to bring it up-to-date. The goal should be to make the home sparkle so the buyer doesn’t have any major work to do before moving in.
– Most home buyers today insist on a professional inspection of the home, in addition to customary inspections, such as for termites, radon, and energy efficiency. Local real estate agents can tell you which inspections are routine in your community.
If these inspections indicate the need for corrective work, it is best to have the work done before putting your home up for sale. For example, last year I had professional inspections on a home I planned to sell. The inspections revealed the need for $145 of dry rot repairs and $2,800 of foundation repairs. This work took about two weeks and was completed before listing the house for sale, so clean inspection reports could be shown to the prospective buyers.
– Even if you are thinking of selling your home alone without professional help, interview at least three successful agents who sell homes in your neighborhood.
The reason why most home sellers list their homes for sale with a realty agent is they can then put the home in the local Multiple Listing Service. Do-it-yourself home sellers only have one home to show prospective buyers, whereas the MLS has hundreds of homes available for agents to show their buyers.
Questions to ask each agent you interview include: Do you have any suggestions to improve the marketability of my home? What is your marketing plan for my home? How often will you contact me to keep me informed of buyers who have inspected my home and their comments? How long have you been selling real estate? Do you have a list of nearby homes you have sold within the last six months?
How many homes have you sold in the last year? Do you sell homes full time or do you have another job (avoid part-time agents)? What type of financing do you recommend to sell my home? Have you ever sold a home on a lease-option? Is there anything else I should know about you and your firm? and How long should it take you to sell my home?
Be cautious of any agent who says it will take longer than 90 days to sell your home because that may indicate the agent’s lack of confidence in his/her sales abilities.
Also, be sure to get the names and phone numbers of each agent’s three most recent sellers so you can phone them to ask, “Were you in any way unhappy with your agent and would you list your home for sale again with the same agent?”
– As part of the agent interview process, each agent should give you a written comparative market analysis. This form shows recent sales prices of comparable nearby homes like yours. It also includes asking prices of similar neighborhood homes (your competition). Each agent should also estimate your home’s probable sales price, based on this information.
Be wary of any agent who suggests an inflated price without justification. Such agents obtain listings by overpricing the house and then, within a few weeks, request price reductions.
A far better method is to set the asking price of your home realistically at market value if you want a quick sale. If you price your home too high, wary buyers and their realty agents won’t waste time looking at your residence.
– Most experienced real estate agents will tell you how difficult it is to sell a home which cannot easily be shown. If your house is occupied by tenants, get them out before listing the house for sale.
Tenants make home sales extremely difficult. A vacant house is better than trying to sell a residence occupied by uncooperative tenants.
– When you receive a purchase offer, it will probably contain one or more contingency clauses, such as for the buyer obtaining a mortgage. That is normal. But be sure each contingency clause contains a reasonable deadline.
– As part of the listing agent’s presentation, and again when a purchase offer is obtained, the agent should give you a “seller’s net statement.”
This is a good faith estimate of your sales proceeds based on the sales price and obligations, such as a mortgage and the sales commission, which must be paid from the sale proceeds.
– Finally, realize home buying and selling can become very emotional. Keep in mind your goal is to sell your home for a reasonable price. Don’t lose the sale over petty details.
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Please note: Real estate laws differ from place to place, and laws of your area should be checked before making decisions on real estate problems. Letters should be addressed to Tribune Real Estate Features Service, P.O. Box 280038, San Francisco, Calif. 94128.
