Just in case you haven’t been paying attention, in most communities houses and condos are selling at a robust pace. The primary reason seems to be low mortgage interest rates.
In most areas, this is a great time to sell, but earning top dollar and avoiding costly mistakes requires planning:
The first home-sale preparation step is to have your home professionally inspected. Start with a professional home inspector. I prefer members of the American Society of Home Inspectors because they have extensive experience tests to become members. You’ll find them at www.ashi.com, 800-743-2744, or in the Yellow Pages under “home inspectors.”
Only after your home’s been professionally inspected (so you know its serious problems, if any) and you’ve modestly fixed it up for sale (or decided to sell “as is”) are you ready to determine your home’s market value.
It’s a good idea to interview at least three successful realty agents who sell homes in your vicinity.
Each agent you interview should prepare a written comparative market analysis (CMA). This CMA form shows recent sales prices of similar nearby homes like yours, current asking prices of neighborhood homes (your competition), and asking prices of recently expired listings that didn’t sell.
Most important, each agent you interview should give you their estimate of your home’s sales price, after considering its pros and cons compared to comparable homes on the CMA.
To avoid getting ripped off, question any agent who estimates a very high sales price. This is called “buying the listing.” Also, beware of any agent estimating an abnormally low sales price, perhaps hoping you won’t interview other agents and will list at a below-market price for a quick, easy sale.
During the listing period (which shouldn’t exceed 90 days, just in case your agent’s a dunce), anticipate weekend open houses, tours by other local agents, and frequent showings of your home by your listing agent and member agents of the local multiple listing service (MLS), the most powerful marketing tool your listing agent has.
It’s best to allow your listing agent to place a lockbox near your front door so MLS agents can show your home if you’re not home. If you are home when an agent phones to show your residence, it’s time for you to get out of the house. Let the agents do their job without you.
While your home is listed for sale, your listing agent should supply blank copies of real estate forms you will be expected to review and sign when a purchase offer is obtained. It’s best to read these forms at your leisure and ask your listing agent, before a purchase offer is presented, to explain any items you don’t understand.
When an acceptable purchase offer is received and you accept it, that is not the end of the home sale. It is just the beginning of the closing.
Be prepared for the buyer’s inspections and contingencies, depending on what was specified in the sales contract. Some buyers view a signed sales contract as just the beginning of their negotiations.
Finally, insist on receiving copies of all closing papers you will be expected to sign, at least 24 hours before the closing. If you are represented by a real estate attorney, be sure he or she also receives copies to review.
Be prepared for last-minute rip-off tricks that can cost hundreds, sometimes thousands, of dollars. To illustrate, at the closing some buyers say they are a little short of cash and that the seller must pay for the buyer’s loan fee–or else the buyer won’t be able to complete the purchase.
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