Prepare Your Home, even before you put up the "For Sale" sign!

Attract buyers with low cost cosmetice steps. Cut the grass, clean up the outside, paint drab walls and remove inside clutter.
Why? Because people buy homes that appear clean, solid and well maintained.

Adding Value to the home before selling:  Think twice before finishing a basement or adding a deck to the house you plan to sell. To get the maximum price, some homes may need new kitchen cabinets or even an extra bathroom, but not all improvements will pay for themselves.

Rule 1:
If the house is in poor condition, improvements may increase the final sale price.
Rule 2:
A thousand dollars spent to improve a home that is in good condition, seldom adds a thousand dollars to its final sale price.
Rule 3:
Nothing adds value to a home like improvements to the kitchens and bathrooms.

Don't spend money to improve a house that you plan to sell unless the house is in such poor condition that it cannot be sold without those improvements.

Home selling price: Set it right and sell fast.

Find the true value of your home by comparing it to similar homes recently sold in your neighborhood. Audrie describes where to find recent selling prices and how to compare your house to others.

The value of your 4 bedroom house is tied to the selling price of other 4 bedroom homes in your neighborhood. This is true no matter how much you invested in your garden or in kitchen cabinets. The trick is to balance the cash you want with the actual value of the property.

Estimate your home's true market value.
Find the selling price of similar homes in your neighborhood. Internet databases and other services make this task easier than it might seem.

Sources of recent selling prices:

• The Comparable Market Analysis (CMA) you can receive in interviews with neighborhood real estate agents.
• Find recent neighborhood prices on the Internet.
  Ditech.com , and Domania.com provide sales prices for recently sold homes in your neighborhood or on your street.
  New York Residents: NewYork-Data.com provides a free database of recently sold homes organized by zip codes.

Steps to setting price (when you have a list of recently sold homes)

• Find the homes that are most similar to your own in terms of size and number of rooms.
• Walk by and view the selected homes. Decide if the lots are bigger or smaller than your own. Decide if the general condition better or poorer than your own.
• Set your asking price higher or lower than the selected homes based upon these observations. Also take into consideration current market conditions and changes in comparison with the time frame that the selected homes were on the market.

Other sources of Pricing help:

• Home appraisal: - For a fee ($250 - $350 in most areas), you can hire a real estate appraiser to put a value on your home for you. These appraisals are based on its condition and past sales of comparable homes. The appraisal can be used to help justify your price when negotiating with buyers.
• Engineer's Inspection: If you suspect any problems with the roof or other major components such as the plumbing or heating system, you can hire a professional home inspector (for $200 - $300) to assess the condition of these areas in your home. The engineer's written report will arm you against similar reports prepared by inspectors hired by prospective buyer's.

• The buyers mortgage costs: In most states, the seller will traditionally pay fees associated with the buyer getting a real estate mortgage loan. These fees are typically 1% to 1.5% of the loan amount.
• Other closing fees: These include attorney fees, title search, and recording fees. A good estimate is 1% to 1.5% of the sales price.
• Real Estate Brokerage fees:
  • Brokerage fees or commissions can easily be the seller's biggest cost.
  • If the seller lists the home with a real estate agent, he can expect to pay between 6% and 7% of the purchase price.
  • If the seller sells home on his own, but accepts a Buyer brought by a real estate agent, the Seller will usually have to pay half of the above amount or 3% to 3.5% of the purchase price.
  • The best situation is where the seller advertises his own home, finds his own buyer and pays nothing to real estate agents.
• The seller can limit his costs by stipulating in the Sales Contract a maximum amount he will pay towards the Buyer's mortgage costs and Other Closing fees. 
• Real Estate Brokerage fees are subject to a separate agreement with the real estate agent and are not usually limited in the Sales Contract.

Don't forget: Home prices are higher in Spring & Summer. Except in Florida, Hawaii, and a few other sunny spots, most Buyers look for homes in the Spring and Summer, making it harder to get high prices in Winter when few Buyers are looking for homes.

Good Advertising sells Homes.

New low cost web sites will put multiple pictures of your house on the Internet. Use Internet ads in combination with local nespapers and neigborhood flyers.

A good ad requires a headline that grabs attention, a few lines to describe key features of the home, and a closing line that gets buyers to call.

Open House

Invite all the neighbors for blocks around your house. Make sure everyone knows your house is for sale. Show them the good points and tell them your price. Why? Because neighbors are the best promoters of the neighborhood and they have friends and family who buy homes.

Showing Your Home:

Before you start make sure you have:

• A guest book (a plain spiral notebook will do just fine).
• Blank contracts and forms in case someone wants to buy your home (these can be purchased from any large office supply store).
• 8  1/2 x 11 inch flyers / fact-sheets with your price and a description of the house. Every guest should leave with a flyer.

Negotiating Tips

Always make a counter offer. The buyer who offers less than your asking price can be encouraged to pay more or agree to other terms like accepting the house without repairs.

Inspections

Any standard real estate sales contract will give the Buyer the right to inspect the property and ask the Seller to make reapairs.

Inspections required by most purchase contracts:

• GENERAL INSPECTION: The Seller is obligated to repair major appliances, heating, plumbing, air-conditioning and electrical systems, and keep them in working order until the closing.
• ROOF INSPECTION: The Seller may be obligated to spend up to 3% of the purchase price to repair leaks or other damage to the roof. This is especially important in areas with heavy snows.
• TERMITES AND OTHER WOOD DESTROYING ORGANISIMS:
  • In some states, the Seller must provide the Buyer with a letter guaranteeing that the home is free of termites. This letter must be provided by a licensed pest control company.
    The cost is usually between $50 and $75 assuming there is no infestation. Any infestation must be corrected before closing.
  • In other states, the Buyer pays for the inspection, and the Seller is obligated to spend up to 3% of the purchase price to repair any termite damage.

Closing The Deal

• Avoid the tendency to relax after getting a buyer to sign your sales contract. Finishing details; ..the events between signing a contract and closing day should lead smoothly to collecting cash for your house, ...but little things can go wrong if you don't pay attention.

• Home Inspections: Buyers have the right to inspect your house. Pay attention to these inspections!
• Calculate the net cash you will receive from the sale of your home on closing day.
• Settlement statements are prepared by the closing attorney, escrow agent or title officer, depending on your state. The settlement statement  is an accounting of all the monies involved in the sale of your home. Attorneys and escrow agents are trustworthy but mistakes can happen, and even a small mistake could cost you thousands of dollars on the sale of your house.
• Closing day : This is when the closing attorney or escrow agent transfers the title to the buyer, pays all outstanding bills, and turns the cash balance over to the seller.
• Sales contracts and offer to purchase agreements can be intimidating. Often written in legalese that looks like foreign languages, they really can be understood by anyone who takes the time to read a few sentences, stop, digest, and read a few more sentences. Take your time!