Home-Selling Checklist: 12 Things to Do Before Selling Your House

On November 6, 2017   /   Selling a Home  
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12 things to do before selling your home

By: Cathie Ericson

Getting ready to sell your house? Then it’s time to roll up your sleeves and get to work! Selling a home, after all, entails a whole lot more than just planting a “For Sale” sign on your front lawn or uploading a few random photos of your place—especially if you’re angling for the most cash. (And, honestly, who isn’t?)

So before you put your house on the market, peruse this checklist of things you must do in preparation. Some of these tips are surprisingly easy, while others might require a bit more elbow grease. But they’re bound to pay off once buyers start oohing and ahhing over your place—and hopefully ponying up a great offer.

1. Find a great real estate agent

Think you can sell your home yourself, and pocket the cash you would otherwise pay an agent? It can be tempting, especially in a hot market, but resist the urge, says Jon Sterling, a real estate consultant with Keller Williams Realty in San Francisco. He’s found that a “For Sale by Owner” transaction is almost always a disaster, leading you to sacrifice both money and time.

That said, don’t just blindly hire the agent who most recently sent you a flier or the one your uncle’s friend’s co-worker’s cousin used. Do some research to find a real estate agent (or ideally a few) who is knowledgeable about your specific market, and then interview her to make sure she’s a good fit.

2. Consider your curb appeal

Make sure the first thing prospective buyers see of your home entices them to want to see more. Yes, for better or worse, buyers do tend to judge a book by its cover. By investing some effort in relatively easy fixes like planting colorful flowers and repainting your front door, the outside of your house can beckon them to come on in.

3. Declutter living areas

Less is definitely more when it comes to getting your house ready to show, notes Boris Sharapan Fabrikant, a real estate broker with Triplemint.

Do a clean sweep of counters, windowsills, tables, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards—since virtually nothing is off-limits for curious buyers. And if the house is overflowing with stuff, they might worry that the house won’t have ample space for their own belongings.

Take the excess and donate or pack it up for a storage space. The bonus to taking care of this now is that it’s one less chore you’ll have to do when it’s actually time to move.

4. Depersonalize your space

The next step on your declutter list? You want to remove any distractions so the buyers can visualize themselves and their family living in the property, says Kipton Cronkite, a real estate agent with Douglas Elliman in New York.

He says that includes personal items and family photos, as well as bold artwork and furniture that might make your home less appealing to the general public. The goal is to create a blank canvas on which house hunters can project their own visions of living there, and loving it.

5. Repaint walls to neutral tones

You might love that orange accent wall, but if it’s your potential buyer’s least favorite color, that could be a turnoff, warns Sharapan Fabrikant.

“You’re pretty safe with a neutral color because it’s rare that someone hates it, but the other benefit is that a light color allows [buyers] to envision what the walls would look like with the color of their choice,” he points out.

6. Touch up any scuff marks

Even if you’re not doing a full-on repainting project, pay special attention to scrubbing and then touching up baseboards, walls, and doors to make the house sparkle and look cared-for.

7. Fix any loose handles

A small thing, sure, but you’d be surprised by the negative effect a loose handle or missing lightbulb can have on a buyer, notes Sharapan Fabrikant. “It can make them stop and think, ‘What else is broken here?’”

8. Add some plants

Green is good, because plants create a more welcoming environment. You might also want to consider a bouquet of flowers or bowl of fruit on the kitchen counter or dining table.

9. Conduct a smell test

Foul odors, even slight ones, can be a deal breaker, and the problem is that you might not even notice them, says Sharapan Fabrikant. He recommends inviting an unbiased third party in to try to detect any pet smells or lingering odors from your kitchen.

If the smells are pervasive, you might need to do some deep cleaning, because many buyers are on to your “masking techniques” such as candles or plug-in room deodorizers.

10. Clean, clean, clean

And then clean some more. You want your property to look spotless. Take special care with the bathroom, making sure the tile, counters, shower, and floors shine.

11. Hide valuables

From art to jewelry, make sure that your treasures are out of sight, either locked up or stored offsite, recommends Kronkite.

12. Consider staging

Does your house scream 1985? Nothing invigorates a house like some new furnishings or even just a perfectly chosen mirror. The key is getting your home staged by a professional. Home stagers will evaluate the current condition and belongings in your house and determine what elements might raise the bar. They might recommend you buy or rent some items, or they might just reorganize your knickknacks and bookshelves in a whole new (that is, better) way.

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How to Prepare for an Appraisal and Showcase Your Home at Its Best

On September 4, 2017   /   Selling a Home  
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getting ready for appraisal

By: Tara Mastroeni

Determining a price for your home can be stressful, especially if you don’t know how to prepare for an appraisal. If the home’s appraised value is too far from the listing price, it can make or break the deal. Plus, even though appraisers are subject to strict regulations, much of their job is subjective, which means it’s crucial for your home to make a good impression on them.

Luckily, there’s a lot you can do to help present your home at its best.

Develop a critical eye

The first step toward getting ready for an appraisal can be the hardest for sellers. You need to go through the home with a critical eye and make yourself aware of any areas in need of maintenance. Doing so allows you to think like an appraiser and identify any factors that might negatively affect your home’s value.

“Go through the house very carefully to make sure everything works correctly,” says Daniel Gyomory of Century 21 Town & Country in Northville, MI. “Make sure all lights are working and all doors open and close properly, and make sure there are no leaks anywhere. You need to show that the property has been well-maintained.”

While you’re at it, you should check for things like leaky sinks, running toilets, and nail pops. As you go around the home, put everything down on one list so that you can easily refer to it later.

Catch up on your home maintenance

You guessed it: One of the most critical to-do’s is to complete any outstanding home maintenance tasks.

Go ahead and do small projects like fixing squeaky doors and cleaning out the gutters on your own. However, for bigger jobs like plumbing and electrical work, your best bet is to hire a certified professional. While it might cost a bit more upfront, hiring a professional to do the work frees you of any liability and allows you to show an invoice as proof, if need be.

And remember, these should be smaller home maintenance tasks, not big renovations. While giving a room a fresh coat of paint or adding some curb appeal is probably fine, it’s not the best idea to finish your basement right before an appraisal. Unfortunately, there aren’t any guarantees on how much value projects like these will add to your home, so sometimes they aren’t worth the money you’d put in.

Put together a list of upgrades

“I work with the seller to prepare a highlight sheet, just a simple one-page document outlining all the upgrades that have been done to the home,” says Ryan Hardy, a real estate agent with Gold Coast Realty Chicago.

Highlight sheets end up being very valuable tools, because they allow the appraiser to see all the added value in your home with just one glance. Your best bet is to sit down—either with your agent or independently—and draw up a list of all the improvements that have been made to your home within the past decade. Be sure to include approximate dates, permits, and warranties for these projects, as well.

The highlight sheet shouldn’t just include aesthetic improvements like upgraded kitchens and bathrooms. Functional and structural improvements like a new roof or HVAC system should also make the list.

Note: It’s in your best interest to overlook any improvements done without proper permitting. Since appraisers often work closely with municipal officials to verify recorded information, mentioning these upgrades might bring them to light and could cause more trouble than they’re worth.

Clean like there’s no tomorrow

“Have the house clean and clutter-free,” says Kevin Lawnton, a real estate agent with Coldwell Banker Schiavone & Associates in Bordentown, NJ.

It might sound like a no-brainer, but cleaning for an appraisal is so important that it bears repeating. This is the one and only chance the appraiser will get to view your home. Since his opinion of the home can actually make or break the sale, it’s crucial to ensure it’s a good one.

Your best bet is to tackle the task in two parts: a deep clean of the home a few days before the appraisal and then a final sprucing up on the big day. When it arrives, you’ll want to make sure that everything is in its place. Make the bed, pick up any errant toys from kids and pets, and do the dishes. While these factors technically aren’t included in the appraisal, they might subconsciously influence the appraiser’s opinion of your home, which can affect its determined value.

Ask your agent to get involved

The appraised value of your home is largely determined by how it compares with similar properties that have sold in your area within the past six months. Most agents will try to assist appraisers with that research by providing them with comparables that justify the sale price.

“Usually it’s up to the seller’s agent to pull together a comp report showcasing how great the property in question is compared to the current market,” says Gina Ko of Triplemint Real Estate in New York City.

Unfortunately, just like everything else in the appraisal process, comps are subject to guidelines, as well as your appraiser’s individual opinion. Some are able to factor in transactions in progress, while others need to stick with settled properties. Each will need to search for comps with a specific radius.

That said, your real estate agent will likely be familiar with how the appraisal process is regulated in your area. Ask your agent to put a list of comps together to give to your appraiser. Whether or not the appraiser chooses to take them into account, they will come in handy if you need to ask for an appeal after the appraisal.

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Closing On a House: What Sellers Should Expect

On August 21, 2017   /   Closing  
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closing

By: Angela Colley

The good news: You’re almost home free (or free of your home in this case). You’ve accepted the buyer’s offer, the negotiations are finally winding down, and there is only one more little box to check: closing.

OK, so maybe it isn’t a little thing. And maybe you’re a little worried something is still going to go wrong. That’s why we’re here to help get you through closing without a hitch—or barely a hitch (hey, stuff happens).

Get the repairs done

First things first: You’ve got to get those repairs done. We get it—the last thing you want to do now is work on a house you are about to sell. But if you agreed to make repairs or improvements, don’t put them off until the last minute.

“Some sellers do try to get cute and wait until the day of closing, but they really should do all the repairs at least a week before closing,” says Joshua Jarvis, founder of Jarvis Team Realty in Duluth, GA. Getting things done ahead of time will give you plenty of wiggle room if something should still go wrong, or if the buyer finds a problem during the final walkthrough (more on that to come).

So check the approved offer, make a note of any repairs you and the buyer agreed on, and get to it—and don’t forget to cover yourself. Save receipts from items purchased and invoices from contractors, and take before and after photos of any work completed. You will have proof that repairs were completed on the off chance that the buyers contest them during the walkthrough or at closing.

The final walkthrough

Before your closing date—often 24 hours before—the buyers and the buyers’ agent will do one more walkthrough of the house (for which you should not be present). They will go through every room of the house, inside and outside—a process that typically takes about a half hour. Some buyers will go into detail, testing every light switch. But in most cases, the buyer is just looking to make sure agreed-upon repairs were made and no new issues have crept up before closing.

“Buyers are basically looking for anything unexpected in the home,” Jarvis says. “Say, for example, there was a rug covering a problem area.” (Not that you would do that, you awesome seller, you.) If the buyers do find an issue, you may have a chance to fix the problem ahead of time.

“In most cases, the seller would be notified immediately after the walkthrough,” Jarvis says.

If the problem is big enough, you may have to delay your closing date to give time for the repair. But that only happens occasionally. Often, the buyers will take a trade.

“Many times, the buyers ask for money instead,” Jarvis says. But once the documents are ready to go, the terms usually can’t be altered to include the new amount, and that is where the trade comes in. “You typically see gift cards or appliance trades [added to the deal],” Jarvis says.

The closing

Many closings go smoothly. By this point, the buyers are excited to get into their new house, agreed-on repairs have been made, and the sellers are ready to get out. If things are going smoothly, the closing for you might boil down to a blur of paperwork. “The sellers sign eight documents and will have to sit through an hour and a half of watching the buyer sign,” Jarvis says.

Unless problems creep up—or the buyer wants to negotiate further—you only have two jobs: waiting and reading documents. Some are worth perusing more than others. For example, make sure you pay close attention to the settlement statement. “There are other documents you’ll need to sign like a warranty deed or ‘Don’t sue the attorney’ documents, but the settlement is the most important,” Jarvis says. It includes the money you’re making on the sale, plus tax implications. Make sure to check that these numbers jibe with what you’ve been told and were expecting—and if not, pull your real estate agent or attorney aside and point them out.

Last-minute drama

So what if things aren’t going smoothly? What if the buyers want to negotiate again? The buyer has the right to hash out concerns up until the time they sign the final document and take possession of your house. It makes sense to at least hear them out. After all, you’ve come this far.

If the buyer is negotiating for something you can solve without amending the terms (say, for example, you can offer up the washer and dryer in the house), you’ll probably be able to hammer those details out at closing.

But if you and the buyer have negotiated a lower price at the last minute, you may have to delay closing.

“Big changes just mess the whole thing up,” Jarvis says. “For example, a seller could say, ‘I’ll drop the price by $2,000.’  There’s an amendment that needs to be done and the loan would have to be rerun,” Jarvis says. That could take anywhere from one day to a week, depending on the bank’s turnaround times.

Once the negotiations are handled and the papers are signed, the buyers’ funds are transferred to your attorney, who will handle the payments to cover your loan and pay your real estate team. Thankfully, this part is handled by someone else.

And then comes the best part: You’ll get a check for the remainder, usually the same day in most states.

Now, all that’s left is the fun part: Officially moving out and moving on!

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7 Important Things Home Sellers Often Forget to Do

On April 3, 2017   /   Selling a Home  
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By: Jennifer O’Neill

When you’re selling your home there’s so much to do: find a Realtor®, do touch-ups, get that balky air conditioner fixed, look into staging… It’s no wonder that sometimes things fall between the cracks. Big things. (We’re not pointing fingers, promise!) Our arsenal of experts—aka real estate agents who have worked with many home sellers—identify the to-do’s that sellers typically overlook. We promise you, these tasks are well worth the time it will take to complete them (which isn’t very long at all).

Heed this sound advice, and there’s a good chance selling your house won’t be nearly as stressful as everyone tells you it is.

To-do No. 1: Google your address

Not all sellers scour the Internet to find out what’s being said about their property, but they should. Nearly all buyers—90%—search online during their hunt for a home, according to the National Association of Realtors. You should be aware of what your online listing looks like, since it will influence the kinds of concerns buyers will have, says Avery Boyce, a Realtor with Compass Real Estate in Washington, D.C.

“Is the site’s estimated value very different from your asking price? It might be because tax records have the wrong information about the number of bedrooms or bathrooms your house has, and this is easily fixed,” Boyce says. Consider this too: Google Maps’ street view of your property may not show improvements that you’ve made, so you’ll want to be sure to include those updates in your listing.

To-do No. 2: Account for improvements and issues

“If you’ve owned your home for a while, make a list of all the problems you’ve solved while you’ve lived there,” says Boyce. This could include chimney fires, water damage, or a flood in the basement. Whether you solved the problem or not, you should disclose this information to the buyer so you don’t wind up in a lawsuit after the sale. Disclosing “invisible improvements” that you’ve made, like re-grading or adding a French drain system, can also be a great source of comfort for buyers, adds Boyce.

“The same goes for sewer lines or tanks, radon remediation, or leaky skylights.”

To-do No. 3: Check your real estate agent’s references

An agent’s bad behavior or incompetence could cost you time, money, and peace of mind, so it’s well worth taking extra steps to find the best real estate agent for you. Ask friends for recommendations.

Check that the people you’re considering have a current real estate license—with no complaints filed against them. Meet with the agent and reach out to a few of their references directly.

“Real estate agents should be happy to provide a number of references for a new client to call,” says Marianne Leonard Cashman a Realtor with William Raveis Real Estate in Andover, MA. As far as talking to your friends about a real estate agent recommendation, here are some questions Cashman suggests asking:

  • Did you have confidence in your real estate agent?
  • Do you think he/she had good knowledge of the local market?
  • Did your agent communicate well and keep you informed during the entire transaction?
  • Do you think that he/she negotiated well on your behalf?
  • Did your agent have good vendors who could assist you?
  • Did your agent returned calls/emails in a timely fashion?
  • Would you recommend this person? Why? (Or why not?)

To-do No. 4: Insist on social media marketing

You staged your home beautifully, picked a competitive price, and listed the property, but there’s something else you’ll need to prepare before you’re fully ready to sell—a social media marketing plan. Video tours, floor plans, and photo galleries promoted on Facebook, Twitter, and Instagram are must-dos, advises Cashman.

“You want to make sure that your agent is using all avenues to attract the right buyer for your home,” she explains. “Make sure your home has a presence on your agent’s website, their agency’s website, and is promoted on various sites that will market the home and give information about open houses.”

To-do No. 5: Make sure the doorbell rings

Ah, attention to detail. It’s those little cosmetic repairs that could cost you your home sale. If buyers see that you can’t even be bothered to repair a busted doorbell, they’re automatically going to think about what else may need fixing and view the home negatively.

“First impressions make all the difference,” says Cashman. “A well-kept home, starting with the view from the curb, gives the perception that the seller has great pride in the home and has taken good care of it—which translates into less energy and costs for the buyer as they prepare to move in.”

To-do No. 6: Clean inside everything

Storage is a huge selling point for homes. So be warned: Buyers are going to poke around inside closets, drawers, cabinets, ovens, refrigerators, and even the dishwasher, whether they’re cleaned or not—so you’d better make sure they are clean.

“Spending the money on a service to deep-clean your home will come back to you at least 10 times in your sales price,” says Boyce. Even if you’ve swept up and scrubbed all surfaces to a shine, you’re not done until dust, crumbs, and creepy crawlies are cleaned out from within the small spaces too.

To-do No. 7: Clarify which items are not included

You don’t want a buyer to fall in love with your house because of the custom window treatments and then rescind their offer when they find out the curtains aren’t for sale.

“The law says that anything bolted to the wall or ceiling goes to the buyer unless specifically excluded in the contract,” says Boyce. “If you want to take your flat-screen TV, chandelier, or custom pot rack, be sure to label it as soon as the house goes on the market, so that buyers don’t bank on owning that item and wind up disappointed.”

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Should I Sell My House? How to Tell If the Time Is Right

On January 2, 2017   /   Selling a Home  
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selling a house

By: Jamie Wiebe

No matter how many fond memories you’ve accumulated in your home, there may come a time when you start wondering: Should I sell my place? Maybe it’s because your local real estate market is booming and you stand to score a sweet payout. Maybe you’re relocating. Or your expanding family has outgrown your space. Or you’re just looking for a change of scenery. But questioning is easy; deciding to put your house on the market is tough.

Here are some steps to help you pinpoint when the time is right.

How to calculate your home equity

A key variable in the decision on whether to sell your home is how much equity you’ve built up over the years. Home equity is the amount of money tied up in your house—what you’d receive if you sold it, minus what you owe on your mortgage.

So how do you calculate your home equity? You’ll need two numbers: the remaining balance on your mortgage and what your home is currently worth. You can get a ballpark of the latter by typing your address into realtor.com®’s home value estimator. For a more in-depth assessment, ask your real estate agent, who will do an analysis by checking comparables, or comps (the prices of recently sold, similar homes in your area), as well as other aspects of your home.

Here’s how this calculation looks with actual numbers: Let’s say you purchased your home for $300,000, but its market value has risen to $325,000. Let’s also assume that you’ve whittled down your mortgage over the years so that all you owe is $75,000. To get your home equity, subtract $75,000 from $325,000 and you have $250,000 in home equity, which is pretty sweet!

Of course, the more you owe on your mortgage and/or the more your home’s price has plummeted, the less home equity you have. If that number is much smaller or even negative (which can happen if housing prices plummet), consider holding off on selling until conditions improve.

Is it a seller’s or buyer’s market? Here’s how to tell

Another factor in deciding if it’s time to sell is whether you’re in a seller’s market. This essentially means that the demand for homes is outpacing the supply, which gives sellers more leverage during negotiations. To figure out if you’re in a seller’s market, browse through some listings and look for these two signs: houses are selling for over asking price, and homes aren’t sitting on the market for long (generally less than six months). If that describes your area, then it’s a great time to sell. (Just don’t forget that if you sell, you may also have to buy, which may present problems unless you’re leaving the area.)

On the other hand, if homes in your area are selling for under asking price and sitting over six months, that means you’re in a buyer’s market and that market forces aren’t working in your favor. This means if you want top dollar you may want to wait.

What’s up with interest rates on mortgages?

If you’re planning to sell your home and buy a new one, you should definitely consider interest rates on mortgages. Fortunately, right now, interest rates are at historic lows, hovering around 4%. That’s an astounding deal! In the ’80s, they were a whopping 17.48%—and while they probably won’t shoot up quite as high in the near future, we’re expecting them to move up by next year. Homeowners eager to upgrade to their dream home might want to grab them while they can.

Have your housing needs changed?

Market forces and interest rates aren’t the only things to keep in mind when deciding if you should sell your home. A lot has to do with you, and whether the house suits your space requirements. For instance: Is your current place too small now that you’ve been joined by a couple of kids—or is it too big now that your grown children have moved out on their own? Both scenarios are fine reasons to find a home that better suits your needs, so be sure to consider all of these factors in weighing whether the time is right to sell.

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