Category: Sellers

Selling a house can be a bit like having a baby — everyone gives you advice that you may or may not have asked for, in spite of the fact that the experience is unique to each individual every time. And just like having a baby, there are many myths and “old wives’ tales” to be de-bunked. Among the truths are the following ten:

1. Myth: You should always price your home high and gradually correct the sales price downward.
Truth: Pricing too high can be as bad as pricing too low.
Your strategy in listing high may be that you will always have the chance to accept a lower offer. But the truth is that if the listing price is too high, you’ll miss out on a percentage of buyers looking in the price range where your home should be. Offers may not even come in, because the buyers who would be most interested in your home are scared off by the price and won’t even take the time to look. By the time the listing price is corrected, you may have already lost exposure to a large group of potential buyers. Your real estate agent will be able to offer you a comparable market analysis for your home. This is essentially a document that compares your home to other similar homes in your area, with the goal of helping you to accurately assess your home’s true market value.

2. Myth: Minor repairs can wait until later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale.
By and large, buyers are looking for an inviting home in move-in condition. Buyers who are willing to tackle the repairs after moving in automatically subtract the cost of needed fix-ups from the price they offer. You save nothing by putting off these items, and you may likely slow the sale of your home.

3. Myth: Once potential buyers see the inside of your home, curb appeal won’t matter.
Truth: Buyers probably won’t make it to the inside of the home if the outside of your home does not appeal to them.
Many buyers today will drive by a home before deciding whether or not to look inside. Your home’s exterior will have less than a minute to make a good first impression. Spruce up the view of the house by keeping the lawn mowed, shrubs and trees trimmed, and gardens weeded and edged. Clear the walkways and driveways of leaves and other debris. Repair gutters and eaves, touch up the exterior paint, and repair or resurface cracked driveways and sidewalks. You can also add additional appeal by placing potted flowers out front, hanging a wreath on the outside of the door, positioning new street numbers, and putting out a pleasing welcome mat.

4. Myth: Once potential buyers fall in love with the exterior look of your home, you put interior improvements on the back burner.
Truth: Buyers have no qualms about walking right out the front door within 60 seconds if the house doesn’t look like it could be theirs.
Remember that most buyers are looking for an inviting home in move-in condition. You might consider spending a few dollars on: painting, if the existing paint is in bad shape or an unusual color; carpeting, if it shows excessive wear or an outdated color or style; resurfacing kitchen cabinets; scrubbing bathrooms until they are sparkling clean; or several other key repairs or replacements. Although you may be uncomfortable with spending a few thousand dollars on your home right before you sell it, it’s not uncommon for the right work to more than pay for itself in a higher selling price and shorter marketing time. Your real estate agent will consult with you about the repairs and replacements that will benefit you most.

5. Myth: Your home must be every home buyer’s dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house.
At some point, improvements that you make to your home can rise far above and beyond what is customary for comparable homes in your area. For instance, there may not be another swimming pool in your entire subdivision. After spending $20,000 to install an in-ground swimming pool that you hope will lure buyers, you may find that it only raises the market value of your home by $10,000 because there are no other comparable properties to support the market value of the pool. As a rule of thumb, if your improvements push your home’s value higher than 20% above average neighboring home values, don’t expect to recoup the entire amount of improvements. Your real estate agent can advise you as to the scope of projects you might consider in preparing your house for sale.

6. Myth: Buyers are unswayed by sellers that offer creative financing options.
Truth: By offering flexibility in financing options, you may lure even more prospective buyers.
You might consider offering seller financing, paying some of the buyer’s closing costs, including a one-year home warranty, or other buyer incentives. Your real estate agent, who has professional knowledge of local market activity, can help you decide what incentives, if any, to offer.

7. Myth: You are better off selling your home on your own, thus saving the commission you would have paid to a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on their own cannot consummate the sale without the service of a professional real estate agent.
And those sellers who are successful in selling without a real estate agent often net less from the sale than sellers who use do a professional real estate agent. You probably visit a doctor when you are in ill health. You also likely take your car to a mechanic for repair and maintenance. When you require legal advice, chances are that you seek the services of an attorney. Doesn’t it make sense that you should contact a real estate professional when you are preparing to sell your biggest asset?

8. Myth: Good sellers are available to guide prospective buyers through the home, giving the whole process a more personal touch.
Truth: Prospective buyers will feel more that “this house could be” their home if the current owners are not there.
The presence of homeowners and/ or their family members in the home while it is being previewed can make buyers feel like they are intruding. They really do need to be able to visualize this house as their home, which can be difficult to do when they are acutely aware that it is still your home. Your real estate agent will be happy to look out for your home during open houses or showings.

9. Myth: Successful sellers insist that the terms of the sale happen their way or no way.
Truth: If you approach the sale of your home as an adversary of the buyer, you risk losing a perfectly solid buyer for no good reason.
Always remember that both you and the buyer have the same basic end goal: for you to sell your home and for the buyer to buy your home. Your real estate agent will join you in approaching negotiations in a positive frame of mind, which often results in a win-win proposition for both you and the buyer. And if both parties are satisfied with the outcome of negotiations, very few things will come between you and the closing table.

10. Myth: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.
Truth: You should reply immediately to an offer!
When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don’t want to lose the sale because you have stalled in replying.

In preparing your house to sell, ask yourself over and over if your house looks like someone else’s dream house. Houses in move-in condition tend to be inviting to buyers; houses that are in like-new condition typically sell fastest and procures the best price because it outshine the competition.

With that in mind, here are a few things to consider as you look over your house when getting ready to sell:

Exterior

Remember the sixty-second rule: that’s all the time you have to create a good first impression! Mow the lawn, rake leaves, trim trees and shrubs that keep light out of the house, and remove dead plants. It will probably be easier to sell your house if the buyer can see it, outside and in. Pick up tools, garbage cans, hoses, toys, and building materials and store them neatly in a storage area. Replace broken or missing roof shingles, and straighten and clean the gutters and downspouts. Clean all windows and mend torn screens. Paint your house, if necessary. This can probably help improve curb appeal more than any other fix-up! If you decide against painting the entire house, at least consider painting the front door, window frames, and shutters. Seal or resurface the driveway and repair broken steps and walkways. Paint or replace your mailbox and post. Dress up the front yard with some simple landscaping.

Clean, Clean, Clean

Step back for a moment and look at your home as if you were seeing it for the first time. Every room should be neat, spotlessly clean, dusted, and uncluttered. Steam clean the carpets and wax the floors. Wash the walls, windows, and light fixtures. Tighten loose stair railings and clean all woodwork. In the event that you feel a project of this magnitude is better left to a professional, ask your real estate agent to recommend a professional cleaning service.

Entryway

Use bright light bulbs in the foyer and throughout the house. Fill the house with a pleasant aroma, such as berries in the summer or cinnamon in the winter, or some other fresh scent.

Living Room

Replace the carpet if it’s old or worn. It costs money, but you may find that you will more than recoup that cost when the home sells. Patch cracks and nail holes in the walls, and repaint walls in neutral colors, such as white or ivory. Nail down creaking boards and stair treads. Lubricate any sticking or squeaking doors. Open all curtains, and replace them if they are getting old. Add lamps and lighting if the house is dark. Set out fresh flowers.

Furniture

Rearrange or move furniture to make your rooms look more spacious. Discard worn furniture and move extra furniture to a storage unit. Remember, too much furniture and too many knick-knacks make rooms look cluttered and small. One or two decorative items per surface is plenty, so pack the rest away. Visit model homes for decorating ideas.

Kitchen and Baths

These rooms should sparkle! Clear off counters, and clean all appliances and fixtures. Scrub the floors and walls. Re-caulk tubs and showers. Clean these rooms thoroughly, and be sure they smell fresh!

Closets

Take those things to Goodwill that you’ll have to discard anyway when you move. Organize shelves and straighten shoes. Be sure that sliding doors operate smoothly on their tracks and knobs on drawers are secure.

Utility Room

Dust and wash off lint from the washer and dryer. Dust and wash off the water heater.

Light and Bright

Do everything you can to brighten the interior. Replace wallpaper with white or off-white paint, and repaint shabby or dark walls. Open the blinds, and replace broken windows and window seals. Always maintain a comfortable temperature inside the house, even if you are away for an extended period of time.

1. When you first bought your house, you lived in the country. Now that same house is part of the city.

2. You can’t get anything repaired because “they stopped making those parts years ago.”

3. The swing set in the backyard has sprouted roots.

4. The plumber’s phone is on your speed dial.

5. Your phone number is on your plumber’s speed dial.

6. All the children’s rooms are now guest bedrooms.

7. You haven’t visited the other half of the house in six months.

8. You have to move the furniture to see the carpet’s original color.

9. Your bathroom is decorated in avocado green — from the first time it was in style.

10. You can’t make any improvements to the exterior of your home without getting approval from the “Board of Historic Monuments.”

You should understand from the beginning of your relationship with your real estate agent what type of relationship exists. In most states, real estate agents (both brokers and sales associates alike) are required by law to let consumers know whether they represent the buyer or the seller.

In the past, real estate agents represented the seller exclusively, whether the agent helped a seller to market and sell the home or helped a buyer find and purchase the home. In other words, agents were at one time legally bound to represent the seller in a residential real estate transaction. In that same scenario, the seller paid both the listing agent and the agent who brought the buyer.

However, in today’s real estate market, you may find that you can choose between a wide variety of options for representation. If you want to sell a home, you can work with a “seller’s agent”. If you are purchasing a home, you can work with a subagent of the seller’s agent and, in many areas, you can engage an exclusive “buyer’s agent”.

An additional situation in some states is dual agency. This type of agency exists when the buyer decides to have the seller’s agent prepare the offer on the buyer’s behalf. A buyer who elects this situation, and all additional parties to a transaction, should receive full disclosure of representation. In some states, dual agency also affects the real estate professional’s fiduciary responsibilities to the seller.

Keep in mind that real estate laws differ from state to state and even from locale to locale. And within this framework of variety, laws can change. For more in-depth answers for your specific situation, talk with a knowledgeable real estate professional and ask about local practices. Be sure that you understand and are comfortable with the options involved when you engage the services of a real estate agent.

1. Are you a full-time professional Realtor®? How long have you worked full time in real estate? What professional designations do you have?

Knowing whether or not your Realtor® practices real estate on a full-time basis can give you a piece of the puzzle in foreseeing scheduling conflicts and, overall, his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.

2. Do you have a personal assistant, team, or staff to handle different parts of the sales transaction? What are their names and how will each of them help me in my transaction? How do I communicate with them?

It is not uncommon for high real estate sales producers to hire people to work for them or with them. They typically work on a referral basis, and, as their businesses grow, they must be able to deliver the same or higher quality service to more clients.
You may want to be clear about who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team overall. If you needed help with a certain part of your home sale, who should you talk to and how would you communicate? If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing? These are just a few of the many important considerations in working with a team.

3. Do you and/or your company each have a website that will provide me with useful information for research, services, and how you work with buyers? Can I have those Web addresses now?

Many home buyers prefer to search online for homes and home buying information. There are certain privacy and comfort levels that you might appreciate in starting a preliminary search this way, and often it is just a matter of convenience, having 24-hour access to information. By searching the Realtor®’s and the company’s Web sites, you will get a clear picture of how much work you would be able to accomplish online, and whether or not that suits your preferences.

4. How will you keep in contact with me during the buying process, and how often?

It’s a good idea for you to set your expectations reasonably in accordance with how your Realtor® conducts business. You may be looking for an agent to call, fax, or email you every days to tell you about prospective buyers who have seen your home. On the other hand, your Realtor® may have access to systems that will notify you automatically each time a new visitor tours your home (which could happen several times a day or several times a week). Asking this extra question can help you to reconcile your needs with your Realtor®’s systems, which makes for a far more satisfying relationship.

5. Can you explain one thing that you do that other agents don’t do that ensures I’m getting top dollar for my property? What is your average market time versus other agents’ average market time?

Marketing skills are learned, and sometimes a real estate professional’s unique method of research and delivery make the difference between whether or not a property sells quickly. For example, an agent might research the demographics of your neighborhood and present to you a target market list for direct marketing purposes.

6. Will you give me names of past clients who will give references for you?

Interviewing a Realtor® to help you buy a home can be very similar to interviewing someone to work in your office. Contacting a Realtor®’s references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.

7. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our listing agreement?

Understand that, especially in the heavily regulated world of real estate, it can be increasingly difficult for a Realtor® to offer a performance guarantee. Sometimes you may find a Realtor® who is willing to guarantee that if you are dissatisfied in any way with their service they will terminate your listing agreement. If your Realtor® does not have a performance guarantee available in writing, it is not an indication that he or she is not committed to perform. Realtors® at Keller Williams Realty understand the importance of win-win business relationships, and that the Realtor® does not benefit if the client does not also benefit.

8. How will you get paid? How are your fees structured? May I have that in writing?

This is an issue that can also be related to agency. In many areas, the seller still customarily pays all Realtor® commissions through the listing broker. Sometimes, Realtors® will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of costs from any agent you contemplate employing.

9. How would you develop pricing and marketing strategies for our home? Will you commit to the marketing strategy in writing?

Pricing a home correctly is the single most important factor in determining if a home sells quickly, or at all. Although location and condition also effect the selling process, price is a primary factor. Access to all current property information is essential, and sometimes a pre-appraisal will help. Ask your agent where he or she obtained the information to create the market analysis, and whether your agent included For Sale By Owner homes, foreclosed homes, and bank-owned sales in that list.

10. What will you do and what will you not do to sell my home? Who determines where and when my home is marketed/ promoted? Who pays for your advertising?

Ask your real estate agent to present to you a clear marketing and advertising budget, and how those dollars will be spent. Ask if there are other forms of advertisement/ marketing media that are also available but not mentioned in the budget/plan, and who pays for those. Request samples of the various media that your agent proposes (such as Internet Web sites, print magazines, and local publications).