I have been contacted by so many people planning to sell their home in 2010 that I thought a brief overview of the home selling process would be a good way to start the new year.
Steps Prior to Deciding to List Your Home for Sale
Especially if you don't have to make a move and are trying to decide whether or not to sell, steps prior to making your decision include getting an estimate of what your home might sell for (CMA…Comparative Market Analysis) in today's market along with estimated selling expenses and mortgage payoff to come up with estimated net proceeds from your sale (Estimated Net Sheet). If you qualify for the $6,500 tax credit for repeat buyers don't factor it into funds available at the time of your sale and purchase, it may take months to get it…but factor it in for future expenses, knowing it will be coming within the next year.
Then use your estimated net proceeds along with other funds you have available for your purchase to talk to a lender and get pre-qualified for the purchase of your next home. Next step is to check homes available for sale to see if it appears you can find what you are looking for in your preferred location and price range. Keep in mind that most people sell first, so you don't really want to find the house of your dreams right away…the point here is to see if you will have viable purchase options if you sell your home. If you have special criteria for your new purchase creating limited choices and you have the resources to buy first and risk owning two homes, you may decide to buy first and sell later. If these preliminary steps make sense, it is time to move on to the steps below.
Select an Agent or FSBO
Decide if you’re going to be represented by a Realtor (and select a Realtor to represent you) or do ‘For Sale By Owner’ (FSBO). There are many legal issues involved in selling a home, so if you decide to sell it yourself make sure you understand all that is legally required for selling in your community.
Fixups
Spend time preparing your home to make a good impression. In any market, a home that is in good condition and priced well will sell. It’s time to fix those things you have learned to live with, often things you were going to fix when you bought but never got around to doing. Consider both inside and outside items, including: paint, carpets and flooring, kitchen and baths, windows, mechanicals (furnace, A/C, electrical, plumbing, etc), doors, roof, landscaping.
City Inspection
Some metro area cities require an inspection prior to selling your home. Check City Inspections to see if your Twin Cities jurisdiction has any inspection requirements prior to selling a property.
Staging
Home staging has become more important than ever in today's market… it helps buyers more easily picture themselves living in your home. Staging involves getting your home in top shape, removing clutter and excess personal items, and using decor to make your home look spacious and inviting.
Pricing and Listing Your Home
In deciding on a price for your home you compare your home to homes currently for sale, those recently sold, as well as those that did not sell in your neighborhood. Keep in mind that to be competitive your home should look better and be priced better than others currently offered for sale. Listing your home on the MLS (Multiple Listing Service) is vitally important to get the exposure you need in today’s marketplace.
Showing Your Home
This may be one of the most difficult stages of the whole selling process. It’s hard work getting your home into tip-top showing condition, but it can just a hard keeping it that way while you continue to live in it! You should be ready for showings at any time… it only takes one person to buy, and you never know when that one person is going to come through your door.
Negotiating a Purchase Agreement
Negotiations include such things as price, financing, closing date, possession, and personal property inclusions. Most purchase agreements also include a private inspection paid for by the buyer shortly after coming to an agreement. After the inspection your potential buyer has the option of proceeding as is, asking for items to be corrected or canceling the transaction.
Preparing for Closing
Many steps take place from purchase agreement to closing, including: the property is appraised, all conditions for final loan approval must be met, and abstract and title work are completed. While these steps are taking place, you will be planning and preparing your move in preparation for closing, including final payment and transfer of utilities and authorization for payoff of any existing mortgages and liens on your property. Your buyers will do a final walk-through of your home just before closing, then papers are signed to transfer title at the closing and turn over the keys to the new owner!
Sharlene Hensrud, RE/MAX Results - Email – HomesMSP.com
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