Mortgage & Equity
16 Selling Your Home
This section will discuss:
What you'll need to do if you decide to sell your home yourself.
What you'll need to do if you decide to sell your home through a real estate agent.
Finally, a brief look at the flip side of the home ownership proposition: selling your home.
First, you'll need to decide whether to sell your home yourself or hire a real estate agent. If you decide to go it alone, count on it being equivalent to a part-time job.
If you use an agent, you'll save time but spend money on the agent's commission, typically 7 percent of the sale price.
If You Sell Your Home Yourself, You'll Need to:
- Set a price - Don't trust yourself to be objective on this. Find out what comparable homes in your neighborhood sold for recently (inquire at your local register of deeds or city assessor). Or hire an appraiser to research your home's market value.
- Get a lawyer - The sooner the better. You'll need legal advice all through the process -- on purchase offers, purchase-and-sell agreements and closing matters.
- Prepare advertising - Write up an ad for your local newspapers. You may want to post ads on bulletin boards in neighborhood grocery stores and so on.
- Prepare a fact sheet to hand out to prospective buyers - This should include number of bedrooms and bathrooms, types of appliances, square footage, cost of utilities and taxes, price and so on. And, of course, your name, address and phone number.
- Have on hand financial information for prospective buyers - Get current information on mortgage rates and terms so you can handle prospects' questions on these matters. Also, get interest-rate tables so they can figure out what their monthly payments would be. Pull together tax, utility and major repair bills.
- Show the house to all interested parties - Be prepared to show it to the same party two or three or even more times. It's a big decision for buyers.
- Keep your cool when you hear negative comments - As people look at your home, they may say things you don't like to hear. Don't take it personally. People do have different tastes and preferences.
If You Use an Agent:
- Ask friends and associates for recommendations on agents - Interview a few before you decide on one. Check references.
- Be sure you feel comfortable with the agent you hire - You're going to be seeing a lot of this person these next weeks or months.
- Be sure you completely understand the listing agreement - This is your contract with the agent.
- Work with your agent to set a price - Again, look at what houses in your neighborhood are selling for. And it's still a good idea to get an outside appraisal. Neither you nor your agent (who also has a stake in how much your house sells for) can be truly objective.
- Be involved in the process to some degree - Even though your agent can show the house for you, you may still want to play an active role.
Whether You Go It Alone or Use an Agent, You'll Need To:
- Inspect your house from the outside - Look at it through a buyer's eyes. How good does it look from the street and close up? How's the siding, the trim, the roof, the foundation, the yard?
- Inspect the interior - Be sure the house is clean -- the floors, carpets, windows, draperies and so on. Unclutter the closets.
- Should you do any painting? - If a room looks dingy, a fresh coat of paint may be in order. Experts contradict themselves on this point, however. While they advise making your house look great, they also advise buyers to be suspicious of a fresh paint job because it may be hiding water stains, cracks or other flaws. Use your best judgment.
- Check windows and doors - Be sure everything is opening and closing properly.
- Fix any leaky faucets or noisy toilets.
- Draw attention to your home's best features - For instance, light a fire in the fireplace on a cool day.
- Fill the house with the smell of baking cookies or bread - It's hokey, but effective.
- Major fix-ups - Before you do any of these, do some research to be sure it will increase the value of your house enough to cover the costs of improvements.
