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If you’ve decided to sell your home, chances are you’re caught up in a host of
emotions. You may be looking forward to moving up to a new dream house or
facing the uncertainty of a major move across country. You may be reluctant to
leave your memories behind or eager to start new adventures. Whatever turbulent
feelings you’re experiencing right now, there are plenty of practical matters that
need your attention. Keep in mind the following considerations to help the whole
process go more smoothly.
Timing to Sell Your Home: Time Becomes Money
It’s a good idea to place your home on the market as far in advance as possible of
purchasing a new one. If you find a new home first and then try to sell your present
home, you may wind up with two mortgages. If this does happen, ask your real estate
agent or banker about a bridge loan to help you make the double payments. Lenders
use the same criteria for offering bridge loans as they use for mortgages. Should you
qualify for a bridge loan, beware of the expense; during the term of the loan you must
continue to pay both mortgages. Shop around for the best terms.
Keep in mind that when people move, sell and buy, there usually is a domino effect.
Closing and moving dates have to be coordinated, and the more firmly everyone
commits to a window of dates and sticks to them, the better for all involved.
Put all agreements about dates in writing, and protect yourself by negotiating
financial penalties for failure to comply.
Check Your Home's Curb Appeal
A home that’s visually appealing and in good condition will attract potential buyers
driving down the street. Use this checklist to view your property through an outsider’s
eyes.
Are the lawn and shrubs well maintained? Are there cracks in the foundation or walkways? Does the driveway need resurfacing? Are the gutters, chimney and walls in good condition? Do the window casings, shutters, siding or doors need painting? Are garbage and debris stored out of sight? Are lawn mowers and hoses properly stored? Is the garage door closed?
Check the Inside of Your Home
Strong curb appeal will lure potential buyers inside, where you have to live up to their
expectations. Fortunately, there are plenty of easy improvements you can make to
your home’s interior without spending a lot of money.
Cleaning is No. 1. Your windows, floors and bathroom tiles should sparkle.
Make sure you have clean heating and air conditioning filters.
Shampoo dirty carpets, clean tubs and showers, repair dripping
faucets and oil squeaky doors. Keep your home neat, clean and picked-up at all times.
It may not seem fair, but a peek in the oven may be the hallmark by which a buyer
judges how well you have kept up your home.
Remove unnecessary clutter from the garage, basement, attic, closets and straighten
stored items. Also remove any items that might make a statement that would be
offensive to others who may not share your same views, beliefs or sense of humor.
If your home is crowded with too much furniture, consider putting some things into
storage. If a room needs a fresh coat of paint, use a neutral off-white. Think, too,
about how your home smells. You may be used to the smell of a pet or cigarettes,
but such odors can be a strong turn-off to others.
Be certain to remove valuables such as jewelry and other items from view.
It might be wise to put these items in a safe deposit box before showing your home.
Finally, set a mood for the buyer. Make your house homey with live flowers and fresh
guest towels in the bathroom. Place scented potpourri around the house or, on the day
you’re expecting a potential buyer, pop a batch of frozen cinnamon rolls into the oven
for a welcoming aroma.
Remember, cosmetic changes do not have to be expensive. In fact, costly home
improvements do not necessarily offer a good return on your investment when you sell.
It’s attention to the basics—anything that says “this home has been carefully
maintained”—that will help you get the price you want.
Setting a Fair Price for Your Home
Naturally, you want to get top dollar for your home. But, at the same time, you don’t
want to scare off potential buyers with a price tag that’s too high. Setting an
artificially high price may cause your property to languish on the market for months.
Reducing your asking price later on may lead buyers to wonder if there is something
wrong with your home. Here are some of the factors to consider in pricing your home.
Your location Economic conditions Supply and demand in the local housing market Seasonal influences Local schools Average home prices in the neighborhood Your home's extras -- pool, fireplace, central air, etc.
To determine the value of your home, you probably will want the advice of a real estate agent or appraiser.
Ask an agent to prepare a market analysis for you, showing the recent selling prices of three
neighborhood properties comparable to your own. The agent can help you adjust for the unique
features of your own
property.
Tax Implications of the Sale of Your Home
Selling a home can have a major impact on your federal and state tax returns.
Check with your tax consultant on the factors that may affect taxes resulting
from the sale of your home. For example:
Whether you purchased the home or acquired it by gift or inheritance Whether you used your home partly for business or rental Costs associated with selling your home Home improvements or additions, which may help to offset capital gains The sale of your home. In certain cases you can exclude up to $250,000 in gain
(couples filing a joint return) on the sale of property that was your principle residence
for at least two years. Generally, you can use this exclusion every two years.
The Agent's Job
The agent works for you to help you sell your home in the least amount amount of
time for the most amount of money!
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