Here are some tips if you are thinking of selling by owner.
Step 1: Getting the Home Show Ready
Your Home's first impression is always important--you know what they say--"You Never Get a Second Chance to Make a 1st Impression" --the same goes for your home. Getting your home into top showing condition is one of the most important things you need to do before starting to market your home.
The first thing to consider in getting your home ready to sell is the curb appeal. Make sure the home is visible so buyers will have a favorable impression when they drive by the home. The next step is crucial before starting to show your home: Make your home bright, inviting, uncluttered, and SPOTLESS!
Pack up the clutter and items seldom used. Pack up all family pictures, personal items etc. (Your moving anyway right?) Prospective buyers need to imagine their personal items in the home NOT YOURS! Paint and clean carpets as needed, then CLEAN-CLEAN-CLEAN paying special especially attention to the kitchens and the bathrooms.
Real Estate Article: Getting Your Home Ready to Sell
"Get ready to move - start packing"
Here are some tips for you while getting your home ready to sell. After completing these, we will be ahead of the game
Inside:
*Clear all unnecessary object from furniture throughout the house.
*Clear all unnecessary objects from kitchen countertops. Clear the front of the refrigerator i.e.: messages, pictures, etc.
*In the bathroom, remove all but necessary items from countertops, tubs, shower stalls, and commode tops. Keep only needed items. Bathrooms need to be staged too--invest in some luxurious well coordinated towels.
*Rearrange or remove some furniture. Less is more. Many times we have too much furniture in a room. This is great for our own living space, but when it comes to selling, we need to thin out much as possible to make rooms appear larger.
*Take down, or rearrange certain pictures or objects on walls. Patch and paint if necessary.
*Check heating, air conditioning, and other systems of the house. If you're unsure of their condition, offer a home warranty on your house.
*Don't worry too much about the garage now, save that job for later. in the process when everything else has been finished.
*Leave on lights in dark areas when you aren't going to be home. When you know there is going to be a showing, turn on all lights and lamps
*Have soft music playing for all showings.
*Go thru the house room by room with a "fine tooth comb" and:
a) Paint/patch/touch up any rooms that require it.
b) Clean carpets or drapes that require it.
c) Clean windows--inside and out including sills and doors.
d) Rearrange and thin out all closets.
e) Clean-Clean-CLEAN!!
Outside:
Go around the perimeter of the house and move all garbage cans to discreet location, remove any/all debris etc.
- Check gutters and/or roof. Make sure they are clean of debris, removing leaves from gutters. If wood condition is questionable, have a professional roofing inspector check it out.
- Look at all plants...prune bushes and trees. Keep plants from blocking windows. You can't sell a house if you can't see it.
- Weed all planting areas. Keep lawn freshly cut, fertilized, and watered. Remove any dead plants or shrubs.
- Clear patios and decks of all small items, such as small unused planters, flower pots, charcoal, barbecues, toys, etc.
- Check the exterior paint condition--especially the front door and trim. Curb appeal and the lack thereof will make or break a sale!
Try to look at your house "through the buyer's eyes" as though you've never seen before. Any time, labor, or money spent on these items bring you back much more money in return, and hopefully a faster sale.
Step 2: Setting a Price
Setting the right price for your home is CRITICAL. Despite what some new national web sites are trying to make the public think, pricing a home to sell is an art, not a science. These websites tell you that you can instantly find out your home's value. The newest one has been known to be $10,000 to $80,000 above or below the actual home value....and some times worse. In some areas, it has no information at all. Why would anyone want to depend on these sites for pricing their most expensive possession, their home?
There are other sites that will tell you to compare your home to other homes on the market and then keep checking on them to see if the price changes. Be careful, those are homes that haven't sold!
There is even one site that encourages you, a FSBO (For Sale By Owner) to take advantage of real estate professionals and have them come out and give you a free Market Analysis. Would you want someone to use your professional experience and not pay you? That's what this site is encouraging. More importantly, if you just pick up the phone and call someone, you don't have a clue about how much experience they've had in pricing homes to sell!
So how can you determine the right listing price to ask for your home? You may want to hire a local appraiser to complete a Fee Appraisal. They will check the recent sales to find a minimum of 3 homes similar and close to yours that have sold within the last 6 months. They will then compare your home to those homes and make necessary adjustments. There are also real estate professionals who know how to use the same techniques that appraisers use. But REMEMBER-- not all real estate professionals understand how to accurately value a home. Those who do know, will usually do a Market Analysis on a home that they have a chance of listing (Check Out "How Much is My Home Worth" I, myself, will prepare--FREE of Charge--a market value range of your property for you and meet with you in person.
Pricing of Your Home
When pricing your home for sale, proper initial pricing is very important. I will show you a Right Price Analysis on your home and we will talk about the current real estate market conditions. But you may not agree...
You may be thinking :
BUT I need to leave plenty of room for negotiation. Although low offers do occur, prospective buyers are usually just trying to find your bottom line. All you need to do is counter-offer. Tight negotiation.
BUT I can always come down. Often when a seller starts out high, statistic show they end up selling the home at a much lower price than they would have sold it for if it had been priced right initially. And it takes MUCH longer!
BUT we've been getting showings. When buyers and their agents look at listings that are priced too high, they compare it against homes that are priced right and usually purchase the other home. Actually, there are always homes on the market that have been listed too high and FSBOs that have priced their home too high---this makes selling properly priced homes EASIER to sell!
BUT what about all of our improvements. I'm sure you've seen all the articles on how much various home improvements add to the value of your home. That's at best--and they depreciate over time! Adding the cost of all the improvements without adjusting for depreciation, your home can often take the price way over market value for your area/neighborhood. Even if you get your price, the home might not appraise if the sales in the area do not support the value.
BUT I'm negotiable; they can always make an offer. Buyers know everything is negotiable, but will only look in the price range where they are comfortable and have been pre-qualified for by their lender. If the home price is out of line, the buyers will tend to think the sellers are unrealistic; Why Bother? Although they will look a little higher if nothing is available, there are usually a lot of homes on the market at any given time. In general, the higher the price, the fewer potential buyers there are.
BUT can't we try it for a few weeks? Sure, but you might miss potential prospects. Real Estate Professionals and buyers will notice your home and think; Boy, that one's overpriced they must be crazy!They'll keep that opinion for the life of the listing - even after you lower the price. Those few weeks can be fatal! They can be make or break.
Step 3: Finding Your Target Market
Before you can start the marketing on your home, you need to figure out who the best buyer for your home would be.
The price range of your home or the size of the home may tell you who your best buyer would be. For example:
Lower price homes Target: First time buyers
Higher priced home Target: Move-up buyers
Larger homes Target: Move-up buyers
Smaller homes Target: First time buyers or empty nest buyers
Condos
Economic conditions in your area can help you decide if your target might also be a relocating buyer.
Physical characteristics of the home might also help you determine the target buyer.
This should give you some idea of figuring out which features of your home can be converted into benefits and for which group of buyers. You'll use that information as you work on your marketing plan.
Step 4: Developing a Marketing Plan
Once you have determined your target market, it's time to develop your marketing plan. You know who your target market is and you need to determine how to find those potential buyers--ASAP.
The internet is now THE place where 90% buyers start their home search, so getting the information of your home on the internet is of utmost importance. Include many pictures, and if at all possible, a virtual tour or slide show of the home--be careful "give away the farm" or use unflattering pictures(we still want them to come out in person).
Buyers often drive around the areas they want to live in to see if any new homes are on the market, so you need to be sure to have a visible sign in your yard. You may even want to have a flyer on the home in a "brochure box" on or near the sign.
Newspaper or print ads can be costly, but FSBOs cannot afford to miss any avenue of marketing available to them.
If you decide to hold an open house, be very careful. Make sure there is more than one adult in the home and have the children in the family somewhere else. No amount of money from your home sale is worth risking your personal safety. Be careful.
Step 5: Disclosures
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The days of "buyers beware" are long gone. To avoid problems later, you should disclose everything you know about your home. Here are some of the disclosures you need to think about: Environmental Hazards: Lead based paint(If your home was built before 1978, Federal laws state that you need to give your buyers a booklet about lead based paint and disclose what you know about the presence of lead based paint in the home and about any inspections that have been done for the presence of lead based paint. Mold, Asbestos, Radon, or other chemical wastes, Abandoned oil wells on property, as well as any other environmental issues you might know about. Defects in the Home: This would include the roof (and how old it is), the structure, the electrical and plumbing systems, the heating and cooling systems and other defects you may be aware of. Zoning and Survey Issues: Is the zoning proper for the use of the property. Are there any problems that might show up on a survey? (encroachments, easements, etc.) Flood History Has the home ever been flooded either by natural flooding, plumbing leaks or sewer back ups? This is not a comprehensive list of things you should disclose to a potential buyer, but rather a list to get you started thinking about things you know about the home.
Step 6 of Selling a Home: Fielding Calls From Prospective Buyers Once you have started marketing your home, you should start getting calls from prospective buyers. Handling these calls properly could be the difference in whether or not the prospect will come out to look at your home. When buyer prospects are calling off of ads or signs, they are seeking to eliminate homes that don't meet their criteria. That's why it's important to answer their questions, ask them questions.....but to never try to "sell" them the home. That will send them "running"! Over the years, I've discovered that buyers who are afraid they won't qualify for a loan will call a By Owner Seller rather than call a real estate company. You'll know it's "one of them" when they ask if you will do financing. Just a word of warning.
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Condition Checklist
Curb Appeal | Bedrooms | ||
__ | Neatly mowed and edged Lawn | __ | Make all beds |
__ | Shrubs trimmed | __ | Clean out closets |
__ | Can you see the house? | __ | Excess furniture removed |
__ | Is your front door area clean & freshly painted? | __ | Children's play areas - store extra toys |
__ | Condition of driveway(patch &/or sealcoat as needed) | __ | Keep laundry chores up daily |
__ | Get rid of oil stains on driveway | __ | Bedspreads - use basic colors & patterns-luxury linens in master bedroom |
__ | Is there any peeling paint? | __ | General decor - remove distracting posters, etc. |
Other Exterior | Kitchen | ||
__ | Torn screens replaced/rescreened | __ | Sink free of stains |
__ | Exterior lights clean + operating | __ | Scrub and wax floors |
__ | Do all windows work? | __ | No dripping faucets |
__ | Is all fencing secured? | __ | Remove personal papers |
__ | Replace dead shrubs | __ | Refrigerator/freezer cleaned + defrosted |
__ | Prune dead branches from trees | __ | Pantry neatly arranged |
__ | Clean out gutters, paint if needed | __ | Wash walls and cabinets |
__ | Windows washed inside & out | __ | Appliances in working order |
__ | Any cracked window panes replaced | __ | Magnets, etc. off refrigerator |
__ | Freshen up mulch in landscaping areas | __ | Clear away extra appliances, etc |
__ | Extra vehicles - remove from curb view | __ | Keep trash taken out and area deodorized |
__ | Pet areas - clean up, re-sod spots as needed | __ | Cabinets- remove & pack extra dishes, etc. |
Entry | Laundry Area | ||
__ | Doorbell operating | __ | Keep it clean |
__ | Lights operating | __ | Arrange supplies to suggest ease of use |
General Interior | Decorative Ideas | ||
__ | Hinges oiled | __ | Decorate patio area |
__ | Replace filters | __ | Put new logs in fireplace |
__ | Paint or touch up | __ | Open book on nightstand |
__ | Windows washed | __ | Put out special towels |
__ | Water stains repaired + covered | __ | Re-arrange furniture to show well |
__ | Curtains washed, ironed etc. | __ | Set dining room table w/ flowers & linens |
__ | Carpets cleaned or replaced | __ | Add scented soaps or candles in bathrooms |
__ | Do all light switches work? Clean all light fixtures and lamps. Replace all bulbs w/the max wattage. | __ | Arrange decorative pillows or shams on bed |
__ | Wallpaper repaired or removed | __ | Re-arrange pictures too highlight special areas |
__ | Repair ceiling and wall cracks | __ | Large plant, wreath or new doormat at entrance. |
__ | Hardwood floors - clean & shine | __ | Keep decorative objects on furniture restricted to groups of 1,3, or 5 items |
__ | Woodwork painted or touched up | __ | Plug in neutral air fresheners |
__ | Remove extra or unhealthy plants |
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Living Areas | Bathrooms | ||
__ | Clean fireplace | __ | Floors cleaned |
__ | Excess hobby supplies packed up | __ | Guest towels out |
__ | Arrange games in play areas | __ | Missing tiles replaced |
__ | Neatly display a project in work or hobby area | __ | Leaky faucets repaired |
__ | Remove papers from coffee tables & end tables | __ | Grouting stains removed |
__ | Take down decorative items that are too personalized | __ | Sink, tub and shower stains removed |
Garage | __ | Re-grout as needed | |
__ | Straighten up tools | __ | New shower curtain |
__ | Make room for cars | __ | All fixtures operating |
__ | Sweep floor, clean any grease spots |
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Before You Leave for a Showing(or leave for the day) | |||
__ | Make beds | __ | Dishes put away |
__ | Open drapes and blinds | __ | Double check entry way |
__ | Turn on a soft FM station | __ | Empty wastebaskets + garbage |
__ | Countertops wiped down | __ | Final check every room |
__ | Turn on lights in dark areas | __ | Bathrooms cleaned +straightened up |
__ | Turn off TVs and loud stereos | __ | If possible, get pets out of house |
__ | Make sure rugs are clean and straight | __ | Leave feature sheets out. |
__ | Do a "once over"" cleaning - vacuum, sweep & dust | ||
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Tamara Schuster
3rd Generation Broker
Prudential Elite Naperville
www.BrokerTamara.com
630.886.9596
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Berkshire Hathaway Elite
Certified Relocation Specialist
License Number