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How do you prepare a house to sell?
Doing whatever you can to put your house's
best face forward is very important if you
want to get close to your asking price or
sell as quickly as possible. Short of
spending a lot of money, here are several
ideas for making your home show better:
What
repairs should the seller make?
If you want to get top dollar for your
property, you probably need to make all
minor repairs and selected major repairs
before going on the market. Nearly all
purchase contracts include an inspection
clause, a buyer contingency that allows a
buyer to back out if numerous defects are
found or negotiate their repair.
The trick is not to overspend on pre-sale
repairs, especially if there are few houses
on the market but many buyers willing to buy
at almost any price. On the other hand,
making such repairs may be the only way to
sell your house in a down market.
Do sellers have to disclose the terms
of other offers?
Sellers are not legally obligated to
disclose the terms of other offers to
prospective buyers.
What are the standard contingencies?
Most purchase offers include two standard
contingencies: a financing contingency,
which makes the sale dependent on the
buyers' ability to obtain a loan commitment
from a lender, and an inspection
contingency, which allows buyers to have
professionals inspect the property to their
satisfaction.
The purchase contract must include the
seller's responsibilities, such things as
passing clear title, maintaining the
property in its present condition until
closing and making any agreed-upon repairs
to the property.
Whose obligation is it to disclose
pertinent information about a property?
In most states, it is the seller, but
obligations to disclose information about a
property vary.
Under the strictest laws, you and your
agent, if you have one, are required to
disclose all facts materially affecting the
value or desirability of the property that
are known or accessible only to you.
This might include: homeowners association
dues; whether or not work done on the house
meets local building codes and permits
requirements; the presence of any
neighborhood nuisances or noises which a
prospective buyer might not notice, such as
a dog that barks every night or poor TV
reception; any death within three years on
the property; and any restrictions on the
use of the property, such as zoning
ordinances or association rules.
It is wise to check your state's disclosure
rules prior to a home purchase.
How does someone sell a slow mover?
Even in a down market, real estate experts
say that price and condition are the two
most important factors in selling a home.
If you are selling in a slow market, your
first step would be to lower your price.
Also, go through the house and see if there
are cosmetic defects that you missed and can
be repaired.
Secondly, you need to make sure that the
home is getting the exposure it deserves
through open houses, broker open houses,
advertising, good signage, and listings on
the local multiple listing service (MLS) and
on the Internet.
Another option is to pull your house off the
market and wait for the market to improve.
Finally, if you who have no equity in the
house, and are forced to sell because of a
divorce or financial considerations, you
could discuss a short sale or a
deed-in-lieu-of- foreclosure with your
lender.
A short sale is when the seller finds a
buyer for a price that is below the mortgage
amount and negotiates the difference with
the lender.
In a deed-in-lieu-of-foreclosure situation,
the lender agrees to take the house back
without instituting foreclosure proceedings.
The latter are radical options. Your
simplest, and in many cases most effective,
option is to lower the price.
What are the two most important
factors when selling a home?
Price and condition are the two most
important factors in selling a home, even in
a down market. The first step is to price
your home correctly. Use comparative sales
information from your agent, or pay for a
professional appraiser (usually $200 to
$300), to objectively evaluate your home's
worth. Second, go through the house and
repair any obvious cosmetic defects that
could deter a buyer.
In a down market, you may have to consider
lowering your price and/or making a major
repair, such as replacing the roof, in order
to lure a buyer. Also, make sure that your
home is getting the exposure it deserves
through open houses, broker open houses,
advertising, good signage and a listing on
the local multiple listing service or online
listings provider.
If this isn't happening, take it up with
your agent or agent's broker. If you are
still not satisfied you are getting the
service you need, you may have to switch
agents.
Do I have to consider contingencies?
If you are a seller in a seller's market, in
which there is more demand than supply, you
probably won't have to entertain too many
contingencies. But if you are selling in a
buyer's market, when buyers are few, prepare
to be very flexible. Granting contingencies
also depends upon what kind of price you
want to get and on the condition of your
property, most experts agree. Remember,
contingencies are written into the contract
and are negotiable during the negotiation
phase only.
What is the best time to sell your
house?
There is no "best" time to sell per se.
Selling a house depends on supply, demand
and other economic factors. But the time of
year in which you choose to sell can make a
difference both in the amount of time it
takes to sell your home and in the ultimate
selling price.
Weather conditions are less of a
consideration in more temperate climates,
but most of the time, the real estate market
picks up as early as February, with the
strongest selling season usually lasting
through May and June.
With the onset of summer, the market slows.
July is often the slowest month for real
estate sales due to a strong spring market
putting possible upward pressure on interest
rates. Also, many prospective home buyers
and their agents take vacations during
mid-summer.
Following the summer slowdown, real estate
sales activity tends to pick up for a
second, although less vigorous, fall market,
which usually lasts into November when the
market slows again as buyers and sellers
turn their attention to the holidays.
If this makes you wonder if you should take
your home off the market for the holidays,
consider the advice of veteran agents: You
are always more likely to sell your house if
it is available to show to prospective
buyers continuously. |
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