7 Steps to Successfully Sell Your Home

1.  Select Your Agent

Interview several agents to find the person best suited to represent your interests. Confirm you both share the same vision and expectations before signing the listing agreement.

2. The Right Price

Your property attracts the most interest from both buyers and other agents when it is first listed on the market. An unreasonable price will quickly dampen interest. Set the right price when you list your home for sale!

3.  The Right Mind Set

Look at your property ‘through a buyer’s eye’. Distancing yourself emotionally from your home will make you a better negotiator and lead to a more successful transaction.

4.  Disclose

When you sell your home, California law requires you to disclose all known facts about your property that could affect its desirability and value to the buyer. Be honest. Lawsuits have been filed by buyers claiming sellers did not fully disclose defects or problems they knew existed with their home.

5.  Curb Appeal

A buyer’s first impression is formed by the curb appeal of your home. Make sure they want to come inside your house, not just drive by.

6.  Preparing Your Home

You must de-clutter, de-personalize, and clean your house, both inside and out. Make it a showplace for prospective buyers.

7.  Repairs

Take care of needed repairs in advance. It is often easier and cheaper than negotiating them later with an emotional buyer.

How to Prepare for a Successful Open House

Open houses provide immediate feedback on how the home shows and how buyers will react to it. Follow this 14-point check list and your home should be ready for a successful open house!

1. Mow the lawn and trim bushes away from the house and entry.
2. Wash the outside of the house.
3. Make sure front door is inviting. Paint if needed.
4. De-clutter by eliminating half of your belongings, knickknacks, and unnecessary furniture.
5. De-personalize by removing collections, photos, religious, and political material.
6. Clean every surface from ceilings to baseboards, including windows, mirrors and floors.
7.  Make sure your kitchen and bathrooms sparkle.
8. Clear off counters: Remove body care products from bathroom counters. Eliminate unnecessary items and appliances off the kitchen counters.
9. Remove magnets and pictures from the refrigerator
10. Put out clean towels in the bathrooms.
11. Organize closets and make sure they don’t look to ‘too full’.
12. Make the beds.
13. Put clothes and toys away.
14. Safely tuck away and secure valuables and prescription drugs.

How to Evaluate the Buyer’s Offer

If your home is listed at the ideal price, it will generate interest to receive offer(s) within a timely manner. The initial price of the home will determine who’s in power in the negotiations. A well priced home will likely have multiple offers where the seller has the control over the terms in the contract. An over-priced property will linger on the market without any offers, later, seller may have to respond to ‘low ball’ offers where the buyer is in control. As a seller, price your home correctly when it goes on the market to be in a better position while negotiating!

Price is important but other terms of the contract will help decide the offer’s strength:

Size of down payment

A large down payment greatly affects the offer. A financed offer with a small down payment is more likely to fall apart.

Buyer’s financial capacity

Pre-approval is a must with a financed offer. Make sure buyer provides proof of funds for down payment and closing costs. ‘Cash is king’ in real estate. Cash offers excludes possible financing issues and usually close faster.

Escrow period

A longer escrow period means more time for problems to occur.

Flexible buyer

A buyer who can tailor seller’s needs and provide a rent back, or time for seller to purchase their next home if needed.

Contingencies and their duration

Contingencies allows the buyer to get out of the contract without penalty.

Financing contingency:  The buyer can back out of the contract if the home does not appraise, buyer cannot obtain a loan due to a valid reason, or interest rates increase dramatically.

Property contingency:  If the buyer finds the home does not suit their needs, new inspection findings, or buyer has concerns regarding the home, buyer can withdraw their offer without any loss.

Other contingencies:  Other common contingencies include buyer submitting offer contingent upon selling their previous home.

As a seller, make sure your agent presents all offers and evaluate them with you to ensure you make the best decision for a successful sale of your home!

What You Need to Know About Repairs Before You Sell Your Home

To help the sellers get the best possible price, to maximize their return on investment (ROI), and to effectively market their property, the listing agent should assist the seller decide which repairs should be made on their property. Repairs are often less expensive and easier to do before listing your home then negotiating them later with an emotional buyer.

Besides recommended repairs, your agent should educate you on what a typical buyer of that property would accept, and what the current market will bear. Take a look at my article Repairs and Improvements Before you Sell for repairs in anticipation of the home inspection report and repairs with best ROI.

Buyers may believe sellers are required to take care of lender requested repairs, but California law generally requires sellers to provide only two point-of-sale items: smoke and carbon monoxide detectors plus seismic straps for the water heater before transferring title.

Seller is legally required to disclose not to fix all known material facts that could affect the property’s desirability and value.

To prevent buyer from cancelling the purchase agreement due to property condition, seller may agree to make buyer requested repairs, or credit the buyer at the close of escrow.

Seller repairs have to comply with any applicable legal requirements. Projects including materials, labor, and other costs for $600 or more must be performed by a licensed, bonded and insured contractor. To find out if a contractor is licensed and bonded, visit Contractors State License Board in California. Before hiring, ask the contractor for copy.

Smart Repairs and Improvements Before You Sell

For best return on investments (ROI), avoid hidden improvements like updating electrical and plumbing systems. Major repairs such as adding a room, deck, or a complete remodeling generally have less than 100% ROI. Minor kitchen and bathroom remodeling will come close to having 100% ROI. Room additions with best return would be adding a third bedroom or possibly a second bathroom.

Minor Repairs and Improvements with Great Return:

• Replacing all burned out light bulbs.
• A fresh coat of paint.
• Plant annuals bordering your entryway to color up your exterior and improve first impressions.
• Trim hedges and bushes away from the house and entry way.
• Clean or replace carpets.

A clean home inspection report increases the home’s desirability.  Focus on the following relatively inexpensive repairs in anticipation of the home inspector’s report:

• Replace burned out light bulbs.
• Repair faulty switches.
• Make sure water is draining properly in all sinks, showers and bathtubs.
• Repair leaky sinks and toilets.
• Ensure locks, doors, and drawers work properly.
• Strap water heater with seismic straps.
• Install smoke alarms in every bedroom and carbon monoxide detectors on all levels.
• Clean leaves out of roof gutters.
• Direct water away from the house’s foundation.
• Paint and patch where necessary.

Remember, it is often easier and less expensive to fix necessary repairs in advance, than negotiating them later with an emotional buyer.