SELLERS

WHAT YOU NEED TO KNOW BEFORE SELLING YOUR HOME:

There are so many details that you have to take into account before listing your home for sale.  Whether you are planning on selling it yourself, listing with a limited service or full service broker, you will have to prepare yourself for a long, very emotional ride.  Here are some tips that I have found useful over the years of working with numerous clients and their unique situations:

THE BASICS:

1) Outside Appearance:
-Your front door is the first thing buyers will see, so be sure it is fresh and clean and fully functional.
-Make sure that your lawn and landscaped areas are well manicured.
-Be sure that your yard is free of refuse and leaves.
2) Safety:
-During winter, make certain to remove all ice and snow on walkways and steps.
-Keep all indoor and outdoor areas, especially stairways, clear and uncluttered.
3) Lighting:
-Open drapes and curtains as much as possible to let in natural light.
-Make sure that the windows are clean so your home appears as bright and cheery as possible.
-Turn on all of your outside and inside lights when showing your home at night so as to make your buyer feel welcome.
4) Fixtures:
-Fix any leaky faucets. Dripping water discolors sinks and suggests faulty or worn-out plumbing.
5) Important Areas:
-Make sure doors, windows, and cabinets don't stick or have loose knobs. By fixing these minor flaws, you can increase your home's value.
-Closets can be an important selling point. Make them look bigger by organizing them neatly to display that your home has ample closet space. If you have too much clutter, box your belongings up and move them to a storage area.
6) Rooms:
-In general, try to replace faded walls and worn woodwork with new wallpaper and fresh paint. It will increase the appeal and value of your home.
-Bathrooms can sell homes. Check and repair any damaged or discolored caulking around the bathtubs and showers, and be sure that the towels and area rugs are bright and clean.
-Display the full value of your attic, basement, and other utility space (including crawl spaces) by removing all unnecessary articles and debris, and repainting if necessary.
-Bedrooms should appear bright and cheerful. Remove all excess furniture, and be sure that bedspreads and curtains are freshly laundered and attractive.
7) Atmosphere:
-Don't have too many visitors or family members present during a home inspection, as this can make the potential buyer feel uncomfortable and want to hurry through your house to get away from the crowd.
-Turn off the stereo and television so the potential buyer and showing agent can discuss your home in a relaxed environment, free of distractions.
-Keep pets from disturbing potential buyers by restricting them to the backyard or an alternative location, such as a friend's home, while conducting an open house or private showing.
-Take down and store your family portraits.  You want a prospective buyer to visualize your home as their new home.  It is tough to do if they do not become emotionally connected to the home.
-You have your own unique taste in decor and artwork that not everyone will share.  It may be a good idea to also take down and store these items as well.
8) Approach:
-Be courteous and friendly, but don't insist on conversing with the potential buyer.
-Never apologize for the appearance of your home. Should any objections or derogatory comments be offered, let a trained real estate agent answer them.
-Let the showing agent emphasize the virtues of your home to potential buyers. If you can help with any questions, the salesperson will call you.
-Avoid trying to sell potential buyers furniture or furnishings which you are not taking with you before they have purchased the home. This can potentially lose the sale.
9) Negotiations:
-Let your real estate agent discuss the selling price, terms, possessions and other factors with the customer. I have been trained and am experienced. Let me bring your negotiations to a satisfactory conclusion.
10) Procedure:
-Your home should be shown to prospective buyers only by appointment through your agent or their office. Don't ever let a prospective buyer come through your home without getting in contact with your agent first!
-Cooperation on your part will be sincerely appreciated and will help you sell your home more quickly.

THE REALITY OF TODAY'S MARKET:

1) Don't Expect Big Profits
-You shouldn't go into selling your home right now expecting to get a huge return on your investment (unless you purchased your home 7 or more years ago).  Most people are still under the impression that prices have not fallen as far as they have and are unrealistic of what their home is worth.  Pricing your home in line with properties that are currently on the market (your direct competition) is the best way to determine what your home can sell for.  Don't go by what your tax assessment is or by what your neighbor sold their home for.
2) Get Real About Your Property
-The bubble didn't just burst...it evaporated!  Forget about the price you could have gotten for your home at the peak.  With slow economic growth and high unemployment rates, housing prices will go down for the rest of 2010, remain stagnant for 2011 and should take about 9 years to regain the 30% losses you've sustained since 2006.
3) You Will Get Your Equity Out of Buying Another Home
-You may not like the fact that you aren't getting what you hoped for on your current home, but if you are buying a new home, you will recoup some of the money you have lost on your next home purchase.  Right now you can buy a much larger home for about the same cost as your current residence...or buy smaller and really find a huge savings and a ton of equity.

THE BIGGEST MISTAKES THAT YOU CAN MAKE:

Mistake #1: Putting your home on the market before it is ready. Most times this happens because the seller gets impatient or procrastinates and has pushed themselves up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything...so get the work done before marketing the property.
Mistake #2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it's an anomoly, instead of a nice addition to the community. Generally the cost of overdoing improvements will NEVER be recovered.
Mistake #3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the "asking" price, but they don't control the "sales" price. The market does. A home is only worth what buyers are willing to pay for it!
Mistake #4: Hiring an agent based on non-business factors. Make sure you are hiring a professional with a proven track record. It might be nice to hand over your largest asset to your nephew who just got his real estate license, but make sure (at least) that he is being mentored by an experienced agent.
Mistake #5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity, and priced as a commodity. It doesn't matter what you "want", only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of seven years.
Mistake #6: Trying to cover up problems, or not disclosing them. Let potential buyers know upfront what is wrong and you can (hopefully) avoid lengthy lawsuits later.
Mistake #7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later...as it will cost you MUCH more in the long run. If the local market dictates selling your home first, then buying second, do it in that order (or vice versa).

TO F.S.B.O (FOR SALE BY OWNER) OR NOT TO F.S.B.O: THAT IS THE QUESTION

1) FSBO's can't list their home in the Multiple Listing Service (MLS). FSBO's aren't permitted to put their home into MLS because these industry membership organizations are open only to licensed real estate brokers and agents. FSBO's are also locked out of many home search engines and web sites, including FirstWeber.com and BrendonKrull.com. Sure, a determined FSBO can put a "for sale" sign in his or her front yard and run a tiny advertisement in the local paper, but the home won't receive as much exposure as it would through the MLS.
2) Agents sometimes avoid showing FSBO homes. In a typical home sale, the buyer's agent will be compensated for his or her services, unless the buyer has signed a buyer agency agreement that specifically provides for such compensation (and usually comes from the home seller). Most agents find FSBO transactions to be too much work as opposed to a typical transaction with a property that is already listed with a broker. That means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.
3) FSBO's usually overprice their home. Like most homeowners, most FSBO's honestly believe their own home is worth more than comparable homes in the same neighborhood. Usually, they're wrong. A real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home's buyer appeal. Overpricing a for sale home is a sure way to deter potential buyers because they will never step foot through the door!
4) Buyers will feel intimidated. Potential buyers will spend less time in a FSBO home if the owner is present during the showing (this goes for certain limited service listings as well), and they'll be shy about discussing the pros and cons with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer they know will be negotiated directly with the seller.
5) Buyers will negotiate a lower price immediately. Potential buyers know that the FSBO seller is not paying any commission to a listing agent and can cut the price immediately by 4-7 percent along with the typical 10 percent reduction that most buyers take to start their negotiation, that leads to an offer that is almost 20 percent under the listing price. Buyers know about issue #3 (described above) and really hold most of the cards when coming into a negotiation strategy.
6) FSBO's are more likely to stumble into legal trouble. Real estate transactions are fraught with potential liablility for unwary sellers, particularly in Wisconsin because of the extensive disclosure requirements. A FSBO who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.


If you need help selling your home please give me a call.  Every situation is different and needs a customized approach.  I always work with my clients to find the best possible end result:  Getting the most money and selling in the least amount of time.