171 days of quarantine.
Some time ago, a friend sent me this email when we were selling our Mill circle home. Now Cristi is selling her home and might consider these tips.
7 Helpful Tips on Selling Your Home
:
a. Pricing It Right
b. Light It Up
c. Conceal the Critters
d. Take the Home Out of Your House
.
e. The Kitchen Comes First
f. Always Be Ready To Show
g. The First Impression Is the Only Impression
2. know your contracts:
a. unrepresented buyer disclosures
b. Buyer broker agreement
c. For Sale by Owner agreement & Agency Disclosures
d. Real Estate Purchase Contract LBPD
e. Addendum to REPC
f. Lead base paint addendum disclosure
g. Transaction document Receipt.
Here are our top 5 tips for getting the best price for your home:
1 Pricing it right
Find out what your home is worth, then shave 10 percent off the price. You’ll be stampeded by buyers with multiple bids — even in the worst markets — and they’ll bid up the price over what it’s worth. It takes real courage and most sellers just don’t want to risk it, but it’s the single best strategy to sell a home in today’s market.
2 Light it up
Maximize the light in your home. After location, good light is the one thing that every buyer says that they want in a home. Open up the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do to make your house bright and cheery – it will make it more sellable.
3 Conceal the critters
You might think a cuddly dog would warm the hearts of potential buyers, but you’d be wrong. Not everybody is a dog or cat lover. Buyers don’t want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning an open house, send the critters to a pet hotel for the day.
4 Take the home out of your house
One of the most important things to do when selling your house is to de- personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.
5 The kitchen comes first
You’re not actually selling your house, you’re selling your kitchen – that’s how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated. The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.
6 Always be ready to show
Your house needs to be "show-ready" at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.
The first impression is the only impression
No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel warm, welcome and safe as they approach the house. Spruce up your home’s exterior with inexpensive shrubs and brightly colored flowers. You can typically get a 100-percent return on the money you put into your home’s curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.
Contracts are very important and can be confusing. Many people enlist a real estate agent just for this aspect of a transaction.
The very basics that you should know when selling your home on your own is to use the State approved forms where you reside. When doing this you take out any of the guesswork involved with contracts. State approved forms are made to be fair to both parties in a transaction. They have been reviewed by top lawyers and industry experts to make sure that key points are covered in writing to avoid any legal issues or harm to anyone involved in the transaction. Many home buying companies will use their own short form purchase contract. This should be a huge red flag. There is no reason that they shouldn’t use state approved forms. If they aren’t, it’s likely that the contract is either one sided (in their favor) or that they are leaving key components out of the contract which could leave you wide open for liability.
Here is a list of the contracts, along with a brief description, that should be used when selling your home on your own.
The first thing you need to do in any real estate transaction is establish Agency (or lack of Agency). If the buyer of your home is buying personally (in their own personal name) they would need to use a form called:
1. Unrepresented Buyer Disclosure– This document clarifies that they are representing themselves and protects you in stating that you are also not representing them in any way as well. This protects both people in the transaction. Additionally if the buyer is a real estate agent they need to disclose that on an addendum in the purchase contract. If the buyer is not buying the home personally, their representative needs to be a real estate agent so they must have a...
2. Buyer-Broker Agreement– This document clarifies that the person/company buying your home has a representative acting on their behalf (a real estate agent) and is looking out for their best interests, not yours. Be careful, if anyone is speaking with you and they are not personally buying your home then they are technically acting on the behalf of someone or something else and that requires a real estate license. If they don’t have a license they are operating their business in an illegal manner and should be reported to the proper authorities. The next thing needed would be to establish clarity on the Agency on your side of things. If you are selling your home on your own without an agent then you would want to have that in writing by using the…
3. For Sale By Owner Agreement & Agency Disclosure -This document will clarify that you do not have an agent and you will represent your own interest in the transaction. It outlines that you will be paying a commission (if any) to anyone, so you can’t be held liable for it later if you didn’t agree to pay one. Next you want to put the sale in writing by using the state approved purchase contract, known as the...
4. Real Estate Purchase Contract (REPC) –This 6 page document covers all the key points in the transaction so that everything is clear and in writing. It covers the following (and more): Buyer(s), Seller(s), Earnest Money, Property, inclusions/exclusions, water service, price, settlement & closing, proration’s, special assessments, fees, closing, possession date, agency, title and insurance, sellers disclosures, purchase contingencies (due diligence, appraisal, financing), home warranty, final walk-through, mediation, default, attorneys fees (if any), notices, assignability, insurance, electronic copies of contract, acceptance and contract deadlines. That seems like a lot but the form is written in a way that you just fill in blanks and is actually pretty simple. Next would be any addenda that outlines changes to the purchase contract. Any changes need to be on...
5. Addendum To Real Estate Purchase Contract Form –This is a blank form but has pre-written items that can be populated into the form. Additionally you can write your own terms into the form.
6. Lead Based Paint Addendum/ Disclosure –This form is required by law to be used in any transaction that involves a property that was built before 1978. It discloses to all parties what facts are known about the property in regards to lead based paint. Additionally, it confirms the buyer received the proper documentation regarding the health risks associated with lead based paint...
7. Sellers Property Condition Disclosures (SPCD) –This is the last standardized form that should be used on every transaction. As with everything in life, especially real estate, you want to be honest in all your dealing. That means disclosing all facts and known history that you know about the house to the new potential buyer. It includes but is not limited to remodel work, leaks, core upgrades, insurance claims, length of ownership, use of property, roof, utilities, HVAC, appliances, fireplaces, interior/ exterior features, structural, boundaries/ easements/ surveys, electrical, mold, hazardous conditions, HOA and assessments. From there you want to make sure that you follow state law and get a...
8. Transaction Document Receipt –This document confirms that each party has received fully signed copies of all the documents in accordance with state law. That way all parties are in agreement about the terms of the deal and no one can claim they aren’t. By signing this you are confirming that you have in fact received all copies referenced in the document and that you signed them as well.
Now, that all may seem a bit overwhelming but it’s the proper way to do the transaction that follows all rules and regulations.
Although it may seem like a lot of paperwork it actually only takes less than an hour to go through it all and get it signed by both parties. In the past eleven years, we have either bought or sold multiple properties but each time it has been a different experience because no two transactions are the same. I hope Cristi sells her home quick and for the asking price.
Con amor,
Vero
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