Question 1: How do you prepare a house to sell?

Answer: 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:

* Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.

* Clean the windows (both inside and out) and make sure the paint is not chipped or flaking. And speaking of paint, if your home was built before 1978, new federal law gives a buyer the right to request a lead inspection. If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.

* Be sure that the doorbell works.

* Clean and spruce up all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.

* Organize closets.

* Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.

* Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.

* Put vases of fresh flowers throughout the house.

* Having pleasant background music playing in the background also will help set your stage.

Question 2: Do sellers have to disclose the terms of other offers?

Answer: Sellers are not legally obligated to disclose the terms of other offers to prospective buyers.

Question 3: How is a home's value determined?

Answer: You have several ways to determine the value of a home.

An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 for a $250,000 house.

A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. Most agents offer free analyses in the hopes of winning your business.

You also can get a comparable sales report for a fee from private companies that specialize in real estate data or find comparable sales information available on various real estate Internet sites.

Question 4: What are the two most important factors when selling a home?

Answer: 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.

Question 5: When is the best time to sell a home?

Answer: The best time to sell is when you are ready, or when you must. That is, when you have outgrown the space in your current home, or you prefer to trade down to something smaller. Perhaps your martial status has changed, which necessitates a move, or you need to relocate for a job. Market conditions also play a role, as do seasonal conditions. For example, your chances of getting top dollar for your home are more likely in a seller’s market, when demand outweighs supply, than in a buyer’s market. Local and national economic factors also may dictate when to sell. If a major employer in your area is laying off workers, it may not be a good time to put your home up for sale. People will be cautious about buying when the future seems so unpredictable or bleak. Most agents agree the best time to sell is in the spring. This is when the largest number of potential buyers hit the market. Your home is likely to sell faster and at a higher price, although sales begin to pick up as early as February and start to slack off in July, the slowest month for real estate transactions.

Question 6: What should I do to prepare my home for sale?

Answer: Start by finding out its worth. Contact a real estate agent for a comparative market analysis, an informal estimate of value based on the recent selling price of similar neighborhood properties. Or get a certified appraiser to provide an appraisal. Next, get busy working on the home’s appearance. You want to make sure it is in the best condition possible for showing to prospective buyers so that you can get top dollar. This means fixing or sprucing up any trouble spots that could deter a buyer, such as squeaky doors, a leaky roof, dirty carpet and walls, and broken windows. The ?curb appeal? of your home is extremely important. In fact, it is the first impression that buyers form of your property as they drive or walk up. So make sure the lawn is pristine ? the grass cut, debris removed, garden beds free of weeds, and hedges trimmed. The trick is not to overspend on pre-sale repairs and fix-ups, especially if there are few homes on the market but many buyers competing for them. On the other hand, making such repairs may be the only way to sell your home in a down market.

Question 7: Should I sell my home first or wait until I have bought another home?

Answer: This is a tough decision, but the answer will depend on your personal situation, as well as the condition of the local housing market. If you put your home on the market first, you may have to scramble to find another one before settlement, which could cause you to buy a home that does not meet all your requirements. If you cannot find another home, you may need to move twice, temporarily staying with relatives or in a hotel. On the other hand, if you make an offer to buy first, you may be tempted to sell your existing home quickly, even at a lower price. The advantage of buying first is you can shop carefully for the right home and feel comfortable with your decision before putting the existing home on the market. On the flip side, the advantage of selling your existing home first is that it maximizes your negotiating position because you are under no pressure to sell quickly. It also eliminates the need to carry two mortgages at once. Talk with your agent for advice. Discuss the pros and of each and whether certain contingencies written into the contract can ease some of the pressures.

Question 8: Are there tips for selling a vacant home?

Answer: Yes. Once furniture is removed from the home, you will notice all kinds of imperfections you never paid attention to before ? rips in the carpet, holes in the walls, and dinginess. In an empty house, everything stands out. What you see is what potential buyers will also see. So you may need to paint, tear up old carpet, and replace the kitchen floor. To get rid of the ?empty house? feeling, leave a few pieces of furniture behind ? simple things like a lamp, chairs, and a table will do. Pay special attention to maintenance. Someone will need to dust and vacuum, leaves will need to be raked, and the grass cut. In the winter, consider having the heating system shut down and drained to save money. But keep the electricity running because lights will be needed to show the house. Watch out for that musty smell, particularly during the summer months, that settles in from having the windows sealed and locked. And beware of pests such as mice, squirrels, ants and bats.

Question 9: How can I get a quick sale, particularly in a slow market?

Answer: One of the most important things to consider is price. You may want to reduce the price of your home or, at the very beginning, set it at a low price that will generate more buyer interest. Cash is often an incentive, both for the buyer as well as the agent. You could offer the buyer a $1,000 to $2,000 decorating rebate upon closing the deal. It is also not uncommon to offer the selling agent a $500 bonus. However, some brokers who supervise agents and run real estate offices may prohibit such incentives, as do some Realtor boards. Check to find out. Other common incentives: paying for the property inspection and warranty policy and getting your home preliminarily approved for FHA and VA loans, thereby making it more attractive to a larger number of buyers. Contact a lender who writes FHA-insured and VA-guaranteed loans.

Question 10: What are some costs associated with selling my home?

Answer: Besides the costs related to making repairs and improving the overall appearance of the home, as the seller you will also need to pay the following:

  A real estate commission, if you use an agency to sell.

  Advertising costs, marketing materials, and other fees if you sell the home yourself.

  Attorney, closing, or other professional fees.

  Title insurance

  Excise tax for the sale.

  Prorated costs for your share of annual expenses, such as property taxes, homeowner association fees, and fuel tank rentals.

  Any other fees normally paid by sellers in your area, including points, survey, and appraisal fees.
To get a better handle on all costs, ask a real estate agent. Agents deal with this information daily and can give you a pretty good estimate of the closing costs you can expect to pay.

Question 11: Do I need an attorney to sell a home?

Answer: Although most sellers can handle routine real estate purchase contracts, some experts say it is a good idea to be represented by an attorney, particularly if you are selling on your own. You should choose one with expertise in real estate transactions. Before hiring someone discuss all the details of the transaction, including all legal costs you will incur. A good attorney will assist you in completing the deal swiftly and with confidence.

Common Questions for Sellers

  1. How do you prepare a house to sell?
  2. Do sellers have to disclose the terms of other offers?
  3. How is a home's value determined?
  4. What are the two most important factors when selling a home?
  5. When is the best time to sell a home?
  6. What should I do to prepare my home for sale?
  7. Should I sell my home first or wait until I have bought another home?
  8. Are there tips for selling a vacant home?
  9. How can I get a quick sale, particularly in a slow market?
  10. What are some costs associated with selling my home?
  11. Do I need an attorney to sell a home?