9 Steps To Take Before Selling Your Home

The home selling process differs from state to state, but there are some important steps that you should take before you put your house on the market--all steps that protect your interests and help you get the most return from your investment.

1. Get Pre-Approved for a Home Loan

 

I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal. 

Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement. 

2. Check Your Mortgage Payoff

 

Call your lender to check the payoff for your current home mortgage. You'll need the figure to complete Step 6. 

3. Determine How Much the House Is Worth

 

Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy, but you might take it a step further and order an appraisal.

4. Estimate Your Costs to Sell

• Real estate commission if you use an agency to sell.
• Advertising costs, signs, other fees if you plan to sell by owner.
• Attorney, closing agent and other professional fees.
• Excise tax for the sale.
• Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and fuel tank rentals.
• Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
• Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs. 

5. Determine Your Costs to Acquire a New Home

• Total your costs to acquire a new home: moving expenses, loan costs, down payment, home inspections, title work and policy, paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for pre-approval.

6. Calculate Your Estimated Proceeds

1. Deduct your mortgage payoff from your home's fair market value.
2. Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.
3.  Will your closing proceeds cover your costs to acquire a new home? If not, do you have cash or other funding to make up the difference? 

7. Make Necessary Repairs

 

Make all needed repairs unless you want the house to be regarded as a fixer-upper. I'm not referring to cosmetic updates, but to items in need of repair. Anything that's obviously broken gives potential buyers a reason to submit a lower offer. 

For a preview of several repair hot spots that worry buyers the most, read Passing Your Home Inspection. 

8. Get the House Ready to Show

 

Most houses need at least a little spiffing up before they are shown to potential buyers. Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances, and a clutter-free atmosphere are essential if you want the house to appeal to buyers. 

Read: The Importance of Curb Appeal and Getting the House Ready for Showings for more prep advice. 

9. Get Psyched Up to Let People In

 

If you're listing with a real estate agent, she'll no doubt ask you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding. 

Unless there's a real reason for it, don't ask your agent to be present for all showings. That's the kiss of death for showing activity. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.

If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.

  www.JulieWyss.com   |   Julie@JulieWyss.com   |   408.687.2026

Home Inspection 101

BY JULIE WYSS · DEADLINENEWS.COM © DECEMBER 16, 2012
BUY | SELL · TAGGED: HOME BUYER, HOME INSPECTION, HOME SELLER · NO COMMENTS

You’ve found the home of your dreams and your agent prepares the purchase offer with the standard contingency – “upon Inspection.”

You gave the house the once over, but did you look in the attic space? The crawl space? Did you check to see if the appliances work properly? Did you check to see if the sprinkler system works.

Chances are the answer is “no” to all those questions.

This is a job for a home inspector.

Home inspector is the expert

A home inspection is an independent, unbiased review and report on a home’s primary systems, components and conditions. The inspector’s job is to discover and document visible problems that may have been overlooked by a real estate agent, the buyer or the seller.

An inspector does not appraise the property, make buying recommendations, recommend approaches to building code compliance, guarantee the structural viability of the property or find hidden defects.

What will the inspector inspect?

A complete inspection includes a visual examination of the building from top to bottom. Only items that are visible and accessible by normal means are are examined and included in the final report.

The inspector evaluates and reports the condition of the structure, roof, foundation, drainage, plumbing, heating system, central air-conditioning system, visible insulation, walls, windows, and doors.

The information is detailed in a written inspection report.

What about inspection report problems ?

If the inspector finds problems, that does not necessarily mean you shouldn’t buy it, only that you will know in advance what type of repairs or upgrades to anticipate.

The inspection report is a tool to help you make an informed decision about buying the property – or not.

The choice is yours.

A seller may be willing to repair significant problems the inspector discovers or even upgrade or improve aspects of the property to more contemporary conditions in order to make the home more saleable.

The buyer can negotiate for a lower price or other concessions, if there are problems that need correcting and the seller doesn’t want to take time or make the effort to get the work done.

If your budget is tight, or if you do not wish to become involved in repair work, you can choose not to buy the property.

If you do negotiate repairs, always set deadlines and put everything in writing with the appropriate terms, signatures and dates.

Finding a home inspector

Talk to your real estate agent, friends, family or others you trust who recently purchased a home and used an inspector they are willing to recommend.

Also check with professional associations including the California Real Estate Inspection Association (CREIA) and the (ASHI) American Society of Home Inspectors.

Sellers can choose to hire their own inspector to learn the condition of the home, but the buyer can choose his or her own inspector.

Interview several candidates. Verify their license, when applicable, and ask about their experience, education, and any professional certifications.

Be sure the inspector you hire can meet all contractual deadlines included in your sales contract.

The contract typically specifies a certain period within which the inspection must be complete, as well as a period for you to review and approve the inspection.

Click here for a virtual home inspection.

If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.

Julie@JulieWyss.com  |  www.JulieWyss.com   |  408.687.2026