Prepare before selling you home
by Ann Hoff-Fanaian
- The Value of your Home
This is definitely number one…and so important. Even though determining an actual exact price of your home is tricky, because there is no exact price, as a homeowner you want to know how much value it has. You don’t want it to be too low, nor too high.
How do you determine a good value for your home?
First of all the definition of the value of a home is the worth of a piece of real estate of how much a buyer is willing to pay and a seller willing to sell such property, it’s the value buyer and seller agree to.
If you price it too low, you lose money which could be yours, that’s simple. If you price it too high, it will be on the market too long and buyers will become weary of looking at your property.
Today we are experiencing a seller’s market. Will it last? Probably not too long, but meanwhile, make sure you get your home priced right. There are several ways you can do this:
a. On your own: research the price homes similar to yours sold in your neighborhood during the past 3 to 6 months. Currently in 2021 this works better during the past 3 months, but with fewer homes selling, you may not find many. Which brings us to #2.
b. Ask a real estate agent to give you a home-valuation, many offer them for free, because they want you to use them in the sale of the home.
c. Get an appraisal. If you want to sell your home yourself, this would probably cost you, but it may be worth it. The price will depend on how big/small the home is.
So, getting a better offer than your listed price? If it’s not a cash deal, take into account the lender will have the house appraised and you want to have your home appraise for the amount the buyer is offering. If you receive too high an offer, you may have to reduce it during the transaction if it doesn’t appraise. The lender will not buy a home that is over-valued. Remember the 2007 real estate crash.
2. Don’t over-improve your home
Repairs or upgrades don’t have to break the bank. Some sellers think they have to make a big expense in upgrades to sell a home. However, this is not the case. Of course, if your home is from 1950 and has never seen a handyman, perhaps you will need a few upgrades, but for the most part you don’t need to change a lot of things. Let’s look at a few key updates:
a. Curb appeal: This is the first impression your home gives. Have a clean and decently upkeep yard. Dry and brown sod is negative to curb appeal. Put in a few flowers, some mulch, trim down the trees.
b. If it’s been a long time since you last painted the house, a fresh coat of paint inside and out is a good idea.
c. Bathrooms: Add a few fixtures. If you have laminate vanities, try updating a little or a lot, depending on your budget. Granite is always a good in-between price range. Also, clean up the bathrooms, professionally if you need to, to get them to shine.
d. Kitchen: change a few fixtures like cabinet knobs, faucets and maybe switch the counter to granite. Throw in a nice backsplash, and make it shine. You don’t have to go all out and get all new appliances, but if they’re too old, maybe you need a new refrigerator, stove and microwave. If you do, have them match: all stainless steel, or same color (black, white, eggshell), but they have to match the overall kitchen design and decor.
e. Flooring: It goes without saying, if your flooring is carpet, and you plan not to change flooring to ceramic or wood, you need to replace the carpeting throughout.
Some of these changes should not be very expensive, and it depends on the condition/age of the property. Making some of these changes will make a big difference in the offers you may receive.
IMPORTANT NOTE: some customizations in the home may not jive with buyers. Examples: wallpaper, crazy tiled floors, different colored walls in living areas, vibrant colored bedroom walls, to name a few. Review your home, what things can you make more neutral? Some of these things were design favorites a few years back, but not today. Remember, less is better.
3. Less is more
Declutter, declutter, declutter. You plan on moving soon, right? Start packing! A decluttered house selles quicker than one with clutter. Evaluate every bedroom, living space, the kitchen and bathrooms. Just leave essentials out in the open.
Declutter the bedroom dressers and bathroom counters: put away the shampoos, deodorants, shavers, jewelry, perfumes, soaps, etc. The less out in the open the better.
Kitchen counters: If your kitchen counter is completely empty, that is best! That means, put away the blender, the toaster, the coffee maker.
Pictures on the walls: Take them down! As many as you can, specially personal ones. Having a few standard and/or neutral paintings is ok, but as with everything else, why not start packing?
4. What to look out for in an offer
a. Of course, the first thing you will look at is how much is the offer, that goes without saying. b. Second, look at financing: cash, conventional loan, or other type (FHA, VA, USDA, etc). As they say, cash is king. You will get a quick closing. With conventional loans the buyer needs to put down more money as downpayment, so it’s a stronger buyer financially, though this may not necessarily mean a quicker close of the deal. Some sellers believe you get a quicker close with conventional versus FHA/VA loans (government backed loans), but this isn’t always the case. Financing has many things that affect it, such as buyer’s credit history, financial health, working conditions, etc.
c. Does the buyer ask for help with closing costs? Currently in this seller’s market you will probably not see this often, but look out for it in the offer. In buyer’s markets, many buyers request closing costs from the sellers. Sometimes a buyer may offer more than asking price and request help with closing costs.
5. Reply promptly to calls/emails
If you are selling your home yourself, this is definitely one of the most important things you will need to do: be responsive to inquiries. If you don’t like phone calls, you may feel more comfortable asking questions to be asked via email or text.
Respond quickly, one reason is because people may be driving by your home and see your sign, and would like to schedule a quick appointment. If you are working with an agent and the showings are somewhat restrictive, like if you can only show during certain times of the day, it is also a good idea to respond to your agent promptly. Usually they get spur of the moment contacts from agents who are trying to schedule many different visits, so they need prompt confirmations.
6. Showing the home
* Try not to be present when buyers come. Buyers feel uncomfortable when viewing a prospect property if the owner is hovering over them. Usually buyers are looking at your property accompanied by an agent, so the risk is low when buyers are examining your home. If you have to be there when they come, wait outside. Let the buyers roam and feel comfortable so they can picture themselves living there.
* Make your home welcoming, prepare you home to show. It helps to have all the lights on, have some good smells sift through the house (nothing too strong). I suggest to boil some cinnamon sticks, all spice and nutmeg in a small pot of water before a showing. It gives the kitchen a homey smell.
* Of course, we already told you all about decluttering.
* Safety + security. The agent will most likely make sure your home is safe and secure when they leave. If you have any pets, put up a visible note to make sure they don’t let them out. If any doors don’t work (for example a patio door), make sure to have a note posted for the agent to be aware. Showings shouldn’t be stressful for you or the agent.
I hope these tips can help you sell your home for more than you bargained for. These tips work during Seller Markets as well as when you desperately need buyers to see your home.
Good luck!