Tips To Sell Your House: What You Need To Know To Do It Right

Written by Randy on May 27, 2006 | Comments (1)

It's that time of year when selling a home comes to fruition for many people. School is out and it's time to put the Home For Sale sign out front.

Wait a minute...not so fast!

Be sure you're ready to sell by reviewing the tips below regarding things you need to do get your home ready to sell.

Home Sales Fact:

2006 first quarter home prices were up 10.3% over the same quarter last year and the median sales price for an existing single-family house was $217,900.

Click for more details on home sales trends.

Source: BuilderOnline

If you're thinking about selling your home, here's some info and links to help you out...

There are 3 ways to sell your home:

Do it all yourself (FSBO - otherwise known as For Sale By Owner) and save BIG $$$
Employ the enhanced marketing capabilities that flat-rate or discount brokers offer and save a decent sum of $$$
List your home with an experienced real estate agent and negotiate the lowest commission rate that you can, sell your house and take it like a man (or woman)!

If the first option is something that you've been mulling over because the amount of money that you'll save is just something too tempting to resist then consider these 3 points first:

Get Your Home Ready To Sell

I probably don't need to tell you that you will need to make sure that your home is in great shape. You might even want to consider hiring a home inspector to come out and preview your home to point out any potential "deal-breakers". If you find yourself overwhelmed with fix-it projects once the inspector has left then you can pick and choose the worst of the bunch and consider reducing the price of the home in the way of an allowance during the closing process.

See What Your House Is Really Worth

Consider getting two or three comparable market analysis (CMA's) from agents in your area to help you set your price. It shouldn't take them long to accomplish this task and could well be worth their time since many people that originally wanted to sell their home themselves end up hiring an agent.

Here's a handy little tool to get an estimate on your home value from Zillow.com
And try this handy little tool see a birds-eye view of your home, estimated value of your home and details on your home from Zillow.com to . Just key in your street name and zip in the blue box at the top of the page and, if available, a decent image of your home appears. You can choose from satellite or birds-eye view. It's a beta site so the info may not be exactly correct. That held true when I entered my street and found the addresses didn't match with the picture. They were off by one home for the entire street. The home values listed were lower than what I know homes have been selling for lately by about $5K - $10K. Anyway, it's a cool tool. Try it.

Research The Local Home Buying Market

You really need to see what's going on in your area. Are you in a great neighborhood where homes typically sell fast or are you in the unfortunate position of living in an area where nice, well-kept homes sit for months waiting to sell? If the homes in your area have trouble finding buyers then you are more likely to require the marketing capabilities and expertise of a real estate agent with experience.

Become Your Own Agent

Still interested in becoming your own agent? Be prepared to spend ALOT of time taking care of the following business:

Set your asking price.
Show your home to all prospects...well, maybe not all but consider only showing to buyers that are pre-qualified.
Market your home.
Figure out what disclosures are required by law (all jurisdictions).
Negotiate your deal.
Set up an escrow account.
Order a payoff on your mortgage.

Proper Disclosure

Proper disclosure is extremely important. Do-it-yourselfer's sometimes find themselves on the wrong end of a lawsuit due to lack of disclosure or improper disclosure regarding their home. It is recommended that you take these 2 steps to avoid a sticky situation:

1. Employ the skills of a real estate attorney to review your contract. Here's a link to websites for professional real estate and legal organizations.
2. Spend some time finding out what is required in your state regarding disclosure. You can look them up in the phone book in the "blue" pages or sift through your state's official governing website in the real estate section. Here is the Georgia disclosure version.

Here is a helpful link to websites for real estate rules and laws by state. I highly recommend that you take the time to read up on the rules and laws in your state.

And finally, you might want to consider putting the phrase "Will Work With Agents" on your "Home For Sale" sign so that agents won't shy away from your property because there ain't nuthin' in it for 'em. 3% sales commission is customary when agents deal with FSBO's.

Sell Your Home Through A Discount Broker

OK...so you think you might need a little boost to get the word out that you're ready to sell. Discount brokers offer marketing capabilities otherwise unavailable to FSBO's. They sometimes have established websites and offer services that will come out to your home, take photos and talk to you about your home to understand the features of your home to list on their website, where you'll enjoy more exposure. Some discount brokers may also print their own publications or share listings with other brokers in real estate publications in your area.

Take a look around the cash register or front door of the local quik shop the next time you get an urge for a slurpee. They're all over the place! Most discount brokers will get your house listed on the Multiple Listing Service (MLS), offer virtual tours of your home on their website and run ads in local newspapers. Discount brokers usually offer a flat-rate fee and/or 1%-3% commission, depending on the degree of services you choose. Read the fine print carefully.

There are many discount brokers to choose from. Here are just a few:

ZipRealty.com
Help-U-Sell.com
Owners.com
Assist2Sell.com
BuyOwner.com
HomesByOwner.com

Here's a link to a wealth of knowledge regarding selling your home from Owners.com.

Finding A Full Service Real Estate Agent To Sell Your Home

Typically, finding an agent to sell your home shouldn't be very difficult at all. Negotiate the agent's commission before you sign with them. Commission rates vary and any agent that claims otherwise should be marked off your list of prospective agents to deal with. Their commission percentage will vary depending on if your particular area is a buyer's market or a seller's market. In a buyer's market, the typical commission is usually 5%-7%. In a seller's market you should expect to be able to negotiate down to a 4%-6% commission rate.

It is recommended that you choose an agent that knows the homes in your area and is successful in selling them in a timely manner. Be sure to ask about some of the homes they've sold recently to get an idea of how quickly they sell and the methods in which they were able to attract buyers. You should also check to see that the agent is licensed in your state and if there have been any complaints issued against them by simply keying in your agent's name or real estate license number.

ARELLO is the Association of Real Estate License Law Officials, comprising the official governmental agencies and other organizations around the world that issue real estate licenses/registrations in addition to regulating real estate practice and enforcing real estate law. ARELLO.com is a great website and the information that is provided is FREE.