Putting Your Home for Sale - Everything You Need to Know To Maximize Your Profits

Determine the reasons you are selling your house and then decide the positive and negative effects on your life. For instance, if you are selling your home so that you can get into a bigger home because you just had a child then that is a good reason. But if it is going to stretch you beyond your budget then it may be a bad idea to sell.

Once your home sales then you will need a new place to live. Make sure you have a good idea of where you are going to move to next, how much it is going to cost you and the time frame it is going to take to obtain your next home.

Points to Consider:

• The close of escrow date is an approximation - you may need to have an in between place to stay before you move into your next home.
• Usually it takes about 2 months once you write a contract to sell a home
• If your home is a short sale, plan on a 6-12 month process
• In most states, rentals can be secured within days of the move in date

• Through a Friend - it's always good to get a first hand referral from somebody you trust
• Through the Internet- A realtor high on the search engines will likely have more exposure in marketing for your home. The internet is the largest medium of advertisement for your home for sale
• Open House- A realtor at an open house usually isn't overwhelmed with clients. He can make you a priority and will likely to have time to show you homes when your schedule permits. Also, these realtors usually have a better work ethic.
• Call a local Brokerage- Brokerages usually have a realtor on call that will be ready to pick up the phone and answer any questions you have.

Finding a good realtor is not typically hard. There are a good number of them. But there are also bad realtors that you will want to watch out for. Here are some things to ask yourself about the realtor who will put your home for sale.

• Is he honest?
• Is he experienced?
• Will he market your home to it's full potential?
• Is he just telling you what you want to hear or is he telling you the hard truths that will help your property sell?
• Is this realtor only about business? If so, will he make the best decision that will make you the most money, or the decisions that will make his business more money?
• Is the realtor a specialist in your area? If he is, does he have enough influence to effectively market your home to people outside of his specialized area? If he isn't, does he know the specifics of your neighborhood and the surrounding area to determine the correct market price for your home.

Typically realtors charge 6% of the sales price of the home.  3% usually goes to the buyer's broker and 3% goes towards the listing agent you hired.  There are brokers that take discounts but usually they are inexperienced or desperate.  It's not a good idea to hire a realtor that is either of these things.  You can find a flat fee place that will charge per service you request.  If you want to do the minimal and get your home on MLS, they may only charge a few hundred dollars.  If a buyer is brought by a realtor you will still owe the 3% realtor fee (if applicable).  

Full 6% listings usually sell for more than the flat rate brokerages.  They also have a hire sold percentage than flat rate listings.  

Putting a home for sale by owner is not a bad idea if you are experienced in the home selling process and if you don't really need to sell. Realtors like to refer to these as "Unrepresented Sellers". Realtors are more inclined to solicit a for sale by owner to list it than they are to bring a buyer to buy the property. 90% of FSBO's end up getting sold by a realtor in the end. You can put your home on Craigslist, but expect a swarm of realtors contacting you trying to pick up business.

If you are experienced at selling homes and you do find a home buyer on your own, you will want to contact a title company or a lawyer to get the necessary paperwork. You can fill out your own contract as the owner of the home, but still you should seek expert advice to make sure you do it right. This is part of the reason why it is a good idea to hire an EXPERIENCED realtor.

It is amazing what a little bit of work on a property can do to improve the market price and the marketability. Here are some tips to get you on your way.

• Make sure the home is well lit - Something about being bright attracts buyers. Try opening curtains, replacing the light bulbs with high wattage bulbs, leaving the lights on, add lamps if necessary. Sometimes sunshades can make a property seem dark, you may want to remove them too.
• Paint your home- paint is cheap. If you have inconsistent colors through out the house, get recommendations of popular paints from your realtor and go to work. The main areas are most important like the formal rooms, the kitchen, and the living room. Usually a neutral color works best. If you aren't sure about a creative idea, don't risk it. Stay safe with neutrals
• Clean, clean, clean- If you have hard water in the shower, clean it. If your carpets are dirty, clean them. Ceiling fans, air vents, book shelves, fire places, kitchen sink, bathtubs.. clean it all.
• Remove Eye Sores- Broken door knobs, broken blinds, refrigerator magnets, toasters, dish racks, trash cans, dishes, wires etc. Move, replace or hide them all.
• Remove Clutter- take out trinkets, certain pieces of furniture from crowded rooms, toys, storage boxes, beds that are too big for the room, a high concentration of decorations, etc.  
• Remove family pictures and cultural decorations- You want people to imagine it as their house not yours. Cultural decorations usually only appeal to that culture, you want to be neutral and appeal to the majority. Unless your realtor says otherwise.
• Manicure your yard - trim the trees and bushes, kept the yard mowed and the lawn green.  Park the car in the garage, pick up trash, make sure the pool is crystal clear blue, sweep the porch.
• Move Out- I know this is a hard one, but homes sell better when nobody lives in them.  Nobody likes going to a home for sale that is occupied and it is harder for a realtor to set up appointments.  The exception would be if your realtor thinks your furniture has a staging effect that is a marketing point.  
• Smell Goods-  My personal favorite is that some people will put cinnamon sticks in a small crock pot.  It is delightful.  Baking smells are the best.  I'm not suggesting that you bake cookies or pie every time somebody is showing your home... but it would help.  People use plug-ins or scented candles.  Just don't leave the candles lit while you are gone.  
• Bad Smells- Smoking smells are the biggest detriment to home values.  Try washing down just about everything with vinegar (some surfaces shouldn't be cleaned with vinegar).  I've even heard of sellers mixing vinegar and water and spraying it on the carpet.  Window coverings, grout in tile, air ducts, carpet, furniture and clothes will grab smells.  Clean them all.  Pet smells can be lessened by using baking powder or products from the store.  Powder the couch or floor, and then wait a minute and vacuum it up.  
• Do Repairs- Often it is customary that buyers will get a home inspection and then ask the seller to do the repairs at his or her expense.  It is smart to get any obvious repairs done prior to listing the home so that it shows better.  You are likely going to have to do it anyways.  

Everybody wants to sell the home for the maximum amount possible including the realtor. The biggest pitfall is when a seller over prices the home. Usually the appraised value is close to the market value and no lender will give a loan on a home that sells for more than it is worth. Also, the homes that are high priced tend to sit on the market for long periods of time and buyers think something is wrong with it.

To get a little more value for your home do the tips I mentioned in "Preparing your home for sale". Also, recognize that beautiful homes pull in a premium, especially when the market is littered with foreclosures and short sales. Sometimes it is beneficial to do some upgrades to your home to make it more beautiful. Sometimes the cost vs the benefit isn't worth it.

Price your home right from the first day you put it for sale.  The first two weeks typically have the most exposure on the market and their is the greatest urgency.  Experienced buyers know that the best deals go fast.  

Recognize different price ranges.  Buyer's usually only look in certain price ranges like $250,000-$300,000 or $300,000 - $350,000.  If your home is worth $301,000 then don't price it at $301,000.  You will miss the first crowd that is looking for a home $300,000 and below.  Your best chance is to price your home at a cool $300,000 even to get both crowds.  Some realtors like doing the $299,999 thing, but they are missing the point.  

Depending on your market you may want to do a special strategy.  One strategy is that you price your home low so that you get multiple offers.  The offers spin into somewhat of a bidding frenzy and you end up sellin your home for more than asking price.  This can be highly effective but it can be risky too.  If you don't get multiple offers you may end up selling your home under market value or if not... you may be on the hook for real estate commissions (depending on your state).  

Most investors do the same thing.  They buy a home that needs some work for a discount.  Then they put the "lipstick" on the home.  It's the easy and cheap stuff first like cleaning and painting.  If that does the trick then great!  If not they will replace carpet, countertops, and cabinets with neutral colors that complement each other as needed.  They do all the steps I mentioned in "preparing your home for sale".  They don't leave anything out unless it cost too much.  The get a good realtor who knows how to web market and they price the home right as soon as they put it on the market.  They make sure their house stands out from the rest of the homes on the market.  You don't have to make the best home, you just have to make the home better than the competition.