Selling Your Home Yourself - Part 5: Getting Serious and Getting Ready

Tip 37: Time to go “pro”

Earlier we provided tips on getting to know your house and going around inside and outside to see what needs to be improved. 

Now it’s time to closely inspect your home for hidden defects.  It’s time for a professional inspector.  Get him to examine those details that can make or break a deal. 

One is the electrical wiring.  A fire caused by faulty wiring is serious business.  Instead of enjoying the cash from the sale of your house, your hard-earned equity is going towards paying damages and lawyers’ fees. 

Tip 38: The radon test?

Experts love to mention the radon test.  If you run a radon test in your house, this is a huge plus in the eyes of buyers. 

The longer the radon test, the more accurate are its results.  High radon levels can be fixed.  Always do retests, and provide results to your buyers.

Tip 39: This isn’t a multiple choice test.

See to it that the professional inspector or home inspection company you hired provides you with a well written report.

The fill-in-the-blank forms and check boxes type of report may be accurate, but a written, detailed analysis looks better to buyers.  It demonstrates to them that you’ve done your sacred duty as seller.

Tip 40: The well’s run dry.

Don’t overlook details that can jeopardize the sale or put you in an awkward position later. 

If you have a well (most homes out in the far country still have wells!), have this inspected.  If you have a written report, show this as well to the buyers.

Tip 41: What’s that smell?

If you have a septic system, have a percolation test performed.  If repairs are necessary, you either repair them before you sell, or disclose them to the buyers.  Don’t kill your chances of selling your house because of this detail.

Tip 42: Actually, now that you ask…

Show all repairs in a written report to all prospective buyers.  This will eliminate unpleasant surprises later that might delay the sale.  Disclosing all house defects and problems will help reduce the time or process leading to the final sale. 

Non-disclosure can even cause a re-negotiation of the sale price if the buyers discover the defects themselves.  If there is anything you don’t want, it’s being forced to re-negotiate the price down because of non-disclosure of a fact that you were legally required to disclose.

Tip 43: Show that you mean business!            

When the professionals have done their inspections and all reports are in your possession, make copies.  You’ll want to have as many copies of each report at arm’s length, so you’re not scampering around for them at the last minute. 

Show buyers that you’re acting conscientiously and being considerate of their concerns.  This will indicate clearly that you’re a serious seller – and a professional one.  Make sure the dates are clearly visible on each and every report.

Tip 44: If I were buying this house…

After you’re satisfied that the professional inspectors did their job correctly, act like one.  Take one, long last look. 

Put on your eagle eyes, and ask yourself:  if I were buying this house, what would I want done or repaired?

Tip 45: Is there an expert around?

In terms of repairs and fixes, follow the advice of Bill Effros:  there are three categories of things you should fix: 

·        Legally required repairs;

·        Little things that make a BIG difference;

·        Big things that make a HUGE difference.

Tip 46: It’s the law, sir.

Fix house problems because the law requires you to.  These are usually environmental in nature or hidden hazards that can cause health problems for the buyers and their children.  Examples are lead paint and asbestos removal, and harmful insulation material.

Tip 47:    You and I are different.

Little things that make a difference are those tasks or jobs that you’ve somehow delayed or never got around to doing. 

Remember that what may be petty to you may not be petty at all to your prospective buyer. No two people think the same way.  Selling and buying a house are two different perspectives, two different people, and two different mindsets.

Tip 48: Did you inherit these doorknobs from your grandmother?

Try not to overlook old doorknobs and plates on light switches.  If they look lifeless and worn, replace them to liven up the living areas.  Try to go for neutral designs. 

If your buyers are young, upward mobile professionals, you could go for bolder designs.  Make sure that whatever you put on, the buyers can take them off easily should they decide to do so. 

Tip 49: That noise is driving me nuts!

Has that leaking faucet been bothering you lately?  You can be sure that minor things like leaking faucets can make buyers hesitate. 

Faucets that have been leaking for some time demonstrate a homeowner’s negligence regarding basic maintenance.

Tip 50: Is this door going to fall on me?

Does your house have doors that sag, don’t close properly, squeak or have a knob missing? 

There are beautiful ready-made and custom-made doors in your local home centre, so why don’t you pay them a visit; get an idea of what kind of doors would breathe life into your house?

 

Tip 51: So, how many insects do you have here?

What about broken screens that have ugly-looking holes gaping at you and your visitors?  A simple thing such as broken screens can be a huge turn off so show consideration for your buyers by taking care of these minor fix-its.

Tip 52: For you or the buyer?

Some experts say that little repairs that can potentially annoy you or your buyers must get fixed. 

Getting small, minor jobs done will help increase your chances of selling your house. 

But getting big things fixed, they say, will only mean profits for the contractor and buyer, not you.  This is a matter of personal opinion. 

If you take integrity and professionalism to heart, you can proceed with the big repairs and cough up the expense.

Tip 53: Hold your horses!

Here’s what some experts are also saying about undertaking major repairs.  If it’s going to cost you an arm and a leg and substantially reduce the sale price of your home, think twice. 

For example, your house costs $200.000.00 in the market.  You’re thinking of selling it for $250,000.00 – to make a neat little profit of $50,000.  Repairs will cost you $30,000.00 that reduces your profit by $20,000.  Are the major repairs worth that measly profit?  

Crunch some figures before you undertake those major renovations.

Tip 54: I wish you hadn’t done that…

Undertaking major renovations may come out of the goodness of your heart, but have you ever thought of looking at the other side of the coin? 

What if the potential buyers don’t particularly like the renovations you’ve done, and would have preferred to renovate the house themselves? 

When an individual goes out looking to buy a house, that individual is not just buying a physical piece of property but is also thinking of making his future house an extension of his personality and his lifestyle. 

So if you’re thinking of renovating your house before selling to make it look more presentable, those good intentions may backfire.  That’s why it’s always good to gauge a buyer’s plans about your house when he/she first makes contact.

Tip 55:  Bring in a contractor.

Some people actually think it’s a good idea to bring in a contractor to have a look at their homes after the professional inspection. 

Because they know their business inside out, some contractors specialize in preparing homes for sale, and can tell you what should be fixed and what should be left alone. 

They can help you save precious dollars. Show them all of the inspection reports.  With the contractor’s opinion and the home inspection reports in your possession, you should be able to decide what to fix and what not to fix.

Continue to: Part 6: Letting the Word Out: “I’m Selling my House!”

Selling Your Home Yourself - Part 4: Your Motives for Selling: Watch out for the Psychological Effect

Tip 29:  Why am I selling?

You made the decision of selling the house.  You went through the motions of going over your house and looking for things to repair. 

Before you get to the next step – advertising your house in the paper and by word of mouth - spend some quiet time to yourself so you can gauge your true feelings about why you want to sell your house. 

If you have compelling reasons or circumstances that force you to sell, this may affect your position as a seller.  As the property owner, you should always be on the driver’s seat. 

Only you can dictate the terms of sale.  If you’re emotionally or financially disadvantaged, you may want to put off selling your house until you’re 100% convinced that you’re ready – emotionally and financially. 

Tip 30: Not the time to be fickle…

If your house holds much sentimental value and you feel that parting with it will affect you psychologically, assess how strong your emotional attachment to your house is. 

Once the house is sold, there is no turning back.  Sale contracts are legally binding.  You can’t appear at the doorway of the new owners and say, “Sorry, I’ve changed my mind.  I acted irrationally by selling. I want my house back!”

Tip 31: Nostalgia is a strong feeling

You want to sell because you’re getting divorced from your husband of 25 years?  If you no longer love your husband, but still love your house, think twice about selling. 

If the house means that much to you, then perhaps you may want to re-consider.  A house is not only a physical structure.  It is a refuge, a reservoir of memories of a family that built a future together. 

Sell your house if you have to, but if you’ll spend sleepless nights regretting the decision to sell, you might be risking your mental health.

Tip 32: I’m in a bind…

Financially strapped?  Many people think of selling their house to acquire much-needed cash.  Your house is your only asset and perhaps the only asset that banks will look at if you apply for a loan. 

Instead of selling, you may consider the option of using the equity you’ve built up in your home to apply for a loan.  But don’t sell just because you need cash.  Banks are often willing to give you room to maneuver on your house equity.

Tip 33:  My home isn’t a hotel!

If you hesitate about selling your house because you want your children to have a place to stay when they visit, remember that you raised them to be responsible, self-sufficient adults. 

If you really want to sell your house, this should be the least of your worries.  Your grown children can perfectly manage on their own.  Your house isn’t the Four Seasons!

T34:   Listen up, but stay with your convictions!

Remind yourself that it’s your house, so buyers should play by your rules.  Don’t let some smooth talking buyer convince you that your house isn’t worth that much.

You did your homework, so you’re the only one who knows what you should be getting for your house.  Remember it’s the buyer who needs a house, not you.  If one buyer is starting to get on your nerves, there are other buyers.

Tip 35: I’m selling, no matter what.

Banish your fears and emotional ups and downs because they only lead to inaction. 

Bolster your self-confidence by constantly saying to yourself, “I want to sell my house, I will sell my house, and I will make money from selling my house”.  This mantra will guide you and make you stronger as you go through the motions of the eventual sale.

Tip 36: Even well-meaning friends can derail you!

Stay focused.  Don’t surround yourself with friends who like to foretell gloom and doom.  “You might regret it,” or “There’s just too much stress handling the sale yourself, let the experts do what they’re best at”.  

These pieces of advice, no matter how well-intentioned, have no place in your goals.  Don’t be easily swayed by what your friends or colleagues tell you.  Refuse to listen to horror stories about meeting the strangest of strangers.

Continue to: Part 5: Getting Serious and Getting Ready

Selling Your Home Yourself - Part 3: Know thy Abode

Tip 19: Getting to know your house…for the last time

Okay, you have a good understanding of real estate, you know your community, and now it’s time to know your house like the back of your hand. 

Every house has a hidden defect or a very visible fault.  Take pencil and paper and do a tour, taking down all the weaknesses that can potentially be spotted by buyers when they visit.  Go around your house several times to make sure you’ve covered everything. 

You want to discover the defect before the buyer does.  Spare yourself some embarrassment.  Don’t underestimate the buyer’s ability to see through walls!

Tip 20: Did you say an in-ground pool?

If your house comes with a swimming pool, mention it!  An in-ground swimming pool adds a lot of value to a house. 

Make sure the pool is clean and there are no floating algae or fungi when the buyers come knocking at your door. 

If there’s anything that can be quite disconcerting it’s a pool with no water, dead leaves and little creatures floating about, or large cracks in the pool.  A pool isn’t fun without a heater.  Let your buyer know that the pool’s heater is working.

Tip 21: Put romance back in their lives…

If you live in an area with a colder climate – Minnesota for instance -- a fireplace makes a good sell, so don’t forget to mention it. 

This particular detail can go into the ad, or you can surprise your potential buyer when they come to visit.  It’s all up to you.  Find out what the real estate agents say about fireplaces. 

In Florida for example, a fireplace is not something you’d think a house should have, but in upscale, gated communities, families do have nice fireplaces in the living room or basement.  Ambiance, that’s why.

Tip 22: See, this garage door is really simple to operate!

Check your garage door mechanism and see if it’s working properly.  You’ll want to demonstrate to potential buyers that your garage is in tip top shape. 

You may also want to show them your maintenance records (garage doors usually need to be inspected and lubricated once every two years, depending on how recent your garage door and mechanism are).

Tip 23: I never promised you a rose garden.

Check your front and back yards.  Are they well-kept or do they look like they’ve been neglected for the last six months?  Is your grass healthy and green and well-manicured? 

When buyers look for a house, they customarily concentrate on making adjustments inside the house; they understand that part of the house buying process is renovation. 

At least they’re prepared for this event, but when they see that the outside of the house also needs major attention, they could get discouraged – and dismayed no doubt – to see such an unkempt front yard and backyard.

Tip 24: You’ll have a roof over your head for the next 25 years.

Make a list of major and minor renovations you’ve undertaken in the last five years.  Keep this list in your pocket so that when you give the house tour, you can mention these renovations. 

Things like “my husband and I had the roof changed entirely even before the 25-year period.  One thing you won’t have in this house is a leaking roof”. 

Or else: “These kitchen cabinets and drawers were given a face lift only three months ago”. 

Or perhaps:  “We decided to install smoked glass in one part of the kitchen to hold our crystal collection”.  Then turn on the light of the smoke glass cabinet to show some dramatic effect, the expensive crystal collection and the dim lighting.

Tip 25: Wow, a home spa!

Pay attention to the bathrooms.  Make sure they have good lighting, squeaky clean faucets and a shiny, sparkling bathtub.  A stained bath tub is unsightly. 

Hang some of your best linens for the visit.  A bathroom that smells and looks clean can be a persuasion point.  Count yourself lucky if you have a whirlpool or a large Roman bath. 

For couples just recently married, the whirlpool or spa might just bring you closer to finalizing that deal.  One thing with house hunters:  they start with a budget in mind, but watch how they’re easily swayed to stretch that budget a little more when they see amenities that they otherwise would not have thought about previously.

Tip 26: A house that’s safe and sound.

Buyers are likely to ask you about insulation and energy efficiency systems in your house.  If you don’t know or can’t remember, be honest and say so. 

However, it definitely would be to your advantage if you can speak knowledgeably about the “inner character” of your dwelling.  The old installation materials of older houses were declared a health risk by the US and Canadian governments many years ago, and house builders have switched to safer insulation materials. 

Make sure you mention this if you do know, especially if you’re dealing with a buyer who happens to be a lawyer.

Tip 27:  What?  No hot water again?

Many people don’t know this, but if you were smart enough to have your water heater checked periodically, say so. 

Water heaters, in order for them to work efficiently, have to be inspected regularly.  Over time, water heaters get an accumulation of chemicals in the bottom.  Even if a new roof costs a lot more than a new water heater, buyers appreciate the present owner’s thorough “sense of maintenance” by looking into details that homeowners usually overlook.

Tip 28: Someone forgot to look up the ceiling…

One real estate agent in Washington DC remarked that she was approached by a couple to sell one of the “cutest houses in the neighborhood”. 

It had excellent potential – large backyard, nice French bay windows, a second floor landing area that was large enough to accommodate a family gathering, and solid wooden floors. 

The only thing wrong, according to the real estate agent, was the entire lighting system.  The lamps and chandeliers looked like they were put there since the time of Adam and Eve. 

She suggested to the present owners to replace all the lights and to invest in good quality lamps.  The cutest house in the neighborhood eventually sold – just three weeks later – for $900,000.00

Continue to: Part 4: Your Motives for Selling: Watch out for the Psychological Effect

Selling Your Home Yourself - Part 2: Know thy Area/Community

Tip 10: Good schools?  But of course!

Think about what’s special about your community, then conjure up an ad that might attract say, a young couple with school-age children.  Find out how many private and public schools there are, and how near are they to your house. 

Many times, good schools are the deal clinchers.  For young families, schools are a top priority.  If the schools in your community have won awards from the private and public sector, or if you hear about any achievements, mention them to your buyers.

Tip 11: It’s the fitness thing, you know.

Do an inventory of your community’s attractions.  How many parks, tennis courts are there?  Is there a YMCA?   All these facilities play a major role in the decision to buy, especially if the husband or wife is a fitness freak.

Tip 12: And what about concerts and that kind of thing?

Don’t overlook the entertainment factor:  how many restaurants and movie theaters does your area have?  What about concert halls and other cultural activities?  Young couples, especially those with no children, like to eat out often. 

They also want the assurance that if they don’t feel like entertaining friends for dinner at home, they can go for a concert or a show to spend a relaxing weekend.  A very cultural community filled with activities is a huge factor, not only for them, but also for their children.

Tip 13: Will I fit in the area?

The ethnic factor:  if your area has a strong multi-cultural presence, this might be an attraction for newly arrived immigrants in search of a house.  The feeling of wanting to feel “at home” is a strong motivator.  You may think it a trivial matter, but buyers do ask if there’s a sushi restaurant in the area, or if there are any Jewish Synagogues nearby. 

Are there meeting places where members of ethnic communities can mingle and share views, cuisine and stores about “back home”?

Tip 14: Is there a doctor in the house?

Does your area have a good hospital?  What makes that hospital a plus factor?  Families that have aging in-laws in tow would like to know if they can get medical help immediately in case of an emergency. 

Also, if your local area hospital is known for a particular specialization make sure you let your buyers know.

Tip 15: How is the transportation system?

How far are the major highways from your house?  Where is the next largest city?  How developed is your area’s public transportation system?  Proximity to a subway station is typically seen by many as a benefit because downtown parking is expensive.  This constitutes a great advantage also for teenaged children who attend university downtown.

Tip 16: No gossiping allowed!

Are you in friendly terms with your neighbors?  If you’re selling a condo or a duplex, the next owners are usually curious about what kind of neighbors live in the same enclave. 

Show your neighborliness, but don’t gossip about the neighbor on your right.  Chances are prospective buyers are only interested if the neighbors are quiet or rowdy.  They’re not interested in your neighbor’s alcohol problem.

Tip 17: Help, my car’s been snowed in!

How efficient are your city’s services?  Does the area have enough firemen, snow removal trucks, and garbage collection systems?  What about facilities for recycling waste material?

 The more you know about your community’s services, the better you can capitalize on these selling points. 

If either the wife or husband has had a hip fracture, efficient snow clearing by the municipal government is reassuring.  Not many cities can say that their snow is cleared on time.

Tip 18:  Cavities?

Is the city water fluoridated?  You’ll be amazed at how some parents make a big deal of this.  Studies have revealed that cities where the water has been fluoridated have a lower incidence of tooth decay among school-age children. 

Perhaps this looks like a minor detail to you, but remember, the intelligent buyer is taking a thorough inventory of the community and its services.

Continue to: Part 3: Know thy Abode

Selling Your Home Yourself - Part 1: Knowledge is Power

Tip 1: Before anything else, grab a powerhouse of knowledge.

If you’ve decided to dispense with a real estate agent to avoid paying those ridiculous commissions, then start thinking like one. 

How?  Three to six months before your target sale, bone up on home selling strategies.  If you have friends or colleagues who’ve worked in real estate, talk to them, but don’t tell them you’re thinking of your selling your house so they won’t try to convince you to do otherwise. 

Ask them about mistakes they’ve made or mistakes that their relatives and friends have made.  Survey the entire landscape.  Personal experiences are always an excellent source of knowledge and strategies.

Tip 2: Be a listener, and be a GOOD one

Hold casual conversations with at least 3 real estate agents who work in the area where your house is located.  Be attentive to what they say about location.  It’s helpful to know how much your civic address is worth. 

While location is the predominant argument in real estate, this rule may not always apply.  Perhaps location is the least of your potential buyer’s worries.  Don’t overlook the fact that buyers have typical and unusual reasons for buying a house.  Many have jumped into the arena of investment property. 

While most people buy houses so they can live in it, there are those who like to play the market and want to make a killing.  Sell your house with an open mind.  Don’t let the factor of location discourage you, or encourage you too much.

Tip 3: Basic rule:  don’t get locked out of the market because you’ve overpriced your house!

Continue building up on that knowledge base:  make it a daily habit of reading real estate ads everyday.  Get the average selling price of a house identical to yours. 

If you have the luxury of time, you may even want to drive around these houses for sale and judge for yourself whether or not the price they’re asking is justified. 

Some homeowners have illusions as to what their houses cost.  Is the price they ask reasonable, or way out of proportion to the looks and location of the property?

Tip 4: What are the ads saying? 

Get a feel of how real estate ads are worded. 

·        What are the key words and phrases? 

·        What ads caught your attention? 

·        Why? 

·        Does the ad sound credible? 

·        Does the ad provide adequate information to provoke interest, or does it leave the reader indifferent? 

Use these ads as a model for your own.

Tip 5: Play detective

Do a bit of detective work:  try to keep track of real estate ads that appear only a couple of days (house could have been sold in just a matter of days) and ads that seem to be in the paper forever (why can’t the advertiser sell?  What’s preventing him from selling?)  This is where wording might clue you into the reasons.

Tip 6: Read and devour all that you can!

Build up some more on your knowledge power by visiting your local library, and browsing through books and magazines about real estate in general (and selling homes in particular). 

Be on the alert for people who’ve written about their personal experiences in selling their homes.  Being well-informed is still your best weapon.
  

Tip 7: Realistically speaking, my house is really worth…

Set realistic goals: if houses like yours in your area are asking for $250,000.00, don’t think you could make a lot more just because you have a rose garden and your neighbor doesn’t. 

Deviating too much from the mainstream can work against you.  Don’t stop buyers from calling you because your price is way too much the average prices for your area.

Tip 8: Play the real estate game seriously. 

Bear in mind that the “no risk, no gain” philosophy may not always work in real estate.  Real estate is a smart, serious business.  It’s better to have brains than guts!  Feed your brain with information you will need when you finally do sell your house.   Real estate information is not a scarcity.  There are thousands of web sites dedicated to real estate.  And the library holds a wealth of information on the subject.

Tip 9: Get only enough to get you started

Too much analysis leads to paralysis.  Arm yourself with adequate knowledge and then get moving!  Don’t let fear or over-confidence immobilize you.  If you want to sell your house successfully, fear has no place in the grand scheme of things, nor does arrogance.

Continue to: Part 2: Know thy Area/Community

Selling Your Home Yourself - Introduction

So….you’d like to sell your house? Great! Everyone’s doing it.  But this is your first time and you’ll be doing the sale yourself.  Nervous?  Of course!

The fact is, it’s only unnerving because you haven’t got a clue about the dynamics of selling a house – your house.  It’s the one asset you have where you’ve plunked down your lifetime savings.  Now you want it all back! 

That equity you were slowly building over these years will come back to you a hundredfold because you’ve thought about it long enough to realize that there is a handsome profit waiting to be made. 

   

Don’t worry!  This episode in your life doesn’t need to be a drama of horrors.  In this book, we’ve collected important tips for you – the first timer - all 101 of them, in fact. 

And when that check finally lands on your hands and the last box has been shipped out of your house to make way for the new owners, it will be exhilarating – more exhilarating than you’ve ever imagined it to be.

   

Study the tips.  Some you already know, no doubt.  But even with 101 or 1001 tips, you’d still need professional advice – you managed to eliminate the real estate agent, but you’ll still need your lawyer (or notary) and your accountant. 

You need to consult with other professionals as well – like the professional house inspector who can dish out valuable advice about repairs and maintenance. 

These tips can help you map out a selling strategy for your house, and when you turn the lock for the last time, you’ll come out of the experience wiser.  And yes, wealthier, too.

   

The confidence you gain by getting your feet wet the first time could – who knows? – make you want to do it the second time, and then a third time…and more!

Continue to: Part 1: Knowledge is Power