All About Selling

Can I sell my house myself?

Many people believe they can save a considerable amount of money by selling on their own. They look at the average commission on a house, and remember stories of friends or relatives who managed to get through the process with seemingly little trouble. "People sell their own homes," they say - "so why can't I?"
Right now, over 10% of American homeowners handle their own sales. But in order to join the ranks of the successful ones, you need to realistically assess exactly what's involved. The routine parts of the job involve pricing your house accurately, determining whether or not a buyer is qualified, creating and paying for your own advertising, familiarizing yourself with enough basic real estate regulations to understand (and possibly even prepare) a real estate contract, and coordinating the details of a closing. The greatest downsides are the fact your house is only on the market when you're home, and the possibility that a mistake may cost you the money you're trying to save.

The best reason for working with me is the enormous amount of information I have at my disposal -- information that can help make your house sell faster and easier. Professionals know about market trends, houses in your neighborhood, and the people most likely to buy there. I also know how to reach the largest number of people who may be interested in your house, and are trained in areas like screening potential buyers and negotiating with them. Finally, I'm always "on-call," and willing to do the things most of us hate: working on the weekends, answering the phone at all hours, and always being polite about it.

What makes a house sell?

This entire site could be devoted to answering this question. But to be as concise as possible, a successful sale requires that you concentrate on five considerations: your price, terms, condition, location, and exposure. Since you can't control all of them, you may have to overcompensate in one or more areas to offset a competitive disadvantage in another.

When is the best time to list a house for sale?

As soon as you decide to sell it.
If you want to get the best price for your house, the key is to give yourself as much time as possible to sell it. More time means more potential buyers will probably see the house. This should result in more offers; it also gives you time to consider more options if the market is slow or initial interest is low.

Is there any seasonality to the market?

Peak selling seasons vary in different areas of the country, and weather has a lot to do with it. For example, late spring and early fall are the prime listing seasons in many areas because houses tend to "show" better in those months than they do in the heat of summer or the cold of winter. And of course, people like to do their house shopping when the weather is pleasant.
But keep in mind that there are also more houses on the market during the prime seasons, so you'll have more competition. So while there is seasonality in the real estate market, it's not something that should dominate your decision on when to sell.

What about market conditions -- price trends, interest rates, and the economy in general? Should they have any bearing on when I list?

Probably not. Even if you're under no pressure to sell, waiting for better market conditions is not likely to increase your profit potential.

How long should it take to sell?

Average listing times vary from 90 to 180 days, according to market conditions in a particular region, town, or even neighborhood; and of course, price, terms, condition, location and exposure play an even greater role. Selling in any market is easier if you keep time on your side. Most professionals will tell you that allowing yourself at least six months will put you in a position to get a better return from their marketing efforts.

What if I can't sell my old house before we have to move?

This situation can arise for any number of reasons. For instance, getting the job promotion you've been waiting for may mean having to relocate very quickly. Another situation is you finally find your "dream home," and need to get it under contract before it sells to another buyer. Whatever the reason, don't panic. You have some viable alternatives to the potential nightmare of double mortgage payments.
If you don't have to sell in order to buy a new home, renting is one option to think about. Consider the advantages and disadvantages of renting your old house. If you're being transferred, you may be able to obtain a short-term rental while you're becoming familiar with the new area.

What if I do have to sell my old house first?

I do offer the ERA Sellers Security® Plan. It's the only guaranteed sale plan offered in all 50 states. You'll sleep better knowing your ERA broker has the financial strength to fulfill the terms of the plan. You're also entitled to some additional benefits which are automatically included in the program.

How do I price my house?

In a word, realistically.
Today's residential real estate market is no place to look for easy profit. The fact is, prices have generally leveled off from their peak during the 1980's. That's not to say you can't get what your house is worth. You just have to be realistic about its value, and price it accordingly. A good place to start is by determining the fair market value.

What is "fair market value," and how do I determine mine?

Simply put, the fair market value of a house is the highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase.

To get an estimate of fair market value, I will provide a Competitive Market Analysis (CMA) of your house. We provide this service free of any charge, without obligation.

The analysis will give you a realistic range based on the most salient points of the local real estate market. It will provide information about recent sales of similar houses, including how much they sold for and how long it took. This price opinion is very helpful in determining the right asking price.

Who can help me determine the right asking price?

I suggest asking prices based on a wide array of information you may not have at your disposal, including recent listing and selling prices of houses in your neighborhood. If you're not completely confident in my suggestions, you may want to order an appraisal.
Next, establish clear priorities. If you had to choose, are you more concerned with selling quickly, or getting the most money possible?

Someone else -- a neighbor, friend or relative -- may point out advantages or disadvantages about your house that you hadn't thought about. Third-party views will help you start thinking of your house as a commodity, with positive and negative selling points. Then you should decide on a price that you feel is competitive and consistent with what other houses in your area have sold for.

Should I fix my house up before it goes on the market?

Unless your house is nearly new, chances are you'll want to do some work to get it ready to market. The type and amount of work depends largely on the price you're asking, the time you have to sell, and of course, the present condition of the house.
If you're in a hurry to sell, do the "little things" that make your house look better from the outside and show better inside. Read on for several specific ideas for making low-cost improvements.

What is "curb appeal," and how do I create it?

"Curb-Appeal" is the common real estate term for everything prospective buyers can see from the street that might make them want to turn in and take a look. Improving curb appeal is critical to generating traffic. While it does take time, it needn't be difficult or expensive, provided you keep two key words in mind: neat and neutral.
Neatness sells. New paint, an immaculate lawn, picture-perfect shrubbery, a newly sealed driveway, potted plants at the front door -- put them all together, and drive-by shoppers will probably want to see the rest of the house.

Hand in hand with neatness is neutrality. If you're going to repaint, stick to light, neutral colors. Keep the yard free of gardening tools and the kids' toys. Remember, when a family looks at a house, they're trying to paint a picture of what it would be like as their home. You want to give them as clean a canvas as possible.

What should I do to make the house show better?

First, make your house look as clean and spacious as possible. Remember, people may look behind your doors -- closet and crawlspace doors as well as those to the bedrooms and bathrooms. So get rid of all the clutter; have that garage sale and haul away the leftovers.
After you've cleaned, try to correct any cosmetic flaws you've noticed. Paint rooms that need it, regrout tile walls and floors, remove or replace any worn-out carpets. Replace dated faucets, light fixtures, and the handles and knobs on your kitchen drawers and cabinets.

Finally, as with the outside of your house, try to make it easy for prospective buyers to imagine your house as their home. Clear as much from your walls, shelves, and countertops as you can. Give your prospects plenty of room to dream.

Should I make any major home improvements?

Certain home improvements that are useful to almost everyone have been proven to add value and/or speed the sale of houses. These include adding central air conditioning to the heating system, building a deck or patio, basement finishing, some kitchen remodeling (updating colors on cabinets, countertops, appliances, panels, etc.), and new floor and/or wall coverings, especially in bathrooms. Improvements that return less than what they cost are generally items that appeal to personal tastes, like adding fireplaces, wet bars, and swimming pools, or converting the garage into an extra room.
The challenge that comes with any home improvement designed to help sell your house is recouping your investment. There's always the risk of over-improving your house -- that is, putting more money into it than neighborhood prices will support.

So how much is too much? Professional renovators have found that, no matter how much you improve any given house, you're unlikely to sell it for more than 15% above the median price of other houses in the neighborhood, whether you do $1,000 worth of work or $50,000. That's why you might want to ask my opinion about the viability of recouping the cost of any major renovation you have in mind before you start the work.

Should I do the work myself?

If you have the time and talent, do-it-yourself improvements are the most cost-effective way to go. Painting, wallpapering, replacing cracked trim and old plumbing fixtures -- the difference between work done by a competent amateur and a professional is usually time and money. Just make sure you don't tackle something you can't handle -- this is no time for "on-the-job training!" If you're not experienced, it may be worth calling in a professional.
Larger jobs involving mechanical systems (heating, electrical, plumbing, etc.) or work that must meet local building codes are another story. Even if you or the family handyman know exactly what you're doing, it's not a good idea to engage in this type of work unless you're licensed to do so. Your efforts could make you responsible for more than you realize if something you worked on goes wrong after you sell.

Am I liable for repairs after I sell?

In certain situations. If the buyer's inspection reveals major problems with your house's structure or mechanical systems (heating, electrical, plumbing, etc.), the buyer may wish to negotiate the price downward on the basis of anticipated repair costs. So even though the repairs won't be made until after the sale, practically speaking, you'll be paying for them.
Sometimes, repairs may be required before the transfer of title takes place. This is especially true in sales that involve financing that's insured or guaranteed by the government (FHA/VA loans, for example).

You may have also heard about lawsuits involving sellers who failed to disclose major problems before the sale -- like an addition to the house that wasn't built to code. Most states now maintain very specific disclosure laws that require sellers to disclose any pertinent information relative to the condition of the property. For example, most states require sellers to notify buyers about the presence of any lead-based paint. It is important for you to be knowledgeable about your state's disclosure laws.  It's a good idea to get the buyer's written acknowledgment of any major problems when you accept their offer.

How do I reach the right potential buyers?

There was a time when selling a house was simple. Your real estate agent would put a sign in the front yard, an ad in the paper, and wait.
Of course, agents still do those things -- but that's far from all they do. Today, people are moving further and more frequently than they used to; it's not unusual for upwardly mobile executives to relocate across the country more than once in a year. The result is that the pool of potential buyers for your house is much larger and spread far wider than ever before, and the competition to reach them is fierce.

Because you'll probably need to cast a wider net to find the right buyer, choosing a real estate company that offers the sophisticated marketing techniques that define likely buyers, where to find them, how to reach them, and how to persuade them to buy one house over another has never been more important. The fact is, virtually everything we've discussed up to this point, from pricing to home improvements, the Competitive Market Analysis to the "For Sale" sign in the yard, is part of a marketing process that's put into motion when you decide to work with a good broker.

What's an MLS®, and why do I need one?

A Multiple Listing Service, or MLS, is one innovation that makes it easier to reach a large number of prospective buyers and dramatically increase the exposure of a property.
Quite simply, it's a system under which participating brokers agree to share commission on the sale of houses listed by any one of them. So, for example, if you list your house with one broker and another broker actually sells it, they share the commission. The advantage to you is clear; more people have an interest in selling your house.

How important is advertising?

Advertising remains one of the most important components of the marketing process. But again, it's not as simple as it used to be, at least not in the hands of a good broker.
Many people don't realize how costly advertising can be -- a single page of photo listing ads run by a local real estate office in your local newspaper can cost anywhere from several hundred to several thousand dollars. Yet it's a far more cost-effective way to go than the three or four-line classified ad you would probably run you were selling the house yourself. Here's why:

Your classified ad requires a prospective buyer to find it amidst the dozens of others on the page, and be impressed enough by its message to call in response. In contrast, the broker's ad is designed to "find the buyer" -- with its large size and easy-to-read layout, the eye-catching photographs and professionally written descriptions, plus the fact that it includes not just one, but several houses for sale.

How does the inclusion of other houses benefit yours? The power of numbers, plain and simple. Fewer than 5 % of buyers actually purchase the first house they call about. When they call to respond to the broker's ad, on the other hand, they're likely to be shown a number of houses similar to the one they initially express interest in seeing.

And that's just advertising in the local newspaper. Brokers today, including myself, employ a variety of other proven advertising methods, including the Internet, open houses and direct mail.

What should we expect from an open house?

As another valuable part of the marketing process, the open house offers prospective buyers the chance to view houses in a low-pressure, "browsing" atmosphere. With that in mind, you shouldn't expect it to generate a sale, at least not directly. What you should look for is traffic, and calls to your agent for private showings in the days following the open house.
Open houses are always valuable, even if very few people show up. Such a situation can indicate that the price is too high; it may also lead you to look for ways to improve curb-appeal. Try not to draw your own conclusions -- I will give you a full report on open house activity, and offer a professional assessment of its results.

Should we try to avoid being at home when the house is shown?

You should definitely plan to be out of the house during any open house I have scheduled; the same goes for first showings to prospective buyers. People often feel uncomfortable speaking candidly and asking questions in front of current owners. You want them to feel as free as possible to picture your house as their "dream home."

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