Selling a Home: Tips for the Home Seller

Getting It Together

There's never a second chance to make a first impression.

Here are some tips for getting it together:

• Front Door
  Be sure it is newly painted or fresh looking and is in proper working order.  How embarrassing to have the front door stick or not close properly when a buyer arrives to view your home.
• Front Yard
  Lawn mown, bushes trimmed, and sidewalks power washed.
• Exterior
  Make sure that the lights work and that the trim and siding are clean and in good repair.
• Paint
  Rooms needing re-painting should be done completely and not just "touched up." Light neutral colors are the best!
• Bathrooms
  Make them sparkle!  Repair or replace loose tiles and re-caulk where necessary.  Any plumbing leaks should be corrected.  Faucets are inexpensive, so replace them if they are a little worn or ugly.
• Kitchens
  Operating Room Clean.  The food gunk of other people sends most buyers running to the next home.  Keep them interested by keeping it clean.
• Check-Up
  Make sure that all appliances and systems (electrical, plumbing, etc.) remaining with the property are in good working order.  These items are typically warranted by the seller to be in working order up to closing unless explicitly excluded from warranty in the purchase agreement.
• Water Hazard
  Roof, gutters, downspouts and exterior trim are part of your home's defense against water.  Make sure that these items have been properly installed and maintained.  Failure to do so could result in hidden water damage and mold.
• Reserved Items
  Anything affixed to the property is real estate and is included in the sale unless explicitly excluded in the purchase agreement.  If you would like to exclude an affixed item from the sale, tell the buyer and exclude it from the sale in writing with the purchase agreement.
• Carpets
  If they're a little dirty, a shampooing will do.  Carpet that still shows stains after a shampooing may need to be replaced with an inexpensive carpet in a light, neutral color.

Gathering Information

Buyers have questions.  Good answers will make them feel more comfortable about buying your home.

For starters, it may help to have:

• A Copy of the Survey (if available)
• Property Tax Information
• Homeowners Insurance Policy Information and Insurer Address
• A History of Utility Statements (not required, but it can be excellent sales tool if the numbers are low)
• History of Home Maintenance (also not required; but a good maintenance history is an even better sales tool)
• Recent Water Test Results (if you use well water)
• Recent Septic Tank Test Results (if you have a septic tank)
• A Copy of the Rules, Regulations, and Restrictive Covenants Which Apply to Your Property
• A Plat of Your Lot and/or Subdivision
• A List of Names & Phone Numbers of the Utility Companies
• A Copy of Floor Plan
• A Copy of Appliance Warranties

This information can be presented in a three ring binder in protective plastic sheets, on a website, or with extra copies for interested shoppers.

Pricing It Right

Overpricing a property--while being ready to take less--can be a disastrous strategy.  Phantom sticker-shock can keep qualified buyers from even looking at the home, and if the home is being purchased with a mortgage, it is going to have to appraise for at least the amount the buyer has financed.  If it does not appraise, the sale could fall apart at the last minute.

The best strategy is to price it competitively with like homes in your area.  Contact your REALTOR®.  He will be happy to prepare a free market analysis for you to determine the optimal sale price of your home.

What to Do with Lookie-Loos?

Most people who do not come through a REALTOR® are several months away from buying, and are more interested in browsing the market than actually making a purchase.  Some are not prepared to make a purchase because:

• they have not sold their home yet
• they are not financially prepared
• they are not sure if they want to buy or rent
• they are unsure as to whether they even want to buy
• they cannot get approved for a mortgage due to serious credit issues

Good REALTORS® investigate a potential buyer's credit rating, savings, and purchasing power.  This saves time for everyone and makes the whole process less stressful.

Disclosure

If you want to avoid costly litigation, including a possible rescission of the sale of your home, disclose, disclose, disclose!  You risk serious legal action if you know of a potential problem or situation and do not disclose that problem or situation to a prospective purchaser.

Many states have made the completion of a "Property Disclosure" or "Seller's Disclosure" a requirement.  This form simply asks the seller to identify all known facts regarding a specific property.  Such facts include age and type of appliances, known repairs completed, amount of property taxes, if the property has ever flooded, has ever burned, etc.

Even in states like Alabama where property disclosures are not required, it is still good business practice to disclose all known facts regarding your property.  Doing so can save you from some serious legal headaches down the road.

If you know something to be true, disclose it.  If you do not know something to be true but only think it to be true, do not disclose it as a fact.  However, you can certainly bring it to the attention of a prospective purchaser as something you think to be true.

Some areas that can lead to legal action:

• Failure to acknowledge that property flooded.
• Failure to acknowledge that roof has/had leaks.
• Failure to acknowledge that there had been a fire.
• Failure to acknowledge potential environmental hazards.
• Failure to acknowledge known changes to take place in the community.
• Failure to acknowledge that there is insect infestation.

Some areas that can also lead to problems deal with personal incidents that may have taken place in a home such as a suicide or violent death.  While there are arguments that such an incident is not home related, they can still cause serious problems after the sale if not disclosed.  It is best to disclose.  Let the purchaser know what they are buying.  You would want no less for yourself.

List With a REALTOR®

The statistics speak for themselves: