If you change jobs, or if your family or financial circumstances change, you may want to sell your home. Selling a home can be an emotional experience, especially if there are other life changes going on as well. If you’ve decided to sell your home, try to focus on the practical matters that need attention—it will help the whole process go more smoothly
Curb Appeal Counts
A home that’s visually appealing and in good condition will attract potential buyers. Use the following suggestions to help ensure your property will be appealing to people shopping for a home or just driving through the neighborhood.
- Keep the lawn mowed and the shrubs trimmed; remove dead plants.
- Repair cracks in the foundation, chimney or walkways; resurface the driveway if needed.
- Repaint window casings, shutters, or doors, as needed.
- Store garbage, debris, lawn mowers, and hoses out of sight.
- Keep the garage door closed.
- Wash the windows.
- Replace or repaint the mailbox, as needed.
- Have the outside of the house power washed, if needed.
Once Inside…
Curb appeal can get potential buyers through the door. It’s up to you to make sure they like what they see once inside. There are relatively easy, inexpensive interior improvements you can make to enhance your home’s overall attractiveness and accent the best features.
Anything that says, “This home has been carefully maintained” makes a difference. Cleanliness is number one.Windows, floors, and bathroom tiles should sparkle (e.g., no moldy caulk around the tub). Shampoo dirty carpets; repair dripping faucets; oil squeaky doors, and wash finger marks off of the walls. Small investments can have a big bottom-line payoff. Keep your home clean and tidy at all times while it’s on the market.
Remove as much clutter as possible. Cluttered spaces tend to look smaller. Clean the basement, garage, and attic and get rid of as much “stuff” as you can. Remember, if you don’t get rid of it, you’ll have to move it! Clean all of the closets in the house and organize contents. If you have liners on your shelves, make sure they’re fresh and clean.
If you have a lot of furniture in any rooms, consider putting some into storage. Your rooms will look larger if they’re not crowded. If any rooms are particularly drab or have worn-looking paint, repaint them if you can—preferably in a soft, neutral white. It’s a good idea to remove most of your personal knick-knacks. The photos of your nieces and nephews and your daughter’s little league trophy make it harder for buyers to “place” themselves in the space.
When your home is being shown to potential buyers, make it as attractive as possible. Put fresh flowers in strategic places (e.g., in the foyer where they’ll help make a good first impression) and fresh guest towels in the bathroom. If possible, on the day you’re expecting a potential buyer, pop a batch of quick-bake cookies into the oven for a welcoming aroma. If you don’t have time to bake, put a teaspoon of vanilla extract on a plate in a “warm” oven for ten or fifteen minutes—it will smell like you baked cookies. But be careful, don’t assault potential buyers with strong smells; avoid air fresheners and scented candles.
Cosmetic changes do not have to be expensive, especially if you’re willing to do the work yourself. And costly home improvements may or may not be a good investment when you’re preparing to sell. Keep the value of other homes in the area in mind whenever you consider improvements. Remember that potential buyers may not share your tastes and may not want to pay for the upgrades you’ve invested in. If your home’s value is more than 20 percent above the average, it may make it more difficult to sell. If you do make major changes or improvements, keep them simple and neutral.
Hire an Agent-Or Go It Alone?
Some homeowners decide to sell their homes themselves in order to save the commission charged by a real estate agent. The commission rate may vary depending on the asking price of the house, but it is generally five or six percent of a home’s selling price.
If you choose to handle your own sale, you’ll need to write and place ads, answer calls, perhaps have a sign made, show your home to strangers, and deal with the paperwork yourself. Sometimes buyers who know you are not paying a real estate commission will offer less for your home. Also, it will be difficult for you to know whether buyers are qualified—that is, whether or not they are really in a financial position to buy your house. Licensed real estate professionals can offer valuable services, including:
- Helping you set a fair asking price for your home.
- Promoting your home to other agents.
- Listing your property with a multiple listing service. A multiple listing service is a book or computer database that provides subscribing real estate agents with access to listings across a large geographic area.
- Making suggestions to help make your home more “saleable.”
- Creating, paying for, and placing advertising for your home.
- Scheduling appointments to show your home to prospective buyers even when you are not there.
- Pre-qualifying potential buyers.
- Helping you negotiate with the buyer.
- Helping you understand the paperwork.
If you decide to use an agent, ask friends and neighbors for recommendations. Talk to several agents before choosing the one you want to work with.Walk through your home with an agent to get a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home, and ask them how they would price it. Don’t sign with an agent just because he or she suggests the highest asking price. Negotiate the broker’s commission prior to listing your home, and sign for the shortest period of time possible—usually three to six months. And, of course, make sure the agent you choose has a personality you feel comfortable working with.
Setting a Fair Price
Naturally, you want to get the best price for your home. But setting the price too high may mean your property is on the market for a long time, and you may be forced to reduce the price later — things that often make buyers think twice. Here are some things to consider when pricing your home.
- Location – how desirable it is (e.g., good schools and public transportation).
- Current economic conditions (e.g., how good is the real estate market in general).
- Your home’s extras – pool, fireplace, central air, etc.
- How many other houses are for sale in your neighborhood?
- Comparable home prices in your neighborhood.
If you need help to determine a fair selling price for your home, ask the advice of a real estate agent or professional real estate appraiser. In general, realtors provide an appraisal at no charge (e.g., often called a “market analysis”). You can ask realtors from two or three different agencies to prepare market analyses so that you can get a broader picture of the market. If a realtor does an appraisal for you, ask to see the listings of at least three neighborhood properties comparable to your own that have sold in the past six months. If you hire a professional real estate appraiser to help price your home, ask the appraiser in advance to tell you what you’ll be charged, and ask for a detailed explanation of the information that will be used to establish a price.
Legal and Tax Advice
When you sell your home, particularly if you are selling on your own, it’s a good idea to be represented by an attorney. Choose an attorney with expertise in real estate transactions. When a potential buyer puts an offer in writing and you accept it, the signed acceptance becomes the sales contract. Your attorney should review the contract before you sign, and be present at the closing to protect your interests.
Selling a home can have a major impact on your federal and state tax liability. In most cases, you can exclude up to $250,000 in capital gains ($500,000 for married couples filing a joint return) on the sale of property that was your principal residence for at least two years. Check with a tax advisor for specific information on the tax implications of selling your home.