Carefully consider each of the 10 proven STEPS
specific way you progress through a real estate transaction varies
depending on the real estate laws and customs where you live, but
there are many steps that are standard, even though they might not
be accomplished in the same order in every location.
feel more confident about your home selling journey when you
understand what is required of you and every other person who is
involved in the transaction. Use this guide to get organized.
There are some important steps that all home
sellers should take before they put their homes on the market.
1. Get Pre-Approved for a Home Loan
I've known sellers who signed a contract to
sell their house before they knew if they were qualified to buy another. Either
their financial circumstances had changed since their last purchase, and they
could no longer qualify for a loan, or they weren't able to sell at a price that
allowed them to buy the type of replacement house they wanted. They ended up
renting or buying something that was far from ideal. Market sets the selling
Before you decide to sell the house,
pre-approved by a lender you trust and research the housing market in the area
where you wish to live so that you have a good idea how much it will take to buy
How To Start Researching
Start looking for two types of real estate: houses that seem to match the one
you'd like to buy and houses that seem similar to your current home. How do the
two categories compare in price? Can you handle the difference if you're
planning a step up?
Pick up free For Sale publications outside
the grocery store, or wherever you find them in your town.
Search the Internet for homes for sale in
your area and read real estate ads in your local newspapers. Contact me
find house locations, as you drive around, you will come across homes
2. Check Your Mortgage Payoff
Make a call to your lender to check the payoff
for your current home mortgage. You'll need this figure to complete Step 6.
3. How Much Is the House Worth
Determine your home's fair
market value. Your Real estate agent should help you determine value as a courtesy,
but you might prefer to order an appraisal.
Do both of the above if you want to be
sure the price is right.
4. Estimate Your Costs to Sell
5. Determine Your Costs to Acquire a New Home
Real estate commission.
Attorney, closing agent or other
Prorated costs for your share of annual
expenses, such as property taxes, home owner association fees, and fuel
Any other fees typically paid by the
seller in your area (surveys, inspections, etc.).
If you are unsure of costs, ask me. As a
real estate agent, I deal with transactions every day and can give you a
very close estimate of seller closing costs.
Total your costs to acquire a new home:
moving expenses, loan costs, down payment, home inspections, title work
and policy, paying for a new hazard insurance policy--all expenses
related to buying a home. Your lender should give you a disclosure of
estimated costs when you apply for pre-approval.
6. Your Estimated Proceeds Calculation
Deduct your mortgage payoff from your home's
fair market value.
Deduct your costs to sell from the remainder to
get an estimate of the proceeds you will be paid at closing.
Will your closing proceeds cover your costs to
acquire a new home? If not, do you have cash or other funding to make up the
7. Necessary Repairs to Make
Make all needed repairs unless you want the
house to be regarded as a fixer-upper. I'm not referring to cosmetic updates,
but to items in need of repair. Anything that's obviously broken gives potential
buyers a reason to submit a lower offer.
8. Get the House Ready to Show
Most houses need at least a little spiffing up
before they are shown to potential buyers. Great curb appeal, fresh paint
indoors (and sometimes out), organized closets and cabinets, sparkling clean
windows and appliances, and a clutter-free atmosphere are essential if you want
the house to appeal to buyers.
9. Get Psyched Up to Let People In
As your real estate agent I suggest you leave
when the house is shown. Why? Because lurking sellers make buyers nervous--they
don't feel comfortable inspecting the house when they feel they are intruding.
Unless there's a real reason for it, I will not
be present for all showings. That's the kiss of death for the best showing
rates. Other agents want privacy with their buyers and they don't usually have
time to work around my schedule.
Make the house accessible. That means it's
always ready to show. Many agents won't bother showing a house that takes 24
hours to get into.
10. Get Ready
to Move! Contact Me!