How to Sell a House

Like buying a home, selling one is a significant project. Even if you plan to use an agent, it's in your best interest to understand all the various elements that contribute to a successful sale. The more you know, the more cash you'll pocket in the end. Think of your preparation as money in the bank.

Instructions

Difficulty: Challenging

Get prepared

1. Decide if you want to use a real estate agent or not. A selling agent generally receives 2.5 to 3 percent of the sale price. In return, he or she should work aggressively to sell your home and list it in the Multiple Listings Services (MLS) where it can be seen by other agents. On the other hand, you may be able to save several thousand by handling the marketing of your home on your own. Read How to Sell a House Without a Real Estate Agent and pay particular attention to the time involved.
2. Get recommendations from satisfied friends and acquaintances and interview several agents who specialize in your geographic area. Get a feel for their approach and how proactive they'll be in marketing your home. Have them outline their strategy for making your home as attractive as possible.
3. Review current listings in your area and set a strategic asking price. Your agent should get comparative prices on nearby homes and do a market analysis taking into account the size, location, condition and other elements to price it accurately. Ask to see the analysis so you understand how the agent established the asking price.
4. Confirm that the house will be listed in the MLS, that it will have an online presence, and that a professional-looking fact sheet will be prepared to help market the house.
5. Alert your neighbors that your house is going on the market. Hold a pre-open house, give a tour and ask for their help in finding a suitable buyer. Many homes are sold by word-of-mouth through friends and neighbors, so make use of your contacts.

Get ready to show

6. Perform any needed repairs on the interior and exterior of your home and fix, paint or otherwise repair anything that may hinder a sale.
7. Increase curb appeal. Try to ensure that your home makes the best first impression possible. Clean the windows, cut the grass and weed the flowerbeds.
8. Remove any extra furniture, wall hangings, tchotchkes and trinkets that can be distracting to potential buyers--many homes suffer from "too much good taste." Remember, less is more. Give any walls that need it a fresh coat of neutral paint. Think about having your home professionally staged (see sites such as StagedHomes.com). This will cost you, but you can both shorten the sales time and boost the bidding with a well-staged home.
9. Place a "For Sale" sign in your front yard and have fact sheets readily available.
10. Hold an open house, instead of just showing the house by appointment only. This is standard practice for real estate agents, and they are the ones who set it up and handle it. It's not only great for attracting buyers, but agents will also see your home and, in turn, mention it to other buyers. If you are present during the open house, refer any questions to your agent.
11. Keep your house spic-and-span. Prospective buyers often appear with as little as a half hour's notice. Your agent will put a lockbox on your door to gain entrance without your presence.
12. Board your pets while the house is being shown. You love them, but they may cause an allergic reaction in some people, or distract, irritate or scare off potential buyers.

Make the deal

13. Establish your flexibility. Decide ahead of time how much, if any, you're willing to trim from the asking price to make a sale. Or, in a hot market, be prepared to deal with multiple offers. Consider financing the sale yourself.
14. Get psyched up to dicker. Depending on local market conditions, many buyers may not offer the full asking price the first time around. In a buyer's market, you'll need to determine what is most important to you--price, moving date, keeping the appliances--and get the best deal possible. That said, the first offer is frequently the best offer, so don't be unreasonable. In a seller's market, expect to get close to your asking price or over in a very short period of time. But be careful: Pricing your home too high could keep it on the market longer than you wanted, causing you to have to drop the price later anyway (see Step 4 below).
15. Weigh the pros and cons of multiple offers, if you're lucky enough to have them. Consider the offering price, how solid the buyer's financing is, whether the sale is contingent on the sale of the buyer's house, and the move-out date. Your real estate agent should be able to advise you.
16. Reduce the asking price if your home doesn't attract any offers. Start with a 5 percent drop and see if that boosts interest.

What to Look For:

• A suitable agent
• Realistic asking price
• An aggressive marketing plan

Tips & Warnings

• Ask how long your contract with an agent runs. Most are for 90 days, but can often be negotiated. If the house sits for too long unsold, find yourself a new agent.
• Research how fast homes are selling in your area. That will give you an idea of how long you may have to wait to sell your home.
• If you're buying another home, you can make that purchase contingent on the successful sale of your current home.
• Bake cookies or bread before the open house to take your marketing strategies to a subliminal level. If it's nice outside, open the windows to get a nice breeze blowing through and eliminate household odors.
• Be prepared to pay for various reports including pests, flood and insurability. They range from $30 to $300 each.
• Create a paper trail of all improvements. Not only will they increase the value of your house, but you may be sued if you fail to make a full disclosure of them during a sale. Take the disclosure process very seriously.