Preparing to Sell

If you've been thinking of selling your home but are confused or overwhelmed with the prospect of what to do or where to start, then read the short articles below. These articles which first appeared in my "Monthly Market Dashboard" summarize the major steps required to prepare your home for a succesful sale.

Step 1: Fixing Up

Back in the boom days of the real estate market it was very common for homes in any condition to sell within a few days, sometimes with multiple offers and above the asking price. In today’s market, most Buyers are looking for a home in “turn-key” condition and competitively priced. Let’s focus on “turn-key”: a home that doesn’t require major or immediate repairs or correction of any deferred maintenance. If you’re thinking of selling in the months ahead, walk around your home now with a critical eye. Make a list of all the things you’ve been living with that need some attention. Maybe it’s worn carpeting, faded or peeling paint, missing caulk around bath fixtures, leaky faucets, stained sinks, tubs or showers , window coverings in need of cleaning or landscape in need of trimming or upgrading. Or, maybe it’s something more serious like a furnace that’s worn out, a roof that leaks or an appliance that no longer functions. Whatever needs repairing or replacement, this is the time to begin to take action. Does this mean you should do a major remodel of a bath or a kitchen? Usually no, because it’s unlikely you’ll recoup the full cost, but often for much less cost, you can repair, update and freshen up with some paint, new flooring, hardware and perhaps a fixture replacement or two. If you’d like some help compiling your list of fix-up items or identifying handypersons or contractors to do the repairs, call or email me. I’m always happy to help.

Step 2: De-Cluttering

Last month I talked about step 1 which is fixing up and repairing. The next step to preparing your home for sale is de-cluttering. This can be challenging when you’re still living in your home but it’s absolutely essential to a successful sale. Remember the last “model home” you toured?...minimal furniture in each room and just a few tasteful , coordinated accessories. The idea is to show each room’s potential and appeal without over-personalizing it. So remove all but essential furniture, particularly more massive pieces in smaller rooms as well as extraneous end tables, chairs and accessories. Pay particular attention to minimizing the number of wall pictures and decorations and eliminating clutter from all horizontal surfaces like tables and counters. If you have room, store it all in the garage since most buyers expect the garage to be full of stored items anyway. If your garage is already full, consider renting a storage unit for a few months or holding a garage sale. Next, make your home as bright and cheery as possible by eliminating any heavy window coverings, trimming any landscaping that blocks windows, opening blinds or draperies to let the daylight in and installing high brightness bulbs in your light fixtures. Lastly, give your home a thorough spring cleaning including window and floor coverings. Not sure where to start? Call me; I’m happy to walk through your home with you and prepare a list of de-cluttering suggestions that will help you to enhance your home’s sales appeal.

Step 3: Inspections and Disclosures

Both California and federal law mandate that sellers provide buyers with a multitude of disclosures to ensure the buyer is fully informed of the home’s condition as well as any issues with its location. Besides the Transfer Disclosure Statement which discloses material issues affecting the value of the property, the seller must provide disclosures for natural hazard zones, property tax data and environmental hazard sites. Other required disclosures include title condition, smoke detector and water heater installation, lead-based paint, insurance claim history, Megan’s Law and others depending on the particular property. To protect yourself from any failure-to-disclose liability, you should always order professional inspections to ascertain, document and disclose any defects or issues that you may not be aware of. As a minimum, you should include a Property Inspection Report and a Pest Inspection (Termite) Report in your disclosure package. Other inspection reports which could be recommended include: Foundation, Chimney/Fireplace, Roof, Pool and Equipment or others. Providing prospective buyers with a comprehensive set of inspections and disclosures up-front maximizes the likelihood of a smooth, surprise-free transaction and minimizes your liability. Sound daunting? It isn’t...I’ll work with you to assure that all required inspections are ordered and completed and that a comprehensive, professional disclosure package is provided to all prospective buyers. 

Step 4: Setting the Listing Price

Establishing the correct listing price is much more critical now that the market is more balanced between Buyers and Sellers. Buyers have easy access to the entire inventory of listings including home parameters, photos, days on market and pricing, via MLS applications on their computers and smartphones. Consequently, Buyers are choosing the best homes at the best prices while other homes often languish, waiting for a reduction to a more competitive price. The traditional method of establishing a home’s market value is with a Comparative Market Analysis (CMA). A CMA shows the listing price for similar homes in the area as well as sale prices for homes which have recently sold. What’s similar? Ideally it’s a home approximately the same size, age, style and condition and within the same general neighborhood as yours. For “solds”, we look for recent sales that are representative of the current market. Ideally this is within the past six months though we sometimes have to include older sales. Price adjustments are then made to reflect differences in size, lot, condition or other differences. The result is an estimate of your home’s market value considering what recent Buyers have been willing to pay and what your current competition is asking. Notice that the process is blind to how much you may want or need. The CMA is impartial, analytical and imperfect but a useful guide and we’ll use it to help establish the best initial listing price. With a competitive price and an aggressive marketing plan, your chances for a successful sale will be maximized.

Next, Step 5: Implementing the Marketing Plan