The Home Selling Process.

by Kim Climer

For the first time home seller, the process can be even more confusing than buying a home. Here are a few things to take into consideration.

Price it right! First and foremost the home must be priced right. There are two things that keep a house on the market way too long; price and condition. Listen to your agent. I know there is a magic number every seller wants to get from their property, but unless the market agrees, your home will not sell and will most likely help to sell your competition.

Sign the listing agreement, disclosures and other documents. One thing about real estate, we have lots of paperwork! Thankfully we can do most of it electronically these days. One of the most important documents you will need to fill out is the disclosure. Be honest and thorough. Don't leave anything out even if it makes the home look less desirable. Trying to hide a defect could get you sued.

Make the house ready. This is the second reason homes stay on the market too long. If you have competition in your neighborhood, a home with repair or aesthetic needs will help sell the neighbors house and cause you to be low-balled. Here is something to think about; if you need $2500 in new flooring and decide to take it off the price of the house, EVERY buyer will automatically double the cost! Instead of taking $2500, they will ask for a $5000 reduction. Not many buyers want to walk into their new home and start making repairs...unless they got a GREAT deal. Some of the easier things you will need to address to make your home ready to show are:

Exterior:

• Keep the grass freshly cut.
• Remove all yard clutter.
• Apply fresh paint to wooden fences if necessary.
• Paint the front door if necessary.
• Spruce up the front porch. Buyers spend a few minutes here while agents unlock the door. Look at your porch through the eyes of a stranger.
• Weed and apply fresh mulch to garden beds.
• Clean windows inside and out.
• Wash or paint home's exterior if necessary.
• Tighten and clean all door handles.
• Ensure gutters and downspouts are firmly attached and free of debris.

Interior:

• Remove excessive wall hangings, furniture and knickknacks. Consider a temporary self-storage unit. (Garage is okay for storage as well).
• Remove all valuables from the home, including guns, gun safes and any hunting related items.
• Secure all medications and personal items.
• Clean or pain walls and ceilings.
• Shampoo carpets.
• Clean and organize cabinets and closets.
• Repair all plumbing leaks, including faucets and drain traps.
• Clean all light fixtures.
• Consider putting in upgrades. A $5000 kitchen upgrade can net you $7500 to $10000! 
• And ALWAYS make obvious repairs! 

For showings:

• Turn on all lights.
• Open drapes in the daytime.
• Keep pets secure.
• Play quiet music.
• Light the fireplace if appropriate.
• Infuse home with a comforting scent.
• Vacate the property while it is being shown.

Open Houses. In the event your home is held open, you will need to make it ready just like any other showing. Open houses are a great way to get exposure and help market your home.

Offer is made, negotiated and accepted. Your agent will present all offers as they come in. It will be up to you if you want to accept the offer, counter the offer or decline the offer. Once you accept the offer, escrow is opened at the title company and you will be instructed on when the survey (if you have one) will need to be delivered and when and where you need to pay for the HOA resale package (if you happen to live in an HOA). The HOA resale package is typically paid for in advance and it can run about $350.

Inspection and negotiating repairs. The Buyer will be given an option period of 7-10 days. During this time, they will probably have an inspection. It's important to understand that rarely an inspection will come back with nothing on it. And it's equally important to understand that you, the seller don't have to make all repairs that are presented to you. It is also important to note that there are some repairs that the buyer's lender will require, such as foundation and roof. All others are negotiable. Of course if you want to sell your home, it stands to reason that you would want to be fair and sensible when you receive that repair amendment. Once the repairs are agreed upon, you will be told how long you have to complete them. You will need to get receipts and have those sent to the buyer's agent and title company.

Wait for the buyer to secure financing. During this time, the lender will order an appraisal. This is why it's important to price your home correctly. It doesn't matter if you get a great offer, if the house won't appraise. And if it doesn't then you will be then need to renegotiate the sales price. Also, if there are repairs the lender requires, such as foundation, exterior painting or roof, you will be given the option to make those repairs. Otherwise, the buy can opt out of the contract and get their earnest money back.

Move and clean home. Unless you have negotiated a lease back, you will need to have your things out and the home cleaned before you close.

Buyer will have a final walk through. This gives them the ability to see if all repairs have in fact been completed. Especially if they were handyman items that were done by you and there are no receipts to prove it. This is typically done 24-48 hours before closing.

Review the Settlement Statement or HUD-1 that the buyer's lender will send you. If you have any questions, call your agent or the title company.

Closing. This is the day everyone has been looking forward to! You will be instructed as to when and where to go for closing. You will need to bring a few things to closing such as:

• House keys, garage door openers and a photo I.D.
• Closing costs or any major repair costs will be paid from your equity. 
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Every item here many not apply to you. Each and every situation is different. But hopefully you get a good idea of what to expect once you put your home on the market.

If you are selling a home, there is a good chance you may be buying one too. Click here to read more about the home buying process. 

For a FREE market analysis click here and choose either 'contact me' or 'list my house'


Kim Climer, Realtor

Serving The Colony, Little Elm and surrounding areas.
Coldwell Banker Apex, #590914
Kim mobile 214-542-1507
www.kimclimer.com
kim.climer@coldwellbanker.com