Preparing your Home for Sale



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Preparing your Home for Sale

*3 Rules of Success*

When you make the decision to sell your home, you need to make the mental switch from owner/occupant to the role of a dealer/seller. You will need to change the way that you view your “home”—as a place where priceless memories were created, and which still live on--to the way that you would view a commodity—a house—a shelter with measurable features, that holds a value that compares with all other “houses” in the same community.

The three essential elements of a successful sale are: Price, Condition and Marketing. The seller needs to select a listing price that is based on the current market and which reflects the condition of the property and its features in its current location. Nearly every house will sell if it’s priced right! The seller also controls the condition of the house. The suggestions contained in this article are for sellers who want to maximize the likelihood of selling their house and for the maximum possible price. Marketing is the process of exposing the property to the maximum number of qualified buyers in a manner that stimulates their desire to make a personal inspection.

Rule #1--Setting Your Price[pic]

Just a few words about setting a price. Imagine that your 2000 square feet of house, is actually 2000 shares of IBM stock. When you bought the shares, they were $85 each ($170,000). During the time that you owned them, they went up to $90 each ($180,000), dropped to $79 each ($158,000) and they are currently valued at $83 each ($166,000). Guess what the current market value is? $166,000 or $83 each! In today’s market, it doesn’t matter what the value was at any other point in history—only what today’s market value is (if you need to sell today!). Now there are some weaknesses to this comparison. The value of unfinished square feet in a basement would be considerably less than the value of finished square feet in the living areas of the house. If you converted unfinished square feet to finished square feet during your ownership, you would have increased the value of the house—by adding shares of full value stock to your portfolio--and your listing price would be higher than if you had made no material improvements. However, the value is determined by the market. Your house will sell for a price that is directly related to the recent selling price of other properties in your marketplace. If you don’t price it right, it will not sell.

Talk to your Realtor( about a Current Market Analysis, and use this price range to set your listing price.

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Rule #2--Improving the Condition[pic]

There is nothing like a good first impression to drive a sale. There is nothing more lasting than a bad first impression. Remember, “You never get a second chance to make a first impression.”

Outside

Begin the process of readying your house for sale by stepping outside and evaluating the property from curbside. Trying to be objective, ask yourself what a newcomer will notice as they drive up to the property. What is the general first impression?

• Has the exterior of the house been well taken care of?

• How does it compare with the other homes in the neighborhood (if applicable)?

• Has the landscaping surrounding the house been maintained?

• Do toys, tools, or trash litter the landscape and detract from the appeal of the house?

Complete your inspection by walking around the house and into the back yard. Remain critical! Keep in mind that you are pretending to wear the shoes of a potential buyer. You are also following a path that will be walked by a home inspector or other individuals hired by the buyer to give professional opinions about the property’s façade and exterior characteristics. Prepare a list of action items that will need attention immediately and that can be completed without undue cost.

Inside

Conduct the internal inspection starting at the front door and walking through the house as a buyer might. At each threshold stop and review individual rooms to gain a general first impression. Make a list of action items pertaining to the inside of the house. Things to watch out for include:

• Clutter - Piles of newspapers, magazines, toys and other objects, and even mail distract from the fine points of a room and contribute to making the room seem smaller.

• Poor lighting - Inspect those things that contribute to the brightness of the room. Open curtains and shades, make sure windows sparkle from inside and out, replace burned out light bulbs, and wipe down walls that contain smudges or marks. Good lighting can contribute to a feeling of spaciousness.

• Dirt - It appears in obvious places like heavily trafficked kitchens and baths, and some inconspicuous places that a serious buyer could investigate such as under furniture and appliances, in closets, on windowsills, and inside of cupboards. If your property is in a competitive market, it is strongly recommended that you hire a professional cleaning service to completely clean your house. A clean house gives the impression of being well cared for and offers a subtle assurance to most buyers.

• Too much furniture - This is often a problem when you have occupied a property for a number of years. In some cases, moving furniture from one room to another or removing certain pieces altogether can greatly improve the look and feel of a room.

• Poor decor - Keep an eye out for shabby fabric, colors that clash, or decorations that are so personal that they make the buyer focus on you rather than on your property. Also keep an eye out for empty spaces that could be filled by inexpensive silk flowers or plants, or other decorations that would spruce up the room.

Improving the Condition Summary

Make a list of positive and negative features of each room and prepare to maximize the positives. Write down the finer points of the home and provide this information to your Realtor( to be used in creating promotional materials.

If you feel that there are major upgrades or changes that must be completed in order for the house to sell seek the advice of a real estate professional to get a second opinion before you invest your money on renovations. Unfortunately, in markets where there are more listings than buyers it is sometimes necessary to complete major repairs even though the cost will not be recouped through the sale of the house.

If your goal is to sell, you will have to do whatever it takes to make sure the house sells. Stay focused on the goal. The process of preparing your house for sale requires a critical eye, an impersonal attitude, and in some cases, nominal money. Do it right, and you will be rewarded by a timely sale!

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Rule #3--Successful Marketing[pic]

Effective marketing of your house will deliver qualified buyers to your front door, but only if the price and/or conditions are right. No intelligent buyer will spend more for a property if there are other substantially equivalent properties for less money (unless Elvis lived there once!). And if you’re counting on the less-intelligent buyers, there are lender’s appraisers who protect them by killing any deal that doesn’t hold up to a current market value appraisal.

The goal of marketing is to expose your house to the largest number of possible and probable buyers as efficiently and enticingly as possible. A skilled Realtor( will employ some or all of the following:

1. Multiple Listing Services (MLS)

2. Other Internet Websites

3. Newspapers

4. Flyers

5. Lawn signs

6. Property Tours

7. Open Houses (if appropriate)

8. Professional networking

9. Skywriting, Hot Air Balloons, Commercial Television, etc., etc.

It is possible to do-it-yourself and market your own home, but few non-professionals can reach the numbers of potential buyers that a skilled Realtor( can reach. In a buyer’s market, sellers need every marketing advantage to get their house in the face of as many buyer’s as possible. Additionally, a Realtor( can screen buyers before they wander through your house. This can translate into increased security for you, and it doesn’t waste your time or effort on looky-loos who aren’t qualified to buy a home in your price range.

How to Judge Marketing Effectiveness—a Rule of Thumb

If few or no buyers visit your house during the marketing period, it is most likely over priced. If many buyers tour your house but make no offers, it is most likely the condition of the house. Fix the condition or lower the price to neutralize the deterrent value of the negative condition.

In Conclusion . . .

Focus your attention on setting a fair market price, and upgrading the condition of your house. Work with your Realtor( in creating an effective marketing campaign. Make adjustments if necessary. Visit other homes in your price range to better understand your competition—and make yours a better deal. Don’t give up, and your house will sell!

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Kelly Kremer, Associate Broker

RE/MAX Platinum

1185 N. Main, Tooele, UT 84074

kelly@



435-496-0530 (mobile)

435-882-8868 (office)

435-882-4494 (fax)

This document was compiled for your use by Kelly Kremer. The materials contained herein were written by Kelly Kremer and others.

34 Tips For Selling Your Home

It may be too late to finish the basement, remodel the kitchen, or add another bathroom, but you can improve the market value of your house. In selling your home, it is essential to attract as many qualified buyers as possible. In preparing your home for sale it is important to look at your home as a buyer will. People buy what they see. So look at your home as if you were in the buyer's shoes. Make your home as appealing and uncluttered as the home you would like to buy. If you can afford to spend a little time and money now, you will increase the likelihood of selling and for more money (sometimes significantly more money!).

OUTSIDE

1. Mow the lawn, trim trees and shrubs away from the house. You can’t sell a house if you can’t see it. Rake leaves, remove dead plants, flowers or shrubs.

2. Put away tools, garbage cans, hoses, toys and building materials neatly in the garage.

3. Check for broken roof shingles, straight lines on gutters, shutters, windows and siding.

4. Clean windows and front door. Paint if needed. (Consider painting the door a bright contrasting color—Yellow, Red, Green, Purple, etc.)

5. Seal or resurface the driveway.

6. Clear patios or decks of planters, flower pots, charcoal and barbecues.

7. In the front yard, dress up around shrubs and lamp posts with large decorative stones, railroad ties, bark or mulch, etc.

FOYER

8. Use bright bulbs in foyer light fixture.

9. Turn on all lights in home in the evening to welcome potential buyers.

10. Fill the house with the pleasant aroma of cinnamon, or another fresh scent.

11. Spotlessly clean woodwork, carpeting, and windows throughout the house.

12. Clear window ledges of all objects to give a nice glimpse inside and out.

13. Repaint walls if necessary, in a neutral color such as antique white.

LIVING ROOM

14. Discard worn furniture and move extra to storage area. Too much furniture makes rooms look small.

15. Visit a model home to get decorating ideas.

16. Clear away all magazines, books, and unnecessary objects from furniture throughout the house.

17. Take down pictures that hide walls. Patch nail holes and paint.

18. Add lamps and lighting if dark.

19. Open curtains.

20. Set out fresh flowers.

KITCHEN

21. Professionally clean oven and stove.

22. Replace broken appliances and repair squeaks, drips or binds in cabinet doors and drawers.

23. Clean all appliances inside and out until they are spotless. Wax and polish floors.

24. Discard old food and leftovers from refrigerator.

25. Clear refrigerator front of messages, pictures, and magnets.

26. Clear all counter tops. If it hasn’t been used in months, put it away.

27. Clean all magazines, small appliances, and cookware from countertop.

OVERALL

28. Replace outlet and light switch covers if old covers are cracked, painted, or mismatched.

29. Replace door-knobs if needed (locksets, passage sets, privacy locks).

30. Repair, rehang, or replace closet doors if needed.

31. Professionally clean or replace old carpeting.

32. Remove personal items from view (family photos, trophies, etc.). Replace with generic artwork, plants, vases, etc. (decorate like a model home).

33. Consider moving half (or more!) of your possessions into a storage unit. This will make your house look more spacious, and it will make it easier to move out quickly after closing the sale!

34. If you have pets (cats & dogs), you have smells. Consider moving them out while you are marketing your house. If that isn’t possible, stay on top of litter boxes or “yard droppings”. If your dog(s) are hostile to strange visitors, again, consider moving them out. If an agent shows your home while you are away, you don’t want the liability of your dog attacking a potential buyer.

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Kelly Kremer, Associate Broker

RE/MAX Platinum

1185 N. Main, Tooele, UT 84074

kelly@



435-496-0530 (mobile)

435-882-8868 (office)

435-882-4494 (fax)

This document was compiled for your use by Kelly Kremer. The materials contained herein were written by Kelly Kremer and others.

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