Are You Ready...to Sell?

Determine the "right" time to sell.
Spring and fall are usually the hottest home-shopping periods, but the downside is that a glut of products makes it hard for yours to stand out. While your location can be a factor (i.e., it's easier to sell a Los Angeles home in the winter), some elements of timing remain constant. For instance, the last week of December will probably never be a good time to show your house. 

Prepare yourself for the costs involved.
Selling a home can cost about 15% or more of the total sales price, depending on the equity you have, according to House Selling for Dummies by Eric Tyson and Ray Brown (IDG Books). Checking your equity is an important first step in preparing to sell your house. 

Decide whether you will conduct a "FSBO" (for sale by owner) or hire a real estate agent.
while selling your own home can save you thousands in commissions (about 5% to 7% of the sale price), the process is time-consuming and often frustrating to the novice. According to the National Association of Realtors, more than half of the people who do sell their own home say they would not do it again. 

If you hire a real estate agent, do so thoughtfully.
Interview several candidates and check references. The National Association of Realtors (NAR) suggests that you ask prospective agents to create a comparative marketing analysis, a marketing profile, and a suggested list price for your home. You'll need to sign a contract, which can generally last anywhere from 30 days to 6 months, so be 100% confident in your agent. 

Settle on a reasonable sales price.
Research what comparable properties in your neighborhood have sold for before setting your price. After you've collected enough information, consult with your real estate agent, or consider hiring an appraiser. 

Leave some room for negotiation.
For example, if you aim to get a minimum of $200,000 for your home, set your price at about $210,000 to $215,000. Make sure you consider current mortgage rates, which are a major factor, and recent home sales. 

Develop a marketing plan.
Or, if you hire an agent, review his or hers. Determine where you want to advertise and establish a schedule of open houses. Create home profile sheets that prospective buyers can take with them. These should contain appealing photos and brief descriptions of all your home's features. Make sure you let your friends and family know that you are selling, which can be often be most valuable in finding potential buyers. 

Consider MLS Listings.
MLS Data (Multiple Listing Service) is collected by real estate agents around the country. While MLS data looks comprehensive, keep in mind that not all MLS are the same. In fact, neighboring real estate franchises have occasionally been known to feature conflicting information. 

Surf the Web.
A NAR survey released in January 2000 found a twelve-fold rise in the number of Internet home shoppers during the previous three years.  There are plenty of other real estate sites worth checking out. However, not all real estate sites are created equally, so surf wisely. 

Stay connected to your neighborhood.
It helps to know if 10 homes around the corner have gone up for sale after you planted your sign. When possible, and within reason, make sure you know what they're selling for, who's representing them, and what kind of successes and failures they've had. 

Check your home's "curb appeal."
Trim the lawn and shrubs, keep your gardens neat and healthy, and repair visible damage. Always keep clutter, including trash barrels, out of sight. 

Clean up the inside of your house as well and make sure it stays that way.
Store clutter away, and make sure that any plants and flowers are fresh and healthy. Make cosmetic improvements, such as repairing cracked walls and applying a fresh coat of paint. If you have pets, keep your house free of pet messes and odors. If possible, keep pets out of sight during showings. 

Disclose defects and past damage, such as a faulty roof or flooding.
Be careful to avoid misrepresentations. Also, disclose the items you intend to take with you, such as refrigerators, chandeliers, and dishwashers. In selling your home, honesty is not only the best policy; in most states, it's the law. 

Familiarize yourself with the paperwork involved.
From the listing agreement and the disclosure statement, to the sales agreement and the settlement statement, selling a home involves enough literature to wallpaper a living room. Know what to expect and make sure you understand what you receive. 

Consider retaining an attorney.
For as little as a few hundred dollars, a qualified real estate attorney can provide valuable advice and review the reams of documents involved. 

Make sure you know where you're going next.
Make sure the next place you are moving, whether a rental or purchase, is ready to accept you 

Be patient.
Although there may be a flurry of activity during the first month your home is on the market, it could take several months to close a deal.