Part 1 - The Basics

Carefully examining why you want to sell is crucial because your motivations play an important part in the process. They influence everything from setting a price to determining how much time and money you'll invest in getting your property ready for sale.  For example, which is more important to you: the profit you walk away with, or the length of time your property is on the market?  If your aim is a quick sale, that can dictate one kind of approach. If your desire is to maximize your profit, the sales process will usually take longer.

Your reasons for selling will influence the way in which you negotiate the sale of your home - but need shared with everyone in town!  For example, a prospective buyer who perceives that you must move quickly might have the upper hand in the negotiation process.  When questioned - even by friends and co-workers - simply state that your housing needs have changed.  Your reasons are of no one's concern but your own.

Carefully consider your listing price strategy.  Once you have set your price, you have told prospective purchasers the absolute maximum they will have to pay for your property. The objective for your sales representative is to get a selling price as close to your offering price as possible.

If you begin by pricing too high, you might not be taken seriously by prospective purchasers and their agents. Starting too low, could result in selling for less than market value.  But establishing your home's sale price can be reasonably easy.  If you live in a subdivision consisting of homes with similar floor plans, built around the same time, the asking prices for the recent resales in the neighborhood should give you a good starting point.

However, this could pose a problem for people who live in older neighborhoods or "custom built" homes.  Every home in your neighborhood may be different - in insignificant or substantial ways.  The house next door may have added an office, for example, or the one across the street might have been built recently to occupy a vacant lot. As a neighborhood evolves over the years, you may find that there are less and less homes that are truly comparable to your own.

This is where your Realtor comes it.  A good Realtor will do the necessary market research to provide you with comparisons showing where your home should be priced to best meet your goals - a fast sale, maximum profit, etc.  A great Realtor will also be attuned to certain market conditions that may not be evident from comparable sales and listings - and have the tools, training and experience to make your home sale easy, profitable and fun!

Tip No. 4 - How to Find a Good Realtor

Almost two-thirds of the people who try to sell their own homes say they wouldn't do it themselves again, according to research by the National Association of Realtors.  Many of those surveyed found that there were difficulties in determining a price, had a hard time "getting their property noticed," were uncomfortable with negotiations or getting the documents ready to close.  There were also liability concerns and, quite often, selling a home privately just took more time than they had initially expected.

When you decide to work with a Realtor, contact two or three. Explain to each that you're thinking about putting your home on the market and you'd like to meet to talk about pricing and marketing.  By having this group “evaluation” done, you should end find a realtor your comfortable with and a fairly idea of current market conditions and prices.

If one realtor's market price is substantially higher or lower than the others (say 15% or more) you should ask them to explain the estimate.  In other words, an exceptionally low price might have omitted crucial data, but agents who give you a very high price might be trying to "buy your listing." 

Educated realtors know about the current market, your neighborhood and research your house in particular. They will supply you with information on past sales, current listings, a marketing plan, something on their own background, and references from past clients. Take the time to carefully evaluate candidates on the basis of their sales experience, negotiating abilities, qualifications, enthusiasm and personality. 

And a realtor who does not do their homework and simply "throws out a price" - well, that is not very helpful, is is? 

Tip No. 5 - Go Home Shopping Yourself

Once you have chosen your realtor, ask them to take you "shopping."  Get to know your competition and preview other homes on the market.  Identify their particular strengths and weaknesses.  Spend a weekend, or two, at local open houses.  Make particular notes about the floor plan, condition, appearance, lot size, location and other features.

When you visit these homes, be observant to the details (and hear what other 'buyers' are saying!).  This will give you a better understanding of how different features affect price. And you should apply what you learned to the task of setting (or adjusting) your price. 

But remember, active "comps" will give not give you the most important piece of information there is - actual sales date.  You must evaluate the prices at which other homes are actually sold, not just simply what they asked.  Because if you are serious about selling your home quickly, you should not be be more expensive than your neighbor.

You may find that sometimes you can use a good appraisal to benefit you in the marketing of your home or property. And if you get a certified appraisal, you can use it to let potential purchasers know what amount can be financed. However, you must determine whether the costs are worth it or not. Also keep in mind that it has a limited life.

In some cases people look to their tax assessments to assist them in determining a value - so do we. But there are a number of things wrong with this approach, for example assessments can be out of date.  They can also fail to account for, or overvalue, improvements made to your home.  In fact, it is common to find two identical homes in the same neighborhood with drastically different tax assessment values. 

Tip No. 8 - Give Yourself Room to Negotiate

 When pricing your home you should leave yourself some room with which to bargain.  If your asking price is unacceptable to a prospective buyer, and their first offer is unacceptable to you, you will probably want to have some negotiating room. Start with the absolute minimum price you would accept, then pick the price you'd get if the world were perfect. This gives you your range to keep in mind when working with your Realtor to negotiate the sale. In setting your asking price, review your priorities. Do you want to maximize your profit or sell quickly? You will price high if you want to maximize your profits, or close to market value if you want to sell quickly.

The key to effective marketing is understanding your product's good and bad points. In the case of your home, accentuating the good can mean a faster sale for more money; failing to deal with the bad can mean months on the market and a lower-than-desired sale price.

One of the biggest mistakes sellers make is relying on their own judgement and personal feelings. Remember this is YOUR HOME, a place of fond memories. There are bound to be emotional and personal issues that can impair your ability to make an honest assessment of your home's strengths and weaknesses.

In assessing what improvements you can make, you should ask others for their opinions. It is important that the person gives an honest answer; some may try to spare your feelings, and that is just what you don't need. Fortunately, your Realtor won't be shy in discussing what should be done to make your home more marketable. 

The step that squeaks, the light switch that doesn't work, the crack in the drywall —they might be minor irritations to you, but they can also be deal-killers. The problem here is that you never know what will turn a buyer off.  And even something minor that's gone unattended can suggest that perhaps there are bigger, less visible problems present as well.

Selling a house is a very different experience from living in a home.  If you have ever toured someone else's home, you may have felt uncomfortable. You may have seen, heard or sensed something that made you feel like you were intruding into someone's life.

And that is the last thing you want prospective buyer to feel when they visit your house.  You can avoid this by making your home as neutral as possible. Anything that interferes with a potential buyer's ability to see themselves living in your home must be eliminated. Carefully chosen decorations or family portraits may add warmth and character to the home, but too many are a distraction. Avoid unique or trendy colour schemes — paint and carpet in neutral shades of white or beige.

While personal items can detract, other small touches can help make your house a home to buyers. A well-placed vase of flowers, accent pieces of sculpture, potpourri in the bathroom — all can enhance the attractiveness of your home in a subtle, soft-spoken way. You may get more helpful tips in home magazines.

All traces of food, pet and smoking odors must be eliminated.  Even when you are not there, do not encourage prospective buyers to imagine things. If they know you’re a smoker or that you have a dog, they’ll start smelling odors and seeing stains that may not even exist.  Pet away pet dishes or sleeping crates.  Hide ashtrays.  Be safe — don’t leave any clues.

Smart sellers proactively go above and beyond the laws to disclose all known defects to their buyers —in writing. If the buyer knows about a problem it is harder for them to file a lawsuit later on.

Marketing strategies specifically designed for the client can maximize your home’s marketability, and will increase your chances of attracting more than one prospective buyer.  Why is this better? Because several buyers competing for the same home will not only increase the sale price, but they can effect closing dates and your home may even sell quicker.

The limit of most people’s experience in the art of negotiation begins and ends at their local auto dealership. And we all have unpleasant memories of haggling with car salesmen. It is important that you let go of the emotional side of the negotiations and approach the negotiations in a detached, businesslike manner. Then you will find the process to be a lot less painful. In fact, you might even enjoy it — and you’ll definitely have an advantage over prospective buyers who get caught up in the emotion of the situation.

In the negotiation process, your objective is to control the pace and set the duration. And the better you know your buyer, the more easily you can maintain control. As a rule, buyers want the best property they can afford for the least amount of money. But knowing specifically what motivates your buyer enables you to negotiate more effectively. Maybe your buyer needs to move quickly. Or the maximum amount he can spend is just a little below your asking price. Knowing this information puts you in a better bargaining position.

Tip No. 20 - Find Out When the Buyer Would Like to Close

If possible, you should avoid closing a deal on your new home before your present home is sold. The reason for this is that you (in the eyes of the buyer) then turn yourself into a seller who is eager (or desperate) for the first deal that comes along.

Studies have shown that it is more difficult to sell a home that is vacant —it looks forlorn, forgotten, simply not appealing. It could even cost you thousands. If you move, you’re also telling buyers that you have a new home and are probably motivated to sell.

Forcing yourself to sell by a certain date adds unnecessary pressure and puts you at a serious disadvantage in negotiations.

An initially low offer should not be taken personally or seriously.  First offers are often below what both parties know the buyer will end up paying for your property.  Don’t get angry or feel insulted; evaluate the offer objectively. Make sure it spells out the offering price, amount of down payment, mortgage amount, a closing date and any special conditions or special requests. This now gives you a point from which you can negotiate.

If you feel an offer is far too low, this would be a good time to make sure the buyer has been qualified to carry a mortgage of this size (if you haven’t learned this already). Ask how they arrived at their figure, then suggest to their agent that they use comparable sales to establish what homes are selling for in your neighborhood.  You might also ask for a current pre-qualification letter, if they have not provided one already.

Tip No. 26 - Make Sure the Contract is Complete

Resist the temptation to deviate from the contract. For example, if the buyer asks to move in prior to closing, just say no. Now is not the time to take any chances of the deal falling through. If this all sounds like a lot of work, it is. But it’s to be expected when you’re selling anything of such great value. And you’ll thank yourself for all the expense and hard work when the outcome works to your satisfaction.