You can play an important part in the timely sale of your home. Use this checklist to familiarize yourself with the steps of selling a home and to track your progress.
- Develop a home-selling plan - Create a set of clear goals, including how involved you want to be in the selling process. Make sure that this is the right time for you to sell. Evaluate market conditions and your reasons to sell, as well as alternatives such as home improvement or refinancing. Once you have worked through these steps, choose a listing agent to help sell your home.
- Consider investing in a pre-listing inspection - Eventually your buyers are going to conduct a home inspection. By investing in your own inspection beforehand, you will know what they are going to find by getting there first. It may also help you identify important repairs you will need to make while giving you time to make the repairs yourself or find a reasonably-priced contractor. In addition, adding professional supporting documentation to your disclosure statement may reduce your personal liability.
- Get the house in showing condition - Think about what will be important to you when you look for a new home. Check all the areas you would notice in a home walk through and make list of necessary repairs. Even small cosmetic improvement can increase your home's value. First impressions are important, so be sure to improve your "curb appeal" by adding flowers to walkways, trimming the shrubs and painting, even if it's just the side of the house that shows from the street or the front door. You should also consider painting inside as well. Most experts agree that plain white is best. Little details like clean windows, polished fixtures, and new plants can really make a difference. It's also important to get rid of clutter. Remove extra chairs and tables to make rooms look more spacious and clear off kitchen counters.
- Decide what goes and what stays - Before you start showing your home, decide what will be included in the sale. If you want to take your washer and dryer, and your refrigerator with you, tell serious buyers before negotiations start. You can add considerable value to your selling price if you plan on including larger appliances. Leaving behind the custom cushions and drapes designed for a window seat could also be an attractive selling point.
- Price your home - Set a realistic price. You want your home to sell in a timely fashion, not make buyers speculate on why it is just sitting on the market. Check the selling prices of similar homes in your area. Do research on the market conditions, as well. Consider getting a home appraisal. Once you have decided on a price, stick to it. Understand the difference between negotiating and selling yourself short.
- Market your home - Work with your real estate agent to advertise with signs, newspaper and online listings. Be available for open houses and walk throughs. Since it may be difficult to keep your house in pristine showing condition, you may want to schedule as many as possible over a short period of time. You should also be obtaining the necessary purchase contract forms and, if desired, hiring an attorney to look them over. An attorney can also help you negotiate the best offer once a buyer has shown interest.
- Start looking for a new home - It's generally good advice to not begin the search for a new home until a sales contract is signed. No one wants to be stuck with the bills for two homes if the sale falls through. In addition, having two closings to deal with can make planning a move much more stressful. However, if you have to move in a hurry or you don't want to lose your dream house, there are options. A "bridge loan" allows you to use the equity in your old house to buy a new one. Or a contingency clause can be included that states that you will only buy the new home if the sale of your old home goes through.
- Close the sale - Now it's time to tackle all the paperwork:
* Choose an escrow company or lawyer to administer the closing.
* Deliver the legally required disclosure documents to the buyer.
* Meet required inspections.
* Receive loan commitment letter from buyer.
* Obtain title report (through escrow company or closing agent).
* Meet all other contingencies and legal obligations.
* Sign escrow instructions.
* Arrange to pay off the existing mortgage(s).
* Pay all closing fees.
* Consider tax implications.
For more home selling tips, check out the Selling a Home section of the U.S. Department of Housing and Urban Development (HUD) site.
