Home Seller Tips

Before you put your home on the market…..

Get pre-approved for a home-loan before you sign a contract to sell your own home. Why? You ask. Sometimes circumstances have changed since you last purchased a home or maybe you do not qualify for a loan for the type of replacement home that you want.  You may end up renting or buying something that you don’t want.

Research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.

Start looking for two types of real estate:  houses that seem to match the one you’d like to buy and houses that are similar to your current home.  How do the two categories compare in price?  Can you handle the difference if you’re planning a step up?

Check your Mortgage payoff and determine your home’s fair market value. A Realtor can give you a comparative analysis or you can order an appraisal.

Estimate your costs to sell:

Real estate commission if you use an agency
Advertising costs, signs, other fees if you plan to sell by owner
Attorney, closing agent and other professional fees.
Excise tax for the sale
Prorated costs for your share of annual expenses, such as property taxes, home owner
     Association fees, and fuel tank rentals
Any other fees typically paid by the seller in your area (surveys, inspections, etc.).

Calculate cost of moving expenses, loan costs, downpayment, home inspections, title work and title policy, paying for a new hazard insurance policy(all expenses related to buying a home) Your lender will give you a disclosure of estimated costs when you apply for loan pre-approval.

Calculate your estimated proceeds:  deduct your mortgage payoff from your home’s fairmarket value.  Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.

Will your closing proceeds cover your costs to buy a new home?  If not, do you have cash or other funding to make up the difference?

Make the Necessary Repairs unless you want the house to be regarded as a fixer-upper. I’m not referring to cosmetic updates—just items in need of repair.  Anything that’s obviously broken gives potential buyers a reason to offer you a lower price, especially if it’s one of several repair hot spots that worry buyers the most.

Get the house ready to show. Most homes need at least a little spiffing up before they are shown to potential buyers.  Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances and a clutter-free look are essential if you want the house to appeal to buyers. 

Unless there’s a valid reason for it, don’t be present for all showings.  Make the house accessible. That means it should always be ready to show. 

One last tip, think carefully about that first offer, it could be the only offer you get. You may wished you had taken it.   Happy selling!!      

Disclaimer: Information is deemed reliable but not guaranteed and should be independently verified. Some listings may have changed, been withdrawn, or sold. Website last updated 01/25/2006. Listings data on this site come in part from the Ann Arbor Area Board of Realtors MLS IDX, the Jackson MLS IDX and the Monroe County Association of Realtors MLS IDX. All rights reserved. --