10 'must-do' steps to sell your home this year

It is my opinion that the three top reasons that make your home worth it's market value are Location, Quality, and Condition.

You can't change it's location unless you buy another lot and then transport your home to it's new site. So we are severely limited to increase our homes value in regard to the location part of the equation.

You can change the quality of our home by upgrading and remodeling, by installing high end or higher than average appliances or floor coverings or lush landscaping. Money begets money. We can increase the value by as much as we want to invest in these upgrades. In Southern California the return on dollars spent for most remodeling will return at least as much as was invested. If the remodel stands head and shoulders over anything else in the neighborhood then a higher return on the invested money can be expected. I am a firm believer that 90% of everything is crap. If you don't plan and use your remodeling budget well, you will look like everyone else's bad job. On a limited budget if you scatter your monies on too many jobs you will have wasted you efforts. It will look like that 90%. If you have limited funds, only do one thing, but do it well.

The alternative to remodeling and upgrading and spending a lot of money is to polish that apple as best you can and get the best opinions you can about what your home will sell for. And then place it on the market at that price. Your home is only worth what someone will pay for it.

The condition of home is also a huge factor is determining your homes value. You can't really change the home's location and you may not be able to afford remodeling or expensive upgrades. You can make your home shine just by improving everything about your home that screams "fix me". Deferred maintenance lowers your homes value more than upgrades or remodeling would improve it's value. Buyers want to be able to move into their purchase and just start living. They don't want to move in and then start fixing everything bent, peeling and broken. The today's buyers are very sophisticated. They have search on the Internet, they have looked at pictures of homes that don't need fixing. They see those prices and then they see your home and start discounting your price. Start now, start fixing. Then put your home on the market and reap the financial rewards of your sweat equity.

Here are the 10 things that I would do to make my home sell for more money in this market.



1. Your home is the largest source of money that most of us will ever consider selling or buying. Treat the sale or purchase as if it were a business. Develop a business model or plan for the sale or purchase in a step by step manner. Your business plan should start with a list of "how do". How do I know whether the housing market is a buyer or seller dominated situation. How can I figure out how much my home is worth. How can I determine for how much i can sell it. How do I sell it? Who will sell it? To whom can I sell it? Are there costs involved in selling or buying? Are there taxes to be paid? Do I have to obtain (net) a certain amount from the sale in order to buy another home? The list is as long as you can add more questions to it. My advice is to create a list of everything that concerns you and then start posing those questions to as many persons as you can. Try to ask more qualified people than non qualified. Friends and family are great to talk to, however you don't want to rely on anecdotes and second hand expertise when you money is involved. Include them in the discussions, however never rely on one person's advice or opinion. Talk to many professionals, write done all your research and then follow your gut felling.

2. Have your home inspected. Right away, don't delay. If you plan on selling you must know the costs of selling. Your net proceeds ( the check you will receive when escrow closes) is the most important item you need to know when deciding to sell. If you can't afford to sell and buy somewhere else then why are you selling? If you need to find a home inspector who works your area, log on to http://www.nahi.org/public/92.cfm?sd=47. There is a long list of qualified home inspectors. If you don't feel comfortable calling,and you have a realtor, have he/she make the call. Inspection fees vary according to the size of your home. A reasonable estimate of a 1500 square foot home is $350 to $450. This fee is money well spent. By knowing about all the items that need to be repaired before you sell, you will be able to price your home accordingly. If you have to net a certain amount, then adding the cost of repairs to your asking price prior to placing your home on the market, will help you to net the amount you need. Don't get stung by the repair bills after you have accepted an offer from a buyer, negotiating after the fact is much more difficult. Know all the answers first, then sell.

3. "Victorious Warriors win first and then go to war. While defeated warriors go to war first and then seek to win". This philosophy of war ( your business model) was written in 400 B.C. by Sun Tzu, a great general in China. Know your enemy first so that you know how to defeat him. This applies to how you will sell your home. You need to shape up before you market. You have had your home inspection and now you will be adding to that list of repairs the extra things that will make your home more appealing than any other home in your area. It is a mistake that will cost you money to think that you can lower the asking price to compensate for the issues that make your home less desirable. You may never have the opportunity to negotiate if your home is not desirable to all those buyers who drive up to your address and then keep on going. Opportunity lost, it will not be regained. Paint, paint it all or freshen areas that need it. Clean the entry way, wash the windows, replace that burnt out front porch light, ask a neighbor how they would freshen up the entry to your home. Improve the landscaping that will attract not repel the potential buyers. Mulch the flower beds, plant flowers, edge the lawn and add fertilizer to help green it up. These ideas are all about keeping money in your pocket. No effort, no money.

4. Do you want to use a real estate agent or do you want to sell it yourself. I am a realtor, and I know that I can net you more money at the close of escrow. If you want to sell it yourself, your business plan should have a certain time limit that ends your efforts to sell and then begins using a realtor to sell you home. Selling your home will save you the commission paid to the Realtors. However there are statistics that indicate that "For Sale By Owners" sell for 16% less nationally, than homes sold with the expertise of a realtor. You saved the commission but your net was drastically lower than you would have realised by using a Realtor. In a buyer's market I would be educating my buyers about how to structure their bid to acquire your home. In a buyer's market, the first thing I say to my client is offer less than the asking price. I would also tell them that the commission that the "FSBO" seller is trying to save should immediately be subtracted from the asking price. Buyers you should bid lower and wait for a response.

5. As part of your plan to sell your home, it should include some relocation help. You may be moving down the street or across the country. The company you work for may offer help with the move, if you are being relocated within the company. Most large real estate companies also have affiliated relationships with relocation companies. These are companies that can assist with the actual move and help with all the details associated with your move. I work for Coldwell Banker and they are associated with the largest relocation company in the world.

6. If you are going to use a Realtor to market and sell your home, then interview as many as required until you find one that you feel you can trust and that you have confidence in their professional abilities. You must ask questions about how they will market your home and what would they change to make it sell for more. Ask everyone you know for questions to ask. If the realtor you are talking to can't answer to your satisfaction then don't hire them.

7. You must set the price before you place your home on the market. If you are selling it yourself or will be using a Realtor, this is the most important step in the whole business plan. Price it wrong and you will continue to own your home. Price it well and you may obtain multiple offers and receive more than you asked. By not using a Realtor a seller must find out about pricing from sources that may not be timely or correct. A seller can look in the paper and see the asking prices of homes similar to theirs. They can look at Zillow.com and Realtor.com to estimate pricing. The main argument against using these information sources is the accuracy of the figures and how timely are the numbers. This is your home, do you want the most accurate information concerning sales figures and the state of the market? Use a Realtor if you want to see the information about the latest sales. Have a Realtor show you the comparable sales of homes in your area. Use a Realtor to show you open houses and then compare to yours. Realtors have access to pictures of the homes that have sold or are in an escrow. You may not be able to personally go into these homes. Pictures are a way to make comparisons to your home. Ask a Realtor about how to place your home in the best position price wise versus your competition in the area. You need to know the state of the market to properly price your home. In a sellers market the price can be a little high in order to test what buyers will pay. In a buyers market if the price is wrong then you won't even have people looking at your home. If you price Talk to a Realtor about how soon you need to move or your personal motivation in moving. These details will influence how you price your home and how soon you can expect to sell it. Remember this saying about the price. "Buyers will come and see your home and make offers. Buyers will come and see your home and do nothing. Buyers will not come to see your home." These scenarios are all predicated on how well you priced your home. Are you confident in pricing your home without professional help?

8. How has the Internet influenced the pricing of homes. Presently over 75% of home buyers start their search for a home on the Internet. Ten years ago that number was 15%. Text can describe your home well. However with pictures you can make your home stand out versus the competition. The use of photos also is related to our previous step of preparing your home before you place it on the market. Buyers pre-select homes to view by their appearance on the web. A home that is listed on the web with no pictures will not get a viewing. If your home has a bad appearance with pictures then they will look and go on to another home. Your home must look good in person and must look good on the Internet. This opportunity for marketing your home is huge. Technology can be used to your advantage. Hire a Realtor who has the ability to market your home on the Internet. If you don't then the number of potential buyers is greatly diminished. The more people who see your home the more money you will eventually net. Selling real estate is a numbers game. Show the home to as many as you can and you will sell it for the most money.

9. One person's junk is another person' treasure. This may be true in a garage sale but when it's piled high in the front and back yard then it's another reason for a potential buyer to speed up when they approach your home. You are not going to take the junk with you when you move, so get rid of it now. Sell it if you can, but get rid of it. It's junk because you could not even use it. A buyer is figuring in his head the cost of removing it. That cost will be figured into the offering bid, a lower price. Would you stop the car and scream, "Look at that yard filled with crap, let's stop Honey!"

10. The longer your home stays on the market the greater the need to determine if the market is changing. A buyers market and become a sellers market without any media fanfare. Use an agent who will always keep you informed about the facts. This will make your decision easier in your business plan.