If You Are a Home Seller – Get Ready!
If you are considering the sale of your home this year now is the time to get started. Using local closed sales data and making the assumption that the average closed sale is under contract for four to six weeks and buyers begin looking at least a month or so prior to writing a contract, we have developed the following ‘Showing Activity’ graph:
Note how the activity picks up in February and runs through June before slowing down. Almost 50% of the year’s showing activity occurs during the four months from March to June and nearly two-thirds of the entire year’s activity occurs in the six-month period starting in February.
It is especially important this year to get your home on the market quickly because of the federal tax credit incentives. Qualified first time home buyers can receive an $8,000 tax credit and qualified repeat home buyers a $6,500 tax credit but only if they have the home under contract by April 30, 2010 and closed by June 30, 201. This means that even more of the year’s activity should take place in the next ninety days.
A good place to get started is to select a real estate professional to market your property. This person can provide you with a detailed market analysis and help you determine the right asking price for your home. This is a very important step because the wrong asking price can mean the home does not get sold, takes too long to sell or, on the other end of the scale, can cost you money by not getting the full fair market value for your property.
An experienced real estate agent can also help you in determining what repairs and improvements should be made to the property and give you tips on presenting and showing your home in the best possible condition.
The agent will also give you a marketing plan, which will include all of the ways they will promote the property to reach the broadest range of qualified buyers.
If you don’t have a favorite, qualified agent check with family, friends and business associates for references. Look for signs in your neighborhood, attend open houses, check the internet or call several of the real estate agencies in the phone book and ask for a ‘top producer’ or someone who is experienced in your neighborhood or price range. You should normally ask two or three agents to prepare a market analysis and marketing plan and during the presentation you will have an opportunity to interview them to determine their knowledge and qualifications. Ask for references and call them. You want to make sure that you end up with an agent who you have confidence in and also one with whom you are comfortable since you will be probably be spending several months together in the business of selling your home.
If you are arranging to sell your home, this is also the time to begin planning your move. If you are going to purchase another home in the same area, the agent listing your home may be the best person to work with on another purchase. With the possibility of two transactions, you may be able to secure a better deal from one agent. If you are moving to another town or state, your listing agent may be able to assist you in locating an agent in the new area to assist you. The Internet can also be a valuable tool to find real estate agents and agencies in the new market plus a wealth of other information on the community, schools, recreation, and weather and nearly everything else you want to know.
The next step is to implement the repairs and improvements that may be required prior to showing your home. At the very least this will probably involve a de-cluttering which could mean a garage sale, a few trips to the dump and renting a storage locker. Don’t forget the garage, basement, yard, shed and other storage areas. It may also mean some cosmetic improvements like painting, new carpet, perhaps a new light fixture, window coverings, tile, mirror or other decorating tips. There may also be some repairs to be done like checking the HVAC system, fixing that plumbing leak or electrical outlet, perhaps a roof inspection or fence repair. The initial steps of selecting a real estate professional to market your property and getting your property ready for the market can obviously take a few weeks. With increased showing activity starting in February and peaking in just 90 to 120 days NOW is the time to get started.