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Robert Irwin is one of America's most respected experts in all areas of real estate and the author of more than 20 books, including the bestsellers in the McGraw-Hill Tips and Traps series.

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Tips and Traps When Selling a Home

The McGraw-Hill Companies, Inc.

Contents

Chapter One

What does it take to sell your home today?

We all intuitively know that given enough time, any home will sell. Of course, it could take many months or even years. But leave it on the market long enough and you'll get your price. If for no other reason than inflation, eventually the market will catch up to whatever you're asking.

If you're reading this book, however, you probably don't have years—you're looking to sell quite a bit sooner. Maybe you'd like to sell within a month or two, perhaps within just a few weeks. Or right away?

So how do you sell in today's challenging market? How do you get a sale regardless of economic conditions?

The "how to" details are in this book, but, the quick answers are in this chapter. Here's what you need to do to sell your home in six easy-to-understand steps.

Step 1: Compare It

Your home isn't for sale in a vacuum. You're in competition with everyone else out there. And, as you may have noticed, there are lots of other homes for sale.

TRAP

Don't trap yourself into thinking that no homes are selling. In the hottest market in history (2005), over 6.5 million homes were resold in the United States. But in one of the coldest markets (2008), there were still an estimated over 4 million resales. Somewhere out there, people are still buying, and lots of them selling, properties regardless of what the market looks like.

Buyers will have noticed, too. Today's buyer, if not fickle, is extremely discriminating. Today's buyer wants to be absolutely sure that he or she is not overpaying. (It hardly makes sense to pay too much if there's a buyers' market.)

This person typically begins a house hunt by checking the Internet to see what's available and at what cost. (The most widely viewed "for sale" site, Realtor.com, has well over a million listings from the Multiple Listing Service. The vast majority of buyers look there first to see what's for sale in their target area.)

TIP

Over 80 percent of buyers first check homes for sale on the Internet. Over 85 percent of homes are sold with the help of an agent.

Buyers also go out with agents who typically tour dozens of homes. Many thorough buyers will look at every other home for sale in the neighborhood to compare location, size, features, and, of course, price.

Thus, you must assume that by the time a buyer comes by to see your home, he or she has an excellent idea what's for sale out there and how much it should cost. Buyers quickly see where your home fits in the market.

You have to assume that today the typical buyer knows what a home such as yours, in the condition it's in, should sell for.

Are You as Educated About the Market as Your Buyer?

Do you know as much as that buyer does? Do you know where your home fits into the market? Do you know what other homes are for sale in your price range and neighborhood?

If you want to sell, you need to know what you're up against.

Thus, learning about your competition (and comparing your home to it) should be your first step in your sales effort. Get a good CMA—and assume that every buyer will.

TIP

A CMA is a comparative market analysis. It takes a look at all the homes sold in your area in the past six months or so and compares them to yours. From the CMA you can quickly see how your home stacks up and, most importantly, what you can likely charge for it.

Every agent trying to list your home should be willing to prepare a free CMA for you as part of his or her presentation. It should be the agent's primary information source to help you decide on what price to ask. It will list every comparable nearby sale going back at least six months. And it will show how closely your home compares to others that have sold, in terms of square footage, bedrooms and bathrooms, location, amenities, and so forth.

Of course, you needn't rely on an agent to prepare a CMA for you. You can easily get one on your own. Many Web sites such as www.reiclub.com, www.homevalue.com, or www.homeagain.com will prepare a CMA for your house for a nominal fee, typically around $25.

Or you can prepare one yourself using a free resource such as www.zillow.com which gives you nearly all the information you'll need on recent home sales in your area.

Only after you have your CMA in hand will you clearly know what the buyers know: what your house is likely worth compared to past sales, given its location, condition, and the amenities it offers.

Getting that price figure to aim at is your first step in selling your home.

However, remember that the value of a home, like the value of a car or almost anything else, is directly related to its condition. The better the condition, the more you're likely to get for it. If you want to get top dollar for your home, you have to prep it. (For more details, check out the next section.)

Step 2: Prep It

Preparing your home is a "must do" if you want to sell quickly and for the most money. You can think of the preparation as returning the home to the condition it was in when it was new. Of course, many sellers have improved their homes. They've added double pane windows, or a new wooden door, or stone kitchen counters, or many other highly desired features.

If you have any questions regarding what's involved in prepping your home, think of it this way: You've received a letter from the President of the United States asking you to attend a formal dinner at the White House. Of course you plan to attend. (Regardless of political preferences, this is an invitation that almost no one will turn down.)

But what will you wear?

Budgets will get thrown out the window. Tailored tuxes are in order for the men and fashionable evening gowns for the women. There's your hair to get groomed, your shoes to polish, your face to prepare, and on and on. For an occasion of this kind you simply must look your best.

Well, your house isn't likely to be visited by the President. But in terms of getting it sold, the buyer is just as important. You need it to look its best, to make the best possible impression.

TIP

"Curb appeal" gauges your house's appearance when buyers first drive up to it. That's often the split second when the "buy/don't buy" decision is made. Remember, you never get a second chance to make a good first impression.

Since you want the buyer to see your home in its best shape—not in a clean-up phase—you'll want to do the following before putting your home up for sale:

10 Things You Should Do to Prep Your House for Sale

1. Clean. The driveway, walkways, and the front of the house. Clean the kitchen and bathrooms. Clean the carpet and windows. Make sure that all cooking utensils are put away before showing.

2. Paint. The front of the house, the front door (or stain it if needed), the entryway, and all other rooms in which the paint is scratched, faded, or peeling. (And do a good job! Don't smear colors and be careful with the woodwork.)

3. Replace. Anything that's worn out, including torn screens, broken interior doors, switches that don't work, and any appliances that don't function properly.

4. Garden. Make sure your front lawn is always mowed, remove shrubs and trees that hide...