What Every Seller Should Know Before Selling a Home

10 Key Steps to Take Before Listing Your House For Sale

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Essential Home Selling Preparations: The home selling process differs from state to state, but there are some important steps that most home sellers should take before listing a house with an agent or selling it for sale by owner. Every bit of prep work you do helps you get the most return from your investment.

Step #1: Get Pre-Approved for a Home Loan

I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.

Before you decide to sell the house, get pre-approved by a lender you trust and 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.

Step #2:Check Your Mortgage Payoff

Call your lender to check the payoff for your current home mortgage. You'll need the figure to complete Step 6.

Step #3: Determine How Much Your House Is Worth

Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy. Please contact me for a FREE evaluation to determine the best possible selling price of your home.

Step #4: Estimate Your Costs to Sell

• Brokerage/Agent Commission is the previously negotiated fee for selling your home.
• Advertising costs, signs, other fees if you plan to sell by owner.
• Repairs for which you have agreed to pay.
• Transfer taxes are local taxes on the real estate transaction.
• Prorated taxes for unpaid property taxes.
• Prorated fees for unpaid association fees, if applicable.
• Survey and Inspections for Termite or other special inspections for which you have agreed to pay.
• Closing costs if you agree to help buyer with a certain lump sum of these costs.
• Balance of any indebtedness or loan payoff.

Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.

Step #5: Estimate Costs to Buy a New Home

Calculate moving expenses, loan costs, downpayment, home inspections, title work and title policy, prorated of paid property taxes, prorated mortgage interest (for payment made during the current month), prorated of paid association fees, utility deposits (held by electric, phone, cable, etc.), paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for loan pre-approval.

Step #6: Calculate Your Estimated Proceeds

1. Deduct your mortgage payoff from your home's fair market value.
2. 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?

Step #7: Make Necessary Repairs

Make all needed 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.

Step #8: Get the House Ready to Show

Most houses 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. Be sure to avoid the things buyers hate most about houses.

Step #9: Get Psyched Up to Let People In

If you're listing with a real estate agent, she'll ask you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding in your personal space.

Unless there's a valid reason for it, don't ask your agent to be present for all showings, because that requirement can be the kiss of death for showing activity. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.

Step #10: Make the house accessible

That means it should always be ready to show. Many agents won't bother showing a house that takes 24 hours to get into.