Tag Archives: pre-inspection

How To Get Top Dollar For Your Home

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How does a seller get top dollar for their home? Every seller wants the assurance that his/her house will sell at the highest price possible. But, real estate, as with most industries, is a highly inexact science. There are many factors at play within rapidly changing market terrain. While there are no concise answers as to how one ensures a house sells for top dollar, there are some important considerations to deliberate as the seller that can help you maximize profits, maintain control and reduce the stress that comes with home-selling.

  • Know why you’re selling and keep it to yourself.

The reasons behind your decision to sell impact the process greatly. Do you already have another house in escrow? Do you need to sell quickly? Or is profit your highest priority? All of these questions will factor into your pricing strategy. However, do not reveal your motivation to anyone else other than your agent or they may use the information against you during negotiations.

  • Set your price appropriately.

Setting the right price is the single most important decision you will make when you decide to sell. Price too high and you will turn off potential buyers. Price too low and you may leave money on the table. Make sure you do your homework by looking at comparable sales in your neighborhood in the last 3-6 months. Visit all the competitive offerings and see how they’ve been priced relative to the condition of the home. It’s always good practice to know your competition. While pricing, stay as objective as possible, and really look at your house from a potential buyer’s perspective. Emotional attachment to the house tends to drive pricing higher than necessary.

  • Maximize your home’s sales potential.

You may not be able to change your home’s floor plan or location, but you can make cosmetic updates that will enhance buyer impression. Assess your home, again, through the eyes of perspective buyers, and determine what can use updating. Fresh carpeting and/or a paint job can transform a space dramatically. If possible, avoid showing the house empty. You want to help potential buyers envision the home as their own, so provide neutral staging or de-personalize your existing décor. Furthermore, make repairs to visible damage. And don’t ignore the exterior. Buyer impression starts upon arrival at the house, so make your home appealing from the curb.

  • Consider a pre-appraisal and a pre-inspection.

A pre-appraisal will provide you with an objective basis for pricing your home. Additionally, a pre-inspection can identify any issues with the house that you can address ahead of time rather than during escrow as re-negotiating during escrow can be more costly since you’ll have less leverage and the transaction can be at stake.

  • Know your buyer.

While you shouldn’t disclose much about your reasons for selling, you should try and find out who your buyers are. Why are they moving? Do they need to move quickly? Are they in good financial standing? Having some information on the buyer’s motivation and personal situation will give you the upper hand in the negotiations process.

  • Time your sale.

If possible, watch market conditions carefully and time your sale. Typically, spring and summer are good times to sell. But specific to your market, be mindful of supply and demand. Are there more buyers than sellers? Are interest rates reasonably low? When there are more buyers in the market, sellers can get better pricing and terms, especially if there are multiple parties interested in your property.

  • Hire the right listing agent to represent you.

Truthfully, nothing is more instrumental to your successful home sale than the right real estate agent for your needs. Not all listing agents are created equal. If you hire an experienced agent, they will perform all the research necessary to advise you on all the points listed above: pricing, home improvements, negotiations, timing of the sale, etc. Get a few quality referrals from friends and interview several agents. As part of the interview, make sure you understand how each agent’s marketing plan for your property differs.

To sell your home for top dollar requires proper positioning of your property to the maximum number of prospective buyers. Educating yourself on market conditions and having an experienced agent as your representation will increase the likelihood of a successful transaction for top dollar.

 

Preparing for a Home Inspection

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During the complex process of selling a house, one of the bigger hurdles to a successful close of escrow comes at the point of inspection.  Varying statistics pinpoint the percentage of contracts that fall out of escrow at somewhere between 20% to 30%.  While a small percentage of buyers cancel contracts simply due to a change of heart or the inability to secure financing, a handful of contracts blow up over the home inspection.

No matter how meticulous you’ve been in maintaining your home over the years, the home inspector will likely find issues with the house that your buyers will want to have addressed.  And while it’s not feasibly possible for anyone to “ace” their home inspection, there are a few steps you can take to make the inspection go as smoothly as possible and thereby presenting the buyers with the peace of mind that they are purchasing a home that’s been well cared for over the years.  Here are a few tips in preparation for the home inspection:

1)    Consider a Pre-Inspection

One of the smartest things a home seller can do before putting their house on the market is to complete a home inspection on the property, especially if the property is older.  If your home is relatively new and you aren’t aware of any issues, you can probably skip this step.  But, for the price of a home inspection, which runs somewhere between $350 to $450 in the Newport Beach market, you will receive a report of potential problems and decide on your own timeline which items to address.  One reason buyers get cold feet at this juncture is the length of the home inspection report that inevitably equates into mounting costs and stress in their minds.  A seller with an inspection report could head off this potential roadblock by cherry picking several cost-effective fixes and thereby mitigating the report for the buyer down the line.  Plus, if you know all the potential issues ahead of time, you can plan for how you might respond when a buyer asks for repairs or a credit.

2)    Scour the Home for “Quick Fixes”

  • Make sure all the lightbulbs and light fixtures are functioning.
  • Make sure all the smoke detectors are working.
  • Change out furnace filters and vacuum the registers.
  • Ensure all windows and doors open and close properly.
  • Provide easy and unobstructed access to the attic, crawlspaces, furnace, water heater, and electrical panel.
  • Clean out gutters and clear the roofline of debris.
  • Check that bath vents and dryer vents are venting effectively.
  • Remove unnecessary and potentially hazardous materials such as rotting firewood, paints and solvents from the premise.
  • Remove excess clutter and clean the house.

3)    Leave the house

Letting the home inspector freely roam your house unencumbered is a good idea.  Most home inspectors prefer to do their work without the scrutiny of the homeowner’s presence.  And remember to take your children and pets with you so they feel at ease during their time in the house.

4)    Prepare Documentation for Work Performed

If you are a meticulous and thoughtful homeowner and have a backlog of receipts for maintenance work done to the house, collect those items and make them available after the inspection.  Paperwork will come in handy to prove that work was already performed to fix certain problems and to what extent.

In general, the easier you make it for the home inspector, the more favorable the experience will be for all parties involved.  Home inspectors and buyers are more partial to homes that have the semblance of constant care and thoughtful maintenance.  If as the seller you elect to perform a pre-inspection, the transparency provided by the report will avoid surprises during escrow and prepare you with the knowledge and a plan to circumvent a potential round of re-negotiations.  At the end of the day, a good home inspector will never overlook a serious problem, but if you prepare in advance to provide an easy inspection experience, your efforts could impact and minimize the report by a small but significant margin.