Selling A Home
There are several ways of selling a home.
1. Engage an experienced real estate agent to:
a. Evaluate your home for price and condition.
b. Promote your home for sale in the Multiple List Service, the public search sites, advertise your home for sale on the Internet, be available for contract negotiations and much, much more.
2. Offer your home "For Sale By Owner".
3. Offer your home for sale by auction.
EVALUATING YOUR HOME TO SELL FOR PRICE AND CONDITION
Home sellers have to weigh the benefits of whether to spend money to prepare a home for sale by
Upgrading. We seldom recommend upgrading a home to sell. Upgrading is expensive and the return on that investment may be some years coming. A new kitchen with new flooring, cabinets, appliances, plumbing, lighting, painting, etc. will be quite costly. The return on complete kitchen replacements will be some years in the future.
The National Association of Realtors estimates that the return on the investment for upgrading a home is about:
Major kitchen remodel......68.7%
Family room addition........62.5%
Master suite addition........63.0%
Clearly, if you plan to occupy your home for some years to come, the return on the investment for upgrades may justify the cash investment. You will have the pleasure of and time to enjoy the upgrades to your home. However, such as investment in a property to sell is not usually "worth the investment".
Making Repairs. A pre-listing home inspection is often worth the money. $300-$400 in a pre-listing home inspection may reveal defects that would cost far more in lost value if these defects are discovered by a prospective buyers when they have a home inspection performed prior to buying your home for sale.
Pricing a home for condition is one choice that sellers have. However, if a home owners has neglected to maintain their home in a timely manner, they will pay for the deferred maintenance when selling. Either the home will sell for less than if it were in good condition, or the seller will have to make home inspection repairs to complete a sale of their home.
Pricing for Condition. Price sells. Pricing for condition means offering a property for sale at less than market for the area and home size/type to compensate a for the cost of such repairs.
APPRAISALS MATTER. With some loan types, VA and FHA, the appraiser may make certain repairs a "condition of the appraisal". A mortgage company will not underwrite a mortgage for a home where the appraisal requires certain repairs.
"AS IS" Listings. Some real estate agents and many home sellers believe that they can avoid making repairs to a home by offering it for sale "AS IS". Fact is, all existing resale homes are sold "as is", but subject to a home inspection or other contingency. This means that, if you contract to sell your property subject to a home inspection contingency, the buyer may ask for certain repairs to be made or have the ability to void the contract.
PROPERTY CONDITION DISCLOSURES required by some states require that sellers disclose the present condition of their home for sale. Bank owned properties (foreclosures) are exempt from this requirement because they have never lived in the property. The condition of a residential property must be disclosed honestly and accurately.
Sellers who maintain their home well and timely, will benefit when they sell by faster sales and for more money.