Tips & Tools : selling a home

What to do When You Can’t Afford Your Mortgage Payments

RE.com Tips & Tools — Thu, 30 Jul 2009 12:42:00 GMT

EDITOR'S NOTE: With foreclosure properties still dominating the housing landscape in the U.S., we've asked our friends at RealtyTrac® to guest author some articles to shed light on the foreclosure crisis. RealtyTrac is the most trusted source of foreclosure information in the country. We hope that the information provided here and in other articles will be beneficial to understanding, avoiding and even leveraging (as an opportunistic buyer) home foreclosures.

By James J. Saccacio, Chief Executive Officer

No one who buys a home intends to miss any mortgage payments. But unexpected life circumstances can quickly stymie the best of intentions, and homeowners can’t always prevent defaulting on their payments. If you’re one of these homeowners, it’s important that you take steps to prevent the situation from getting worse. Many homeowners fall into the traps of procrastination or overreaction, neither of which is helpful. Instead, you should adopt a measured response in which you take into consideration all the options available and act decisively before you lose your home. Below are some suggestions.

Contact your lender
Once the due date for your mortgage payment has come and gone, it’s only a matter of time before your lender knows you’re in default. But don’t wait for them to contact you; act preemptively and call them right away. If you leave it up to them, they may contact you for several months – when it will be much harder to resolve the situation. Lenders deal with defaulted customers every day, so they often can provide solid advice. And most lenders aren’t eager to expend the money and time it takes to foreclose on your home, so they’re open to other alternatives. Before you sign any agreement with your lender, have it reviewed by a real estate agent, attorney or a local housing counseling agency approved by the U. S. Department of Housing and Urban Development.

Know the deadlines
If you default on your loan and don’t work out a plan of resolution with your lender, the lender will schedule a public foreclosure auction of your property. In some states the countdown to the auction is less than a month; in other states it is more than a year. In either case it’s critical that you understand exactly how much time you have before you lose your home. A tangible deadline will help you set goals and take control of the situation. Consult RealtyTrac’s State Foreclosure Laws Summaries to find out more about the foreclosure timeline in your state.

Consider your alternatives
Homeowners in default have several viable options to stop the foreclosure process. Not all of these options will work for every homeowner, but you should consider the advantages and disadvantages of each option and determine which is best for you if you are in default.

Adjust your budget: If you haven’t done so already, take a look at where all your money is going. Look for ways to bring more money in and cut non-essential expenditures.
Restructure your payments (Forbearance): Find out if your lender can offer you a forbearance agreement that allows you to lower your monthly payments now and pay the difference when you’re back on your feet financially.
Refinance your loan: If interest rates have fallen since you last financed the home, ask your lender if they would be willing to refinance your loan so that you have lower payments.
Sell your property: Although this probably isn’t your first choice, it can allow you to walk away with any equity you’ve built and it’s a better alternative than losing your property at a public auction.
Deed your property in lieu of foreclosure: If you don’t have any equity in the property, you may choose to simply transfer ownership to the lender so that they stop the foreclosure proceedings against you.

Consult a real estate professional
Whether you decide to restructure your payments, refinance, sell or deed the property in lieu of foreclosure, you should enlist the help of a local real estate professional — such as a real estate agent or attorney — to guide you through the process. Many homeowners in default don’t have the money to pay an attorney and don’t want an agent’s commission to eat away at any profit from a home sale. But keep in mind that just an hour or two with an attorney may be sufficient to ensure that you’re avoiding any pitfalls in the process. And a good agent will give you solid advice even if you can’t afford to have them list your home. They know that if they help you out now, you’re more likely to use them the next time you buy or sell a home. And they know you’re more likely to refer them to a friend.

Be wary of scams
Some people take unfair advantage of homeowners in default. These scammers will promise to help you but will only leave you in worse shape. According to HUD, the most common scams are equity skimming and phony counseling agencies.

Equity skimming: you will be approached by someone who promises to pay off what you owe to the foreclosing lender if you hand over ownership of your property, usually through what’s called a Quit Claim Deed. Once you’re out of the house, the new owner rents it out for a few months and never pays off your mortgage, causing the lender to foreclose. You end up with a foreclosure on your credit history and with little or nothing to show for any equity you had built in the property.
Phony counseling agencies: phony counseling agencies contact homeowners in default and offer help for a fee. Once they have your money, they may not do anything for you. If they do help you, it will be by contacting your lender or suggesting that you sell your house — tasks you can do on your own.

On its website, HUD suggests the following precautions to avoid scams:

Don’t sign any papers you don’t fully understand.
Make sure you get all “promises” in writing.
Beware of any contract of sale or loan assumption where you are not formally released from liability for your mortgage debt.
Check with a lawyer or your mortgage company before entering into any deal involving your home.
If you’re selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer by contacting the state’s Attorney General, State Real Estate Commission or the local District Attorney.

If you find yourself unable to make your monthly mortgage payments, the key is to take control of the situation by knowing all your options and acting decisively to stop the foreclosure. That will allow you to make the best out of a difficult situation.

Will a Home Warranty Help Your House Sell?

RE.com Tips & Tools — Thu, 19 Jul 2007 21:07:00 GMT

Give yourself a marketplace edge by offering buyers peace of mind.

Which home would you rather buy? One that offers you no protection if the furnace, air conditioner, dishwasher, plumbing or garage door opener go kaput, or one with a home warranty that gets the problem fixed for less than $100?

Most buyers would select door No. 2, so it’s easy to see why many sellers are making a home warranty part of the deal. It’s almost standard in some markets, according to industry experts.

Offering buyers guaranteed, low-cost repairs is especially valuable in a slow housing market. In some cases the warranty will give you an edge over other properties; in other cases home warranties are expected, and not offering one might cause buyers to reject your home outright.

“It’s one more benefit that the seller can offer,” said Kathy Aymard, manager of the Annapolis, Md., office of Prudential Carruthers REALTORS®, which is affiliated with RealEstate.com. Home warranty coverage costs a few hundred dollars, but what you’re offering buyers is peace of mind for their first year in the home.

“Most buyers don’t have a whole lot of extra cash when they get in the house” after coming up with a down payment and paying for a move, Aymard said. Under a home warranty, repairs are covered, with the new owner paying a small deductible – generally $30 to $75, depending on the policy.

A good listing agent should suggest offering a warranty, Aymard said. Her office considers it so important that its listing services include providing a warranty.

She cautioned that home warranties won’t cover pre-existing conditions. In other words, a seller who knows he has a plumbing leak and buys a warranty with the intention of having it fixed under the policy, she said. Likewise, a problem caught during the pre-sale inspection should be repaired before closing.

Indeed, the offer of a home warranty does not mean that a buyer should forego a home inspection. Although the buyer bears the cost of the inspection, it’s critical to have a qualified home-inspection specialist give the home a thorough once over before you sign on the dotted line at closing.

Keep in mind that purchasing a home warranty for the buyer doesn’t get you off the hook for making repairs before putting your home on the market. You’ll still need to patch and clean and paint and do whatever you can to get your home in showcase condition.

However, sellers can purchase a home warranty while the home is on the market to protect themselves against unexpected repair costs, then transfer the warranty to the buyer. Several companies offer home warranties. Ask your real estate professional for recommendations if he or she doesn’t suggest the warranty as part of their services.

“I don’t know that a warranty by itself sells a house, but a warranty is a benefit” to the buyer, Aymard said, noting, “If the seller’s not offering it, the buyer ought to get it anyway.”

Selling a Vacant Home

RE.com Tips & Tools — Tue, 19 Jun 2007 21:09:00 GMT

Can you still get top dollar if you have to move before you sell?

If you’ve ever tried to sell a home, you probably heard a lot about clearing the clutter. Buyers want to see a home’s potential, experts say. Decluttering the rooms and taking out personal items helps buyers see themselves living there.

But there also can be too much of a good thing. Experts say a vacant home doesn’t show as well as one that appears lived in. The rooms appear smaller when they’re bare of furniture. Every little blemish on the wall or worn spot on the carpet will stand out as if in a spotlight.

The end result, according to common wisdom? Vacant homes are on the market longer and sell for less than comparable occupied homes.

Sometimes, though, you have to move before you sell your home. Can you counter the curse of a vacant house?

Probably not, says real estate consultant and college professor Lary Cowart – at least not if you try to sell the home without a stitch of furnishings. He’s got the statistics to prove it.

Cowart, an associate professor and chair of real estate studies at Morehead State University in Kentucky, co-authored a study that compared the sales prices of vacant homes and homes that were still occupied. The study, published in the Summer 2004 professional journal of the Appraisal Institute, examined the sales of nearly 1,900 single-family homes in Lexington, KY. About 600 were vacant.

The findings? Vacant homes typically sold for 5 percent to 6 percent less than comparable occupied homes. They also stayed on the market for an average of 54 days, compared with 35 days for occupied homes.

“The reason, I think, a vacant house is discounted … is that the seller of the house is more likely to be under some kind of pressure to sell,” Cowart said in an interview. Those pressures can include trying to pay two mortgages or being unable to buy another house until the old house is sold, he said.

Buyers and real estate agents often assume someone selling a vacant home is strapped and will accept a lower offer, Cowart said. With that in mind, buyers might be less likely to pay full price.

Cowart and co-researcher Chien-Chi Peng, an assistant professor of finance at Morehead State, were unable to determine whether the sales prices of vacant and occupied homes started out at different levels, or whether the sellers of vacant homes had to drop their prices after they were on the market for some time.

The data did show that on average the vacant homes were a few years older than the occupied homes. Whether that affected the condition of the properties was unclear.

Cowart noted that new homes sell even though they are vacant. Buyers know the builder is not going to discount the property, he said.

If you do have to move before selling your home, Cowart advises getting the house super clean. That means painting and cleaning the carpets and fixing everything up in addition to scrubbing from top to bottom.

“You want it looking as much as it can like a new home,” he said.

How to Sell Your Home Fast

RE.com Tips & Tools — Thu, 22 Mar 2007 21:20:00 GMT

Just because you need to unload your home quickly doesn't mean you have to settle for less. Here's how to make a profitable sale on short notice.

You’ve just landed a dream job on the west coast. The only glitch? You start in two months and need to sell your home -- pronto! Here are some tips for a speedy sale:

1. Ensure the price is right
Objectivity can fly out the window when there’s a rush to put your home on the market. So look carefully at the competitive market analysis (CMA) your real estate agent prepares to help you determine a fair listing price. It details how your home’s size and features stack up against other properties in your neighborhood. Your home will sell much faster if it’s priced in the same ballpark range that similar listings in your region have recently sold for.

2. Cut the clutter
Ever wonder what’s so inviting about unpacking in an elegant hotel room? One reason may be that it doesn’t contain anyone else’s clutter. Knickknacks and family photos are distractions to potential buyers and reduce their sense of being able to envision themselves in your home. So clear shelves and countertops and pack these items away for your move. Paring down will also make your home appear larger and play up its storage areas. So clear out everything from your overflowing spice cupboard to unruly bathroom vanities. If this seems too daunting a task, consider enlisting the help of a professional organizer. Hourly rates can start as low as $50.

3. “Stage” for success
The increasingly popular art of home staging focuses on enhancing the overall appearance of a property so that it will appeal to the broadest range of prospective buyers. Studies indicate that people typically decide within seconds whether or not they’re attracted to a home, so first impressions are critical. You can either hire a professional stager (often an interior decorator) or do it yourself. After assessing your home (an initial fee of $100 is common), a professional stager might recommend such things as repainting walls a neutral color, rearranging furniture and trimming hedges for curb appeal. Pay attention to lighting -- the brighter, the better -- and subtle touches, such as setting the table in the dining room.

4. Create a flexible sales plan
You’ve set your listing price, but now you need to ask yourself some hard questions. What happens if there are no takers? How soon will you reduce the price? And by how much? A mental game plan will help reduce the stress of selling by allowing you to make decisions quickly but assuredly.

5. Consider offering incentives
There’s a fine line between offering buyer incentives to spark interest and appearing desperate to sell. On the one hand, you don’t want to give prospective buyers the impression that you’re fast and easy on price. On the other, marketing gimmicks have been known to condense the sales cycle. For example, you could offer to cover their closing costs or pay for Internet access for a year or, if you’re a condo owner, to pay their first year’s maintenance fees. Remember, it can be a lot less expensive to offer an incentive than to drop your asking price. Real estate agents also respond to perks, so consider offering yours a special bonus if your home sells for the right price within a specific timeframe.

6. Go for picture perfect
Lastly, a picture’s still worth a thousand words, so ensure online photos of your home are top-quality. This is especially important considering that, according to the 2004 National Association of REALTORS Profile of Home Buyers and Sellers, 74 percent of home buyers reported using the Internet in their house-hunting search. If you’re not a professional shutterbug, consider hiring someone who is.

How to see your home through a buyer's eyes

RE.com Tips & Tools — Fri, 19 Jan 2007 22:41:00 GMT

Eagle-eyed buyers will see the flaws, so beat them to the punch and send your home to the top of their list.

Your eyes and a buyer’s eyes are not the same. You’re probably looking at your home through rose-colored glasses. A buyer’s eyes, meanwhile, are zeroing in on flaws big and small.

But you can learn to see your home through a buyer’s eyes. In a way, you probably already have the basic skills. Have you ever visited someone’s home and wondered why on earth they painted their kitchen purple or why they’ve never replaced the disco-era green shag carpeting? Do you notice that the toilet rocks and the tub faucet drips, or the bare spots in the lawn? If so, you’ve looked at the home through a buyer’s eyes.

The truth is, it doesn’t take things as obvious as avocado-colored appliances or a sagging roof to turn off buyers – although either will certainly do the trick. To look at your home through a buyer’s eyes, try to think less like a decorator and more like an architect.

Why? Well, decorators tend to think about filling up a space, while architects think about creating a space. As a seller, you want to show off a space where buyers can imagine creating a home. That’s why one of the first pieces of advice real estate professionals usually give sellers is to “clear the clutter.”

“It can be a touchy subject,” says Kathy Opolski, a RealEstate.com agent in Salt Lake City. “People are often proud of their home and how they live in it. They take it as a criticism of them.”

Indeed, she says, “their house looks perfect in their eyes. It’s comfortable to them.”

To start looking at their home through a buyer’s eyes, Opolski often suggests sellers think back to homes they liked and didn’t like and what created those impressions. Since most people who are selling their homes also are in the market to buy, these images often are fresh in their minds.

If you were turned off seeing signs of deferred maintenance like a cracked window, think about what a buyer might think about something similar you’ve learned to live with in your own home. If you left feeling a home was crowded or out of date, think about how someone with tastes different than yours might feel about certain rooms in your own home.

If you still can’t think of your Star Wars collection as clutter, maybe you could trust your real estate agent to look at your home through a buyer’s eyes and make some decisions for you. He or she is trying to help you get top dollar, and generally knows what helps a home sell in your area.

“Or,” Opolski says, “a staging person might be the way to go.” Home stagers are trained to highlight a home’s strengths and minimize its weaknesses – or at least what a majority of buyers would see as strengths and weaknesses. They are becoming increasingly popular as sellers seek a competitive edge in a slowing market.

So toss those rose-colored glasses. They clashed with the appliances anyway.

Step 1: Getting Set to Sell Your Home

RE.com Tips & Tools — Fri, 19 Jan 2007 18:58:00 GMT

The first step in home selling is to get your house ready for market.

The home selling process can seem overwhelming, but it doesn’t have to be. We’ve broken it down into six easy steps. This article describes the first step: Getting your home ready to sell. The more preparation you do beforehand, the better price you’ll get for your home.

Take a critical look at your house

When selling a home, you need to look at it from the perspective of a potential buyer. Are there obvious flaws that need to be fixed? Problems that you have grown accustomed to will leap out at potential buyers. Fix everything prior to listing. If you’re worried about possible repairs for larger problems such as an old roof or a broken heating and cooling system, it can pay to get a home inspection so you know what needs work. Taking care of those larger issues yourself before putting your home on the market can mean more offers and less negotiating later.

What about the appearance of your home? Does the décor need an update? Consider painting or making minor changes to update problem areas. Rearranging the furniture or buying new furniture or slipcovers can quickly change a room. Even if you don’t need updating, a fresh coat of paint helps both the inside and outside of your house look better and cleaner. Just be sure to choose neutral colors that will appeal to many buyers. The updates you make should be relatively cheap or should be able to travel with you to your new home.

Give it curb appeal

Starting at the curb, is your home welcoming? Check the landscaping and lawn. Trim your hedges, edge your loan, pull weeds, pressure wash the driveway and front walk. Plant flowers either in bed or pots around the front door. Keep your front porch swept and clear of any outside clutter. Replace a worn-out welcome mat. Paint the front door. If you have a storm door, clean the glass. Check to make sure all outdoor lights are working, especially the porch and walkway light.

In your backyard, put all your tools and work equipment out of site. If you have power tools or lawn equipment you don’t use frequently, put it in storage or at a friend’s house. Make sure any swing sets and outdoor furniture are clean and in good repair. That goes for the deck as well – repair any rotted wood, especially on steps.

Clean and de-clutter the inside

One of the most important things that you should do when selling a home is to clean and de-clutter inside. Home selling requires a thorough spring cleaning – the baseboards, blinds, furniture, floors, carpets, everywhere. You want your home to shine. You may even consider hiring a cleaning service to do this if you are short on time. And remember, once your home is clean, keep it that way. When your home is on the market, make sure you vacuum, mop and clean your kitchen and bathrooms every few days.

You also want your home to be free of clutter when selling it. Go through each room and pinpoint the piles of clutter that have built up, and be ruthless. In your living areas, get organized by storing what needs to be stored and throwing away the rest. If your rooms are furniture-heavy, store what you don’t need or take it to a friend’s house. Go through your bedrooms and put away personal items. Get a head start on packing by thinning out your closets with out-of-season clothing. Pare down your outwear, especially if you have a coat rack near an entrance. Pack away extra coats, shoes, umbrellas and other outdoor gear you won’t need while you’re selling.

Problem areas

In the kitchen, clear off the counters and organize your cabinets (they will be opened!). Pack away kitchen items you can do without – the piles of storage containers, party serving dishes, and specialty pots and tools you rarely use. The extra room will make your kitchen feel more spacious.

In the bathroom, move toothpaste, makeup and other items from the counter to a drawer or cabinet (neatly though, don’t just toss everything in the drawer). Put out a new bar of soap on a sparkling clean soap dish (if you can’t get all the dried-up soap off, buy an inexpensive new one.) Pack away medicine for ailments people don’t care to think about – laxatives, athlete’s foot, etc. Don’t leave your toilet bowl brush or plunger next to the toilet – a better place for those items is your utility closet.

Scrub your tub or shower stall until it looks new, and clean it every day to keep soap scum and mildew away (that includes fishing hair from the drain). Replace your shower curtain liner. Limit yourself to one shampoo bottle and one bar of soap or one bottle of shower gel. Use a wash cloth daily? Dried up, dirty wash clothes are a turn off. Toss it into the laundry and replace it after one use. Inspect your towels – only display clean, hole-free towels. If the edges on all your towels are frayed, pick up new, inexpensive ones to display.

Utility areas

Mudrooms, basements and laundry rooms can be the toughest areas to deal with when selling. Don’t let the project overwhelm you. First, throw away the junk. Then pack items you need but use rarely into storage bins or boxes and neatly stack them on shelves. Having the area clean and freshly painted is important. If you have pets, make sure food, litter boxes, pet toys and grooming tools are not in high-traffic areas.

After you’ve prepared your home inside and out, have a friend or neighbor walk through and tell you what should be changed. You need to choose someone who is not afraid to be honest to do this. The feedback can really help in the first step of the home selling process.

The first step in home selling is to get your house ready for market

RE.com Tips & Tools — Fri, 19 Jan 2007 16:20:00 GMT

The first step in home selling is to get your house ready for market.

Take a critical look at your house

Give it curb appeal

Clean and de-clutter the inside

Problem areas

Utility areas

How to take the emotion out of selling a home

RE.com Tips & Tools — Fri, 19 Jan 2007 14:52:00 GMT

Memories are priceless, but putting them aside can help you get real money at closing

As she looks around her living room, Linda Estes can’t help but think of the time she spent caring for her ailing parents in that very room. There were difficult times, to be sure, but also memories she treasures now that her parents are gone.

So Estes, a broker at RealEstate.com’s Portland, Ore., office, understands the emotional internal conflict some clients feel as they prepare to sell their home.

“Buying and selling real estate is such an emotional thing” to begin with, she says. Add memories of bringing your first baby home to the nursery you painted yourself, family picnics in the backyard and cozy evenings playing cards in the paneled den and it gets even harder to see your home the way a potential buyer might.

If you’re ready to move on, but not quite ready to leave everything behind, it may help to take a step back.

“One of the first things I do is suggest (sellers) go across the street and look at the house,” Estes says. She asks them what they would do to make the house more appealing. By looking at the home through a buyer’s eyes, they can begin to start thinking about the home sale for what it is – a business deal in which you need to fetch the best price possible.

You can do the same.

“If it’s outdated and doesn’t look good to anybody but you, it’s time to let go,” advises Estes. “And when it’s time to list the house, take down those pictures of family. It’s clutter.”

In fact, packing away family photos can be an important step in taking the emotion out of the selling process. They have to be packed before the move anyway, and when you can’t see them every day you might start to see the other half of the equation: You’re moving to a new place where you’ll create new memories.

Then take the next step by removing other things potential buyers will see as clutter, up to and including furniture.
“Really scale down. You want to show off your house, not your furniture,” Estes says. “Nobody wants to hear, ‘Rent a storage shed and put some of your prize possessions in it,’ but that may be what you need to do.”

The good news is that temporarily letting go of your things can help you let go of the emotions that might be holding you back. Plus, you’re setting the stage for a home that shows better and is likelier to fetch a higher price.
“In this market you have to have everything going for you that you can,” Estes says. “We used to be able to stick a sign in the lawn and have multiple offers. Now you’ve got to go the second mile to make the home appealing.”

How to interview a listing agent

RE.com Tips & Tools — Tue, 16 Jan 2007 16:14:00 GMT

You should ask a REALTOR® some important questions before choosing them to act as your listing agent.

Perhaps your best friend asks you to co-sign a loan for the new car he’s desperate to own. Or maybe your sister won’t qualify for a mortgage on her first home unless you co-sign the loan. There’s only one thing for a good friend or devoted family member like you to do. But before you co-sign a loan for anyone, make sure you understand your obligations and risks.

Picking the right real estate agent to list your home could make the difference between selling quickly at a good profit and settling for a low-ball offer. Here are some questions you should ask to ensure you get the right person working for you.

What are your professional qualifications for listing my home?

Look for someone who works as a full-time REALTOR® and a licensed real estate agent. REALTORS® are real estate professionals who belong to the National Association of Realtors. They subscribe to a strict code of ethics and are committed to ongoing education in the real estate industry. If your home has special features, look for an agent with experience in selling homes that are similar to yours.

What’s your track record for selling homes like mine?

How many homes have you listed over the past six months? A good REALTOR® typically lists one or two homes a month.

How many of the homes you’ve listed over the past six months have sold? It’s a good sign if a REALTOR® sells all or most of the homes he or she lists.
What’s the average length of time the homes you’ve listed have been on the market? It’s reasonable to take 90 to 120 days to sell a home. Much longer than that, and the home was probably overpriced.
What’s the average difference between the asking and the selling price of the homes you list? They should be close.
How much of your business is repeat or referral business? Successful agents have satisfied past customers and are therefore more likely to satisfy you.

Are you a disclosed dual agent?

This term means your agent is allowed to act on your behalf and simultaneously represent the person buying the house from you. To avoid this conflict of interest, hire an agent who will work for you alone. Otherwise, you could find yourself fielding low-ball offers from your agent’s other customers.

Is this the area of the city or region where you normally work?

Look for an agent who knows your area well. He or she will have a good idea of the best price you can get for your home and should have a network of other agents who are searching for homes in your region.

Do you have suggestions on ways to increase my home’s value?

A good listing agent should be able to tell you how to “stage” your home so it’s more appealing to potential buyers. Repainting in neutral tones, placing fresh flowers in the living room and home-baked cookies on the kitchen counter can speed up the sale of your home and put thousands of extra dollars in your pocket.

How often will you keep in touch with me?

Your REALTOR® should keep you regularly informed about potential buyers or real estate agents who have visited your home or expressed an interest in it, feedback from people who have viewed your home and all marketing activities. It’s not unreasonable to expect a daily telephone call, fax or e-mail with an update. Some offices have software that automatically notifies you, via e-mail or fax, every time someone tours your home.

Will I be working with you alone, or a member of your team?

An agent with many listings may hire employees to handle some aspects of the business, such as administrative work. There’s nothing wrong with a team effort to help you sell your home. But make sure that your agent is the one who will show your home, negotiate the sale and handle every other detail of the transaction. If your agent is taking a vacation in the near future, make sure you meet and are happy with the agent who will be filling in while he or she is away.

How will you price my home?

You don’t want to screen out potential buyers with an inflated price, or sell your home for less that market value. Your agent should be able to recommend a listing price based on a recent market analysis of your area that includes the recent selling price of homes similar in size, condition and amenities to yours.

How will you market my home?

An agent should list your home with the local and national Multiple Listing Service (MLS), share details of the listing with other REALTORS,® and market it on the Web. In addition, he or she should arrange an open house for real estate agents, regular open houses on weekends for the public, plus individual open houses for prospective buyers by appointment. This includes creating a detailed property fact sheet that can be passed out containing specific information on your home’s features and any home improvements you have made.

What will be included in the listing agreement?

Most contracts specify that you can work with only one listing agent. They also spell out the beginning and ending dates, which should be negotiable. It’s reasonable to allow an agent three to six months to sell your home. Agents cannot, however, provide a written guarantee that they will sell your house within that period of time. The length of time it takes to sell a home depends on many factors (such as market forces) that are out of your agent’s control.

It’s in your best interest to also specify in the listing agreement that your agent can accept offers only from buyers who have been pre-approved for a loan.

How are you paid?

Most agents are paid entirely by commission -- usually four to six percent of the selling price. And in most areas of the country, the person who is selling the house pays that commission from the proceeds of the sale. Find out whether there are any other fees, such as administrative costs.

Can you provide me with references?

A good REALTOR® should be able to provide you with references from satisfied clients who have sold homes in a similar price range in the area where you live.

Find a REALTOR® in your area to help you sell your home.

What to do when your home doesn't sell

RE.com Tips & Tools — Tue, 16 Jan 2007 16:12:00 GMT

Don't sit back and let your home languish on the market. There are steps you can take to get that sale.

Your home’s been on the market for months with hardly a nibble. So, what’s the problem? It could be one of a number of factors. Fortunately, turning things around may be easier than you think.

Problem: The price isn’t right

If your house hasn’t been getting any action, it’s very likely overpriced. Homes that are competitively priced usually get snapped up quickly in a good market. The question is how do you determine its fair market price?

A good place to start is to ask a few real estate agents for an independent appraisal. Request a comparative market analysis (CMA) to find out what comparable homes in your neighborhood are currently selling for. Visit a few open houses and see how they compare to your listing. Factor in the economy and current interest rates. You may also want to talk to a real estate lawyer about creative financing options that could make it easier for first-time buyers to make a down payment.

Problem: Bad timing

Your problem may just be that you put your home on the market at the wrong time. Unfortunately, you can’t always have the luxury of choosing when to sell. Nor can you know when similar, neighboring homes are going to be listed. But, if you can, wait until the spring or autumn when there are usually more buyers and your home is more likely to show well. It can be more difficult to sell your home during summer or winter holidays. Not only will you encounter fewer buyers but you may also have to contend with heat, cold or snow.

Problem: Lack of curb appeal

We all know that you shouldn’t judge a book by its cover. But when it comes to buying a home, curb appeal is an important factor. The exterior of a house is the first thing people see and it usually sets the tone for what’s inside.
If shingles are falling off your roof and your front yard is overgrown with weeds, chances are buyers will assume your house is shabby on the inside, too. Fortunately, sprucing up the outside doesn’t have to cost a lot. All you have to do is put your best foot forward. Start with the following:

Mow the lawn, rake the leaves, weed the garden and trim overgrown trees and shrubs.
Add fresh sparkle by cleaning the windows.
Give an old door a new look with a fresh coat of paint and newly polished hardware.
Avoid having your house labeled a “fixer-upper” by attending to obvious needed repairs.

Problem: Interior design

Put aside your personal style and preferences. Make your home as appealing to as wide an audience as possible. Most people can’t visualize beyond what they see. So while you may love the look of crimson red walls in your dining room, it may be scaring off buyers who are more conservative and can’t get past the dark walls.

Here are some other things to look out for:

Clean clutter and dust for cobwebs to keep your home looking like a showpiece.
Remove overly personal items like photographs (it’s easier for the buyer to picture themselves in your home if they don’t see you).
Paint overly dark or bright walls with a light, neutral color.
Touch-up nicks on walls and molding.
Make sure your home is well aired and free of any unpleasant odors. Don’t smoke indoors and avoid cooking foods with strong smells, like fish or curry when potential buyers are expected.
Start baking -- especially before an open house. There’s nothing like a home that smells like fresh bread. If you’re rushed for time, create a similarly enticing aroma by boiling a pot of cinnamon and water.

Problem: Poor marketing

Not getting many people to come and view your home? Maybe the problem has nothing to do with your home and everything to do with how it’s being marketed.

If you’re acting as your own agent, you’re cutting out a huge number of potential buyers from finding out about your home through your local real estate board’s Multiple Listing Services (MLS). You may sell faster for a better price by listing with a local REALTOR®.

Perhaps the problem is you have an ineffective agent. If so, once your contract is up, consider hiring another REALTOR® who comes with a great record and can provide you with references from satisfied clients. Make sure you also find out how they handle open houses and multiple offers.

If you do decide to go it alone, in order to reach as many prospective customers as possible, advertise in your daily newspaper, online and with local flyers. Be descriptive and be sure to feature an exterior photo. When it comes to signage for your lawn, invest in a professional-looking sign that tells buyers you mean business.

Selling a home on a busy street

RE.com Tips & Tools — Tue, 16 Jan 2007 15:28:00 GMT

Emphasizing the positives can help overcome this potential problem.

Selling a home on a busy street requires a determined seller who emphasizes the positive aspects of the home.

In general, homes on busy streets sell for less than comparable homes on quieter streets. You’ll have to take that into account when setting the price. Keep in mind, a real estate agent familiar with your neighborhood can help you with many aspects of selling your home, including setting a price that will attract interest in spite of the traffic.

Know your market.

If you’re on a busy street, you may be close to work centers, which is a definite plus to certain buyers. Your home may also be in a historic neighborhood, so think about selling to young professionals who crave a piece of history.

Although most people would rather not live on a busy street, think about trying to market your home to single people and young couples who don’t want to be bothered by kids playing in the street. Remember that so-called quiet neighborhoods are full of noise, too, like lawnmowers, leaf blowers and kids playing basketball.

Create your own home zone.

You might also have better luck selling a home on busy street if you put up a decorative picket fence and attractive plantings to separate your property from the road. This will add charm and also help people focus on the house instead of the proximity of the street. In fact, anything that softens the look of your property can make it stand out against the harsh environment of the busy street.

Above all, don’t give up if you’re selling a home on a busy street. Just remember to sell the benefits of your home. If it’s priced fairly, you’ll attract the right buyer.

Tips for selling a home in winter

RE.com Tips & Tools — Tue, 16 Jan 2007 15:26:00 GMT

Creating warmth and an inviting feel can get results.

When you’re selling a home in the winter, fewer buyers are in the market and homes do not show as well when the grass is brown and the trees are bare. Luckily, there are things you can do to increase your chances of making a sale.

Curb appeal.

Let’s start outdoors. Curb appeal is an important element of selling a home. Many buyers won’t even go inside homes that don’t look great from the street. You won’t have flowers blooming in winter, but that doesn’t mean the yard and landscaping can’t have the necessary appeal for selling a home.

Make sure the yard is raked and the grass is evenly mowed. Remove acorns, pinecones and sweet gum balls. Clear the gutters. Bare spots become even more obvious in winter, so do what you can to camouflage them. Lay mulch down around shrubbery and in flower beds, and consider a bird bath or some other outdoor feature to add charm. A chimenea or any portable outdoor fire pit can bring warmth to a patio or deck. Leave the furniture out when you’re selling your home rather than bringing it indoors for the winter.

And, of course, it is important that the exterior of your house be in the best shape possible. Faded or peeling paint or warped siding is even more obvious in the winter, so take care of that before listing your house.

A warm interior.

When you’re selling a home in winter, your indoor challenge is to keep the space warm and inviting. One simple thing to do is make sure the furnace or central heat is set high enough before showings that the house is warm and comfortable. Fireplaces can help sell your home, so light them for showings to highlight this romantic showpiece. Keep them clean when they’re not in use.

Another nice touch is to drape a warm throw over the couch, bringing to mind cozy evenings curled up with a book. And don’t forget the old favorites of baking cookies before showings or simmering cinnamon and other winter spices on the stove. Those comforting smells will exude warmth and help your home feel cozy.

Bring in the light, and some green.

Light is especially important during the short, dreary days of winter. So, when you’re selling a home during the cold season, make sure you take full advantage of natural light. One advantage of bare trees is that your home gets more light on sunny days, so make that work for you. Turn all the lights on before a showing to further brighten the space.

Nice green, leafy plants can also warm up the interior of your house. Fresh flowers add color and remind buyers of the promise of spring. And you might want to bring the outdoors in: Many homes have better views in the winter, when the trees are bare of leaves. Make sure windows are clean, sparkling and free of heavy drapery that would obscure the views.

One positive thing to keep in mind is that you have less competition when you’re selling a home in the winter. Emphasizing the warmth and coziness of your house can be just what it takes to make your home “the one” for the cold-weather buyer.

7 tips to sell your home

RE.com Tips & Tools — Tue, 16 Jan 2007 15:23:00 GMT

Price, condition, competition, access -- these and other factors can mean the difference between a speedy sale and no sale.

You’re set to buy a new home, but you can’t go ahead with your plans until you find a ready buyer for the home you currently own. With more homes on the market today, how can you make sure yours will outshine the competition? Here are some suggestions:

1. Price. Real estate agents emphasize the importance of pricing your home "to sell," which means at the market price, not a higher speculative price that you merely hope to receive. Market-level pricing is especially important when the supply of comparable for-sale homes in your area exceeds the demand to buy those homes.

2. Condition. Homes that are in great shape typically sell more readily than comparable homes that are in need of repairs or that have out-dated décor. If you’re looking for a quick sale, clean out your clutter, pack up your personal items, neutralize any unusual colors and make any necessary repairs before you put your home on the market.

3. Feedback. Some real estate agents will pass along feedback they’ve received from prospective buyers who’ve seen your home. A specific complaint from one or two individuals might not be material since no home will ever appeal to every buyer. However, a number of similar criticisms from multiple buyers might merit consideration.

4. Competition. If you’re able to figure out why other homes on the market sold before yours did, you might be able to use that information to make your home more attractive to buyers. Tip: Open houses are a great way to check out other homes on the market in your neighborhood.

5. Marketing. Don’t underestimate the importance of Web sites in selling your home. Ask your real estate agent for a list of Web sites on which information about your home will appear. Make sure the information is correct and presents the best features of your home. Photos are important too.

6. Showings. Very few buyers will purchase a home they’ve never stepped inside, and some real estate agents will bypass a home that’s too difficult to show. If you severely limit the days and times when your home is accessible, you may also severely limit the number of people who might choose to buy it.

7. Bonus. Real estate agents disagree on the wisdom of buy-side bonuses, which are extra payments or gifts that reward the agent who finds a buyer for your house. Some agents believe bonuses are effective while others suggest your money would be better spent in additional spiffying-up of your home. Ask your agent for advice.

How to sell a home in an up-and-coming neighborhood

RE.com Tips & Tools — Tue, 16 Jan 2007 15:22:00 GMT

Know your market and price appropriately to make the sale.

The phrase “up-and-coming neighborhood” can be code for a risky or dangerous neighborhood. These areas are often close to a city’s downtown, and that usually brings with it a certain amount of crime. But these risks also usually mean home prices in up-and-coming neighborhoods are comparatively low, and that attracts young, hip buyers looking for a good deal in a funky area.

Keep your potential buyer in mind

When you’re selling a home in an up-and-coming neighborhood, it helps to keep that buyer in mind. They’re gambling that the neighborhood will continue gentrifying, and are attracted to its diversity and proximity to amenities. They’re thinking about the possibilities for your home, and how its relatively low price leaves them money for renovations.

In short, buyers in up-and-coming neighborhoods are focused on possibility, and your home needs to take advantage of that. Removing personal and outdated items leaves the canvas clean for buyers to see their own belongings in the space. Removing heavy, old-fashioned furniture can modernize an older home; you might even want to buy some inexpensive hip, modern furniture to stage the living room or master bedroom.

Many buyers looking in up-and-coming neighborhoods are single people or young couples who don’t have children yet, so a child-friendly environment probably isn’t important to them. A second bedroom made into an office with a pull-out couch or a futon might be more appealing than one with a crib and toys. If you have young, single neighbors, you might ask them what they would like to see in a home.

Focus on the right market, and the right price

Make sure you hire a real estate agent who understands your neighborhood and the type of buyers attracted to its up-and-coming status. Ask her to consider advertising in venues seen by the target audience -- your city’s alternative weekly, artist collectives or Web sites for young professionals, for example.

Finally, don’t overprice your home. Base the selling price on comparable sales in your area, not what you think prices will be in a year or two. A fairly priced home will attract more potential buyers and sell more quickly. This is especially true in an up-and-coming neighborhood, where value is the key to attracting new homeowners.

The best time to sell your house

RE.com Tips & Tools — Tue, 16 Jan 2007 15:15:00 GMT

The housing market’s seasonal swings are just one of the factors you’ll want to take into account when you pick your moment.

Everything has a season – including selling your house. Listing at the right moment could mean more money in your pocket.

Traditionally, spring is the hottest season for real estate. Sales peak in April and May and stay strong in June and July. It’s a good season for families to move, between school terms and while the weather is warm. People have just received their tax refunds, which they can use to help finance a down payment. And the nice weather and beautiful flowers in spring and early summer make it a great time to show your home.

In fact, a full 60 percent of America’s moves take place in the summer. But closing a sale can take weeks, so it’s a good idea to list your home early in the season.

August brings a lag in sales, as people go away on vacation and start to think about the new school year. Then sales surge briefly in the fall before dropping in winter as buyers and sellers focus on the holidays. But by January, buyers are out again, and sales steadily increase into spring.

If you can’t sell in the peak season, consider listing your house in winter. It may sound counterintuitive, but you probably already have the house decorated and cleaned for holiday entertaining, so it shouldn’t be hard to get it in shape for showing. Moreover, you will have less competition and may get a better price. Another plus: buyers in winter are less likely to waste your time or draw out the closing. They may want to close before the New Year so they can claim the mortgage deduction on their tax return, which you could turn to your advantage in pressing for a quick deal.

But seasonal ups and downs of the market aren’t absolutes. They don’t affect home sales as much in temperate climates, like California and Florida, where people house-hunt year-round. And warmer weather in the Northeast and Midwest in November and early December can prolong real-estate seasons there.

Of course, selling in the hot season isn’t the whole story. You should pay attention to your local housing market and try to list during a seller’s market, when there will be more competition among buyers for your home – which could mean a better price, a quicker closing and fewer conditions on the offer. Your local real estate agent will be able to tell you what the local housing market is like.

Be aware of the underlying factors that influence the local market. Recent layoffs could mean a glut of desperate sellers, possibly driving down the market price of your house. Alternatively, you may be in an area of the country where housing prices are going through the roof. For example, the price of a house in West Palm Beach-Boca Raton has shot up by almost 77 percent in the last three years. You may not live in Boca, but if prices in your area are on the rise, it can create a rush of buyers who want to close a deal before the prices go higher. Anticipation of an increase in interest rates can have a similar impact on the urgency of buyers.