12 Action Items When You Sell

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1.    Gather Information

2.    Prepare Handouts

3.    Signage

4.    Contracts

5.    Disclosures

6.    Assemble A Team

7.    Low Cost Prep

8.    Major Prep

9.    Staging

10.   Inspection

11.   Photos

12.   Lock Box 

One practice even brokers overlook is having everything ready on day one. Pull together the facts about your home. Sources include the property appraiser's office and the appraisal when you bought your home. 

If you have a survey make copies. This is good additional information for buyers. And assuming no substantial changes to your lot, building footprint, and the age of the survey; title companies and lenders might accept it. This saves your buyer the cost of a new survey. A selling point for you.

Check your permit history. If there is an issue, clean it up now before it becomes a contract problem.

Know your insurance costs and flood zone status. If you are located in a flood risk area, location of improvements on the lot or an elevation certificate might reduce the cost of flood insurance. If you were the buyer wouldn't you want to know?

Have a basic fact sheet. Go a step further and prepare something like "Some Things You Should Know About My Home." This is a chance to highlight features not readily apparent on a walk through; such as, transferable warranties, big-ticket upgrades, not-visible system improvements, and nearby community amenities.

Are you going to sell your expensive home with a 5-buck sign on a flimsy wire stand? Get a quality sign with space for your phone number. Signpost companies will install a post when you go on market and remove it after you close. Sturdy metal frames are another good option and an industry standard. Most are designed to hold typical-sized, for-sale signs. See our low cost options.

In addition to your sale sign, have a weather-resistant outside container (info box) with plenty of fact sheets. Make it easy for a drive-by (or nosy neighbor) to get information about your home. Insert plenty of fact sheets but not too many. You might occasionally have to replace them if you edit the fact sheet. 

Okay, someone wants to buy your home. Great! Do you have a contract form ready to get the terms in writing? A buyer's broker will bring you an offer using their forms. But can you rely on a contract brought to you by an unrepresented buyer? You should have these contracts (perhaps any contract) reviewed by a broker or attorney.

Whether or not you are willing to work with buyer brokers, you might get offers based on your own efforts. You must have contract forms ready. There are many contract forms available online, but this is not a forum to discuss the differences. Frankly, the contract preparation and management process is laden with potential issues. Early in my career I could prepare a 3-page contract on a typewriter (yes- showing my age). I once wrote an amendment on a napkin at the local diner. Those days are long gone. Now, contracts are about a dozen pages with dozens of possible riders and disclosures. While many contract forms are streamlined with fill-in-the-blanks options, you still need to know how to handle those blanks. Moreover, from contract signatures to closing, there are dozens of critical path timelines.

CAUTION:  You might have the professional, business, investor, or personal background to handle contract preparation and contract management. But if not, and even if you do, consider subbing out this particular for-sale-by-owner process. One option is a real estate attorney. Another is a limited services broker. Nothing on this website should be considered legal or professional real estate advice. If you have questions about preparing documents, interpreting contract language, or choosing appropriate disclosures you should speak to an attorney or real estate professional.

Disclosures are intertwined with the contract. As seller, you need to provide numerous, legally mandated disclosures. Some possible (not all) examples:

• Radon Gas
• Permits
• Mold
• Flood Zone
• Energy Brochure
• Lead Based Paint
• Association
• Property Tax
• Foreign Investment
• Property

The written Property Disclosure also provides some advantages for you:

• Can jog your memory about an issue you need to disclose or remedy prior to selling
• A written disclosure is better than a verbal one if a dispute arises later
• A written disclosure gives buyers a better comfort level with you and your home

Note:  Florida courts have sided with buyers who, after purchase, discovered significant flaws that should have been disclosed by the seller.

AND AGAIN, CAUTION:  You might have the professional, business, investor, or personal background to handle contract preparation and contract management. But if not, and even if you do, consider subbing out this particular for-sale-by-owner process. One option is a real estate attorney. Another is a limited services broker. Nothing on this website should be considered legal or professional real estate advice. If you have questions about preparing documents, interpreting contract language, or choosing appropriate disclosures you should speak to an attorney or real estate professional.

You will eventually deal with title insurance, most often with a title company. It makes sense to identify someone to work with ahead of time. A title company you establish a pre-sale relationship with should gladly explain your seller-side costs and the services they can provide. After all, they want your business.

If you enter a contract via a buyer's broker, that broker may have a title company they typically work with, but you are entitled to suggest your title company, particularly if your title company has already conducted some basic searches for you. And if you obtain a buyer by your own efforts, most buyers will welcome a pre-identified title company. 

The title company, while not a substitute for a broker, will be able to answer many questions about title insurance (of course); but also escrow, searches, wire transfers, and closing.

Also establish a relationship with a mortgage broker. You want someone willing to financially screen a buyer and any pre-approval documents they provide. If an interested non-cash buyer does not have a pre-approval, strongly consider not entering into a contract until one is available. Your mortgage contact can review a pre-approval and provide realistic timelines for financing and closing.

Similar to the title company, new business is the upside for your mortgage contact. Dissimilarly, getting that business will be more iffy. A buyer with a pre-approval letter might be inclined to stay with the lender who provided that. But your mortgage contact might be more competitive. It is surprising that more buyers do not compare loan products. But that's another subject. Just confirm ahead of time that your mortgage contact is comfortable with the assistance you want.

There are several ways to prepare your home that take some effort but are low cost.

• Clean.  Time to tackle those cleaning tasks you have put off. You might not notice the dust bunnies in the corner, the grunge on the ceiling fans, or the dust on the refrigerator. Buyers will. Cleaning your windows has the additional advantage of increasing your home's natural light.
• Sniff.  One of the biggest turnoffs for some buyers is smell. I have worked with buyers who at the first whiff of cigarette smoke want to leave. Surprisingly, some buyers who are smokers have the same reaction. Pets can cause a similar issue. A good cleaning and air freshener might help, but do not replace one irritating odor with another. 
• If you have pets, ask someone who doesn't live in your home to give you an honest opinion. It may be time for carpet cleaning.
• Declutter.  Time to put those loose items where they belong, or at least out of sight. Pack some items into boxes and place those boxes into closets or a corner of the garage if you have one. Consider temporary storage.
• Depersonalize.  You might have an impressive stein collection and be proud of those diplomas on the wall. Those pictures of the family at the theme park bring back wonderful memories. Put it all away. Buyers touring your home are trying to imagine themselves living there. Make it easy for them.
• Landscape.  Buyers will start making a decision about your home within the first few minutes. That first impression can change of course, but why not start off right. And the logical place to start is your front yard and entranceway. Get both in decent shape. A few bags of mulch can go a long way.       

When it comes to spending serious money, the choices become more complicated. If you are not involved in a total rehab-flip, be careful what you spend. Studies show that expensive improvements often return less than their cost. 

Interestingly, one of the consistent winners on return is replacing and upgrading the front door. (Maybe that first impression thing again.) Conversely, expensive kitchen or bathroom upgrades often do not break-even. And do not agonize over smaller upgrades that buyers may not even notice or care about; or if they do, will not pay extra for.

Is your home's exterior looking worn or you cannot get rid of that cigarette or pet smell? Painting the outside and/or inside might be a worthwhile expenditure.

Yes, it can increase your selling price and lessen time on the market. But there is a cost; sometimes substantial, and that cost is generally paid up-front. Instead of staging an entire house, perhaps stage a few rooms. Many stagers will give you recommendations for free or a small fee. Decide what makes sense for your selling-price range and budget.

A buyer will almost always order an inspection but one of your best pre-sale investments is to get your own. A limited inspection, often known as a 4-point, examines the four major components of your home:

• Electric
• HVAC
• Plumbing
• Roof

So why get a 4-point?

• Most contracts allow the buyer to cancel the contract early-on due to condition issues. Cancellation or price renegotiation are less likely if a major component is not the issue.
• A satisfactory 4-point inspection is a terrific handout. It gives you an advantage when buyers are comparing homes.
• If a buyer wants to make an issue out of minor deficiencies revealed from their inspection, you have a stronger negotiating position, particularly within the context of an as-is contract.
• Depending on the age of the home, a buyer's property insurance carrier might require a report based on 4-point items.

Another upfront expenditure that is worth the cost. Many buyers search online. Good photos are enormously important.

When you look at homes for sale online, one thing becomes apparent: homes with professional photos and those without. I have seen way too many gloomy interiors and tilted exteriors. Many FSBOs and some brokers figure their photo skills are good enough. Usually they are not.  

You might have access to  photos from a prior sale or see some good online pictures of nearby amenities. Do not use someone else's work without permission. You can be sued.