1. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
2. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
3. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
4. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
5. How is the home market? If it’s good, you may get top dollar for your home.
6. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

Deadly Mistake No. 1: Pricing Incorrectly

Every seller wants to get as much money as possible when selling a home. A listing priced too high often results in less money for the seller. If your home is not priced competitively, people looking in your price range will reject it in favor of other, larger homes for the same price. At the same time, the people who should be looking at your home will not see it because it is overpriced! Overpricing usually increases time on the market, and adds to the carrying costs. Ultimately, many overpriced properties sell below market value.

Deadly Mistake No. 2: Failing to “Showcase” the Home

Buyers are looking for a home to live in, not just for a house. Owners who fail to make repairs, such as sprucing up the house, touching up the paint and keeping it clean can chase away buyers. If you were selling a car, you would wash it, or maybe even detail it to get the highest price. Houses are no different.

Deadly Mistake No. 3: Using the “Hard Sell” During Showings

Buying a home is an emotional decision. Resist the temptation to talk the entire time a buyer is there, and let them discover things on their own. People like to “try on” a house and see if it is comfortable for them. It’s difficult for them to do that if you follow them around pointing out every improvement that you’ve made. It may even have the opposite effect you want.

Deadly Mistake No. 4: Mistaking Lookers for Buyers

For Sale by Owners nearly always get more activity than homes listed with an agent. No question about it, Realtors will only bring qualified buyers. A qualified buyer is one who is ready, willing and able to buy your home. We find that most people who look at For Sale By Owners are just starting to think about moving. They may be good buyers, but they are six to nine months away from being ready. They don’t want to bother an agent yet, so they call the “By Owner” ads to get a feel for what’s available. They may have a house to sell first, may need to save some more money or may have credit that needs fixing. When everything is in place, that’s when they go looking with an agent.

An agent will ask buyers how much they can really spend for a home, discuss down payment, evaluate credit and decide a realistic monthly payment. It’s necessary to find out how much will be realized when their present home closes. Unless your Realtor finds out all the facts first, you must ask all these questions before the buyer crosses your threshold. Otherwise, you may have a parade of Sunday afternoon shoppers with a dream of owning a home someday.

Deadly Mistake No. 5: Not Knowing Your Rights and Obligations

Real estate law is extensive and complex: the contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through, or cost you thousands for repairs, inspections and remedies for title defects. You must know whether the property can legally be sold ”as is” and how deed restrictions and local zoning will affect the transaction. If there are defects in your title, or if the title or the property is in conflict with local restrictions, you or your Realtor must remedy them. Also, current laws allow the buyer an option period to inspect and approve of any inspection reports and repair bids. Know your alternatives here.

Deadly Mistake No. 6: Signing a Listing Contract with No Way Out

Many times an agent will have good intentions about marketing your home, but circumstances can change. In cases where the agent isn’t performing, you should have the right to fire your agent. In some companies the broker will assign your listing to someone else in the office, someone you didn’t personally select. Always protect yourself by getting a guarantee of performance which gives you the right to cancel anytime for any reason.

Deadly Mistake No. 7: Limiting the Market and Exposure of the Property

The two most obvious marketing tools (open houses and classified ads) are only moderately effective. Surprisingly, less that 1% of homes are sold at an open house. Agents use them to attract future prospects, not sell the house! Advertising studies show that less than 3% of people purchased their home because they respnded to an ad. If a machine answers, most callers just hang up without leaving a message.

The right Realtor will employ a broad spectrum of marketing activities, emphasizing what he or she believes will work best for you. There are dozens of more effective ways to find buyers than just open houses and advertising. Did you know that most calls come in during business hours when sellers are at work, and most home showings are between 9 a.m. and 5 p.m. Monday through Friday? We market homes 24 hours a day, 7 days per week, 365 days a year!

Deadly Mistake No. 8: Choosing the Wrong Realtor

It’s very likely that you don’t interview people very often, and yet in order to find the right Realtor, you may interview several. The quality of your home selling experience is dependent upon your skill at selecting the best qualified person.

It’s interesting that in the real estate business, someone with many successfully closed transactions almost always costs the same as an inexperienced agent. Bringing that experience to bear on your transaction could mean a higher price at the negotiating table, selling in less time and with the minimum amount of hassles. The world is populated with Realtors who are wrong for you.

The sale of your home could well be the most important financial transaction you have ever been involved with. The person you select can make it a satisfying and profitable activity or a terrible experience. It’s your home and your money. The choice of your Realtor is up to you. Make the selection carefully.

1. Put fresh or silk flowers in principal rooms for a touch of color.
2. Add a new shower curtain, fresh towels, and new guest soaps to every bath.
3. Set out potpourri or fresh baked goods for a homey smell.
4. Set the table with pretty dishes and candles.
5. Buy a fresh doormat with a clever saying.
6. Take one or two major pieces of furniture out of every room to create a sense of spaciousness.
7. Put away kitchen appliances and personal bathroom items to give the illusion of more counter space.
8. Lay a fire in the fireplace. Or put a basket of flowers there if it’s not in use.
9. Depersonalize the rooms by putting away family photos, mementos, and distinctive artwork.
10. Turn on the sprinklers for 30 minutes to make the lawn sparkle.

Getting Ready To Sell…

1. Make a list of the activities-movies, health club, church-you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.
2. Check out the school district. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future.
3. Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type-burglaries, armed robberies-and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?
4. Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?
5. See if you’ll make money. Ask a local REALTOR® or call the local REALTOR® association to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. A REALTOR® or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood-like a new school or highway-that might affect value.
6. See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your family?

1. Decide how much home you can afford. Your mortgage broker can assist you by getting you prequalified for a loan.
2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report.
6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
7. Organize all the documentation a lender will need to preapprove you for a loan.
8. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.
9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
10. Find an experienced REALTOR® who can help you through the process.

For example, if you have less cash on hand for a down payment or for closing costs, your Realtor® and lender can often still help you put together an offer that will work.

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

• Downpayment
• Loan origination fees
• Points, or loan discount fees, you pay to receive a lower interest rate. (Note — we generally advise against paying points, and we don’t recommend lenders who push them).
• Appraisal fee. Note that often the lender will require a check for the appraiser up front. Typically this will cost about $350.00.
• Private mortgage insurance premium (if applicable).
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees
• Title policies.
• Survey (if applicable).
• Inspection fees. Generally in our service area it’s traditional for the buyer to pay for whole house inspection. The price for this depends on the size of the home. Paying this at the time the inspection is done can often save you money. The seller generally pays for the pest inspection.
• Notary fees.
• Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.

1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and make your offer more desirable to the seller.
2. Stay in close touch with your real estate sales associate to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market.
3. Scout out new listings yourself. Look at Internet sites, newspaper ads, and drive by the neighborhood frequently. Maybe you’ll see a brand-new “for sale” sign before anyone else.
4. Be ready to make a decision. Spend lots of time in advance deciding what you must have so you won’t be unsure when you have the chance to make an offer.
5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t try to go too low to get a deal. In a tight market, you’ll lose out.
6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell your house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short period.
7. Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy anything. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.

1. Be choosy, but be realistic at the same time. There is no perfect home.
2. Do your footwork before you start looking. Decide specifically what features you want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.
4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.
5. Once you know what price range you can afford, review the list of must-have features for your home. Will they all be available? Should you consider building equity in a “starter home” or condo first?
6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
7. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
8. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.
9. Don’t let yourself be “house poor”. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.
10. Make sure you do a whole house inspection, and ask the seller to clear pest. It’s also a good idea to ask the seller to provide a warranty from the seller to cover defects within one year.
11. Get help. Consider hiring a Realtor® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.