My wife and I sold our home and bought a new one in 2011. It was a truly crazy process and involved our home being under agreement 4 times before finally being sold! What an ordeal. Thank you so much Ron April of Remax in Newburyport for being slow and steady throughout the entire process, which for us lasted close to 2 years in total! Also big thanks to Ron for for educating us along the way. I have been in public practice for over 20 years and I have seen many real estate transactions come and go. Here are 5 top tips for folks who are trying to sell their homes:
1) First, hire a quality real estate broker to help you through the process. The broker should provide you with independent advice that is in your best interest. He or she will know the local market inside and out and may even know the right buyer for your property. I have found that is best to hire a realtor from a direct referral, someone who has used them before. Do you research here as this is a very important step in the process!
2) According to Ron April, staging your home is the most important thing a seller can do. Repaint the crazy colors that may look great to you (we had amazing orange in our kitchen) and paint a neutral color. Use what I call the DTRS method: Donate, Trash, recycle, Store. Go through your entire home and clean it out! Donate as much as you can to charity and get a tax deduction. Trash what needs to be trashed and recycle the rest. It is often most important to store furniture and items you want to take to your next home that are cluttering the home. You must make the home look as attractive to potential purchasers as you can. A great professional stager can help you with all this, and it is well worth the money they charge.
3) Get your financial ducks in a row before the home is on the market. Pay off your credit cards, car loans, or personal loans if possible. Square away the work situation that may be hanging over your head. Get your bookkeeping or financial planning in order. Take the necessary steps to improve your credit score. All these steps and more are often avoided or simply neglected by sellers and by the time their home sells, it is often more costly to buy a new one!
4) Don’t overvalue your own home – it is worth more to you than any buyer obviously! This is mistake number 1 that sellers make. They totally overvalue their own home and can not believe that it is not worth what they feel its worth. Please do not make this mistake. Your taste in homes in your own and does not represent that of the potential buyer. Understand the market, both the other homes for sale in your area and the vital statistics of the potential buyer
5) Take hold of the BIG picture – long term rates and home ownership. Know the financial landscape in your area. How many homes are for sale in your hometown? How long have the homes been on the market? What are interest rates for fixed and variable rate loans? All these factors and more will help you form a realistic opinion of the real estate market and help you with the home selling process.
Listen below as Win Damon of WNBP in Newburyport and I review this topic on radio 1450 AM
Stuart Steinberg, CPA, MBA has been in public practice for over 20 years. He is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client. He can be reached at stu@erocktax.com or (978) 247-5569