For many of us, when we think about selling our home, our goal is to walk away with the highest "Net Proceeds" (most money)! This blog is designed to help you get there as simply, intelligently, and inexpensively as possible.
Some home sellers have other motivating factors; Getting top dollar for your home might
be the highest priority. Perhaps you need to sell to accommodate a job transfer, or maybe you want to close escrow quickly so you can purchase another home that you've submitted a contingent offer on. But in each of those cases wouldn't you also benefit from the best financial outcome? My job as a listing agent and a real estate consultant is to guide and advise my clients on exactly
get to that finish line...and to do it with a smile.
Throughout this post, notice how many times I also address what we're
not doing. I do this in an effort to show you another point of view. We need to change our mindset from that of a home seller to that of a home buyer. We want to think like a buyer; even think like our buyers' Realtors. Taking this point of view from the very earliest possible moment will not only open the door for the very best offers to land on our desk, but it will also build the foundation for a smooth and seamless close of escrow.
Below, I've outlined a number of key steps that, when addressed intelligently and thoroughly, ought to result in the best possible outcome at closing time! Some of the items are outlined in greater detail, but understand this; Any one of these elements might be the one that catches your buyer's eye. We won't know which one it is until we're in contract...so we've got to do 'em all!
1) Save your money. Don't remodel for your buyer!
"Honey! Don't you think that if we redo the kitchen we'll get a much higher sales price?" This is such a common misconception. The
simple answer is to this question is, Yes. However, the practical, bottom line answer is almost always a resounding NO! You may put a stunning new, $40,000 kitchen into your home and find out that your sales price did, indeed go up up...by $30,000. THAT is no bueno! In addition to the can of worms we often encounter throughout the remolding process, you've now netted a $10,000 loss.
I've been a paid consultant on nearly 75 flips with a large Northern California investment group. If I could yell at the top of my lungs something I've learned throughout that process it's the fact that we will NEVER know what our buyer really wants!!
"Why not?" Because we don't even know who our buyer is!
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Paint + Hardware can really
dress up a kitchen for fractions
of the price of a remodel. |
This doesn't come from real estate class, or a case study. I've seen first hand, countless times, that a property was purchase, then updated and upgraded, only to hear at the very first open house,
"Wow! This is great! If we just refinish the cabinets in white then put in that hardwood that we both love so much, this place would be perfect!" Yes, they're already talking about ripping out the upgrades that you just installed. It happens all the time.
"So what do we do to spruce up our kitchen? It looks pretty sad." We spend a couple hundred bucks making it look twice as good as it does now. Simply installing some new hardware or a refinish/re-staining goes a long way. Then we let your buyer choose
their new kitchen. They're welcome to make those choices when the house is theirs.
"But what about the sales price? If we don't update the kitchen then it's not going to sell for as much as the one across the street!" That right! It's not. The one across the street has a $40,000 kitchen upgrade. So...it sold for more than yours will. There! Isn't it nice to be told the truth? Price your home appropriately and you'll leave room for your buyers to remodel at their convenience...after close of escrow.
Don't make more work for yourself. Unless you are a licensed contractor, you're never going to make your money back on your upgrades!
"But what about that couple on TV? Flip or Flop! They ALWAYS make money!" You're absolutely right. They do. Probably 95+% of the time. However, Tarek and Christina El Moussa will tell you the same thing I I'll tell you: The first rule of flipping is that
you make your money when you buy...
not when you remodel.
2) Get a home inspection and a pest inspection:
When you list your home for sale, you're actually listing your home...in its current condition...for sale. Do you actually know the current condition of your home, or do you just think you know? Do you know if the floor under the tile in the kids bathroom is in still in good condition? Do you know why that upstairs shower doesn't seem to drain as well as the others? Think about it. The truth is that we aren't selling what we think you own. We are selling what you actually own. Are you curious to know what you actually own? Then get your inspections done.
"Wait, what? Me? I don't want to pay for a home inspection! Isn't it the buyer's duty to inspect anyway? And heck...I have to disclose anything that turns up in the inspection, don't I?. If I don't do inspections...I can't disclose what I don't know...right?" Yes. Both of those statements are true, and I know that for some readers this comes off as counter intuitive, but bear with me while we dig more deeply. This is (among others) where many Realtors and I just don't see eye to eye. I've seen too many tears and too much aggravation to sit idly by waiting for the inevitable obstacle to derail my clients' transaction. Inspections will help us discover the true condition of the home. The findings will either be clean...or important. Both of those findings are equally important.
Knowing the condition of your home in the beginning all but guarantees that you won't be disappointed in the end. You'll know what you're working with. You'll know the truth. You won't be sweating it out during that anxious "home inspection time-frame" after you accept an offer. You'll also have a much better idea of the what proceeds we can expect from the sale because we'll know what we're actually selling.
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Bathroom Floor: Water Damage? A leak behind the wall?
Might be a huge problem!
Nope! This is where the kids dropped their wet towels each day! |
If there was a couple of quick fixes that would help not just secure the best offer, but facilitate the smoothest close of escrow...wouldn't you want to know what those are? What do we need to do in order to show the home in its best light? Keep this in mind too: Virtually all home buyers pay to have a home inspection and pest inspection done before their inspection time-frame expires. So, your buyers are going to discover the true condition of the house and all of it's flaws. Then we inevitably wind up back to the negotiating table! Wouldn't you rather know what's coming in advance, so you're best prepared to address it?
"What if there is something catastrophic that is discovered through a home inspection or pest inspection? What if we can't event afford to make the repairs? Then we're stuck!" Think it about this way: If you can't afford to make the repairs, does that mean that the the problem no longer exists? Of course not! The problem is real and we have real ways to address it.
"Oh man! The roof has a leak and it's caused mold in the living room. You can see it right at the ceiling! We can't afford to fix the roof!" You don't have to.
- You could issue a credit to the buyer.
- You could drop the price of the house.
- You could find a roofer that will allow you to pay him through escrow so you don't have to come out of pocket.
- You can call your home owner's insurance. "What. What? Call my homeowner's insurance rep for a leaking roof?" Yep! Did you know that in many cases damage caused from a leaking roof or faulty plumbing can be claimed on your homeowner's insurance?
The point is that it's best to find the problem areas so we can address them in advance. Again, keep in mind that these 'discoveries' were either going to come from you...or from the buyer a few weeks down the road. Now that you know in advance about a couple of repairs that might need your attention, you can remedy whatever the circumstance is proactively...without the pressure of a contract over your head.
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2 weeks, $10, and a bit of elbow grease
is all it takes to brighten up
this dead, overgrown yard. |
3) Maximize Curb Appeal:
Insert cliche here! "You don't get a second chance for a first impression." I want you to remove the following thought from your mind..... "Gosh, that doesn't look that bad!"
"It's not bad" isn't the level we want to hold ourselves to. We won't know which element of the home will be the one that 'closes the deal' with your new buyers, so we need to make sure that each element shows at it's best. This starts with the first thing a buyer sees when they drive up to the property; the condition of the front yard and the front of the home, or what Realtors call "Curb Appeal."
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| There's nothing expensive about this landscape. It's simple, bright, and vibrant. |
Typically we know well in advance that we're going to be selling our home. This is the time when we want to jump on the yard. A little bit of fertilizer, some seed, some water, and some attention will take a yard from drab to dramatic. Keep you lawn long and lush. Keep your trees and shrubs neatly trimmed. Keep bushes away from the siding of the house, and keep tree branches well clear from the roof. Prune your shrubs so that they don't obstruct windows. This accentuates the architecture from the outside, and brightens the rooms by letting the natural light in.
Although it's not actually considered "Curb Appeal," use the same idea for the backyard and side yards. Keep it simple, bright, and clean. Just don't neglect them.
4) Start Packing:
Packing? Yep! Get on it! We want your home to show clean, roomy, and inviting. If you're a typical American family, you've probably filled your home with...um...???...stuff! We all have. Well, you're moving anyway...right? You have to pack when you move, so why not start packing in advance? Pack up everything (within reason) that's not necessary for day to day living over the next 75 days. Put it all in storage...or if your budget is tight, just neatly pack boxes into your garage and/or storage sheds. I've found "PODS" to be quite helpful. This way you don't have to move your things twice. Pack your things into Pods, then when you close escrow on your new home you have your Pods dropped into your new driveway.
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Pack it into your garage
if you have to. |
Beyond decluttering your home, (is decluttering actually a word?) packing up your odds and ends makes each of your rooms feel bigger and more inviting. Important too, is the fact that buyers typically don't care to see how your family lives in the house. Yes, that means taking down that painting of Aunt Mable over the fireplace. She'll forgive you. She wants what's best for you too! Depersonalizing the home will help prospective buyers visualize how they might add their own personal touches to their new home.
Bedroom Closets, Bathroom Cabinets, Linen Closets, Pantries, etc. should ALL be decluttered. Your closets should be no more than 60% full. Uncluttered closets and storage areas tell your buyer that a family is living here now, and they've got plenty of room.
5) Clean, and I mean clean; DEEP CLEAN!:
I recently asked a client to have his home professionally deep cleaned before we actively marketed his property. He wasn't sure what I meant. What I mean by deep clean is that virtually every inch of every surface of every room is cleaned, dusted, and/or polished. Yep! Under that little spinning plate thingy in the microwave, baseboards scrubbed, ceiling fans dusted, furniture polished, windows cleaned...and screens too. Think of it like selling your car. If you want top dollar, you get it professionally detailed! So how much did it cost to get your house 'professionally detailed'? In this case, an army of experts deep cleaned his home for $350. Too rich for your blood? Then grab some rubber gloves and get to work. Heck, a couple of phone calls, pizza, and some Diet Coke might motivate some extra elbow grease. If not, at least you won't be hungry while you work.
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| Clean, simple, and spacious. |
6) Staging:
"But I'm not a professional stager!" Right; but you don't have to be! Have you ever been to a retail store? The Gap? Macy's? Pottery Barn? There; that's a good start. Use those stores as models to help you "Stage" your home for sale. Pay attention to details. Make each area look like you're trying to sell whatever is on display. Towels in your linen closet? Folded neatly; with like colors together. Pictures on the bedside table? Make them few; sparse...or gone. Try a lamp, a clock, and a book. What about the closets in the bedrooms? Make 'em just like the racks at your favorite clothing store. No...not Ross or K-Mart. I'm talking Nordstrom. If you "Stage" the items at your house as if you were selling them and you needed to get absolute top dollar... Hey, wait! You DO want to get top dollar, but not for your candles and blankets. You want top dollar for your home, so pay attention to the smallest details and you'll put yourself in a position to reap the highest reward. Oh yea. One more thing. Remember that old argument? Toilet seat up or toilet seat down? The answer is easy: Neither. Close the toilet.
7) Paint:
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| Crisp, clean, neutral, and inviting. |
Do you want top dollar? Then you're going to have to get dirty...or you're going to have to pay someone to do that for you. The "Frozen" themed room is great for your 8 year old daughter, but might look like a daunting task to a prospective buyer. Worse than that is that they might see that room as "A girls room." Taking away the idea that it could be a guest room, a boys room, even an office or den. Let your your buyers decorate when they move in. Let's give them a warm and inviting position to start from. Something clean, warm, and neutral has proven to yield the highest returns. Odds are, if you're home's been lived in, the walls are in worse condition than you might think. Don't believe me? Pull that bed; the one without the headboard, away from the wall. Now go paint.
"What about the outside?" Here's where things can get into a gray area. Painting the outside of your home can be quite costly. However, with fresh paint on the outside of the home, home inspectors and potential buyers may see fresh paint as responsible ongoing maintenance. "If the eaves are maintained this thoroughly, I bet the rest of the home is too!" So the topic of outside paint should be looked at on a case by case basis.
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Your List.
Your Time-frame. |
8) Fix it:
What do I mean? If it doesn't work the way it's supposed to work, fix it. What's the main culprit? The rear sliding door. It's just another trigger, negatively affecting the buyers' point of view. A stubborn rear slider might leave buyers thinking, "If the whole house was maintained the way the rear slider was...we should run!" That middle bathroom is still missing the handle for the drain. 5 out of 9 lights in the chandelier are burned out. That drawer in the kitchen has come off the rails. Closet doors don't open and close smoothly? I could go on...and I don't even live there!
None of these items are going to be expensive. Not fixing them, however, could be. Remember point #2 of this blog post? Get a home inspection. The inspection report will leave you with an itemized list of items that you can tend to while you're preparing your home for sale. Again, this is on your time, not your buyer's time.
9) Downsize your furniture:
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| Just 'cuz you own it doesn't mean you have to display it! Keep it simple. |
If you have large furniture items, you may want to move them out, especially if your home is limited on square footage. A large, ten person sectional couch is fantastic in a large Great-Room, but in a 1,240 square foot home, it probably consumes more square footage than a buyer is going to want to concede. If you have the means to remove bulky items for smaller rooms, your home will show at its best. Beyond that, keep in mind, that in terms of staging, less is more.
In this room I'd start by centering the room around the fireplace. I'd remove the love seat, remove the cards from the mantel, take out the TV and TV tray, and the painting above the TV. I'd then arrange the two chairs and coffee table on one side of the room, with the lounge chaise on the other side. Ultimately, getting the most utility or usability out of the room with the least amount of furniture is what we're looking to accomplish.
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Do it.
Just don't over do it. |
10) Bring the outside in:
A one or two plants in the family room and maybe a couple of live herbs in the kitchen and you're all set. You don't need to have a green thumb, but if you can keep two or three potted plants alive for three or four weeks, you're in good shape. If you absolutely love the atrium that you've turned your living area into over the past 7 years, great. You can re-open it at your new home. More than a few potted plants can make a home damp and musty on the inside. We simply want two or three pops of color and freshness to brighten up the kitchen and family room.
11) Give each room a title:
"Here's the master bedroom, here's the den, and here's the game room" sounds better than "Here's the room where we keep all of our crap!" If you've got that "extra" room full of "extra" stuff, you can guess where it should go. That's right...pack it up! Better yet, pack up 90% of it, and keep 10%. The sewing machine and two dressers is now "our Craft Room". Look behind the clothes hanging in that room. You might find a treadmill or and exercise bike. Throw down a cheap Yoga mat and you've got an "Exercise Room". You get the point. Each room gets a title.
As I mentioned at the top of the post, we'll never know which of these points are the most important until it's too late. So take the time, proactively, to show you house at it's very best.
Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation. If you're local , just remember Andy@LoisLauer.Com I'm always here to help.
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Until next time.
