HOME INSPECTION

A home inspection is a thorough visual examination of the home and property. Many mortgage companies insist on a home inspection report before agreeing to a mortgage, so a pre-sale inspection enables you to address problems before you even put the house on the market. It also removes any questions about the condition of your home for you and a potential homebuyer, improving the speed, price, and likelihood of a sale.

The inspection process usually takes two to three hours, during which time the house is examined from the ground up. It includes observation and, when appropriate, operation of the plumbing, heating, air conditioning, electrical, and appliance systems, as well as structural components, such as the roof, basement, exterior and interior walls, chimney, doors, and windows. 

Some home sellers elect not to correct every defect found in the inspection report. Instead, they acknowledge the defects to buyers and explain that the asking price has been adjusted to reflect the estimated cost of repairs. Such candor tends to shorten negotiation time because buyers have fewer objections.

In addition to facilitating the sale of a home, an inspection helps the homeowner comply with full-disclosure real estate laws, governed by state laws. By focusing on the condition of your property, you are less likely to overlook a defect or material fact for which you could later be held liable.

A thorough home inspection covers more than 1,000 items, everything from the foundation to roof and takes two to three hours depending on the size of the property. The report should reflect the condition of about 400 items. 

TIP: Home inspections are for buyers: appraisals are for lenders. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. 

Seller Financing

If a seller helps to finance a real estate transaction, it is called seller financing. Usually, sellers do this when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price.

Seller financing differs from a traditional loan because the seller does not give the buyer cash to complete the purchase, as does a lender. Instead, it involves extending a credit against the purchase price of the home.

The necessary paperwork is prepared by the title or escrow company after the terms are worked out between the buyer and seller. If you are a seller considering such an arrangement, it is critical to thoroughly evaluate the credit-worthiness of the buyer. 

It is important to consult with legal counsel and your accountant regarding the potential consequences of the type of arrangement. You can also contact the Internal Revenue Service for a copy of its Publication 537, "Installment Sales." Order by calling (800) TAX-FORM or visit www.irs.gov/formspubs. 

Seller financing offers tax breaks for sellers and alternative financing for buyers who can't qualify for conventional loans. If you are a seller, the risks you face are the same as those facing any lender: Is the borrower a good credit risk? Will the property hold enough value over time to allow for the repayment of all loans made against it?

You should run a full credit check on the borrower, require hazard insurance on the property and include a due-on-sale clause. There are also financing, disclosure and repayment-term requirements that need to be met. Again, it is wise to consult an attorney when considering this type of transaction

TIP: The interest rate of an owner-carried loan is negotiable, but is influenced by current Treasury Bill and Certificate of Deposit Rates. 

Negotiating the Real Estate Deal

Successful negotiating encompasses the acquired ability to use certain skills and techniques to bring about coveted win-win results. Your CENTURY 21 Agent can help you stay focused, objective, and not let your emotions rule. 

1. Start with a thoroughly researched, fair price.
2. Respect the other side's priorities. For example, a buyer with an urgent move-in date might be willing to pay a higher portion of the transaction costs or forgo some major repairs. Or, they may prefer to push out the closing date, in order to be more confident that there will be no unanticipated additional expenses.
3. In any case, be prepared to compromise: "win-win" doesn't mean both the buyer and the seller will get everything they want. It means both sides will win some and give some. 

TIP: Become familiar with a typical real estate purchase and sale contract in advance of any negotiation

Selling Advice: The Sale

Once you negotiate and settle on a price, the buyer arranges for financing and a home inspection. This section will help you with these important steps. 

In the next few blogs, you can learn about:

1. Negotiating the deal
   • Successful real estate negotiation is more than a matter of luck, innate talent or charm. The following tips will help you to make a successful deal. 
2. Seller financing 
   • Seller or owner financing is a technique in which the seller of a home takes on the role of a lender in a home sale. Find out more. 
3. Home Inspection 
   • A home inspection is a professional, objective visual examination of the physical structure and systems of a house, from the roof to the foundation. The following section provides information and tips about this critical pre-sale step.

Showing Your Home

You want potential buyers to feel at home from the minute they walk up the driveway. Give them a canvas to fill. It's showtime!

Start with a good cleaning, eliminating clutter, put away the knickknacks and add fresh coats of neutral colored paint to brighten rooms. Oh, and tidy up the yard. Your CENTURY 21 Real Estate Agent can give you all sorts of tips to help boost your home's curb appeal and impress potential buyers once they're inside. Here are a few basic tips:

• If the weather permits, open the windows (if there is too much noise outside, close them). If it's cold enough to wear a sweater to stay warm, turn on the heat. You want the temperature inside to be comfortable and to give the buyer more of a reason to linger, especially on hot or cold days!
• Light a fire in the fireplace, have chocolate chip cookies baking in the oven or use lightly scented aromatherapy - such as lavender - to set the scene for a tranquil home. 
• Open all window coverings to let in light. If a particular window overlooks undesirable scenery or obstructed views, keep the blinds partially closed.
• Turn on every light in the house, including appliance lights and closet lights. Brighten dark rooms with few windows by placing spotlights on the floor behind furniture.
• Play soft background music.

Move your cars to an alternate location, and allow your real estate agent to conduct the tour: potential buyers usually feel more comfortable - and less pressured - when the owners are not present

TIP: One way to make a home more attractive is to purchase a Home Protection Plan. This insurance protects you, the seller, from paying repair or replacement cost of major items during the listing period. It also protects the buyer during their first year of homeownership. 

SETTING THE PRICE

Setting the right price for your home is the most important decision you will make. Learn how to study market trends and set the optimal price for your home. 

Setting the Right Price for Your Home

A key part of your marketing plan is setting the list price. Quite simply, if a home is priced too low, you miss out on potential profit. If a home is priced too high, qualified buyers will look elsewhere. To determine the best asking price, review the prices of recently sold, comparable homes in the area; evaluate the competition, and study marketplace trends. CENTURY 21 Sales Professionals have ready access to this information and can provide the big picture to help you determine the right asking price. 

It is also helpful to discuss with your agent other terms and conditions that can be included in the sale of the home to make it more attractive to potential buyers. For example, an owner can offer to pay points or complete a major repair - such as a new roof - to make the deal more appealing to a qualified buyer. A home warranty such as the CENTURY 21 Home Protection Plan is another useful marketing tool, providing protection if an appliance or other covered item fails after closing. Home warranties are a relatively inexpensive way for a seller to add value to a property.

Other factors to consider:

• Real estate is local. Your CENTURY 21 Agent can explain current market factors in your community, including what's selling, what isn't selling, and why. This information is critical to setting an optimal price and terms. 
• If your house is located in a desirable area you will be able to get a higher price than you can for the same house in a less desirable area. 
• If a house has amenities that are currently popular in the marketplace, it will bring a higher price. Your CENTURY 21 Agent can help identify top trends.
• A house that has been better maintained and "shows" better will always sell for more than one that has had deferred (neglected) maintenance and needs work.
• Buyers expect everything to work. It's an important trust factor, and worth the time and expense to make basic repairs. 
• Markets differ by location and time. When interest rates are low and the local job base is growing, it's great to be a seller. But when times are slack and mortgage rates are rising, homes also sell. The trick is to be realistic, to get as much as market conditions will allow. 

TIP: A formal written appraisal can be useful if your property is unique, or there hasn't been much activity in your area recently. It's also helpful when co-owners disagree about price, or there is any other circumstance that makes it difficult to put a market value on your home. 

ADDING VALUE TO YOUR HOME

Following these 10 tips will help add value to your home and increase your chances of a sale.

The Top 10 Tips to Add Value to Your Home

1. Clean, organize, and neutralize your space: Unclutter your house to make it look bigger and cleaner. Buyers need to be able to envision their own belongings in the home, so avoid using bright colors and too many personal effects
2. Keep your lawn green: Get your lawn in shape. A patchy lawn takes away from the home's overall appearance. Your local hardware store has supplies to re-seed those unhealthy areas.
3. Add insulation to save energy: The most inexpensive way to increase your home's energy is to add insulation which can reduce heating and cooling costs by more than 25%.
4. Update kitchen appliances: The kitchen is often the room that buyers gravitate towards first, and an updated kitchen can sell your home. You don't have to remodel your kitchen to give it a new look. Updating your appliances to the current standard and replacing cabinet doors and hardware can make a big impact at a relatively low cost. 
5. Update bathroom fixtures: A little change can go a long way when it comes to the look of your bathroom. Updating simple fixtures such as your sink and faucet can give any outdated bathroom style.
6. Build a fence: If you're trying to sell a house, the appearance of a fence adds value to the home overall. Buyers with children or pets will appreciate the privacy and security of an enclosed backyard. 
7. Repair the gutter: Ensuring that your gutter is clean is crucial in protecting your home against water damage.
8. Light up the outside: An easy and inexpensive way to increase your home's outdoor space is to add lighting. It makes it more appealing and safer.
9. Store and organize: Ample storage space is a plus, especially when it comes to garages and closets. Efficient closet structures can help keep your clothes organized and can save space.
10. Polish the basement: Rather than adding an additional room, it is more cost-efficient to remodel your basement. This adds value and usable space
11. Consider a home warranty. A home warranty, such as CENTURY 21 Home Protection Plan, issued by American Home Shield, can help distinguish your listing from others on the market and boost buyer confidence. 

CREATING A PLAN

We can help you build a marketing plan for your home that will help to improve your chances of selling it at the best price possible, in the shortest amount of time. 

Create a Marketing Plan

Much of an agent's work is quiet, behind the scenes - and important. Promoting your home involves several outreach efforts, including scheduling, marketing and hosting open house, following up with open house visitors, having conversations with ad respondents, and posting photos and virtual tours on the web. Being your guide and confidant is part of the process as well.

Selling can entail a variety of marketing strategies, and your agent will develop a plan especially for your home, which will help set it apart in your local marketplace and attract buyers. Once listed, it's likely that the home will be quickly entered into the local Multiple Listing Service (MLS), displayed on century21.com and distributed to over 500 national and local real estate websites, where most buyers begin their search for a new home. 

TIP: A marketing plan will help sell a home at the best price possible in the shortest amount of time. Find out how a CENTURY 21 Mountain Vistas Agent can help. 

Selling Advice: Let's Get Started

Real estate marketing involves so much more than a sign in the yard or a web posting. Successful brokers and agents use a variety of methods to attract and qualify prospects, including the latest Internet and communication advances. 

In the next few blogs, you can learn more about:

1. Creating a Plan
2. Adding Value to your Home
3. Setting the Price
4. Showing Your Home

Be sure to look out for upcoming blogs to get some great tips on how to sell your home quicker and for more money!

SELLING ADVICE

Your home is more than an architectural structure. Often, it's an extension of who you are - your personality, style, and values. That's why selling it can be an emotional experience. But it can also be exciting and rewarding. This section provides some simple home selling tips that can help lead you to a successful, timely sale. 

Once you've made up your mind to sell your home, you need to do your "homework" - and century21.com is a great place to start! Getting a signed contract is a great accomplishment, but that's only half the journey. The typical home sale today involves more than 20 steps after the initial contract is accepted to complete the transaction. 

A real estate professional can provide the experience and local knowledge to guide you through the entire process, and selling your home within the ideal time frame and at the most effective price point. As the representative of your best interests, your CENTURy 21 Agent has state-of-the-art marketing resources to showcase your home's best assets and help you determine what improvements will make the biggest difference. 

Much of what needs to be done before the closing is the responsibility of appraisers, loan processors, attorneys, and inspectors. Your CENTURY 21 Agent's role also includes coordinating those responsibilities, helping to ensure that others do their jobs promptly and correctly. 

Many steps between contract ratification and closing involve the cooperation of both buyer and seller, and attentive real estate professionals on both sides of the transaction will troubleshoot and keep everyone on track.