Home Decor | Housing | Real Estate

There is something to be said about a neat and tidy house when you are sorting through house after house looking for the perfect home for you and your family. This is something that should be kept in mind when selling either a personal home or an investment property. There are a few other things you should keep in mind when it comes to selling real estate. One of those things is that staging sells homes.

Seriously, there is something cold about an empty house. It could be painted impeccably and meet every possible standard a family has and yet feel cold and anything but homey when walking through the home for a real estate tour or inspection. This can be easily overcome by contacting a local furniture rental store and picking out furniture that will match at least the primary rooms of the home in order to make the home appear leaved in and homelike.

The primary rooms that you will want to appear ‘lived in’ are the living room, dining room, master bedroom, and all bathrooms. These are the rooms that essentially sell homes and it is important to make them appear neat, orderly, and well cared for. If you have the funds for every room in the home then by all means do so. It is a huge selling point, particularly for those who are trying to sell homes quickly. If the home doesn’t sell after the first two weeks or month (you decide the time limit) then you may want to remove the ‘staging’ furniture in order to eliminate the expense. I would strongly encourage you to keep this furniture as long as the home is being shown fairly regularly though.

You will want to do so much more than simply putting furniture in the property you are trying to sell. You want to create an atmosphere or warmth and comfort. This means you want to have prints on the walls, mirrors, plants, and pillows. You do not have to purchase items particularly for this process. You can use things from your own home in order to establish this atmosphere of homelike comfort. Be sure not to use sentimental favorites or very valuable pieces, as not all people who will view the property being sold are honest. It’s a sad reality but something to consider all the same.

Other things that may help an empty home sell are scents. There is nothing quite like the smell of cookies in the oven or flowers in bloom to make a home feel ‘homey’. These scents can be easily accomplished with well placed scented candles, potpourri warmers, dry potpourri, fresh-cut flowers, and electric room air fresheners. There are few things that will turn off potential buyers more quickly than an overpowering fragrance however so keep this in mind when selecting the method of fragrance. Having some fragrance in the home also eliminates the problem of an empty house taking on the ‘empty house’ scent that so many do over time. In other words, this is yet another part of the staging process that works for many trying to sell homes.

The short answer to the question of whether or not staging sells real estate is “yes”. Staging a home can absolutely lead to a higher offer and a quicker sell, even in today’s sluggish market.

Tip :About that money…

Ask your lawyer about asking for a down payment from the buyer. Some contracts require it to protect the seller: This down payment will usually make the buyer live up to his commitment to buy the property within a reasonable amount of time.

This down payment is called “earnest money” by some people. It morally obliges the buyer to finalize a mortgage with his bank, to have the property inspected within a reasonable period and to be prepared to settle by a certain date.

This down payment is not refunded back to the buyer should the sale not take place. Down payments may range from $1,000 to as much as 10% of the purchase price and is kept in escrow by your settlement agent.

Tip :Crossing the t’s and dotting the i’s…

As soon as all paperwork is final and parties are ready to sign the contract, the settlement (also called closing in some parts of Canada) takes place in either of the following places: the settlement agent’s office, bank, insurance office, or anywhere where you and the buyer and your respective agents agree to meet and sign papers.

This is the day you will probably get the biggest cash windfall in your life, and when someone else takes ownership of your house.

You can start breathing normally again when that check lands on your hands, and you and your personal effects are physically out of your house!

Tip :What, you’ve changed your mind?

Expect last minute surprises. A deal can be called off because:

• The buyer could not get financing and has no money of his own,
• Something went wrong with the title search or an insurance detail was not dealt with,
• Someone suddenly is afraid and wants to back out, or
• Some personal emergencies – like a sudden death in the family or terminal illness – are forcing the parties not to go through with the deal.

Whatever happens, just make sure you’re not walking up the path towards financial ruin.

Tip :You’re willing to pay more for my house?

When you put an ad for your house, and the price looks reasonable to the pool of buyers that are out there, you’ll get end buyers.

End buyers are buyers who are looking to buy a house to live in.

You’ll also get professional buyers – they include real estate brokers looking for homes to buy, builders specializing in remodeling and reselling homes or developers who want to buy the property because of the land.

Don’t be afraid of the professional buyers, because they know the true value of your house. They’ll push the bidding price higher because they know what they’re doing, and by pushing up the price, they weed off the end buyers who eventually drop out because the price is beyond their budget.

If a professional buyer offers you a price for your house that will make you happy, then by all means, go with the professional buyer.

Tip :Weeding out the curious.

If after you place your ad, you get 100 calls, don’t let that make you comfortable thinking that your house is going to be sold immediately.

The truth is, of those 100 calls, less than half are serious buyers. Or half of them want your home but don’t have the means to buy it.
Of that bunch, there is only 1 truly qualified buyer, and that qualified buyer is the one who can deliver the cash when it’s time to deliver it. The other 99 are just “probably” buyers.

Tip :Can we talk about your price?

You can be 99% sure that buyers will negotiate to bring the price down; this is why houses are sold and bought as a result of negotiations, which could take days, if you’re lucky, or longer, if you meet buyers who really want your house but don’t want to pay the price you’re asking for.

It’s curious what kind of arguments buyers will come up with to convince you to lower your price. “But your backyard needs a lot of tending”; “The kitchen tiles are not in good shape and we’d have to replace them ourselves”; or “But your house is near a cemetery (or a prison or a quarry), who’d want to buy your house?”

Don’t let buyers run you and your house down. If you want to unburden yourself quickly of your property because you’ve got an important trip scheduled or you need to make a counteroffer on another property, then by all means lower your price.

However, if you’re convinced that your property is worth more (based on the offers you’ve received so far), then be firm with your price.

Buyers will always take advantage of those situations where you show a little hesitation about the price. Tell them your price is final and that you’re not prepared to negotiate.

Tip :It doesn’t hurt to be honest.

When negotiations begin, remember that honesty is still the best policy. There is this great temptation to get greedy and you bid against your buyers. Don’t. You may end up still owning your house months later because the bidders couldn’t keep up with the price.

The more important consideration for you is not how much extra thousands of dollars you can get above your original price, but if you’re a decent person, your # 1 concern should be who, among these buyers, will pay me for what I asked for and take good care of my house the way I did?

Tip :My home is your home now

Once you’ve found a buyer for your home and all the terms have been negotiated to both parties’ satisfaction, the next step is to transfer ownership of the house. Since you’re on your own, you’ll need to initiate the paper work yourself.

This is where the government can help you. The US Department of Housing and Urban Development has published a book entitled “Settlement Costs”. It is free and contains valuable guidelines on settlement matters (the booklet title may have changed, check with your city government).

From this publication, you’ll be able to decide who to consult with in terms of the different steps of the closing process. You will need a lawyer (or notary), or an escrow company or your bank. Settlement procedures vary from state to state and from country to country.

Tip :How quickly will he settle this matter for me?

After you have chosen your settlement agent, get the name of the settlement agent of your buyer and provide this to your own agent.

The way it works is the two agents will then work together to contact the banks, arrange for title searches and title insurance, draw up the sale contract and calculate any other fees that have to be paid.

Settlement agents don’t work with the same speed as other agents. If you feel that the process has stalled and it’s not your agent’s fault, then your buyer’s agent may be causing the delays. If delays become major concerns, you may want to seriously consider the next buyer on your list, but inform the first buyer that you can’t afford to wait any longer.

Tip :This covers just about everything

When settlement details are finalized, a contract is drawn up. The contract must include the following details:

• Amount/location of property
• Timing of the sale
• Transfer of funds
• Items included in, and excluded from, the sale
• Conveyance of title
• Apportionment of fees to be paid
• Insurance matters

And other such things that are typically part of a sale contract for private property. If there are any clauses that you don’t understand, have your lawyer explain them to you. Ask questions until you’re satisfied that everything is crystal clear.

Tip :Can we change this a little bit?

Be prepared for requests from the buyer to modify parts of the contract. Don’t verbally agree to anything until your lawyer confirms that the requested changes are in order.

This part of the exercise may take longer than you expected. Lawyers are shrewd creatures and will make every attempt to get the most for their clients. They’re only doing their job, and they’re doing what they’re best at – arguing and haggling.

It is up to your lawyer to defend your interests so hopefully, the lawyer you hired is as sharp and shrewd as your buyer’s lawyer.

When contract discussions are going on, ask your lawyer’s opinion as to the advantages and disadvantages of agreeing or disagreeing with a particular clause. Discuss potential consequences and how changing a clause could jeopardize your rights as a seller.

And if you do agree to change a clause, ensure that all changes are put in writing either within the body of the contract or as an addendum.