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Buyers/Sellers Tools
For example, let's assume you qualify for a $200,000 loan
at 7.0%. Each increase of 1/4 point (e.g.7.0% to 7.25%)
increases your payment by approximately $34 a month or $400
a year.
A change of one whole point (1%) increases your payment
by approximately $1,600 per year. Put another way, if the
maximum conventional loan you qualify for is $200,000 at
7.00%, the maximum sales price of the home you can buy is
around $250,000. If the interest rate rises to 8%, the maximum
loan you qualify for decreases to $181,000, and the maximum
sales price decreases to $226,000. This represents a net
decrease of almost $25,000 in purchasing power, which might
prevent you from purchasing the home you really want!
Getting Your House Ready to Sell
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| Introduction |
This is the hardest thing for most
people to do because they are emotionally attached
to everything in the house. After years of living
in the same home, clutter collects in such a way that
may not be evident to the homeowner. However, it does
affect the way buyers see the home, even if you do
not realize it. Clutter collects on shelves, counter
tops, drawers, closet's garages, attics, and basements.
Take a step back and pretend you are a buyer. Let
a friend help point out areas of clutter, as long
as you can accept their views without getting defensive.
Let your agent help you, too. |
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| UNCLUTTER
THE HOUSE |
| Kitchen Clutter |
The kitchen is a good
place to start removing clutter because it is an easy
place to start. First, get everything off the counters.
Everything! Even the toaster. Put the toaster in a
cabinet and take it out when you use it. Find a place
where you can store everything in cabinets and drawers.
Of course, you may notice that you do not have cabinet
space to put everything. Clean them out. The dishes,
pots and pans that rarely get used? Put then in a
box and put that box in storage too.
You see, homebuyers will open all your cabinets and
drawers, especially in the kitchen. They want to be
sure there is enough room for their "stuff."
If your kitchen cabinets, pantries, and drawers look
jammed full, it sends a negative message to the buyer
and does not promote an image of plentiful storage
space. The best way to do that is to have as much
"empty space" as possible.
For that reason, if you have a "junk drawer"
get rid of the junk. If you have a rarely used crock
pot, put it in storage. Do this with every cabinet
and drawer to create open space.
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| Closet Clutter |
| Closets are great for accumulating
clutter, though you may not think of it as clutter.
We are talking about extra clothes and shoes - things
you rarely wear but cannot bear to be without. Do without
those items for a couple of months by putting them in
a box, because these items can make your closets look
"crammed full." Sometimes there are shoeboxes
full of "stuff" or other accumulated personal
items too. |
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| Furniture Clutter |
| Many people have too much furniture in
certain rooms - not too much for your own personal living
needs - but too much to give the illusion of space that
a homebuyer would like to see. You may want to tour
some builders' models to see how they place furniture
in the model homes. Observe how they place furniture
in the models so you get some ideas on what to remove
and what to leave in your house. |
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| Storage Area Clutter |
| Basements, garages, attics, and sheds
accumulate not only clutter, but junk. These areas should
be as empty as possible so that buyers can imagine what
they would do with the space. Remove anything that is
not essential and take it to the storage area, or have
a garage sale. The next step in preparing your home
is checking for and fixing any interior or exterior
problems. |
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| De-Personalize
the Property |
The reason you want to "de-personalize"
your home is because you want buyers to view it as
their potential home. When a potential homebuyer sees
your family photos hanging on the wall, it puts your
own brand on the home and momentarily shatters their
illusions about owning the house. Therefore, put away
family photos, sports trophies, collectible items,
knick-knacks, and souvenirs. Put them in a box. Rent
a storage area for a few months and put the box in
the storage unit.
Do not put the box in the attic, basement, garage
or a closet. Part of preparing a house for sale is
to remove "clutter", and that is the next
step in preparing your house for sale. |
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| FIXING
UP THE INTERIOR |
| Interior |
| Plumbing and Fixtures |
All your sink fixtures should look
shiny and new. If this cannot be accomplished by cleaning,
buy new ones where needed. If you don't buy something
fancy, this can be accomplished inexpensively and
they are fairly easy to install. Make sure all the
hot and cold water knobs are easy to turn and that
the faucets do not leak. If they do, replace the washers,
it is not difficult at all.
Check to make sure you have good water pressure and
that there are no stains on any of the porcelain.
If you have a difficult stain to remove, one trick
is to hire a cleaning crew to go through and clean
your home on a one-time basis. They seem to be wonderful
at making stains go away. Ceilings, Walls and Painting
Check all the ceilings for water stains. Sometimes
old leaks leave stains, even after you have repaired
the leak. Of course, if you do have a leak you will
have to get it repaired.
You should do the same for walls, looking for not
only stains but also areas where dirt has accumulated
and you just may not have noticed. Plus you may have
an outdated color scheme.
Painting can be your best investment when selling
your home. It is very inexpensive operation and often
you can do it yourself. Do not choose colors based
on your own preferences, but based on what would appeal
to the widest possible number of buyers. You should
almost always choose an off-white color because white
helps your rooms appear bright and spacious. |
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| Carpet and Flooring |
Unless your carpet appears old and
worn, or it is definitely an outdated style or color,
you probably should do nothing more than hire a good
carpet cleaner. If you do choose to replace it, do
so with something inexpensive in a fairly neutral
color.
Repair or replace broken floor tiles, but to not
spend a lot of money on anything. Remember, you are
not fixing up the place for yourself, you want to
move. Your goal is simply to have as few negative
impressions upon those who may want to purchase your
property. |
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| Windows and Doors |
| Check all of your windows
to make sure they open and close easily. If not, a spray
of WD40 often helps. Make sure there are no cracked
or broken windowpanes. If there are, replace them before
you begin showing your home. Do the same things with
the doors - make sure they open and close properly,
without creaking. If they do, a shot of WD40 on the
hinges usually makes the creak go away. Be sure the
doorknobs turn easily, and that they are cleaned and
polished to look sharp. As buyers go from room to room,
someone opens each door and you want to do everything
necessary to create a positive impression. |
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| Odor Control |
For those who smoke, you might want
to minimize smoking indoors while trying to sell your
home. You could also purchase an ozone spray that
helps to remove odors without creating a masking odor.
Pets of all kinds create odors that you may have
become used to, but are immediately noticeable to
those with more sensitive senses. For those with cats,
be sure to empty kitty litter boxes daily. There are
also products that you can sprinkle in a layer below
the kitty liter that helps to control odor. For those
with dogs, keep the dog outdoors as much as possible.
You might also try sprinkling carpet freshener on
the carpet on a periodic basis. |
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| Costs of Repairs |
| Do not do anything expensive, such as
remodeling. If possible, use savings to pay for any
repairs and improvements - do not go charging up credit
cards of obtaining new loans. Remember that part of
selling a house is also preparing to buy your next home.
You do not want to do anything that will affect your
credit scores or hurt your ability to qualify for your
next mortgage |
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| FIXING
UP EXTERIOR |
Most real estate advice tells you
to work on the outside of the house first, but unless
there is a major project involved, we believe it is
best to do it last. There are two main reasons for
this. First, the first steps in preparing the interior
of the house are easier. They also help develop the
proper mind set required for selling - beginning to
think of your "home" as a marketable commodity.
Second, the exterior is the most important. A homebuyer's
first impression is based on his or her view of the
house from the real estate agent's car.
So take a walk across the street and take a good
look at your house. Look at nearby houses too, and
see how yours compares. |
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| Landscaping |
Is your landscaping at least average
for the neighborhood? If it is not, buy a few bushes
and plant them. Do not put in trees. Mature trees
are expensive and you will not get back your investment.
Also, immature trees do not really add much to the
appearance value of the home.
If you have an area for flowers, buy mature colorful
flowers and plant then. They add a splash of vibrancy
and color, creating a favorable first impression.
Do not buy bulbs or seeds and plant them. They will
not mature fast enough to create the desired effect
and you certainly don't want a patch of brown earth
for homebuyers to view.
Your lawn should be evenly cut, freshly edged, well
watered, and free of brown spots. If there are problems
with your lawn, you should probably take care of them
before working on the inside of your home. This is
because certain areas may need to be re-sod, and you
want to give it a chance to grow so that the re-sod
areas are not immediately apparent. Plus, you might
want to give fertilizer enough time to be effective.
Always rake up loose leaves and grass cuttings. |
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| House Exterior |
The big decision is whether to paint
or not to paint. When you look at your house from
across the street, does it look tired and faded? If
so, a paint job may be in order. It is often a very
good investment and really spruces up the appearance
of a house, adding dollars to offers from potential
homebuyers.
When choosing a color, it should not be something
garish and unusual, but a color that fits well in
your neighborhood. Of course, the color also depends
on the style of your house. For some reason, different
shades of yellow seem to illicit the best response
in homebuyers, whether it is in the trim or the basic
color of the house.
As for the roof, if you know your house has an old
leaky roof, replace it. If you do not replace a leaky
roof, you are going to have to disclose it and the
buyer will want a new roof anyway. Otherwise wait
and see what the home inspector says. Why spend money
unnecessarily? |
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| The Back Yard |
| The back yard should be tidy. If you
have a pool or spa, keep it freshly maintained and constantly
cleaned. For those that have dogs, be sure to constantly
keep the area clear of "debris." If you have
swing sets or anything elaborate for your kids, it probably
makes more sense to remove them than to leave then in
place. They take up room, and you want your back yard
to appear as spacious as possible, especially in newer
homes where the yards are not as large. |
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| The Front Door & Entryway |
The front door should be especially
sharp since it is the entryway into the house. Polish
the door fixture so it gleams. If the door needs refinishing
or repainting make sure to get that done.
If you have a cute little plaque or shingle with
your family name on it, remove it. Even if it is just
on the mailbox. You can always put it up again once
you move. Get a new plush door mat too. This is something
else you can take with you once you move.
Make sure the lock works easily and the key fits
properly. When a homebuyer comes to visit your home,
the agent may need to unlock the door. If there is
trouble working the lock while everyone else stands
around twiddling their thumbs, this sends a negative
first impression to prospective homebuyers. |
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