I am a licensed real estate professional. Here’s what you need to know before selling a home in order to get top dollar.
Build and Retain Value.
Keep your property up-to-date and in good condition. Investing $15K total in the bathroom and kitchen of your property can add $30K or more to the total value of the home. Update your home in some way every 3-5 years to retain its value. Spending $1000 per room on a professional paint job can add up to $10K to your property’s value. Remember to stay neutral with color. You could have a property in a prime location that hasn’t been updated in decades forcing you to settle for just half of the value. Occasionally, look on the market at properties for sale to see the new trends of housing style and development.
It pays to get professional maintenance done here and there on your property. Maintenance of your utilities are very important to buyers because they don’t want to inherit an expensive problem. This is in reference to the electricity, natural gas lines, and plumbing.
Know your market or hire a professional who knows.
Many “For Sale by Owners” go into selling head-first with overzealous hopes. You can’t expect to get a full-priced offer on a fixer-upper. Most owners believe that their property is worth more than it actually is due to sentimental value. Real Estate is STILL all about location. Things like crime, property taxes, and insurability can determine how quickly a property sells. Square footage size and features such as half bathrooms or finished basement all matter when you’re looking to flip.
Are you selling to a single family or to an investor? Selling to a family yields higher values but require more renovation to the property. Selling to a real estate investor may sell faster and require less renovation, but they will low ball you with offers. Misinformation and unrealistic expectations can lead to your property sitting on the market for a long period of time or even worse: Being Burnt. Read 5 Good Reasons Your House Won’t Sell.
Hire a Realtor to get the BEST price for the property.
Many homeowners try to shortcut or cut out the middle man. However, you could receive up to 50% less money by selling on your own. The peace of mind of knowing that every step of selling your home is being done professionally is priceless. You will need to deliver a clean title, the home will be inspected, the house may be appraised, there could be a mortgage, and there will be a settlement. It’s very dangerous dealing with potential buyers without a professional. That’s because within all real estate transactions, the sellers have the least rights. Also, as a seller you could be dealing with a licensed professional who knows more than you …and you won’t even have a clue.
Story time!
I have personally seen a “for sale by owner” contract written in such a way by a BUYER, that it was impossible for the owner NOT to sell the property. This seller had no right to change her mind or negotiate terms. In this case, the buyer was a real estate professional dealing directly with a homeowner (which is unethical if the fact is hidden). The professional bought the property in Philadelphia’s Brewery Town section for $65K. This is one of hottest and growing neighborhoods in Philly’s real estate market.
Terms included: for each day that the settlement was postponed for any reason… $1000 would be deducted from the purchase price. The contract also stated that the buyer could terminate/postpone at will for any or no reason. The seller was basically forced into the transaction. When I researched the property’s comparable market, similar properties were selling for over $300K (as-is) on the same block. This was a tough lesson. The seller paid the ultimate price: losing their property for a low price with NO way out.
“We buy Houses” advertisers ARE NOT licensed professionals. They are whole-sellers… looking to talk you down and profit by being the middle man of a transaction (see Flipping Philly: 3 Ways to flip Real Estate in Philadelphia for what Real Estate wholesale explanation) Hire a professional Realtor…it’s worth it!
Keep Your Title Clean
You have to take care of your property from start to finish. Keep it lien free. You can do this by paying all utility bills, mechanic bills, and performing property maintenance on time. If a utility bill such as gas becomes delinquent, and a new account is made under a new name, the old balance just doesn’t disappear. It becomes a lien on the title of your home which must be paid when you go to sell your property. A contractor can file a mechanic’s lien against the property’s title when they are not paid for the work completed on your property. Lastly, if the city ever issues a fine for uncut grass or a License & Inspection violation such as building without a permit…this WILL be paid at closing.
If you’re inheriting a property, do what you need to do to get the property deeded in YOUR name. A Tangled title can become a headache and almost impossible to resolve after the rightful property owners pass away. This is why it is important to have a recorded Will which names the person you want to take care of your Real Estate. That person is called the Administrator of the Estate. Without a will, the title is assumable to generations of kin, who could argue over title through probate. One of the first things homeowners need to do is create a will. If your family doesn’t take ownership, the city or local ordinance will do so gladly through a Sheriff Sale.
Remember.
These are just a few things to keep in mind when selling your property. Remember to consult a professional before signing any real estate related documents. Once signed, documents become legally binding and can be trouble. For a more comprehensive assessment of selling your home, contact a recommended Pennsylvania licensed Realtor.
Khaleef Smith
267-600-7670
