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FAQ for selling your home

Alice Dahglren offers tips to home sellers to make thier home more appealing to prospective buyers, sell more quickly and bring a higher but fair price. Here are questions she has often been asked and her repsonse.

General questions & answers for home sellers

Have your plumbing, heating, cooling and roof inspected before you and your agent determine listing price. Their condition will undoubtedly become an issue when you receive an offer on your home. You may prefer to have your entire house checked -- including the structure and drainage.

Also, a fresh coat of paint on the front door is a wonderful welcome mat when a would-be buyer comes calling! Remember, if you have a fireplace, make it look great. Did you know that you can use oven cleaner to wipe away years of build up soot from the brick or stone surrounding your fireplace? It's an easy and inexpensive solution to making your fireplace perfect.

Q: I want to sell my home quickly. What is the most common obstacle a home buyer faces in completing the purchase?

Inspections. After the buyer's offer is accepted by the seller, the buyer has 15 days in which to complete an inspection (using a licensed professional) for possible defects. If found defective, void or amend the offer made on the property. It is your opportunity to complete repair negotiations with the seller.

If the buyer's inspection of the property reveals a major repair that the seller was not aware of, it may be in everyone's interest to obtain a second opinion. Existing properties generally have some defects in them which can be considered "normal wear and tear." 

Remember, you must list your price at a fair and marketable value. It is advisable to discuss inspections in detail with your Realtor before you undertake any corrective actions.

Q: How can we get "top dollar" for our home?

Price it right initially! Remember buyers are shopping by comparison.

Overpricing tends to dampen the attitudes of salespersons, making them less likely to show your home.

Overpricing lengthens marketing time and invariably results in a lower selling price than would have otherwise been obtained.

Q: How do we know our pricing is correct?

Many factors enter into the market price of a home.

The amount of listing and selling experience your Realtor has in your neighborhood will be important in helping you judge the market. Evaluate the Realtor's dedication to advanced study and certification, overall knowledge of real estate and successful years in the business.

Statistics are available and your Realtor should offer them to you.

Pricing decisions start with facts shown in a properly researched study of recent sales of similar properties in your neighborhood (similar location, condition, square footage, etc.). Supply and demand, seasonal aspects, the mortgage market, economic conditions, political actions and location, location, location also influence the value.

Q: I need to spruce up my home before I sell it. What do you suggest as general "rules-of -thumb" to keep in mind when considering paint types?

Here are some general tips to guide you:
          Paint will look darker on textured surface because of inherent shadows.
          Lighter colors reflect more light so they show flaws in the prep work.
          Lighter colors reflect more heat so they last longer.
          Enhance the effect of shadow by using light colors on projected elements and dark colors on inset panels.
          Glossier paints last longer because they are harder and reflect a bit more light.
          Flat paints hide flaws in the prep work but they do hold more dirt.
          A high-contrast color scheme holds the eye at each detail, making the house appear smaller.
          A low-contrast color scheme makes the house look bigger.

Q: I am considering remodeling my kitchen before I sell my home. Is is worth it?

Investment aspects of your decision are important.

A recent national survey indicates a minor kitchen remodel is yielding 101% payback at resale on an average investment of $6,500 using a professional contractor. Such a remodel is defined as refinishing the cabinets, changing the oven and cook top, installing one of the new laminate countertops, new hardware, adding resilient flooring and painting the room.

Q: What about capital gains tax when I sell my home?

Now you can sell your home as often as every 2 years and exclude profits from federal income tax capital gains. Under the old tax law, after age 55, a once-in-a-lifetime exclusion from taxation of up to $125,000 was allowed for the sale of a primary residence in which you lived 3 or more of 5 years preceding the sale.

Under the new 1997 law, there is no age requirement. When you sell your primary residence you can keep the capital gains - up to $500,000 for married couples filing jointly and up to $250,000 for single taxpayers.

To be eligible, the residence must be owned and occupied as the taxpayer's primary residence for at least 2 of the last 5 years preceding the sale. The exclusion is allowed each time a primary residence meets eligibility (not more than once every 2 years).

Q: Can you give me any information about "typical return on home projects" investments?

Here are some ballpark figures:
          Minor kitchen remodel - 101%
          Major kitchen remodel - 93%
          Bath addition - 92%
          Family room addition - 86%
          Bath remodel - 85%
          Converting attic to bedroom - 84%
          Outdoor deck - 77%
          Sun space addition - 71%
          Window replacement - 71%
          Siding - 67%

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