Seller's Handbook

Tips to Help Sell Your Home

People usually decide within two minutes whether they like your home. The first impression is often the lasting impression. And they start forming their opinion before they even walk in the front door.

So it's smart to ask yourself if your home is as presentable as it can be for a faster sale at the best price.

Here are time-tested tips suggested by the top real estate agents to make your home more presentable. A good rule to follow is to improve cosmetic aspects of your home, which will improve your chances of selling. Avoid making major changes unless they will increase the value of your home more than the cost of the improvement.

Outside

1. Invest in landscaping where it can be seen at first sight. A well-manicured lawn, neatly clipped shrubbery and cleanly swept walks create a good first impression.

2. Cut back overgrown shrubbery that looks scraggly or keeps light out of the house.

3. Paint your house if necessary. This can probably do more for sales appeal than any other factor. If you decide against painting, at least consider touching up front shutters and window frames.

4. Inspect the roof and gutters. Any missing shingles to replace? Gutters and down spouts in place? Need paint or repair?

5. Consider putting flowers outside the front door.

6. Repaint the front door.

Living Areas

7. The kitchen is the most important room in the house. Make it bright and attractive. If dull, paint cabinets and put up perky new curtains.

8. Clean the ventilating hood in the kitchen.

9. If the kitchen floor is worn, put down new flooring. Replace any loose tiles.

10. Remove any appliances that you keep on your counters. Clean counters make the room look larger.

11. Repair dripping faucets.

12. Use special cleaning products to remove stains from toilets, bathtubs, sinks and showers.

13. If sink and bathtub drain too slowly, unclog them.

14. Have all plaster in top shape. Cracks (or nail-pops, visible seams in dry walls) are easy to fix.

15. Check ceilings for leak stains. Fix the cause of the damage, repair the ceiling and paint.

16. Stick to conventional white paint outside and easy-to-work-with pastels inside.

17. If you have a fireplace, clean it out and lay some logs in it to make it look inviting.

18. Wash windows.

19. Replace broken glass.

20. Mend torn screens.

21. Check to see that all windows will open and close.

22. Replace burned-out light bulbs. Use brighter light bulbs.

23. Make sure every light switch works.

24. Make the floors shine; clean and polish them; and nail down any cracking boards or stair treads.

25. Straighten up the closets—get rid of excess items. Use air freshener to eliminate musty odors. Lubricate any sticky or squeaking doors.

26. Clean out attic, basement and garage and dispose of everything you are not going to move, and package everything you won't need until you're settled in your new home.

When Your House is Being Shown

27. Keep room draperies and shades open to let in light. This also makes rooms appear larger.

28. Have your home well lighted during showing.

29. Neatness makes a room look bigger. Avoid clutter.

30. If possible, leave your furniture and rugs in the house for showing it.

31. Avoid having dirty dishes in the sink or on counters.

32. Keep any toys in the children's rooms. Bikes, wagons and skateboards should be made as inconspicuous as possible.

33. Keep radio, stereo, TV off or turned way down.

34. Take your family away if your broker is holding an open house.

35. Refer direct inquiries you receive about seeing your house to your Realtor® to take advantage of his professional skills in selling your home.

36. Don't mention furniture or furnishings you wish to dispose of unless asked. Such discussion can kill the sale.

37. Take pets outdoors when your house is being shown.

38. Let the real estate agent show your house, and don't tag along. Answer questions candidly when asked, but don't offer answers to unasked questions.

Home Improvements

Home remodeling projects can help sell a home, though some provide higher paybacks for homeowners than others. Project costs and resale amounts vary by area.

Remodeling Project Avg. Cost Avg. Resale % $ Recoup

Master Suite $73,370 $60,460 82.4%

Minor Kitchen Remodeling $14,913 $14,691 98.5%

Major Kitchen Remodeling $43,862 $39,920 91.0%

Bathroom Addition $22,977 $19,850 86.4%

Attic Bedroom with Bathroom $39,188 $36,649 93.5%

Family Room Addition $54,773 $45,458 83.0%

Sunroom Addition $31,736 $23,643 74.5%

Deck Addition $11,294 $10,196 90.3%

Home Office Addition $13,143 $9,569 72.8%

Second Story Addition $80,133 $75,831 94.6%

Siding Replacement $10,393 $10,771 103.6%

Window Replacement $16,096 $14,259 88.6%

Home Selling Process

1. Prepare home for viewing by prospective buyer

2. Market property

3. Review contract presented

4. Escrow opened and title report ordered

5. Home inspections completed

6. Inspection reports submitted to Escrow Officer

7. Appraisal

8. Loan Payoff Requested

9. Buyer's loan documents drawn by lender (if applicable)

10. Documents executed at Financial Title

11. Funding by lender (if applicable)

12. Final closing documentation and balance of funds receipted

13. Recording and distribution of funds and documents

14. Congratulations on the sale of your home!

Inspection Process

THE INSPECTION PROCESS

During the contingency period, your Realtor will order physical inspections as specified in your purchase agreement. Legislation mandates, (under civil code 1102), that the seller has the responsibility to reveal the true condition of the property on a disclosure statement. This may help you determine what kinds of property inspections you feel are desired or necessary. Your Realtor will help you arrange for these.

STRUCTURAL PEST CONTROL PROCESS

A licensed inspector will examine the property for any active infestation by wood destroying organisms. Most termite reports classify conditions as Section I or Section II.

SECTION I CONDITIONS

Section I conditions are those currently causing damage to the property. These conditions generally need to be corrected before a lender will make a loan on a home. The seller generally pays for the inspection and any Section I repair work.

SECTION II CONDITIONS

Section II conditions are those not currently causing damage but which are likely to, if left unattended. Costs for repairs are generally negotiated.

GEOLOGICAL INSPECTION

A soils engineer will perform an inspection of the soil conditions and the stability of the ground beneath the structure, as well as research past geological activity in the area. Typically, the buyer pays for this inspection.

HOME INSPECTION

This inspection encompasses roof, plumbing, electrical, heating, appliances, water heater, furnace, exterior siding, and other visible features of the property. A detailed report will be written with recommendations, often times the recommendation is to consult a specialist (such as a structural engineer). The buyer usually pays the inspection fee.

WHO PAYS

Your Purchase Agreement will specify who is responsible for the costs of inspections and for making any needed corrections or repairs. The cost is negotiable between the parties and should be considered carefully. Your Realtor will advise you what is customary and prudent.

Who Pays What?

Click here to download the above table in high-resolution, printable PDF format

Estimated Your Proceeds

SALES PRICE

Estimated Balance 1st Loan

Interest

Prepayment Penalty

Estimated Balance 2nd Loan

Interest

Prepayment Penalty

Reconveyance Fees

Brokerage Fee

Assessments (if any)

Recording Fees

County Transfer Tax

City Fees/Inspections (if any)

VA/FHA Costs (if applicable)

Title & Escrow Fee

Termite Inspection/Repairs

Roof Inspection/Repairs

Pool Inspection/Repairs

Property Inspection/Repairs

Other Inspection/Repairs

Home Protection Plan (warranty)

Taxes

Homeowner's Association Dues (if any)

Drawing/Notary Fees

Buyer's Closing Cost Credits (if any)

Trans. Coord. Fee

Geo/Flood/Seismic Report

Regulatory Compliance

Miscellaneous

California 31/3% Withholding (if applicable)

TOTAL CHARGES

ESTIMATED TOTAL NET

Moving Expenses

WHEN YOU MEET THE IRS DEFINITION OF A QUALIFYING MOVE, THE FOLLOWING ITEMS MAY BE CONSIDERED TAX DEDUCTIBLE:

• The travel cost to look for a home in the area of a new job. Your home shopping expedition does not have to be successful for the cost to be deductible.

• The cost of having your furniture and other household items shipped, including the cost of packing, insurance and storage for up to 30 days.

• The cost of getting your family to the new hometown, including food and lodging expense on the trip.

• The cost of lodging and 80% of food expenses for up to 30 days in the new home town, if these temporary living expenses are necessary, due to the fact that you have not yet found your ideal home or it is not ready when you arrive.

• Certain costs associated with the sale of your old home and purchase of the new one. These expenses, including real estate commissions, legal fees, state transfer taxes and appraisal and title fees, could be used either to reduce the gain on the sale of the previous home or to boost the basis of the new one. However, it's usually beneficial to count them as moving expenses up to the allowable dollar limits, for this gives you an immediate tax benefit.

• Seek the advice of a tax attorney or CPA for the most up-to-date information.

Moving Checklist

BEFORE YOU LEAVE:

Address Change

Post Office: Give forwarding address

Charge Account, Credit Cards

Subscriptions: Notice requires several weeks

Friends and Relatives

Bank

Cancel any automatic payment or direct deposit arrangements

Transfer funds and arrange check cashing in new city

Arrange credit references

Insurance

Notify company of new location for coverage

Life, Health, Fire and Auto

Utility Companies

Gas, Electricity, Water, Telephone, Fuel, Garbage & Cable TV

Delivery Service

Laundry, Newspaper, changeover services

Children

Register in school.

Transfer school records.

Arrange for day care.

Medical, Dental, Prescription Histories

Ask Doctor and Dentist for referral; transfer needed prescriptions, eyeglasses, X-rays.

Obtain birth records, medical records, etc.

Pets

Consult a veterinarian about moving your pet.

Obtain all records.

Ask about regulations for licenses, vaccinations, tags, etc.

DON'T FORGET TO:

Empty freezer: plan use of foods.

Defrost freezer and clean refrigerator. Place charcoal inside to
dispel odors.

Have appliances serviced for moving.

Clean rugs or clothing before moving: have them moving wrapped.

Clean and/or repair furniture and curtains.

Plan for special care needs for your infants and pets.

Check with your moving counselor on insurance coverage, packing and unpacking labor, arrival day method and time of expected payment.

Assemble first day items – soap, toilet paper, pencils, paper, toiletries, bath towels, utility knife, scissors, trash bags, etc.

Obtain relocation package from Real Estate agent or
Chamber of Commerce in your new city.

Arrange for storage.

Find out about tax-deductible moving expenses.

Obtain all personal records from lawyers and accountants.

Assemble packaging materials.

Have car checked and serviced for the trip.

Pack a day or two worth of extra clothing in case of delay.

ON MOVING DAY:

Make a list of every item and box loaded onto the truck.

Carry enough cash or travelers checks to cover cost of moving services and expenses.

Carry jewelry and documents yourself; or use registered mail.

Carry an assortment of toys for the children (if needed).

Let a close friend or relative know route and schedule you will travel including overnight stops; use them as your message headquarters.

Double check closets, drawers, and shelves to be sure they
are empty.

Turn off all appliances and lock all doors and windows.

Leave all old keys needed by new owner with Realtor or neighbor.

Let the movers know where you can be reached

AT YOUR NEW ADDRESS:

Check off all boxes and items as they come off the truck.

Install new locks.

Check on service of gas, electricity, water, telephone, garbage and cable T.V.

Check pilot light on stove, hot water heater and furnace. Have appliance checked.

Ask mail carrier for mail he or she may be holding for you.

Apply for state driver's license (or just address change id needed).

Visit city officer and voter registration.

Register car within five (5) days after arrival in state or a penalty may be paid when getting new license plates.

Obtain inspection sticker and transfer motor club membership.

Arrange for medical services: doctor, dentist, veterinarian, etc.

Tax Calendar

Click here to download the Property Tax Calendar in high-resolution, printable PDF format.

Owner must own and occupy the property on January 1st to be eligible for application exemption.

Penalties for delinquency are 10% on the date of delinquency, plus $10.00 costs for delinquent 2nd installment. Thereafter, 1.5% per month of original tax amount until paid.

Property may be sold at public auction after 5 years delinquency.

1. Getting Your Home Ready To Sell

A Good First Impression Can Help Sell Your Home

You can assist your real estate agent or broker when you are showing your home to prospective buyers by remembering that first impressions are the most lasting and the most important to its sale.

Your major role as a seller will be to make your home as attractive as possible to potential buyers. The time, effort and limited financial investment involved can give you the competitive edge needed to sell your home when you want – at the price you want.

Your Home's Exterior Creates the Prospective Buyer's First Impression

Since the exterior of your home is the first thing a prospective buyer sees, a little time
and effort can make a big difference in the impression your home creates and pay big dividends when the sale is made.

Use this checklist to make sure your home's exterior looks its best:

Lawn is well cut and neatly trimmed around the walks and drive.

Flower garden is weeded.

Shrubs are trimmed and dead trees and branches eliminated.

All debris is disposed of and toys and lawn equipment are neatly stored.

Fences and gates are repaired and repainted, if necessary.

The roof, gutters and downspouts are in good repair.

Driveways and sidewalks are washed down and checked for cracking and crumbling.

Cracked windows and torn screens are replaced. Screens, windows and windowsills are washed. Doorknobs are polished.

Doorbell and front lights are in good working order.

If you would have planned to paint the house within the coming year, consider painting the house before showing it. A new paint job, well done, will normally enhance the sale value a good deal more than the cost of the paint.

If your home's exterior looks clean, orderly and in good repair, that's the first impression your house will convey.

Interior dirt and clutter can obscure your home's good points, so start with a full house cleaning from top to bottom. Store unused or unnecessary items in closets and storage areas or hold a garage sale. Eliminate clutter and your home will look more spacious – an important selling point.

Take an inspection tour of your home, observing it as a potential buyer would.

Use the following checklist to make sure it's ready to show:

Walls are clean and free of smudges, fingerprints and dents.

Woodwork and wallpaper are inspected for problem areas; wallpaper is cleaned and woodwork is waxed.

Badly worn furniture is temporarily stored in family's or neighbor's attic or basement.

Curtains and drapes are freshly laundered or cleaned.

Rugs and carpets are shampooed. Floors are waxed.

Loose doorknobs, sticking doors, windows and warped drawers are repaired.

Leaky faucets are fixed. Water discoloration in sink is eliminated.

Loose stair banisters are tightened and steps are free of objects.

Light fixtures are in good working order. Discolored or cracked switchplates are replaced.

Closets, shelves and drawers are organized to display spaciousness.

Clothing is hung neatly and shoes and other objects are neatly arranged.

Bathrooms are sparkling clean. Tub and shower caulking is repaired.

Bedrooms are neat. Bedspreads and curtains are attractive.

The kitchen is clean and tidy, including cupboards, stove and oven.

The basement, attic and garage are clean and well organized.

Mirrors, picture frames and glasses covering pictures are clean.

Mirrors are strategically placed to create an impression of added space in problem areas.

Lampshades are in good condition.

Electrical connections are plugged in.

Consider painting walls and replacing carpet if cleaning doesn't do the trick.

It is also important to keep lighting in mind when you show your home. Good lighting will make your home seem more cheery and spacious.

Over-improving Doesn't Pay

Don't plan major improvements on your home. Most home buyers want to make their own major changes. You are usually wiser to sell them the potential – at a price they can afford.

You can do a lot to help your real estate agent show your home. Showing your home is all important to its sale, and there are many ways you can help your real estate professional do his or her job successfully.

Here are some last-minute details that will maximize your home's selling potential.

The television and radio are turned off or low enough to allow the salesperson and buyer(s) to talk, free of disturbances.

Children and pets are sent outdoors to play or otherwise entertained to eliminate confusion and to keep the prospect's attention focused positively on your house.

Bad odors are eliminated. Air freshener is used before the potential buyer arrives, especially if you have pets or if the house has been closed up for some time.

The house has adequate lighting (during daytime drapes are open; at night plenty of lights are on, including the porch light).

Wood is stored next to the fireplace. In winter a fire is lit.

The kitchen sink is free of dishes.

Magazines and children's toys are in order.

Plants have been watered and look healthy.

Fresh flowers are arranged tastefully around the house.

What you can do while your house is being shown:

Be courteous, but don't force conversation with the potential buyer(s). Ask your real estate broker or agent if your presence is necessary.

Never apologize for the appearance of your home. Let your real estate broker or agent answer any objections.

Leave it to your real estate professional to emphasize the features of your home.

Make sure your agent or broker knows where you are so you may answer questions, but don't tag along.

Let your real estate professional discuss price, terms, possession and other factors with the potential buyer(s).

Remember, your real estate broker or agent has the experience and training necessary to bring negotiations to a successful conclusion. And, if you've followed the guidelines provided, you'll know you've already done your part by making sure your home creates a good first impression.

About Us

Putting People and Properties Together... Real Estate Masters attributes its success over the past 30 years to having the distinct privilege of matching Buyers with properties and Sellers with successful closings. The office is rich in skilled, professional, and seasoned Agents. All of whom have made Real Estate Masters a leader in the Elk Grove and Sacramento Real Estate communities. One of Real Estate Masters' top producers, Diane Johnson, had the unique opportunity to purchase the company in January of 2008. She is following in the successful footsteps of its previous owner and has enjoyed the ability to grow and take the company to the next level. "It's a pleasure to work with such knowledgeable and compassionate Agents as well as such an experienced staff. We have also had the honor of having several new Agents join our team" raves Diane.

Real Estate Masters has a multitude of Agents with backgrounds from the building industry, title and escrow, property management, and commercial Real Estate industries. All of which brings a wealth of knowledge to this amazing group of Realtors. So whether you're looking for a small home in town or a large ranch home on property, you can feel confident knowing that Real Estate Masters has the ability to manage your transactions professionally and efficiently.