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Selling your home
5 Tips: What you should know that will make the process smoother.
June 18, 2005: 11:43 AM EDT
By Gerri Willis, CNN/Money contributing columnist
Increasing curb appeal
  
 Trim the hedges and cut the lawn 
 Repaint using light colors 
 De-clutter 
 Take the photos off the walls 

NEW YORK (CNN/Money) - Home sales hit a record high in April. And while it may be true that we're in a seller's market, you need still need to protect your greatest asset.

In today's 5 tips, we're going to give you the edge you'll need if you're looking to sell your home.

1. Increase curb appeal.

It's time to give your home a makeover from the outside in. Trim those hedges, cut the lawn, remove the undergrowth. "You have to create the warm and fuzzies," says Sid Davis, a real estate agent and author of "A Survival Guide to Selling Your Home."

And once you've got the outside looking good, it's time to reel in the booty. Make the entryway your focal point. If the front door is peeling, throw a fresh coat of paint on it. Use lighter colors in the rooms to make them look larger. De-clutter! Take the pictures off the wall (especially if you have a family photo wall.)

The point is to get potential buyers to think about where their own pictures are going and how they will redecorate. You want them emotionally attached to the home.

2. Know the market.

Find out how briskly real estate is selling over the past six months. For this, go to your local real estate agent to make sense of the numbers. Ask an agent what the average "Days on Market" is. This statistic shows if houses are selling at a clip or if houses appear to be selling more slowly than usual for the area.

It doesn't matter how much you want to get out of your home, it's about how much your home is worth. Your measurement stick is your very own neighborhood. So get the comps. Compare other properties to yours by its location, square footage, condition, age and the amount of bedrooms, bathrooms. Don't forget to highlight features like proximity to transportation and shopping. For help with this, consult a broker.

3. Put on the price tag.

Once you have a good idea of the market, it's time to get in the game. A realtor can help you set a price or you can go it alone.

If you have a home that is older than 1990, it's a good idea to get a home inspection, says Davis. An inspection costs between $300 and $400 and it's a good way to be prepared for potential problems...like a leaking basement.

Once you have settled on a price, stick with it and don't try to inflate your price. You don't want to eliminate potential bidders.

4. Sell it yourself.

There can be times where paying an agent a commission of six percent just isn't worth it. After all, you know your house and your neighborhood better than anyone. If houses are selling like hotcakes in your area, why not just put a sign out front and sell it yourself?

For starters make sure you use your cell phone as the contact number on the sign. This way people can call you when they're driving through a neighborhood and house-shopping.

Be available. Expect to answer calls in the evenings and on weekends especially. Put one-page brochures near the "For Sale" sign and don't forget to include interior pictures.

Make sure that if a buyer presents a bid that they're already approved for a loan. Ask to see a copy of the mortgage pre-approval letter.

5. Get an agent on the cheap.

If you don't have the time or the desire to sell your home yourself, then it's time to go agent shopping. To get the best deals, shop around. Take note of which realtors have the biggest presence in your community. This is a sign that the company is familiar with your area.

Then, interview three agents and ask for their last 6 to 10 home sale records. These records will show the amount of time their homes have been on the market and what the list and sale price was.

Typically, agents charge between four to six percent commission on the sale. But commission is by law negotiable, says Brad Inman, publisher of the real estate news service, Inman News. So negotiate away! (Especially when you have three agents who want your listing).

Inman also suggests scouting the web for agents. Check out realtor.com and realestate.com. Some Web sites like homegain.com even have agents that bid for your business.

But buyer beware! When scanning the Web, you need to make sure that the agent is licensed and find out their affiliation. Inman says you get what you pay for when it comes to finding an agent.

You should also try to avoid friends of family or your second cousin who just got his real estate license, says Davis. It's asking for trouble.

"This is your most important asset," he says. "Don't leave it to someone who may not have a great track record."


Gerri Willis is a personal finance editor for CNN Business News and the host for Open House. E-mail comments to 5tips@cnn.com.  Top of page

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