THE ROCKFORD HOME SOURCE

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HOW TO SELL YOUR HOME

An important part of my job as your Personal Realtor® is advising and guiding you through the home selling process to a successful closing. For most of you, selling a home is something you do only a few times in your lifetime. Whether you are attempting to do it by yourself, or you are using a professional Realtor®, the information here should help you get thru with less stress and more success. If I can be of help to you in buying or selling a home please don't hesitate to call at 815-381-6850 or email bill@aboutRockfordHomes.com

What's Your Motivation for Selling?

The Benefit of Keeping Good Records

Why hasn't my home sold yet?

How do you avoid the seller's nightmare

What's next after the offer is accepted.

Is my home worth less because it is located on a corner?

Should I spend a lot of money on improvements before putting my home up for sale

How do I make a retirement move?

Seller disclosures

More real estate buyer and seller reports

This weeks mortgage interest rates for the Rockford area

What's Your Motivation for Selling? Why is your reason for selling important? Answering the question "Why do I want to move?" before selling your home will help you to plan better and will help your real estate agent give you better advice. Perhaps you want a larger home. Or you have a new baby on the way and need more bedrooms, or have a growing family and want a bigger yard or rec room. Or maybe you are downsizing or want a ranch home rather than a 2-story. Some moves need to be done quicker than others. Be aware that real estate transactions can often take two months or more to complete. And that's after you've done all the work of preparing your current home for sale, and finding a new home you want to buy. You'll need to make your plans in advance and work with a real estate agent who will help expedite your home sale so you can move within your desired timeframe. If you are planning to sell a property that you have been renting, you'll need to add extra time to the selling process. Tenants who have signed leases cannot be forced to move out just because you decide to sell the property. It can also be difficult to paint, fix-up, or show the property around a tenant's schedule. The Benefit of Keeping Good Records Some records may be essential when you sell your home, not only for title and tax purposes, but for disclosure as well. Receipts for major home improvements will help when completing disclosure forms and will show what has been done to keep your home in good condition. Here's a list of important real estate documents to keep: 1. Property Deed – keep for as long as you own the property 2. Escrow or Closing Statements – keep for at least 3 years after the sale 3. Home Improvement Receipts – Helps to show what has been done to keep the home in good condition. May also be useful in potentially reducing capital gains exposure for income property or 2nd homes, so save your receipts and consult your accountant 4. Warranty Information – keep until the warranty expires. You will also want to keep instructions and maintenance information to pass on to the next owner 5. Loan Papers – keep until paid, or at least 3 years for mortgages that have tax deductible interest 6. Insurance Policies – keep until the policy expires 7. Credit Card Receipts and Statements – save receipts of major purchases such as appliances, furniture, antiques, art, etc. Keep an up-to-date household inventory, complete with any appraisals, receipts and photos. A bank safe deposit box is the best place to save these important documents.

Why hasn't my home sold yet? Mortgage interest rates are at all-time record lows and the home-sales market continues to be very strong. Yet many homes get stagnant on the market and remain unsold despite reports of brisk sales in the area. Why? Most experienced residential real estate sales agents will tell you there are three primary reasons why a home has not sold. But I'm also going to tell you about two other less talked about reasons why some homes don't sell. So, here are my five reasons why some homes don't sell even in a "hot" market: 1. THE ASKING PRICE IS TOO HIGH. It is generally acknowledged that the main reason houses don't sell is that they are overpriced. Prospective home buyers learn to compare and recognize the homes that are correctly priced, over-priced, and even under-priced. If a home doesn't sell within 60 days in today's market it's probably over-priced. When the market is "hot" many sellers think that they can ask any price and get it. This is an incorrect perception. Market values are set based on recent comparable home sales of nearby residences, the number of similar neighborhood homes currently for sale and their asking prices, asking prices of similar recently expired unsold listings, and condition of the home. Your property should be properly priced AT THE START. The market can be so competitive that even over-pricing by only a few thousand dollars could mean that your house will not sell and you will miss the all-important first few weeks on the market. Pricing too high will deter your best potential buyers, instead bringing in buyers expecting the features of a higher priced home. The result is disappointment. Pricing too high minimizes offers, lowers showings, lowers Realtor response, limits financing, limits qualified buyers, and actually nets less for the seller. Remember, for a buyer to get a loan, the property MUST APPRAISE for the selling price. 2. CONDITION OF THE HOME. A home that is in tip-top move-in condition will usually sell quickly and for top dollar. That's why the smart home sellers paint and fix-up their homes before placing them on the market for sale. For those sellers who don't want to incur the costs or do the work to fix-up or update their homes, the key to selling is in the pricing. It may take longer, but a fixer-upper or a home needing TLC will sell if properly priced. These can be fix-up bargains for home purchasers willing to tackle upgrades. 3. LOCATION AND DEFECTS THAT WILL NOT BE FIXED. There are times when fixing up might be a waste of time and money. A home located next to RR tracks, for example, or with a bad floor plan, may do better if offered for sale "as is". This means the home seller must disclose to buyers any known defects, such as a bad roof or basement leaks, but the seller will not pay for repairs and the buyer accepts the house "as is". A bargain asking price will bring in home buyers attracted by the low price and willing to do the work or accept the incurable defects such as a bad floor plan or poor location. ...Two more reasons why some homes don't sell are: 4. SELLER OR LISTING AGENT ACTUALLY DISCOURAGE THE HOME SALE. Without intentionally doing so, some agents and sellers make it so difficult for a buyer's agent to show and sell the home that those agents prefer to avoid showing it. Being responsive and willing to work with other agents is imperative. Making the house easily accessible for showings and keeping it in "ready to show" condition can mean the difference between getting it seen by potential buyers and sold -- or not. 5. INEFFECTIVE MARKETING METHODS. Some agents either cut the advertising and marketing costs to justify a lower commission or use ineffective methods. Listing agents who don't do a good job putting all their listings on the local Multiple Listing Service (MLS) and on the Internet are missing a huge source of prospective buyers. But to be successful at selling a home, there is more effort required than just using the local MLS and the Internet to market listings. The best agents use aggressive marketing plans such as their own website, local mailings, relocation marketing services to attract out-of-town buyers, weekend open houses, broker open houses, networking with other agents, and all-important newspaper ads and home magazine advertising which attract most home buyers. IN SUMMARY, if you are selling your home yourself, or if your home is listed for sale but it hasn't sold yet after 60 to 90 days, the problem is usually one of those listed above. Perhaps it is overpriced. Maybe it has incurable defects. Possibly the marketing is ineffective. Please feel free to call me for a review and a plan that meets your needs.

What's next after accepting an offer to purchase our home? Within 24 hours after the offer is accepted, the buyer's earnest money check is deposited. A neutral depository (usually the Broker or an attorney) holds the money until the sale is either closed or cancelled. Then there will be contingencies in the contract which must be met. A contingency is a condition that must be satisfied for the sale to go through. If a contingency can't be satisfied, the sale is usually cancelled and the buyer's earnest money returned. Common contract contingencies are attorney approval, home inspection, financing, and a home to sell. These should have time periods for performance. Most contracts include a provision stating that time is of the essence -- meaning that if  a deadline is not met, the transaction could be jeopardized. Any inspections need to be completed by the date on the contract and any problems, requested repairs, etc. need to be presented to the seller in writing by the date shown on the contract for the inspection contingency. The buyers lender should have the appraisal done and prepare a final loan commitment by the date required on the contract. If the buyer has a home to sell, this should be resolved by the date for this contingency on the contract. During the course of the purchase transaction, a title company will inspect the title record on the property to make sure that it is in order and get seller's mortgage payoff figures. An attorney will then prepare a deed and the Illinois Real Estate Transfer Declaration. A delayed closing can wreck the moving plans of both the buyer and the seller. In most cases, the buyers can't move into their new home until title to the property is transferred to them from the sellers. The title transfer doesn't occur until all of the buyers' money is accounted for. Most buyers use mortgages to pay for a good portion of the purchase price. Snafus in the mortgage process are the most common reason a closing is delayed. Within 48 hours of closing the buyer has an opportunity and responsibility to do a final walk-thru inspection to see that the terms of the contract have been fulfilled and take notice of any change in the physical condition and operational aspects of the property between the date of purchase and the date of closing. In Illinois the buyer takes possession at closing. That means the seller has moved out and left the home in broom clean condition (or as otherwise stated in the contract) and that the buyer takes possession at closing.

Avoid the seller's nightmare The nightmare sale might go something like this. First, the house takes forever to sell and when it finally does sell you're not happy with the price. Then the home inspection (or pest inspection, or mold inspection, etc.) reveals major problems, which comes as a complete surprise to you. And to end it all, the transaction falls apart at the last minute, without warning, and you are back to square one. Here are a few tips to help you to avoid this kind of nightmare when selling your home. Start by planning as far ahead as possible. If you're thinking of a move, start preparing well before you plan to put your home on the market or find another home that you want. Meet with your real estate agent and develop a game plan. Your agent can advise you about what you need to do to get your home ready to sell, and you will have time to do whatever is necessary to get the work done. To minimize the risk of being surprised by a bad home inspection report, find out as much as possible about your home's condition. Look at the home carefully and critically. You may even want to have your home inspected before you start to sell and have the report available to potential buyers. #1 SELLER TIP: One of the most important things you can do to ensure a successful home sale is to list your home for a realistic price. Over-priced listings take longer to sell. The longer a home stays on the market, the harder it is to sell, and the lower the final selling price is likely to be. Pricing strategies vary, but it's best to list for a price close to the expected selling price suggested by your Realtor and the market analysis for your area. Get your home into top condition and keep it that way while it is on the market. It can be difficult, but homes that show well get shown more. The more it is shown, the better your chances of selling in a reasonable time, at a good price, and with the least amount of inconvenience. You should leave your home when it's being shown to prospective buyers. Don't hang around the house while buyers are trying to decide if your home is the right house for them -- the buyer often feels awkward in this situation and will leave without giving the appropriate attention to the home. Ask your agent to follow up with other agents who show your home so you can get feedback.  Disclose known property defects. Illinois law requires the residential real property disclosure report be filled in truthfully. No, this will not drive buyers away, but failing to disclose defects could end up losing you the sale or worse yet, could be costly if you end up in court. Let your agent know that you want to be kept up to date about all aspects of the real estate transaction, especially any bad news which may lead to a failed transaction. The sooner you know about a potential problem, the sooner you can work out a solution. For help with your buying and selling decisions, please feel free to email or call me at 815-381-6850.

Should I spend a lot of money on improvements before putting my home up for sale? Probably not. You don't have to spend a fortune to prepare your home for sale. Concentrate on cost-effective improvements that will aid in a quick sale or a higher price. Paint is a very inexpensive improvement and can do wonders. Where you can replace wallpaper with new paint, do it.  A neutral decor (off-white walls and beige carpet, for example) is usually a good choice from a resale standpoint. Replacing outdated light fixtures is another relatively cheap and easy improvement. To get an updated look with minimal expense change cabinet hardware, add a new countertop, replace chipped sinks or worn faucet, cover worn hardwood floors with decorative rugs and dress up windows with curtain rods and pleasing fabrics. You can add a new countertop, replace chipped sinks or worn faucets if absolutely needed. It is usually best to leave the major improvements for the next owner.

Is my home worth less because it is located on a corner? Not necessarily. Being a corner house can decrease your home's value if the location is unusually noisy or exposed to heavy traffic. (Being on a heavily traveled street, whether on a corner or not, may also affect value). Many other factors are involved in determining market value, including the size and attractiveness of the lot, neighborhood quality, condition and features of the home, recent comparable sales and other neighborhood homes currently on the market (your competition), and current market conditions. When pricing your property, be sure to get a comparative market analysis and an estimate of your home's value. Critically think through your home's assets and liabilities. Your final price should be based on what a reasonable buyer would expect to pay in the current market.

How do I make a retirement move? Psychologically, it helps to make a retirement move if you know where you'll be moving before you sell your current home. Start looking at your options well in advance of when you will want to make your move. You'll want to know how much your current home is worth in today's market. Start working with a Realtor now so you will be able to get the advice you need from a professional who understands your needs. The longer you've lived in your home, the longer it may take to get ready to sell. Family members may be able to help by removing the belongings they should have claimed long ago. Don't be surprised if your children discourage you from selling the family home. Their memories are tied to the home just as your are. Selling the family home confirms the end of an era. It can be very painful and difficult to make a change, but it's important to accept reality and move on. The result may be surprisingly pleasant. Your choice for this next stage of your life may be a 1 level home with more conveniences, a condominium with outside maintenance provided for you, a senior or assisted living residence, senior residential community, or nursing home. A retirement move is often seen as a necessity, but there are many choices. Many retirement homes have waiting lists. Even though you may have to wait months or even longer to move in, you should move forward with preparing your home for sale. This way you'll be ready to put your home on the market as soon as you get the word there's a place available for you. It's natural to feel sad at times about making a retirement move. The benefit is that, depending on your choice, your home will have new conveniences and be easier to live in at this stage of your life, or you can choose to be free of home maintenance worries, which will free up time for more enjoyable activities. Would a seller be misrepresenting a property by not disclosing something about it? YES! Illinois law requires a residential real property disclosure report be filled out by the seller. Failure to disclose known information reflecting the current condition of the property could constitute misrepresentation and grounds for legal action. There are other issues that must be disclosed as well. For example: you convert a portion of your house to a rental unit, listing it as such or telling buyers that your property has a rental unit that brings in $400 a month. Misrepresenting the use of the property by a failure to disclose that the unit was converted without building permits and is not in compliance with local building codes or zoning regulations could constitute grounds for legal action. SEVEN WAYS TO A SMOOTHER, FASTER HOME SALE SELLING A HOME -- more tips for selling a home Need additional help with the details of buying or selling a home? Please don't hesitate to call me at 815-381-6850.

	MY PERSONAL SERVICE POLICY TO HOME BUYERS AND SELLERS: To provide the Service, Attention, and Results you expect of your Personal Realtor®
					Contact Bill Marek
		Recipient of the Illinois Association of Realtors 2001 President's Achievement Award Let me show you what I can do for you as your "Personal Realtor"
					by phone: 815-381-6850 ­ Office Direct by fax: 815-381-1109 by mail: Bill Marek Dickerson & Nieman, Realtors 6277 East Riverside Blvd. Rockford, IL 61114
					The aboutRockfordHomes.com website has been designed to help you find the information you need to make informed decisions as you buy or sell a property. As the Rockford Real Estate Resource Center you will find everything you need to know about Rockford real estate, including a complete and up-to-date listings of available properties for the Rockford area and Winnebago, Boone, and Ogle counties. SELLING A HOME? Let me put my experience and knowledge of the local Rockford real estate market to work for you with a free detailed 'Comparative Market Analysis' of your home value today.

	FOR MORE HOME BUYING AND SELLING INFORMATION GO TO:       [ FIND HOMES FOR SALE and VISUAL TOURS ] [ Sunday Open Houses ] [ EASY SEARCH UPDATES–Get The Most Current Information on Homes For Sale ] [ Rockford Area Lenders and Interest Rates ] [ Mortgage & Finance Information ] [ Monthly Mortgage Payment Calculator ] [ Apply for a Mortgage and Financing Pre-Approval ] [ Home Inspection Guide ]      [ Get Relocation Information Mailed to You ] [ Relocating Guide to the Rockford area ] [ Rockford Community and School Links ] [ Winnebago County "SCHOOLS REPORT CARDS" ] [ Relocating Guide the Ogle County area ] [ Ogle County Community and School Links ]  [ Ogle County-land-homes-business-TODAY'S LATEST LISTINGS ]      [ How to Sell a Home ]      [ Information for Homeowners ] [ Real Estate Questions and Answers ] [ Senior Retirement Planning -- Comparison of Nursing Home Facilities ] [ Featured Homes and Visual Grand Home Tours ]   [ Fixing-up and improving your home -- how-to tips ]    [ NEW CONSTRUCTION HOMES -- Floor Plans, Custom Build Designs ] [ What's The Value of My Home -- FREE HOME MARKET appraisal ] [ Contact Bill Marek for Buying or Selling Real Estate in the Rockford Illinois area ] [ Home Page ]
	Find ALL THE HOMES LISTED FOR SALE in this area and get the latest information on NEW LISTINGS of homes for sale, or call for information about ANY home, to get advice on buying or selling, or to see a specific home anywhere in the Rockford area. If you are THINKING OF SELLING YOUR HOME email or call 815-381-6850 to find out what the current market value of your home is and what I can do to successfully market and sell your home –quickly and for top dollar. (This market analysis and consultation is Free -- no charge and no obligation)
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