“We plan to sell our home soon and appreciate the tips in your answers about what mistakes to avoid. It would also help us if you could give a list of all the steps to take in advance.”
—A long-time Palisades homeowner
I have shared most of the steps in previous columns and would be glad to send you copies if you would like. Just let me know your mail or e-mail address. Here is a summary of what your main action items could include.
Why Are You Moving?
Be sure that moving is your best choice at this time. People often do not fully consider all the alternatives when their home no longer works as well for them. Remodeling can make the spaces flow better, add rooms as needed, or function more comfortably for handicap usage. Hiring helpers can allow owners to stay in their homes much longer when the upkeep and daily chores become too much for them.
Think About Tax Implications
Look into any tax implications or impact before deciding to sell. There are ways to carry forward your Proposition 13-protected property tax base, but you must meet several requirements. There are federal income tax exemptions, as well as reduced capital gains taxes. There may be some potential state tax issues for you to consider. Please check with your tax advisor or accountant to find out what you need to know well ahead of time!
Research Your Realtor
Be careful and thorough in the process of selecting a real estate agent.
There are many highly important differences in real estate agents’ length and quality of experience, background, marketing expertise, negotiation skills, property preparation savvy, area of specialization, consistent availability, personal website and other customized Internet exposure, breadth of advertising, number of personal staff support, and compatible personality and style of communication. Be willing to take the time to interview at least two agents so you can explore what some of these differences may mean to you. Approach the process like an employer hiring an employee.
Contingency Buying and Selling
Decide whether you would prefer to sell first or buy first. There are some alternatives that can be used to provide peace of mind without having to buy before selling. There are also ways to enter into a purchase without having sold first. These options and how to accomplish them are best thought out before listing your home.
Prepare Your Home for Sale
Take the time to fully prepare for the sale. Be sure your agent is willing to make all efforts to help you get the house ready to show. Allow enough time to de-clutter, spruce up the general appearance, and consider making minor repairs. Discuss with your agent the advantages of doing “pre-inspections”, pest report, obtaining all required public reports and completing all property disclosures before beginning active marketing. Find out if you may have some difficulties due to insurance claims you have made, environmental issues, etc. This will enable you to resolve most potential problems before they complicate the sale process.
Find a Good Comp
Decide on an asking price based on comparison with actual sales of the most comparable homes over the last three to six months. Be sure to also take into consideration what alternative homes are now on the market that buyers will compare with yours. Be realistic and you may be lucky enough to get multiple offers!
Get Everyone Involved
Get everyone involved to support the process. Often the more positive the attitudes and energy levels of children or others living in the home, the better the prospective buyers will respond to the home. Having the house and yard look cared for can make a big difference to most people, so having everyone help out can be important.