Staying organized while uprooting your life and moving from one home to another can feel impossible. Not only are you trying to get the best financial return on your investment, but you might also be working on a tight deadline. There’s also the pressure to keep your home clean and organized at all times for prospective buyers. However, one thing you can be sure of when selling your home is that there will be strangers entering your space, so it’s important for you and your agent to take certain safety precautions. Like so many things in life, they can feel more manageable once written down, so we made this handy checklist.
- Go through your medicine cabinets and remove all prescription medications.
- Remove or lock up precious belongings and personal information. You will want to store your jewelry, family heirlooms, and personal/financial information in a secure location to keep them from getting misplaced or stolen.
- Remove family photos. We recommend removing your family photos during the staging process so potential buyers can see themselves living in the home. It’s also a good way to protect your privacy.
- Check your windows and doors for secure closings before and after showings. If someone is looking to get back into your home following a showing or an open house, they will look for weak locks or they might unlock a window or door.
- Consider extra security measures such as an alarm system or other monitoring tools like cameras.
- Don’t show your own home! If someone you don’t know walks up to your home asking for a showing, don’t let them in. You want to have an agent present to show your home at all times. Agents should have screening precautions to keep you and them safe from potential danger.
Talk to your agent about the following safety precautions:
- Do a walk-through with your agent to make sure you have identified everything that needs to be removed or secured, such as medications, belongings, and photos.
- Go over your agent’s screening process:
- Phone screening prior to showing the home
- Process for identifying and qualifying buyers for showings
- Their personal safety during showings and open houses
- Lockboxes to secure your keys for showings should be up to date. Electronic lockboxes actually track who has had access to your home.
- Work with your agent on an open house checklist:
- Do they collect contact information of everyone entering the home?
- Do they work with a partner to ensure their personal safety?
- Go through your home’s entrances and exits and share important household information so your agent can advise how to secure your property while it’s on the market.
Electing a full sale or a property management situation is a life-changing decision that shouldn’t be taken lightly. In choosing whether or not becoming a landlord is right for you, there are a number of factors to consider, but primarily they fall into the following three categories: financial analysis, risk, and goals.
The financial analysis is probably the easiest of the three to perform. You will need to assess if you can afford to rent your house. If you consider the likely rental rate, vacancy rate, maintenance, advertising, and management costs, you can arrive at a budget. It is important to both be detailed in your projections and to have enough reserves to cover cash-flow needs if you’re wrong. The vacancy rate will be determined by the price at which you market the property. Price too high and you’re liable to be left vacant. Should you have applicants, they’ll often be a group that for some reason couldn’t compete for more competitively priced homes. Price too low and you don’t achieve the revenue you should. If you want to try for the higher end of an expected range, understand that the cost may be a vacant month. Any way you slice it, it’s difficult to make up for a vacant month.
Consider the other costs renting out your property could accrue. If you have a landscaped or large yard, you will likely need to hire a yard crew to manage the grounds. Other costs could increase when you rent your home, such as homeowner’s insurance and taxes on your property. Depending on tenant turn-over, you may need to paint and deal with maintenance issues more regularly. Renting your home is a decision you need to make with all the financial information in front of you.
If your analysis points to some negative cash-flow, that doesn’t necessarily mean renting is the wrong option. That answer needs to be weighed against the pros and cons of alternatives. For instance, how does that compare to marketing the property at the price that would actually sell? Moreover, you’ll need to perform additional economic guesswork about what the future holds in terms of appreciation, inflation, etc. to arrive at an expectation of how long the cash drain would exist.
Risk is a bit harder to assess. It’s crucial to understand that if you decide to lease out a home, you are going into business, and every business venture has risks. One of the most obvious ways of mitigating the risk is to hire a management company. By hiring professionals, you decrease your risk and time spent managing the property (and tenants) yourself. However, this increases the cost. As you reduce your risk of litigation, you increase your risk of negative cash-flow, and vice versa… it’s a balancing act, and the risk cannot be eliminated; just managed and minimized.
In considering goals, what do you hope to achieve by renting your property? Are you planning on moving back to your home after a period of time? Will your property investment be a part of your long-term financial planning? Are you relocating or just hoping to wait to sell? These are all great reasons to consider renting your home.
Keep in mind that renting your family home can be emotional. Many homeowners love the unique feel of their homes. It is where their children were raised, and they care more about preserving that feel than maximizing revenue. That’s ok, but it needs to be acknowledged and considered when establishing a correct price and preparing a cash flow analysis. Some owners are so attached to their homes that it may be better for them to “tear off the band-aid quickly” and sell. The alternative of slowly watching over the years as the property becomes an investment instead of a home to them may prove to be more painful than any financial benefit can offset.
Before reaching a conclusion, it’s a good idea to familiarize yourself with the landlord-tenant-law specific to your state (and in some cases, separate relevant ordinances in the city and/or county that your property lies within) and to do some market research (i.e. tour other available similar rentals to see if your financial assumptions are in line with the reality of the competition across the street). If you are overwhelmed by this process, or will be living out of the region, seek counsel with a property management professional. Gaining experience the hard way can be costly. With proper preparation, however, the rewards will be worth it.
It can sometimes be tough to hear an agent asking you to hide your prize possessions when preparing your home for sale. I overheard two agents giving each other advice about how to politely help their sellers relocate their pink flamingo display and car collection off the front yard before putting the homes on the market.
Studies indicate that buyers decide if they’re interested within the first 30 seconds of entering a home. You get one chance to make a first impression.
Make sure your house looks attractive, well maintained and move-in ready at a glance. Before you put out your “for sale” sign, put these tasks on your to do list.
• Get your yard in shape—Mow the lawn, trim the hedges, haul away debris, sweep the walk, porches and patio, and consider adding some potted plants or hanging baskets for a touch of color.
• Keep it clean—Make sure your house can pass the white-glove test. Polish windows and scrub bathrooms, appliances, counters and floors until they gleam. Vacuum carpets, rugs, drapes and upholstery. Dust shelves, floorboards and molding.
• Give it a fresh coat—Paint the front door, walls leading to entrances, ceiling stains, cracks, chipped or damaged areas. A little paint goes a long way to improve the look of your home.
• Just fix it—Repair anything that needs it, including broken doorbells, torn screens, leaky faucets, broken deck railings or banisters, damaged floor tiles or doors that don’t close properly.
• Lose the chaos—Organize your rooms, closets and basement—anywhere a prospective buyer is likely to look. And don’t forget to remove pets and litter boxes.
• Set the stage—Help prospective buyers imagine life in your house. Remove excess furniture and rearrange what remains so that rooms look spacious and welcoming. Light scented candles, play soft music, add flowers here and there, you might even bake cookies.
• Hire a pro—Don’t have time to get your house ready to show? Turn to a realtor with an ASP® (Accredited Staging Professional) designation to stage your house professionally.
As a seller today you are faced with a challenge when it comes to selling your home for a fair price and getting it done in a reasonable amount of time. Even though inventory is lower than it was five months ago, we are still looking at about 9 months of inventory in many areas. This large amount of inventory indicates there is a lot of competition out there to attract the right buyer.
We all know there are more than five steps involved when it comes to selling your home. We asked a few of our Windermere agents what advice they would give a seller today if selling your home came down to just five key things.
Top five by Liz Talley Windermere Ballard
- Refresh the garden.
- Clear the entry and front porch.
- Minimalize & depersonalize.
- Price it a wee bit under the competition so that it pulls in buyers.
As always, market presence, professional photos, etc. all make an enormous difference but these five steps are the key right now.
Top five by Jamie Johnson Windermere Camano Island
- Price. Listen to your real estate expert and don’t try to “start high.”
- Clean and stage. You are competing with other great deals out there. Yours needs to stand out and shine.
- Follow a marketing plan. Drop your price 3% every 30 days.
- Ask yourself – what is your goal? Most sellers have a dream of making a lot of money off the sale of their home. If your goal is to purchase another home, you will make up for your loss” there. It’s all relative.
- Hire a local expert. Interview at least three agents. Do your research. A good agent will do all that for you.