General Info & Tips

In order to make a wise purchase decision, potential buyers will need some basic information about your home. To assist them, gather the following information before you put your house on the market.

• A copy of the warranty deed and title insurance papers.
• Property plat.
• Mortgage papers.
• A list of appliances and fixtures to be sold with the house.
• A list of annual property taxes and other assessments.
• A list of home improvements (with the receipts, if possible) which have added value to your home.
• A list of local schools, churches, and recreational facilities.
• A package containing manufacturers’ instructions and service information on appliance and home systems.
• An information sheet giving room sizes and other pertinent details about the home.

The Five Steps of Selling a House

Preparation: Before being placed on the market, homes must be in "show" condition. REALTORS® can explain what repairs and upgrades are required for individual homes which are most likely to produce the best results.

Pricing: REALTORS® do more than price homes for sale, they also construct sale terms designed to speed the selling process.

Marketing: REALTORS® will execute strategies and programs to get the home sold. Typically this includes placement on the local MLS and RockfordAreaREALTORS.org as well as related marketing, advertising and networking.

Negotiation: REALTORS® assist owners in the bargaining process, offering advice and counsel as offers are received and by working closely with legal counsel, tax specialists, appraisers, lenders and inspectors as required.

Closing: Once a contract for the purchase of a home has been accepted, a series of inspections and checks are typically required to satisfy buyers and lenders. REALTORS® can help owners complete the transaction process by assisting with the many requirements found in a typical sale agreement.

You've found the home of your dreams and you want to buy it before someone else does...but you already own a home. How can you afford to but the home of your dreams if selling your present home may take some time?

MAKE THE PURCHASE OF YOUR NEW HOUSE CONTINGENT ON THE SALE OF YOUR EXISTING HOUSE

Be aware however, that sellers dislike contingency clauses and often add an escape clause to protect themselves. With the escape clause, if another buyer makes the seller an offer, you must remove the contingency within a specified amount of time, or the seller is free to sell to the other buyer.

ARRANGE FOR FINANCING AS SOON AS POSSIBLE

First consider your source of cash for the downpayment. Life insurance policies and gifts from relatives and friends are possible ways to secure money for a downpayment. This will show the seller that you're financially qualified to buy.

OBTAIN A BRIDGE LOAN

If you want to be sure that you get the home and want to avoid a contingency sale, a bridge loan can enable you to bridge the gap between the purchase of your new home and sale of your existing home. Bridge loans generally are short term and are available in many different forms. A REALTOR® will be able to supply you with the names of lenders who can provide you with additional information.

Whether you choose to purchase the home on contingency or obtain a bridge loan, you'll want to sell your existing home as soon as possible. The following suggestions can help you speed the sale of your home.

CONSIDER LOWERING THE PRICE

If your home is priced at the high end of a fair range, adjust the price every month or so.

PROVIDE FINANCING TO THE BUYER

If you don't need all the revenue from the sale, you can enable the buyer to pay off part of the price over a longer period of time.

MAKE SOME COSMETIC HOME IMPROVEMENTS

A fresh coat of paint, new carpet or some simple landscaping can go a long way in impressing prospective buyers. A REALTOR® can provide you with suggestions on improving your home's "curb appeal."

Do you want to make a few changes in your home? No matter what type of remodeling project you choose, make certain the improvements increase your home's resale value as well as provide comfort and convenience.

According to the Rockford Area Association of REALTORS®, don't assume that the money spent on sprucing up your home will automatically be recovered. To maximize your return, consider how long you are likely to live in your home.

If you plan to move within a year or two, it's wise to limit yourself to relatively inexpensive touch-up projects you can do yourself or have done for little cost. Cosmetic improvements will give your home a fresh, clean look, add to its market value and create a favorable impression that will make your home easier to sell.

On the other hand, if you are certain you will stay in your home for a minimum of three years, you might consider a more extensive renovation. However, the Rockford Area Association of REALTORS® cautions against "over-doing it" -- spending more than you could possibly recover upon resale. The market value of your home is determined mainly by the value of the homes around it, regardless of renovations. Of course, if you plan to stay in your home forever, recouping your costs is not a factor. You can let your imagination and budget be your only limitations.

Once you have decided what you want to accomplish, think about financing. There are several options available. For instance, you might consider refinancing your current mortgage to cover the home improvement costs. This may be the most practical way to borrow for the long-term at market interest rates. If the outstanding balance is low on your current mortgage, refinancing could free up a considerable amount of cash. Another option is a second mortgage. The interest rate typically is higher on a second mortgage than the first mortgage and the term is shorter. For relatively minor home improvements (less than $10,000) you might consider an unsecured personal loan. The term generally is short and the interest rate is higher than on a secured loan. In addition, check to see if an installment payment plan is offered by the contractor.

When choosing a contractor, it's important to do your homework. Before interviewing potential contractors, decide what you want and why. Know what the renovation should look like and what problems you think it should solve. And, be firm about how much you can afford. By sticking to these rules, you can control both cost and design while minimizing the risks.

The Rockford Area Association of REALTORS® offers the following tips to help you choose a reliable contractor:

• Obtain at least three separate bids for all work needed and avoid firms that offer substantially lower prices than the others. You may find that the quality of the work is as low as their prices.
• Before signing a contract, obtain several references from the contractor, and check them carefully. In addition, contact the local office of the Better Business Bureau to check on the reputation and dependability of the company.
• Check to see if guarantees are offered. If so, find out if the guarantee covers all work, or is limited to certain materials.
• Obtain a written copy of the price quotations and the specific work to be done.
• Never pay a contractor in cash, particularly before the work is started.
• Obtain a certificate of the contractors' liability insurance coverage limits, policy and company.
• Proper preparation is the key to smooth, successful home improvements, and, once completed, the project can add to the value and enjoyment of your home.