Remember, cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It’s attention to the basics—anything that says “this home has been carefully maintained”—that will help you get the price you want.


Go It Alone--or Choose an Agent?

Some homeowners decide to sell their homes themselves in order to save the commission charged by a real estate agent. The commission rate may vary, depending on where you live or what agency you choose, but it is generally upwards of 5%. However, handling your own sale means you will be responsible for placing ads, answering phones and showing your home to strangers. What’s more, buyers who know you are saving on an agent’s commission may offer less for your home, wiping out the financial incentive to do it all yourself.

You may decide an agent’s commission is a bargain the first time that a would-be buyer shows up unannounced at dinnertime. Also, be aware that a real estate agent probably knows a lot more about the business of selling a home than you do. Here are some of the advantages professional agents offer:

• They will help you establish a fair asking price for your home.
• They will promote your home to other agents and list your property in multiple listing services. A multiple listing service is a book or computer database that all real estate agents who subscribe to the service can access. Your home will get exposure to all those agents, one of whom may have the perfect buyer.
• They will create, pay for and place advertising for you.
• They will schedule appointments to show your home to prospective buyers even when you are not there.
• They can weed out buyers who will not qualify for a mortgage.
• They can refer you to sources for insurance, inspections, legal counsel and financing.
• They will help you negotiate with the buyer.
• They can make suggestions to help make your home more attractive to a potential buyer.

If you decide to sell through an agent, ask friends and neighbors for recommendations. Talk to several agents before picking the one you want to work with. Taking a walk through your home with an agent should give you a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home. Don’t sign with an agent just because he or she suggests the highest asking price. Negotiate the broker’s commission prior to listing your home, and sign for a limited period of time—usually three to six months.


Setting a Fair Price

Naturally, you want to get top dollar for your home. But, at the same time, you don’t want to scare off potential buyers with a price tag that’s too high. Setting an artificially high price may cause your property to languish on the market for months. Reducing your asking price later on may lead buyers to wonder if there is something wrong with your home. Here are some of the factors to consider in pricing your home.

• Your location
• Economic conditions
• Supply and demand in the local housing market
• Seasonal influences
• Local schools
• Average home prices in the neighborhood
• Your home's extras -- pool, fireplace, central air, etc.

To determine the value of your home, you probably will want the advice of a real estate agent or appraiser. Ask an agent to prepare a market analysis for you, showing the recent selling prices of three neighborhood properties comparable to your own. The agent can help you adjust for the unique features of your own property.


Qualifying a Buyer

Either you or your agent will want to quickly weed out potential buyers who cannot really afford to purchase your home. A number of factors will help determine whether or not you are wasting your time negotiating a sale.

• The buyer's debt and credit history
• The buyer's current income and employment
• The buyer's cash position and availability of a down payment
• The length of time the buyer needs before closing on your home
• How interested the buyer appears to be in your home versus others