10 Important Steps to Take... 
Before You Sell Your House

1. Get Pre-Approved for a Home Loan - If You Will Need To Buy A New House

Before you decide to sell your house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.

Start looking for two types of real estate: houses that seem to match the one you'd like to buy and houses that are similar to your current home.  How do the two categories compare in price?  Can you handle the difference if you're planning a step up?

2. Check Your Mortgage Payoff

Call your lender to check the payoff for your current home mortgage.  You'll need the figure to complete Step 6.

3. Determine How Much Your House Is Worth

Determine your home's fair market value.  Arm yourself with the facts.  It is best to access the knowledge of a professional – but don’t spend money on a formal appraiser – your REALTOR will provide a Comparable Market Analysis for you.  Your agent will determine which type of market you are in (a buyer’s market, a seller’s market, or a neutral market) ; then study your area to compare your home to others based on style, size, number of bedrooms, baths, garage, basement, view, and lot size.

4. Estimate Your Costs to Sell

Mortgage payoff

Real estate commission

Attorney, closing agent and other professional fees

Property Transfer Tax or Land Gains Tax, if applicable

Prorated costs for your share of expenses; such as property taxes, homeowner association fees, municipal water and sewer costs, and fuel tank rentals.

Any other fees typically paid by the seller in your area

Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.

5. Estimate Costs to Buy a New Home

Calculate moving expenses, loan costs, down-payment, home inspections, title work and title policy, paying for a new hazard insurance policy - all expenses related to buying a home.  Your lender should give you a disclosure of estimated costs when you apply for a loan pre-approval.

6. Calculate Your Estimated Proceeds

1.Deduct your mortgage payoff from your home's fair market value.

2.Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.

Will your closing proceeds cover your costs to buy a new home? If not, do you have cash or other funding to make up the difference?

7. Make Necessary Repairs

Prepare your home to sell.  Make all needed repairs unless you want the house to be regarded as a fixer-upper. I'm not referring to cosmetic updates--just items in need of repair.  Anything that's obviously broken gives potential buyers a reason to offer you a lower price, especially if it's one of several repair hot-spots that worry buyers the most.

8. Get the House Ready to Show

Get your home "show ready".  Most houses need at least a little “spiffing-up” before they are shown to potential buyers. Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances and a clutter-free look are essential if you want the house to appeal to buyers.

9. Get Psyched-Up to Let People In

Your real estate agent will ask you to leave when the house is shown.  Why?  Because lurking sellers make buyers nervous - they don't feel comfortable inspecting the house when they feel they are intruding in your personal space.

10. Make the house accessible.

That means it should always be ready to show. Many agents won't bother showing a house that takes 24 - 48 hours to get into.