You Have to Spend Money to Make Money

Remember the old adage that you have to spend money to make money? Well, it certainly is true if you are planning to sell your home, especially in this market. They key word there is "planning". If you plan ahead, you will have a better sense of the scope of work and spending that will be required to sell your house. So, what are some categories of planning that you should budget for?

Inspections. You should have several inspections to make sure your home hasn't developed any problems that need to be disclosed. Some inspections to consider are pest/structural, general home inspection, sewer lateral, chimney, and roof. Keep in mind that you will need to include any inspections in your home's disclosure package. Inspections can cost you a couple thousand dollars, depending on what you schedule.

Repairs and Updates. Based on what the inspections turn up, you may need to have some repairs done. Perhaps you will need some work on the sewer or roof, or perhaps an update to the electrical system. It is hard to budget ahead for this until you get the inspections done. You may also want to consider updating features in the home, such as an out-of-date kitchen or perhaps adding dual-pane windows. A good Realtor can help advise you on what will make your home more attractive to the market, and how to do it in an affordable manner.

Staging and Landscaping. This topic has been discussed several times here before, but a home with attractive interior design and clean landscaping goes a very long way toward improving your curb appeal. Depending on the size and needs of your home, this can cost in the range of $2-4,000.

Commission. It might seem self-serving to bring this up, but this is how Realtors get paid. And, having a healthy commission available to the buyer's agent will likely cause more agents to bring clients through your home. The typical commission rate in this region is 5-6%. You might also want to consider an incentive to the Buyer's agent, such as a bonus. Commissions are paid at the close of escrow after the house has sold.

Closing Costs. There are many costs associated with the legal transfer of property, including transfer taxes. The standards for which side pays which fees varies from region to region, and this will typically come out of any proceeds.

The costs of selling a home vary drastically from transaction to transaction. If you would like help planning a budget & schedule for selling your home, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

"All the world's a stage..."

You might be wondering if you need to stage your house to help sell it. I can tell you right now that you do indeed need to stage your house. You might be thinking, "Hey, she hasn't even seen my lovely home. What does she know?" I know that you need to stage it. Let me tell you why.

You are trying to sell your house, not your home.

While I am sure your home is lovely, but it is your home and it is full of your personal taste, furniture, and memories. To sell your house, you need to present it as a showplace, cleared of its past and ready for the future--ready for new ideas and new adventures.

Buyers want to see a house that is light, airy and open--a blank slate for them to envision their futures. They want to see new furniture, new designs, and they want to see as much of the floorplan as possible so that they can begin to imagine their own furniture and ideas in the space. Buyers want to see your house as their future home.

Professional stagers can help you with everything from de-cluttering and re-organizing to providing new paint and new designs to maximize your house for the market. Take a look at the following before and after pictures of the dining room of a house I recently sold so that you have a better idea of what stagers can do for you.

Before:
















After:

Which would you prefer? Look at the difference in space and color and think about which one you would want to buy.

This staging was done by Scout, and there are many terrific staging companies in the East Bay, such as Jackie Brown. If you would like to further discuss the power of staging or need a referral, please let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Have a great weekend!