2 part question-Selling my home

[JR]

Just keep beds and things in the house until it's sold.

Hmm, that might be going too far, Bill. I'd always heard that it was important to have furniture in the house, so the buyer could get a reasonable picture of how things work. Having no furniture is too much of a blank slate for many people.

I'd think the advice to get things out refers to the clutter and extra things we acumulate. You're looking for a sort of show-room effect, if possible.

Good luck.

JR

[bmyers]

and, once you've sold, the best advise I can give when moving back to NY is to bend over and take it. Don't ask questions like why is a one bedroom, half bath, 4 room home going for $550K? It is, get over it. And I'm not talking the city either, then it'd be $999K!

Thats funny! I hear ya.. I've looked at prices there and it's getting better but still a $450k raised ranch on 1/2 an acre is normal there. It's along the Metro North line on the Hudson so prices are still a little crazy.

Luckly, we don't have to buy a house right away or anytime soon when we get there. We am moving in with my mother and her house. It's a 5BR/2BA 3 story historical home that needs restoration. It's also got a 2 story 1500 sq ft garage seperate from the house. Right now, it's only got her in it. Big house for a single person. We might just buy off the rest of her mortgage and enjoy not paying rent/mortgage on both our parts. School taxes alone are $5k a year!

Now, moving your wife in with your mom is a whole other can-o-worms..

Hmm, that might be going too far, Bill. I'd always heard that it was important to have furniture in the house, so the buyer could get a reasonable picture of how things work. Having no furniture is too much of a blank slate for many people.

JR

Well, beds, dinning table -n- chairs, couch, dressers. It's good advice. Uncluttered but not empty.. I got lots of clutter to get rid of..

Bill

[jseklund]

I agree with leaving furniture in there and just uncluttering. The other thing to keep in mind, depending on who your buyers are, is that the furniture MAY be a good way for you to negotiate. You're going to get rid of it anyway, but your buyer may not know that. If you are asking $500,000 and they are offering $490,000 you may be able to uncover that they need money to furnish their new house, but like the way you furnished it. Full price and you leave the furniture and done......

Just an idea. Good luck!

[Tom Miller]

Now, moving your wife in with your mom is a whole other can-o-worms....

Might want to check into the live-ability of the "2 story 1500 sq ft garage seperate from the house".

Regards,
Tom

[buddyroo]

I have sold a few houses, mostly in estates, when I practiced law.

Many good ideas have already been mentioned. Any that I repeat should be construed as an endorsement of their importance.

If you lack knowledge of the current market value get the house appraised. Some agents will shoot you a high figure, hoping to get your biz and convince you to lower your price later. Some will shoot you a low number, knowing that if they get the listing they can move it fast with minimum effort. Make sure YOU know what the house is worth.

Negotiate a lower commsission rate.

Get as much stuff, garbage, furniture, junk, whatever you want to call it, out of there before you start selling.

When people come to see it, bake a frozen pie or some easy to cut and bake cookies in the oven. If pressed for time put cinnamon sticks in boiling water on the stove.

Turn on every light in the house, including ALL closet lights, when people come to see it. I don't care if it is noon and there isn't a cloud in the sky, bright is good.

If you paint, paint neutral. Really neutral. Any walls that are dark, striped, red, purple or pink, peach, mauve, or any combination thereof are NOT neutral.

Clean everything. After you finish cleaning, clean it again. Repeat this process till you keel over.

Often I have seen houses sell very quickly. When they don't sell quickly they take a lot longer. Very rarely have I seen a house sell inbetween. Don't get discouraged.

Good luck.

[maxparot]

Wow Bill I don't know if I'd go back to NY. I grew up on Long Island and loved it but the economics and the pace of life is so different. Plus I hate shoveling snow! The one thing I do miss is fishing the bays and the Atlantic.
As for tips for selling hiring a realtor. I'd suggest not signing a contract for more than a month. 2 at most. That way the realtor has incentive to find a buyer fast. Also you can tie the commision to the time, say cut the commision in half after 30 days.(6% is standard but discount brokers can be half of that to begin with) The other thing is don't let the realtor try and talk you into listing low for a quick sale. I sold a home 3 years ago. I listed for more than I wanted at the high side of comparable homes in the nieghborhood and sold for what I wanted within 30 days.
If you get the chance before you list email me some details on your home and what you are looking to get my sister in law is looking for a bigger house if you can cut out the realtor with a private sale both you and the buyer can make out a bit better.
If you need the name of a realtor I know a few in the area also.
In any event good luck

[scorrpio]

Mostly great advice here, but I would suggest spending that extra $300 or so and hiring a pro home inspector. Understand one thing: the report he makes is confidential and is between you and him. You don't HAVE to disclose anything that he finds cause nobody should know that you even had it inspected. For this inspection, the house should be already uncluttered, so your inspector has access to same areas as buyer's inspector.

Those inspectors usually have years of experience spotting things that non-pros will pass by, and they also have code knowledge, and know what is a 'must fix', and what is a 'should fix'. Realize that when you have a signed contract, and buyer's inspector comes in, and finds 'must fix' issues, breaking out your toolbox is no longer an option - you'll need to present a receipt from a licenced contractor, usually along with a proper work permit and and an approval sticker from the municipal inspector. In other words, you can leave the burden of proof to the buyer, but whatever buyer finds will cost you a LOT more.
That front porch 4x4 you mention is definitely a must-fix, cause it represents a safety hazard.

[JR]

... but I would suggest spending that extra $300 or so and hiring a pro home inspector. Understand one thing: the report he makes is confidential and is between you and him. You don't HAVE to disclose anything that he finds ...

Not true in California (don't know about AZ). In CA you are explicitly obligated to disclose issues you know about.

Those inspectors usually have years of experience spotting things that non-pros will pass by, and they also have code knowledge, and know what is a 'must fix', and what is a 'should fix'.

True, but their report is as an advisor to the buyer. The buyer and seller are still the ones who have to make a deal. It is possible to negotiate any and all things discovered by the inspector, including code violations. For instance when selling my mother's house two years ago, we had a code violation regarding sheetrock in the garage on the wall attached to the house. We did the repairs ourselves, among a long punch-list of negotated issues, and the buyer signed off on it. On a couple of non-code things on the buyers' inspection list we responded that we did not intend to fix them and the buyer agreed.

I'll mention another issue, because it's important. When I bought my house ~7 years ago there was a second-story deck which had been built without permits. The seller and I negotiated that we would take the house as is, without requiring permits to be taken out. The details may very well be different in other areas, but my main point is that most everything is negotiable.

Doing a real estate deal is no different in principle than selling a bandsaw, just on a different scale. Obvious problems become obvious points for negotiating. Hidden problems are both a matter of conscience and caveat emptor. Offering 1 year of homeowners warranty is great way to bring the seller and buyer together.

JR

[scorrpio]

The *buyer* might be willing to let things slide if he really wants the house. However, unless the buyer is paying cash, the REAL buyer of the house is the bank supplying the mortgage. And on some issues, bank dictates the terms. For example, when I was buying mine, and inspector found carpenter ants on the lot (not in the house itself though), bank basically said no mortgage till pest control company receipt is furnished. If that porch you mention was deemed unsafe, things would be different.

And with real estate boom over (at least here on the east coast), it is buyer's market. Many people desperate to sell, prices dropping, and buyers can take more hardnosed approach to house issues. Were I selling a house today, I definitely would start by hiring an inspector and fixing myself as much as he finds before going to a realtor.

[jseklund]

Different states have different laws. JR is right that selling a house and a bandsaw do share a lot in common. However, a bandsaw is PERSONAL property, while a house on a piece of land are REAL property. Different laws do apply, although there may be some argument for overlap. To make matters worse, as you are seeing in this thread, different states can handle different situations in completely opposite ways, similar ways, or twisted ways (in respect to each other). As far as negotiating goes though, yeah, you can negotiate on a bandsaw and you can negotiate on a house. Some things you fix, some you don't, some you will fix if you get the right price, others you won't fix if the price is too low. Sometimes you'll throw in the washer and dryer with the house.

As far as DISCLOSING info goes- this can be a touchy subject. If you hire an inspector, and he finds an issue, you MAY NOT be OBLIGATED to disclose the information. You may be able to sit on it, never mention it, and move on (depending on the specific issue and the specific state). For instance, in MA- if you are selling a house that is stigmatized (a murder, violent crime, suicide, haunting, etc. occured in the house for instance), you are not obligated to disclose it. However, if a buyer ASKS - "Has anyone ever commited suicide in this house?" then you are required to respond with the truth. To do otherwise is fraudulant. Most states, I believe (again, not a lawyer, and don't know laws in all states), will hold the same standard for most other problems. So, if the home inspector says, "The floor under your tub is weak and the tub is about to come through the ceiling." and then the buyer asks you, "Do you have any problems with the tub?" ....you are now legally obligated to say, "Well, I had an inspector come through and he said the floow was having some problems." and answer to the best of your ability.

This gets hairy for two reasons. If you DO lie, there is an objective inspector who has now checked and KNOWS that he told you. This will be possible proof/evidence that you committed fraud. Beyond this, communication in a deal of this manner is not always succinct. For instance, I could ask- "Have you had any problems with this tub?" and you say, "No I haven't." which is true. You have not. You do, however, know that there IS a problem with the tub. You just haven't fallen through yet. A judge will most likely (unless you have a **** of an attorney) construe this as a lie. Or, "Have you had any problems that I should know about in this house?"....how do you answer that one?

USUALLY, the best bet is to be honest, disclose everything you can. Some of the things you think are big may not be big to a certain buyer, other things you can negotiate, others will need to be fixed (as stated earlier) for the bank, etc. You may lose a deal over a leaky faucet, but that is FAR better than closing on a deal and then having to go through the stress and expense of a legal battle, and a chance that you will have to take back a house, and give back the money you've already spent on your new home.

This is a perfect example of why BMyers is right on when he is willing to at least CONSIDER professional advice. Many people out there think they know thngs that are just not true, and there are a lot of pitfalls. Does this mean you can't sell a house on your own? No way. Sometimes, it's a roll of the dice though....caveat emptor, buyer beware. Seller beware too!

[JR]

For example, when I was buying mine, and inspector found carpenter ants on the lot (not in the house itself though), bank basically said no mortgage till pest control company receipt is furnished.

Yeah, that's a good point. Around here you frequently see a fumigator's tent go over the house when being sold. Some things just can't be negotiated away.

JR

[maxparot]

Here in AZ there is also a disclosure law as in CA. If you hire an inspector you can't play dumb. If the buyer is taking out a mortgage then the bank will require the buyer to have the house inspected by a licensed inspector. The buyer has the opportunity to negotiate new terms based on anything in the inspection report that was not disclosed.
One other thing that is very different here in AZ about purchasing realty is that the entire deal can be done by the buyers, sellers and their realtors without any lawyers and without the 2 parties ever meeting in person.
Also these deals are regularly closed in 30 days or less.
Very different from where I was raised in NY.

[JR]

... the entire deal can be done by the buyers, sellers and their realtors without any lawyers and without the 2 parties ever meeting in person.

In fact the agents don't want the parties to meet! Interestingly, there is a trend now in CA (mostly Bay Area), when in a seller's market, for the buyer to mount a marketing campaign onto the seller, to show why they're the most worthy buyer.

This happened when we sold my mother's house. The buyers, from San Francisco, forwarded via the agents a folder telling us a little about them and little Johnny, how their careers had brought them to SoCal, but sadly they'd been unable to find a suitable home. Mom's house, with the adjacent open space, would make the perfect environment for Johnny to roam free and grow tall and strong. All this with pics, including the grandparents living in the adjacent county!

I bet things are different right now, with the market turning down quite dramatically.

JR