How to get top dollar for your dwelling

With interest rates still low and a lean inventory of homes available, it’s a good time to sell your home.  Still, selling is a big decision that sets a number of actions in motion, from repairing your property to selecting an agent, and finally signing the contract.

The first thing to consider is if you’re selling for the right reasons. The market is softening in certain areas, but if you’re tempted to sell because you think it’s the top of the market, think again.

“People who cashed out three or four years ago intending to buy back in at a lower price are still waiting,” says James Hamilton, president of the California Association of Realtors and manager of real-estate brokerage Re/Max Execs in Redondo Beach, California. He adds that California housing prices are expected to increase 10 percent in 2006. “If you aren’t moving somewhere where the cost of living is lower, big mistake.”

If you still want to sell, you literally need to get your house in order. Make a critical assessment of any needed maintenance or repairs, or hire a home inspector to do them. An inspection will probably cost a few hundred dollars, but it's well worth it to not get a shock when a buyer has his own inspection done. At least if you find your roof is shot, you can decide if it's worth it to fix it or to sell the house as-is and set your price accordingly.

If your house needs some renovations beforehand, ensure you’re making the right changes. According to the National Association of Realtors, prospective buyers look most closely at bathrooms and kitchens. Adding a high-tech home theater probably won’t move your house any faster, but installing or refinishing hardwood floors in common spaces can only help. Inexpensive changes, such as painting walls in neutral colors and adding softer lighting, also work wonders.

Next, decide if you're going to sell the house yourself or hire an agent. If you want to save the typical broker commission of five percent, “For Sale By Owner” can be a good option if your home is in a hot location and is at an affordable price for lots of potential buyers, or where homes like yours are in short supply. You'll need an attorney or a title company to handle the paperwork, while you will be in charge of marketing the house, showing it, pre-qualifying buyers, negotiating offers, and working with the appraisers, title agents and mortgage companies. Since the market is constantly changing, you’ll need to have a good feel and information for the market in order to set the right selling price. One way to ease the burden is using a flat-fee broker, such as Help-U-Sell or Assist-2-Sell, franchises that connect you with local licensed real-estate agents that subscribe to their low-cost business model.

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