Get your home sold in 2012

It’s that time of year when most of us start to count our blessings, look back at what we’ve accomplished in 2011 and think about what we’ll get done in 2012. If selling your home is part of your resolution list for next year, there’s plenty of prep work you can do to set yourself up for home selling success.

Here are 5 things you can and should start working on without further ado, if you want to get your home sold - smoothly and for top dollar - in 2012.

1. Put your intentions in writing. The first step to any real estate transaction - actually, to anything important in life! - is to get clear on your goals. Unexpected challenges and situations might very well come up in the course of selling your home, so having a clear idea of your ultimate goals at the outset is a must to help you make the right decisions along the way and to remind you when you might need to course correct.

When you’re setting your objective and writing it down, it’s critical to be specific and holistic, drilling down to the details of what result it is you want your home sale to achieve in your life.

Also, establish where your priorities lie: with speed or with dollars? For example, your goal might be to sell your house as quickly as possible so you can relocate your family by spring. Or, your goal may be to sell your house at the best possible price no matter how long it takes.

Getting as clear as possible from the very beginning on your priorities and ultimate life objectives for the sale will allow you to communicate these crucial things clearly to your agent, and will power your decisions on issues like:

• which home improvement projects, if any, to complete before you sell;
• whether to accept a particular offer; and
• how aggressively to negotiate counter-offers, and on which points to push back against a buyer’s offer.

2. Study the local market. The most successful home sales are the listings that are priced right from day one. Ask any agent: even in the toughest markets, there are listing that sell quickly, mostly because the one-two punch of the property and its price look to buyers like a very strong value.

In order to position yourself and your property at the point of pricing nirvana, you’ll need to do some leg work. stat. You don’t need to pick an exact price this moment, unless you’re planning to list your home super soon, but you can get started on what I like to think of as the ‘thinking seller’s’ three-pronged approach to pricing now, by:

• visiting open houses,
• studying nearby listings, and
• talking with local agents.

Before the year is up, try to visit a handful of open houses in your neighborhood. This will help you get a sense of the types of homes that are on the market, what condition they’re in, and how they are priced. Keep in mind that no home is going to be exactly like yours, but if it’s similar in size, location and features, then buyers that see that property will probably be the same buyers that come to see yours - and they will be comparing list prices.

Another great prep tool in gearing up to sell your home in 2012 is to study similar homes for sale. Pay particular attention to what features they have, how they are described and priced, any incentives the sellers are offering (e.g., closing cost credits, etc.) and how long they’ve been on the market. (Hint: you might not want to price your home right in line with one that’s been on the market over a year. Obviously, that home is overpriced, and that is NOT a result you want to replicate!)

Finally, one of the most efficient and nuanced ways to get to know your local market is to begin speaking with agents who sell homes in your area. Get a few referrals, call them up and tour them through your home. Then, ask these pros for their opinion on what you should list your home for, what recent sales they think are the most comparable (and why), and how long they would expect your sale to take given their experience and current conditions.

You can use these same home tours to get a head start on selecting your listing agent by asking the agents you interview to give you a preview of what they would recommend in the way of preparing your home, timing your listing and marketing your house to achieve the objectives you set in Step 1.

3. Gather your paperwork. In planning for your sale next year, you can get a great head start by pulling together the necessary paperwork now. Keep in mind that the specific requirements vary by state, so this is not an exhaustive list. In general, you’ll need to have these ready:

• Disclosure documents: This includes any documentation of anything that might impact a buyer’s decision about your home, whether it be inspection reports, repair receipts or estimates for repairs you haven’t actually had done yet. Your local real estate pro will help determine what exactly is needed here.
• Compliance certificates: In some cities, the local government will require certain conditions be met before a property is transferred to another owner. Examples of these requirements include sewer line condition guidelines, and energy conservation ordinances that require low-flow toilets and shower heads to be installed. Again, your  real estate agent and your city’s website can help you figure out which, if any, of these types of ordinances might apply to your home.
• Mortgage statements: Before the property’s title can transfer to another owner, the escrow or title company will need your mortgage statements to order payoff demands from any mortgage holder who has to get paid before that can happen.
• Financials: If you’re planning on a short sale, you’ll have a lot more paperwork to gather in your process, including paycheck stubs, bank and investment account statements, and two years’ W-2 forms or tax returns - the bank will review these to determine whether they will authorize you to sell the home for less than what you owe.

4. Prep your listing plan and timeline. After you’ve done all your pricing homework and have chosen a listing agent, you can create a plan and timeline for how all the moving pieces will come together - including who is responsible for getting which tasks done. At minimum, your plan should specify:

• prep work you’ll be doing to your property before it’s listed for sale - including decluttering, staging and any repairs or cosmetic power-tweaks you plan to make;
• if you’re planning a short sale, a timeline for submitting an application to your lender for approval (this might be before or after the property is listed - consult with your lender and your agent on the matter)
• planned list price (based on current local market conditions - this could change if you don’t plan to list your home for several months);
• the target date on which your home will be listed for sale in the local MLS; and
• how showing arrangements will work so that local agents can get prospective buyers into your house to see the place, and what.

5. Get a head start on your ‘home’work. How much prep work your home needs really depends on its current condition. A good starting point for many sellers is to order an inspection. Most buyers will get their own inspection before closing a deal, but getting ahead of them with your own will help you avoid any unwanted surprises later on in the transaction. An inspection will give you a reality check on your home’s condition, enabling you to decide upfront whether it’s worth it to fix something now or simply reduce the price in consideration thereof.

Your holiday vacation from work is a great time to: 
     (a) obtain any advance inspections your real estate agent recommends, 
     (b) have any reasonable repairs completed, 
     (c) pre-pack and declutter your place, and 
     (d) prettify your home’s curb appeal - painting the shutters and sprucing the landscaping goes a long way toward attracting buyers.

Kudos, in advance, for taking the time now to prepare for your home sale in 2012!  Selling in today’s market is no easy task, and doing the heavy lifting now - before your home goes on the market and, hopefully, while you're on vacation! - will help tremendously in making things go as smoothly, and profitably, as possible.

Causes and Cures for Common Home Maintenance Problems

Many sensory clues give you early warning of home maintenance problems—if you can decode the symptoms.

Peeling exterior paint

Cause: Moisture is probably getting underneath the paint, perhaps from a leaking gutter overhead or from a steamy bathroom on the other side of the wall.

Cure: If you catch the problem right away, you might just need to address the moisture issue and then scrape off the loose paint, prime bare spots, and repaint that wall, for a total of a few hundred to a couple thousand dollars. Delay too long and the siding might rot. Patching and repainting the whole house might cost $10,000.

To prevent a chronically steamy bathroom, consider installing a new ventilation fan with a humidity-sensing switch that automatically exhausts moisture-laden air. Cost is about $250.

Flickering lights

Cause: If only a single bulb flickers, it might be loose in its socket or in need of replacement. If lights always dim when the refrigerator or other appliance turns on, the circuit might be overloaded. If groups of lights flicker, connections at the electrical panel or elsewhere might be loose, causing power to arc—or jump—over the gaps. Arcing is a serious problem; it starts fires.

Cure: Anyone can tighten a bulb. Handy homeowners can shut off circuits and tighten loose connections within switch boxes. If you’re not comfortable doing that, or if you suspect an overloaded circuit or loose connection at the panel box, call in a licensed electrician. You’ll pay $150 to $250 for a new circuit, and $500 to $700 for a new electrical panel--way less than what you’d spend to recover from a fire.

Rustling in a wall

Cause: Sure, termites usually signal their presence by building pencil-thick mud tubes up from the ground or by swarming from pinholes in floors or walls. But did you know it’s also possible to detect them by sound? Tap on a wall and then press an ear against it. See if you hear rustling that matches recordings of Formosan or other termites. A sound like crinkling cellophane could mean carpenter ants.

Cure: Call a pest-control professional. Cost is $65 to $100 for an inspection.

Loud knocking

Cause: If the knocking occurs when you turn off water, you have “water hammer,” caused when fast-moving water comes to a sudden stop and there is no air chamber (a short, specially designed piece of pipe) to cushion the shock wave. If knocking occurs when your furnace switches on or off, metal ducts are expanding or contracting as temperature changes.

Cure: If water pipes are the issue and there is an air chamber near the faucet, it may be filled with water and needs to be drained. You might be able to do this yourself. If you’re not confident of tackling that or if there is no chamber, call a plumber ($65 an hour) to add one. Those snapping ducts? Just get used to them.

A toilet tank that refills all on its own

Cause: Worn interior parts may be causing water to trickle through the toilet constantly, causing the water level in the tank to lower and eventually triggering the refill mechanism. A leaky toilet potentially wastes 1,500 gallons a month.

Cure: Untangle or loosen the chain—it may be too tight and preventing the flapper from seating fully, letting water leak out the flush valve. Or, try bending the tube connected to the float ball. If those don’t work, replace the valve and flapper inside the toilet tank (under $25 if you do it yourself, and a little more if you upgrade to a water-saving dual-flush valve).

Creaks and groans

Cause: All houses creak and groan a little as parts expand and contract with temperature fluctuations and with changes in levels of humidity.

Cure: None--it's normal for house to make a few snaps and pops. But don't ignore really loud groans when there's been an unusual amount of snow or rain, especially if your house has a flat roof. There may be an excessive or even dangerous amount of weight on your roof. If you suspect that may be the case, be prudent: Get everyone out of the house and call in a professional to check the roof.

Musty odors

Cause: Mildew, a fungus, is growing because indoor air is humid enough to allow condensation to form on cold surfaces. Basements are favorite haunts for mildew.

Cure: Keep surfaces dry by one or more strategies: increase air movement with a $20 fan, keep relative humidity below 50% in summer or 40% in winter with a $175 dehumidifier, or make surfaces warmer by adding insulation.

Rotten-egg smell when you run water

Cause: Bacteria that produce hydrogen sulfide gas (the scientific name for “rotten egg smell”) are in your plumbing, or there is a problem with your water heater. Fill a glass with hot water, step away from the sink, and take a whiff; if you detect no sulfur smell, they’re in the drain.

Cure: Disinfect the drain by pouring in a $1 bottle of 3% hydrogen peroxide solution, sold at drug stores. A sulfur smell in only hot water points to the water heater as the problem; call a plumber to disinfect the system or replace the tank’s magnesium anode. If hot and cold water both smell, call your water supplier (or health department if you have a well).

Strange-tasting tap water

Cause: Mineral content of drinking water varies, so taste does too. But if the water tastes metallic, iron or copper may be leaching from pipes. If you taste chlorine, your water supplier may have overdosed on disinfectant, or a correct level could be interacting with organic material within your plumbing system.

Cure: If chlorine seems high at all taps, or if you taste metals, call your water supplier or have your well water tested. If only one tap has water with high chlorine or if the taste goes away after you run water for a few minutes, flush your system or call a plumber.

An under-the-counter water purifier with a top-quality activated carbon filter will remove heavy metals, bacteria, and other contaminants. In addition, it removes odors and bad tastes. Expect to pay $150 to $200 for a purifier with a replaceable cartridge.

Sour milk

Cause: With today’s hyper-pasteurized dairy products, milk doesn’t sour easily. So if it or other refrigerated food spoils unusually fast, the temperature in your refrigerator could be too high.

Cure: Get an $8 refrigerator thermometer and adjust the control so on each shelf stays below 40 degrees. If you can’t achieve this, consider buying a new Energy Star-rated refrigerator. Fridges are pricey, $450 to $2,000 or more, but you’ll save energy as well as food and might qualify for rebates.

Trembling floors

Cause: If items on tables and shelve jiggle and shimmy when you walk past, or if your floor feels like it gives under your weight, the floor joists might not be sturdy enough or past remodeling might have removed a support wall.

Cure: Have a structural engineer or experienced contractor see whether you can add more joists, bolster existing ones with an additional layer of plywood subflooring, or add a post to support the floor better. You’ll pay up to $500 for a structural engineer to evaluate your problem.

Mysterious breezes

Cause: If a ground-floor room seems drafty, air may be seeping in along the foundation or through an improperly sealed window or door. A drafty attic can make things worse, as warm air currents will rise naturally and exit through any gaps in the attic, pulling colder air in through lower-level cracks.

Cure: Starting in the attic and working your way down, seal all gaps. 

Conduct a home energy audit

A do-it-yourself energy audit can teach you how to be more energy efficient and make you a more-educated consumer should you decide to hire an expert.

What you’ll save on fixes

By following up on problems, you can lower energy bills by 5% to 30% annually, according to the U.S. Department of Energy’s office of Energy Efficiency and Renewable Energy. With annual energy bills averaging $2,200, according to Energy Star, investing in fixes or energy-efficient replacement products could save you up to $660 within a year.

And self-audits can cost virtually nothing if you already own a flashlight, ladder, measuring stick, candles, eye protection, work clothes, dust mask, and a screwdriver—or roughly $150 if you're starting from scratch. As for time commitment, expect to spend two to four hours to investigate home systems, refer to utility bills, and conduct research about local norms for products, such as insulation, say experts.

Types of DIY audits

Since there are a variety of ways to conduct a do-it-yourself audit, you’ll need to know your tolerance for the tasks involved.

Some require you play home inspector, climbing into attics and crawlspaces on fact-finding missions and delving into unfinished portions of your home to look at duct work. Questionnaire-based audits rely the assumption that you can answer such questions as how many gallons of water your toilet tank holds to the R-value (thickness) of insulation in your home.

If you don’t have time to familiarize yourself with your home’s systems or confidence about diagnosing problems, are disabled, are squeamish on ladders and in crawlspaces, or are already planning to invest in a major remodel, you may benefit from hiring a pro.

Even homeowners who complete a self-audit often hire a professional to double-check their diagnoses. A self-audit may reveal drafts but not their exact source, such as ducts or insulation, for instance. Because the costs to address a draft can range from minor to major, investing in a paid audit may be justifiable.

What should you check?

All the home systems and appliances that contribute to energy costs. Here’s the breakdown of a typical home's energy usage that Energy Star references:

• Heating (29%)
• Cooling (17%)
• Water heating (14%)
• Appliances (13%)
• Lighting (12%)
• Computers and electronics (4%)
• Other (11%)

Self-audits hone in on details pros may not

While the pros use special equipment to focus on hard-to-research aspects of a home’s building envelope and indoor air circulation, DIY audits can teach you—based on the questions they ask—to identify and address the numerous small ways in which your home wastes energy.

Since lighting, electronics, and appliances collectively account for nearly 30% of the average home’s energy costs, you can make an impact on your bills by replacing old appliances with energy-efficient replacements and simple fixes—plugging appliances into power strips versus wall outlets, making sure refrigerator doors are properly sealed and don’t leak air, and opting for a programmable thermostat. 

How to spot common energy leaks

1. Check your home’s exterior envelope—the windows, doors, walls, and roof exposed to outdoor air. Hold a candle or stick of incense near windows, doors, electrical outlets, range hoods, plumbing and ceiling fixtures, attic hatches, and ceiling fans in bathrooms. When smoke blows, you’ve got a draft from a source that may need caulking, sealant, weather stripping, or insulation.

2. Check insulation R-value or thickness. Where insulation is exposed (in an attic, unfinished basement, or around ducts, water heaters, and appliances), use a ruler to measure, recommends the DOE. Compare your results against those suggested for your region via an insulation calculator.

Although examining in-wall insulation is difficult, you can remove electrical outlet covers, turn off electricity, and probe inside the wall, the DOE notes in its DIY audit guide. However, only a professional’s thermographic scan can reveal if insulation coverage is consistent within a wall. Insulation can settle or may not be uniformly installed.

3. Look for stains on insulation. These often indicate air leaks from a hole behind the insulation, such as a duct hole or crack in an exterior wall.

4. Inspect exposed ducts. They may not work efficiently if they’re dirty, have small holes, or if they pass through unfinished portions of the home and aren’t insulated. Look for obvious holes and whether intersections of duct pipe are joined correctly. Since ducts are typically made out of thin metal that easily conducts heat, uninsulated or poorly insulated ducts in unconditioned spaces can lose 10% to 30% of the energy used to heat and cool your home, says DOE.

When should a professional make repairs?

The DOE recommends calling a contractor before insulating ducts in basements or crawlspaces, as doing so will make these spaces cooler and could impact other home systems, such as water pipes. Plus, these ducts might release noxious air. DOE also recommends you hire professionals to clean ducts periodically. If you’ve noticed that some rooms get disproportionately hot or cold, bring that to a pro's attention. It could be duct related.
      
In addition, some DIY audits—like the City of Seattle’s free online audit guide, suggest hiring a pro if you suspect asbestos materials have been used in insulation or around pipes, ducts, or heating equipment. Airborne or crumbling asbestos particles are a health hazard. And a pro might be the right choice when dealing with insulation around or near electrical or examining electrical systems with bare wires.
      
A self-audit, like a paid audit, serves as a jumping-off point to help you set priorities for making your home more efficient. Whether or not you choose to make repairs yourself, one thing’s for sure: You’ll come away knowing more about your home’s strengths and weaknesses than you did before.