Heidi Engel - Re/Max - Real Estate Mt Prospect IL- Mount Prospect Illinois

Mission Statement

I promise to provide the most professional, ethical, and informed real estate services that I possibly can to my clients---Past, Present, and Future.

RE/MAX Suburban
330 E Northwest Highway
Mount Prospect, IL 60056
Phone: (847) 385-3327
Fax: (847) 259-0175
Contact Page

**JUST LISTED Mt Prospect Country Club 414 S See Gwun**

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FSBO Survival Guide

Selling a Home By Owner

Your FSBO Survival Guide

The purpose of this page is to give helpful, up-to-date, and pro-active information to home sellers in Mount Prospect IL, Arlington Heights IL, Prospect Heights IL, Des Plaines IL, Elk Grove IL, Palatine, IL--and all NorthWest Suburban IL who are planning to or currently selling their home by themselves. Unfortunately, there is a lot of misinformation on the Internet about how to sell your home yourself--FSBO (For Sale By Owner). I am providing this information as a complimentary service to sellers, with the hope that if you decide to list your property instead of selling FSBO, you will in return contact me for an interview about listing your home (Check Out "What I Do For Sellers"). Over the past 20+ years, I have helped many sellers get their homes SOLD after trying on their own as a For Sale By Owner.

Step 1: Getting the Home Show Ready

Your Home's first impression is always important--you know what they say--"You Never Get a Second Chance to Make a 1st Impression" --the same goes for your home. Getting your home into top showing condition is one of the most important things you need to do before starting to market your home.

The first thing to consider in getting your home ready to sell is the curb appeal. Make sure the home is visible so prospective buyers will have a favorable impression when they drive by the home. The next step is crucial before starting to show your home: Make your home bright, inviting, uncluttered, and SPOTLESS!

Start by packing up the clutter and items that are seldom used. Pack up excess family pictures, personal items etc. Prospective buyers need to imagine their personal items in the home NOT YOURS! Paint and clean carpets as needed, then CLEAN-CLEAN-CLEAN paying special attention to the kitchens and the bathrooms.

There are many TV programs (HGTV) on getting homes show ready. Visit area open houses to see what and what not to do. New construction model homes are a great way to see how the homes are staged for showing.

Real Estate Article: Getting Your Home Ready to Sell

"Get ready to move - start packing"

Here are some tips for you while getting your home ready to sell. After completing these, we will be ahead of the game

Inside:

Clear all unnecessary objects/dust magnets from furniture throughout the house. Keep only minimal decorative objects on the furniture, restrict to groups of 1, 3, or 5 items.
Clear all unnecessary objects from kitchen countertops. If it hasn't been used for three months...put it away�actually, showing more counter is better! Clear off the front of the refrigerator i.e.: messages, pictures, etc. (A sparse kitchen appears larger).
In the bathroom, remove all but necessary items from countertops, tubs, shower stalls, and commode tops. Keep only your most needed items. Bathrooms need to be staged too--invest in some luxurious well coordinated towels.
Rearrange or remove some furniture if necessary. Many times we have too much furniture in a room. This is great for our own living space, but when it comes to selling, we need to thin out as much as possible to make rooms appear larger.
Take down, or rearrange certain pictures or objects on walls. Patch and paint if necessary.
Check heating, air conditioning, and other systems of the house. If you're unsure of their condition, offer a home warranty on your house.
Don't worry too much about the garage now, save that job for later in the process when everything else has been finished.
Leave on lights in dark areas when you aren't going to be home. When you know there is going to be a showing, turn on all lights and lamps.
Have soft music playing for all showings.
Go thru the house room by room with a "fine tooth comb" and:

a) Paint/patch/touch up any rooms that require it.

b) Clean carpets or drapes that require it.

c) Clean windows--inside and out including sills.

d) Rearrange and thin out/neaten all closets.

e) Have I mentioned to Clean-Clean-CLEAN!!

Outside:

Go around the perimeter of the house and move all garbage cans to a discreet location, remove any/all debris etc.
Check gutters and/or roof. Make sure they are clean of debris, removing leaves from gutters. If wood condition is questionable, have a professional roofing inspector check it out.
Look at all plants...prune bushes and trees. Keep plants from blocking windows. You can't sell a house if you can't see it.
Weed all planting areas. Keep lawn freshly cut, fertilized, and watered. Remove any dead plants or shrubs.
Clear patios and decks of all small items, such as small unused planters, flower pots, charcoal, barbecues, toys, etc.
Check the exterior paint condition--especially the front door and trim. Curb appeal and the lack thereof will make or break a sale!

In general:

Try to look at your house "through the buyer's eyes" as though you've never seen before. Any time, elbow grease, or money spent on these items bring you back much more money in return, and hopefully a faster sale.

Working together, we could make a great team!

Real Estate Article: Condition Checklist

Curb Appeal		Bedrooms
__	Neatly mowed and edged Lawn	__	Make all beds
__	Shrubs trimmed	__	Clean out closets
__	Can you see the house?	__	Excess furniture removed
__	Is your front door area clean & freshly painted?	__	Children's play areas - store extra toys
__	Condition of driveway(patch &/or sealcoat as needed)	__	Keep laundry chores up daily
__	Get rid of oil stains on driveway	__	Bedspreads - use basic colors & patterns-luxury linens in master bedroom
__	Is there any peeling paint?	__	General decor - remove distracting posters, etc.
Other Exterior		Kitchen
__	Torn screens replaced/rescreened	__	Sink free of stains
__	Exterior lights clean + operating	__	Scrub and wax floors
__	Do all windows work?	__	No dripping faucets
__	Is all fencing secured?	__	Remove personal papers
__	Replace dead shrubs	__	Refrigerator/freezer cleaned + defrosted
__	Prune dead branches from trees	__	Pantry neatly arranged
__	Clean out gutters, paint if needed	__	Wash walls and cabinets
__	Windows washed inside & out	__	Appliances in working order
__	Any cracked window panes replaced	__	Magnets, etc. off refrigerator
__	Freshen up mulch in landscaping areas	__	Clear away extra appliances, etc
__	Extra vehicles - remove from curb view	__	Keep trash taken out and area deodorized
__	Pet areas - clean up, re-sod spots as needed	__	Cabinets- remove & pack extra dishes, etc.
Entry		Laundry Area
__	Doorbell operating	__	Keep it clean
__	Lights operating	__	Arrange supplies to suggest ease of use
General Interior		Decorative Ideas
__	Hinges oiled	__	Decorate patio area
__	Replace filters	__	Put new logs in fireplace
__	Paint or touch up	__	Open book on nightstand
__	Windows washed	__	Put out special towels
__	Water stains repaired + covered	__	Re-arrange furniture to show well
__	Curtains washed, ironed etc.	__	Set dining room table w/ flowers & linens
__	Carpets cleaned or replaced	__	Add scented soaps or candles in bathrooms
__	Do all light switches work? Clean all light fixtures and lamps. Replace all bulbs w/the max wattage.	__	Arrange decorative pillows or shams on bed
__	Wallpaper repaired or removed	__	Re-arrange pictures too highlight special areas
__	Repair ceiling and wall cracks	__	Large plant, wreath or new doormat at entrance.
__	Hardwood floors - clean & shine	__	Keep decorative objects on furniture restricted to groups of 1,3, or 5 items
__	Woodwork painted or touched up	__	Plug in neutral air fresheners
__	Remove extra or unhealthy plants
Living Areas		Bathrooms
__	Clean fireplace	__	Floors cleaned
__	Excess hobby supplies packed up	__	Guest towels out
__	Arrange games in play areas	__	Missing tiles replaced
__	Neatly display a project in work or hobby area	__	Leaky faucets repaired
__	Remove papers from coffee tables & end tables	__	Grouting stains removed
__	Take down decorative items that are too personalized	__	Sink, tub and shower stains removed
Garage		__	Re-grout as needed
__	Straighten up tools	__	New shower curtain
__	Make room for cars	__	All fixtures operating
__	Sweep floor, clean any grease spots
Before You Leave for a Showing(or leave for the day)
__	Make beds	__	Dishes put away
__	Open drapes and blinds	__	Double check entry way
__	Turn on a soft FM station	__	Empty wastebaskets + garbage
__	Countertops wiped down	__	Final check every room
__	Turn on lights in dark areas	__	Bathrooms cleaned +straightened up
__	Turn off TVs and loud stereos	__	If possible, get pets out of house
__	Make sure rugs are clean and straight	__	Leave feature sheets out.
__	Do a "once over"" cleaning - vacuum, sweep & dust

Step 2: Setting a Price

Setting the right price for your home is CRITICAL. Despite what some new national web sites are trying to make the public think, pricing a home to sell is an art, not a science. These websites tell you that you can instantly find out your home's value. The newest one has been known to be $10,000 to $80,000 above or below the actual home value....and some times worse. In some areas, it has no information at all. Why would anyone want to depend on these sites for pricing their most expensive possession, their home?

There are other sites that will tell you to compare your home to other homes on the market and then keep checking on them to see if the price changes. Hey, those are homes that haven't sold!

There is even one site that encourages you, a FSBO (For Sale By Owner) to take advantage of real estate professionals and have them come out and give you a free Market Analysis. Would you want someone to use your professional experience and not pay you? That's what this site is encouraging. More importantly, if you just pick up the phone and call someone, you don't have a clue about how much experience they've had in pricing homes to sell!

So how can you determine the right listing price to ask for your home? You may want to hire a local appraiser to complete a Fee Appraisal. They will check the recent sales to find a minimum of 3 homes similar and close to yours that have sold within the last 6 months. They will then compare your home to those homes and make necessary adjustments. There are also real estate professionals who know how to use the same techniques that appraisers use. But REMEMBER-- not all real estate professionals understand how to accurately value a home. Those who do know, will usually do a Market Analysis on a home that they have a chance of listing (Check Out "How Much is My Home Worth" I, myself, will prepare--FREE of Charge--a market value range of your property and email it directly to you).

Real Estate Article: Proper Pricing of Your Home

When pricing your home for sale, proper initial pricing is very important. I will show you a Right Price Analysis on your home and we will talk about the current real estate market conditions. But you may not agree...

perhaps you are thinking

BUT I need to leave plenty of room for negotiation. Although low offers do occur, prospective buyers are usually just trying to find your bottom line. All you need to do is counter-offer.

BUT I can always come down.� Often when a seller starts out high, they end up selling the home at a much lower price than they would have sold it for if it had been priced right initially. And it takes longer!

BUT we've been getting showings.� When buyers and their agents look at listings that are priced too high, they compare it against homes that are priced right and usually purchase the other home. Actually, there are always homes on the market that have been listed too high and FSBOs that have priced their home too high---this makes selling properly priced homes EASIER to sell!

BUT what about all of our improvements. I'm sure you've seen all the articles on how much various home improvements add to the value of your home. That's at best--and they depreciate over time! Adding the cost of all the improvements without adjusting for depreciation, your home can often take the price way over market value for your area/neighborhood. Even if you get your price, the home might not appraise if the sales in the area don�t support the value.

BUT I'm negotiable; they can always make an offer. Buyers know everything is negotiable, but will only look in the price range where they are comfortable and have been pre-qualified for by their lender. If the home price is out of line, the buyers will tend to think the sellers are unrealistic; Why Bother? Although they will look a little higher if nothing is available, there are usually a lot of homes on the market at any given time. In general, the higher the price, the fewer potential buyers there are.

BUT can't we try it for a few weeks? Sure, but you might miss potential prospects. Real Estate Professionals and buyers will notice your home and think; Boy, that one's overpriced they must be crazy!They'll keep that opinion for the life of the listing - even after you lower the price. Those few weeks can be fatal!

Step 3: Finding Your Target Market

Before you can start the marketing on your home, you need to figure out who the best buyer for your home would be.

The price range of your home or the size of the home may tell you who your best buyer would be. For example:

Lower price homes Target: First time buyers

Higher priced home Target: Move-up buyers

Larger homes Target: Move-up buyers

Smaller homes Target: First time buyers or empty nest buyers

Condos Target: First time buyers or retired/senior buyers

Economic conditions in your area can help you decide if your target might also be a relocating buyer.

Physical characteristics of the home might also help you determine the target buyer.

This should give you some idea of figuring out which features of your home can be converted into benefits and for which group of buyers. You'll use that information as you work on your marketing plan.

Step 4: Developing a Marketing Plan

Once you have determined your target market, it's time to develop your marketing plan. You know who your target market is and you need to determine how to find those potential buyers--ASAP.

The internet is now THE place where most buyers start their home search, so getting the information of your home on the internet is of utmost importance. Include many pictures, and if at all possible, a virtual tour or slide show of the home--be careful�don�t "give away the farm" or use unflattering pictures(we still want them to come out in person).

Buyers often scour the areas they want to live in to see if any new homes are on the market, so you need to be sure to have a visible sign in your yard. You may even want to have a flyer on the home in a "brochure box" on or near the sign.

Newspaper or print ads can be costly, but FSBOs cannot afford to miss any avenue of marketing available to them.

If you decide to hold an open house, be very careful. Make sure there is more than one adult in the home and have the children in the family somewhere else. No amount of money from your home sale is worth risking your personal safety. Be careful.

Step 5: Disclosures

The days of "buyers beware" are long gone. To avoid problems later, you should disclose everything you know about your home. Here are some of the disclosures you need to think about:

Environmental Hazards:

Lead based paint(If your home was built before 1978, Federal laws state that you need to give your buyers a booklet about lead based paint and disclose what you know about the presence of lead based paint in the home and about any inspections that have been done for the presence of lead based paint.

Mold, Asbestos, Radon, or other chemical wastes, Abandoned oil wells on property, as well as any other environmental issues you might know about.

Defects in the Home:

This would include the roof (and how old it is), the structure, the electrical and plumbing systems, the heating and cooling systems and other defects you may be aware of.

Zoning and Survey Issues:

Is the zoning proper for the use of the property. Are there any problems that might show up on a survey? (encroachments, easements, etc.)

Flood History

Has the home ever been flooded either by natural flooding, plumbing leaks or sewer back ups?

This is not a comprehensive list of things you should disclose to a potential buyer, but rather a list to get you started thinking about things you know about the home.

Step 6 of Selling a Home: Fielding Calls From Prospective Buyers

Once you have started marketing your home, you should start getting calls from prospective buyers. Handling these calls properly could be the difference in whether or not the prospect will come out to look at your home.

When buyer prospects are calling off of ads or signs, they are seeking to eliminate homes that don't meet their criteria. That's why it's important to answer their questions, ask them questions.....but to never try to "sell" them the home. That will send them "running"!

Over the years, I've discovered that buyers who are afraid they won't qualify for a loan will call a By Owner Seller rather than call a real estate company. You'll know it's "one of them" when they ask if you will do financing. Just a word of warning.

Step 7: Showing Your Home

A buyer prospect is on the way to your home. Show time! So what do you do now? See the article below-- Of course, there's a little bit in the article that doesn't apply to owners selling their own home.....like being gone when the home is being shown. But remember that is the best way for buyers to see a home...without the seller present. Therefore, you need to stay out of the way as much as possible.

You should also have a feature sheet prepared for prospective buyers who look at your home. Very few buyers are ready to buy as soon as they see a home, they need to take the time to think and make their decisions....and your feature sheet will help them remember your home.

Real Estate Article: When Your Home Is Being Shown

It is very important to keep your home spotless so when buyers visit they will be favorable impressed. If you take the following steps you can make your home more appealing and increase the likelihood that it will sell quickly, and for the best possible price.

Steps to Take Now:

Keep lawn neatly trimmed.
Clean all windows.
Clean all light fixtures.
Paint or clean entry porch and front door.
Replace all light bulbs with the max wattage.
Tidy up closets. If possible, clean out your closets and store as many items as you can someplace else.
Eliminate clutter from countertops, bookcases, and all floor areas.
If you have pets, confine them when potential buyers visit�I am an absolute pet lover�unfortunately, there are many people who are not, and people who are, will be distracted from the house.
Fix any leaky faucets or defective electrical switches.
Give your home an IN-DEPTH cleaning.

Steps to Take When Your Home is about to be Shown:

Turn all the lights on, even if it's day time.
Open all drapes/window treatments
Tidy up the kitchen and bathrooms.
Freshen up any cat litter box, or better yet, hide it.
Keep the house temperature comfortable�WARM in Winter�COOL in summer
Put money and valuables out of sight.
Try to leave the house during the visit. Buyers will be more comfortable if the owner isn't present-ALWAYS!
If you can't arrange for your children to go someplace else, keep them occupied in one room.
Let the sales associate show your house. Do not follow them around your house or talk to them about your home.

Pet Notes: Although (I ADORE Pets) and you love your dog or cat and they are part of the family, they can affect your sale. If Sales Associates can't show the house on lock box on a moment's notice, they can't sell it. We need to put a system in place, not only for the ease of showings, but EVEN more importantly, the SAFTEY of our furry family members! Remember, some Sales Associates and buyers may be afraid of dogs and cats--or allergic and some are offended by pet odors - GET RID OF ALL ODORS.

Smoking If you smoke, your home probably has odors. Clean carpets, drapes, bedding etc. possibly your ductwork also. Once it is odor free TRY to keep it that way!

Valuables Don't leave valuable items out where a buyer or their children might be tempted. You may want to use a safty deposit box for valuable items or at least take them out of the house. Agents try to watch what is going on, but I would be rather Safe than Sorry.

To Leave or Stay If at all possible be gone when your home is being shown. If you have special things you want potential buyers to notice, make sure they are mentioned in your "feature sheets." If you stay in the house, you might make a simple mistake that would jeopardize your position during negotiation - or maybe even prevent a sale!

Step 8: Contract Issues

Here are some of the contract related issues you need to consider:

Earnest Money: The amount of earnest money is different in each sale and circumstance. Many people think that it's always better to have more in case the sale falls though, but in reality, they are many reasons that a buyer would get the earnest money returned if the sale falls through (for example, inspection problems you refuse to correct, inability of the buyer to get a loan, etc.). If you demand too high of an earnest money deposit, you may lose a buyer who is less liquid but may be well qualified!

Sales Price: What you will accept for a sale price is a very personal decision/choice. Make sure that you have considered all the expenses you will have incurred before agreeing to a final price. If the buyer offers lower than you were anticipating, don't let your emotions blow the sale. Remember, everyone wants to negotiate so they can get the best "deal" possible. Keep negotiating!

Financing: Make sure that all the terms of the buyer's financing are in the contract. For example, if the buyer asked you early in the process if you would pay closing costs for them and then doesn't write it in the contract, they may not have realized it had to be in writing. If you accept the contract without it...and later they don't have enough money to pay their closing costs you'll have a problem. Either they won't be able to close the sale...or they will demand that you pay their closing costs since they already talked to you about it and thought you were going to pay for them. You should also have a reasonable loan commitment date in the contract.

Personal Property: Both parties need to come to an agreement about what personal property stays in the house and what's not. This needs to be on the contract to prevent misunderstandings--a bill of sale will be given at closing for personal property.

Closing Date: The closing date needs to provide enough time for the loan processing, appraisal, survey and title work to be done.

Possession Date: The possession date is normally the day of closing or the day after closing. If you decide to let the buyer move in early or you retain possession after closing (rent back), liability, insurance and financial issues relating to the pre or post possession need to be put in writing.

Taxes: Taxes are pro-rated at closing. You will pay the buyer at closing for every day that you have owned the house and that the taxes have not been paid�remember we pay taxes in arrears. The buyer or their lender will then pay the taxes at the end of the year.

Inspections: Any inspections the buyer chooses to have done on the home need to be addressed in the contract, as well as the deadline for any requests to be made. The contract should also address what happens if the buyer decides there is too much work to be done on the home....or if you refuse to make any repairs.

Contingencies: There are many different contingencies in a standard real estate sales contract. Inspections, title work, financing....they are all contingencies. But the contingency that concerns most people is the contingency on the buyers current home selling and/or closing. Be very cautious with that type of contingency.

Step 9: Handling Inspections

Most buyers most likely will want to have professional inspections completed to make sure they don't buy a home with any major surprises. Don't let the surprise be on you.

Here are some typical inspections:

Building Inspection/Whole Inspections/Systems Inspections/Structural Inspections The basic home inspection.

Wood Destroying Organism Inspection Normally referred to as a "Termite Inspection", this inspection covers any insect (termites, carpenter ants, etc.) or organism (ie, wet rot, dry rot, fungus, etc) that can destroy wood in a home.

Environmental Inspections

Well Water, Septic and Sewer InspectionsThis is not a comprehensive list because each home and situation is different! To avoid surprises, sellers may want to have some inspections done before they start to sell their home so they can make repairs BEFORE a contract is written.

Step 10: Financing for Your Buyer

Most buyers will have to get a loan. Having a basic understanding of financing will help you talk with your buyer prospects. There are many different kind of loans available for buyers today. It used to be quite simple: VA (Veteran's Administration), FHA (Federal Housing Administration) and Conventional loans with 10% down, 20% down or more. Conventional loans have morphed greatly. In the 1980's 5% down loans appeared and then in the 1990's 3% down loans were introduced. Those were followed with 0% down Conventional loans...with less fees required than 0% down VA loans. Buyer's with excellent credit can even get a loan for their purchase price AND closing costs.

Buyers with very good credit...and some with even less than perfect credit can get the same "deal" if a seller will agree to pay the buyer's closing costs. Yes, you saw that right. Buyers with less than perfect credit can get a 0% down loan with the seller's paying their closing costs. The buyer gets a first for 80% of the purchase price and a second for the 20% "down payment". Sure that sounds like something is wrong, but most of these are done with the same lender giving both loans, so nothing is hidden from the lender. REMEMBER: Our mortgage industry at this point in time, have been becoming increasingly tough on some loans�if you are alive and breathing, I am sure you have heard!

When you are working with a buyer for your home, make sure they have at least a Pre-Qualification letter, if not a full Pre-Approval letter from their lender. Make sure the lender gives you the terms of the loan so your contact will reflect the loan the buyer is getting.

Step 11: Problems Along The Way

No matter how much work you do earlier, you will most likely encounter some problems along the way. If not handled property, your sale could fall through.

I would love to give you a complete list of the problems that can happen, but it is impossible to do! Those of us in the industry know that new problems happen all the time, but the key is being able to understand exactly what the problem is and be savvy enough to solve it.

This is the hardest part of selling a home. It's relatively easy to find a buyer (if the house is priced right and in great showing condition), but the hard part is keeping the sale together until closing. I have read that about 50% of the FSBO sales fall apart before closing. Both parties get emotional-after all, it's their own property or their own dream home at stake. Real Estate professionals add the extra layer of cushion to help prevent emotions from clouding the real issues so a solution can be found. That's why real estate professionals have a MUCH smaller percentage of their sales fall through before closing. If we had 50% fall apart we wouldn't or SHOULDN�T be in this career!

Step 12: Closing

Closing should be relatively uneventful--let your real estate attorney handle anything that arises. Your home is sold and you get your equity. But it takes some work to make it happen.

Before a closing can take place, many things have to be taken care of. Here are just a few items needed to be completed:

Appraisal must be ordered and completed and the home MUST appraise out.

The loan has to be approved and funded.

The title work has to be done and your real estate attorney has to read/interpret the title and issue a title opinion. Then any title problems have to be resolved before a Title Insurance Policy can be issued.

The buyer has to arrange for homeowner's insurance.

A survey needs to be ordered and completed.

All of the taxes have to be checked. Unpaid taxes have to be paid and the taxes for the current year have to be prorated.

Once all of that is done, the closing company should give you a copy of the Closing or Settlement Statement (often the HUD-1 form is used) at least 24 hours before the closing, as the law requires. Unfortunately, if it's a "rush closing", that doesn't always happen. No matter when you get the statement, you and your real estate attorney should both review it for accuracy.

Then it's finally time for closing and possession!

Congratulations!