Mary Stephens

Sellers should know about the health risks associated with radon, a naturally occurring gas you can't see, smell or taste. Radon can be found anywhere, and the Surgeon General has issued the following Health Advisory: "Indoor radon gas is the second leading cause of lung cancer in the United States and breathing it over prolonged periods can present a significant health risk... It's important to know that this threat is completely preventable. Radon can be detected with a simple test and fixed through well-established venting techniques."

Radon trapped in soil typically enters indoor air through cracks or holes in the foundation, or through well water. Local geology, construction materials and how the house was built are all factors that affect radon levels, which can vary widely in the same neighborhood. The EPA suggests mitigation when the indoor level is 4 pCi/L (picoCuries per Liter) or more. Because of rock formations prevalent in the area, Henderson, Buncombe and Transylvania Counties are rated Zone 1 (red zones) with a predicted average indoor radon screening level greater than 4 pCi/L.

Consider having your house tested by a qualified individual or company before putting it on the market. If you don't test, it's likely the buyer will. Have the test done in the lowest level of the house that could be used regularly. If an unacceptable level of radon is found, it can be reduced by installing a simple venting system. The right system depends upon the design of your house and other factors, and must conform to EPA requirements. There is a potential conflict of interest if the same person or firm performs the testing and installs the mitigation system. Obtain more than one estimate, and after the mitigation is done, have your house re-tested by an independent qualified radon specialist.

Answers to your questions about radon can be found in a publication from the EPA, "Home Buyer's and Seller's Guide to Radon" (EPA 402/K-09/002). You also can visit the EPA website for more information: http://www.epa.gov/radon.

Smart Selling Tip:

Because of local rock formations, radon issues are a fact of life in our area. Before putting your house on the market, consider having it tested by a qualified individual or company and install a mitigation system, when needed. If you don't test, the buyer likely will. Use a clean radon report as a marketing and negotiating tool.

©2009 Sandy LeRoy and Mary Stephens

Smart Selling is a collaboration by two local businesswomen whose work is directly connected with the real estate industry: Mary Stephens of Prudential Lifestyle Realty (ronstephensproperties.com) and Sandy LeRoy of Sterling Property Services (sterlingpropertyservice.com). Questions and comments invited.

More and more sellers are choosing to get a home inspection before listing their house as a competitive tool and to help ensure that that the selling process goes more smoothly, with fewer surprises. This is by no means a complete list, but a typical home inspection includes an evaluation of the site, the exterior, the interior, the systems such as HVAC, electrical and plumbing and the building components. A home inspection does not include radon, septic system, termites, wells, mold or water quality issues, which must be evaluated by specialists. If you have concerns about any of these matters, rest assured the buyer's inspector will find the problem. It's smart selling to identify the problem yourself.

One of the major benefits of a seller's home inspection is that it provides an unbiased third-party report on the condition of the house. Other benefits include:

•§ Improves your ability to set a more accurate listing price reflecting the true condition of the house.

•§ Justifies a higher listing price if the house is in superb condition.

•§ Creates a powerful marketing tool that makes your house stand out from the competition and increases buyer confidence from the outset.

•§ Gives you the choice of making repairs or selling "as is".

•§ Controls the cost and timeframe for making repairs.

•§ Demonstrates your good faith by publishing the report.

•§ Prevents the buyer from using inflated costs as a negotiating tool.

•§ Streamlines the negotiation process.

•§ Prevents closings from being delayed or deals from falling through when the buyer's inspector finds a problem.

•§ Demonstrates your due diligence in completing the mandatory disclosure forms.

•§ Helps the buyer make a faster, better informed decision about your house, with less likelihood of buyer's remorse.

•§ Prevents small details from disrupting or derailing otherwise smooth negotiations.

•§ Allows you the opportunity to make corrections in the inspection if needed, and attach invoices for completed repairs.

The cost of a home inspection is based on the age and square footage of the house, but generally is between $300 and $400. If you have any suspicions or concerns, a seller's inspection and specialty inspections worth considering. The confidence and peace of mind they can provide is priceless.

Smart Selling Tip:

Even if the house is in superb condition and has been diligently maintained, smart sellers consider the benefits of a seller's home inspection as a competitive and negotiating tool.

It can be a strategic error to insist on setting an unreasonably high initial listing price, thinking you'll have room for a reduction if there are no takers, or if repair issues arise. You risk getting no offers or taking longer to sell, due to stiff competition from more determined sellers. A prospective buyer's agent will review the listing history of your house showing the number of days on the market and any price reductions. The history could lead them to expect that further reductions can be negotiated.

Setting an initial listing price isn't an exact science. Your agent will strive to balance your hopes with a dash of reality by researching similar homes in the area that have sold in the past six months to a year, or are currently on the market, and use the data to prepare a Comparative Market Analysis. The CMA compares the selling price and features of similar houses to the features of your house, such as its location, size, age, upgrades and condition. Your agent may suggest obtaining a formal appraisal to make it more likely that your house will qualify for a mortgage, if required. Consider the assessed tax value, but remember that the last assessment may have been done under different market conditions, and may not be accurate today. You and your agent should weigh the CMA, the appraised value and the assessed tax value to arrive at a realistic initial listing price that also reflects your goals and selling timeframe and your agent's analysis of market trends.

You can influence the selling price of your house by properly preparing it for market and choosing the right initial listing price. Your agent can influence it with a sound marketing plan and negotiating skill, but the current market determines the final selling price, and conditions change. The important thing is to begin with the right price and make the most of every opportunity, because the greatest interest in your house is during the first 30 days on the market.

Smart Selling Tip: A smart seller doesn't insist on an unreasonably high initial listing price. He and his agent weigh the values in a CMA, the appraised value and the assessed tax value of the house to suggest a range of listing prices. Working together the seller and agent can have a positive influence, but the final selling price is determined by the market.

©2009 Mary Stephens and Sandy LeRoy

Smart Selling is a collaboration by two local businesswomen whose work is directly connected with the real estate industry: Mary Stephens of Prudential Lifestyle Realty (ronstephensproperties.com and Sandy LeRoy of Sterling Property Services (sterlingpropertyservice.com). Questions and comments invited.

Smart selling requires that you prepare your house for market by evaluating its physical condition, including systems such as plumbing, heating and electrical, and components such as the foundation, roof, doors and windows, floors, fixtures and finishes. The time to begin the evaluation depends on how soon you want or need to sell. If you know the house has been well maintained, less time is needed. In most cases, allow thirty to sixty days before listing.

Today most buyers demand that a house be in move-in condition, meaning that it's structurally sound, in good general repair with no obvious signs of deferred maintenance, and meticulously clean, attractive and inviting. If your house doesn't look ready to occupy, buyers will quickly move on, knowing they have many options. Don't expect that you can skip doing the work, put the house on the market and offer a price reduction or repair allowance. Buyers will have difficulty picturing how the house might look with new carpet or neutral paint colors, so you risk taking an even longer time to sell, getting no offers, or eventually getting an offer that is far lower than you anticipate. That's a waste of money, time and effort. Keep in mind that you're competing against new construction in pristine condition, often with buying incentives from the builder, well-maintained, existing homes and homes in foreclosure selling at a greatly reduced price.

You're probably already aware of some necessary repairs and other chores to address. Create a list of things to do, and decide if you can manage them yourself, or if you need help. Get estimates, develop a budget and proceed according to your selling timeframe. Consider getting a seller's home inspection if you suspect any serious problems, because known defects must be disclosed. Correcting them at this stage will cost you less in the long run because the buyer's repair estimate or demanded price reduction will always be more than if you had done the work before listing. Even minor disrepair can make a buyer worry that there are larger problems, so be thorough. Cosmetic preparations are equally important, and we will discuss them next time.

Smart Selling Tip: Before listing your house for sale, evaluate its condition and make any needed repairs. Don't plan to lower the price and skip doing the work because it will cost you time and money.

©2009 Sandy LeRoy and Mary Stephens

Smart Selling is collaboration by two local businesswomen whose work is directly connected with the real estate industry: Mary Stephens of Prudential Lifestyle Realty (mary@ronstephensproperties.com) and Sandy LeRoy of Sterling Property Services (sandy@sterlingpropertyservice.com). Thanks to Lue Kirchner for her insights on this topic. Questions and comments invited.

Taking the right steps in the right order is how you get the best results when selling your house, but it doesn't always happen that way. Instead, here's how it often goes: You decide to sell and call a real estate agent who looks at the house and makes a few basic recommendations on getting it ready. Then the agent compares similar houses in the area and proposes a marketing plan and listing price. Once you sign the listing agreement, North Carolina law requires that your house go on the Multiple Listing Service (MLS) within three days, allowing very little time to be certain it looks its best. Pictures are taken anyway and the listing is published on MLS, the internet and in the newspaper. What's wrong with doing things in this order? Isn't it the way everybody sells their house?

The traditional sequence of steps works against smart selling in several ways. Real estate agents can only price and market your house as it exists, not as it could be, and their impressions can negatively affect the recommended listing price. They're experts in real estate marketing and negotiations, but many agents are not necessarily specialists in applying design principles to the preparation of a house for sale. As a result they don't always know what to suggest. There are diplomatic issues, too. Your agent may feel reluctant to be candid about potentially sensitive topics like cleanliness, odors, or work they feel is needed, so they spare your feelings, protect the relationship with you and say little or nothing about these problems. It's understandable, but as a result, your house often isn't presented in its best light, so you risk a longer selling time and a smaller profit. In today's market that's a major misstep.

We recommend a different sequence of events. Begin by educating yourself about the local market and the competition you can expect. Then evaluate your house in terms of repairs and cosmetic issues and enlist the help of objective professionals such as a home inspector and a stager, before calling your agent. These specialists are trained to give you the candid, objective assessment and guidance you need. Their goal is to help you, so listen to their recommendations with an open mind.

Smart Selling Tip: By taking the right steps in the right order, properly preparing your house and pricing it correctly, you can increase profit potential and decrease time on the market.

Smart Selling is a collaboration by two local businesswomen whose work is directly connected with the real estate industry Sandy LeRoy of Sterling Property Services (sterlingpropertyservice.com) and Mary Stephens of Prudential Lifestyle Realty (ronstephensproperties.com). Special thanks to Lue Kirchner of Key Associates. Questions and comments invited.