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There is a lot of advise given on buying a house, but when it comes to selling the advise is few and far between. But selling an asset is as important as buying one and should be done after careful preparation and consideration. In fact preparation and timing can help you get the best price.

When you decide to sell a property, the first thing to do is investigate the local housing market. Consult the large real estate brokers, websites etc. to see how similar homes are priced in your neighbourhood. Many newspapers also list the selling prices and asking prices of recent sales, check out how long the homes were on the market. Also note the prices for your neighbourhood during the last couple of months or so. And check how sales were running, say, a year ago, so you get an idea of whether the market is heating up, cooling down, or staying put. This exercise should give you a sense of what your home is worth.

When deciding to work through an agent, ask for referrals from friends or check the Net and local newspapers for advertisements. Don't simply accept any recommendation. Make an appointment with an agent and interview him or her for the job. You want to be sure he or she is experienced at selling homes like yours, in your area, and is willing to go out and market your home to prospective buyers. Ask to see advertisements the agent has placed on the Net and in print. Evaluate the person as though you were a buyer: Is he or she attractive and personable and confidence inspiring? Does he say the right things to make you want to see the home? Also, since the agent will likely be able to advise you on a selling price, how well does his or her price jibe with the homework you did on your own? Don't be fooled by an agent who is merely flattering you with an inflated price. Go by what you already know about your home and the current housing market.

Once you find an agent you like, you have to formally sign an agreement. This is like a contract, laying out the specifics of your arrangement, including how long you will let the agent represent your home and what the compensation will be. Many agents prefer an exclusive listing, meaning you agree to pay a commission regardless of whether the agent is actually responsible for finding the seller. You should commit for no longer than three months (one month, in a hot market). In case you find the agent lacking in enthusiasm, you don't want to be locked into a bad situation.

Also, consider negotiating the commission. If your house is expensive, an agent might not flinch at a lower commission. Conversely, if you know it's a buyer's market, consider offering the incentive of a higher commission if the agent can land you a sale within five percent of your asking price.

Settle on an asking price. In doing so, forget what you originally paid for the house, how much you've spent on renovations or remodeling, and even how much money you need to move on to your next home. When it comes to pricing your property, the only yardstick that matters is what comparable homes are selling for in your neighborhood now -- which may be more, or less, than you sank into it. Your research (see above) will already have given you a good idea of how the market is going. Your agent can also dig up comparable sales, and discuss key elements that make the homes similar to yours. If you're in a seller'smarket, with homes moving in a week or two, think about adding a premium to the asking price.

But be careful: The critical selling time is within the first month after your home hits the market. If the price is too high, you'll turn off potential buyers and agents and then have a hard time attracting them back, even if you lower your sights later. When you receive a bid, consult your agent to figure out how to respond. If it's within five percent of your asking price, then counteroffer two or three percent less than you're asking and tell the prospective buyer that if that's acceptable, you have a deal. However, if the bid comes in at a discount of 10 percent or even more, then decide with your agent if you will entertain the bid or deny it and move on. You can also throw in furnishings or appliances to make your price more palatable.

Make sure your lawyer reviews the contingency clauses included with the bid. Do not agree to a clause that states that the deal goes through only if the buyer is able to sell his own home. Also make sure that all the buyer's contingencies are restricted within specific amounts of time. For instance, if the deal is contingent upon the home passing an inspection, then the inspection must occur within a week to 10 days of an accepted bid.

Check out the tax angle with your tax consultant , so that you can save on capital gains tax through the appropiate investments.

In case you have done all these preparations then don’t be surprised if on the day of the actual sale you just have to show up with the keys.

Aru Srivastava

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