Author's Note
(My Story Is Your Story)

Back in 1988 I, too, was a homebuyer. All I wanted was an agent who was truly on my side. But few companies back then offered buyer's agent services and my agent's "help" almost cost me $5,000. I was lucky I found out in time and, being a lawyer, I forced the parties to renegotiate the purchase. Many others aren't so lucky.

So in 1989 I started Buyer'$ Agent-USA^®, offering other homebuyers someone on their side, a buyer's agent, nearly a decade before other firms "discovered" this idea. We have helped hundreds buy a home and they loved our 100% loyalty and protection as true buyer's agents.

Over the years more and more past clients wanted to sell their homes and buy others. They wanted the same level of loyalty, protection and 100% honesty they had received from us as buyer's agents when they were selling too. By now big firms had shifted to offering dual agency, a watered down form of loyalty where the agent really doesn't represent buyer or seller completely.

Our clients wanted a true buyer's agent when buying, a true seller's agent when selling, and wanted help coordinating the two transactions. So, to give clients what I would want if I were buying and selling at the same time, we formed Providence^® Real Estate to practice single agency. When you buy we act as your buyer's agent, and when you sell we act as your seller's agent. We don't offer "dual agency."

Providence^® is "small" by choice. Our stubborn insistence on 100% loyalty to our clients limits our size. The bigger the firm, the greater the conflicts of interest (between clients), and the more compromises they will be tempted to make.

We would prefer to be 100% loyal to a few clients at a time, rather than try to serve the (often competing) interests of thousands of clients. If you are the type of person who prefers quality over size, Providence^® is the kind of company you're looking for.

Not A Numbers Game!
Most agents and firms treat real estate as a "numbers game." Agents either spend thousands on self-promotional ads (creating "celebrity" agent status), or spend half their working hours cold-calling strangers in search of more clients, or both. All this effort to constantly attract new business often takes away from their time to serve current clients.

At Providence^® we prefer to give top level service to each individual client and, in exchange, ask that you refer to us your friends and relatives who are buying or selling a home. We take care of our current clients, because they bring us our future clients!

Putting You, The Client, First
Even before you are a client we offer some of the best "pre-market" information available anywhere in the country (including this guide). During your transaction(s) we provide you with timely information, expert advice, and 100% loyalty guaranteed in writing. Even years after your transaction(s) we stay in touch with our Client Appreciation Program, including regular mailings of useful information and discounts with area businesses.

If you've bought or sold real estate before, you may not have experienced this kind of service. Perhaps your agent didn't really "prepare" you before your sale. Perhaps he or she was "too busy" for you during the sale (cold calling other "prospects", etc.). Perhaps your agent just "disappeared" after the sale and you haven't heard from them since. (Heck, they got their paycheck, they figure they're done!). Perhaps, then, you'd like to experience the Providence^® difference!

A "Cult" Of Raving Fans
At Providence^® our clients love our way of doing business so much that they are now our primary source of business. The odds are that you are holding this guide in your hands as the result of a referral from one of our past clients. True, are clients are not quite as psycho as the "Parrotheads" that follow Jimmy Buffet, for example, nor do they wear orange robes in airports. But, they are enthusiastic about the Providence^® way of buying and selling, and heartily refer us to their family and friends. Other firms are like McDonalds, with "billions served" as the slogan, while Providence^® is that quality restaurant that grows by word-of-mouth. Whether you came to us by personnel referral or other means, we are eager to turn you into yet another raving fan.

If you'd like to be treated like a number -- there are plenty of real estate companies to choose from. In fact, just wait -- one will probably cold call you real soon.

If you prefer quality over quantity; if you want an agent who will be loyal to you no matter what; if you'd like information before the sale, service during the sale, and contact after the sale, then then Providence^® Real Estate is the company for you. I try to live by the golden rule; Do unto others as you would have them do unto you. I designed this company to be what I would want as a buyer or seller -- in other words, I designed this company for you.

When considering a huge investment, like your home, consider this quote from John Ruskin.

"It is unwise to pay too much, but it is worse to pay too little. When you pay too much, you lose a little money -- and that is all. When you pay too little, you sometimes lose everything, because the thing you bought is incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot -- it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better.

"There is hardly anything in the world that someone can't make a little worse and sell a little cheaper -- and people who consider price alone are this man's lawful prey." John Ruskin (1819 -- 1900).

Harvey Mackay, 20^th and 21^st century businessman and best selling author of How To Swim With The Sharks Without Getting Eaten Alive, put it more succinctly:

"Good advice is never cheap. Cheap advice is never good."

At Providence^® Real Estate, we agree, especially when it comes to such an important investment as your home. Few people are ever sorry for owning "too nice" a home in "too nice" a neighborhood. But, every year many will make the mistake of "saving" a bit on price, only to regret buying too poor a quality (or size) of home, in too poor a quality neighborhood.

The quality rule applies even more to buying services. A "cheap" home inspector can actually "cost" you much more than you could possibly save on fees. The same is true of your lender, your title company and your Realtor^®. With such a huge investment you can't afford "cheap" services.

If you plan to buy a home without selling one, there are plenty of things to coordinate. If you plan to both buy a home and sell another, the number of "moving parts" and complexity may be fourfold. Making both transactions "fit" together as a seamless whole takes considerable planning. A lot of folks may offer you advice on a part of the puzzle -- but few help you coordinate and plan your overall strategy.

Agents tend to focus on the sale of your current home, particularly by offering a free "CMA" or Comparative Market Analysis. Lenders tend to focus on your purchase, particularly your loan. Consumer books tend to offer advice for either buying or selling, rarely for both. Finally, once word is out that you're thinking of moving, every friend and relative within 500 miles will offer free "advice."

It's like putting together a one thousand piece puzzle. The first thing you need is the box lid with the whole picture on the cover, then you can begin to fit the pieces together.

Loan Pre-Qualification. If you do buy a home you will ultimately want to get a full loan pre-approval (see section XXX). However, at the initial stage a quick loan pre-qualification may be all you need. You simply contact a quality Maryland lender (we can recommend), spend 20 minutes or less answering a few simple questions over the phone, and within an hour the lender should be able to issue a loan pre-qualification. This will tell you (a) how much of a mortgage you can afford, and (b) what the monthly investment will be for that mortgage.

Sale Pre-Qualification. This is basically a quick, "over the phone" Comparative Market Analysis. You call Providence^® Real Estate and spend less than 15 minutes answering a few simple questions about your home (number of bedrooms, amount of your current mortgage, what is the home's general condition, etc.).

Based upon your brief phone call we can do a cursory computer analysis and can issue a market valuation that will be accurate within about 5-8% of the home's value most of the time. A more detailed and accurate market valuation is available under Level 2, but the sale pre-qualification will give you a rough sketch of your likely net cash proceeds from a sale.

Quick Purchase Evaluation. This step is designed to give you a quick "cost/benefit" analysis of your target home. First you determine the "benefits" that you most want to get out of a move to a new home: better school district; more room; larger lot, etc. Second you determine what it will "cost" to get these features. We can suggest two methods to do a quick purchase evaluation -- by yourself or by contacting Providence^® Real Estate and requesting a "just curious" list of homes for sale.

Either as an alternative or in addition to a do-it-yourself online search, you can contact Providence^® Real Estate and request a "just curious" list of homes. This is a search that we perform and then forward the results to you (by mail or email -- your preference). "just curious" list of homes offers the advantage of giving you more information about each home than is available online and allows us to offer advice and suggestions about your home search. (For example -- "if you lower acreage to 0.5+ you will get twice as many homes" or "this other neighborhood is similar but homes there cost an average of 12% less").

Level 1 Conclusion: Red Light, Yellow Light, or Green Light? The purpose of Level 1 scrutiny is simply to give you the "picture" from the puzzle box lid, an overall sense of whether or not your proposed purchase and sale make sense. If all lights are "green", you move on to Level 2. If you have one or more "red" lights, it may be time to stop and reconsider. For example, if the neighborhood you want costs $700,000, but you thought it would cost only $450,000, are you willing to pay more, or settle for another neighborhood, or should you simply stay where you are?

There is another benefit of Level 1 review. Even if it reveals that your proposed plan is possible, you may learn of some cautionary "yellow" lights early on. For example, if you need $50,000 of sale proceeds but it appears you may only net $40,000, knowing this early on can help you search for alternatives. For example, you could consider alternative sources of funds or maybe do an extra good job of "sprucing up" the home to sell for absolute top dollar.

CMA-Plus. Before you make a final commitment to the process you want and need a more precise Comparative Market Analysis (CMA) of your home's value, plus a "spruce up" checklist to get your home in top shape.

Many agents try to save themselves time and do a "blind" CMA. Similar to our Pre-Sale Qualification, they may simple interview the seller on the phone, do quick computer research of sales in the area, determine a price (without ever having seen the home) and then come to the seller's house trying to "list" the home for sale. That's crazy. No one is that good -- to accurately determine a home's price before they have actually seen it!

At Providence^® Real Estate we believe an accurate, well-grounded CMA requires an agent to do preliminary research, then actually inspect the home, and then go back and finalize the research and create an analysis based upon what they actually observed about the house. Further, if the home is unique, a well-grounded CMA may also require actual inspection of similar homes to better gauge the uniqueness. Only after such personal inspection and later analysis can any agent reasonably approach a seller with a target asking price.

The "plus" part of a CMA-Plus is a Clean-N-Fix checklist. While at the home during the first visit the inspecting agent will create a punch-list of needed repairs, improvements, things to clean, etc. Items should be ranked in order of priority (1 = must do, 2 = very desirable to do, 3 = "special touches") so that you know how much emphasis to give to each item.

Marketing Plan. After you and your agent have agreed upon a market price for your home, it is also good to agree on a marketing plan. Some types of marketing tends to attract large quantities of "visitors" that are primarily mere "lookers" or casual "buyers." Other types of marketing tend to attract lower numbers but a higher quality of visitors -- motivated, pre-approved and enthusiastic buyers. The marketing plan that you and your agent agree upon should take into account which type of "prospect" you hope to attract. (See Chapter 10 for more information about marketing).

Loan Pre-Approval. At Level 2 you want to go from mere loan pre-qualification to loan pre-approval. Depending upon your lender, this may require just a bit of extra time from you beyond your initial 20-minute phone call with your lender. You likely will need to provide some written documentation (pay stubs or tax returns for self-employed; bank statements; etc.) to your lender, as well as answer any specific questions that may come up from your credit report.

A loan pre-approval is beneficial not only to give you assurance that you are financially prepared for the purchase, but also gives the seller of the home that you buy considerable assurance about you and your offer. (See Chapter 3 for more about loan pre-approval).

Home Buyer Consultation. This takes the Level 1 Quick Purchase Evaluation to a much deeper level. For our clients who are both buying and selling a home, the Home Buyer Consultation will include a review of the purchase process, sale process, and how the two transactions can be woven together to your benefit. For clients who are only buying a home, the Home Buyer Consultation focuses only on aspects related to your purchase.

Occasionally a homebuyer will be uncertain as to whether or not the homes they can afford will be "nice enough" by merely viewing information online. If this is the case with you, don't worry. A part of your initial process with a Providence^® agent can be to take a preliminary tour of a few homes to help you make certain whether or not you even want to buy at this time.

Our goal is to make sure that you have a solid understanding of all the factors that will affect your purchase and/or sale, and that all your questions about the process are answered, before you make any commitments or investment. (See Chapter 5 for more about Home Buyer Consultations).

Buy/Sell Strategy. The loan pre-approval and Home Buyer Consultation affect the buying side, while the CMA-Plus and marketing plan affect the selling side. But, how do the two transactions fit together? No matter what type of market you are in, a "fast/seller's" market or a "slow/buyer's" market, the most important element of your planning may involve how you "fit" the two transactions together.

If you "buy first" you risk having to carry two mortgages at the same time, or possibly not being able to get your equity out of your present home in time to close your new home purchase. If you "sell first" you risk not having a place to move to and becoming "homeless," or risk missing the home you really wanted.

Before you list your home for sale or contract to buy the next one, be sure that your agent has reviewed all options and alternatives available with you, and that you both agree upon an overall strategy for your specific situation that you are comfortable with. (See Chapter 14 for more about buy/sell strategies).

Execution of your 360° Buy/Sell Plan will include the Perfect Home Search (Chapter 5)), marketing your current home and Finding The Right Buyer (Chapter 10), Coordinating Two Transactions (Chapter 14), as well as many of the other tips in this guide concerning contract pitfalls, home inspections, and more.

Therefore, our #1 piece of advice to everyone even considering buying a home is this: contact a top-ranked lender as early as possible and ask for specific advice based on your specific situation as to what is the best loan for you. You may contact Providence^® directly for a list of recommended lenders.

Now, for the general advice.

Lenders will approve or deny your loan application based upon three different factors: income, cash and credit. When you make an offer on a home you can present the seller with one of three different types of "proof" that you are a "strong" buyer.

"A" -- No Lender Review. If you haven't even spoken to a lender before making an offer you can tell the seller that you are qualified to buy because, well, er, because you say so! (Very low persuasive power).

"B" -- Pre-Qualification. Here you tell a lender about your income, cash, and credit. The lender, without research, assumes that what you have said is true and, based on that assumption, issues a "pre-qualification letter."

This is better than no lender review at all, but is still weak. The seller has no idea whether or not your information is accurate, and therefore has no idea whether or not the "pre-qualification" letter is any good. (Low persuasive power).

"C" -- Pre-Approval. Here the lender assumes nothing and, with your permission, independently researches all your information. They confirm your income with your employer, they confirm your available cash by contacting your bank, and they confirm your credit by contacting the credit bureaus.

Now the lender can issue a statement that is not based on an assumption that you are telling the truth, but based upon independent knowledge and fact research. Now the lender can issue a "pre-approval" letter stating that your loan is "approved" by the bank, subject to appraisal and a few normal conditions. (Good persuasive power).

"D" -- Commitment Letter. Ultimately a loan will be approved or denied by the lender's "underwriting" department. If you want the strongest lender statement possible, ask your loan officer to formally submit your loan to underwriting. These guys are like mortgage FBI agents with a bad attitude, just looking for a reason to deny your loan. If they can't find a reason to deny your loan, then underwriting will issue a commitment letter. This is the "ultimate" statement from a lender that you are "certain" to get a loan. (Highest persuasive power).

Many lenders charge for loan pre-approval, but if you use a top-ranked lender recommended by Providence^®, there will be no charge.

Purchase Independent From Sale. You may be in a strong enough financial position to be able to purchase your next home without selling your current home. This requires that you can qualify to pay both your new loan and your existing mortgage at the same time, and that you have enough cash for a down payment and closing costs outside of the equity in your current home.

New Mortgage Contingent On Sale. Sometimes it will be necessary for you to first pay off your existing mortgage before you can qualify for the new mortgage. This may be because you don't qualify to pay both mortgages at the same time, or that you need the cash from your current equity to use as a down payment on the next home, or both. You can still be pre-approved for your next home mortgage, but your pre-approval will indicate that it is contingent upon the sale of your current home.

As long as you go to settlement on your current home first, you can then go to settlement on your new home. It can be literally an hour later, or any number of days or weeks later. (If this is your plan, you definitely want your purchase contract written very carefully to make sure that, if the first sale fails, you aren't obligated to purchase the second home. Otherwise you could lose your deposit

Bridge Loan. If you could qualify to pay both existing and new home mortgages, but still need cash for the purchase from your current home's equity, you can get a "bridge" loan. A bridge loan is basically a line of credit using your current home's equity as collateral.

Say you have $100,000 of equity in your home and need $60,000 for down payment and closing costs on your next home. You can take out a bridge loan for the $60,000, secured against your current home. Now, as long as you can qualify to make both your current mortgage payment and the new mortgage payment (and the bridge loan payment!), you can buy the next home before your current home sells. Then, when you finally do sell your current home, you pay off the bridge loan with the sale proceeds.

This strategy works best either in a strong seller's market and/or for clients with a strong tolerance for risk, as a failure to sell your current home for an extended period of time will leave you repaying three different loans.

Asset Management/Equity Mortgage. This is very new and, we believe, very valuable borrowing tool for clients who are "between sales." It uses some elements of a bridge loan, but is far more flexible and with lower costs to you.

The asset management/equity loan consists of two loans. The first mortgage is for 80% of the value of the home you are buying; the second mortgage is for 20% of the home's value. It eliminates the need for a down payment, which usually eliminates the need for a bridge loan.

Even more, it offers you incredible flexibility. Once your current home sells, you can pay down the second mortgage with no penalty, in whole or in part. Then, if for some reason you need cash later on (to build a deck, fix the garage or even to take a vacation!), you can re-borrow money from the 20% equity line.

This can be a major benefit for clients who are buying and selling but where settlement dates are "split" a bit. Suppose your new home purchase settles on the 10^th of the month and your current home sale settles two weeks later. Why go to the hassle and expense of getting a bridge loan to cover just two weeks only to repay it two weeks later once your home sells?

The asset management/equity loan prevents the need for this. You can settle on your new home purchase by borrowing 100% of the price, then later settle on your current home sale, and then repay all or any portion of the 20% equity line on your new home. This saves you going through the hassle, and expense, of a third settlement (on the bridge loan).

This type of loan is so new that, as of this writing, we only know of one lender in the region to offer it. If you are interested, ask us to provide more information about the asset management/equity loan when you contact Providence^® and request a list of recommended lenders.

Whether you are buying a home, selling one, or both, the odds are overwhelming that you will use a real estate agent. Statistics from the National Association of Realtors^® indicate that over 85% of homebuyers actively used a real estate agent in their home search and purchase. An even higher percentage of home sellers used an agent and, among those who tried "for sale by owner", 72% would never try to "go it alone" again.

The question isn't so much whether or not you will use an agent (heck, with 25,000 of us in the state it's nearly impossible to avoid all of us for any prolonged period of time!). Rather, the question is which agent is the best choice for you?

These are good, but at Providence^® we believe it all boils down to one simple word: trust. You want an agent who has the character to do what is right even when "no one is looking", and the competence to skillfully follow through.

As you consider the factors below for choosing an agent, the bottom line question to ask is this: "How does this factor help me determine whether or not I can trust this agent?"

Most agents spend half or more of their business day looking for more clients. Cold calling hundreds of strangers, door-knocking in neighborhoods, even volunteering as free "receptionists" at their office in hopes of picking up a stray buyer or seller lead. All this energy searching for new clients keeps them from adequately serving their current clients.

At Providence^® we make it a point to put our clients first -- before, during and after the transaction. In exchange, we ask our clients to do our "self-promotion" for us. Most of our business comes from referrals from our past, enthusiastic clients.

When an agent does most of their business by referral, it is an indicator that you can trust them -- they have to do a good job or they won't get your referrals.

In Good To Great, a comprehensive study of the Fortune 500 companies over a 40 year period, author Jim Collins sought to determine what factors made for true, lasting business success. His intense research revealed a distinction between two types of corporate leaders.

Some corporations hired "celebrity" CEO's ("show horses"). They were flamboyant and often egotistical, but had the reputation for "getting things done." Other firms had quiet, sometimes even shy leaders ("plow horses"), who didn't care about press releases and being in the limelight -- they only cared about serving their customers and shareholders. Often the "celebrity" CEO's produced tremendous profit for themselves, but any profits for the company were often short-lived. However, "plow horse" CEO's were typically three to four times more productive long term for both customers and shareholders.

We believe this Good To Great principle applies directly to real estate and agents. Often times you may be better served by the quietly successful "plow horse" more than the "show horse" celebrity agent. When an agent promotes himself, that doesn't mean much. But when his clients promote him, in the form of referring friends and relatives over and over again, that agent is truly successful.

Agency means one person (the "agent") is obligated to promote the interests of another person (the "principle"). An attorney is an "agent" and her client is a "principal." Real estate licensees (the license actually reads "salesperson") can serve as "agents" of either a buyer "principal" or seller "principal."

A Buyer's Agent is a licensee who agrees to put the buyer's interests first as her principal.

A Seller's Agent is a licensee who agrees to put the seller's interests first as his principal.

A Dual Agent is a licensee who purportedly has two principals, buyer and seller, with conflicting interests.

Up until 1995 dual agency was completely illegal in Maryland and most other states as a blatant conflict of interest and consumer fraud. How can anyone pretend to represent the buyer (who wants the lowest price) and seller (who wants the highest price) at the same time? Committing just one act of dual agency could cost an agent her license! It was considered that harmful.

This prohibition against dual agency completely blocked the "big" firms from offering buyer's agency at all. They represented too many sellers (by "listing" their homes for sale) that trying to be buyer's agents was too great a risk, the odds of dual agency were too great. But newer and smaller firms did begin to offer buyer's agency. The big firms didn't like this new competition.

So, in 1995 the big firms all lobbied the Maryland legislature heavily and, over protest from consumer advocates, successfully got dual agency "legalized." From 1995 forward it is now "legal" to commit dual agency. (?!) The Consumer Federation of America and scores of consumer groups have condemned dual agency as serving the Realtor's^® interests over both buyer and seller. Dual agency is really backwards agency -- it has the principal put the agent's interests first!

We believe that Single Agency offers you, the consumer, the best alternative possible. A single agency brokerage can represent you as a buyer's agent for the purchase of your next home and as a seller's agent for your current home. A single agency practices buyer's agency and seller's agency, but never dual agency.

That is our commitment at Providence^® Real Estate. We're like a quality restaurant with only a few tables, rather than a McDonalds. We'd rather provide top quality service to a few top quality clients, rather than to boast about "billions served" and reduce our quality and loyalty in the process. And like that quality restaurant, a by-product of our quality service is word-of-mouth referrals from our loyal clients.

First, buying and selling a home can be a stressful situation even n the best of circumstances. An agent whom you find pleasant can help alleviate some of this stress.

Further, you will find it easier to respond to your agent's advice if you actually like your agent. Since it will be vital to your own interests at times to heed your agent's advice, it makes since to choose someone you will be naturally inclined to respond to.

Second, your agent's "likeability" has a direct bearing on how well other people will respond to her as well, which will have a direct bearing on the relative success of your transaction(s). In his groundbreaking book Emotional Intelligence, Daniel Goleman, MD, PhD, persuasively argues that the key to success in life is more related to one's "emotional intelligence" than analytical intelligence.

This is especially true in a people-oriented field like real estate, where "people skills" can be more important than technical skills. If your agent has a huge ego, if she has a reputation for arguing and "shading the truth", and/or if she is simply not well-liked in the real estate community, then her personality can actually damage your transaction. Other agents will respond negatively to her, which in turn can hurt you. If they have competing offers, they may try anything to get the other offer accepted. If they normally would agree to repairs, they may push to have the seller refuse to make repairs.

On the other hand, if your agent is well liked by others, with a reputation for being both pleasant and professional, then her personality can actually benefit your transaction. Other agents will respond favorably to her, which will directly benefit you. If there are competing offers, they may try to prefer yours due to your agent's reputation. They may be more agreeable to making repairs, giving in on small things, or simply being "more cooperative" overall.

The other agents may not even be aware of what they are doing, because they are responding from a subconscious level. But when there are strong feelings toward a fellow agent, positive or negative, it will influence the transaction.

So, your agent's personality is a factor in choosing a "good" agent. If an agent gives you the creeps but you don't know why, avoid them anyway -- likely other agents know from experience what you're just sensing at a first meeting. Likewise, if an agent gives you a sense of integrity and genuine concern for you and your needs, that's a good sign that their personality may actually help your transaction.

The solution? Team an experienced agent with a new agent to give you the best of both worlds.

Traditionally real estate firms have practiced a simple "numbers game", dragging in as many warm bodies as they possibly can to act as agents. New agents are often unsupervised and untrained, and industry-wide an average of over 68% will quit during their first licensing term.

But the most progressive firms and agents today are choosing a mentoring model, where new agents work directly under the supervision and mentorship of an experienced agent. This is the approach taken by Providence^® Real Estate. You will have one "lead" agent with years of experience combined with one or more "licensed assistant" agents. For tasks that require skill and experience (e.g. writing and reviewing contracts) you have your lead agent. For tasks that are time consuming but require less experience (e.g. showing you homes as a buyer) you have your licensed assistant. It's the best of both worlds.

No consumer real estate guide that we have makes any mention of firm size, company name, or franchise as being an important factor in choosing an agent. Why not?

For one thing, technology has become the great "leveler" in the 21^st century. With a modest investment in the latest computer software a "small" firm can be on equal footing with a large firm. In fact, with only a few computers, a small firm may find it easier to upgrade to the latest technology than a larger firm can. Indeed, most agents today telecommute and spend well over 50% of their time at their home office which, likely as not, has better technology than the "main" office does.

Also, real estate agents are legally "independent contractors." Though they may gather together office by office, the reality is that 90% of an agent's work is done independently. If an agent tells you "Oh, our office has 400 agents and they will all work hard to help me sell your home" it is a total falsehood. The other 399 agents in that firm will all be too worried about their own business, their own clients, to spend 10 seconds worrying about how to help a fellow agent in the office. Whether an office has one agent or a thousand, the only agent that counts is the one that works for you.

In real estate brokerages, quality matters, size doesn't.

The broker of Providence^® Real Estate, John Toner, is a licensed attorney in four states, and this brings a special "flavor" to our services to you.

For one thing, we tend to view things from a representation viewpoint rather than a sales viewpoint. Rather than "sell" you a home, we want to represent you as a homebuyer. Rather than merely "sell" your current home, we want to represent you in the total transaction -- including making certain that you are in compliance with all laws and that you act prudently, to prevent harm to you during and even after the "sale" part is over.

Also, we have "re-worked" much of the buying and selling process. We have specialized contract forms (see chapter 11) to protect you as a homebuyer, as a home seller, and especially if you are involved in two or more transactions at the same time.

Finally, as a "small" firm our buyer and seller clients can get direct access to pick our broker's legal mind in the event that your situation presents some unusual problems or calls for special, creative solutions.

If you want to find the perfect home, you want to use the best home search techniques possible. Ask your agent right upfront to discuss the various options available, and come to a mutually agreeable specific plan as to what each of you can reasonably expect from one another in terms of frequency of updates for new home listings, methods of delivery of new listings, and availability to view homes as they come on the market. Here are some general things to keep in mind.

Some popular ways to "just look" without making any commitments are:

• Newspapers ads
• Real estate magazine ads
• Open houses
• Internet home sites

Realtor^® open houses can also provide a method for you to casually inspect the interior of homes. However, if you really like the home you visited, the Realtor^® at the open house may try to block your ability to have your own, buyer's agent represent you in a purchase, claiming that she "owns" you as to that sale (by a Realtor^® rule called "procuring cause"). Also, if you don't like the house, you may get quite a few calls later on by that agent to try to show you another home.

If your purpose in visiting open houses is to make no commitment, then tell the agent there so at the beginning. Be pleasant, but firm, and tell the agent that you are "just looking" and don't leave your name or phone number. That way you may preserve your future rights (and privacy) a bit more.

Choosing An Agent. Every state has so many licensed agents that it is impossible to continually avoid all of us! This fact may be why humorist Dave Berry says that your first step in buying a home is to choose an agent so that you can begin telling all of the other agents you meet, "I already have an agent."

Seriously, the National Association of Realtors^® indicates that over 85% of homebuyers used a real estate agent actively in searching for a home. A good agent can help you access information through the Realtor^® MRIS system but can also do far more. A good agent will help you explore alternative neighborhoods and options that may not have occurred to you. Most of all, a good agent can help point out reasons not to buy certain homes, as well as reasons to buy.

We covered choosing an agent in greater detail in Chapter 4, but as a homebuyer you want to be sure that you have a buyer's agent who represents you -- and hopefully a true buyer's agent, who won't lower their standards by becoming a "dual agent."

Home Buyer Consultation. Many agents just want to get you into their car as quickly as possible to start seeing homes, in the hopes of perhaps selling you one quickly. Too many homebuyers willingly agree. At Providence^® we think a better approach is to first map out your purchase plan carefully, and then go out and look at homes.

We call this process the Home Buyer Consultation, which touches at least six different areas. First, we quickly review your financing plans to make sure you aren't missing your best opportunities. Second, we review the home features you want, and the price you want to pay, to make sure they "match." If not, it's best to find out up front, and begin the process of changing either your criteria or your price range. Third, we give you an overview of the home buying process, step-by-step, so that you understand how each step "fits" in the whole, making you a knowledgeable and prepared homebuyer.

Fourth, we review any "related issues" you may have, including: sale of other real estate; need to purchase in time for kids to register for school; new job start date, etc. We don't want your purchase to be torpedoed later on because of a question we failed to ask upfront. Fifth, we explain our firm's services and any fees involved -- we want you to understand exactly what we will do as your agent, no secrets! Finally, we allow time to answer all the questions about home buying that you may have. (If you are buying and selling, the Home Buyer Consultation is just a part of your 360° Buy/Sell Plan).

Your Home Buyer Consultation can take any where from 45 minutes up to a couple of hours. We want you to feel that you have a good understanding of everything involved before you make any major plans or commitments.

How Does MRIS Work? When a Realtor^® is hired to sell a home, she contacts the central MRIS computer and "lists" the home into the MRIS database, entering information about price, number of bedrooms, address, etc. Once the data is entered into the central MRIS computer all Realtors^® on the MRIS system can instantly access information about that home.

MRIS makes home searches much more efficient than any other method. Your agent, by entering information about price, home size and features, can gather an exact list of homes that precisely match your search terms. Be advised, many firms offer "bonuses" to their agents when they sell an in-house company listing, and some agents may be tempted to "push" these homes over others. At Providence^® we guarantee to show you all homes on the market, including foreclosures and "by owner" homes, without bias or favoritism. Finding the best home for you is our only goal, guaranteed.

"Kitchen Table" Review. With Providence^® you will have a full list of all homes listed on MRIS that match your search criteria, that you take home with you. Most buyers like to first take this list of homes and sort them into "like" and "don't like" piles as step one. We call this the "kitchen table" review and it usually results in you eliminating many homes based upon written information alone. (Why tour homes that you don't even like in print?)

"Drive By" Viewings. Next, many buyers like to take their list of "good" homes and do a quick "drive by" to view them from the car window. This step allows you to eliminate even more homes based upon their external appearance (or the look of the neighborhood). (Why tour homes where you don't like the neighborhood?).

View Top Picks. From the kitchen table and drive by sorting process you will now have your "top picks" to view with your buyer's agent. You simply call your buyer's agent to set up convenient viewing times, and your buyer's agent makes all appointments and shows you the homes.

When you find the one you really like, typically you would arrange to view it a second time to be sure, and then you proceed to the contract offer stage. If you don't find a suitable home in the first search cycle, your buyer's agent continues to search MRIS for new listings as they appear, and you continue the above process until you do find a home you really like.

Email Updates Twice Daily. At Providence^® we have a special software program that independently searches the MRIS for new listings that match your criteria and then emails them directly to you. It can update you as often as twice per day, at any time you designate, and sent to as many email addresses as you designate. In a fast market, getting information first can mean everything in getting a home.

Drop-Everything-And-See-It-Now. Often this is the approach required in a fast market. When an email pops up with a home that looks good, you take an immediate lunch break and we go and view the property. If you see a home at noon on Tuesday, we may have your offer accepted by Wednesday morning -- before most other buyers even knew the home was on the market.

Team Of Agents. At Providence^® we have a team of agents that all work together, including many buyer's agent assistants. If your primary agent is not available for any reason to view a home quickly, we'll find someone else who can.

Home Buyer Consultation. Though best done face-to-face, for relocation buyers this part of the process is usually done over the phone in advance of your home shopping trip. There are three essential elements: (1) that your agent thoroughly understands you and your wants and needs in a home, including any "related issues"; (2) that you understand what the local market conditions are like (including what are reasonable and unreasonable expectations); and (3) that you and your agent agree, step-by-step, on the process to be used to assist you in securing a home.

Pre-Trip Listings And Maps. If your house-hunting trip is still a month away or longer, it can be good for your agent to mail you a printed list of available homes about every two weeks, along with area maps, so that you can begin to visualize different homes and neighborhoods in relationship to one another.

Loan Pre-Approval. You will want to formally apply for, and be fully approved for, your loan prior to any home buying trips. You will need your pre-approval to make any offers while here, plus you don't want to waste your precious hours here sitting in a lender's office, when you could be seeing homes.

10-Day Package. About 10 days before your trip your agent should send a complete list (not merely an "update") on everything on the market that matches your criteria, as well as provide any help or guidance in making hotel arrangements.

48-Hour Preparation. You tell your agent your list of "top picks" from the most recent set of listings. He checks to see which of these are still available and also forwards the last update you will receive before arriving.

House Hunting While Here. Your advance interaction with your buyer's agent pays off. You know what home values are, generally, and have a good idea of what areas you most want to live in. You already have a list of target homes that are your "top picks", developed both from your input and your agent's suggestions and interaction with you. You are ready to start seeing homes almost immediately, knowing that the list you will see are the best available to meet your wants and needs (because you have had lots of informed interaction with your agent).

Note -- if you have more than four days on your trip, it may be the best investment of time to spend your entire first day doing "drive bys" of your top picks. This can help you (a) eliminate more homes, faster, than viewing individual properties with your agent; and (b) can also help familiarize you with different neighborhoods and areas.

Advance Preparation Is Key. When you are relocating to a new area, circumstances will force you to make a home selection very quickly. Advance preparation is essential to making the most of your precious little time, so that you make a wise choice and end up owning the nicest home possible.

Studies show that over 75% of homes are never advertised. Often times those that are advertised are the ones that don't sell (that's why they keep being advertised). Even the Internet, accurate for a lot of things, is not real complete where housing information is concerned. Internet web pages are the online equivalent of homes magazines -- they are designed to leave out just enough information to make you call a salesman, and many websites are notoriously inaccurate and/or out of date.

Searching for advertised homes is a great method of doing preliminary research when you are in the casual stage of "just looking around." But, when you are serious about actually buying a home, you want and need the efficiency and access that only the full, Realtor^® MRIS can offer.

When one company gets both "sides" of a commission it is good for the company, but it can be bad for you the consumer. To work "both sides" of a deal means the company and agents become dual agents and no longer fully represent you either as buyer or seller.

At Providence^® we are a single agent company. We represent a select group of buyers as buyer's agent, and sellers as seller's agent, but never act as dual agent. We promote that which is best for our clients, not for the company or agents. Not only is this the right thing to do but, frankly, in the long run its good business too.

We even help our buyer clients purchase "for sale by owner" homes! We search the MRIS database, foreclosure databases, every source imaginable to find the best home for you.

When you plan to sell your home one of the first things you will do is ask your agent for a Comparative Market Analysis ("CMA") to help you determine what is a reasonable asking price. So, why not ask for a BMA, a Buyer's Market Analysis, when you are preparing to make an offer to purchase a home?

Not all Realtors^® do so, but at Providence^® Real Estate we feel it is just as important to get the price right when you buy as when you sell, and the steps below are some of the key areas to consider.

Listing History. Another significant fact is to learn the home's listing history. Has it been on the market just a few days, or a few months? Have there been prior "sales" that failed to settle? Though clever agents can sometimes disguise a home's listing history, a diligent buyer's agent should be able to uncover any "secrets."

We had a client where the comparable sales indicated the asking price was about $5,000 below market value. But before making an offer we also checked the listing history and found that the home had a long history, had been "sold" once but the sale fell through, and had been rented a few times. We suspected that the owner was sick and tired of looking for a buyer and might take a lower offer still. Based on our research and advice our client bought the home for nearly $12,000 below the asking price, which ended up being $17,000 below market value.

We've also seen the opposite. One home had been on the market for a while which would normally prompt us to suggest an "aggressive" offer price. Then we discovered that the asking price had been much higher (which is why it had stayed on the market) and had just been lowered by $28,000 the day before our buyers saw! That weekend there were three bids on the house -- but ours got there first and was for $2,000 above the asking price. Without researching the listing history we would have wrongly advised our buyers to offer less and lost the home. Instead we helped them get the home they wanted.

Tax Records. By looking at a home's tax record you can usually tell how long ago the seller bought and what price she paid back then, which may indicate how "flexible" on price she can afford to be. Also, the tax records contain useful information to help "interpret" the comparable sales data.

Tax records state a home's finished square feet of living space and also the home's assessed value for tax purposes. By comparing the assessed value of your target home to the comparable sales you may see a pattern. If, for example, the average assessed value of the comparable homes is 40% above your target home's assessed value, that could be a warning sign to re-calculate and be extra careful.

Seller's Special Motivations. Even though a home may be worth its asking price, why offer that if the seller would be willing to take less? Some factors that can indicate a likelihood of being willing to accept a lower offer include: *a forced sale (e.g. job relocation, divorce); *seller is under time pressure to sell; *a contract from another buyer has just recently fallen through; *the seller already found the next home he wants to buy (even better if he has already bought that home).

Some factors that can indicate the seller is not likely to budget on price include: *the agent and seller are confident that the home is "priced right"; *other potential buyers are interested in the property as well; * the seller is under no time pressure whatsoever to sell.

Competing Buyers. Before you make an offer you always want your agent to check to see if there are any other competing buyers for the home. If there are no competing buyers you may decide to be a bit more "aggressive" in your initial offering price. If there are competing buyers you may decide to go to your top bid price immediately (or even avoid the home altogether to avoid getting into a bidding war).

First, an agent can help you in locating new homes and home sites. It is true that many builders advertise their sites in "new homes guides" and other locations, but there are many others who do not. Some builders advertise primarily, even exclusively, through Realtors^® and the MRIS system. This is often the case with "specialty" or "niche" homes, where only a few homes are being built in an area, and where it just doesn't pay to run big, expensive ads.

Also, many times agents will be aware of opportunities that are not being advertised to the public. Agents may be aware of pre-construction opportunities in a yet-to-be-advertised development, or "spec" homes that suddenly became available and which offer you many "extras" at a discounted package price.

Second, an agent can be a huge help in selecting a builder and subdivision. When you contract to buy new construction you're agreeing to buy a home that doesn't even exist yet! You aren't buying something tangible, but something intangible -- the builder's reputation. An experienced buyer's agent will be able to guide you away from disreputable contractors and to the builders with a reputation for quality and high customer satisfaction.

Third, builders pay your buyer's agent's fee so there is no disadvantage. As pointed out more thoroughly at the end of this chapter, builders gladly pay a brokerage fee to buyer's agents, because builders appreciate the fact that serious, qualified buyers tend to work with an agent.

Finally, you'll have someone on your side through out the process. After your new home is located you still must contend with the purchase contract, and home inspections, and financing… all the steps outlined below. A good buyer's agent will be a voice on your side during each of these steps -- something no builder can say.

Comparable Neighborhoods. Though nearby existing homes may have features (lot size, style, square feet, etc.) very different from the new homes being built, you should at least consider how the value of your new home "fits" the area. Suppose you are considering three new home sites in the $650,000 range, and that existing home sales in White Acre are around $610,000, those in Blue Acre are $475,000 and those in Red Acre are around $390,000. There's an indication that a new home in White Acre will hold its value and/or appreciate better than the other areas.

Builder-To-Builder Comparison. It's also a good step to create a column-by-column comparison of benefits and drawbacks to each builder, and to assess a dollar amount to each. Suppose one builder offers 1/3 acre lots, the other 1/4 acre; one offers a free "garden master bath", the other a free finished basement; both have a quality reputation, but one is better than the other. The easiest way to compare all features is to compare individual features, one by one, attach a value, and tally the score at the end. Your buyer's agent can help a lot in this process, especially in attaching dollar values to the different feature differences.

Builder Reputation. This is always key. Your agent's opinion of the builder's reputation is a strong indicator, as word of poor performance is passed quickly through the real estate community. You can also check for complaints against the builder filed with the Better Business Bureau or the Attorney General's Office. You can also stop by prior developments done by the builder and ask a few homeowners what they think of the builder, after having lived in the home a few years. This last method may be the only method available if the builder is rather new to the area.

What Upgrades Are Common? Try to find out what other homebuyers in the area are added to their homes. This isn't "keeping up with the Joneses", but rather just making sure your home has good resale value. If 80% of homebuyers are adding a certain feature (master bedroom loft, sunroom, etc.) and yours doesn't have it, it can affect your future resale value. On the other hand, you don't want to over-improve your home either. If others are adding 10 -- 14% to the price in options, you may not wish to add 35% to your home.

What Upgrades Will You Enjoy? If "everyone else" gets an expensive option that you don't like at all, skip it. Likewise, if there is a feature that you really want and no one else is getting it, maybe you should get it anyway. After all, isn't the ability to get exactly what you want one major reason of buying new?

"Safe Bets" For Upgrades. Nearly always you will want to buy the most expensive carpet pad for the entire house, as it will make every room more comfortable and make all carpeting last longer. Also, you probably want to buy upgraded carpet (or hardwood/tile) for major traffic areas. A little bit more of an investment upfront here will give years of enjoyment and save you the expense of replacing cheap carpet just a few years down the line.

Lot Premiums. Not all lots are equal in size, view or beauty. Builders tend to add a "premium" fee to the lots that are larger and that have the best view or setting. A lot that backs to wooded parkland will cost more than one on the corner of two major streets.

Whether or not you should buy a "premium lot" is a tough call and can only be made on a case-by-case basis. While it is usually easy to see which lots are most desirable, it is harder to assess an exact dollar amount on that value. This is one area where advice from your buyer's agent (not the builder's salesman) can be very helpful.

Third Party Advice. Much of the thrill of buying new is getting to pick all those finishes, colors and options. But, if you make bad choices, you can end up with a white elephant at resale time. Conversely, adding the right options will not only add value but will help you enjoy your home all the more. Better to invest a few dollars wisely, than go cheap and regret it for years to come.

The role of the builder's salesman is to promote that builder's product. The role of your buyer's agent is to help insure that the options you choose will be good for resale and good for making the home "yours."

Many buyers just assume a new home doesn't need an inspection. Not true. A few years ago CBS television did an expose' on new home sales. Luxury homes in an estate community were shown with major construction flaws costing over $210,000 to repair -- even though they were only six months old! Some were even condemned by the county as uninhabitable until repairs were made.

Other buyers may be intimidated into thinking that they aren't allowed to bring in a home inspector. False. Though the builder's contract may not give you a "right" to a home inspection, the proper "political" pressure will get an inspector in. For 15 years Providence^® has never failed to get an inspector into a new home for any of our buyer clients.

You have three possible times to bring in an inspector: foundation; pre-drywall; and final inspection.

Foundation Inspection. The first possible time to get an inspector to look at your new home is at the time the foundation is poured. He can check to see that it is plumb and level, and that the footers appear to be proper. Roughly 5% of our new home buyers at Providence^® opt for this inspection.

Pre-Drywall Inspection. The next time frame to consider bringing in an inspector is just before the builder installs the drywall. At this stage the roof, sub-flooring, plumbing, electrical, mechanical, and HVAC systems have all been installed -- but are not yet covered by drywall. You inspector can inspect like superman with "X-ray" vision -- he can "see through walls" to catch problems (because the walls aren't there yet).

This is a key inspection, as your inspector can catch problems now that he'll never catch later on. Also, these problems will be much cheaper to fix now than later. The builder is more likely to agree to an extra $75 in labor to alter ductwork before drywall is installed, than to agree to make the same repair at after drywall is installed at a cost of $1,500.

Probably 90 -- 95% of our new homebuyers at Providence^® opt for this inspection.

Final Inspection. Once the home is completed the builder will want to arrange for a "walk through" with you and the construction superintendent. You want to have your home inspector return for this walk through. He can now check all final components like flooring, countertops, cabinets, etc., for proper installation. He can also check to see that the repairs advised from the pre-drywall inspection have been done properly. Nearly 100% of our new homebuyers at Providence^® opt for this inspection.

This longer period of time can complicate coordination with the sale of your current home, so you will want to work closely with your agent to choose and implement the best options listed in Chapter 14 about coordinating transactions. The longer period of time also brings challenges to your financing.

Despite the fact that you may not like being "forced" or "steered" to use the builder's lender, over half the time the financial incentive is enough to make it worth your while, but not always. If the amount the builder is offering is small, and if the lender's rates are not competitive, you may be better off rejecting the builder's cash incentive and using your own independent lender. This is, once again, an area where advice from your buyer's agent will be very helpful.

Timing. Generally a lender can only "lock in" an interest rate for up to 60 days. The market changes so rapidly that a lender can't hold a rate "stable" for a longer period of time. Since your new home won't be ready to purchase within 60 days, that means you can't lock in your interest rate at the time you sign your new home purchase contract.

Some lenders specialize in new home loans, however, and they offer some alternatives. You can "buy" an extended interest rate lock, and lock-in your rate for 90-120 days, by either agreeing to pay a bit higher interest (say 1/4%), or by paying a "point" on your loan, and/or by giving the lender a non-refundable deposit (say 1/2 to 1 points). A few loan programs allow you to lock in your rate for as long as six months. If you fail to secure such a rate lock, you will have to "float" for at least a few months with no guaranteed interest rate.

If rates remain stable or even decline, fine. But if rates climb during the "float" period, your loan costs and/or monthly mortgage payment can rise more than you had budgeted for.

Selling Your Existing Home First. When buying new construction you may choose to market your existing home and get a contract from a buyer before you commit to buy a new home. Under this approach you may enter into a "contingent" contract for a new home or simply wait to contract for your new home until your current home is under contract with a buyer.

This approach offers the advantage of financial security -- you won't get stuck with two homes and two mortgages. The primary disadvantage is that you may "lose" the home (or often the specific home lot) that you really wanted by waiting. Depending upon market conditions, many builders will not accept contingent contracts.

Buying Your New Home First. You may contract to buy a new home first, before you have a buyer for your current home. This may be a good idea in a fast, "seller's" market because if you delay you will very likely lose the home (or lot) that you really wanted. Further, if it is a fast "seller's" market, you likely will be able to get your existing home sold before you go to settlement on your new home.

Double Move. On occasion, you may find yourself doing a "double move" when buying new construction, and it may be wise to plan on this at least as a "back up" option. Suppose your new home settlement is projected to be six months away, and a buyer makes an offer to buy your home the next week. That buyer probably doesn't want to wait six months to move in, and may not agree to a delayed settlement or rent-back. It may be wise overall (though personally inconvenient) to sell your existing home, move into a short-term rental apartment for a few months, and then go to settlement on your new home.

Agent Help. Your agent should be a major help in coordinating the two transactions. Not only by offering you advice, but also in negotiating with the builder. If you tell the builder that your home is "nice" and will "sell fast", the builder may not believe it. But if your agent says, "we should have their current home sold in 30 days or less", it is more persuasive coming from a professional.

To a builder, the presence of a buyer's agent is like "glue" to hold a transaction together; it's like "transaction insurance." They don't have that level of "insurance" for a buyer who strolls in off the street.

You want to do everything possible to create feelings of home for the buyer. If you can create a sense of warmth, a feeling that this would be a nice place to relax, or have fun as a family -- that this would be a nice place to live, then you have properly prepared your home to sell.

This usually involves getting outside advice from your agent and possible a friend or two. Odds are you've gotten "used to" certain things about your home that perhaps won't create the right emotional response from buyers. You want all such consultants to show you "tough love." Far better for your friend or agent to tell you directly that you need to replace the carpet and fix the roof, than to have numerous buyers tell you indirectly in the form of not making you an offer.

As you are working on one task (say cleaning) you may get an idea for another task (repairs, or staging) that would make the room better. Write the idea down on your notepad and write it on a Post-It^® note in the room itself. As you progress in working on your home, the remaining Post-It^® notes will serve as reminders of items you still need to address.

Facing. While going through each room de-cluttering, you will often return some times to a shelf, cabinet or cupboard. Try to use a merchandizing technique called "facing" -- displaying bottles, cans, and other items with all labels facing outward. Grocers and other stores do it because it generates a feeling of organization and is visually appealing -- it creates a more positive emotion that having cereal boxes strewn all over the shelf. You can use facing, too, to enhance the orderliness and appeal of bookshelves, cabinets, closets and kitchen cupboards.

Big Clutter -- Furniture. Too much furniture can also make a room feel cramped, confined, and too small. Look closely at removing one or two (sometimes more) pieces of furniture from every room in the house. Ask, "Can I remove one piece of furniture and make this room look visually more appealing?" Continue to remove furniture until your answer is "no." You likely will want to rent a short-term storage space to store your extra furniture, assuming you don't sell it or give it away. (Remember, recycling helps the environment and sells homes!).

Closets. As a general rule you probably want to remove half of everything that you currently have in each and every closet. You want a buyer to feel that there is a lot of space in each closet, and this is accomplished by having the closet roughly half empty.

Also, you want to face items in the closet. Have all clothing hanging in the same direction, shoes organized and lined up, and any books or other items in an organized manner. For linen closets, remove a third or so of the towels and sheets, and face all remaining towels to get a clean and neat appearance.

Bookshelves. For bookshelves you want to remove a third to a half of all items, and face the remaining items. Make a buyer feel it will be easy to keep his books organized while living here -- and that there is plenty of room for his books and other items.

Kitchen. First remove literally everything from all of your counter space. Clean the surface. Then return only the items that you cannot live without while your home is for sale. If your counter space is filled with a microwave, television, toaster oven, bread maker, dish rack and other items -- it may seem that the kitchen is small and may make the buyer feel that if they move here their lives may be as hectic as the kitchen counter looks.

Instead, you want the counter space to be largely unoccupied. The few items that you put back should be clean and orderly. Make buyers feel that it will be easy (even fun) to work in this kitchen.

Bathrooms. As with the kitchen, remove everything from the bathroom sink, shower and floor. Clean sink, shower and floor, and then return only the few items that you cannot live without while the home is on the market.

Room By Room. Clean up and throw away old magazines, newspapers and other clutter that has no business in your home in the first place. Remove all items (except large pieces of furniture) from the floor of a room, and then return only those items that you need while the home is for sale or that add an appeal to the room. Your electric shoe polisher, unused exercise bicycle, 3^rd TV stand, old unused computer, etc., don't need to be taking up space.

Storage/Laundry/Basement. You want to go to each of these areas as well and remove items until the room gives a sense that there is "space for more." You want every area -- even storage in the basement, to look like there is extra space and that it will be easy to keep clean once the buyer moves in.

Overall Feeling Of Space And Orderliness. There are two main reasons for de-cluttering the home. You want to create a sense of spaciousness, that the buyer will have enough space for all of their belongings. And, you want to create the feeling or orderliness -- that the buyer will have an easy time keeping the home neat and clean.

A house that is clean absolutely everywhere communicates that it has been lovingly cared for. When things look good on the "surface" buyers naturally assume that things that are unseen (behind the walls, etc.) are in good shape too. A home that shows dirt and filth makes a buyer feel like it will be a hard home to keep clean, while a home that is spotless helps create a feeling like the home almost "cleans itself."

Clean While De-Cluttering. You will likely find that, while you are in the process of de-cluttering, you may as well clean certain areas too. When you empty a closet, clean the floor and walls, maybe put in new shelf liners, and then return (roughly half) of the contents. Likewise, when de-cluttering underneath a sink, you thoroughly clean the space and return (about half) the contents.

Carpeting And Floors. You may need to replace carpeting in part or all of the house when making cosmetic improvements (below). You want to steam clean every square inch of carpeting that is not being replaced. Likewise you want to thoroughly clean all other flooring surfaces.

Walls & Ceilings. Many of these you will paint while making cosmetic changes (below) but for those you don't paint, you want to be sure to clean thoroughly, wiping down all handprints and scuff marks, and clean cobwebs from