Taking back financing could make your property easier to sell during a difficult mortgage market. You might hold out for a higher sale price or interest rate, because your buyers will have fewer closing costs than usual. And sometimes your income tax situation, particularly with investment property, makes it advantageous to receive the proceeds over a period of years.

But seller financing is sometimes sought by buyers who cannot qualify for regular financing, and then the question arises: if a bank won't trust them with a loan, why should you?

A large down payment, of course, represents some safety. If you ever had to foreclose, the debt might be covered by the sale of the property. And asking for a large down payment serves to separate strong buyers from those who are weak financially -- unless, of course, they're going out and borrowing the down payment elsewhere. In that case they could end up with unmanageable payments, which would put your loan in danger.

So if you are trying to sell your home buy owner you should insist on an analysis of the borrower's financial position, just as a bank would. Your lawyer, accountant or broker can obtain a credit report on prospective buyers. You'll be able to see how seriously they take paying their bills.

Analyze the buyers' present debts and income to ensure that they're not getting in over their heads. Look for job stability..

If you do go ahead, have your own lawyer draw up or at least review the mortgage or trust deed documents they will sign. And be sure the mortgage is promptly entered into your county's public records, to establish the priority of your lien, your financial claim, on the property.

And that's about it.. It won't matter how old you are when you sell. It won't matter if you once used the old one-time $125,000 over-55 exclusion. It won't matter whether you buy a replacement home or not. It won't even matter if you've used this new exclusion on another main home in the past, as long as it was more than two years before the current sale. A single owner can take up to $250,000 gain free of any federal tax ever.

A married couple filing jointly can take up to $500,000. Even if only one of them owns the property, the full $500,000 is available if the non-owner spouse occupied the property for the required two years.

The exclusion can include postponed profit on previous homes, rolled over under the old pre-1997 rules. This new tax break can be used over again on the sale of another principal residence, as often as every two years.

You can even use part of the exclusion if you were in the house less than the full two years, if your move is required by one of three reasons: job transfer, health reasons, or some other unforeseen circumstance acceptable to the IRS.

So few home sales will require federal tax payments these days that in most cases your sale won't even be reported to the IRS by the person in charge of the closing.

On the other hand, perhaps prices in your area have taken off, and you'd short-change yourself if you just tried to "get my money out" (but you'd have a fast sale.).

* You can't go by how much you've spent on improvements. A given street will support only a given price range. If you've invested so much that yours would be the most expensive house on the street, the buying public is not likely to reimburse you..

* You can't go by your tax assessment figure. Even in communities that aim at full-value assessments, the figures are almost never in line with what buyers are currently ready to pay..

So how do you price your house?. By putting yourself in a buyer's shoes.. What else is for sale in the area? How does it compare with your house? How long has it been on the market? What has sold recently, and how much did the buying public value it at? What has failed to sell in the past year?.

Any good broker can furnish the data you need, often in the form of a chart known as a CMA, Comparative Market Analysis. .

And once you have it, again think like a buyer. What price would it take for you to look at a list and say to an agent "Take me to see that one"?.

An agent needs to walk through the property in question before preparing a CMA. Unless the home is enormous, the agent inspection part of the CMA shouldn't take long, nor does the home have to show like a model home. However, property condition does affect price. So if you plan to do work on the property, let the agent know.

After the agent previews the property, he or she researches the Multiple Listing Service for information about similar properties in the area that have recently sold. In order to arrive at a current price estimate, an agent should analyze information about listings that have sold and closed, those that are sold but haven't yet closed (the pending sales), active listings and expired listings.

Pending and sold listings give the most reliable indicator of current market price. Active listings are a gauge of the current competition in the marketplace. Expired listings are properties that were listed for sale but didn't sell. Usually expired listings didn't sell because they were priced too high for the market.

The agent then compares the property with listings found in the MLS search and by so doing arrives at a probable selling price. Keep in mind that the price derived from a CMA is somewhat subjective. Also, a CMA is not an appraisal. You need to hire a licensed appraiser to complete an appraisal. You may find that you want a CMA even if you aren't planning to sell. For instance, before embarking on a major renovation you might want to know how much you can spend without over-improving for the neighborhood. The agent who sold you the property should be happy to prepare a CMA for you if he or she is still active in the local housing market. If not, ask an acquaintance whose opinion you trust to recommend an agent.

Buyers should ask for a CMA on a property they are considering buying, particularly if they are new to the area and haven't had the opportunity to see many listings.

FIRST-TIME TIP: Regardless of whether you are a buyer or a seller, the agent who prepares your CMA should work actively in the area where the property is located. The Internet has made it possible for virtually anyone to access comparable sales information. However, this information could be inadequate without firsthand knowledge of the comparable properties and the local marketplace.

For example, property upgrades usually have a positive effect on sale price. But if the upgrades are inferior in quality or design they can lower rather than increase the price. Suppose the information on a sold listing shows a remodeled kitchen. Without having seen the property, it's difficult to know how the remodeling affected the price.

THE CLOSING: Don't be surprised if a CMA gives a price range rather than a set price. You're more likely to see this in markets were there is variation in terms of property size, age, architectural style and condition.

2. Get your home into near-model home condition Most home buyers today want to purchase a home which is in basically good condition and does not need major fix-up work. This is called a "red ribbon deal" home because it's like a gift wrapped with red ribbon.

There are few buyers for fixer-upper houses--and they want bargain prices to compensate for the necessary work. The goal of home sellers who want to sell fast for top dollar must be to get the home into near-model home condition. However, spending major money is not required. Most homes just need basic, inexpensive work to get the residence into very good condition where all the buyer must do is turn the key in the door and move in.

3. The reason most homes don't sell--they are overpriced! Many home sellers want to set their asking prices above what their realty agent recommends. These sellers often hope an out-of-town buyer will overpay for their home. That rarely happens! There are several reasons, such as buyer's agents who look out for their buyers, competitive listings which are realistically priced close to market value, and lender's appraisals which reflect market value. Buyers quickly become experts on home values after they've inspected a dozen or more similar homes in the vicinity. They rarely overpay. Most homes have a "range of values." Many factors influence this range of values--such as local economic conditions, the home's location, supply of similar homes in the same price range listed for sale, number of buyers currently in the marketplace, the physical condition of the home, the skill of your realty agent to properly market the home to as many prospective buyers as possible, the financing available, quality of the local school district (the best schools create home buyer demand), and the desirability of your home compared to other nearby homes now available for sale.

4. Be flexible--don't get greedy If you're just testing the market and will sell your home only if you get your inflated asking price, then you're not a serious motivated seller. However, if you are motivated to sell, the best attitude is to be flexible, don't get greedy and don't insist on receiving the last dollar of profit. Instead, consider all purchase offers which are presented. No matter how low and insulting the purchase offer might be, make a counteroffer! After several days or even weeks of counteroffer negotiation back and forth, home sales often result. But sellers who are inflexible and don't make counteroffers have only themselves to blame when their home doesn't sell because they are inflexible and greedy.

5. Get out of the house! Finally, if you listed your home for sale with a professional realty agent, let that person (or a buyer's agent) do their job. Whenever you know an agent is bringing a prospective buyer to inspect your home, even on short notice, get out of the house! There's a very good reason you don't want to meet the prospective buyer.

Experienced realty agents will tell you that until a buyer criticizes a residence, he or she is not a serious buyer. If the seller is hovering nearby, the prospect usually will not criticize your home. Instead, he or she will look at it and leave without making a commitment to that possible future residence. Also, the buyer's agent won't comment about the pros and cons of the house if the seller is within hearing range. Even if you just walk around the block 10 times while a buyer inspects your home, get out! Also, get your pets out--there is nothing worse than an offensive pet (or pet smell) to chill prospective home buyers from quickly buying your home for top dollar.

Regardless of the motivating factor, when sellers decide to sell they often want to get the process started as soon as possible. But putting a home on the market prematurely can be a mistake.

Some sellers insist on marketing their home before it's ready. Rather than complete the work that will make their home more salable, they offer to reduce the sale price to compensate buyers for shoddy conditions. Or they credit money to the buyers at closing. This generates fix-up money for the buyers who take responsibility for completing repairs after closing.

These approaches work with some buyers. But most buyers lack the vision to imagine how a home will look in its fixed-up condition. Many buyers, particularly first-time buyers, don't have any experience fixing up homes. The entire process intimidates them. Repeat buyers may have had too much experience with the process and vow to never buy another home that needs work.

In their haste to get a quick sale, some sellers jump the gun and put their home on the market while the fix-up is in progress. Notices tacked up around the house or a statement made in a flyer describe the work the sellers will complete before closing -- replacing a tired-looking linoleum floor or re-carpeting a room. This strategy rarely generates the desired results.

Agents and prospective buyers remember a home the way they see it. A bright pink dining room creates a lasting impression. It's difficult for most people to imagine the bright pink transformed to a stylish taupe. And it's hard to get agents and buyers to come back to take another look after the work's completed.

FIRST-TIME TIP: You may have only one chance to sell your home -- the first time the public comes to take a look. That's why it's best to wait until your home is in its best shape before showing it to anyone other than your own agent.

Select a listing agent who has good powers of visualization and who can advise you on how your property should look when it hits the market. If your agent feels deficient in this area, call in a decorator who specializes in fixing up a home for sale.

The broker's open house is a vitally important marketing event. This is when real estate agents preview your home for their buyers. Your agent shouldn't hold the broker's open house until your home is completely ready. Recently, a home under construction in the Oakland hills was marketed to local Realtors before it was completed. The agents had a hard time imagining it in its finished condition.

Far worse was the fact that one agent slipped and fell on the gravel- and mud-covered driveway. She hurt her leg and ripped her slacks. She's unlikely to have positive memories of the house, nor will the agents who witnessed the event.

As a seller you want agents to have fabulous memories about your home. That way, they'll promote your home to their buyers and fellow real estate agents.

THE CLOSING: Sellers who market their home before it's ready usually wait longer for a sale and sell for less than if they'd done the fix-up work first. It defeats the purpose of selling quickly for a good price.

What remains to be done last-minute, when an agent is bring in prospective buyers? Plenty.

Go through the house and open every shade (except the one that blocks the used-car lot next door.) Draw the drapes back from your spotless windows; a bright house looks not only more cheerful but also larger.

Turn on lights from top to bottom, even in the daytime; (ever notice the extra sparkle in builders' model homes?). Turn off tv, dishwasher and any other noisemakers. If you leave your stereo on, play neutral easy-listening music very softly. You are trying to set up a seduction scene. Beds made with best spreads, toilet seats down, brand-new towels set out last-minute. If you have time and the right linens, perhaps a beautifully-set dining-room table.

If you have a smoker in the house, empty ashtrays and spray room freshener (even so, some buyers may refuse to enter.) In any event, consider simmering a cinnamon stick or bay leaf for a subtle homey touch.

On any day that isn't absolutely sweltering, dramatize your open hearth with a small fire, kindling perhaps or a pressed log. Get the kids and the dog over next door to the neighbors'. And then go there yourself.

But real estate brokers are just about unanimous in asking that you be absent when they bring people in. Why?. Because although you know your home, the broker knows these buyers. They've already looked at several houses today, they are remarkably suspicious about plumbing problems, and they need a long dining-room wall for an heirloom breakfront.

To take the last requirement first: they'll make a beeline for your dining-room. If it doesn't have that wall, they'll ask to go right on to the next house. And if someone spends only two minutes in your home -- you don't want to know about it!.

As a nervous bystander, you might chatter to them about how the living-room ceiling was just repainted, to get rid of the water stain from that one time when Uncle Marvin let the tub overflow.You'd never realize what needless anxiety this could stir up.

Another problem is the simple matter of overcrowding. It's easy for stairway and halls to jam up. The broker knows enough to linger outside the doorway of small bedrooms.

With you around, buyers are reluctant to open closets, try out windows, stroke bannisters and perform all the small get-acquainted gestures that are the real estate equivalent of kicking the tires on a new car. And they're reluctant to voice objections -- which a good broker can handle properly.

Your agent knows when to fade into the woodwork, and how to keep silent while prospects mentally place their furniture in your master bedroom. In fact, the amount of silence that accompanies an expert house-showing might surprise you.

Falling in love with a house is like falling in love with a person, and three can be a crowd.

Most experienced agents recommend that sellers vacate their home when it's shown to prospective buyers. This is usually inconvenient for sellers, but there are reasons why it's best for sellers to be gone when their home is shown.

Ambivalence, or the approach-avoidance syndrome, is a major theme in many home buying sagas. Here's how the scenario often plays out: A great listing comes on the market. A buyer sees it, falls in love with it and seriously considers buying it. Then the buyer get nervous about making a commitment, has second thoughts, decides against it and moves on to other listings.

Before deciding to buy a home, buyers often must go through the process of picking the place apart. They need to look in every closet, nook and cranny. They need to discover everything they don't like about a home before they can make a decision to go ahead and buy it.

Most buyers won't scrutinize a home in the presence of the sellers. Buyers are often too embarrassed to look inside closets if the sellers are home. They may hate your green carpet, but they'll smile and tell you how much they love your place if you are there.

Accomplished agents can help buyers get past their objections to a home. But to do this agents need to have the opportunity to analyze the home with the buyers in private--outside of the seller's ear-shot. Green carpet can be changed. It may even cover beautiful hardwood floors.

It's natural for sellers to want to know what buyers think about their home. You probably won't get a straight answer from the buyers themselves. Nor is it appropriate to call the buyers' agent and ask him or her for feedback.

Your own agent should follow-up on each and every showing of your home and report back to you with feedback from the buyers. Often useful information can be gleaned from your agent's follow-ups. You may discover a common complaint, and it may be something that you can remedy. For example, if every buyer that looks at your home likes it but can't stand the green carpet, you have the option of changing the carpet if the home isn't selling.

Not all agents routinely follow-up on showings and report back to their sellers. Let your agent know that this is something you expect as part of your marketing plan. Also, don't blame your agent if the reports are not 100 percent positive.

FIRST TIME TIP: Some sellers never leave when their home is shown. This may be due to the sellers' natural curiosity, or perhaps their agent didn't counsel them properly. If you are going back to see a home you're interested in, and the sellers have always been home, have your agent request that the sellers leave this time. This will give you the opportunity to evaluate the home without being inhibited by the sellers' presence.

Homes that are staged for sale tend to sell faster, and for a higher price, compared to listings that have not been staged. Staged homes are more appealing. You may find more demand and possibly multiple buyers for a well-staged home.

A homeowner in Oakland, California learned the hard way what a difference staging a home for sale can make. She listed her home for sale last year with an agent who told her to do nothing to get her home ready for sale. The agent insisted that it was a waste of time to fix a house up for sale because the buyers would surely want to redecorate to suit their own tastes.

After months on the market without even a nibble from an interested buyer, the home was withdrawn from the market. The owner then consulted a different agent. This agent detailed all the cosmetic improvements that needed to be done in order to sell the home.

The home was re-listed after all the suggested improvements were completed. It sold with multiple offers the first week it was on the market--the second time. It also sold for more than the list price.

FIRST-TIME TIP: Ask your agent if your home needs staging. If so, your agent may be able to help you if he or she has expertise in home decorating. If not, your agent should be able to recommend someone who can help you stage your home for sale.

Fresh flowers are a nice touch inside. Outside, use flowering plants at the front entry for added color, and to show off the yard. Don't forget to paint the front door so that it looks fresh and inviting.

Buyers like homes that are cheerful and bright. Open curtains and drapes, unless the outlooks are poor. Buy inexpensive window coverings that let light through if the windows have an unsightly outlook, or if they look directly onto neighbors.

Leave lights on when the home is shown, even when the sun is shining. Add lighting to rooms that are dark, or increase the wattage of light bulbs, if the fixtures will allow it.

Make sure that the heating or cooling system is set at a comfortable temperature. A frigid house is uninviting, and so is one that's too hot on a sweltering day.

Small staging efforts can make a big difference. Buy a new shower curtain to replace the old one that's mildewed; change out-dated cabinet pulls in your kitchen or bathrooms.

Outdoor living is important to most buyers. Stage your yard, patio or deck with outdoor furniture. The outdoors then becomes an extension of the living area. This adds value in the buyers' mind.

An unused cubby-hole can be turned into usable space with a little staging. An extra large walk-in closet can become a computer room. A sun room can be transformed into a den or home office.

When you sell a home, you're selling a fantasy. Even though the buyers won't live in your home the way it looks in its staged-for-sale condition, they'll be attracted to it because it presents a lifestyle they aspire to.

THE CLOSING: Buyers pay for homes that look livable and inviting, even though the furnishings will be moved out with the sellers.

Purchase contracts will vary depending on the type and location of the property and on whether the contract is a reprinted form used by a real estate broker or a document drawn by an attorney. But there are basic elements that should be included in any residential property sales agreement.

To be enforceable, a property sales contract must be written; oral agreements to sell real estate are not binding. The contract must identify the buyers, the sellers and the property. And it must establish a purchase price and the terms of the sale if the sale is not all cash.

The contract specifies the amount of the buyers' earnest money (good faith) deposit. The agreement usually provides for this money to be held by a third party, typically an escrow officer or an attorney. The deposit is applied to the purchase price at closing, or it's refundable to the buyers if certain terms of the contract (called contingencies) aren't satisfied. The deposit amount is negotiable, but local custom often prevails.

Most real estate purchase contracts will include at least two contingencies. A financing contingency makes the purchase conditional on the buyers' ability to obtain a loan commitment from a lender. An inspection contingency allows the buyers to have professionals inspect the property to their satisfaction. If the sellers are unwilling or unable to correct defects, the contract is voidable and the buyers' deposit is refundable.

A deposit could be forfeited by the buyers under certain circumstances, such as the buyers backing out for a reason not provided for in the contract.

The purchase contract should describe the sellers responsibilities which will include such things as passing clear title to the property; maintaining the property in its present condition until closing; delivering the property "broom clean" and free of personal possessions and debris; and making any agreed upon repairs to the property.

The sales contract should also specify who's responsible for paying which closing costs. Closing costs include such things as a brokerage commission, loan origination fees, title insurance and transfer taxes. Who pays these charges is usually dictated by local custom but they can be negotiated.

The purchase contract should clarify any items of personal property that will be included in the sale and any attached fixtures that will be excluded. The dates that title will transfer to the buyer and when possession will be delivered to the buyer should also be specified in the contract.

FIRST-TIME TIP: A final walk-through provision gives the buyers the right to inspect the property prior to closing. This allows the buyers an opportunity to confirm that the property is in the same general condition as it was when they agreed to purchase it. A walk-through can also be used for the purpose of assuring that the sellers have completed repairs they agreed to do, or that a home that was still under construction when the buyers purchased it is finished.

THE CLOSING: A real estate purchase contract is a complicated legal document. You should read and understand it before signing it, although many buyers never do. If you have any questions, ask your real estate agent or a knowledgeable attorney for an explanation. There are no stupid questions when it comes to buying real property.

Sounds incredible, but it could happen. And what's your defense? That you didn't deliberately conceal a defect? That you had no idea what kind of paint was on those windowsills? After all, the house had undoubtedly been repainted many times since it was built in the 1920s.

That may not be good enough. Not these days.

New laws require you to inform potential buyers or tenants of whatever you know about the presence of lead paint in any house built before 1978. (After that date, lead paint wasn't used.)

Yes, if you can honestly say "I haven't the slightest idea", that would be a perfectly legitimate notification. But these days the Environmental Protection Agency (EPA) expects you to go further than that.

You must also furnish buyers with an EPA booklet, outlining the dangers of lead paint, and your purchase contract must give them up to 10 days in which to investigate the situation in your home at their own expense. If they discover a lead problem, you cannot be forced to remedy it, but they may void the contract. (Buyers may agree to shorten the 10-day period or even waive this right entirely, if they prefer to proceed immediately to a totally binding contract. That happens in many cases.)

You can protect yourself by checking to make sure your real estate broker routinely provides the lead-paint booklet. Potential buyers or tenants must sign a acknowledgment receipt, which should be kept with other documents about your sale or lease. The EPA has started enforcing the requirement, inspecting real estate offices and levying fines for non-compliance.

Retaining a well-informed and ethical broker is a first line of defense.

Typically, buyers have homes inspected before they buy so that they are well-informed about the condition of the property. Of the many inspections a buyer might order, a "termite" report is a virtual certainty.

Local custom usually dictates who pays to correct wood pest damage during the course of a home sale. Sellers often pay to repair damage and infestation that developed during their period of ownership. Buyers usually take responsibility for items called in a report that are not active problems but that could become a problem in the future, like a tub that needs caulking.

Home sellers are wise to order a termite inspection report before they market their home. In areas where sellers pay to correct termite repairs, a pre-sale report lets sellers know how much they can expect to pay. It also provides information to the buyers that they will certainly want before purchasing the home.

FIRST-TIME TIP: Select a termite inspector the same way you would any contractor. Ask several people who recently had termite work done if they would use the inspector again. If you had your home inspected fairly recently consider using the same contractor, unless you had a bad experience.

In some states, termite inspectors don't contract to do repair work. In other states, most structural pest control companies do both the inspecting and the repair work. If you're using the same company to do the inspection and the work, be sure to talk to several people who had work done by the company.

A good inspector might not have the best work crews. In this case, you might want to use one company to do the inspection and another to do the repair work. If you're having trouble getting good recommendations, ask an experienced local real estate agent.

Make sure to use a termite company that specializes in your area. "Termite" problems tend to vary from one area to the next. So you should rely on a pest control contractor who is an expert in your location.

Sellers who are not planning on selling immediately should consider having termite repairs completed before they market their home for sale. Sometimes completing the termite repairs in advance will have the added benefit of improving the home's appearance -- if a deck is rotted or a bathroom linoleum floor is shot. The house will show better and you'll have a clean bill of health from the termite company to pass along to the buyers.

Sellers who have a presale inspection done just before listing their home for sale usually wait until the home sells to have the work done. Homes don't show at their best while work is in progress. Also, some buyers would prefer to take a monetary credit at closing for the termite repairs and complete the work themselves after closing.

The buyer's lender may require a notice of completion from the termite company indicating that the property is free of any active infestation or damage. If this is the case, the termite work can be done after a buyer for the home is found but before the sale closes.

THE CLOSING: Homeowners are advised to have termite inspections completed every couple of years. Periodic repairs should be completed so that minor problems don't turn into major defects.