Home Selling Information:
One of the easiest ways to sell your house for the right price quickly,
is to find a Realtor who will work for you, and with you, to sell your
property. The key to finding the best Realtor is to research and
interview several, and then choose the one that you trust the most.
What should you be asking and looking for?
Here is a list of questions to ask to help you find the best Realtor for you.
Question # 1: How will you sell my house?
This question can be broken down into the following:
- How will you advertise my home and in which markets?
- How successful is your advertising?
- Do you use newspaper, real estate magazines, a multiple listing service, or the internet?
Your Realtor should be able to describe a marketing plan without much
hesitation. He/She should be able to name publications and list website
addresses that he/she uses regularly.
Question # 2: How long have you been a Realtor (or real estate agent)?
You want a Realtor who is experienced in all aspects of business,
marketing, negotiation, and contract processing through closing;
despite any difficulties that might arise.
Question # 3: Is the Realtor a professional?
Do not hire a Realtor just because he/she is a friend. You are dealing
with your most precious and valuable possession - your home. You must
hire someone who handles and manages your best interests and your
investment with diligence, integrity, honesty -and most of all -
believes in full-time, old fashion customer service. There is nothing
more stressful than not being able to reach your agent when you need to
the most. And, there is nothing more frustrating than to have your
Realtor disregard what you want or need because he/she believes that
he/she knows what is best since they are the "professional". Remember,
your Realtor is working for YOU and should strive to accommodate you
and your needs - not the other way around!
Question # 4: Can you trust your Realtor?
You must have a professional trust between yourself and your Realtor.
After all, you and your Realtor have formed a partnership where you
both have a vested interest in the outcome - an equitable and timely
sale of your home. A Realtor's responsibility is to market your home
aggressively, to insure that as many potential buyers view your home as
is possible, to handle all negotiations with the buyer and his/her
Realtor, and to communicate to you - as thoroughly as possible - each
step of the selling process. Your responsibility is to take advantage
of your Realtor's experience and expertise by carrying out your
Realtor's plan of how to stage your house for viewing by potential
buyers and how to keep it ready for prospective buyers at all times.
Question # 5: Is your Realtor's commission negotiable? (What percentage commission should you expect to pay?)
A typical commission for a Listings-Only Agent is between 2% - 3% and
is agreed to in an Exclusive Seller's Contract. This means that your
Realtor will receive this commission no matter who sells your home. The
only exception to this is in the event that you find your own buyer. A
typical commission for a Full-Service Agent (an agent that represents
both you and the buyer) is between 6% - 7% of the selling price of your
home. Most Realtors are open to negotiate this percentage since they
will receive a commission for both the listing and the selling of your
home. Of course, it would be beneficial for your Realtor
to be an agent for both you and the buyer. In that situation, your
Realtor would receive a larger commission from the sale of your home.
However, what you want in a Realtor is someone looking out ONLY for you
and your best interests; not you and the buyer - just you! It is hard
enough for a Realtor to competently service one client to his/her best
ability. It is next to impossible for him/her to meet all the needs of
two clients. If your Realtor represents both you and the buyer, and is
responsible for all parts of the sale; at best something could be
overlooked that is important. At worst, your Realtor could be willing
to negotiate away one of your requirements in order to complete the
sale. Although, that would not always be the case, it becomes a
possibility. That would definitely not be in your best interests and is
not how you need to be represented.
If you're buying a home as well as selling, you might be able to
negotiate a lower commission by using the same agent for both the sale
of your old house and the purchase of your new home.
Remember that you are the hiring party - that puts you in control.
Never sign with a Realtor that you don't trust, no matter how good the
deal he or she offers you seems. As in most other things, if it sounds
too good to be true, it probably is.
Getting the Highest Price in the Shortest Time:
In order to get the highest price in the shortest time, you need to
know how to market your home. The better you market your home, the more
offers you will receive. The more offers you receive, the better the
chance for you to sell your home for the price and terms you want.
The most important factor in marketing your home is pricing it
correctly. Your price should be adjusted to reflect the current market,
as well as, your property's worth. The goal is to set the asking price
at fair market value in order to generate as many people as possible
who will make an offer on your property. Otherwise, if you think your
home is worth more than the market will allow and set the asking price
accordingly, you will soon discover that any offers will be few and far
between, if any.
Another important factor in getting the highest price in the shortest
time is the condition of your home. Make sure that your home looks
ready to be sold. Fix any defects (peeling or faded paint, cracks,
stains, etc.) Condition alone can sometimes prompt fast buying
decisions. Not only should you fix any defects, but consider upgrading
your home by making major repairs and cosmetic improvements before
selling. A nice looking home triggers the emotional response that can
lead to a financial response.
A third factor in getting the highest price in the shortest time is to
learn how to negotiate the best terms for all parties involved. Terms
are another factor which may be adjusted to attract buyers. If you
insist on getting your asking price, think of what you can offer to the
buyers. For example, any improvements you could make or even offering
seller financing at a lower-than-market interest rate on a portion of
the sale price. Convince them why they should be paying the price you
have set.
Lastly, get the buzz out about your home. List your house with a hot
agent that ensures your house is listed on the MLS and on the internet.
On your own, get the word out. It should be visible to any passerby
that your house is for sale. Use any means available to you whether it
be signs, local advertisements or you telling friends/
family/acquaintances.
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Making a Good First Impression:
In order to attract buyers to your home, you need to show it in top
condition. A good first impression can influence a buyer into making an
offer. It influences a buyer emotionally and visually. In addition,
what the buyer first sees is what they think of most when they consider
the asking price. A good first impression leads to the opinion that the
home is worth what you are selling it for.
A bad first impression weighs in just as deeply. Don't show your
property until it's all fixed up. You do not want to give buyers the
chance to use the negative first impression they have as a means of
negotiation.
Since it is sometimes hard to separate your personal and emotional ties
for your home from the actual value of the property itself, what you
need are objective opinions. Real Estate Agents who see houses everyday
can give solid advice on what needs to be done. Consider what
architects or landscape designers have to say or ask around for the
opinions that other people have of your home.
Typically, there are some general fix-ups that need to be done both
inside and out. As a seller, you should consider the following:
- Landscaping - Has the front yard been maintained? Are the areas of the house that are visible to the street in good condition?
- Cleaning / Repaving Driveway - Is your driveway cluttered with toys, tools, trash etc.?
- Painting - Does the interior / exterior look like its been taken care of?
- Carpeting - Does the carpet have stains? Does the carpet look old and dirty?
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Know Why You are Selling:
If you know exactly why you are selling, then it is easier for you to set the right plan of action to reach your goal.
If you are a seller who needs to close a sale as quickly as possible,
then you should know that getting the highest price possible should not
be one of your priorities. It does not mean that you won't or can't get
the highest price, but it means that the price should not be the
deciding factor. A buyer who can give you a quick closing time should
appeal much more to you than a buyer who offers more money but only at
the end of a lengthy negotiation and closing period.
In terms of your selling price, it is always good to know what the
lowest price is that you will accept. This will help to eliminate some
of the offers that you find simply offensive or ridiculous. Even though
you should consider all offers seriously and take into consideration
the terms of each offer; sometimes, if you know the bottom line and are
strict about it, you can save yourself a lot of time and trouble.
Once you know what your limits are and why, discuss them with your
agent so that they can help you set your goals realistically. If you
decide to list your home on your own, make sure you do research on the
current market and you get the proper advice you need in terms of legal
issues, etc. The key is to be realistic and to know what your goals are
so that they can be met.
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Setting the Price
The price is the first thing buyers notice about your property. If you
set your price too high, then there is a higher chance of alienating
buyers. You want your house to be taken seriously, and the asking price
reflects how serious you are about selling your home.
Several factors will contribute to your final decision. First, you
should compare your house to others that are in the market. If you use
an agent, he/she will provide you with a Comparative Market Analysis
(CMA). The CMA will reflect the following:
- Houses in your area and price range sold within the last half-year
- Asking and Selling prices of houses
- Current inventory of houses on the market
- Features of each house on the market
From the CMA, you will find out the difference between the asking price
and selling price for all homes sold, the condition of the market, and
other houses comparable to yours.
Also, try to find out what types of houses are selling and see if it
applies to your area. Buyers follow trends, and these trends can help
you set your price.
Always be realistic and set your price to reflect the current market situation.
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Plan of Action
-
Analyze why you are selling - If you understand your motives, you will
be able to better negotiate to achieve what is most important to you;
whether it be a quick sale, high price, or somewhere in the middle.
-
Prepare you home for the buyer - Maximize the strengths of your
property and repair anything that will be a weakness. You want the
buyer to have a good first impression that he walks away with.
-
Find a good real estate agent that understands your needs - Make sure
that your agent is loyal to you and can negotiate to help you achieve
your goals. In addition, they should be assertive and honest with both
you and the buyer.
- Be prepared for negotiation - Learn
and understand your buyer's situation. What are their motives? Can you
demand a big deposit from them? Try to lock in the buyer so that the
deal goes through.
- Negotiate for the best price and the best terms - Learn how to counter offer to get more from every offer.
-
Make sure the contract is complete - Be honest with your disclosures.
You do not want to lose the deal because you were lying by diminishing
your home's defects. Insist the buyer get a professional inspection.
This will protect both you and the buyer.
Finding the Right Agent
Not all agents work the same way. The most important attribute of an
agent is that he/she is well connected to the real estate industry.
He/she should know the market and provide information on past sales,
current listings, his/her marketing plan, and at least (4) solid
references. In addition, you also want to look for an agent that is
honest, assertive, and best understands your needs.
Try to go with a local agent. They can better serve your needs. They
are familiar with the local market condition, what the local prices
are, and what's hot or not in your community.
Considering Offers
When reading an offer, keep in mind that you are out to get the best
price AND the best terms for you. If you focus solely on the price, you
may overlook terms that could be favorable to you as a buyer.
Some terms that may work in your favor:
- Higher-than-market-interest in a second mortgage for your home.
- Buyer will pay for most/all of the closing costs.
- Buyer will be responsible for all repairs.
- Quick Close - Buyer is pre-approved and ready to close in a short time.
- All-Cash deal.
When reading through offers, remember to look at the whole package.
Take the time that you need to assess what is being offered and if it
meets your needs.
Insist on a Home Inspection
A professional home inspection protects both you and the buyer. It
allows both you and the buyer the opportunity to learn about the
property's defects.
A home inspection usually covers the following:
- Plumbing Conditions - if there is leakage or clogging.
- Roofing Conditions - the extent of deterioration, if there is leakage.
- Electrical Conditions - if there are inadequate circuits or potential fire hazards.
- Structural Problems - if there are problems with the underlying foundation of your home.
-
As a seller, the home inspection reports protect you because it
establishes the actual condition of the property at the time of sale.
