Seller's Guide Setting the Price Preparing for
Sale The Offer Process
TEN COMMON HOME SELLER (and REPEAT HOME
BUYER) MISTAKES
- Buying a new home before you sell your
old one.
- Listing your home based on the price you
would like to get, rather than on market value.
- Failing to know the condition of their
home (by having appropriate inspections) before they list it.
- Putting a house on the market before it
shows well.
- Refusing to reduce a list price that is
too high for the market.
- Refusing to counter a low offer.
- Being present when the home is shown to
prospect buyers.
- Listing with a contingency to find a
replacement home.
- Setting up a complicated showing
procedure that discourages showings.
- Refusing to do anything to get your home
ready to sell.
SELECTING A LISTING AGENT
Your Listing Agent Should:
- Prepare a market analysis and marketing
proposal.
- Give your property the broadest marketing
exposure possible.
- Prepare a descriptive brochure about your
property with a color photograph or artists rendering of the home.
- List your property on the Multiple
Listing Service and the Internet.
- Hold a broker's open for local real
estate agents as soon as possible after the property is listed for sale.
- Keep you informed on local market
conditions.
- Following up on showing activity and give
you feedback from agents who showed your home to potential buyers.
- Send you copies of weekly advertisements
and other marketing materials.
- Tell you how you can improve the
marketability of your homes including reducing the price if market conditions
suggest it.
- Be available to consult regularly with
you.
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A SELLER'S GUIDE
to interviewing a Real Estate Agent to
sell your property.
Choosing the right Realtor for your home can
be confusing. It is especially difficult when you speak with several different
Realtors, and they all seem so convincing.
There is a way to determine who is the most
likely to succeed in getting your price and terms. The key is knowing the right
questions to ask. This is particularly important now, considering today's
Market Conditions!
The following list provides you with
questions to ask your prospective Realtor. The list will not only help you
select the right Realtor, but also get the very best from the one you choose.
- Do you work as a full time Realtor?
- Do you have an assistant to see that no
details are overlooked?
- How many potential buyers and sellers do
you talk with in a day? A week? A year?
- In what ways will you encourage other
Realtors to sell my home?
- After you make a property brochure and a
flyer on my property, how many copies will be distributed to other Realtors and
how often?
- Do you have references that I may check?
- Are you associated with a National
Referral Network that refers their buyers to you? Can you refer me to the top
agent in the town or state where I will be moving?
- How will you set my listing apart from
the crowd, do you have a U.S.P. (Unique Selling Proposition) for marketing my
property to Buyers?
- What is my property worth? What listing
price do you recommend? How did you arrive at that price? What will I net in
market?
- How will you assist in my relocation
plans?
- How will you assist in my new purchase?
- If necessary how will you assist my
tenants?
- Do you have a written Plan of Action
designed specifically to sell my property?
Asking Questions of the Realtor, and
evaluating the answers is an excellent way to determine who is the most likely
to succeed in getting your home sold. However just as important are answers to
the questions you may be asking yourself....
- Did the Agent explain all of my options
in today's market so that I can make the best decision for my family and me?
Decisions like: Should I even sell the property? Is it better to re-finance and
if so, what is the break-even point?
- Was the agent a Real Estate Consultant,
helping me with my options or just another salesperson wanting another listing
at any price without being concerned for my best interest, even if it meant
keeping my property?
- Was what the Agent had to say truthful,
honest and in my best interest-or just the same hype, hi-pressure and personal
promotion of we're the best, biggest fastest, we can get you the most or even
more money, I have a buyer now.
- Did the Agent have a true marketing plan
and a unique selling proposition that will attract qualified buyers to my
property? What was it?
- Did the Agent have a U.S.P. for my home?
One that would answer a qualified buyer question of, "Why should I buy, or even
look at your home as opposed to any other home, or anything else I could
do."
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SETTING THE PRICE OF YOUR
HOME
The three main factors to consider in
selling your home are location, condition and price...and they are all
related.
Location
Your home's location and setting influence
its value. A home inside a quiet subdivision sells for more than the identical
home on a busy street. Remote areas typically sell for less than closed-in
areas. Views, streams and trees usually enhance value. You obviously have no
control over location.
Condition
New homes enjoy a marketing edge over resale
homes because they are shiny and clean. Also, builders enhance their appeal by
offering model homes (clean, bright, decorated in current colors and amenities)
for buyers to examine. Our goal is to make your home as close to a model home
as possible... being sensitive to costs. You have nearly complete control over
condition and you increase value and decrease marketing time by being sure your
property is in the best possible condition.
Pricing
If IBM stock is trading between 104 and 108,
it does no good to insist on selling at 112. Likewise, your home must be priced
within the appropriate range. You must actually "sell" your property twice:
first to a buyer and then to an appraiser. The buyer is more subjective and
compares the amenities of your home to those of other homes in the same price
range. The appraiser is more objective and compares age, size and cost -
identifiable features in your home against other properties that have sold.
This is the one area where most sellers become emotional; it is easy to do with
so many agents sounding so convincing. Just remember it is your mission to
select the best agent-not the best price. A Realtor has no control over the
market, only the marketing plan. Never select a Realtor based on price. if you
hire the agent you like least, but who suggests highest price, you'd be
overpricing your home with the least qualified agent. If you are going to list
your home, do it with the best agent.
| WHY YOU SHOULD PRICEYOUR HOME
REALISTICALLY |
TIME
Chances are that your home will sell at its
fair market value. Pricing it realistically at the outset simply increases the
likelihood of a timely sale with less inconvenience and greater monetary
return.
COMPETITION
Buyers educate themselves by is viewing
homes as well as recent sales from the newspaper and Multiple Listing Service.
They know what is a fair price. if your home is not competitive in value with
those they have seen, it will not sell. Buyers typically look at homes within a
$10,000 price range. if your home is not priced within the correct range, it is
very likely will not be exposed to its potential or targeted buyers, or worse
yet not even be inspected by any buyers.
REPUTATION
Overpricing causes most homes to remain on
the market too long. Buyers, aware of a long exposure period, are often
hesitant to make an offer or even inspect your home because they fear
"something is wrong" with the house. Homes that are on the market for a long
time eventually sell for less than their fair market value if at all, and can
go through multiple listing periods.
INCONVENIENCE
| The Fact Of The Matter Is: |
PRICE
FACT
| THE
BEST CHANCE FOR SELLING YOUR PROPERTY IS WITHIN THE FIRST SEVEN WEEKS. STUDIES
SHOW THAT THE LONGER A PROPERTY STAYS ON THE MARKET, THE LESS THE SELLER WILL
NET. |
It is very important to price your property
at a competitive market value at the signing of the employment agreement. The
market is so competitive that even over-pricing by a few thousand dollars could
mean that your house will not sell. Interestingly, your first offer is usually
your best offer. Here are reasons for pricing your property at the market value
right from the start in order to net you the most amount of money in the
shortest amount of time.
An overpriced home:
- Minimizes offers
- Lowers agent response
- Limits qualified buyers
- Attracts the wrong type of buyers
- Lowers the prospects by lowering the
number of showings
- Less response from advertising & sign
calls
- Wastes advertising & marketing
dollars
- Limits Exposure
- Limits financing
- Increases complications in the
transaction
- The property becomes shopworn
- NETS LESS FOR THE SELLER
PRICE
FACT
| MOST
PEOPLE ARE TURNED OFF BY EVEN THE SMALLEST AMOUNT OF UNCLEANLINESS OR ODOR WHEN
BUYING A HOME. SELLERS LOSE THOUSANDS OF DOLLARS BECAUSE THEY DO NOT ADEQUATELY
CLEAN |
If your house is squeaky clean, you will be
able to sell your home faster and net hundreds, if not thousands, of dollars
more. If you are planning on moving, why not get rid of that old junk now so
that your house will appear larger? Make more space. Odors must be eliminated
especially if you have dogs, cats, or young children in diapers or if you are a
smoker. You may not notice the smell, but the buyers do! Most agents have a
difficult time communicating to their sellers about odor. By employing me to
get the most amount of money for you, the seller, do not take offense if I must
confront you about odor problems.
ACCESS FACT
| TO
SELL TOP SELLING AGENTS WILL NOT SHOW YOUR HOME IF BOTH, KEY AND ACCESS ARE NOT
READILY AVAILABLE. THEY DO NOT HAVE TIME TO RUN AROUND TOWN ALL DAY PICKING UP
AND DROPPING OFF KEYS. THEY WANT HOMES! |
The greatest way to show a house is to have
a key available in the lockbox. When your home is being shown, please do the
following:
- Keep all lights on.
- Keep all drapes and shutters open.
- Keep all doors unlocked.
- Leave soft music playing.
- Take a short walk with your children and
pets.
- Leave the premises.
- Wastes advertising & marketing
dollars
- Let the buyer be at ease and let the
agents do their job.
PAINT AND FLOOR
FACT
| PAINT
& CARPET ARE YOU BEST IMPROVEMENT INVESTMENTS FOR GETTING A GREATER RETURN
ON YOUR MONEY. |
Paint makes the whole house smell clean and
neat. if your home has chipped paint, exposed wood, or the paint looks faded,
it is time to paint. If your carpet is worn, dirty, outdated or an unusual
color, you may need to seriously consider replacing it. Many houses do not sell
because of this problem. Don't think that buyers have more money than you have
to replace carpet. They don't. They will simply buy elsewhere.
YARD FACT
| YOUR
FRONT YARD IMMEDIATELY REFLECTS THE INSIDE CONDITION OF YOUR HOUSE TO THE
BUYER. 50% OF THE BUYING DECISION IS MADE UPON SEEING THE CURB
APPEAL. |
In the D.C area, when the weather is warm,
people enjoy their yards. Make certain that the trees are trimmed so the house
can be seen from the street. Have the grass mowed, trimmed and edged. Walkways
should be swept. Clean away debris. This all adds to curb appeal. If a buyer
does not like the outside, that person simply drives on, to buy another house,
and is lost forever.
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HOW TO PREPARE YOUR HOME FOR
SALE
When you decide to sell your
home, you can improve its marketability by showing it to its best advantage.
Minor repairs, cleaning and a little decorating can create a lasting
impression. If there is major work to be done, your sales associate may
recommend postponing showing your home until it is completed. Here are a few
things that will help ensure a faster sale:
- Curb appeal is very important. Keep the
lawn in immaculate condition. Prune all shrubbery and trees. Replace broken
shutters and torn screens. Inspect the condition of all gutters and drainpipes.
Repaint or restain the front door to create the right first impression.
- Make sure that all the rooms of your home
are bright, clean and appealing. Discard damaged furniture and badly frayed
rugs.
- Painting the interior and exterior is a
small investment that pays significant dividends in making your property look
fresh and new.
- Kitchen appliances should be spotless and
in perfect working order. Counter space should be open and uncluttered.
- Replace or repair anything that sticks,
squeaks or drips.
- Your toilets, sinks and drains should be
clean and clear.
- Remove excess furniture and store
unnecessary items. Also clear your storage spaces and garages of unnecessary
items.
- When your home is being shown to a
prospective buyer, open the curtains to show how inviting your home looks. Make
sure your pets are completely out of the way. Avoid having several people
present during times when the house is being shown; this makes the property
look smaller.
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THE OFFER PROCESS
- The agent representing the buyer presents
the offer to you. Your realtor will be present to ask, as well as answer,
questions for you.
- After all of our questions have been
answered by the buyer's agent, we will privately review the offer and make a
decision to accept, or counter the offer.
- Items to pay special attention to:
a. Interest rate should be close to prevailing rates.
b. What
is the length of time for loan approval?
c. Time frames on all
inspections, termite, home inspections, and all disclosures.
d. Are
there limits of liability on all repair work? e. Who is paying for all
repairs? f. The length of the contract. The "under contract" period and
estimated closing date. g. Are their any contingencies? How do they affect
you? h. Recalculate your bottom line before you make a decision.
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