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The Top
Real Estate Professionals
All Across the USA !
A Glossary of Real Estate Terms Real Estate Credentials/Designations
Ten Steps to Selling A Home
Work with a
Real Estate Professional
Selling real estate is a complex and major transaction that involves many details. An
experienced real estate agent can guide you through the process and help you avoid costly
mistakes. A Seller's Agent is the one who represents your needs in the transaction. Most
likely the buyer will have a Buyer's Agent to represent them.
Determine the Asking Price
Obtain a "Comparable Market Analysis,". This report will show you homes in your
area that are similar to yours that have sold or are currently on the market. Before you
determine a price, decide first how long you are willing to wait before you get an offer
to purchase from a buyer.
The price you pick will strongly influence how long your home is on the market. If you set
a price that is too high, then the "Law of Diminishing Returns" states that:
after your home has been on the market too long, home buyers will assume that something is
wrong with your home or your price, and you will usually receive less than what you would
have received if you had priced it correctly to begin with. The first question a buyer
should askk prior to making an offer is,"How long has the home been on the
market?" The other issue is that you don't want to put yourself in a position of
needing to sell. Approximately 80 percent of your showings will be during the first 3
weeks on the market. So pricing is very important and you should base it on the following:
The seller sets the price of the home, but ultimately, the buyer determines the value.
The Listing Agreement
The Listing Agreement is an agreement between you and your real estate agent that
allows the agent to represent you as your exclusive Seller's Agent. It covers the services
to be perform, the fiduciary duties, the length of the agreement, the listing price and
terms, inclusions, exclusions, any special instructions you might have as far as showing
your home, or special needs for your animals while your home is on the market, etc.
The Marketing Plan
The objective will be to sell your home for the highest price in the shortest possible
time. In order to achieve this objective, consider the following:
Determine all possible avenues of advertising to gain maximum exposure locally, regionally, nationally, and worldwide: newspaper, magazine, and placements in numerous locations on the Internet, with pictures of the inside and outside. We will decide if we need to do a virtual tour also.
Preparing and Staging Your Home
To ensure success you must prepare your home for the sale. It is important to view your
home objectively if you want to maximize your profits. First impressions are lasting
impressions. The exterior of your home often determines how the buyers will view the
interior, so make sure your front entrance is clean and inviting. Paint or replace your
front door if it is faded or worn. Paint any shutters, trim, or any other outside features
showing signs of wear.
Buyers often see the surface condition of your home as a sign of what's underneath, so
keep windows and floors clean. Refinish or replace worn woodwork. If you can, repaint any
colored walls with a neutral color. Check and replace caulking in bathtubs and showers.
Accentuate the positive, open draperies and curtains to let in the most light, and remove
all unnecessary clutter. This will make your home appear larger and it will be easier for
the buyer to visualize their things in your home. Also remove any excess furniture and
place it in the basement or garage.
It is very important if at all possible for you to be gone when there are showings. This
will allow the buyer to feel more comfortable and they will spend more time looking. It is
important to have a place for your animals during the showings.
If you happen to be there when the buyer and their agent come, do not discuss the price,
terms, possession, or other factors with the buyers.
If there are any major issues you are concerned about, it might be a good idea to have a
professional Home Inspector come out and give any recommendations before starting to
market your home. This will put your mind at ease.
Getting an Offer and Negotiation
The time will come when a buyer will fall in love with your home and wish to make an Offer
to Purchase. The Real Estate Commission provides standard Purchase and Sale forms that
Realtors must use to write an offer. The Buyer's Realtor will then bring the offer to your
agent who will present it to you. It is recommended that your agent inquire about the
current status of the Purchaser's loan and other financial information to help you make a
decision. You can either accept, reject, or counter the offer. Once you and the buyer have
agreed in writing, the agreement becomes a binding contract. Your home will then be put
"Under Contract." You may continue to show the home if you wish and take back-up
offers.
Buyer's Home inspection
The buyer of your home will probably want to hire a Property Inspector to inspect the
condition of your home. The contract will state how long the buyer has to complete the
inspection and inform you of any unsatisfactory conditions. Allow about 2 hours for the
inspection. It is better if you leave while the inspection is taking place. The Buyer's
Agent will assure that your home is secured after the inspection. There are sometimes some
items the buyer will request you to take care of prior to closing. You will have to come
to an agreement with the buyer to keep the contract in force.
The Title Insurance
The contract states that you agree to provide the buyer with a Title Policy to insure
clear and clean title.
The Title company will also provide the buyer with a set of covenants, if there are any,
and a Tax Certificate will be provided by the title company on your behalf showing the
status of all property taxes.
The Appraisal, Survey, and Final Loan Approval
The buyer's lender will order an appraisal to determine the value of your home. The
appraiser will measure your home and take pictures of the exterior, front, and back. The
appraiser will need to come inside to measure rooms and will look at the condition of your
home.
The appraisal is a cost paid for by the buyer or buyer's lender on their behalf.
All mortgage lenders require a survey of the property prior to closing. The survey will
confirm that the property's boundaries are as described in the purchase and sales
agreement. The surveyor will not normally need to come inside your home; he will be able
to do all his work from the outside. He will then issue a certificate based on his
finding. This will also show if you have any encroachments of any kind. The survey is the
buyer's responsibility to pay for.
Once these items are complete, the lender will then issue a final Loan Commitment Letter
as stated in the contract.
The Final Walk-Through and The Closing
The buyer and their agent will do a final walk through either the day of closing or the
day before. This is so the buyer can make sure everything is in working order and in the
same condition as when the contract was signed.
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