Home Selling Information

Why Reneé

Use a RealtorŪ, or sell it Yourself?

• When selling your home, you want to make the most money you can.   To do that, you generally have to sell fast.   If your home sits on the market for several months, buyers will wonder what's wrong with it.   Furthermore, it may be easier to sell your home while you're still living in it.   Your furnishings convey a personal warmth that is sorely lacking in bare walls and floors.
• Maximum exposure - The key to selling fast and getting the top dollar is exposure.   The more people who see your home, the sooner you will find a willing buyer.   How do you get the most exposure?   If you sell the home yourself, you will get some exposure by putting up a sign, running several ads, and telling all your friends.   On the other hand, if you work with Reneé you will get instant and massive exposure to a large number of prospective homebuyers.   Here's why.
  • A RealtorŪ generally takes part in the Multiple Listing Service (MLS), if one is available.   This service, usually a computerized system operated by the local Association of RealtorsŪ, compiles information about listed properties in the area and distributes it to member companies.   As a result, when Reneé lists your home, RealtorsŪ from other companies learn about your home and try to match it with buyers they are working with.   The buyers may include people from out-of-town who are trying to relocate to your area.
  • A RealtorŪ can speed the selling process in other ways:
    • By specializing in real estate, a RealtorŪ knows market values and thus can help you set a competitive price for your home.
    • A RealtorŪ can free you from the hassles associated with showing your home and screen out people who are merely curious.
    • A RealtorŪ is objective when negotiating with buyers and experienced in reading the fine print of contracts.
    • By staying on top of the mortgage market, a RealtorŪ may know how to wade through financing muddles and clinch a sale.
    • Selling a home is not something that everyone can do in their off hours.   It's a specialized service best done by a professional.

Setting a Price

• As you interview Reneé, she will suggest a listing price on your home.   Only you can decide what price to set, but you want it to be realistic.   The listing price is critical.   Set it too high, and you may not find a buyer.   Set it too low and you cheat yourself out of money.
• Appraisal - Regardless of what you originally paid for your home and the cost of improvements you have made, the price your home can command is what the market will bear at the time you decide to sell it.   You may consider hiring an independent real estate appraiser.   An appraiser has specialized training and experience.   Don't rely on assessed valuations made for tax purposes.   Such valuations may not be reliable indicators of value as these valuations are made by mass appraisal techniques.
• Comparative market analysis - Whether or not you get an appraisal, Reneé can develop a comparative market analysis.   This analysis will describe homes in your area that have recently sold.   The analysis may compare specific features of your home to others - the value of a corner lot, a lake view, or an extra bedroom, for example.   The analysis may also point out market fluctuations caused by the opening of a new school or business, for example, as well as long-term trends.
• If you do not have a good idea, based on reliable data, of what the price your home can generate, you may decide to set a higher price thinking that if it doesn't sell at first, you can come down.   However, if you set it too high, you may keep away buyers who are looking at comparable homes with lower prices.   Lowering the price later sometimes gives your home a negative image.   On the other hand, you don't want to set the price too low.   You may be tempted to set a low price because you feel the pressure of transferring to another town, or you're afraid that your worn carpet will turn away buyers.   Be realistic and get advice from Reneé.
• Net proceeds - Once you've decided on a price range, Reneé may help you calculate an estimated amount you might net from the sale.   If you have owned your home for several years, you may have built up a sizable equity.   Equity is the difference between the value of your home and the balance on your mortgage. After subtracting what you owe on your mortgage, ask Reneé what costs you will incur in closing.   These may include title fees, taxes, a penalty for prepaying your mortgage, brokerage commission, attorney fees, and charges for preparing and recording documents.   Finally ask your tax adviser or attorney about the tax implications of your proposed sale.

Signing a Listing Agreement

• When you choose a RealtorŪ, you will be required to sign a listing agreement - a contract in which you agree to allow the RealtorŪ to sell your home during a given period.   The agreement says that you will pay the RealtorŪ a fee when you sell your home.   Most RealtorsŪ are independent contractors who work for a company operated by a licensed real estate broker.   (A salesman is licensed by the state to sell real estate through a broker.   A broker is licensed by the state to sell real estate to others for a fee and employ salesmen and other brokers.)
• The amount of compensation you pay a broker is negotiable, but the RealtorŪ will generally follow the company's policy regarding compensation.   The amount of the fee will be spelled out in the listing agreement.
• Exclusive listing - Most RealtorsŪ will ask for an exclusive right-to-sell listing.   This means that you will owe the broker a commission regardless of who finds a buyer during the listing period.   In other words, if you decide to sell the house to your cousin, your broker still gets a commission.   The advantage of this kind of arrangement is that the broker is motivated to work harder to sell your home.
• It's possible that a RealtorŪ from another company will find a buyer for your home.   In that case, your broker is the listing broker, and the second agent is the selling or cooperating broker.   Many times your listing broker will agree to pay the cooperating broker a fee from the amount you pay the listing broker.   Your listing broker cooperates with other brokers who procure buyers interested in your property and offers to compensate the other brokers for procuring a buyer.   Cooperating and compensating other brokers is discussed in the listing agreement you sign with the listing broker.
• Length of listing - The listing agreement will specify how long you agree to list your house with a company.   Your RealtorŪ will probably suggest an average time that homes like yours are on the market.   You want a period that's long enough to motivate your RealtorŪ to advertise your home and respond to buyers, yet short enough to allow you to change to a different company if you become unhappy with the RealtorŪ's service.   Remember that the listing agreement is a contract.   You should get a copy for your records.   Your RealtorŪ is bound to the terms just as you are.   You can expect the RealtorŪ to keep appropriate information confidential and effectively market your property.

Marketing Your Property

• Preparing your home - In preparing your home for viewing by prospective buyers, remember that people buy on emotions.   Your home has to feel right, or buyers will look elsewhere.   Buyers want to be dazzled.   Ask your RealtorŪ and some honest friends to look at your home objectively and suggest ways to make your home more inviting and salable.   Consider both the exterior and interior.   Since you will be appealing to buyers' feelings, you need to pay attention to detail.   An extra $50 you spend on red geraniums or new bath towels might mean a significant increase in a buyer's offer.
• Clean your home thoroughly and make minor repairs such as tightening towel racks and gluing wallpaper edges.   For larger repairs, consult your RealtorŪ as to whether repairing the item will generate a good return on the sale.   Repainting the woodwork may be worth it, but replacing the carpet may not.   One safeguard is to hire a professional inspector to examine your house for structural and mechanical defects.   By having an inspection early, you can avoid surprises and have time to get repairs made.
• Honesty and candor - If your home has a major problem that you don't intend to correct, be candid about it.   For example, don't paint over the water marks on the ceiling to hide a leaky roof.   Buyers will find out about the problems anyway, especially if they are smart shoppers and hire professionals to inspect your home.   In an age when lawsuits are as common as family sit-down dinners, it pays to be open about everything.   Some buyers may turn up their noses at your sagging staircase, but others will see it as part of a redecorating scheme.
• If you're really worried about repairs or failures of mechanical systems, consider buying a residential service contract.   A residential service contract is an agreement with a company that will repair certain items in the property if such items fail to function or are in need of repair (for example, air conditioning unit, heating equipment, plumbing system, etc.).
• Soon after obtaining a listing on your home, the RealtorŪ will enter the listing with MLS, set a sign in your yard, and place a keybox on your door.   The keybox enables member RealtorsŪ to show your home to buyers when you are not home.
• Attracting and screening buyers - As part of the overall marketing strategy, your RealtorŪ may arrange a tour of your home for local RealtorsŪ and perhaps schedule an open house for the public.   Your RealtorŪ may also run ads in the local newspapers and other publications.   Being an expert at matching prospective buyers with homes for sale, your RealtorŪ may target advertising to certain audiences.   For example, if your home is near a lake, the RealtorŪ may run ads in recreation and sport magazines.   As responses come in by telephone and referrals, your RealtorŪ will screen out sightseers and half-hearted inquirers and make appointments with serious prospects.
• When the showings begin, keep your home clean and ready.   Your RealtorŪ will try to give you advance warning before showing your home, and other RealtorsŪ will do the same.   But sometimes you will receive little or no warning, so be prepared.   If people drop by and are not with a RealtorŪ, it's best NOT to show your home to them.   Ask for their names and phone numbers and to refer them to your RealtorŪ.
• Purposeful absence - When a RealtorŪ comes to show your home, it's best if you are not present with them.   Many buyers feel like intruders when the owner is present; they tend to hurry away.   Letting the buyers walk through your property at their own pace will help put buyers at ease.   They will feel free to look around and ask questions.   If you must be there, however, let the RealtorŪ handle the showing.   Sit quietly in the living room or on the patio.   Be courteous, but avoid engaging the buyer in conversation.   The RealtorŪ needs the buyer's complete attention to show your home properly.
• Periodic reports - After showing your home, the RealtorŪ will give you periodic reports on the responses of certain prospects.   If buyers respond favorably but not enough to make an offer, your RealtorŪ may explore certain features of your house in greater detail.   Learning that the beveled glass in your front door came from your great aunt's attic, the RealtorŪ may be able to pitch your home to an aspiring antique collector.   If buyers mention a problem repeatedly, the RealtorŪ may shift to a different class of buyer or talk to you about possible remedies.   At some point, you may have to reconsider making a repair or adjusting the listing price.
• Fair Housing - RealtorsŪ are required by law to make your property available to all persons without regard to race, color, religion, national origin, sex, disability or familial status.   Your RealtorŪ will not discuss any matter than is related to or potentially may discriminate against any person.

The Offer

• When a buyer makes an offer to purchase your home, your RealtorŪ will contact you promptly.   The RealtorŪ will scrutinize the document, review it with you carefully, and answer your questions.   The written offer is important because it lays out all the terms of the proposed transaction and will become a binding contract if you sign it.   The offer states the price the buyer is willing to pay and the financing terms, such as assuming your loan or arranging a new loan.
• The offer may be contingent on the buyer's selling a home first, or obtaining an inspection.   Ask the RealtorŪ how these terms affect you and whether the offer is reasonable and in line with the market.   The offer describes the property, states who pays for which closing costs, and specifies dates of closing and possession.   Along with making the offer, the buyer will place some earnest money as a sign of good faith.   The earnest money will be kept in an escrow account and applied to the buyer's down payment or closing costs when the sale closes.
• Your options - In reviewing the offer, you have three options: accept, reject, or make a counteroffer.   A counteroffer is a rejection of a buyer's offer with a simultaneous offer from you to the buyer.   In making your decision, carefully review the figures compiled earlier to determine your net proceeds.   Because the terms and estimated closing costs may be quite different from earlier calculations, you will want to discuss the possibilities with your RealtorŪ.   You are also encouraged to seek the advice of an attorney and a tax adviser.
• Seller's Disclosure - In residential sales, a seller will deliver a Seller's Disclosure Notice to a buyer on or before the effective date of a contract to purchase the property.   The notice is required by law to be delivered.   It provides important information about the seller's knowledge of the condition of the property.   Complete the notice to your best knowledge and belief.   Your RealtorŪ will most likely ask that you complete the notice at the time the listing is first taken.   Copies of the completed notice will be made available to the prospects looking at your property.
• Lead-Based Paint Disclosure - If your property was built before 1978, federal law requires that before a buyer is obligated under a contract to buy the property, the seller shall: 1) provide the buyer with a lead hazard information pamphlet (as prescribed by EPA); 2) disclose the presence of any known lead-based paint or hazard; 3) provide the buyer with a lead hazard evaluation report or records available to the seller; and 4) permit the buyer to conduct a risk assessment or inspection for the presence of lead-based paint or hazards.   A contract for the sale of property built before 1978 must contain a statutorily prescribed Lead Warning Statement to the buyer.   Your RealtorŪ will provide you with the forms necessary to comply with their law and will suggest procedures to follow in order to comply.
• Accepting the offer - Once you and the buyer agree on terms and sign the contract, the buyer will generally have to find a lender and apply for a loan.   Your RealtorŪ may monitor the loan process, which could last several weeks.   During this time, your RealtorŪ will also be busy coordinating other arrangements to prepare for the final sale.
• Title search - As part of the process, the title company will order a survey of your property and research the title to your home, making sure the chain of title is clear.   Clearing the title may require paying off liens - that is, any monetary claims - against your property.   Examples are mechanic's liens, unpaid state and federal tax liens, court judgments, and probate considerations (if a co-owner has died).   The product of the title search can be in the form of title insurance, abstract of title, or certificate of title, depending on what is commonly used in your area.
• Inspection and repairs - If the buyer requires inspections of your home, your RealtorŪ may coordinate the scheduling of inspectors.   A buyer may hire an inspector to review many items in the property such as the structural components, mechanical items, electrical systems and plumbing systems.   The inspector will report to the buyer the items that the inspector finds to be in need of repair.   Most likely the buyer will provide a copy of the inspection report to you and may ask you to complete certain repairs.   Do not be surprised when the inspection notes some items in need of repair.   An inspector is trained to see items and defects that are not obvious to you and your RealtorŪ.   No matter how new or well maintained a home is, an inspector may very well find some items in need of repair.

Closing the Transaction

• The sale is formally ended at the closing table.   In most transaction, the closing lasts less than an hour and often occurs at the title company office.   Your RealtorŪ and the buyer's agent may be present, and a title company officer or escrow agent will preside.
• Basic documents - The sale actually consists of two transactions: 1) transferring the property to the buyer and 2) paying off the existing mortgage on your home (or allowing the buyer to assume your mortgage).   To transfer the property, the title company will present documents proving that you have the title.   Proceeds of the sale may be disbursed at closing or shortly thereafter, once all paperwork and verifications has been processed.   When you give your house key to the new owners, the sale is completed.