Sellers Guide
|
|
There are a number of steps to selling any house ––
and you've just taken the most important one: You've contacted Long
& Foster's team of experts to help you. Experience has taught
us that every home sale is unique. Yet every sale ––
shares a common process. For specific answers to your specific situation,
we encourage you to consult your agent, who is happy to assist you.
After all, we want you to get the best selling price in the shortest
time.
---------------------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------------------------
Home Services Connections
Home
Service Connections™ is your one-stop-shop for all the
home and move related needs you may have. This service provides
24/7 access to a full database of services and licensed and insured
service providers. We can assist with utility connections, moving
services, plumbers, painters, electricians, contractors and much,
much more. Also, we staff a call center from 8:30 am to 5:30 pm
Monday through Friday. One toll free call to 888-447-4244 will have
you working with one of our experienced Home Service Coordinators.
Putting Your House On The Market
The first step toward putting your house up for sale is to meet
with a real estate agent at your home. What we call the "listing
appointment." But beforehand, it's important to understand
"who's who" and how brokers may cooperate to sell your
house.
A Little Homework
Before the listing appointment, both the home seller and the listing
broker will prepare in the following ways: the seller can itemize
what he/she feels are the best and worst features of the house and
the agent can prepare a comparative market analysis, showing the
homes in the neighborhood which are competing for the buyers, those
which have recently sold but haven’t gone to settlement and
those recent sales which have settled and which contribute to a
realistic sales price environment for your home.
There's No Place Like Home
At the listing appointment, the listing broker will want to inspect
the house and yard to become familiar with its special features.
You have probably enjoyed living in your home and have been pleased
with its many unique features. Your listing broker will want to
tell prospective buyers about the special features of your home
and neighborhood. Be ready to be specific about schools, day-care,
nearby Metro, and other desirable community features, as well as
home features not readily apparent.
Remember, prospective buyers will be "comparison shopping"
and keenly aware of subtle differences in houses for sale in the
area. Be sure to tell your listing broker why yours is special––from
any home remodeling to afternoon winter sunshine.
Demand Sets Price
After conferring with the listing broker on market conditions,
comparable nearby sales and listings, and available financing, the
home seller will set the listing or "asking" price for
the house.
A common definition of market value is: "What a ready, willing
and able buyer will pay, at a price a seller will accept."
Metropolitan area buyers are sophisticated. They've already been
shopping, and when they see your home they'll be comparing features
and financing.
The rule of thumb that a house priced over 5% of the market value
discourages offers.” A buyer who wants a higher price expects
“more house,” and will not make an offer because it’s
just not the kind of house he/she wants. Therefore, they simply
won’t make an offer and the house will languish on the market.
We say, “A well priced house is half sold.” Getting
the price is very important, but getting to settlement is the “...rest
of the story.”
A fair market value will be determined by comparing the property
with similar properties which have recently sold and (in some cases)
with similar properties currently on the market. Experience in the
industry has proven this "market analysis" approach is
more accurate than the "replacement cost" or "potential
rental income" methods.
Sample NET SHEET
Based on this sales price, the listing broker will go through
a worksheet that estimates the "net cash" from the sale.
Simply, this exercise subtracts anticipated charges paid by the
seller from the sales price. A copy of the "net sheet"
is left with the home seller. (An itemized list of typical selling
costs is presented in the "Settlement" chapter, which
is the stage when these charges are paid.)
Financing Strategy
No sale can be completed without financing. That is why it is
generally to the home seller's advantage to appeal to the greatest
number of home buyers by accepting the greatest range of financing
plans. The listing broker will explain the basic differences between
VA (Veterans Administration), FHA (Federal Housing Administration)
and conventional financing, as well as explain "discount points."
What is a Point?
A point is one percent of the amount of the buyer's mortgage loan.
For example, if a loan is $100,000, one point is $1,000. Lenders
charge points to increase the yield on their loans. On all loans,
home buyer and home seller may share the charges by mutual agreement.
Property Profile Folder–– Fact Sheet with disclosures
and disclaimers
To enable the listing broker to prepare a folder of information
on the property, the home seller needs to provide a number of documents
and information specific to the location and jurisdiction. Because
the list is long, you can understand why it's best to collect the
papers before the listing appointment. These materials may include:
Well and Septic Inspection
If property is on septic/well, current inspections by local health
authorities are required while home is occupied. Listing broker
will usually arrange after contract is ratified.
Assessments/Easements
Listing broker will ask home seller if any tax assessments or
easements exist on property that must be paid or included in purchase
contract and passed with the land when sold.
Property Taxes/Condominium or Coop Fees
Home seller provides record of property tax or condominium fee
payments which buyer will reimburse a pro-rata share to home seller
or buyer’s expense (depending upon the jurisdiction), 30 days
before settlement.
Inspections
VA/FHA and most lenders of new mortgages require a termite inspection
certificate that shows house is free of infestation. If home seller
does not have a current certificate, then listing or selling broker
(depending on area) will arrange inspection at home seller's expense.
Sometimes a home inspection and radon testing will be ordered. Home
seller should also provide all information as to the physical condition
of the property, such as the presence of fire retardant plywood,
through mandatory property condition disclosures, or disclaimers
in settings where adequate information is lacking, such as in estates.
Utilities
Home seller should provide record of past 12 months utility bills,
including gas, electric, sewer, water, and trash where applicable.
Most buyers will want to know history of utility costs.
Helpful Documents
If possible, home seller should provide listing broker with deed,
house location survey, condominium bylaws or home owners association
documents, subdivision plat map, house floor plan, previous title
search abstracts, legal description of property (subdivision, section
and lot), home warranties on major systems, if still in effect,
and copy of home owners insurance policy for endorsement in purchase
contract. If you can’t find or retrieve these documents, please
call or email me for help in reconstructing or replacing them.
What Conveys?
In anticipation of a buyer's offer, the home seller must be ready
to supply listing broker with a specific list of the personal property
that is included in the real estate property for sale. Examples
of items to "convey" may include: draperies, drapery rods,
remaining heating oil, firewood, washer, dryer, microwave, swimming
pool chemicals, awnings, storm doors and windows, venetian blinds,
window air conditioner, etc. Home seller should tag or remove items
which do not convey.
Listing Agreement
When the home seller is ready to put the house on the market,
the listing agreement is filled out indicating a specific period
of time the agreement is in effect ("listing period"),
and signed by the seller You've now hired a listing broker and listing
agent.
Questions and Answers
What is a "Lockbox"?
A lockbox is a universal metal container for your house key that
is hung on the front door and can only be opened by a special key
carried by licensed sales agents. It provides access when the owner
is away, thus assuring full exposure to prospective buyers.
Do certain geographical areas have unique home selling requirements?
Yes. Home selling requirements vary from county to county. Investigate
special taxes or other requirements applicable to the area in which
you live.
Listing Broker or Listing Agent
An individual real estate broker whom the seller hires to represent
the seller through a contract called a "listing agreement".
The listing agent is associated with the listing broker. The listing
broker is directly paid the listing commission and then splits the
commission with the listing agent. (Although the broker and agent
may be two different individuals, the term "broker" is
used throughout the Guide for simplicity.)
Selling Broker or Selling Agent
In a "cooperative" sale, the house is listed by one
broker and a buyer is provided by another broker. The selling broker
receives the selling side of the commission. If the listing broker
also produces the buyer, then the listing broker receives both listing
and selling sides of the commission. A selling broker may have a
signed buyer representation agreement with a buyer and, therefore,
represent the buyer and not the seller. If the buyer's agent is
a Long & Foster agent, Long & Foster becomes a disclosed
dual agent with the consent of both buyer and seller.
|
|
|
