| Time to Sell - You Want | | | | person. Typically it is divided four ways: the listing |
| - The right price | | | | agent, the listing agent's broker, the buyer's agent |
| - At the right terms | | | | and the buyer's agent's broker. Referral fees and |
| - In the right amount of time. | | | | franchise fees many times are a factor also. |
| To Reach These Goals: | | | | Commissions |
| - Make you home look good. | | | | Getting your home listed at 5% may not net you |
| - Price it at market value right away. | | | | more then if you listed at 6%. |
| - Use real estate professionals. | | | | When a home is listed, the commission is split |
| Make Your Home Look Good | | | | between the listing office and the |
| It's important you make your home look | | | | buyer’s agent's office. When agents |
| presentable before you put it on the market. | | | | show properties to potential buyers, one thing |
| Exterior and interior paint will give you the best | | | | they generally look at is how much commission is |
| return on your money. | | | | being offered. Agents typically will show homes |
| Clean up the yard, fertilize and add some flowers | | | | offering 3% before the ones offering 2.5%. If |
| for that most important first impression. | | | | your home is offering 2.5% to the other agents, |
| Have an agent preview your house to give you | | | | it will get fewer showings meaning fewer people |
| suggestions. | | | | will even look at your house. The result: you will |
| If yours is an older house, your agent should | | | | be helping other sellers get their homes sold first. |
| recommend a termite and or property inspection | | | | If the listing office offers 3% to buyer agents on |
| at the beginning. | | | | a 5.5% or less listing contract is the best of both |
| This can work to your advantage in a couple of | | | | worlds. This scenario reduces costs to you along |
| ways. Negotiations go smoother if you are aware | | | | with good marketing incentives for other agents. |
| of problems at the beginning. | | | | MLS fees, insurance and membership dues can |
| Allows you time to fix or correct things before an | | | | run thousands of dollars a year for each agent. |
| offer is brought in, which may give the buyer the | | | | There is the cost of overhead, computers, office |
| confidence to offer more. Knowing of problems | | | | equipment, transportation, signs, and |
| up front will give you and your agent more time | | | | advertisement and so on. It's a business with |
| to come up with ways to negotiate around them, | | | | many expenses without a weekly paycheck. |
| should you choose not to fix them. | | | | Marketing Real Estate |
| Price It Right | | | | The MLS is still the best effective way to market |
| Pricing your house at market value from the start | | | | your home to the public. |
| will typically result in the best price you will get for | | | | The Internet |
| the property in the least amount of time and | | | | The internet is fast becoming the preferred |
| inconvenience to you. | | | | method for finding homes. More and more |
| Listing your property high at first only helps to sell | | | | potential buyers start looking for homes on the |
| the other houses like yours on the market. | | | | internet. A tremendous amount of information can |
| Remember, buyers preview a lot of homes so | | | | be found on the internet. Soon it will be the norm |
| they know what is overpriced. | | | | for buying and selling real estate. |
| The sales price also has to appraise at market | | | | Now one can take a virtual tour of a home at the |
| value in order to get a loan on it. | | | | click of a button. More and more homes will be |
| Pricing a Home is Key | | | | marketed this way, especially high end homes or |
| When you figure extra mortgage payments, | | | | special property. Real estate companies that use |
| property tax, insurance, the time and energy to | | | | this technology will be serving their clients better. |
| keep your home looking good and the | | | | Flyers on a For Sale sign are common today, |
| inconvenience of having your home on the | | | | virtual tours will be common tomorrow. |
| market a couple extra months, over pricing isn't | | | | Signs |
| practical. | | | | A FOR SALE sign should be placed on your front |
| Real Estate Professionals | | | | yard. |
| Real estate today has become a business that is | | | | Not allowing a sign on you property will greatly |
| very labor intensive on many fronts. Continuing | | | | decrease your marketing power. |
| education is required to stay up with all the | | | | Use signs that have a box for flyers about the |
| changes and requirements for a real estate | | | | property. |
| transaction. Most home owners don't have the | | | | A Lock Box |
| time or knowledge to successfully market and sell | | | | It's important that you have a lock box so agents |
| their home and get the best price. | | | | can preview and show the property during the |
| To save a commission, some people start | | | | day. Not allowing a lock box will dramatically |
| marketing their home by FSBO (for sale by | | | | reduce the needed exposure to properly market |
| owner). Some are successful, while most | | | | your home. Lock boxes are very secure devices |
| eventually list with an agent. | | | | that records who uses it. |
| Most buyers work with an agent, because they | | | | Agents don't like to show property if access is an |
| don't want to go through the buying process | | | | inconvenience. Use a lock box. |
| without the use of a knowledgeable professional | | | | Talking Houses, is a new effective marketing |
| which they essentially get their service for free. | | | | device, allowing potential buyers driving by, to |
| Since the commission on a listed house is typically | | | | tune in a radio station to hear about your home's |
| the source of income for the buyers agent, | | | | features. It also allows the agent to get a phone |
| FSBOs get far less market exposure. Agents | | | | number to that person for further marketing. |
| typically prefer not to work with FSBOs as they | | | | Advertising in property magazines, newspapers |
| wind up doing much more work. Why - because | | | | and open houses are additional methods used and |
| FSBOs typically don't have the knowledge and | | | | probably the least effective ways to market real |
| required forms needed for selling a home so the | | | | estate. |
| agent winds up providing for and consulting with | | | | Does Size Matter |
| the owner. | | | | Is a bigger real estate company better? |
| Real estate professionals have the needed | | | | Most large franchises want sellers and their agents |
| information to arrive at market value. A real | | | | to believe that. |
| estate agent will conduct a Comparative Market | | | | Which Company is the Best? |
| Analysis(CMA) using the Multiple Listing | | | | Larger companies can't be as flexible on |
| Service(MLS). This involves a survey of homes | | | | commission because they have more layers to |
| that are on the market or have recently sold that | | | | feed. Smaller companies have less overhead with |
| are similar to yours. The agent will advise you on | | | | less or no other ownership involved to feed. As a |
| the additional value (or deficit) of your home's | | | | result, a lower commission can be agreed upon |
| unique features and factor that into the equation. | | | | with the same effective marketing a large |
| Going with the agent who recommends the | | | | company offers. Talk with agents from different |
| highest price isn't always the best. This technique | | | | companies to find out what services they can |
| is used to get the listing. Dismiss any agent who | | | | provide and decide what is the best value for |
| can't justify a high price estimate. Sellers | | | | getting your property sold. |
| mistakenly believe that they should price their | | | | Choose an Agent / Company |
| house higher knowing that they can come down | | | | - Good local market knowledge |
| in price if it doesn't sell. Buyers shop around | | | | - That markets through the MLS |
| before buying and recognize value in a specific | | | | - Has good web site - internet marketing |
| price range because of comparison shopping. | | | | - Give the best value for commission rate. |
| Homes that wind up on the market a long time | | | | To find out what prices homes are selling for and |
| typically sell below market value. | | | | to get a comprehensive report about the |
| Commission | | | | neighborhood, try Zillow which covers most |
| A quick word about commissions. Commissions | | | | communities across the United States. It's free |
| are negotiable. They can vary between 4%-10%, | | | | and fairly accurate. |
| depending on the type of property, current | | | | A local real estate agent typically will be more |
| market conditions, and the sellers motivation. 6% | | | | accurate what a home is likely to sell for in a |
| seems to be most typical. Many people wrongly | | | | specfic neighborhood location. |
| assume the whole commission goes to one | | | | |