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