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