Why sell your home? - Need a reason to sell your present home?

• Build your net worth and trade up - As a general rule, people trade up as the years pass..
• Need more space - The family is growing, and the present home is not big enough to accomodate growing needs.
• Making more money - As income increases, some people want to invest a larger amount of money in home ownership for the tax benefits as well as the pleasure associated with a bigger and larger home.
• Better schools - Some families move to accomodate a better environment and education for the kids.
• Closer to work - Some home owners will relocate for employment reasons and lifestyle improvements.
• Farther from the city - Conversly, others purposely move away from the noise and crowds for a more pastoral, relaxed lifestyle.

Preparing to put your house on the market - What do you need to do to get your house ready to show to prospective buyers?

• Getting yourself and your family ready- As a general rule, people trade up as the years pass.
• Cleaning up - Most homes are kept clean and tidy. But when it comes time to sell extra steps should be taken. Cleaning may be more often and focused on exterior or some other area that normally is not a priority. Windows should sparkle and the chimney should be clean.
• Storing extra items- Americans tend to accumulate stuff, including bric a brac and many small pieces. This can detract from the house itself. Remember people are trying to look at the walls, floors and ceilings, and anything that hides that or interferes with that is a negative. Fewer and nice furnishings are best to showcase any property.
• Exterior - Curb appeal means a good first impression. What first comes to mind when people pull up to your house? Buyers may form an opinion about the property before they get to see your new bedroom closet mirror doors. Are the lawns mowed, is the roof clean, are there any unecessary items in the side yard?
• Interior - Carpets and floors should sparkle. You may want to consider putting down runners between showings to maintain the spotless image. Make sure drapes are dry cleaned and everything else looks presentable.
• Improvements - Is there one thing that is an obvious problem? It may be in your best interest to make repairs or improvements. Generally kitchens and bathrooms get special attention, but there may be one feature of the house that sticks out, and spoils an otherwise good impression of the property.
  

"How should I determine the price for my home?" -

• What have other homes in the area sold for- As a general rule, people trade up as the years pass..
• Appraisals - A professional appraisal is a good tool to reassure yourself and the buyer of the value of the home. If you are uncomfortable getting a professional appraisal, have a real estate agent provide you with a comparable market analysis.
• Pricing strategies - Start high and come down? Sell quick? What strategy is right for your situation. It is often a waste of time to ask too high a price with the idea of dropping to a lower figure. If you aren't realistic in terms of comparable home values and the state of the market at the time you sell, you are in for a long wait.
• Getting advice - Agents know what properties go for. You can also do some investigation on your own via local housing authorities or on the
• Internet. But be careful that you are dealing with applicable, realistic information.

How to sell your home - Should you try to sell it by yourself?

• Should you sell it yourself, or hire a professional?- Some homeowners think, "why should I pay a commission when I can sell it myself?" Although there may be occasional exceptions, it is usually the smart move to employ a professional to get the job done and handle the details.
• Using a professional to sell your home - In most cases a professional agent will be able to get you a higher selling price for your home, offsetting any potetional savings you might think you could get by selling it without professional help.
• Selecting a professional real estate agent - Choose a veteran professional who is used to marketing homes with all of the tools available, MLS, print, Internet, mail, and all of the other promotional mediums. The bottom line is who is going to work harder and do a better job of selling your home and working in your best interest. . Do you have a friend who is an agent, or know someone who knows someone? Many times your friend or relative may not be familiar with homes in your area. An agent who is local to your area is probably a better choice.
• How agents vary - Some agents take a very laid back approach, others are aggressive sales people, and still others rely on the power of advertising. Pick one who uses a balanced and focused approach and one who is willing to spend the time and effort on your particular home listing.

Listing contracts - When you hire an agent to help you sell your property, you sign a "listings contract". How do you protect yourself and make sure you have the right clauses?

• What is a listings agreement (or contract)? - It is an agreement between the real estate agent and the homeowner outlining the terms including commission rates, length of the listing and sales effort and other details.
• Buyer Agency Agreement (written representation agreements)
  This is a mandatory form as required by the Code of Ethics and must accompany every listing agreement. It's purpose is for consumers to know and understand exactly who is representing his/her best interests in a real estate transaction and sets out the terms of your arrangements. You and your Realtor will agree to the terms of that Agreement in the early stages of your search for a home.
• MLS Listing Agreement (the contract) The Multiple Listing Service Listing Agreement outlines the terms of the listing contract, including the length of time for the listing, the price, the commission to be paid, all the parties to the listing, the address and the legal description of the property to be sold, how the seller is to be paid, the preferred possession date, the financial obligations and other information regard the property. The listing agreement is the seller's agreement with the listing agency, not the salesperson individually. If the salesperson leaves that company, it is up to the seller and the listing company to decide whether or not the listing will go with thesalesperson, or whether it will stay with the original company and be assigned to another salesperson.
• Amendment to Listing Authorization (change order) This form is used whenever a change is made to the original MLS Listing Agreement. This may involve extending the date, changing the price, altering wording on the printout, correcting measurements or tax or financial information, etc. It must be signed by the manager of the listing agency.

Real estate commissions - How much do real estate agents charge to sell a house?

• Is the real estate commission justified?-There is more to an agent or broker's job than making sales. They must have properties to sell. Consequently, they spend a significant amount of time obtaining listings-owner agreements to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that have recently sold to determine its competitive market price.
• Commissions are usually split? - Once the property is sold, the agent who sold the property and the agent who obtained the listing both receive a portion of the commission. Thus, agents who sell a property they also listed can increase their commission. The rate of commission varies according to agent and broker agreement, the type of property, and its value. The percentage paid on the sale of farm and commercial properties or unimproved land usually is higher than the percentage paid for selling a home. Commissions may be divided among several agents and brokers. The broker and the agent in the firm who obtained the listing usually share their commission when the property is sold; the broker and the agent in the firm who made the sale also usually share their part of the commission. Although an agent's share varies greatly from one firm to another, often it is about half of the total amount received by the firm.
• Real estate agents earn their fee in many ways - Real estate brokers and agents have a thorough knowledge of the real estate market in their community. They know which neighborhoods will best fit clients' needs and budgets. They are familiar with local zoning and tax laws and know where to obtain financing. Agents and brokers also act as an intermediary in price negotiations between buyers and sellers. Real estate agents usually are independent sales workers who provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent's sale of the property. Brokers are independent business people who sell real estate owned by others; they also may rent and manage properties for a fee. When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers where details of the transactions are agreed upon and the new owners take possession.
  

How your listing agent markets your property - What does the agent actually do to sell a home?

• What does the agent do to sell my home? -A good agent really goes all out to list, promote, advertise, sell and follow through on your particular property to get the job done.
• Listings - Agents market your home though listing it through a marketing organization which uses a Multiple Listing Service.
• Other agents - Member brokers usually agree to share their listing agreements with one another.
• Direct Mail - Good real estate agents employ a active marketing (rather than passively waiting for a buyer) which probably includes some direct mail to certain areas showing you home is for sale and what the details are.
• Advertising - Real estate agents also frequently employ display advertising in certain local publications.
• The Internet - One of the newest and most effective marketing tools is the Internet. Over 40% of all home sales begin with the buyer going online to shop for just the right property.
• Promotions - Promotions can be very creative, and they can also be very basic such as an open house to show the property on a given day.

Multiple Listing Service - To get your home in front of the maximum number of buyers, your agent probably works with other agents.

• What is a Multiple Listing Service - A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing and able buyers for their properties more quickly than they could on their own. Most multiple-listing services accept exclusive-right-to-sell or exclusive agency listings from their member brokers.
• Where is it seen - The truth is, most homes are not sold by the listing agent, but by an agent from a different office that sees your home on the MLS. More than 50% of all homes sold are a direct result of exposure on the MLS.
• What does it do? - It helps to locate buyers more quickly than they could just relying on their own individual marketing.

Showing your home - Would you benefit from having an open house?

• What are the ways the home will be seen by potential buyers? - A good agent will set appointments to show the property, and may from time to time have an open house.
• Setting appointments to show your property - It is not necessary for you as the homeowner to be at home when the property is shown. In fact, it is usually much easier for the agent and the prospective home buyer to see and discuss the home when the owner is not present.
• Open houses - Some markets and homes however don't benefit much from open houses. The prospects are not qualified.

Frequently asked questions about selling your property - Read what others have asked and learn from their experiences in listing their homes.

• How long will it take to sell my home? - A good agent will have the experience and a comprehensive plan to make sure that the home is sold efficiently and as quickly as possible in light of the asking price.
• Can I sell my house myself? About 10% of American homeowners handle their own sales. But in order to do that you need to realistically assess exactly what's involved. The routine parts of the job involve pricing your house accurately, determining whether or not a buyer is qualified, creating and paying for your own advertising, familiarizing yourself with enough basic real estate regulations to understand (and possibly even prepare) a real estate contract, and coordinating the details of a closing. The greatest downsides are the fact your house is only on the market when you're home, and the possibility that a mistake may cost you the money you're trying to save.
• What makes a house sell? - Mainly these five considerations: your price, terms, condition, location, and exposure. Since you can't control all of them, you may have to overcompensate in one or more areas to offset a competitive disadvantage in another.
• Is there any seasonality to the market? - Peak selling seasons vary in different areas of the country, and weather has a lot to do with it. For example, late spring and early fall are the prime listing seasons in many areas because houses tend to "show" better in those months than they do in the heat of summer or the cold of winter. And of course, people like to do their house shopping when the weather is pleasant.
• How long should it take to sell? - Average listing times vary from 30 to 180 days, according to market conditions in a particular region, town, or even neighborhood; and of course, price, terms, condition, location and exposure play an even greater role. Selling in any market is easier if you keep time on your side. Most professionals will tell you that allowing yourself at least six months will put you in a position to get a better return from their marketing efforts.
• Should I fix my house up before it goes on the market? Professional renovators have found that, no matter how much you improve any given house, you're unlikely to sell it for more than 15% above the median price of other houses in the neighborhood, whether you do $1,000 worth of work or $50,000. That's why you might want to ask your agent's opinion about the viability of recouping the cost of any major renovation you have in mind before you start the work.
• Am I liable for repairs after I sell? In certain situations. If the buyer's inspection reveals major problems with your house's structure or mechanical systems (heating, electrical, plumbing, etc.), the buyer may wish to negotiate the price downward on the basis of anticipated repair costs. So even though the repairs won't be made until after the sale, practically speaking, you'll be paying for them.