Relocation

BUYING A HOME   •   FINANCING A HOME   •   FINDING A HOME   •   SELLING A HOME

SELLING A HOME - THE SELLING PROCESS

Once you decide which broker to use, you will be asked to sign a contract giving the broker the right to list your home. By signing this contract, you agree to pay the broker a commission if your home is sold. Be sure your broker lists your home with the Multiple Listing Service in your area. By putting your home into MLS, your property receives maximum exposure in the marketplace, allowing all other real estate firms that are members of the MLS to show your home to prospective buyers.

Real estate commissions are negotiable. How high a commission should you pay a broker? It depends on the services you expect to receive and the length of time the property is on the market.

One of the most important things you will need to negotiate at the time of the listing is the length of the listing agreement. Terms vary, but listing contracts are rarely written for less than three months or for more than a year. Many experts agree that a listing of 90-120 days satisfies both objectives. The time of year can be a factor. In markets with "seasonality," longer listing periods may be necessary if your home is being listed during the "off" season.

Most real estate contracts are drafts written by the state or National Association of Realtors with personalization by the individual offices. All the agreements contain essentially the same information. Specify any personal property that will be included in the sale, such as freestanding appliances, fireplace accessories, drapes and so on. Discuss with your realtor what may be conveyed with the home per the local or state sales contract. For example, in most states, any item that is permanently attached to the property, such as TV antennas in the attic, drapery rods, and garage door openers, must remain with the property.

Listing contracts will not only specify the street address, but also identify the property's legal description, lot size and other data. Detailed information about the property such as the number of bedrooms and baths, may be included in the listing contract or on a separate property fact sheet. Because people will be making important financial decisions based on the information provided through your listing contract, it is crucial that all details are accurate. A copy of your warranty deed, a tax bill or previous closing documents will have the legal description. You may want to have a copy of the survey completed on your home at the time of your purchase. This survey will show the lot size, building lines, utility easements and any encroachments existing at the time of your purchase.

Some listing contracts have a paragraph discussing home warranty plans, and provide the seller the option of offering a home warranty with the sale of the home. Home warranties can be a great way to overcome possible buyer objections if, for example, such fixtures as appliances, a water heater, or a furnace are old, for example. You may want to research the plans available in your market, the costs, what is a "covered item," and other issues and decide if a warranty would make your home more desirable.

Listing contracts may also have a provision regarding the presentation of multiple offers, and whether or not you would accept "back-up" offers. There may also be a provision for the placement of a "lock box" on your property. Many real estate brokers leave a key to the property in a locked box, typically attached to a door handle, which can be opened with a specific code or key provided only to registered members of the local MLS. This provides ease in showing your property, while maintaining security. Your broker will discuss his or her office's particular procedure for showing appointments.

To determine the correct listing price, your broker will need to provide you with a market analysis of recently sold and closed properties in your neighborhood that are comparable to your home. It will also be important to analyze any current competing homes, know exactly how they compare to your property in terms of condition, location, upgrades, square footage, lot size, and other matters, and how long these properties have been on the market. Your broker will suggest an asking price based on his or her knowledge of the market, information and expertise, but ultimately the decision is yours. Overpricing your home may drive potential buyers away from even looking at the home and may result in additional marketing time. Homes that are competitively priced from the first day typically receive better offers in a shorter period of time.