Deciding toSell

It never ceases to amaze us to hear of homeowners who consider selling their home on theirown. We get it, your real estate agent lists your property on the local MLS, the put up a signand do a little advertising and marketing. How hard could it be right? Well, believe it or not,very hard. Research has shown that as many at 80% of new real estate agents fail or quit intheir first year in the business. And, almost as much as 90% are gone within three years. Thosenumbers aren’t so lopsided because the business is easy. Whether you ultimately decide towork with our team or “the other guys,” you need to do your due diligence, know the marketand get your property positioned for the best possible combination of sale time and price.

Your real estate agent needs to know as much about your property as they can. Familiaritywith the history of each unique home is paramount. Whoever you choose to sell you home willneed to know about the square footage, improvements, any remodels or new construction, thelot size, property taxes, supplemental taxes, any association dues and benefits, local access tofreeways, retail and shopping, your existing loan’s terms and so, so much more. Knowing thesedetails helps present the home’s strength while being able to discuss and mitigate it’sweaknesses from an educated position.

Properties are bought and sold every day. A seasoned professional will be able to discuss yourhome relative to those that have sold in the same market and neighborhood over the course ofhistory. They will also know what is currently listed for sale and how your home stacks up tothe competition. This is a great challenge for newer agents and for owners that want to selltheir own home. It can be quite difficult to be armed with all the facts of a local market’shistory without having dedicated yourself to it for a long time.

We know that each home has an intrinsic and particular value to the homeowner(s). How couldit not be awesome? You own it right? You have memories there right? Sometimes you need todivorce yourself from the emotions and look at the facts about your home and the market youhave gathered. Let the metrics be your guide when determining the price. Black Crown Realtyalways provides a baseline price range for discussion purposes and ample support to show howwe concluded this figure. Then we sit down together to let you, the homeowner, tell us howyou feel about the best price for the home.

It sounds counterintuitive, we know. Why should you, the Seller, care about what financingterms are available in the market? Well, if Black Crown Realty has done our job and you have offers to consider, you need to be aware of which offers have financing contingencies. Mostoffers do, as cash buyers are rare. If you are going to consider an offer a major factor in thestrength of that offer is the type of financing and qualifications of your potential buyer. BlackCrown Realty only presents offers where a proof of funds for the requisite deposit and apre-approval letter from a reputable lender are provided at the same time as their offer.

Look at it from the perspective of both the prospective buyer and the inspector. Take notes onall items that need to be repaired or replaced. Things to consider include:

Most prospective buyers will want to know about the local schools, shopping, parks,transportation, etc. Be prepared so you can knowledgeably answer their questions.

How much are you willing to spend to sell your house?

• Real estate commission if you use an agency to sell.
• Advertising costs, signs, other fees if you plan to sell by owner.
• Attorney, closing agent and other professional fees.
• Excise tax for the sale.
• Prorated costs for your share of annual expenses, such as property taxes, home ownerassociation fees, and fuel tank rentals.
• Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
• Real estate agents deal with transactions every day and can give you a very closeestimate of seller closing costs.

What will get you the most “bang for your buck?” Are there “throwaway” (i.e., free) real estatepublications in your area that accept ads from individual sellers? In the local paper(s), is itbetter (in your area) to run a text-only classified, or do they have “photo boxes” where you canrun both text and a photo of your property?As you have probably noticed from the website you have found this article on, most agentshave their own website, which includes their clients’ listings as well as the entire MLS search. Ifyou work with an agent, your property will most likely be placed on their web site (if they haveone) and on the full MLS search as part of the services they will offer you. If the real estateagent’s website you are currently viewing does not service your area, logontowww.agentwebpros.com to find an agent who will be able to list your property on theirwebsite.In addition, some newspapers automatically (or for an extra fee) offer Internet advertising tiedin to their traditional print ads. Learn the rates and deadlines for each publication, then decidewhich one (or more) is best for you and your market.

Now that you know what advertising will cost, create a plan on how to best (within yourbudget) reach prospective buyers, both local and out-of-town. Since many people do relocatefrom a distance, be sure to include Internet advertising in your plan. If your town is largeenough, the “local” newspaper might have a national edition that you want to place your ad in,at least periodically.

At the very least, you will need a well-written few sentences that will run as a classified ad or aphoto box ad. In addition, you might decide to run a larger, custom-designed ad in the paperand/or to use as flyers to hand out at open houses (or anywhere else you might meetprospective buyers). Don’t skimp on this. A professional, well-crafted ad can attract buyerswhile a poorly designed and executed one can turn buyers off to your property. Even if you donot have full service agent representation, you may consider assist-to-sell, which some agentsoffer at a lower price.

Design a single sheet description of your property listing the features and benefits that willdraw in prospective buyers. This should be attractive and professional looking. Have enoughcopies on hand to give out at open house showings. Again, if you are working with an agent, heor she will most likely do this on your behalf.

While most are held on the weekend, this is not convenient for all buyers. Make sure that youcoordinate your print advertising to include information about your next open house.

As people come through during open houses, or as they call from reading your ads or seeing thesign out front, keep a list with their names and phone numbers. Concentrate your attention onthose who seem serious about your property, as opposed to those who are just checking outthe neighborhood or whiling away a Sunday afternoon. Make sure that you make follow uptelephone calls to all those who seem seriously interested in your property.

Leave your emotions behind when you enter negotiations. You never want to get angry or giveaway the fact that you’re overly eager.

A number of forms are required for the legal sale of your property. In addition to the contractof purchase and any counteroffers, there are approximately 20 other forms that the seller isrequired to provide to the buyer. It is necessary to review the contract carefully to determinewhen these forms/documents are due and what the buyer’s rights are once they receive thedocument. The form and content of many of these documents are prescribed by state orfederal law and must be adhered to in their entirety. The proper forms may be obtained fromyour local Board of Realtors or from your real estate agent who is representing you.

Buyer(s) need to come to an agreement (in writing) regarding the following:

• Price
• Inspection contingencies
• Financing terms
• Date of closing
• Date of possession
• It would be prudent for you to have an attorney review any and all contracts before thedeal is finalized

When both the buyer(s) and a witness can be present, schedule a final walk-through before youcomplete settlement in order to determine that the property being conveyed meets theexpectations of all parties involved.

Unless you have already built or bought a new residence, you’ll need to be the “buyer” for anew property while simultaneously being the “seller” for your current one. If possible, scheduleboth transactions to close at the same time, or else close your purchase shortly before closingyour sale. You need to be moved out before the new owners take possession.