Home Seller’s Articles
PRACTICING GOOD SELLER'S ETIQUETTE
HOW CAN A REAL ESTATE AGENT HELP ME SELL MY HOME?
SHOULD I WORK WITH: A SELLER'S AGENT? A DUAL AGENT?
HOW TO PRICE TO SELL AND STILL MAKE A PROFIT
EIGHT STEPS TO SELLING YOUR HOME
F.S.B.O - For Sale by Owner TIPS
PRACTICING GOOD SELLER'S ETIQUETTE
Let's face
it: When your house goes on the market, you're not only opening the door to
prospective buyers, but also sometimes to unknown vendors and naïve or
unqualified buyers. As with any business transaction, there is an expected
protocol to how sellers, buyers and their respective agents interact. Should
you find yourself in a sticky situation, alert your agent so he or she can
address and remedy the problem.
The aggressive agent
When your
agent puts your house on the market, typically all promotional materials state
clearly that your agent is the primary contact for buyers and buyers' agents.
However, sometimes a buyer's agent will contact a seller directly to try to
either win over their business or cut the seller's agent out of the deal. This
is not reputable behaviour and you should report it to your agent immediately
if it happens to you.
The unscrupulous vendor
Have you
ever started a business or moved into a new house and suddenly found your
mailbox full of junk mail? Unfortunately, this also can happen when you put
your house on the market. When you sell your home, it necessitates all kinds of
new purchasing decisions and less-than-ethical vendors are keenly aware of
this. Though MLS organizations enforce rules on how posted information is used,
some companies have found ways to cull information from various sources to
produce mass mailing lists. If you find yourself regularly emptying your
mailbox of junk, let your agent know. He or she can tap the appropriate sources
to prompt an investigation into the matter.
The naïve buyer
Yard signs,
Internet listings and other advertisements can generate a lot of buzz for your
home. Some prospective buyers - particularly first-timers - will be so buzzed
to see your home that they'll simply drop by. If this happens, no matter how
nice these unexpected visitors are, it's best not to humor their enthusiasm by
discussing your home or giving an impromptu tour. Instead, politely let them
know that your real estate agent is in charge of scheduling tours and provide
them with the agent's contact information. If you attempt to handle these
surprise visits on your own, you might inadvertently disclose information that
could hurt you during negotiations down the road.
INCREASING YOUR HOME'S APPEAL
Remember
the 60-second rule: That's all the time you have to create a winning first
impression. Here are some simple to significant ways to maximize your home's
appeal.
Exterior
Keep the
grass cut and remove all yard clutter.
Weed and
apply fresh mulch to flower beds.
Apply fresh
paint to wooden fences.
Tighten and
clean all door handles.
Clean
windows inside and out.
Power-wash
home's exterior.
Ensure all
gutters and downspouts are firmly attached and functioning.
Paint the
front door.
Buy a new
welcome mat.
Place
potted flowers near the front door.
Interior
Evaluate
the furniture in each room and remove anything that interrupts "the
flow" or makes the room appear smaller.
Consider
renting a storage unit to move items off-site.
Clean and
organize cabinets, closets and bookshelves.
Clean all
light fixtures and ceiling fans.
Shampoo carpets.
Remove
excessive wall hangings and knickknacks.
Repair all
plumbing leaks, including faucets and drain traps.
Make minor
repairs (torn screens, sticking doors, cracked caulking).
Clean or
paint walls and ceilings.
Replace
worn cabinet and door knobs.
Fix or replace
discoloured grout.
Replace
broken tiles.
Replace
worn countertops.
Special
details for showings.
Turn on all
the lights.
Open all
drapes and shutters in the daytime.
Keep pets
secured outdoors.
Buy new
towels for bathrooms.
Buy new
bedding for bedrooms.
Replace old
lamps or lampshades.
Play quiet
background music.
Light the
fireplace or clean out the ashes and light a candelabrum.
Infuse home
with a comforting scent, such as apple spice or vanilla.
Set the
dining room table for a fancy dinner party.
Vacate the
property while it is being shown.
HOW CAN A REAL ESTATE AGENT HELP ME SELL MY HOME?
There are
countless decisions to be made when selling a home, and many of them will
significantly affect whether or not you make a profit and how much time it
takes to sell your home. A real estate agent can offer specialized knowledge in
research, marketing and negotiations to help you meet or exceed your goals.
According to the National Association of REALTORS®, 82 % of home sales are
the result of agent connections.
A real
estate agent will:
Serve as
your advocate and representative when dealing with buyers, buyers' agents and
service providers.
Help you
establish a fair asking price that also meets your goals.
Advise you
on how to present your home aesthetically to maximize its appeal to buyers.
Design a
customized marketing plan that will promote your home 24 hours a day, seven
days a week.
Tactics can
include the MLS, direct mail campaigns, fliers, yard signs, advertising,
Internet listings and open houses.
Schedule
and host open houses and home tours.
Screen all
written offers and discuss their advantages and disadvantages.
Assist you
in making counteroffers.
Prepare
your closing documents.
Represent
you at closing and mediate any last-minute obstacles to ensure a smooth,
successful transaction.
Provide
referrals to proven service providers, including title companies, inspectors,
appraisers, pest control, moving companies and more.
IMPORTANT
TO NOTE: Real estate professionals can represent the seller, the buyer or both.
When agents represent both parties, it is called dual agency. In some states,
dual agency affects the real estate professional's fiduciary responsibilities
to the seller. Keep in mind that real estate laws differ from state to state
and even from locale to locale. For more in-depth answers, talk with a
knowledgeable real estate professional and ask about local practices.
SHOULD I WORK WITH: A Buyer's Agent? A Seller's Agent? A Dual Agent?
You should
understand from the beginning of your relationship with your real estate agent
what type of relationship exists. In most provinces, real estate agents (both
brokers and sales associates alike) are required by law to let consumers know
whether they represent the buyer or the seller.
In the
past, real estate agents represented the seller exclusively, whether the agent
helped a seller to market and sell the home or helped a buyer find and purchase
the home. In other words, agents were at one time legally bound to represent
the seller in a residential real estate transaction. In that same scenario, the
seller paid both the listing agent and the agent who brought the buyer.
However, in
today's real estate market, you may find that you can choose between a wide
variety of options for representation. If you want to sell a home, you can work
with a "seller's agent". If you are purchasing a home, you can work
with a subagent of the seller's agent and, in many areas, you can engage an
exclusive "buyer's agent".
An
additional situation in some provinces is dual agency. This type of agency
exists when the buyer decides to have the seller's agent prepare the offer on
the buyer's behalf. A buyer who elects this situation, and all additional
parties to a transaction, should receive full disclosure of representation. In
some provinces, dual agency also affects the real estate professional's
fiduciary responsibilities to the seller.
Keep in
mind that real estate laws differ from province to province and even from
locale to locale. And within this framework of variety, laws can change. For
more in-depth answers for your specific situation, talk with one of our
professional team members and ask about local practices. Be sure that you understand
and are comfortable with the options involved when you engage the services of a
real estate agent.
Here in
Greater Vancouver there is a fourth kind of agency relationship which is called
"No Agency". You may also choose to use the services of a REALTOR®
without having any kind of agency relationship. This might occur, for example,
when you are being shown a property by the seller/landlord's agent.
You should
not provide a REALTOR® who is not your agent with any information that you
would not provide directly to his or her principal.
For further
details about our local AGENCY DEFINITIONS follow the link to BCREA's:
"Working With a Realtor" brochure.
UNDERSTANDING THE BUYER
As the
seller, you can control three factors that will affect the sale of your home:
The home's condition
Asking price
Marketing strategy
However,
it's important to note that there are numerous other factors that influence a
buyer, and you need to understand these consumer trends when you enter the
sellers' market. The more your home matches these qualifications, the more
competitive it will be in the marketplace. Your real estate agent can advise
you on how to best position and market your home to overcome any perceived
downsides.
Location
Unfortunately,
the most influential factor in determining your home's appeal to buyers is
something you can't control: its location. According to the National
Association of REALTORS®, neighbourhood quality is the No. 1 reason buyers
choose certain homes. The second most influential factor is commute times to
work and school.
Size
While some
buyers want to simplify their lives and downsize to a smaller home, home sizes
in general have continued to increase over the decades, nearly doubling in size
since the 1950s. Smaller homes typically appeal to first-time home buyers and
"empty nesters," or couples whose children have grown up and moved
out.
Amenities
Preferences
in floor plans and amenities go in and out of fashion, and your real estate
agent can inform you of the "hot ticket" items that are selling homes
in your market. If your home lacks certain features, you can renovate to
increase its appeal, but be forewarned: That's not always the right move. Using
market conditions and activity in your neighborhood as a gauge, your agent can
help you determine whether the investment is likely to help or hinder your
profit margin and time on the market.
HOW TO PRICE TO SELL AND STILL MAKE A PROFIT
The asking
price you set for your home significantly affects whether you will profit in
the sale, how much you will profit and how long your home will sit on the
market. Your real estate agent's knowledge of the overall market and what's
selling - or not selling - will be invaluable in helping you determine the
price. The objective is to find a price that the market will bear but won't
leave money on the table.
Here are
some points to consider:
Time
Time is not
on your side when it comes to real estate. Although many factors influence the
outcome, perhaps time is the biggest determinant in whether or not you see a
profit and how much you profit. Studies show that the longer a house stays on
the market, the less likely it is to sell for the original asking price.
Therefore, if your goal is to make money, think about a price that will
encourage buyer activity (read: fair market value).
Value vs. Cost
Pricing
your home to sell in a timely fashion requires some objectivity. It's important
that you not confuse value with cost - in other words, how much you value your
home versus what buyers are willing to pay for it. Don't place too much
emphasis on home improvements when calculating your price, because buyers may
not share your taste. For instance, not everyone wants hardwood floors or
granite countertops.
Keep it simple
Because
time is of the essence, make it easy for the buyers. Remain flexible on when
your agent can schedule showings. Also, avoid putting contingencies on the
sale. Though a desirable move-in date makes for a smoother transition between
homes, it could cause you to lose the sale altogether.
EIGHT STEPS TO SELLING YOUR HOME
Define your needs.
Write down
all the reasons for selling your home. Ask yourself, "Why do I want to
sell and what do I expect to accomplish with the sale?" For example, a
growing family may prompt your need for a larger home, or a job opportunity in
another city may necessitate a move. For your goals, write down if you'd like
to sell your house within a certain time frame or make a particular profit
margin.
Work with
your real estate agent to map out the best path to achieve your objectives and
set a realistic time frame for the sale.
Name your price.
Your next
objective should be to determine the best possible selling price for your
house. Setting a fair asking price from the outset will generate the most
activity from other real estate agents and buyers. You will need to take into
account the condition of your home, what comparable homes in your neighborhood
are selling for, and state of the overall market in your area. It's often
difficult to remain unbiased when putting a price on your home, so your real
estate agent's expertise is invaluable at this step. Your agent will know what
comparable homes are selling for in your neighborhood and the average time
those homes are sitting on the market. If you want a truly objective opinion
about the price of your home, you could have an appraisal done. This typically
costs a few hundred dollars.
Remember: You're
always better off setting a fair market value price than setting your price too
high. Studies show that homes priced higher than 3 percent of their market
value take longer to sell. If your home sits on the market for too long,
potential buyers may think there is something wrong with the property. Often,
when this happens, the seller has to drop the price below market value to
compete with newer, reasonably priced listings.
Prepare your home…
Most of us
don't keep our homes in "showroom" condition. We tend to overlook
piles of boxes in the garage, broken porch lights, and doors or windows that
stick. It's time to break out of that owner's mindset and get your house in
tiptop shape. The condition of your home will affect how quickly it sells and
the price the buyer is willing to offer.
*First
impressions are the most important. Your real estate agent can help you take a
fresh look at your home and suggest ways to stage it and make it more appealing
to buyers. A home with too much
"personality" is harder to sell. Removing family photos, mementos and
personalized decor will help buyers visualize the home as theirs.
*Make minor
repairs and replacements. Small defects, such as a leaky faucet, a torn screen
or a worn doormat, can ruin the buyer's first impression.
*Clutter is
a big no-no when showing your home to potential buyers. Make sure you have
removed all knickknacks from your shelves and cleared all your bathroom and
kitchen counters to make every area seem as spacious as possible.
Get the word out…
Now that
you're ready to sell, your real estate agent will set up a marketing strategy
specifically for your home. There are many ways to get the word out, including:
In addition
to listing your home on the MLS, your agent will use a combination of these
tactics to bring the most qualified buyers to your home. Your
Receive an offer….
When you
receive a written offer from a potential buyer, your real estate agent will
first find out whether or not the individual is prequalified or preapproved to
buy your home. If so, then you and your agent will review the proposed
contract, taking care to understand what is required of both parties to execute
the transaction. The contract, though not limited to this list, should include
the following:
At this
point, you have three options: accept the contract as is, accept it with
changes (a counteroffer), or reject it. Remember: Once both parties have signed
a written offer, the document becomes legally binding. If you have any
questions or concerns, be certain to address them with your real estate agent
right away.
Negotiate to sell…
Most offers
to purchase your home will require some negotiating to come to a win-win
agreement. Your real estate agent is well versed on the intricacies of the
contracts used in your area and will protect your best interest throughout the
bargaining. Your agent also knows what each contract clause means, what you
will net from the sale and what areas are easiest to negotiate. Some negotiable
items:
Once both
parties have agreed on the terms of the sale, your agent will prepare a
contract.
Prepare to close…
Once you
accept an offer to sell your house, you will need to make a list of all the
things you and your buyer must do before closing. The property may need to be
formally appraised, surveyed, inspected or repaired. Your real estate agent can
spearhead the effort and serve as your advocate when dealing with the buyer's
agent and service providers. Depending on the written contract, you may pay for
all, some or none of these items. If each procedure returns acceptable results
as defined by the contract, then the sale may continue. If there are problems
with the home, the terms set forth in the contract will dictate your next step.
You or the buyer may decide to walk away, open a new round of negotiations or
proceed to closing.
Important
reminder: A few days before the closing, you will want to contact the entity that
is closing the transaction and make sure the necessary documents will be ready
to sign on the appropriate date. Also, begin to make arrangements for your
upcoming move if you have not done so.
Close the deal...
"Closing"
refers to the meeting where ownership of the property is legally transferred to
the buyer. Your agent will be present during the closing to guide you through
the process and make sure everything goes as planned. By being present during
the closing, he or she can mediate any last-minute issues that may arise. In
some states, an attorney is required and you may wish to have one present.
THERE'S MORE TO SELLING YOUR HOME THAN A
"FOR SALE
Even if a
simple sign in your yard did produce a buyer knocking on your door, how will
you handle the following questions?
"How
does your home compare to others like it on the market?"
"How
did you determine the fair market value of this property?"
"What
about financing? Can you help?"
"If I
make an offer, who will draw up the paperwork?"
"Why
aren't you using a Realtor? Is there something wrong with the property?"
"Since
you aren't using a Realtor, we can take their fee right off the top,
right?"
Selling
your home is one of the most important financial transactions you will make in
your life.
Don't take
risks.
Selling
your home is nothing like selling a car. Every home is different.
How do you
determine the real market value?
The great
majority of all homes are sold using a Realtor.
As a
professional, it is our job to help you negotiate with all those buyers who
want to offer you as little as possible for your home, not to mention preparing
your home for sale, marketing it locally and even nationally, and guiding you
through the complex paperwork and pitfalls of escrow and closing.
Make sure
you are really ready to handle all of that before pounding that sign into your
front yard!
Remember:
Buyers want to offer you as close to nothing as possible! While that "For
Sale By Owner" sign might sound like a good idea, it usually means a
different thing to buyers: "Try to steal this one!"
If you must
sell your own home, at least let us give you a sense of its true market value.
Tell us a bit about your home, and we'll do a quick Comparative Market Analysis
and let you know what we feel it is worth. We'll also describe how we would
market your property to get you the best possible price.
This is
free, with no strings attached. Really.
