Sellers

• 1. Identify your motivation for selling in order to set ‘selling goals’:
  
  • Your reasons for selling affect how you sell.
    
  • Financial (Usually need a quick sale)
    
  • Moving up or downsizing (may allow more time)
    
  • Job relocation (Usually need a quick sale)
    
  • Cashing out or retirement (may allow more time)
    
  • Marriage or divorce
  
  
• 2. Select your realtor:
  
  • You want to choose someone with experience and a style that you can work with.
    
  • Interview agents and have them give you a listing presentation
    
  • Get agent referrals from friends, neighbors, and co-workers
    
  • During your selection process, be sure to ask about agent’s track record, how he will communicate with you, pricing strategies, realtor fees, and marketing plan.
  
  
• 3. Preparing your home to go on the market. Your agent should be able to guide you in getting your home in showing condition. Ask for suggestions about:
  
  • Cleaning
    
  • Repairs
    
  • Renovation of any kind
    
  • Staging your home
    
  • Landscaping for ‘curb appeal’
  
  With your agent’s help, determine how to present your home to get top dollar for it.
  
  
• 4. Finalize pricing and the Listing Agreement:
  Your agent will give you a suggested price range after doing research for your neighborhood. Things to take into consideration
  
  • Sales of comparable homes in your area for the past 6 months to one year
    
  • Agent will preview active listings in your area
    
  • Determine seller’s bottom line and reasons for selling
  
  After receiving this information (including a suggested list price range), you - as the seller - will make the final decision on the list price of your home.
  The seller and agent will then sign a Listing Agreement, which is a contract between the seller and the realtor, stating the terms of this agreement. This includes:
  
  • Length of Listing Agreement (minimum of 3 months)
    
  • Realtor fees
    
  • Listing price of home
    
  • Listing services that agent will use
  
  At this time, Seller and agent will also discuss ‘showing instructions’, that is, how to go about letting other agents and potential buyers actually view your home. The seller will also fill out a Seller’s Disclosure, which is a 4 page form with information about the systems and history of maintenance, and a check list of what items are included in sale. This is always required unless the home is to be sold ‘as-is’.
  
  
• 5. Home is on the market:
  This is when the sign goes up in the yard, the lockbox is put on the door and your home’s information is entered into the multiple listing services and related web sites. This is also when your agent’s marketing resources begin:
  
  • Showings (when agents and potential buyers view your home)
    
  • Agent caravans (open house for agents only)
    
  • Open houses (open to the public)
    
  • Flyers
    
  • Virtual tour
    
  • On-line advertising
    
  • Print advertising
    
  • Networking with other agents
  
  The seller should expect and demand consistent communication with their agent. This can include:
  
  • Weekly updates (at the very least)
    
  • Feedback from showing agents
    
  • Suggestions on how to make home show even better
    
  • Marketing updates
    
  • Follow up with agents who have interested buyers
  
  
• 6. Receiving an offer:
  Your agent is obligated to present you with any and all received offers. Remember that a written offer has many components to it, not just the offer price for the home. Once an offer is received, the seller and his agent will review it together.
  These are the primary items that make up an offer:
  
  • Offer price
    
  • Earnest money amount
    
  • Closing date and closing attorney
    
  • Date of possession of property
    
  • Is potential buyer asking for seller paid closing costs?
    
  • Type of loan, loan amount and down payment amount
    
  • Financing contingency deadline
    
  • Inspections/Due Diligence deadline
    
  • Are there any other contingencies? (Does buyer have to sell his house in order to buy yours, for example)
    
  • Are there any special stipulations?
  
  Probably the most important item concerns buyer’s ability to obtain a loan to purchase your home. The most complete offer will come with a pre-approval letter from a lender stating that buyer can obtain such a loan, and also a copy of an earnest money check, which should be at least 1% of the offer price.
  With the agent’s guidance, the seller will decide to do one of three things: Accept the offer, reject the offer, or make a counter-offer.
  
  
• 7. Negotiating the offer:
  If you respond to an offer with a counter-offer, you have begun the negotiation process. All of the items in the list above are negotiable.
  Work with your agent on each aspect of the contract. When a final agreement is reached between seller and buyer, the contract is signed by all and you are officially under contract. The date that final contract is signed is called the Binding Agreement Date, and all contract deadlines (except closing date) are counted from this day.
  
  
• 8. Prepare to close:
  Once the seller has accepted the offer and has a Binding Agreement Date, your agent will work with the buyer’s agent to ensure that all contract deadlines are met.
  
  • There is another point in this process when some negotiation can be expected: Right to Inspect or Due Diligence. If buyer conducts an inspection, he can ask for some (or all) items written up in inspection report to be repaired or addressed. These items are negotiable, just as the items in the body of the contract were. If no agreement is reached concerning inspection items, the buyer (or seller for that matter) may choose to walk away from contract.
    
  • After successfully meeting all contract deadlines, including lenders appraisal of your home, seller can begin to prepare for his move.
    
  • One or two days before the closing date, all parties should receive the HUD, or Settlement Statement, which is generated by the closing attorney. Your agent will go over this with you to make sure that all numbers and information is correct. The seller proceeds will be on this statement, as will all costs associated with this transaction.
  
  
• 9. Closing:
  This is the day when ownership of the property is legally transferred to the buyer. It takes place at the closing attorney’s office.
  
  • Seller will check if proceeds are due him
    
  • Buyer gets keys to the home.