Preparation: Before being placed on the market, homes must be in “show” condition. REALTORS® can explain what repairs and upgrades are required for individual homes which are most likely to produce the best results.
Pricing: Brokers do more than price homes for sale, they also construct sale terms designed to speed the selling process. It may be, for example, that a home priced at $150,000 with a 2 percent seller credit to the buyer at closing will be far more attractive to purchasers than a home priced at $147,000. Why? That 2 percent credit is worth $3,000 to the purchaser at closing — the time when buyers are most likely strapped for cash.
Marketing: REALTORS® will execute strategies and programs to get the home sold. Typically this includes placement on the local MLS and Realtor.com as well as related marketing, advertising and networking.
Negotiation: REALTORS® assist owners in the bargaining process, offering advice and counsel as offers are received and by working closely with legal counsel, tax specialists and inspectors as required.
Closing: Once a contract for the purchase of a home has been accepted, a series of inspections and checks are typically required to satisfy buyers and lenders. REALTORS® can help owners complete the transaction process by assisting with the many requirements found in a typical sale agreement.
The value of your home relates to local sale prices. The same home, located elsewhere, would likely have a different value.
Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population and a limited housing supply, it’s likely that prices will rise. Alternatively, it’s important to be realistic. If the local community is losing jobs and people are moving out, then you’ll likely have a buyer’s market.
Owner needs can impact sale values. If owner Smith “must” sell quickly, he will have less leverage in the marketplace. Buyers may think that Smith is willing to trade a quick closing for a lower price — and they may be right. If Smith has no incentive to sell quickly, he may have more marketplace strength.
Sale prices are not based on what owners “need.” When an owner says, “I must sell for $300,000 because I need $100,000 in cash to buy my next home,” buyers will quickly ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, the seller will not be successful.
Sale prices are NOT the whole deal. Which would you rather have: A sale price of $200,000, or a sale price of $205,000 but where you agree to make a “seller contribution” of $5,000 to offset the buyer’s closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, re-paint the entire house and leave the washer and dryer?
Experienced REALTORS® are active in the local marketplace and can provide assistance with pricing, marketing, negotiation and closing.
Whether you’re a first-time seller or someone who has sold many homes, there are several ways to find a local REALTOR®:
Look for REALTOR® signs in your community.
Check the classifieds in local newspapers and “shopper” publications.
Look at the listings in local real estate magazines.
What services do you offer?
What type of representation do you provide? (There are various forms of representation in different states. Some brokers represent buyers, some represent sellers, some facilitate transactions as a neutral party, and in some cases different salespeople in a single firm may represent different parties within a transaction.)
What experience do you have in my immediate area?
How long are homes in this neighborhood typically on the market? (Be aware that because all homes are unique, some will sell faster than others. Several factors can impact the amount of time a home remains on the market, including changing interest rates and local economic trends.)
How would you price my home? Ask about recent home sales and comparable properties currently on the market. If you speak with several REALTORS® and their price estimates differ, that’s OK, but be sure to ask how their price opinions were determined and why they think your home would sell for a given value.
How will you market my home? At listing presentations, brokers will provide a detailed summary of how they market homes, what marketing strategies have worked in the past and which marketing efforts may be effective for your home.
What is your fee? Brokerage fees are established in the marketplace and not set by law or regulation. Typically, brokers who list homes are compensated on a performance basis – that is, the broker is not paid unless the home sells under the terms and conditions that are acceptable to you.
What happens if another REALTOR® locates a purchaser? That is, who will that broker represent, and how will he or she be paid?
What disclosures should you receive? State rules require brokers to provide extensive agency disclosure information, usually at the first sit-down meeting with an owner or buyer.
How long do you want to list your home? A “listing” agreement is a contract that shows the broker’s obligations and outlines the terms under which your home is being made available for sale. The length of the agreement is a negotiable matter.
Step 1: Plan and Prepare to Sell Your House
Million of existing homes are sold each year, and while each transaction is different every owner wants the same thing — the best possible deal with the least amount of hassle and aggravation.
Unfortunately, home selling has become a more complex business than it used to be. New seller disclosure statements, longer and more mysterious form agreements, and a range of environmental concerns have all emerged in the past decade.
More importantly, the home-selling process has changed. Buyer brokerage — where REALTORS® represent homebuyers — is now common nationwide, and good buyer-brokers want the best for their clients.
The result is that while hundreds of thousands of existing homes may be sold each week, the process is not as easy for sellers as it was five or 10 years ago. Surviving in today’s real estate world requires experience and training in such fields as real estate marketing, financing, negotiation and closing — the very expertise available from local REALTORS®.
Are you ready?
The home-selling process typically starts several months before a property is made available for sale. It’s necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out.
Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers — and as much demand — as possible.
While part of the “getting ready” phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell.
Selling a home is an important matter and there should be a good reason to sell — perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it’s important to discuss your needs and wants in private with the REALTOR® who lists your home.
When should you sell?
The marketplace tends to be more active in the summer because parents want to enroll children in classes at the beginning of the school year (usually August). The summer is also typically when most homes are likely to be available.
Generally speaking, markets tend to have some balance between buyers and sellers year-round. In a given community, for example, there may be fewer buyers in late December, but there are also likely to be fewer homes available for purchase. So, home prices tend to rise or fall because of general demand patterns rather than the time of the year.
Owners are encouraged to sell when the property is ready for sale, there is a need or desire to sell, and the services of a local REALTOR® have been retained.
How do you improve your home’s value?
The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. For example, if most homes in your neighborhood have three bedrooms, two baths and 2,500 sq. ft. of finished space, a property with five bedrooms, more baths and far more space would likely be priced much higher and likely be more difficult to sell.
Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments, the cost of which cannot be recovered from the sale. Furthermore, improvements should reflect community preferences.
Cosmetic improvements – paint, wallpaper and landscaping – help a home “show” better and often are good investments. Mechanical repairs – to ensure that all systems and appliances are in good working condition – are required to get a top price.
Ideally, you want to be sure that your property is competitive with other homes available in the community. REALTORS®, who see numerous homes, can provide suggestions that are consistent with your marketplace.
Just helped my step-daughter and son-in-law move! Here are some helpful tips for you who are making a move soon.
Of course, any profession has its challenges and the Real Estate Career is no different. However, when weighed against the numerous advantages afforded by this career choice, the privileges greatly outweigh its challenges!
I personally know what its like to be a slave to the time clock. Impatiently waiting for each tick of the clock to shorten my required stay on the job, while simultaneously shortening my–life! The Real Estate Sales profession sees me rising each morning, looking forward to the day ahead. I am free to work when I want and to rest (vacation, play…) when I want, no 9-5 job can really compare.
I got my start in Real Estate while being a single parent. This career allowed me the ability to see my children off to school, attend baseball games, basketball games, dance recitals, PTA events, etc. What other profession would allow me this kind of flexibility? All the while, I was able to pursue other personal interests as well!
Be Your Own Boss:
No more ‘answering to the Man’! Of course, we still need to practice competent service, however no need to worry about a Foreman ‘looking over your shoulder’ or readily pointing out everything you do wrong at every waking moment! Being self employed is a dream-come-true for every person possessing an entrepreneurial spirit.
This Real Estate Firm offers excellent support and guidance for your career. You are building a “Business within a Business” and the right firm offers both the atmosphere and training you need to achieve this.
The Satisfaction of Helping Others:
Home-ownership is an important part of the American Dream. The Real Estate Professional is a vital part of that Dream! Additionally, the purchase of a home is most likely the most expensive purchase an individual or family will ever make and to make this experience a delightful one is very fulfilling!
Virtually Unlimited Income Potential:
Because the Real Estate Sales profession is commission-based, you are not limited to ‘trading dollars for hours’. Instead, as your skills develop and you build your business, your income increases right alongside! A good Real Estate Agent brings in an income that rivals the most highly trained professionals in most any other field!
Ease of Entry:
To gain this kind of Freedom, Flexibility and Income Potential doesn’t require 7 years of college and not even 5 years! It merely requires completion of a 90 hour (!) pre-licensure course, coupled with proper guidance by a caring Real Estate Brokerage.
If you’re interested in hearing more, please contact me!
Harley Greninger 360-533-1900 firstname.lastname@example.org
As a property Manager with over 20 years of experience in the real estate business, I have found that there are three major things that Landlords look for. The first is good credit, second is good work history and third is a good rental history. And an informed Landlord is going to verify those before approving a Tenant. As a Landlord, you want to make sure that you are renting to stable, responsible person who will pay his or her rent on time.
A Landlord should always research a Tenant’s criminal background and credit report before approving the lease. Having a stable credit, income and rental history means that the applicant will most likely be a good Tenant. You can check several consumer reports to check a person’s credit and rental history. You definitely want to pull a credit report from a credit bureau such as Equifax, Experian or Transunion. While a few unpaid bills or slow payments may be understandable, more serious credit blemishes such as evictions,charge-offs or judgments should raise a huge red flag and you should exercise caution when renting to the applicant. If, however the person has made payment plans with their creditors or is making an honest effort to pay off his debts even you may use your discretion to decide if it is worth giving them a chance. If so, you may want to consider doing an even more thorough income verification or ask for a co-applicant or a larger security deposit.
You also need to verify their income. This may seem as easy as giving their boss a call and asking a few questions, but an age of corporate privacy policies, self employment and convoluted employment verification services have made this process much more difficult. To avoid ending up in a red-tape nightmare, make sure you ask your applicant who exactly is the person or office responsible for employment verification, instead of just asking for their supervisor.
Many companies also require written consent from their employees before verifying any employment information so be prepared to provide some documentation to the employer. A signed rental application or release form is usually sufficient enough. Pay stubs and tax returns can also be used as proof of employment if you are having difficulty getting through to anyone at the applicant’s job. If the person is self-employed, taking a look at their tax returns will also help verify their income as well. After you have determined that the applicant is actually receiving income, you also want to make sure that the income that they are getting is sufficient enough to pay their monthly rent. In general, a person’s monthly pay should be about 3 times more than what the rent is in order to comfortably make the payments. So if you are charging 700 dollars a month in rent, then you should rent to people who make at least 2,100 dollars a month.
You will also need to decide what your policy on pets will be. If there are pets, how large the pet is, what kind of pet references are there. Can the previous landlord say that, “yes the pet was okay”?
If an applicant makes a decent salary and is responsible and credit worthy, then they should have no trouble getting an apartment or renting a home. From the tenant’s perspective, if you satisfy those three credit items — credit, work and rental history — you are probably going to be in a very good position to be approved for the lease.