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Approximately 5 million 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.
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 almost 100,000 existing homes are sold each week, the process is not as easy for sellers as it was five or ten years ago. Surviving in today's real estate world requires professional training in such fields as real estate marketing, financing, negotiation, and closing—the very expertise available from Scott and LeAnne.
1. Plan/Prepare
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.
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. Scott and LeAnne, who see numerous homes, can provide suggestions that are consistent with your marketplace.
2. Get a REALTOR®
There are more than 2 million people nationwide who have licenses to sell real estate, of which about 750,000 belong to the National Association of Realtors (NAR). Only NAR members are entitled to use the term "REALTOR®."
NAR members must adhere to a strict Code of Ethics. By joining NAR, individuals have access to a wide range of classes, seminars, and certification opportunities. Local REALTOR® groups are active in community matters.
In essence, local REALTORS® are community experts. They track real estate trends, share neighborhood concerns and participate in local matters. They're good neighbors who are in the business of helping others buy and sell homes.
Once your home is listed with a Scott and LeAnne, they will immediately begin to market your home according to the most appropriate conventions for your community.
They will keep you informed as the marketing process unfolds. In time, the marketing plan may be modified to reflect buyer reactions and changes in the marketplace.
3. Set the Price
Every reasonable owner wants the best possible price and terms for his or her home. Several factors, including market conditions and interest rates, will determine how much you can get for your home. The idea is to get the maximum price and the best terms during the window of time when your home is being marketed.
In other words, home selling is part science, part marketing, part negotiation, and part art. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale and engage Scott and LeAnne to sell your home.
4. Market It
If you look at a typical transaction you can see that there are five general areas where Scott and LeAnne can assist in the home-selling process.
- Preparation: Before being placed on the market, homes must be in "show" condition. Scott and LeAnne can explain what repairs and upgrades are most likely to produce the best results.
- Pricing: They 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: Scott and LeAnne 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: They 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. Scott and LeAnne can help owners complete the transaction process by assisting with the many requirements found in a typical sale agreement.
Much of their work will be quiet and unseen—yet important. The telephone calls, the work with contacts, the follow-ups with open-house visitors, conversations with ad respondents, the web postings, and other outreach efforts are all part of the process required to sell homes.
5. Sell It
There is no question that selling a home is an important event. A home sale represents transition, movement, and change. Big money is involved. Households move from the known and comfortable to the unknown and a period of adjustment. There may be job changes, new schools, distance from old friends, and the possibility of new ones.
The goal of every seller is to have a line of buyers outside the front door, each clutching higher and higher offers. And while this has been known to happen, in most markets there is some balance between the number of buyers and sellers. A number of factors determine whether a buyer's offer is acceptable.
In each case, owners—with the assistance of Scott and LeAnne—will need to carefully review offers, consider marketplace options, and then determine whether an offer is acceptable.
6. Close
It might seem as though once a sale agreement has been signed that the selling process is complete. Not only is it not over yet, but some of the most complex aspects of a real estate transaction now begin.
A sale agreement not only sets a purchase price for the home, but also a series of terms and conditions. Scott and LeAnne arrange required inspections and help the owner prepare for closing.
The closing officer reviews the sale agreement to determine what payments and credits the owner should receive and what amounts are due from the buyer. The closing agent also assures that certain transaction costs are paid (taxes and title searches).
Closing is also the time when "adjustments" will be made. For instance, suppose you've pre-paid taxes four months in advance. In this case, the closing agent will compensate you for the prepayment at closing by having the buyer pay you additional money.
It could also work in reverse. If you are behind on property taxes, the closing agent will reduce the money due to you at settlement by the amount of the unpaid taxes.
7. Moving
It's best to get rid of excess furniture and other goods by having a sale before you move. This will reduce the volume of goods to be moved and thus lower moving costs. Unwanted furniture which cannot be sold can often be donated to charitable groups, many of which will come to your home to pick up donations. All other unwanted items should be taken to a landfill. You should provide the U.S. Postal Service with a forwarding address, and utility companies should be advised when to end service. Check with utility companies to see if there is deposit money which should be returned.
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