Gould and Quinn Realty: Selling Your Property

Tools for Sellers

What is involved in selling your Property

When you employ a BROKER in the sale of your home, you will enter into a written contract with the BROKER. This contract is referred to as a Listing Agreement. In this Listing Agreement, you authorize the BROKER to market your property and to present you with offers from prospective buyers. By means of the Listing Agreement you employ the broker to act as your agent in the sale of your home and you agree to compensate the BROKER for services rendered in the sale of the home. In the Listing Agreement you authorize the BROKER to enlist the services of other BROKERS to aid in the marketing of the property. These agents represent the listing Broker, not the seller. The Listing Agreement is a legally binding contract and it should be carefully read and understood before you sign it.

After the Listing Agreement is signed, the BROKERS who act on your behalf may advertise and show your property and will present you with offers from prospective buyers. These offers, to be enforceable, must be in writing and your acceptance of these offers must also be in writing. Once you agree in writing to an offer, it becomes a binding contract whereby you are legally committed to sell the property on the terms and conditions set forth in the agreement. Your BROKER will assist you so that you will be better able to select the offer that is most advantageous to you.

To learn about your attorney's role in real estate transactions.

To get you started, we have a few tips and suggestions for you:

How to Set Your List Price
Get the House Ready
Market Your Home

How to Set Your List Price

Setting the list price for your home involves evaluating various market conditions and financial factors.
During this phase of the home selling process, Gould and Quinn REALTORS will help you set your list price by determining:

Pricing considerations
Comparable sales
Market conditions
Offering incentives
Estimating net proceeds

1. Pricing Considerations

· Try to put yourself into the buyer's shoes.

· Don't set the price too high - nobody is going to pick your house, even if it is the nicest on the street.

· Don't set the price too low - you are not giving the market enough time to present a buyer willing to pay more.

TIP: Never say "asking" price, which implies you don't expect to get it.

2. Using Comparable Sales

You might have a beautiful and polished house, but buyers will be comparing its price with everything else on the market. Check what the buying public has been willing to pay in the past few months for property in your or similar neighborhood(s). Gould and Quinn REALTORS can furnish data on sale figures and analyze them for a suggested listing price. The decision about how much to ask, though, is always yours.

· The list of comparable sales Gould and Quinn REALTORS will bring to you is used for a "Comparative Market Analysis (CMA)."

· To help in estimating a possible sale price for your house, the analysis will also include data on nearby houses that failed to sell in the past few months, along with their list prices.

· This CMA differs from a formal appraisal in several ways. One major difference is that an appraisal will be based only on past sales. In addition, an appraisal is done for a fee while the CMA is provided by Gould and Quinn REALTORS and may include properties currently listed for sale and those currently pending sale.

· In some circumstances you might request a formal written appraisal (which may cost a few hundred dollars). E.g., if you have a very unique property, if there hasn't been much activity in your area recently, if co-owners disagree about price, and any other circumstance that makes it difficult to put a value on your home.

TIP: If you do order a market value appraisal, make it clear you don't need an elaborate, or full narrative report--the kind that's complete with photos of the house and neighborhood, a map specifying the site, and floor plans is sufficient.

3. Consider Market Conditions

A Comparative Market Analysis (CMA) often includes Days on the Market (DOM) for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months. Gould and Quinn REALTORS can tell you whether our area is currently a buyer's market or a seller's market. In a seller's market, you can price a bit beyond what you really expect, just to see what the reaction will be. In a buyer's market, if you really need to sell promptly, offer an attractive bargain price.

4. Offering Incentives

If you are not in a rush to sell your house, or you want to experiment with prices, sit down with your Gould and Quinn REALTOR and work out a schedule in advance. If there haven't been many prospects viewing your home after three weeks, you may need to lower your list price. If that doesn't bring any prospective buyers, you may need to lower your list price again. Plan on doing that regularly until you find a level that attracts buyers. Make a written schedule in advance, before emotion takes over and you're tempted to dig your heels in.
Sometimes cash incentives are as effective as lowering the price, especially in the lower price range where buyers may be "cash poor." You may offer to pay such items as: Some or all of a buyer's closing costs; and Discount points required by the buyer's lending institution; or if you haven't had much traffic through your house and you’re in a hurry to sell, you may want to add the offer of a bonus to the selling broker, in addition to their commission.

5. Estimating Net Proceeds

Once you’ve been given an estimate of market value by your Gould and Quinn REALTOR, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful as you start looking for another home to buy.
From the estimated sales price, subtract:

· Payoff figure on your present loan(s)

· Broker's commission

· Any prepayment penalty on your mortgage

· Attorney's fees, if any

· Unpaid property taxes.

In addition, your Gould and Quinn REALTOR can tell you whether local customs or rules expects the buyer or seller to pay for the following items:

· Title insurance premium

· Transfer taxes

· Survey fees

· Inspections and repairs for termites and the like

· Recording fees

· Homeowner Association transfer fees and document preparation

· Home protection plan

· Natural hazard disclosure report

As far as closing costs are concerned, you and your eventual buyer may agree on any arrangement that suits you, no matter what local practice dictates. Your Gould and Quinn REALTOR will assist you in estimating what your final closing costs will be. It is difficult to predict what the exact closing costs will be when you negotiate with a particular buyer.

Get the House Ready

A shiny and sparkling house will sell faster and appeals to more buyers. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can't see has probably also been maintained. In readying your house for sale, consider:

How much should you spend
Exterior and curb appeal
Preparing the interior.

1. How Much Should You Spend

In preparing your home for the market, spend as little money as possible. Your Gould and Quinn REALTOR is familiar with buyers' expectations in your neighborhood, and can advise you specifically on what improvements need to be made. Don't hesitate to ask us for advice.

2. Maximizing Exterior and Curb Appeal

Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal. Enhance your home’s exterior and curb appeal by:

Keeping the lawn edged, cut and watered regularly
Trimming hedges, weeding lawns and flowerbeds, and pruning trees regularly
Checking the foundation, steps, walkways, walls and patios for cracks and crumbling
Inspecting doors and windows for peeling paint
Cleaning and aligning gutters
Inspecting and cleaning the chimney
Repairing and replacing loose or damaged roof shingles
Repairing and repainting loose siding and caulking

Keep walks neatly cleared of snow and ice
During spring and summer months considering adding a few showy annuals, perhaps in pots, near your front entrance
Re-sealing an asphalt driveway
Keeping your garage door closed
Storing RVs or old and beaten up teens' jalopies elsewhere while the house is on the market
Applying a fresh coat of paint to the front door.

3. Maximizing Interior Appeal

Enhance your home’s interior by:

· Giving every room in the house a thorough cleaning, as well as removing all clutter. This alone will make your house appear bigger and brighter

· Some homeowners with crowded rooms have actually rented storage garages and moved half their furniture out, creating a sleeker, more spacious look.

· Hiring a professional cleaning service, once every few weeks while the house is on the market. This may be a good investment for owners who are busy elsewhere.

· Removing the less frequently used, even daily used items from kitchen counters, closets, and attics, making these areas much more inviting.

· Since you're anticipating a move anyhow, holding a garage sale at this point is a great idea.

· If necessary, repainting dingy, soiled or strongly colored walls with a neutral shade of paint, such as off-white or beige. The same neutral scheme can be applied to carpets and linoleum.

· Checking for cracks, leaks and signs of dampness in the attic and basement. Repairing cracks, holes or damage to plaster, wallboard, wallpaper, paint, and tiles. Replacing broken or cracked windowpanes, moldings, and other woodwork.

· Inspecting and repairing the plumbing, heating, cooling, and alarm systems.

· Repairing dripping faucets and showerheads.

· Buying showy new towels for the bathroom, to be brought out only when prospective buyers are on the way.

· Sprucing up a kitchen in need of more major remodeling by investing in new cabinet knobs, new curtains, or a coat of neutral paint.

Market Your Home

Your home should be listed, whenever possible, in the local Multiple Listing Service and on our Web site. In addition, our marketing efforts and considerations will include:

Advertising
Showing the property
How long the house has been on the market
Whether you're buying another home

1. Advertising

Advertising in the local newspaper is only one step. Today, properties are also exposed through popular Internet home search/listing services, radio and television promotions, and real estate guides. And a "For Sale" sign on the front lawn is still remarkably effective. We also use brochure boxes along with these signs to market the property. When appropriate, and with your permission, we may send a mailing about your property to neighbors. Sometimes one of them has "a friend or relative who always wanted to live near me." You never know.

2. Showings and Open Houses

To prepare your home for viewing, make it as light, cheerful and serene as possible. In preparing for an open house, you should:

· Pull the drapes back

· Light lamps

· Simmer a few drops of vanilla on the stove

· Light your fireplace

· Set the dining room or kitchen table if you have particularly nice linen or china

· Put fresh towels in the bathroom

· Leave the house so your Gould and Quinn REALTOR is free to deal with prospective buyers in a professional manner.

If your Gould and Quinn REALTOR has scheduled an open house, you may want to notify the neighbors, and assure them that they'll be welcome. They'll jump at the chance to poke around in your house, and sometimes they can turn up a buyer among their friends.

TIP: When preparing your home, think about the techniques that are used to show builders' model homes. Your Gould and Quinn REALTOR will probably find a tactful way to suggest that you not be present while the house is being shown to prospective buyers. This is done because your presence will inhibit their actions and conversations. They won’t feel free to open closets and cabinets, test out the plumbing, and discuss their observations objectively as they walk through. It goes without saying that your children and pets should not be on the premises either.

3. How Long Has Your House Been on the Market?

Professional appraisers sum up their entire body of knowledge in three words - "Buyers Make Value."
If your home is on the market for an extended amount of time, you are probably asking for too much money.
What you do at that point depends on whether you really need to sell, and whether you're working with a time limit. If you're not really motivated to move soon, you can always wait - years if necessary - and hope inflation will catch up with the price you want. The problem is that in that time, your home begins to feel shopworn. Buyers become suspicious of a house that's been for sale for a long time. If, however, you really do need to sell, discuss with your Gould and Quinn REALTOR a schedule for dropping your price gradually until you find a level that attracts buyers. There's no point in saying, "We simply can't sell our house." Anything will sell if the price is right.

4. If You’re Buying Another Home

Don’t spend a great deal of time worrying about what will happen when you're selling one home and buying another. You're not alone. Gould and Quinn REALTORS, lawyers, and title and escrow companies have had plenty of experience in arranging contracts and loans so that the two transactions dovetail smoothly.
It's best to list your present home for sale first. If you do find just the house you want, you can always put in a purchase offer contingent (dependent) on selling your present one. (However, in a hot market you will have difficulty getting the house you want this way.)
Sometimes the seller will sign a contract agreeing to wait a certain period of time while you find a buyer for your house - sometimes not.
If you do find that you need to buy the next house before you've received the proceeds from the present one, lending institutions can sometimes make you a short-term "bridge" loan to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan. Ask your Gould and Quinn REALTOR.