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Info For Sellers |
Seller Information |
Seller Q&A
If you are thinking of selling
your home, chances are you're caught up in a mass of
emotions. You may be looking forward to moving up to
a new home or facing the uncertainty of a major move
across country. You may be reluctant to leave your
memories behind or eager to start new and exciting
adventures. Remember, I am here to help you with any
of your needs. Call or e-mail me today!
To discover what your home is worth in today's
market, click here!
Getting Your House Ready to Sell
• Introduction: Emotion vs. Reason
• De-Personalizing the House
• Removing Clutter, Though You
May Not Think of it as Clutter
• Fixing Up the House Interior
• Fixing up Outside the House
Want to Start Off With a High Sales Price?
Beware!
• Meeting with Realtors
• Which Realtor Do You
Choose?
• What Happens Behind the
Scenes
• Dropping Your Price...Too
Late?
Types of Listing Contracts
• Open Listings
• One-Time Show
• Exclusive Agency Listings
• Exclusive Right to Sell
Details of a Listing Contract
• Price and Terms of Sale
• Lockbox - Yes or No?
• Real Estate Commission
• Multiple Listing Service
• Agency Duties of a Listing Agent
• Resolution of Disputes
Listing Commissions and Related Issues
• Is the Commission
Negotiable?
• How and When the Commission
is Earned
• "Hot" Market Under-Pricing
Strategy - Commission Issues
The Listing Agent & Marketing Your Home
• The "Real" Role of a Listing
Agent
• Preliminary Marketing - the
"For Sale" Sign
• Preliminary Marketing - Flyers
and the Brochure Box
The Listing Agent - Marketing Your House to
Other Agents
• The Multiple Listing Service
• Office Preview
• Broker Previews and Culinary
Delights
• Office Flyers
• Marketing Sessions
The Listing Agent - Marketing Your House to
Homebuyers
• The Purpose of Advertising in
General
• Real Estate Company
Advertising
• Individual Agent Advertising
• Neighborhood
Announcements
• Open Houses
Showing Your House to Home Buyers
• Convenience and Availability
• Why You Should Not Be Home
• Lighting, Fragrances, Pet
Control and More
• Keeping the House Tidy and Neat
Introduction - Emotion vs.
Reason
When conversing with real estate agents, you will
often find that when they talk to you about buying
real estate, they will refer to your purchase as a
"home." Yet if you are selling property, they will
often refer to it as a "house." There is a reason
for this. Buying real estate is often an emotional
decision, but when selling real estate you need to
remove emotion from the equation.
You need to think of your house as a marketable
commodity. Property. Real estate. Your goal is to
get others to see it as their potential home, not
yours. If you do not consciously make this decision,
you can inadvertently create a situation where it
takes longer to sell your property.
The first step in getting your home ready to sell is
to "de-personalize" it.
To the Top ^
De-personalize the
House
The reason you want to "de-personalize" your home is
because you want buyers to view it as their
potential home. When a potential homebuyer sees your
family photos hanging on the wall, it puts your own
brand on the home and momentarily shatters their
illusions about owning the house. Therefore, put
away family photos, sports trophies, collectible
items, knick-knacks, and souvenirs. Put them in a
box. Rent a storage area for a few months and put
the box in the storage unit.
Do not just put the box in the attic, basement,
garage or a closet. Part of preparing a house for
sale is to remove "clutter," and that is the next
step in preparing your house for sale.
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Removing Clutter, Though
You May Not Think of it as Clutter
This is the hardest thing for most people to do
because they are emotionally attached to everything
in the house. After years of living in the same
home, clutter collects in such a way that may not be
evident to the homeowner. However, it does affect
the way buyers see the home, even if you do not
realize it. Clutter collects on shelves, counter
tops, drawers, closets, garages, attics, and
basements.
Take a step back and pretend you are a buyer. Let a
friend help point out areas of clutter, as long as
you can accept their views without getting
defensive. Let your agent help you, too.
Kitchen Clutter
The kitchen is a good place to start removing
clutter, because it is an easy place to start.
First, get everything off the counters. Everything.
Even the toaster. Put the toaster in a cabinet and
take it out when you use it. Find a place where you
can store everything in cabinets and drawers. Of
course, you may notice that you do not have cabinet
space to put everything. Clean them out. The dishes,
pots and pans that rarely get used? Put them in a
box and put that box in storage, too.
You see, homebuyers will open all your cabinets
and drawers, especially in the kitchen. They want to
be sure there is enough room for their "stuff." If
your kitchen cabinets, pantries, and drawers look
jammed full, it sends a negative message to the
buyer and does not promote an image of plentiful
storage space. The best way to do that is to have as
much "empty space" as possible.
For that reason, if you have a "junk drawer," get
rid of the junk. If you have a rarely used crock
pot, put it in storage. Do this with every cabinet
and drawer. Create open space.
If you have a large amount of foodstuffs crammed
into the shelves or pantry, begin using them –
especially canned goods. Canned goods are heavy and
you don’t want to be lugging them to a new house,
anyway – or paying a mover to do so. Let what you
have on the shelves determine your menus and use up
as much as you can.
Beneath the sink is very critical, too. Make sure
the area beneath the sink is as empty as possible,
removing all extra cleaning supplies. You should
scrub the area down as well, and determine if there
are any tell-tale signs of water leaks that may
cause a homebuyer to hesitate in buying your home.
Closet Clutter
Closets are great for accumulating clutter, though
you may not think of it as clutter. We are talking
about extra clothes and shoes – things you rarely
wear but cannot bear to be without. Do without these
items for a couple of months by putting them in a
box, because these items can make your closets look
"crammed full." Sometimes there are shoeboxes full
of "stuff" or other accumulated personal items, too.
Furniture Clutter
Many people have too much furniture in certain rooms
– not too much for your own personal living needs –
but too much to give the illusion of space that a
homebuyer would like to see. You may want to tour
some builders’ models to see how they place
furniture in the model homes. Observe how they place
furniture in the models so you get some ideas on
what to remove and what to leave in your house.
Storage Area Clutter
Basements, garages, attics, and sheds accumulate not
only clutter, but junk. These areas should be as
empty as possible so that buyers can imagine what
they would do with the space. Remove anything that
is not essential and take it to the storage area.
Or have a garage sale.
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Fixing Up the House
Interior
Plumbing and Fixtures
All your sink fixtures should look shiny and new. If
this cannot be accomplished by cleaning, buy new
ones where needed. If you don’t buy something fancy,
this can be accomplished inexpensively and they are
fairly easy to install. Make sure all the hot and
cold water knobs are easy to turn and that the
faucets do not leak. If they do, replace the
washers. It is not difficult at all.
Check to make sure you have good water pressure
and that there are no stains on any of the
porcelain. If you have a difficult stain to remove,
one trick is to hire a cleaning crew to go through
and clean your home on a one-time basis. They seem
to be wonderful at making stains go away.
Ceilings, Walls and Painting
Check all the ceilings for water stains. Sometimes
old leaks leave stains, even after you have repaired
the leak. Of course, if you do have a leak, you will
have to get it repaired, whether it is a plumbing
problem or the roof leaks.
You should do the same for walls, looking for not
only stains, but also areas where dirt has
accumulated and you just may not have noticed. Plus,
you may have an outdated color scheme.
Painting can be your best investment when selling
your home. It is not a very expensive operation and
often you can do it yourself. Do not choose colors
based on your own preferences, but based on what
would appeal to the widest possible number of
buyers. You should almost always choose an off-white
color because white helps your rooms appear bright
and spacious.
Carpet and Flooring
Unless your carpet appears old and worn, or it is
definitely an outdated style or color, you probably
should do nothing more than hire a good carpet
cleaner. If you do choose to replace it, do so with
something inexpensive in a fairly neutral color.
Repair or replace broken floor tiles, but do not
spend a lot of money on anything. Remember, you are
not fixing up the place for yourself. You want to
move. Your goal is simply to have as few negative
impressions upon those who may want to purchase your
property.
Windows and Doors
Check all of your windows to make sure they open and
close easily. If not, a spray of WD40 often helps.
Make sure there are no cracked or broken
windowpanes. If there are, replace them before you
begin showing your home.
Do the same things with the doors – make sure
they open and close properly, without creaking. If
they do, a shot of WD40 on the hinges usually makes
the creak go away. Be sure the doorknobs turn
easily, and that they are cleaned and polished to
look sharp. As buyers go from room to room, someone
opens each door and you want to do everything
necessary to create a positive impression.
Odor Control
For those who smoke, you might want to minimize
smoking indoors while trying to sell your home. You
could also purchase an ozone spray that helps to
remove odors without creating a masking odor.
Pets of all kinds create odors that you may have
become used to, but are immediately noticeable to
those with more finely tuned olfactory senses. For
those with cats, be sure to empty kitty litter boxes
daily. There are also products that you can sprinkle
in a layer below the kitty litter that helps to
control odor. For those with dogs, keep the dog
outdoors as much as possible. You might also try
sprinkling carpet freshener on the carpet on a
periodic basis.
Costs of Repairs
Do not do anything expensive, such as remodeling. If
possible, use savings to pay for any repairs and
improvements – do not go charging up credit cards or
obtaining new loans. Remember that part of selling a
house is also preparing to buy your next home. You
do not want to do anything that will affect your
credit scores or hurt your ability to qualify for
your next mortgage.
To the Top ^
Fixing Up Outside the
House
Most real estate advice tells you to work on the
outside of the house first, but unless there is a
major project involved, we believe it is best to do
it last. There are two main reasons for this. First,
the first steps in preparing the interior of the
house are easier. They also help develop the proper
mind set required for selling - beginning to think
of your "home" as a marketable commodity. Second,
the exterior is the most important. A homebuyer’s
first impression is based on his or her view of the
house from the real estate agent’s car.
So take a walk across the street and take a good
look at your house. Look at nearby houses, too, and
see how yours compares.
Landscaping
Is your landscaping at least average for the
neighborhood? If it is not, buy a few bushes and
plant them. Do not put in trees. Mature trees are
expensive, and you will not get back your
investment. Also, immature trees do not really add
much to the appearance value of the home.
If you have an area for flowers, buy mature
colorful flowers and plant them. They add a splash
of vibrancy and color, creating a favorable first
impression. Do not buy bulbs or seeds and plant
them. They will not mature fast enough to create the
desired effect and you certainly don’t want a patch
of brown earth for homebuyers to view.
Your lawn should be evenly cut, freshly edged,
well watered, and free of brown spots. If there are
problems with your lawn, you should probably take
care of them before working on the inside of your
home. This is because certain areas may need re-soding,
and you want to give it a chance to grow so that
re-sod areas are not immediately apparent. Plus, you
might want to give fertilizer enough time to be
effective.
Always rake up loose leaves and grass cuttings.
House Exterior
The big decision is whether to paint or not to
paint. When you look at your house from across the
street, does it look tired and faded? If so, a paint
job may be in order. It is often a very good
investment and really spruces up the appearance of a
house, adding dollars to offers from potential
homebuyers.
When choosing a color, it should not be something
garish and unusual, but a color that fits well in
your neighborhood. Of course, the color also depends
on the style of your house, too. For some reason,
different shades of yellow seem to elicit the best
response in homebuyers, whether it is in the trim or
the basic color of the house.
As for the roof, if you know your house has an
old leaky roof, replace it. If you do not replace a
leaky roof, you are going to have to disclose it and
the buyer will want a new roof, anyway. Otherwise,
wait and see what the home inspector says. Why spend
money unnecessarily?
The Back Yard
The back yard should be tidy. If you have a pool or
spa, keep it freshly maintained and constantly
cleaned. For those that have dogs, be sure to
constantly keep the area clear of "debris." If you
have swing sets or anything elaborate for your kids,
it probably makes more sense to remove them than to
leave them in place. They take up room, and you want
your back yard to appear as spacious as possible,
especially in newer homes where the yards are not as
large.
The Front Door & Entryway
The front door should be especially sharp, since it
is the entryway into the house. Polish the door
fixture so it gleams. If the door needs refinishing
or repainting, make sure to get that done.
If you have a cute little plaque or shingle with
your family name on it, remove it. Even if it is
just on the mailbox. You can always put it up again
once you move. Get a new plush door mat, too. This
is something else you can take with you once you
move.
Make sure the lock works easily and the key fits
properly. When a homebuyer comes to visit your home,
the agent uses the key from the lock box to unlock
the door. If there is trouble working the lock while
everyone else stands around twiddling their thumbs,
this sends a negative first impression to
prospective homebuyers.
To the Top ^
Meeting With Realtors
So you’ve decided to sell your home and have a
fairly good idea of what you think it is worth.
Being a sensible home seller, you schedule
appointments with three local listing agents who’ve
been hanging stuff on your front doorknob for years.
Each Realtor comes prepared with a "Competitive
Market Analysis" on fancy paper and they each
recommend a specific sales price.
Amazingly, a couple of the Realtors have come up
with prices that are lower than you expected.
Although they back up their recommendations with
recent sales data of similar homes, you remain
convinced your house is worth more. When you
interview the third agent’s figures, they are much
more in line with your own anticipated value, or
maybe even higher. Suddenly, you are a happy and
excited home seller, already counting the money.
To the Top ^
Which Realtor do you
choose?
If you’re like many people, you pick Realtor number
three. This is an agent who seems willing to listen
to your input and work with you. This is an agent
that cares about putting the most money in your
pocket. This is an agent that is willing to start
out at your price and if you need to drop the price
later, you can do that easily, right? After all,
everyone else does it!
The truth is that you may have just met an agent
engaging in a questionable sales practice called
"buying a listing." He "bought" the listing by
suggesting you might be able to get a higher sales
price than the other agents recommended. Most
likely, he is quite doubtful that your home will
actually sell at that price. The intention from the
beginning is to eventually talk you into lowering
the price.
Why do agents "buy" listings? There are basically
two reasons. A well-meaning and hard working agent
can feel pressure from a homeowner who has an
inflated perception of his home’s value. On the
other hand, there are some agents who engage in this
sales practice routinely.
To the Top ^
What Happens Behind
the Scenes
Whichever the case, if you start out with too high a
price on your home, you may have just added to your
stress level, and selling a home is stressful
enough. There will be a lot of "behind the scenes"
action taking place that you don’t know about.
Contrary to popular opinion, the listing agent
does not usually attempt to sell your home to a
homebuyer. That isn’t very efficient. Listing agents
market and promote your home to the hordes of other
local agents who do work with homebuyers,
dramatically increasing your personal sales force.
During the first couple of weeks your home should be
a flurry of activity with buyer’s agents coming to
preview your home so they can sell it to their
clients.
If the price is right.
If you and your agent have overpriced, fewer
agents will preview your home. After all, they are
Realtors, and it is their job to know local market
conditions and home values. If your house is
dramatically above market, why waste time? Their
time is better spent previewing homes that are
priced realistically.
To the Top ^
Dropping Your Price...Too
Late
Later, when you drop your price, your house is "old
news." You will never be able to recapture that
flurry of initial activity you would have had with a
realistic price. Your house could take longer to
sell.
Even if you do successfully sell at an above market
price, your buyer will need a mortgage. The mortgage
lender requires an appraisal. If comparable sales
for the last six months and current market
conditions do not support your sales price, the
house won’t appraise. Your deal falls apart. Of
course, you can always attempt to renegotiate the
price, but only if the buyer is willing to listen.
Your house could go "back on the market."
Once your home has fallen out of escrow or sits
on the market awhile, it is harder to get a good
offer. Potential buyers will think you might be
getting desperate, so they will make lower offers.
By overpricing your home in the beginning, you could
actually end up settling for a lower price than you
would have normally received.
To the Top ^
Types of Listing Contracts
There are several different types of listing
contracts, but very few of them are used. The
"Exclusive Right to Sell" is the most common, but
there is the "open listing," the "exclusive agency
listing," and the "one-time show."
Open Listing
The "open listing" is mostly used by people trying
to sell their home by owner who are also willing to
work with real estate agents. Basically, it gives a
real estate agent the right to bring buyers around
to view your home. If their client buys your home,
the agent earns a commission. There is nothing
exclusive about an open listing and a home seller
can give out such listings to every agent who comes
around.
For that reason, no agent is going to market your
home or put it in the Multiple Listing Service. If
your home fits the criteria for one of their
clients, and it is convenient, they may be willing
to show it to their client. That is all an "open
listing" is good for.
To the Top ^
One-Time Show
A "one-time show" is similar to an open listing in
many respects, as it is most often used by real
estate agents who are showing a FSBO (for sale by
owner) to one of their clients. The home seller
signs the agreement, which identifies the potential
buyer and guarantees the agent a commission should
that buyer purchase the home. This prevents the
buyer and seller from negotiating directly later and
trying to avoid paying the agent’s commission.
As with an open listing, agents will not be
spending money on marketing your home and it will
not be placed in the Multiple Listing System.
To the Top ^
Exclusive Agency Listing
An "exclusive agency" listing allows an agent to
list and market your home, guaranteeing them a
commission if the house sells through any real
estate agent or company. It also allows sellers to
seek out buyers on their own.
This is not a popular type of listing agreement.
The reason is that there is not much incentive for
agents to spend money marketing your home. If you
come up with your own buyer, they have spent money
they cannot earn back through the real estate
commission. Plus, it is too easy for a greedy buyer
to go around the agent and negotiate directly with
the seller.
If you find an agent willing to accept such a
listing, do not expect too much from them. They will
probably just place it in the Multiple Listing
Service and sit around to see if something happens.
A good agent would never accept such a listing, and
you probably want a good agent.
To the Top ^
Exclusive Right to Sell
Giving a real estate agent the "exclusive right to
sell" your property does not mean that there will
not be other agents involved. Your agent is the
listing agent and part of his or her job is to
market your home to other agents who work with
buyers. Those agents will show your home to their
clients. Regardless of who sells the home, even if
you sell it yourself to a friend at work, your
listing agent will earn a commission.
An exclusive right to sell is the only type of
listing an effective real estate agent will accept.
This is because they have a reasonable expectation
of earning back any money they spend on promoting
and marketing your property.
To the Top ^
Details of a Listing Contract
Obviously the name of the seller and the property
address will be included in the listing contract.
There are many other things that are included, too,
and you should be aware of them.
Price and Terms of
Sale
When setting the terms of sale, the main thing you
are concerned with is the price. You should have a
basic idea of what your home is worth by keeping
track of other sales in the neighborhood. Plus, you
have probably interviewed at least two real estate
agents and they have given you their own ideas.
Exercise great care in determining your asking
price, making sure not to set it too high or too
low.
In addition to the price, you will disclose what
personal property, if any, goes with the house when
you sell it. Personal property is anything that is
not attached or fixed to the home, such as washers,
dryers, refrigerators, and so on.
There may be some item that is considered "real
property" that you do not intend to include in the
sale. Real property is anything that is attached to
the home. For example, you may have a chandelier
that has been in your family for generations and you
take it from home to home when you move. Since the
chandelier is attached to the house, it is
considered "real property" and a reasonable buyer
would normally expect it to go with the house.
To the Top ^
Lockbox - Yes or No?
A lockbox is a basically a padlock with a cavity
inside where a key to your home can be placed. Only
someone with an electronic key or the combination
can get into the lockbox and access the key. Having
a lockbox available at your house makes it easy for
other agents to get access to your house.
Without the lockbox, agents representing buyers
would have to set appointments to meet you or your
agent at the house so they could gain access and
view the home. This would be inconvenient. Since
almost every other house does have a lockbox
available, if you do not allow one most agents will
simply not show your property. You will miss out on
lots of potential buyers.
The listing contract specifies whether you allow a
lockbox or not. It is locked into place, usually on
the front door and cannot be removed. Only other
agents can access the key that is located within the
lockbox.
To the Top ^
Real Estate Commission
In some areas of the country there is a certain
percentage that real estate agents expect to earn as
a commission. This commission amount is a certain
percent of the sales price. Or, some companies will
charge a set fee for their services. However, just
like anything else in real estate, this amount is
negotiable. When completing the listing agreement,
you and your agent will agree on the amount of the
real estate commission.
To the Top ^
Multiple Listing Service
Your listing contract should specify whether or not
the house will be listed with the local MLS
(multiple listing service). It is definitely in your
interest to have the house listed. This is because
your sales force is automatically multiplied by
however many agents are members of the local MLS. If
your house is not listed, then you only have one
agent working for you instead of many.
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Agency Duties of a Listing
Agent
The listing contract will specify that your agent is
acting as a "seller’s agent." This means that, in
the sale of your house, they are working for you and
only you. However, there may be times when your
listing agent has a client who wants to buy your
home. For that reason, there is a little "wiggle
room" in the listing contract. If your agent also
represents the buyer, the listing contract should
specify that they provide an additional disclosure
that details their duties as a dual agent.
The contract also provides permission for your
listing agent to act as an agent for others on other
transactions. They can continue to list other
properties, and represent buyers looking at other
homes.
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Resolution of Disputes
There are times when you and your agent have a
disagreement that you cannot resolve by yourselves.
Maybe the agent did a poor job or misrepresented
something. Maybe your agent was really doing their
job correctly, but you did not understand. Perhaps
the agent will have a dispute with you.
The listing contract specifies what methods will
be used to settle such disputes. You can choose to
accept binding arbitration, which is usually cheaper
than hiring a lawyer and going to court. Usually,
matters that can be dealt with in a small claims
court are excluded from having to go to binding
arbitration.
You are not required to sign or initial the
binding arbitration clause. This would leave you
free to hire an attorney and pursue disputes in
civil court instead of binding arbitration. Consult
your attorney for advise on this legal matter.
To the Top ^
Are Commissions
Negotiable?
In some areas of the country there is a certain
percentage that real estate agents expect to earn as
a commission. This commission amount is a certain
percent of the sales price. Or, some companies will
charge a set fee for their services. However, just
like anything else in real estate, this amount is
negotiable. When completing the listing agreement,
you and your agent will agree on the amount of the
real estate commission.
To the Top ^
Cut-Rate Listing
Commissions
With the advent of the web, a lot of agents are
offering "cut-rate" commissions. Most of the time,
lower commissions are tied to a lower level of
service. If all you want is to be listed with the
Multiple Listing Service and a sign in the front
yard, then a cut-rate commission may be right for
you. If you want an agent who will actively promote
your property to other agents and spend money on
advertising, then you probably are not going to get
that level of service with a reduced commission.
At other times, the lower commissions are offered
when you agree to tie in to other services offered
by the broker, such as agreeing to use a specific
lender, escrow, settlement, or title company. The
broker (not the agent) will probably have some type
of ownership or profit participation in those
businesses. The problem with agreeing to tie in to
these other companies is that they do not have to be
as competitive in pricing their products or
services.
Another common practice when you see an ad for a
reduced commission is that the compensation is
lowered when you agree to buy your next home through
the same agent or broker. Usually, the reduced
commission is not really being offered on the sale
of your existing home but on the purchase of your
next one. The ads are usually unclear on this.
As a result, when you see an offer for a lower
commission, you should analyze what you are giving
up by accepting such an offer. It probably will not
be readily apparent in the advertisement. Be sure to
ask lots of questions.
To the Top ^
How and When Listing
Commissions are Earned
Your listing contract specifies a listing price.
Your agent’s job is to bring a "ready, willing and
able" buyer to present an offer. If you reach
agreement with the buyer, then the agent has done
his job and earned the commission. Once the sale has
closed, the real estate broker gets paid from the
proceeds of the sale.
If the buyer proves unable or unwilling to
conclude the sale, the house is placed back on the
market and the agent has to begin earning his or her
commission all over again.
However, if the seller backs out or does not
accept an offer that meets the price and terms of
the listing agreement, the listing broker has still
earned the commission. They may want to be paid,
even though you did not actually sell your home.
Therefore, it is very important to carefully
consider every detail when completing your listing
contract and accepting an offer to buy your
property.
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"Hot Market"
Under-Pricing Sales Technique – Commission Issues
During a "hot market" there is a certain marketing
technique which, though very effective, could cause
trouble because of the way the contract is written.
This is the practice of "under-pricing" the home. In
a hot market, a home that is under-priced gets a lot
of attention from other Realtors, and they all start
showing your home to their clients. Often, you get
into a situation where multiple offers are presented
and the price starts going up because of the frenzy.
You end up selling the house above your asking price
and perhaps above what you could have received if
you had priced it traditionally.
However, the technique does have the potential to
backfire, so you should build safeguards to prevent
having to pay a commission "just in case."
You see, the listing contract usually states that
if an offer is received that meets the terms
presented in the contract (including price), the
real estate agent has earned his or her commission –
even if you decide not to sell. A reputable agent
would never attempt to collect a commission if they
were using the "under-pricing" technique and it
backfired, even if they are technically entitled to
one. For that reason, in the "additional terms"
space on the listing contract, you should specify
your true target price – when the agent has really
earned the commission.
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The "Real" Role of a
Listing Agent
When you bought your home, you probably used the
services of a real estate agent. You found that
agent through a referral from a friend or family
member, or through some sort of advertising or
marketing. The agent helped you in many ways and
eventually you found the house of your dreams, made
an offer, closed the deal, and moved in.
For whatever reason, now it is time to sell your
home and you need a real estate agent again. Many
home sellers, especially those selling their first
home, tend to think all agents are similar to the
one that helped them buy their home.
Although real estate agents can (and do) work
with both buyers and sellers, most tend to
concentrate more on one than the other. They
specialize. When you bought your home, you probably
worked with a "selling agent" – an agent that works
mostly with buyers. Because of the nature of real
estate advertising and marketing, the public’s main
image of the real estate profession is that of the
selling agent.
As a result, many homeowners expect their listing
agent to do the same things that a selling agent
does – find someone to buy their home. After all,
they do the things you would expect if they were
searching for buyers. A sign goes up in the front
yard. Ads are placed in the local newspaper and real
estate magazines. Your agent holds an open house on
the weekend. Your house is proudly displayed on the
Internet.
But this is only "surface" marketing. More
important activity occurs behind the scenes. After
the "for sale" sign goes up and flyers are printed,
your agent’s main job is to market your home to
other agents, not to homebuyers.
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The "For Sale" Sign
It seems fairly obvious that when you put your house
up for sale that your agent will put a "for sale"
sign in the front yard. The sign will identify the
agent’s company, the agent, and have a phone number
so prospective buyers can call and get information.
Signs are great at generating phone calls, even
if very few actually purchase the home they call
about. However, you might be one of the lucky ones.
For that reason, you should determine what happens
when someone calls the number on the sign. Does a
live person answer the phone or does the call go to
a voicemail or recorder?
You want someone to answer the phone while the
caller is "hot." When buyers call the number on the
sign, the call should go to a live person who can
answer questions immediately. A potential buyer may
be on the street outside your home, placing the call
using a cell phone.
To the Top ^
Flyers and a Brochure Box
Your agent should prepare a flyer that displays a
photo and provides details about your house. There
should also be a phone number so buyers can contact
your agent to get additional information. The flyers
should be displayed in a prominent location in your
home and also in a brochure box attached to the "for
sale" sign.
The brochure box is convenient for those buyers
who drive by and just happen to see the "for sale"
sign in front of your house. It provides enough
information so they can determine if they want to
follow up with a phone call or inform their own
agent they are interested in your house.
To the Top ^
The Multiple Listing Service
Even before the sign is up and the brochures are
ready, your agent should list your property with the
local MLS (Multiple Listing Service). The MLS is a
database of all the homes listed by local real
estate agents who are members of the service, which
is practically all of the local agents.
Important information about your property is
listed here, from general data such as square
footage and number of rooms, to such details as
whether you have central air conditioning or hard
wood flooring. There should also be a photo, and a
short verbal description of what makes your house
"special."
Agents search the database for homes that fit the
price range and needs of their clients. They pay
special attention to homes that have been recently
placed on the market, which is one reason you get a
lot of attention when your house is first listed.
Many agents will want to preview the home before
they show it to their clients.
The main point about having your house listed in
the MLS is that you expand your sales force by the
number of local MLS members. Instead of having just
one agent working for you, now you may have hundreds
or more, depending on the size of your community.
The listing agent’s main job to make sure that
the other MLS members know about your house. This is
accomplished through listing your house in the
Multiple Listing Service, broker previews and
advertising targeted toward other agents, not
homebuyers.
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Office Preview
If your listing agent belongs to a fairly sizable
office, an "office preview" will introduce your
house to other agents working in the same office. In
effect, they get a "head start" on selling your
property. Once a week, the office’s agents will get
together, share vehicles, and "caravan" to all of
the new listings. They generally pull up in front of
your house at about the same time (some even use a
bus) then file quickly through your home like some
bizarre "follow the leader" game.
It can be amazing to watch.
They go through very quickly, since most of them
are familiar with similar models of your house. They
are usually looking for anything memorable or
different and to determine if your house is one they
would be proud to show their clients. Then they all
pile back into their cars and move on to the next
house on the tour.
But some of them come back…with buyers.
To the Top ^
Broker Previews and Culinary
Delights
Broker preview is very similar to an office preview,
except it is open to all the members of the local
multiple listing service. It usually occurs within
the first week your house is placed on the market,
just after the office preview. However, there are
lots of new listings to choose from, and not all the
agents preview all the new listings each week. You
may not get as many agents visiting your home as
there were on the office preview.
Unless your agent "entices" them to come. This is
where you could provide some help, if you are so
inclined.
Though it may seem funny, nothing seems to
attract a real estate agent like the offer of free
food. So if your agent offers "free eats" at a
broker preview, you are likely to get more visitors
than if nothing is offered. Realize that many agents
have been on this weekly circuit for years, so
"boring" food does not really accomplish much. In
other words, sandwiches supplied from the local
grocery chain are not very enticing.
If you want to help your agent sell your home
quickly, try and help them be creative and original
in the choice of a culinary treat.
Of course, some agents will actually come to look
at your house, too – whether food is offered or not.
Maybe.
To the Top ^
Office Flyers
Your agent will undoubtedly prepare flyers about
your property so that prospective homebuyers can be
informed about the attractive features of your
house. These flyers (or similar ones) should also be
sent to all the local real estate offices, too. Most
areas have a weekly flyer service that delivers
advertisements to all of the local offices. Since
agents get these flyers every week, they do not
always look at them. However, a large percentage of
them do. Some agents will keep the flyer and bring
buyers to your house.
The flyer should be done professionally and
photocopy well. Ask your agent to show you copies of
office flyers they have done in the past.
To the Top ^
Marketing Sessions
Your agent probably belongs to a local association
of Realtors and they often have meetings once a
month. At these meetings there is often a "marketing
session" where some agents stand up and tell about
their listings and other agents stand up and tell
about their buyers. Your listing agent has an
opportunity to "pitch" your house at these marketing
sessions.
At the same time, these sessions may not be as
effective as they were in the past. One reason is
that they are often more social occasions than
serious business meetings. Another reason is that,
as technology has expanded, local associations have
tended to merge and create larger Multiple Listing
Services and Associations. Local meetings have
become poorly attended gatherings.
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The Purpose of
Advertising in General
Every home seller likes to be assured that their
listing agent or the real estate company will run
ads featuring their home. Newspaper ads could be
large display ads with lots of listings or small
classified ads featuring just your property. Ads may
also appear in local real estate magazines and your
listing will also show up on the Internet.
Of course the agents and companies will run ads
featuring your house, but not for the reasons you
expect.
You see, the main job of advertising is not to
sell your house directly. Advertising creates phone
calls and some of those callers become clients of
the agents answering the calls. This builds up a
pool of homebuyers looking for property in general,
all represented by selling agents. Multiply this by
all the agents and companies who also advertise
homes, and there is a large pool of homebuyers in
the market at any given time – all of whom are
represented by selling agents.
The agents representing those homebuyers know
about your home because it is listed in the Multiple
Listing Service, has been on office and broker
preview, and because your agent may have also sent
flyers to all the local real estate offices.
The agents match up their clients with available
homes, one of which may be yours. Then they show the
homes to their clients, who eventually make an offer
on one. That is how your house gets sold. Ads create
a pool of clients, one of which buys your home. Ads
do not usually sell your house directly.
To the Top ^
Real Estate Office
Advertising
As mentioned previously, advertising your home in
newspapers and magazines rarely sells your home
directly. More likely than not, the buyer who
eventually purchases your home will have called on a
totally different house. The same thing happens with
buyers who call on your house. They will probably
buy something else.
You still want to be certain the real estate
company selling your house runs ads in the local and
major newspapers, whether they feature your house or
not. The ads generate phone calls to the real estate
office, and if those agents viewed your house on the
office preview, they will be familiar with it. This
is how your property is sold.
Or you could be one of the lucky ones – someone
calling on your house may actually end up buying it.
You should also realize that when a company
advertises the homes they have for sale, there is
more than one objective. Sure, the real estate
office wants to generate phone calls and sell
houses, but the advertising also shows home sellers
how effectively they market properties. This
impresses not only you, but others who may be
thinking of selling their home.
The advertising brings in more listings, which
generate more ad calls, which produces more
buyers….and that is how real estate advertising
really works.
To the Top ^
Individual Agent
Advertising
Individual agents may advertise your home for the
same reasons as companies do. They usually advertise
in classified ads or in specialty magazines
featuring houses available for sale.
As in other types of advertising, these ads
rarely sell your home. Once again, the main goals of
advertising are to accumulate homebuyers as clients,
and to impress you and future home sellers with how
well they market their listings. Some agents
actually do sell their own listings, but not that
often.
It is much more productive and beneficial if your
listing agent directs most of his or her marketing
efforts toward other agents. Since this is "behind
the scenes" marketing that you don’t actually see,
it is often difficult for you to measure how hard
the agent is working for you.
It is a mistake to measure your agent’s
effectiveness solely by counting the number of
newspaper and magazine ads featuring your property.
Neighborhood
Announcements
When you first list your home many agents send
"announcements" to all of the other houses in your
neighborhood. This can be done in the form of
postcards, a letter, or flyers left hanging on the
front door. These are important because your
neighbors might have friends who are looking to buy
a house.
The announcements create "word of mouth"
advertising, which is the best kind.
To the Top ^
Open Houses
An open house when your property is first placed on
the market can be very important, but not for the
reasons most homeowners think. Just like with
advertising, most visitors to open houses rarely buy
the house they come to look at. They may not even
know the price of your home when they stop by to
visit – they probably just followed an "Open House"
sign to your door.
An open house performs a similar function to the
neighborhood announcements – it lets all of your
neighbors know that your house is for sale, and it
practically invites them to come "take a look."
Being generally nosy, a lot of your neighbors will
take advantage of the invitation.
And they may tell their friends about your house,
creating more "word of mouth" advertising.
Of course, there are other reasons for holding open
houses, too. Listing agents who "farm" a particular
neighborhood use them as an opportunity to meet with
other local homeowners who will someday be selling
their home. Your agent may hope to list their homes
in the future.
Open houses held after your home has been on the
market awhile do not usually serve a useful purpose
in selling your home. Most of the neighbors already
know your house is for sale and open house visitors
rarely buy the homes they visit.
However, if you really want more open houses,
your listing agent may allow other agents to hold it
open. Open houses attract prospective homebuyers and
agents hope to convince some of those homebuyers to
become their clients.
To the Top ^
Showing the House to
Potential Home Buyers
Your house should always be available for show, even
though it may occasionally be inconvenient for you.
Let your listing agent put a lock box in a
convenient place, to make it easy for other agents
to show your home to homebuyers. Otherwise, agents
will have to schedule appointments, which is an
inconvenience. Most will just skip your home to show
the house of someone else who is more cooperative.
Most agents will call and give you at least a
couple of hours notice before showing your property.
If you refuse to let them show it at that time, they
will just skip your house. Even if they come back
another time, it will probably be with different
buyers and you may have just lost a chance to sell
your home.
To the Top ^
Why You Should Not Be
Home
Homebuyers will feel like intruders if you are home
when they visit, and they might not be as receptive
toward viewing your home. Visit the local coffee
house, yogurt shop, or take the kids to the local
park. If you absolutely cannot leave, try to remain
in an out of the way area of the house and do not
move from room to room. Do not volunteer any
information, but answer any questions the agent may
ask.
To the Top ^
Lighting
When you know someone is coming by to tour your
home, turn on all the indoor and outdoor lights –
even during the day. At night, a lit house gives a
"homey" impression when viewed from the street.
During the daytime, turning on the lights prevents
harsh shadows from sunlight and it brightens up any
dim areas. Your house looks more homey and cheerful
with the lights on.
To the Top ^
Fragrances
Do not use scented sprays to prepare for visitors.
It is too obvious and many people find the smells of
those sprays offensive, not to mention that some may
be allergic. If you want to have a pleasant aroma in
your house, have a potpourri pot or something
natural. Or turn on a stove burner for a moment and
put a drop of vanilla extract on it. It will smell
like you have been cooking.
To the Top ^
Pet Control
If you have pets, make sure your listing agent puts
a notice with your listing in the multiple listing
service. The last thing you want is to have your pet
running out the front door and getting lost. If you
know someone is coming, it would be best to try to
take the pets with you while the homebuyers tour
your home. If you cannot do that, It is best to keep
dogs in a penned area in the back yard. Try to keep
indoor cats in a specific room when you expect
visitors, and put a sign on the door. Most of the
time, an indoor cat will hide when buyers come to
view your property, but they may panic and try to
escape.
To the Top ^
The Kitchen Trash
Especially if your kitchen trash can does not have a
lid, make sure you empty it every time someone comes
to look at your home – even if your trash can is
kept under the kitchen sink. Remember that you want
to send a positive image about every aspect of your
home. Kitchen trash does not send a positive
message. You may go through more plastic bags than
usual, but it will be worth it.
To the Top ^
Keeping the House Tidy and
Neat
Not everyone makes his or her bed every day, but
when selling a home it is recommended that you
develop the habit. Pick up papers, do not leave
empty glasses in the family room, keep everything
freshly dusted and vacuumed. Try your best to have
it look like a model home – a home with furniture
but nobody really lives there.
To the Top ^
| Robert Savage is a real estate
agent with the Realtor designation. He is the team leader for the
OurGulfCoast team of Sun Stone Property in the Pensacola, Pensacola
Beach, Pace, Gulf Breeze, Milton, Navarre, Navarre Beach, Fort Walton
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Call Bob at 850-934-0049! |
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