7 Pricing Myths to Stop Believing If You Ever Hope to Sell Your House

Pricing your own home is hard. Of course, you want to make a profit. Of course, all that money you spent installing a swimming pool or a half-bath will be recouped, because you’re leaving your digs in better shape than when you bought it, right?

Well, not necessarily. Too many home sellers fall prey to myths about home pricing that seem to make sense at first, but don’t jive with the reality of real estate markets today. To make sure you haven’t bought into any of this—since the buyers you’re trying to woo sure haven’t—here are some common pricing myths you’ll want to rinse from your brain so you kick off your home-selling venture with realistic expectations.

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1. You always make money when you sell a home

Sure, real estate tends to appreciate over time: Home prices increased by approximately 5% by the end of 2017 and continue rising 3.5% in 2018. But selling your home for more than you paid is by no means a given, and your return on investment can vary greatly based on where you live.

2. Price your house high to make big bucks

We know what you’re thinking: “Hey, it’s worth a shot!” But if you start with some sky-high asking price, you’ll soon come back to Earth when you realize that an overpriced home just won’t sell.

While the payday might sound appealing, you’re actually sacrificing your best marketing time in exchange for the remote possibility that someone will overpay for your home.

RELATED: Home Won’t Sell? Check The Price

While certain buyers might be suckered in, this becomes far less likely if they’re working with a buyer’s agent who will know all too well when a home is overpriced, and advise their client to steer clear. And this can lead to problems down the road (as our next myth indicates).

3. If your home’s overpriced, it’s no big deal to lower it later

Sorry, but overpricing your home isn’t easily fixed just by lowering it later on. The reason: Homes that have lingered on the market for months make buyers presume that something must be wrong. As such, they might still steer clear, or offer even less than the price you’re now asking.

Bottom line: Price your home appropriately from the beginning for your best shot at having a quick and easy sale.

RELATED: The Importance of Proper Pricing

4. Pricing your home low means you won’t make as much money

Similarly, sellers are often leery of pricing their home on the low end. But as counterintuitive as this seems, this strategy can often pay off big-time. Here’s why: Low-priced homes drum up tons of interest, which could result in a bidding war that could drive your home’s price past your wildest dreams.

5. You can add the cost of any renovations you’ve made

Let’s say you overhauled your kitchen or added a deck. It stands to reason that whatever money you paid for these improvements will be recouped in full once you sell—after all, your home’s new owners are inheriting all your hard work.

RELATED: Home Renovations That Yield The Greatest Return On Investment

The reality: While your renovations might see some return on investment, you’ll rarely recoup the whole amount. On average, you can expect to get back 64% of every dollar you spend on home improvements. Plus that profit can vary greatly based on which renovation you do.

6. A past appraisal will help you pinpoint the right price

If you have an appraisal in hand, from when you bought or refinanced your house, you might think that’s a logical place to start to price your home. It’s not!

An appraisal assigns your home a value based on market conditions at a specific date, so it becomes old news very quickly. In fact, lenders typically won’t accept appraisals that are more than 60 days old because lenders know markets can change quickly.

7. Your agent might overprice the house to make a bigger commission

Don’t even go there.

While it’s true that an agent’s commission is based on the selling price of a house, the disparity will end up being negligible. For example, the difference in commission between a $300,000 house and one that’s $310,000 is about $150.

No real estate agent is going to lose a sale for the sake of a couple hundred dollars.

YOUR TURN

Do you have any home selling myths to add to our list? Sound off on The Patrick Parker Realty Facebook Page or our Twitter feeds. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.

Top 5 Reasons You Shouldn’t FSBO

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO).

FREE DOWNLOAD: Critical Info For FSBOs

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There are several reasons why this might not be a good idea for the vast majority of sellers. Here are the top five reasons:

1. Exposure to Prospective Buyers

Recent studies have shown that 95% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

• 49% on the Internet
• 31% from a Real Estate Agent
• 7% from a Yard Signs
• 1% from Newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

FREE DOWNLOAD: Home Selling Essentials
Everything You Need To Know To Sell Your Home Fast For Top Dollar

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies, which work for the buyer and will almost always find some problems with the house
• The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since the National Association of Realtors began collecting data in 1981.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

RELATED: Reasons Why You Need A Real Estate Agent To Sell Your Home

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

YOUR TURN

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer. Did you go the FSBO route? What did you learn? Are you considering going FSBO? What questions or concerns do you have? Sound of on our Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.

10 Top Secrets To Selling Your Home

So you’ve decided to put your house up for sale. Now what? Aside from hiring a real estate agent, there are a few other important matters to address before your home is listed and potential buyers start coming through the door. Some of these items, more important than others.

FREE DOWNLOAD: Home Selling Essentials
Everything You Need To Know To Sell Your Home

It’s important to remember that while you may look around your abode and see your dream home, not everyone will agree. After all, potential buyers aren’t buying your aesthetic. They’re after square footage, closet space, great light, and up-to-date—maybe even brand-new—appliances and fixtures. Thinking like a buyer, we uncover the Top 10 Secrets to selling your home fast for top-dollar.

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Selling Secret #10: Pricing it right

Pricing is the most important aspect of selling your home and you need an experienced Listing Agent with extensive market knowledge. Your Agent will consider up-to-date information on what is happening in the marketplace and the price, and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and smoothly.

RELATED: The Importance of Proper Pricing

Selling Secret #9: Half-empty closets

Storage is something every buyer is looking for and can never have enough of. Take half the stuff out of your closets then neatly organize what’s left in there. Buyers will snoop, so be sure to keep all your closets and cabinets clean and tidy.

Selling Secret #8: Light it up

Maximize the light in your home. After location, good light is the one thing that every buyer cites that they want in a home. Take down the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do make your house bright and cheery – it will make it more sellable.

Selling Secret #7: Play the agent field

A secret sale killer is hiring the wrong broker. Make sure you have a broker who is totally informed. They must constantly monitor the multiple listing service (MLS), know your marketplace and understand the latest available marketing methods.

RELATED: How to Interview A Listing Agent to Sell Your Home

Look for a Real Estate Agent who embraces technology – a tech-savvy one has many tools to get your house sold.

Selling Secret #6: Conceal the critters

You might think a cuddly dog would warm the hearts of potential buyers, but you’d be wrong. Not everybody is a dog- or cat-lover. Buyers don’t want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning an open house, send the critters to a pet hotel for the day.

Selling Secret #5: Don’t over-upgrade

Quick fixes before selling always pay off. Mammoth makeovers, not so much. You probably won’t get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get a new fresh coat of paint on the walls. Clean the curtains or go buy some inexpensive new ones. Replace door handles, cabinet hardware, make sure closet doors are on track, fix leaky faucets and clean the grout.

Selling Secret #4: Take the home out of your house

One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.

Selling Secret #3: The kitchen comes first

You’re not actually selling your house, you’re selling your kitchen – that’s how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated.

RELATED: Home Staging Ideas for the Kitchen to Make Buyers Bite

The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.

Selling Secret #2: Always be ready to show

Your house needs to be “show-ready” at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.

RELATED: A Quick ‘Cover Your Bases’ Home Prep Checklist Before A Showing

Selling Secret #1: The first impression is the only impression

No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel warm, welcome and safe as they approach the house. Spruce up your home’s exterior with inexpensive shrubs and brightly colored flowers. You can typically get a 100-percent return on the money you put into your home’s curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.

YOUR TURN

What home selling secrets do you have to add to our list? We want to hear from you! Sound of on our Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.

Why the Holidays Are A Great Time to Sell Your Home

When it comes to real estate, many believe the ideal time to sell your home often falls in the spring months. After all, people often hunker down during the winter or are too busy with the holidays to think about purchasing a new home. Not to mention that people like to start shopping in the spring to make sure they are settled in their home before the start of a new school year.

FREE DOWNLOAD: Home Selling Essentials: The Ultimate Guide

But putting your house up for sale around the holidays has its benefits. Sure, you may not get into a bidding war, but you are going to deal with serious buyers who are ready to pull the trigger.

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Consider these major benefits to selling your home this holiday season:

1. There’s Less Inventory

Conventional wisdom says people should wait until the spring to get the most from a home sale. But studies have shown that homes listed around the holidays can not only command more money, but can also sell quicker than ones listed in the spring.

One of the reasons is there is less competition during the holidays. For a multitude of reasons people won’t put their houses up for sale when the holidays are coming up, and so the ones shopping aren’t going to have dozens of houses to choose from. In the spring, inventory usually picks up, and price wars break out in coveted neighborhoods. But during the holidays, there will be limited choices which means a homeowner can have a higher asking price.

2. Buyers Are More Serious

Anyone who is shopping for a new home around Thanksgiving, Christmas or New Year’s is undoubtedly going to be a serious buyer. While hitting open houses is a favorite pastime for many Americans, they aren’t going to spend their precious time around the holidays seeing how the other half lives. In the spring, when open houses are a regular occurrence, people may check out homes without a clear plan to buy.

If your house is up for sale in the winter and someone is looking at it, chances are that person is serious and is ready to pull the trigger. That can often result in a quicker sales process.

3. You Can Make the Home Warm and Cozy

The holidays are often a time when people gather around fireplaces, have hot chocolate and make nice smelling cakes and pies. For homeowners who put their house up for sale during the winter months, they can stage their house to give off the comfy and homey vibe that appeals to many home buyers. Some people may argue that showing a house in the winter is hard to do because there’s snow on the ground, the house is drafty and the curb appeal is lacking. But keeping the heat up, having a pie baking in the oven to give off a pleasant smell and keeping the sidewalk and driveway clear of snow and ice can boost a home’s appeal.

Not to mention that buyers tend to be more emotional during the holidays and will make decisions based on the feeling a house conjures up. During the spring there is a lot more foot traffic in homes that are up for sale. Buyers may not be able to do a thorough walk-through, may get frustrated because of the number of people looking at it and can leave with a bad feeling about the home.

4. Timing Is Perfect for Transfers

The end of the year is typically the time when people get notified that they will be moving because of a job transfer. Those people are going to need a house sooner rather than later, and as a result will be hunting for a new home during the holidays. These buyers can’t wait for the spring, which is why listing during the holidays can get the home sold and sold quickly.

5. Your Neighborhood May Look More Appealing

One of the staples of the holiday months, particularly Christmas, is that many people adorn their homes with festive lights and decorations. That is also true of local communities where lit-up snowflakes and wreaths can be found on lamp poles and up and down the main streets. People purchasing a home during that time may see the neighborhood in a different light and may be more willing to consider an area that they may have been on the fence about.

6. End-of-Year Tax Breaks

Reducing the tax bill is not the main reason buyers purchase a new home, but it could be the reason serious buyers make a move during the holidays. That’s because if the home sale closes before Dec. 31, buyers can deduct the mortgage interest, property taxes and interest costs of the loan. The tax deductions can be significant and could prompt a home buyer to move during the holidays instead of waiting until the spring.

YOU TURN

Nobody wants their home to languish on the market nor do they want to have to lower the price they are asking for. And while many fear that will happen if they list their home during the holidays, often that isn’t the case.

Are you planning on selling your home? Contact us to find out why selling your home during the holiday season can mean less competition, more serious buyers and a quicker sale.

How to Interview A Listing Agent

Is interviewing a Real Estate Agent such a daunting task?

Not really.

Too many people rush into choosing a Listing Agent. Once the idea of selling pops into their minds, they may choose the first Agent that crosses their path, whether via postcard, a Facebook Ad or billboard. In fact, 72% of home sellers contacted only one Real Estate Agent before deciding on the ‘right Agent’ they like sell their home through.

The big question here is how does one avoid choosing the wrong Real Estate Agent for the job?

Either you interview a Real Estate Agent and decide to hire him right there and then; or you opt to interview a couple of Real Estate Agents. Whichever route you as a home seller decide to take, make sure you have prepared at least a handful of questions, which should quickly determine whether your decision to hire that Real Estate Agent was the good one (or not)!

Most Real Estate Agents will not expect you to be asking these types of questions!

FREE DOWNLOAD: The Ultimate Home Seller’s Guide

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This list of 10 questions to ask when interviewing a Listing Agent will come in handy in separating the wheat from the chaff:

Question #1: How long have you been a Real Estate Agent?

As much as enthusiasm and passion a beginning Real Estate Agent might bring to the table, when it is time for contract negotiation, it will be the (negotiation) experience of the Agent which will bring the deal to a successful close!

The more contracts a Real Estate Agent has written over the years, the more experience he will have in detecting, avoiding, preparing, anticipating potential pitfalls! As any experienced Real Estate Agent can attest, there’s no such thing a ‘simple contract’ – every contract is unique and will require a customized legal frame work, making sure the terms and conditions of the deal are ironclad!

Of course, you’ll always have these superstar Agents who are making a killing in their first year of real estate, but those are the exception to the rule!

The other nine questions below will filter through whether you’re dealing with such a super-talented Agent or just a fly-by-night individual!

Question #2: How many real estate transactions did you close last year?

This might perhaps be seen as a rude or inappropriate question to ask if it were asked in any other field than real estate.

Real Estate Agents are always talking amongst one another about production numbers, as it’s an integrate part of their business models, annual goals, and getting more business!

Whereas the abstract figure won’t necessarily tell you a lot (other than give you a rough idea how much commission the Agent made), it does give you an idea of how active the Real Estate Agent is.

It might be tempting to look at the total number and use it as the sole measuring stick on how successful the Agent was, but one needs to put it into perspective:

The Real Estate Agent who sold the lower number of properties over the past 12 months might not immediately be your first choice, neither should the Agent who sold 50 properties in a particular year.

And why might that be?

Agents who give the highest listing price, do get a lot of business from home sellers, who don’t necessarily know any better, until it’s too late and the property has been exposed to the market for way too long! The overpriced properties you see lingering about for months on end, and plenty of expired listings are proof of that.

In other words, the ratio of houses the Agent eventually sells versus the (overpriced) properties that he still has on the books (which is called the sales-to-listing ratio) will be an important number to watch.

Thus, while not immediately evident by hearing a raw number, put into context, it is very revealing who is the better Agent: a Real Estate Agent who sells 16 out of his 20 listings compared to another Agent who sells 35 out of 70 listings!

Question #3: Is being a Real Estate Agent your full-time job?

There is this misconception that being a Real Estate Agent must be such an easy job, which offers lots of free time, days off, and can make you bundles of money. But if you interview a Real Estate Agent who’s been around the block, you will more than hear something completely different!

While one might initially be going through training and learning the ropes on a part-time basis, providing a professional service to your clients does require a full-time Real Estate Agent.

How is the part-time Agent going to handle all the incoming viewing requests, specific property inquiries by home buyers or property valuations for home sellers if he’s too busy working another job?

Nevermind what might happen if there’s talk of writing an offer at the ‘wrong time’ for this part-time Agent. Time constraint? Availability? Imagine as a home seller to be losing such an interested home buyer because the (part-time) Agent’s agenda can’t accommodate!

Needless to say, hiring a part-time Real Estate Agent is not advisable!

Question #4: How often can we expect feedback from you?

Perhaps the line of questioning ought to go in the direction of who will be providing the feedback!

Is the Real Estate Agent working on his own, together with a personal assistant or is there an entire team behind the scene? And more importantly, who will end up being the person you, as the home seller, will get all the feedback from?

It’s only normal for a home seller wanting to know what the home buyers have been saying about their property during the viewings over the course of the week. Most well-oiled teams have this part covered with a feedback system to make sure the home seller gets proper, timely information about buyer feedback!

Not only before the property is sold, but also during and afterwards, it’s vital for the Agent to keep the home seller in the loop of where they stand in the process: is a home inspection due or is the bank appraisal taking place soon? Plus, will the Agent be present during those activities as well?

RELATED: 10 Ways to Prepare for A Home Showing in Under An Hour

Each of those events, as small or big as they may be, requires feedback to the home seller. This is where a professional Real Estate Agent (and/or team) stands out from the crowd! There’s no such thing as too much feedback!

Question #5: How do you normally communicate with your clients?

Depending on how the Agent responds to the previous question, you’ll lead right into this one.

Once you’ve established the frequency or timing of the feedback, you need to figure out which communication medium your Agent uses with other clients.

When you interview a Real Estate Agent, you need to make sure to inform the Real Estate Agent of your preferred method of communication!

Some people are stuck on a personal phone call following every showing appointment, others might be too busy and rather prefer you to send them a text message or email them a summary of what happened during the viewing.

Having said that, one of the biggest complaints people have against Agents is the lack of communication.

If an Agent happens to be in a client meeting and can’t pick up the phone, we all know that those things happen and a return call afterwards will set everything straight. However, I’m referring to the blatant lack of respect on part of a lot of Real Estate Agents who believe returning phone calls the same day is something of an unnecessary luxury. This Agent is in control of the sale of your life’s most expensive asset, so the least he can do is treat you with respect by returning your call(s) ASAP!

Question #6: Can you provide us with a recent list of client references?

There are pretty much two options you could go with:

(1) ask the Listing Agent for a list of recent client references, which is something he’ll more than likely have written out on a personal testimonial page on his website. You can also check sites like Zillow and Google for online reviews that the Agent cannot filter.

(2) maybe a better option would be to request the details of the last few homes he sold and consequently contact those people yourself. It might take a little bit more time and effort, but the feedback you’ll get from these previous clients will more than likely be quite informative, and more importantly, be unprepared by the Agent!

Question #7: How did you determine the asking price of our home?

Here, you have a couple of popular ways to arrive at the market value:

The most commonly used method (as well as the best one) is the Comparative Market Analysis (CMA), which allows the Agent to look at the recently sold properties in your immediate vicinity, as well as the current properties for sale, all within a similar size, look and price range, in order to arrive at a fair market value!

RELATED: The Importance Of Proper Pricing

As you interview a Real Estate Agent, nothing stops you from asking him to show you some proof regarding the CMA’s conclusions.

RELATED: About the Comparative Market Analysis

Question #8: Will you personally be taking pictures of our home?

How often have you browsed a property portal and come across some incredibly bad pictures? What was the Agent thinking? And how did the seller approve that marketing material?

This makes you stop and think who could have possibly have taken those unprofessional photos?

RELATED: Mega Tips for a First-Time Home Seller

Whereas there are Agents who have particularly good photography skills and appropriate equipment to present your home at its best, the majority of Real Estate Agents don’t.

The importance of having great photos as part of your marketing cannot be stressed enough!

Bottom line: unless this Real Estate Agent is half a pro at taking real estate photos himself, insist on a Professional Real Estate Photographer.

Question #9: Which advertising tools will you be using to market our home?

Besides the traditional advertising tools, such as ads in newspapers, magazines, postcards, billboards etc., any decent Real Estate Agents needs to have a strong online presence.

Marketing should be happening all over! Your property needs to get exposed to as many potential home buyers as possible!

As a quick reminder, 90% of the home buyers start their home search online!

RELATED: Your Unique Marketing Plan

The internet is where all the researching and reading up happens, months before the home buyer even contacts the Agent!

Through the Agent’s online activities across many social network platforms, his personal website, and an active blogging calendar, chances are very good that the home buyers will keep running into that Agent’s content during their information-gathering phase. And who will they more than likely be contacting to help them find homes for sale on the Jersey Shore once they’re ready? After all, without even having met the Agent, these home buyers already have quite the impression of him due to this dominant online presence!

Question #10: Do you provide any additional services?

Sometimes it’s nice to know whether the Agent can offer you something different from the other Agents.

Any experienced Agent will immediately suggest helping out with the presentation of your home: from the cleaning & decluttering, to some of the needed repairs to the house, to getting that garden up-to-date, with extra attention pruning the shrubs & trimming the lawn.

Provided that the Agent has been working in the local area for many years, he’ll be able to set you up with a list of vendors as well, ranging from local handymen, attorneys, moving companies, to name but a few.

Keep in mind that the better Agents have your best interest at heart and don’t mean anything personal or hurtful if they point out potential negatives throughout the house.

The Real Estate Agent’s advice shouldn’t be taken lightly, as it is in their interest as well to have a more desirable and saleable product to present to buyers!

YOUR TURN

Have you recently interviewed a Listing Agent to sell your home? What did you learn? Did you rush through the process with regrets? Share your story on the Patrick Parker Realty Facebook Page, on our Twitter, Instagram or LinkedIn feeds. And don’t forget to subscribe to our monthly HOME ADVICE™ eNewsletter for articles like this one delivered straight to your inbox.

 

What Is a Real Estate Agent’s Commission?

Ever wonder what exactly a Real Estate Agent does? Are they worth the commission? Ever wonder if you’re paying too much for commission? Even consider going it your own via FSBO?

You may have a great Agent and they don’t communicate with you all they’re doing. Or, you may also have a rock star agent and who’s doing so much it hasn’t even occurred to you all the fine details going into your home sale.

Is a Real Estate Agent Worth the Commission

Here are a few facts that might help you sleep at night and have some peace about residential real estate commissions:

1. Real estate agents are sole proprietors

That means that even if they are a part of an agency, they are small business owners and cover all their own costs and carry all the risk. Do you own or have you ever owned your own small business? Then you know you wear ALL the hats and all the responsibility falls to you. Not to mention, your rather high tax rate!

They invest in you and your home. If they take on a listing, that means they’ve calculated the cost of marketing, photos, and time – lots and lots of time. High quality marketing – online and offline – and maybe even virtual tours. All that cost money. There’s considerable overhead if you are active in the field.

They have no salary and no real predictability in income. One deal may have to last them many months or maybe even longer.

2. The sale of your home may be covering for the loss of another

Deals fall through ALL. THE. TIME. Your particular sale may go pretty smoothly – great! I guarantee you it has ended up covering for a major loss on another deal. It’s the nature of business.

3. The real work begins once a contract is accepted

It may feel like all an agent does is show up sometimes for an open house here and there and put a sign in the yard. Or every time they come over, they’re telling you things you need to spend money on. But the real work is done behind the scenes and is intensified once an offer is accepted. Getting to the closing table is more and more challenging.

CASE STUDY

 

Pat Vredevoogd-Combs, a former president of the National Association of REALTORS, testified before the House Financial Services Committee on Housing to stark federal complaints about residential real estate industry pricing.

She submitted a list of 184 things that Listing Agents do in every real estate transaction as a part of her testimony to the committee. She stated, “By all accounts the general public is not aware of all the services that agents provide to sellers and buyers during the course of the transaction, probably because most of the important services are performed behind the scenes.”

Here is the list of (just) 184 things residential real estate agents do:

Pre-Listing Activities

1. Make appointment with seller for listing presentation.

2. Send a written or e-mail confirmation of appointment and call to confirm.

3. Review appointment questions.

4. Research all comparable currently listed properties.

5. Research sales activity for past 18 months from MLS and public databases.

6. Research “average days on market” for properties similar in type, price and location.

7. Download and review property tax roll information.

8. Prepare “comparable market analysis” (CMA) to establish market value.

9. Obtain copy of subdivision plat/complex layout.

10. Research property’s ownership and deed type.

11. Research property’s public record information for lot size and dimensions.

12. Verify legal description.

13. Research property’s land use coding and deed restrictions.

14. Research property’s current use and zoning.

15. Verify legal names of owner(s) in county’s public property records.

16. Prepare listing presentation package with above materials.

17. Perform exterior “curb appeal assessment” of subject property.

18. Compile and assemble formal file on property.

19. Confirm current public schools and explain their impact on market value.

20. Review listing appointment checklist to ensure completion of all tasks.

Listing Appointment Presentation

21. Give seller an overview of current market conditions and projections.

22. Review agent and company credentials and accomplishments.

23. Present company’s profile and position or “niche” in the marketplace.

24. Present CMA results, including comparables, solds, current listings and expireds.

RELATED: Why You Need An Agent To Sell Your Home

25. Offer professional pricing strategy based and interpretation of current market conditions.

26. Discuss goals to market effectively.

27. Explain market power and benefits of multiple listing service.

28. Explain market power of Web marketing, IDX and MLS.

29. Explain the work the broker and agent do “behind the scenes” and agent’s availability on weekends.

30. Explain agent’s role in screening qualified buyers to protect against curiosity seekers.

31. Present and discuss strategic master marketing plan.

32. Explain different agency relationships and determine seller’s preference.

33. Review all clauses in listing contract and obtain seller’s signature.

After Listing Agreement is Signed

34. Review current title information.

35. Measure overall and heated square footage.

36. Measure interior room sizes.

37. Confirm lot size via owner’s copy of certified survey, if available.

38. Note any and all unrecorded property lines, agreements, easements.

39. Obtain house plans, if applicable and available.

40. Review house plans, make copy.

41. Order plat map for retention in property’s listing file.

42. Prepare showing instructions for buyers’ agents and agree on showing time with seller.

43. Obtain current mortgage loan(s) information: companies and account numbers

44. Verify current loan information with lender(s).

45. Check assumability of loan(s) and any special requirements.

46. Discuss possible buyer financing alternatives and options with seller.

47. Review current appraisal if available.

48. Identify Home Owner Association manager is applicable.

49. Verify Home Owner Association fees with manager–mandatory or optional and current annual fee.

50. Order copy of Home Owner Association bylaws, if applicable.

51. Research electricity availability and supplier’s name and phone number.

52. Calculate average utility usage from last 12 months of bills.

53. Research and verify city sewer/septic tank system.

54. Calculate average water system fees or rates from last 12 months of bills.

55. Or confirm well status, depth and output from Well Report.

56. Research/verify natural gas availability, supplier’s name and phone number.

57. Verify security system, term of service and whether owned or leased.

58. Verify if seller has transferable Termite Bond.

59. Ascertain need for lead-based paint disclosure.

60. Prepare detailed list of property amenities and assess market impact.

61. Prepare detailed list of property’s “Inclusions & Conveyances with Sale.”

62. Complete list of completed repairs and maintenance items.

63. Send “Vacancy Checklist” to seller if property is vacant.

64. Explain benefits of Home Owner Warranty to seller.

65. Assist sellers with completion and submission of Home Owner Warranty application.

66. When received, place Home Owner Warranty in property file for conveyance at time of sale.

67. Have extra key made for lockbox.

68. Verify if property has rental units involved. And if so:

69. Make copies of all leases for retention in listing file.

70. Verify all rents and deposits.

71. Inform tenants of listing and discuss how showings will be handled.

72. Arrange for yard sign installation.

73. Assist seller with completion of Seller’s Disclosure form.

74. Complete “new listing checklist.”

75. Review results of Curb Appeal Assessment with seller and suggest improvements for salability.

76. Review results of Interior Decor Assessment and suggest changes to shorten time on market.

77. Load listing time into transaction management software.

Entering Property in MLS Database

78. Prepare MLS Profile Sheet–agent is responsible for “quality control” and accuracy of listing data.

79. Enter property data from Profile Sheet into MLS listing database.

80. Proofread MLS database listing for accuracy, including property placement in mapping function.

81. Add property to company’s Active Listings.

82. Provide seller with signed copies of Listing Agreement and MLS Profile Data Form within 48 hours.

83. Take more photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography.

Marketing the Listing

84. Create print and Internet ads with seller’s input.

85. Coordinate showings with owners, tenants and other agents. Return all calls–weekends included.

86. Install electronic lockbox. Program with agreed-upon showing time windows.

87. Prepare mailing and contact list.

88. Generate mail-merge letters to contact list.

89. Order “Just Listed” labels and reports.

90. Prepare flyers and feedback forms.

91. Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability.

92. Prepare property marketing brochure for seller’s review.

93. Arrange for printing or copying of supply of marketing brochures or flyers.

94. Place marketing brochures in all company agent mailboxes.

95. Upload listing to company and agent Internet sites.

RELATED: Your Custom Home Marketing Plan

96. Mail “Just Listed” notice to all neighborhood residents.

97. Advise Network Referral Program of listing.

98. Provide marketing data to buyers from international relocation networks.

99. Provide marketing data to buyers coming from referral network.

100. Provide “Special Feature” cards for marketing, if applicable/

101. Submit ads to company’s participating Internet real estate sites.

102. Convey price changes promptly to all Internet groups.

103. Reprint/supply brochures promptly as needed.

104. Review and update loan information in MLS as required.

105. Send feedback e-mails/faxes to buyers’ agents after showings.

106. Review weekly Market Study.

107. Discuss feedback from showing agents with seller to determine if changes will accelerate the sale.

108. Place regular weekly update calls to seller to discuss marketing and pricing.

109. Promptly enter price changes in MLS listings database.

The Offer and the Contract

110. Receive and review all Offer to Purchase contracts submitted by buyers or buyers’ agents. 111. Evaluate offer(s) and prepare “net sheet” on each for owner to compare.

112. Counsel seller on offers. Explain merits and weakness of each component of each offer. 113. Contact buyers’ agents to review buyer’s qualifications and discuss offer.

114. Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible.

115. Confirm buyer is pre-qualified by calling loan officer.

116. Obtain pre-qualification letter on buyer from loan officer.

117. Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date.

118. Prepare and convey any counteroffers, acceptance or amendments to buyer’s agent.

119. Fax copies of contract and all addendums to closing attorney or title company.

120. When Offer-to-Purchase contract is accepted and signed by seller, deliver to buyer’s agent.

121. Record and promptly deposit buyer’s money into escrow account.

122. Disseminate “Under-Contract Showing Restrictions” as seller requests.

123. Deliver copies of fully signed Offer to Purchase contract to sellers.

124. Fax/deliver copies of Offer to Purchase contract to selling agent.

125. Fax copies of Offer to Purchase contract to lender.

126. Provide copies of signed Offer to Purchase contract for office file.

127. Advise seller in handling additional offers to purchase submitted between contract and closing.

128. Change MLS status to “Sale Pending.”

129. Update transaction management program to show “Sale Pending.”

130. Review buyer’s credit report results–Advise seller of worst and best case scenarios.

131. Provide credit report information to seller if property is to be seller financed.

132. Assist buyer with obtaining financing and follow up as necessary.

133. Coordinate with lender on discount points being locked in with dates.

134. Deliver unrecorded property information to buyer.

135. Order septic inspection, if applicable.

136. Receive and review septic system report and access any impact on sale.

137. Deliver copy of septic system inspection report to lender and buyer.

138. Deliver well flow test report copies to lender, buyer and listing file.

139. Verify termite inspection ordered.

140. Verify mold inspection ordered, if required.

Tracking the Loan Process

141. Confirm return of verifications of deposit and buyer’s employment.

142. Follow loan processing through to the underwriter.

143. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale.

144. Contact lender weekly to ensure processing is on track.

145. Relay final approval of buyer’s loan application to seller.

Home Inspection

146. Coordinate buyer’s professional home inspection with seller.

147. Review home inspector’s report.

148. Enter completion into transaction management tracking software program.

149. Explain seller’s responsibilities of loan limits and interpret any clauses in the contract.

150. Ensure seller’s compliance with home inspection clause requirements.

151. Assist seller with identifying and negotiating with trustworthy contractors for required repairs.

152. Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed.

The Appraisal

153. Schedule appraisal.

154. Provide comparable sales used in market pricing to appraiser.

155. Follow up on appraisal.

156. Enter completion into transaction management program.

157. Assist seller in questioning appraisal report if it seems too low.

Closing Preparations and Duties

158. Make sure contract is signed by all parties.

159. Coordinate closing process with buyer’s agent and lender.

160. Update closing forms and files.

161. Ensure all parties have all forms and information needed to close the sale.

162. Select location for closing.

163. Confirm closing date and time and notify all parties.

164. Solve any title problems (boundary disputes, easements, etc.) or in obtaining death certificates.

165. Work with buyer’s agent in scheduling and conducting buyer’s final walkthrough prior to closing.

166. Research all tax, HOA, utility and other applicable prorations.

167. Request final closing figures from closing agent (attorney or title company).

168. Receive and carefully review closing figures to ensure accuracy.

169. Forward verified closing figures to buyer’s agent.

170. Request copy of closing documents from closing agent.

171. Confirm the buyer and buyer’s agent received title insurance commitment.

172. Provide “Home Owners Warranty” for availability at closing.

173. Review all closing documents carefully for errors.

174. Forward closing documents to absentee seller as requested.

175. Review documents with closing agent (attorney).

176. Provide earnest money deposit from escrow account to closing agent.

177. Coordinate closing with seller’s next purchase, resolving timing issues.

178. Have a “no surprises” closing so that seller receives a net proceeds check at closing.

179. Refer sellers to one of the best agents at their destination, if applicable.

180. Change MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers, etc.

181. Close out listing in transaction management program.

Follow Up After Closing

182. Answer questions about filing claims with Home Owner Warranty company, if requested.

183. Attempt to clarify and resolve any repair conflicts if buyer is dissatisfied.

184. Respond to any follow-up calls and provide any additional information required from office files.

YOUR TURN

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Mega Tips for a First-Time Home Seller

Homeowners don’t generally think about filling the shoes of a first-time home seller until they decide to buy a new home. Usually, the motivating factor is the need to move — due to work-related issues or the needs of a growing family — and that generally involves buying another house. It’s when the homeowners stop to consider the move that it may dawn on them, yes, because they need to sell, they are now a first-time home seller.

FREE DOWNLOAD: The Ultimate Home Sellers Guide

Selling a home is very different from buying a home. Whereas buying a home generally involves emotions and feelings, selling a home typically centers on what listing agents like to call maximizing profit potential.


Here are the key steps to keep in mind as a first-time homeseller to sell your home fast and for top-dollar:

1. Price Your Home Accurately

To price your home accurately you need the assistance of a reputable Listing Agent. This is not the time to choose your cousin’s sister-in-law, for example, who dabbles in real estate. You’ll fare much better if you select an experienced real estate agent who sells a fair number of listings, preferably in your neighborhood.

RELATED: What’s My Home Worth? Find Out Now!

Your Agent will analyze comparable sales and prepare an estimate of value often called a CMA, for comparative market analysis. It is OK to use real estate websites to get an idea of this figure, but you’ll soon learn the variances your agent will point out because your they have the experience and education to provide you with a more accurate opinion of value.

2. Prepare Your Home For Sale

Ask your Listing Agent to advise you on preparing your home for sale. Most homes show better with about half of the furniture removed. If a buyer walks in the door and wonders if anybody lives in the house, you’ve done your job correctly. Consider home staging to boost your selling power and appeal.

RELATED: 10 Low Cost Ways To Help Your Home Sell Fast

Painting is the single most effective improvement you can make. Don’t let dings in the woodwork or scraps on the walls make your home reflect deferred maintenance.

3. Be Flexible with Showings

If home showings are too much of an imposition, consider going away the first weekend your home is on the market. Yes, it can feel a bit intrusive to allow strangers to trek through your home and check out your soft-closing drawers in the kitchen. The best way to sell your home is to let a buyer inside with her buyer’s agent to tour in peace and quiet.

RELATED: 8 Things You Should Never Say When Selling Your Home

Leave the house when buyer’s agents show up. Anything you say can and will be used against you, plus, buyer’s agents prefer to show without interference

4. Allow An Open House

Not every home is a viable candidate for an open house. If your home is located in an area close to major traffic, that is generally indicative of a reasonable expectation that the open house signs will pull in visitors.

Ask your Listing Agent if they advertise the open houses online. Many a home buyer has had no desire to buy a home until she spots an open house and subsequently falls in love.

5. Review Your Listing Online

Look at your home listing on various websites to make sure the information conveyed is accurate. Agents do their best to ensure accuracy, but since it is your home, you know the details better than anyone. If you spot a feature that is missing, contact your agent and ask for an inclusion.

6. Try to Respond Promptly to A Purchase Offer

Many offers contain a date by which the offer expires. Notwithstanding, it can drive buyers crazy if they are forced to wait for a seller to decide whether to accept their offer or to issue a counter offer. Remember, if you are selling because you need to buy a new home, you are no different when you are a home buyer yourself.

7. Line Up Your Movers Early

If you are thinking about moving during the summer, for example, which is a very busy time of year for movers, you might find it is impossible to locate movers for the day you want. You can start packing before your home hits the market, which will give you a head start on the process. It will also give you peace of mind to be prepared. Selling can be stressful enough.

YOUR TURN

Are you a first-time home seller? What tips do you have to add to our list? Sound off on the Patrick Parker Realty Facebook Page or our Twitter, LinkedIn or Instagram feeds. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.

 

5 Reasons You Should Never Buy or Sell a Home Without a Real Estate Agent

You’re DIY’ing this real estate thing, and you think you’re doing pretty well—after all, any info you might need is at your fingertips online, right? That and your own judgment.

Oh, dear home buyer (or seller!)—we know you can do it on your own. But you really, really shouldn’t. This is likely the biggest financial decision of your entire life, and you need Real Estate Agent if you want to do it right.

Here’s why…

1. They have loads of expertise

Want to check the MLS for a 4B/2B with an EIK and a W/D? Real estate has its own language, full of acronyms and semi-arcane jargon, and your Real Estate Agent is trained to speak that language fluently.

Plus, buying or selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. Real Estate Agents have the expertise to help you prepare a killer deal—while avoiding delays or costly mistakes that can seriously mess you up.

FREE DOWNLOAD: The Complete Home Buyer Guide

2. They have turbocharged searching power

The Internet is awesome. You can find almost anything—anything! And with online real estate listing sites such as yours truly, you can find up-to-date home listings on your own, any time you want. But guess what? Real Estate Agents have access to even more listings. Sometimes properties are available but not actively advertised. A Real Estate Agent can help you find those hidden gems.

Plus, a good local Real Estate Agent is going to know the search area way better than you ever could. Have your eye on a particular neighborhood, but it’s just out of your price range? Your Real Estate Agent is equipped to know the ins and outs of every neighborhood, so she can direct you toward a home in your price range that you may have overlooked.

3. They have bullish negotiating chops

Any time you buy or sell a home, you’re going to encounter negotiations—and as today’s housing market heats up, those negotiations are more likely than ever to get a little heated.

You can expect lots of competition, cutthroat tactics, all-cash offers, and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you?

RELATED: Patrick Parker Realty’s Refined Negotiation Strategy

And it’s not just about how much money you end up spending or netting. A Real Estate Agent will help draw up a purchase agreement that allows enough time for inspections, contingencies, and anything else that’s crucial to your particular needs.

4. They’re connected to everyone

Real Estate Agents might not know everything, but they make it their mission to know just about everyone who can possibly help in the process of buying or selling a home. Mortgage brokers, real estate attorneys, home inspectors, home stagers, interior designers—the list goes on—and they’re all in your Real Estate Agent’s network. Use them.

FREE DOWNLOAD: The Complete Home Sellers Guide

5. They’re your sage parent/data analyst/therapist—all rolled into one

The thing about Real Estate Agents: They wear a lot of different hats. Sure, they’re salespeople, but they actually do a whole heck of a lot to earn their commission. They’re constantly driving around, checking out listings for you. They spend their own money on marketing your home (if you’re selling). They’re researching comps to make sure you’re getting the best deal.

And, of course, they’re working for you at nearly all hours of the day and night—whether you need more info on a home or just someone to talk to in order to feel at ease with the offer you just put in. This is the biggest financial (and possibly emotional) decision of your life, and guiding you through it isn’t a responsibility Real Estate Agents take lightly.

YOUR TURN

Did you try the DIY route and the go Agent? Tell us about your experience. Sound of on the Patrick Parker Realty Facebook Page, our Twitter or LinkedIn Feeds or on our Instagram account. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.

Assessed Value vs. Market Value: What’s the Difference?

Homes don’t come with sticker prices set in stone. Rather they are moving targets – that’s what makes buying and selling real estate so fun! (Or frustrating, depending on your perspective.) And, as a buyer or seller, you will likely hear two “prices” thrown about: assessed value and market value. So what’s the difference?

While assessed value and market value may seem similar, these numbers can be different – typically assessed value is lower – and they’re used in distinct ways as well. So, let’s clear up any confusion so you can wield these terms to your advantage.

market-value-appraised-value

What is Market Value?

The technical definition of market value is “the most probable price that a given property will bring in an open market transaction.” Or, in plain English, “It’s the price that a buyer is willing to pay for a home, and that a seller is willing to accept.”

Real estate agents are trained to pinpoint a home’s market value, which is done by looking at a variety of characteristics, including the following:

• External characteristics: Curb appeal, exterior condition of the home, lot size, home style, availability of public utilities.
• Internal characteristics: Size and number of rooms, construction and appliance quality and condition, heating systems, and energy efficiency.
• Comps or comparables: What similar homes in the same area have sold for recently.
• Supply and demand: The number of buyers and the number of sellers in your area.
• Location: How desirable is the neighborhood? Are the schools good? Is the crime rate low?

RELATED: WHAT’S MY HOME WORTH? GET A FREE COMPARABLE MARKET ANALYSIS

A home’s market value often is a good starting point for all kinds of things. For one, listing agents use market value to help sellers come up with a fair asking price for their home. And, since buyers shouldn’t just trust what sellers say their place is worth, their own agent can also estimate the home’s market value and come up with a different price that they think their clients should offer. No number is right or wrong; the ultimate deciding force is what price a buyer and seller are willing to shake hands on to close the deal.

What is Assessed Value?

When trying to understand the assessed value of a property, you must know who is doing the assessing and why the property is being assessed.

Municipalities, mostly counties, employ an assessor to place a value on a home in order to levy property taxes on it. To arrive at a value, the assessor (similar to a real estate agent) looks at what similar properties are selling for, the value of any recent improvements, any income you may be making from, say, renting out a room in the property, and other factors – like the replacement cost of the property if, God forbid, it burns down in a fire (which sounds dark, but assessors are thorough professionals who consider every possibility).

In the end, the assessor comes up with a value of your home. Then, he multiplies that number by an “assessment rate,” a uniform percentage that each tax jurisdiction sets that is typically 80% to 90%. So if, say, the market value of your home is $400,000 and your local assessment rate is 80%, then the assessed value of your home is $320,000.

That $320,000 is then used by your local government to calculate your property taxes. The higher your home’s assessed value, the more you’ll pay in taxes. You can check with your local tax assessor for a more exact figure for your home, or search by state, county, and ZIP code on publicrecords.netronline.com.

What Assessed and Market Values Mean to You?

While a home’s market value can rise and fall precipitously based on local conditions, assessed values are typically more immune to fluctuations. (Some states prohibit the assessed value from rising more than 3% a year even if market value increases.)

But the bottom line is, don’t get bent out of shape if you hear your assessed value isn’t as high as you’d hoped. Assessed value is used mostly for property tax purposes. Home buyers and sellers, on the other hand, look more to market value instead.

However, assessed value can come up when you buy or sell a home because this number, unlike the more subjective market value, is public knowledge contained in property records. So, rising assessed values bode well when home sellers try to justify their sale price to a buyer: “Hey, the assessed value is $310,000, and I’m only asking $320,000.” Likewise, buyers can use assessed value to justify a lower price: “Hey, the assessed value is $260,000, and you’re asking for $300,000. What gives?”

But the thing to remember with both assessed and market value is that at the end of the day, the price of a home is all in the eye of the beholder. The only number that matters is what a buyer and seller can agree sounds right, so don’t take any number you see too seriously.

YOUR TURN

What has your experience been with market value vs assessed value when selling or buying your home? Sound off on the Patrick Parker Realty Facebook Page or on our Twitter or LinkedIn feeds. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time. 

7 Important Things Home Sellers Often Forget to Do

When you’re selling your home there’s so much to do: find a Real Estate Agent, do touch-ups, get that balky air conditioner fixed, look into staging… It’s no wonder that sometimes things fall between the cracks. Big things. (We’re not pointing fingers, promise!)

sell-my-monmouth-county-home

Our arsenal of experts—aka real estate agents who have worked with many home sellers—identify the to-do’s that sellers typically overlook. We promise you, these tasks are well worth the time it will take to complete them (which isn’t very long at all).

FREE DOWNLOAD: The Ultimate Guide to Selling Your Home

Heed this sound advice, and there’s a good chance selling your house won’t be nearly as stressful as everyone tells you it is.

To-do No. 1: Google your address

Not all sellers scour the Internet to find out what’s being said about their property, but they should. Nearly all buyers – 90% – search online during their hunt for a home, according to the National Association of Realtors. You should be aware of what your online listing looks like, since it will influence the kinds of impression, questions and concerns buyers will have.

For example, Google Maps’ street view of your property may not show improvements that you’ve made, so you’ll want to be sure to include those updates in your listing.

To-do No. 2: Account for improvements and issues

If you’ve owned your home for a while, make a list of all the problems you’ve solved while you’ve lived there. This could include chimney fires, water damage, or a flood in the basement. Whether you solved the problem or not, you should disclose this information to the buyer so you don’t wind up in a lawsuit after the sale. Disclosing “invisible improvements” that you’ve made, like re-grading or adding a French drain system, can also be a great source of comfort for buyers.

To-do No. 3: Check your real estate agent’s references

An agent’s bad behavior or incompetence could cost you time, money, and peace of mind, so it’s well worth taking extra steps to find the best real estate agent for you. Ask friends for recommendations and check online reviews.

RELATED: Read Patrick Parker’s Online Reviews

Check that the Agent’s you’re considering have a current real estate license – with no complaints filed against them. Meet with the Agent and reach out to a few of their references directly.

RELATED: Why You Need A Real Estate Agent to Sell Your Home

Real Estate Agents should be happy to provide a number of references for a new client to call. As far as talking to your friends about a Real Estate Agent recommendation or reading online reviews, here are some things to look for:

• Did you have confidence in your Real Estate Agent?
• Do you think he/she had good knowledge of the local market?
• Did your Agent communicate well and keep you informed during the entire transaction?
• Do you think that he/she negotiated well on your behalf?
• Did your Agent have good vendors who could assist you?
• Did your Agent return calls/emails in a timely fashion?
• Would you recommend this person? Why? (Or why not?)

To-do No. 4: Insist on social media marketing

You staged your home beautifully, picked a competitive price, and listed the property, but there’s something else you’ll need to prepare before you’re fully ready to sell – a social media marketing plan. Video tours, floor plans, and photo galleries promoted on Facebook, Twitter, and Instagram are must-dos.

RELATED: Your Comprehensive Home Marketing Plan

You want to make sure that your Agent is using all avenues to attract the right buyer for your home. Make sure your home has a presence on your Agent’s website, their agency’s website, and is promoted on various sites that will market the home and give information about open houses.

To-do No. 5: Make sure the doorbell rings

Ah, attention to detail. It’s those little cosmetic repairs that could cost you your home sale. If buyers see that you can’t even be bothered to repair a busted doorbell, they’re automatically going to think about what else may need fixing and view the home negatively.

First impressions make all the difference. A well-kept home, starting with the view from the curb, gives the perception that the seller has great pride in the home and has taken good care of it – which translates into less energy and costs for the buyer as they prepare to move in.

To-do No. 6: Clean inside everything

Storage is a huge selling point for homes. So be warned: Buyers are going to poke around inside closets, drawers, cabinets, ovens, refrigerators, and even the dishwasher, whether they’re cleaned or not—so you’d better make sure they are clean.

Spending the money on a service to deep-clean your home will come back to you at least 10 times in your sales price. Even if you’ve swept up and scrubbed all surfaces to a shine, you’re not done until dust, crumbs, and creepy crawlies are cleaned out from within the small spaces too.

To-do No. 7: Clarify which items are not included

You don’t want a buyer to fall in love with your house because of the custom window treatments and then rescind their offer when they find out the curtains aren’t for sale.

The law says that anything bolted to the wall or ceiling goes to the buyer unless specifically excluded in the contract. If you want to take your flat-screen TV, chandelier, or custom pot rack, be sure to label it as soon as the house goes on the market, so that buyers don’t bank on owning that item and wind up disappointed.

YOUR TURN

Are you a recent seller who with items to add to our to-do list? Are you a buyer with feedback for sellers on how their property could have further won you over? We want to hear from you! Sound off on the Patrick Parker Realty Facebook Page or on our Twitter or LinkedIn feeds. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this one delivered straight to your inbox. You may unsubscribe at any time.


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