- Placing Your Home on the Market
- A Little Homework
- Your Home’s Special Features
- Property Profile Folder
- "What Conveys?"
- Comparative Market Analysis
Placing Your Home on the Market
The first step toward putting your home up for sale is to meet with your real estate agent at your home.
Listing Broker
An individual real estate broker whom the seller hires to represent themselves through a contract called a "listing agreement". The listing Sales Representative is associated with the listing broker. The listing broker is directly paid the listing commission and then splits the commission with the listing Sales Representative.
Selling Broker
An individual who produces a buyer for the property and divides the commission with a listing broker. Such a transaction is considered a "co-operative" sale because the house is listed by one broker and a buyer is provided by a second broker. If the listing broker also produces the buyer, then the listing broker may receive both listing and selling sides of the commission, if permitted by you, the seller.
The specific roles and responsibilites of the broker and sales representative who who will represent you will be described in the Mandatory Consumer Disclosure Form.
A Little Homework
Before the listing appointment, both the home seller and the listing Sales Representative have some homework to do. While the home seller collects a list of documents requested by the Sales Representative, the listing Sales Representative studies recent area sales of homes comparable to the seller's, and also comparable homes currently for sale.
Your Home’s Special Features
At the listing appointment, the listing Sales Representative will want to inspect the entire home and yard to become familiar with its special features and exact floor plan. You have probably enjoyed living in your home and have been pleased with its many unique features. Your listing Sales Representative will want to tell prospective buyers about the special features of your home and community.
Remember, prospective buyers will be "comparison shopping" and keenly aware of subtle differences in homes for sale in the area. Be sure to tell your listing Sales Representative why yours is special, from any home remodeling to afternoon winter sunshine.
Property Profile Folder
To enable the listing Sales Representative to prepare a ‘Highlight Sheet’ on the property, the home seller needs to provide a number of documents and information specific to the property. This ‘Highlight Sheet’ is often left in the home for the convenience of prospective selling Sales Representatives. Because the list is long, you can understand why it's best to collect the papers before the listing appointment. These materials may include:
Septic and Well Inspection
If property is on septic/well, current inspections by local health authorities are required while the home is occupied. The listing Sales Representative will usually arrange for inspection after the contract is approved.
Order Lender Appraisal
Lenders usually require an appraisal to assure that the property is adequate collateral for a loan. Appraisal may be ordered before (paid by seller), but is more often done after an "offer to purchase” is accepted (paid by buyer).
Assessments/Easements
The listing Sales Representative will ask the home seller if any tax assessments or easements exist on the property that must be paid or included in the purchase contract and passed on with the land when sold.
Property Taxes/Condominium Fees
The home seller provides a record of property tax or condominium fee payments which the buyer will reimburse on a prorate share to home seller at settlement.
The home seller should also provide a record of the past 12 months’ utility bills, including gas, electric, sewer, water, and trash where applicable. Most buyers will want to know the history of utility costs.
Helpful Documents
If possible, the home seller should provide the listing Sales Representative with the deed, house location survey, condominium bylaws or home owners association documents, subdivision map, house floor plan, previous title search abstracts, legal description of property (subdivision, section and lot), warranties on major systems or Home Owners Warranty, if still in effect, and other documents, as requested by your attorney.
"What Conveys?"
In anticipation of a buyer's offer, the home seller must be ready to supply the listing Sales Representative with a specific list of the personal property that is included in the real estate property for sale. Examples of items to "convey" may include: draperies, drapery rods, remaining heating oil, firewood, washer, dryer, refrigerator, stove, microwave, disposal, swimming pool chemicals, awnings, storm doors and windows, screens, blinds, shutters, window air conditioner, etc. Home seller should tag or remove items which do not convey. In general, all fixtures that are attached to the property are included. This typicallty includes light fixtures, appliances and built-in cabinets or desks. The Multiple Listing Service page should include details of any excluded property.
When the home seller is ready to put the home on the market, the listing agreement is filled out indicating a specific period of time the agreement is in effect ("listing period"), and signed by the seller. You've now hired a listing broker.
Comparative Market Analysis
Maximizing Market Value
Preparing a Comparative Market Analysis (CMA) is an important tool real estate agents use to help you earn the highest possible price for your home. A CMA involves looking at the public records of real estate transactions in your community to better understand market conditions.
We'll take four steps in preparing your home’s CMA:
- We'll consider the amount paid forrecently sold homes in your community. These homes will be comparable in size to yours and together comprise a factual record of what buyers will pay.
- We will then consider the asking prices of presently listed homes in your community. Because these homes are similar to yours, these homes will be the benchmarks against which your home will be priced. Their asking price per square foot is a major factor in determining market value.
- The asking prices of homes in your community that went unsold for at least 90 days. We will attempt to determine why these homes have lingered on the market; typically, but not always, these homes these homes are simply overpriced.
- Finally, we will use all the price information gathered to arrive at an ideal asking price for your home. Of course, the final decision on pricing is always yours.