Set The Price
Signing A Listing Agreement
When you choose a Real Estate Professional, you will most likely sign a listing agreement - a contract in which you agree to allow the Real Estate Professional to sell your home during a given period. The agreement says that you will pay the Real Estate Professional a fee when you sell your home. Most Real Estate Professionals are independent contractors who work for a company operated by a licensed real estate broker. (A salesman is licensed by the state to sell real estate through a broker. A broker is licensed by the state to sell real estate to others for a fee and employ salesmen and other brokers.)
The amount of compensation you pay a broker is negotiable, but the Real Estate Professional will generally follow the company's policy regarding compensation. The amount of the fee will be spelled out in the listing agreement. Make sure you understand how the fee will be paid before signing.
Exclusive listing
Most Real Estate Professionals will ask for an exclusive right-to-sell listing. This means that you will owe the broker a commission regardless of who finds a buyer during the listing period. In other words, if you decide to sell the house to your cousin, your broker still gets a commission. The advantage of this kind of arrangement is that the broker is motivated to work harder to sell your home.
It's possible that a Real Estate Professional from another company will find a buyer for your home. In that case, your broker is the listing broker, and the second agent is the selling or cooperating broker. Many times your listing broker will agree to pay the cooperating broker a fee from the amount you pay the listing broker. Your listing broker cooperates with other brokers who procure buyers interested in your property and offers to compensate the other brokers for procuring a buyer. Cooperating and compensating other brokers is discussed in the listing agreement you sign with the listing broker.
Length of listing
The listing agreement will specify how long you agree to list your house with a company. Your Real Estate Professional will probably suggest an average time that homes like yours are on the market. You want a period that's long enough to motivate your Real Estate Professional to advertise your home and respond to buyers, yet short enough to allow you to change to a different company if you become unhappy with the Real Estate Professional's service. Remember that the listing agreement is a contract. You should get a copy for your records. Your Real Estate Professional is bound to the terms just as you are. You can expect the Real Estate Professional to keep appropriate information confidential and effectively market your property.
To set the right price on a home, combine an objective evaluation of your property with a realistic assessment of market conditions.
You are more likely to benefit by determining a fair value and sticking close to it than by asking an unrealistic figure.
Underpricing can deprive you of money that's rightfully yours. Unless rushed, aim for full market value.
Study the Comparables
Be cautious of either overpricing or underpricing if you rely on less-than-solid information. Know your competition. Learn the offering and selling prices of similar properties. Find out how long each took to sell.
Compare your home to others close in age, style, size, condition and location. Timing is all-important. If market demand is high, you should be able to increase the price. Sales prices of homes are published in local or regional sections of newspapers.
Get an Appraisal
Appraisal opinions are subject to honest dispute. Generally, an appraisal prepared by an experienced, licensed professional comes as close to an objective evaluation as you can get.
Seller's Checklist
As the seller, you have relatively little to do at this point. Avoid common glitches by keeping abreast of progress on both sides.
Be aware if the buyer is having trouble getting a loan on the terms specified in the contract. If he/she is turned down, it could jeopardize the whole deal, and your house could be put back on the market. A day or so before closing, make sure all the necessary papers and documents have been gathered and are in the hands of the right parties.
Things can go wrong. Documents can be misplaced, delayed or lost. However, common last-minute glitches can be avoided.
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Parties who should be present at closing need to be informed of any change in the date, time or place. They should be reminded a week before closing and again the day before.
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Everyone named on the deed under which you hold title must sign the new deed by which you grant title.
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Know when and how you will be paid. Don't expect to walk away from the settlement table with a check in hand.
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If you are buying another property, consider having both closings at the same office scheduled back-to-back. That way, the timing of the disbursement is not a problem. You sign a paper authorizing the title company or attorney to assign the funds from sale to purchase.
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The papers you'll need
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A copy of the sales contract and documentation showing that any contingencies have been removed or satisfied.
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All documents needed to complete the transfer of title. This may include certificate of title, deed, correcting affidavits, quitclaim deeds, survey and title insurance policy or binder.
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Homeowners insurance policy. If the buyer plans to take over the unused portion of your hazard insurance, you'll need to make arrangements in advance for all paperwork to be completed on time.
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Prorations for ongoing expenses such as insurance premiums, property taxes, accrued interest on assumed loans and utilities (if not shut off between owners).
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Receipts showing payment of the latest water, electric and gas bills.
A certificate from your lender indicating the mortgage balance and the date to which interest has been prepaid.