7 Steps to House-Selling Success - Step 2: Get a REALTOR®

Step 2: Get a REALTOR®

Sponsored By Move Inc.

7 Steps to House-Selling Success

Before placing a home on the market you should also identify REALTORS® in your community who can assist with the sale. Because Realtor.com is the largest real estate site online, it's a perfect place to look when seeking realty services. Realtor.com lists realty professionals nationwide, and you can find those active in your community through extensive directories and property listings.

 

Why use a REALTOR®?
There are more than 2 million people nationwide who have licenses to sell real estate, of which about over 1 million members belong to the National Association of Realtors (NAR). Only NAR members are entitled to use the term "REALTOR®."

 

NAR members must adhere to a strict Code of Ethics. By joining NAR, individuals have access to a wide range of classes, seminars and certification opportunities. Local REALTOR® groups are active in community matters, and individual members are routinely involved in PTAs and other neighborhood organizations.

In essence, local REALTORS® are community experts. They track real estate trends, share neighborhood concerns and participate in local matters. They're good neighbors who are in the business of helping others buy and sell homes.

 

How do you choose a REALTOR®?
Whether you're a first-time seller or someone who has sold many homes, there are several ways to find a local REALTOR®:

 

Use the "Find a REALTOR®" search engine on REALTOR.com® to find individuals who actively sell in your community.

 

Get recommendations from past sellers. 

• Look for REALTOR® signs in your community.
• Check the classifieds in local newspapers and "shopper" publications.
• Look at the listings in local real estate magazines.

In some cases, sellers elect to meet only with one REALTOR® while other owners elect to meet with several. Whatever your preference, there will be a number of questions you will want to ask, including:

• What services do you offer?
   
• What type of representation do you provide? (There are various forms of representation in different states. Some brokers represent buyers, some represent sellers, some facilitate transactions as a neutral party, and in some cases different salespeople in a single firm may represent different parties within a transaction.)
   
• What experience do you have in my immediate area?
   
• How long are homes in this neighborhood typically on the market? (Be aware that because all homes are unique, some will sell faster than others. Several factors can impact the amount of time a home remains on the market, including changing interest rates and local economic trends.)
   
• How would you price my home? Ask about recent home sales and comparable properties currently on the market. If you speak with several REALTORS® and their price estimates differ, that's OK, but be sure to ask how their price opinions were determined and why they think your home would sell for a given value.
   
• How will you market my home? At listing presentations, brokers will provide a detailed summary of how they market homes, what marketing strategies have worked in the past and which marketing efforts may be effective for your home.
   
• What is your fee? Brokerage fees are established in the marketplace and not set by law or regulation. Typically, brokers who list homes are compensated on a performance basis - that is, the broker is not paid unless the home sells under the terms and conditions that are acceptable to you.
   
• What happens if another REALTOR® locates a purchaser? That is, who will that broker represent, and how will he or she be paid?
   
• What disclosures should you receive? State rules require brokers to provide extensive agency disclosure information, usually at the first sit-down meeting with an owner or buyer.
   
• How long do you want to list your home? A "listing" agreement is a contract that shows the broker's obligations and outlines the terms under which your home is being made available for sale. The length of the agreement is a negotiable matter.

What should you expect when working with a REALTOR®? Once your home is listed with a REALTOR®, he or she will immediately begin to market your home according to the most appropriate conventions for your community.

 

Your REALTOR® should keep you informed as the marketing process unfolds and as expressions of interest are received. In time, the marketing plan may be modified to reflect buyer reactions and changes in the marketplace.

 

In real estate there are written offers and oral offers. Oral offers ("Would they take $225,000 for the home?") are not acceptable because they generally cannot be enforced ("Gee, did I say $225,000? I was sure I said $215,000"). Written offers created by the REALTOR® with assistance from qualified attorneys address numerous issues, are consistent with local requirements and provide the foundation for an actionable offer.

*Information provided by the National Association of REALTORS

7 Steps to House-Selling Success - Step 1: Plan and Prepare to Sell Your House

Step 1: Plan and Prepare to Sell Your House

7 Steps to House-Selling Success
Million of existing homes are sold each year, and while each transaction is different every owner wants the same thing -- the best possible deal with the least amount of hassle and aggravation.

Unfortunately, home selling has become a more complex business than it used to be. New seller disclosure statements, longer and more mysterious form agreements, and a range of environmental concerns have all emerged in the past decade.

More importantly, the home-selling process has changed. Buyer brokerage -- where REALTORS® represent homebuyers -- is now common nationwide, and good buyer-brokers want the best for their clients.
The result is that while hundreds of thousands of existing homes may be sold each week, the process is not as easy for sellers as it was five or 10 years ago. Surviving in today's real estate world requires experience and training in such fields as real estate marketing, financing, negotiation and closing -- the very expertise available from local REALTORS®.

Are you ready?
The home-selling process typically starts several months before a property is made available for sale. It's necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out.

Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers -- and as much demand -- as possible.
While part of the "getting ready" phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell.

Selling a home is an important matter and there should be a good reason to sell -- perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it's important to discuss your needs and wants in private with the REALTOR® who lists your home.

When should you sell?
The marketplace tends to be more active in the summer because parents want to enroll children in classes at the beginning of the school year (usually August). The summer is also typically when most homes are likely to be available.

Generally speaking, markets tend to have some balance between buyers and sellers year-round. In a given community, for example, there may be fewer buyers in late December, but there are also likely to be fewer homes available for purchase. So, home prices tend to rise or fall because of general demand patterns rather than the time of the year.

Owners are encouraged to sell when the property is ready for sale, there is a need or desire to sell, and the services of a local REALTOR® have been retained.

How do you improve your home's value?
The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. For example, if most homes in your neighborhood have three bedrooms, two baths and 2,500 sq. ft. of finished space, a property with five bedrooms, more baths and far more space would likely be priced much higher and likely be more difficult to sell.

Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments, the cost of which cannot be recovered from the sale. Furthermore, improvements should reflect community preferences.

Cosmetic improvements - paint, wallpaper and landscaping - help a home "show" better and often are good investments. Mechanical repairs - to ensure that all systems and appliances are in good working condition - are required to get a top price.

Ideally, you want to be sure that your property is competitive with other homes available in the community. REALTORS®, who see numerous homes, can provide suggestions that are consistent with your marketplace.


*Information provided by the National Association of REALTORS - Copyright © by Move, Inc.

Home Selling Tips

Home Selling Tips

When you decide to sell your home, you can list it with a Real Estate Broker or you can sell it yourself. Many homeowners would not think of attempting to sell their home themselves, because they know selling your home takes more than a sign in the yard and newspaper ads. A Real Estate Broker or Selling Agent will advise you on pricing, financing, home conditions, marketing and assist you in negotiating the sale.

PRICING:

Proper pricing is crucial to the success of your home selling. If your home is under-priced, you could lose money. If your home is overpriced, buyers who are seeing comparable homes in your area may refuse to look at yours. Your Realtor can prepare a CMA (Competitive Market Analysis) to help you determine the best price for your home.

FINANCING:

The interest rate and the financing available can influence the ability of your Realtor to sell your home. It is usually to the buyer's advantage to consider many financing options. Your Realtor is aware of what options are available in your areas, such s financial institutions, mortgage companies, or some plans may involve financing assistance from you, the seller.

CONDITION:

A home that stands out from its competition will attract buyers. First impressions are very important and making some easy improvements can enhance your home's marketability. If they don't like it from the outside you can bet you are not going to get them inside! Make that front yard and door shine!

MARKETING:

Your Realtor understands the market and is equipped to advertise your property both nationally, on the internet, and locally in the papers and buyers guides, and hold Open Houses for both the Realtors and the public.

ASSISTS NEGOTIATIONS:

When you receive an offer, you can accept it, reject it or make a counter offer to the potential buyer. However, your Realtor is a skilled negotiator and can separate the serious buyers from the Lookie-Lou's. Many times, the first offer may be your best offer. Don't be afraid to accept it! If it sold right away it is because it was priced right- in good condition and the agent that sold it had probably showed the buyer 20 other homes and they were just waiting for yours. Listen to your Realtor... if they say it's a good offer, fair and it works out for you ... take it!

CLOSING:

The Realtor will do the running when it comes to ordering the title search policy, and having the deed drawn by an attorney. We will break down all the expenses showing the estimates of proceeds, pay off the taxes, mortgage, and pay for the expenses from your proceeds so when you get your check everything has been paid for. We will check on the buyer's financing to keep it going. We can help you arrange for pest inspections, home inspections, surveys, etc. We are there before, during, and after the sale. Before closing you need to sign the deed set. That way you don't need to be present at the closing. It is helpful if you leave a letter of instructions if the home has something special the new owners would want to know about, including the sprinkler system, alarm system, keys, furnace, etc.

10 Steps to Home Ownership - Step 10: What's Next?

Step 10: What's Next?

10 Steps to Home Ownership
You've done it. You've looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the home buying process?

Whether you're a first-time buyer or a repeat buyer, there are several more steps you'll want to take.
Those papers you received at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.
Also at closing, determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by owners as of closing and you also want services transferred to your name for billing. Usually such transfers can be done without turning off utilities. REALTORS® can provide contact numbers and related information.

About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show your interest in the property.

Moving in
It is generally understood that sellers will leave homes "broom clean" when moving out. This expression does not mean "vacuumed" or "spotless." Broom clean makes sense because it means the house is ready to be painted and cleaned.

Your home, your money
For most owners a home is the largest single asset they hold, so it makes sense to protect that asset.
Many owners make a photo or video record of the home and their possessions for insurance purposes and then keep the records in a safety deposit box. Your insurance provider can recommend what to photograph and how to secure it.

You want to maintain fire, theft and liability insurance. As the value of your property increases such coverage should also rise. Again, speak with your insurance professional for details.

Lastly, enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what's most important is that home ownership should be a wonderful experience. Enjoy!

*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 9: Closing

Step 9: Closing

10 Steps to Home Ownership
Go to any local courthouse and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.
These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.
The closing process, which in different parts of the country is also known as "settlement" or "escrow," is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.
In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.

What to expect
Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.

What you need to do 

One of the best parts of settlement is that buyers and sellers need to do very little. (Other than signing deed set tranfer docs & mortgage)
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.

*Information provided by the National Association of REALTORS

10 Steps to Home Ownership - Step 8: Get Insurance

Step 8: Get Insurance

10 Steps to Home Ownership
No one would drive a car without insurance, so it figures that no homeowner should be without insurance.
The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

What kind and how much?
There are various forms of insurance associated with home ownership, including these major types:

Title insurance:
Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.

Homeowners' insurance:
Homeowner's insurance provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.

Flood insurance:
Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as $250,000 in coverage for a single-family home plus $100,000 for contents. Local REALTORS® can explain which locations require such coverage.

Home warranties:
With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?
Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two years, and structural defects for up to 10 years.
Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.
Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles and costs. For details, speak with REALTORS®, insurance brokers and home builders.

Where to look.
REALTORS® often provide info on home insurance and such policies are also available from insurance brokers.

How do you get insurance?
The time to obtain insurance and warranty coverage is at closing, so speak with a REALTOR® or insurance broker prior to closing. Be sure to ask about limitations, costs, deductibles and "endorsements" (additional forms of coverage that may be available).

*Information provided by the National Association of REALTORS

For Homeowner's Insurance Quotes Contact:

 Judd Knispel - State Farm Agent 

 Jared Spangenberg - Farm Bureau Financial Services Agent

10 Steps to Home Ownership - Step 7: Make an Offer

Step 7: Make an Offer

10 Steps to Home Ownership 

REALTOR® groups, working with legal counsel, have developed forms that are appropriate for realty transactions in specific communities. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. REALTORS® can explain the general contracting process in your community as well as his or her role.
While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers -- or additional costs. Terms are extremely important and should be carefully reviewed.

How much?
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.

How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.
Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.

How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections.
Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.


*Information provided by the National Association of REALTORS