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