Selling your home will probably be one of the most important decisions you will make in your life. When deciding to sell your home, you will probably have so many questions that you might not have the answers to. How much is my home worth? How long will it take to sell? How do I negotiate an offer? Etc. The process and legal issues involved in selling a home can get very complicated. There are many types of contracts that you can choose to sell your home but you might not know what is best for you. By employing me as your exclusive listing agent, I will guide you through this complicated process and assure you of a positive experience.
As your exclusive listing agent, I will help you determine what your home is really worth in today’s market. I will provide you with detailed comparison of your home, recently sold homes, and other properties currently listed in the market around your neighborhood.
- My Commitment
- Types Of Listing Contracts
- Plan Of Action
- Highest Price at the Shortest Time
- Closing Cost
My commitment to you is to sell your home with all of your preferences in mind, as close as possible to your desired listing price. One of the ways I achieve this goal is to research every possible detail available, as it pertains to the Real Estate market in your area. I strive to help you receive the best price in the shortest amount of time, with the least amount of stress. To accomplish this, I commit to the following:
- I will review all comparable home sales made recently in your area.
- I will suggest a range of prices for your home to give you an idea of what you may list your home for, and what price is best in order to sell your home at more realistic price for the current market.
- I will convey the truth about your property, whether it is pleasant or not.
- I will suggest how your home should be marketed in order to receive the best results.
After listing your home.
- Your property will be immediately entered into the Multiple Listing Service (MLS) database, allowing licensed agents looking for homes in your area to find it.
- A lock box will be placed at the property address. This will let licensed agents gain access to your home, so they may show their clients the property.
- I will place a Royal Pacific Mortgage & Realty sign on the property in a highly visible location.
- I will customize flyers to be placed outside & inside of your home for available agents and potential buyers.
- I will advertise your home in my personal and company website.
In addition to listing your property in the Multiple Listing Service (MLS), as your exclusive listing agent, I will provide you with the following marketing campaign. My extensive marketing of your home assures you of a maximum value.
Here are some of my marketing tactics.
- I target buyers who are moving into your area.
- I target your surrounding neighborhood for potential buyers from relatives and friends.
- Every call received on your property from potential buyers and agents receives a follow up immediately.
- I will design all marketing flyers to have continuous call back.
You can find your home listed on the following Internet websites:
Multiple Listing Service (MLS)
I will hold Open Houses on days desired by your availability. Open Houses are normally held on Saturday and Sunday from 10 AM to 2 PM.
I will communicate with you at least once a week, and update you on the status of your property. I will check with you on Realtors who have shown your property to follow up for comments. I would also like to hear any ideas you may have that might help with the sale of your home. Your ideas are always welcome.
When selling your home, there are several types of listing contracts that you can choose from. The “Exclusive Right to Sell, “Open Listing”, “Exclusive Agency Listing, and the “One-Tine Show”.
Exclusive Right To Sell – This is the most common type of listing contract that is used in today’s market. This is a contract between you and your exclusive listing agent. You are giving an exclusive right to sell to your agent, which allows him or her to earn commission regardless on who sells your home. It is the agent’s duty to market your home to other agents, any potential buyers, multiple listing services, etc. In this type of listing contract, most agents spend money and use other resources to market and sell your home fast. An exclusive right to sell is the only type of listings most real estate agents will accept because they have a reasonable expectation of earning back any money they spend on promoting and marketing your property.
Open Listing – Open listing contract is when an owner permits all real estate agents to have the right to bring buyers and present an offer. There is no exclusive contract to a specific agent, which means that the agent that is responsible for the sale is the only one that will receive a commission from the seller. In this type of listing no agents will market your home to a multiple listing services or any other type of market exposure. No agents will spend their own money to help market your home. If your home matches the criteria of one of their clients, then most agents will show them your house when it’s convenient.
One Time Show – This type of listing contract is similar to an open listing contract. A One Time Show listing applies to a showing of a For Sale By Owner (FSBO) property. The real estate and seller signs an agreement in which the agent identifies his or her potential buyer that is interested in the FSBO property. This contract agreement entitles the agent to a commission from the seller should the identified buyer agrees to purchase their home. This prevents the buyer and seller to negotiate directly later to avoid paying commission to the agent. In this type of listing agreement no agent will advertise, market, or show the property unless they are expected to earn commission.
Exclusive Agency Listing – This is a listing contract, which allows the agent to list your home to a Multiple Listing Services (MLS). This allows the listing agent to earn commission if the home is sold through any real estate agent or company. At the same time the seller can also search for his or her own buyers. Once the seller finds his or her own buyers, the real estate agent doesn’t earn any commission at all. Most agents will not spend money for advertising and marketing this type of listing agreement because it is easy for a buyer to go and negotiate directly with the seller. Most agents who accept this type of listing agreement will only list the property in the MLS and not spend any monetary investment in marketing.
1. Analyze why you are selling
If you understand your motives, you will be able to better negotiate and get what it is that you want, whether it be a quick sale, high price, or somewhere in the middle.
2. Find a good real estate agent that understands your needs
Make sure that your agent is loyal to you, and can negotiate to help you achieve your goals. In addition, they should be assertive and honest with both you and the buyer.
3. Prepare your home for the buyer
Maximize the strengths of your property and fix up its weaknesses. You want the buyer to walk away from your home with a lasting good impression.
Making a good Impression
- Landscaping – Always maintain the landscaping areas of the property.
- Cleaning – Keep the property clean.
- Painting – Touch up exterior and interior paint that is needed.
- Carpeting – Keep the carpet clean and stain free.
4. Be prepared for Negotiations
Learn and understand your buyer’s situations; what are their motives? Can you demand a big deposit from them? Try to lock the buyers so that the deal goes through.
5. Negotiate for the best price and best terms
Learn how to counter offer to get more from every offer.
6. Make sure the contract is complete
Be honest with your disclosures. You do not want to lose the deal because you were lying or diminishing your home’s defect. Insist the buyer to get a professional inspection. This will protect both you and your buyer.
Marketing – In order for you to get the highest price in the shortest time, you need to know how to market your home. As your listing realtor I will work with you side by side to have complete exposure of your house. The better you market your home, the more offers you will get. The more offers you get, the more choices you have to get the price and terms you want.
Pricing – The most important factor of marketing your home is pricing it right. Your price should be adjusted to reflect the market and the property’s worth. The key is to get as many people as possible to view your property at a fair price instead of having no buyers due to your listing of high pricing.
Impression – Another important factor is the condition of your home. Make sure your home looks ready to be sold. Fix any defects (peeling or faded paint, cracks, stains, etc.). The condition alone can sometimes prompt fast buying decisions. Not only should you fix any defects, but consider upgrading your home by making major repairs and cosmetic improvements if needed before selling. A nice looking home triggers the emotional response that can lead to a financial response from many buyers.
Negotiation – Learn how to negotiate the best terms for all parties involved. Terms are another factor, which may be adjusted to attract buyers. If you insist on getting your asking price, think of what you can offer to the buyers, for example, improvements you’ve made, seller financing with lower rate than current market rate, closing cost, etc. Convincing them why they should be paying the price you have set.
An escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. Escrow companies are the ones who handle such transactions. Escrow companies ensure us that whether you are the buyer, seller, lender, or borrower, that no funds or property will change hands until ALL of the instructions in the transaction have been executed. The escrow holder has the obligation to safeguard the funds and documents while they are in the possession of the escrow holder. Escrow companies are the ones who distribute funds and convey title only when all provisions of the escrow have been complied with.
How escrow works:
The principals to the escrow – buyer, seller, lender or borrower – cause escrow instructions, most usually in writing, to be created, signed and delivered to the escrow officer. If a broker is involved, he or she will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents.
The escrow officer will process the escrow, in accordance with the escrow instructions, and when all conditions required in the escrow can be met or achieved, the escrow will be “closed.” Each escrow, although following a similar pattern, will be different in some respects, as it deals with your property and transaction at hand.
The duties of an escrow holder include:
- Following the instructions given by the principals and parties to the transaction in a timely manner.
- Handling the funds or documents in accordance with the instructions.
- Paying all bills as authorized.
- Responding to authorized request from principals.
- Closing escrow only when all terms and funds are in accordance with instructions through the Closing or Settlement Statement.
An appraisal is a thought process leading to an opinion of value. This opinion or estimate is achieved at through a formal process that typically uses three “common approaches to value.” An appraisal is used every time the value of your home or other real property is being used to make a significant financial decision.
Cost Approach – The amount it would cost to replace the improvements, less physical deterioration and other factors, plus the land value.
Sales Comparison Approach – The value arrive that involves making a comparison to other similar, nearby properties, which have recently sold. The Sales Comparison Approach is normally the most accurate and best indicator or value for a residential property.
Income Approach – The Income approach determines the importance of income producing properties. This involves estimating what an investor would pay based on the income produced by the property.
An appraisal report must reflect a credible estimate of value and must identify the following:
- The client and other intended users.
- The intended use of the report.
- The purpose of the assignment.
- The type of value reported and the definition of the value reported.
- The effective date of the appraiser’s opinion and conclusions.
- Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, the property interested value, and non real estate items included in the appraisal, such as personal property, including trade fixtures and intangible items.
- All know: easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of similar nature.
- Division of interest, such as fractional interest, physical segment and partial holding.
- The scope of work used to complete the assignment.
Closing costs are the fees involve in the closing transaction of purchasing or refinancing a home or property. These charges may vary in amount depending on the Mortgage Company, Title Company, insurance company and Escrow Company.
All charges include:
- Special interest charges that surround the purchase of a home
- Processing fees, Origination fees, loan points, etc.
- Title insurance
- Escrow or closing day charges
- Document fees
- Pre-paid interest and property taxes