When selling a home there are many different things that need to be considered. Why are you selling? Where are you moving? Can you afford the costs and fee’s to sell your home? Should you try to sell it your self? What things are important in a Listing Agent? SOOOO many questions it could drive you crazy!!! I have included in the Blog lots of information to keep you from pulling your hair out and to be on top of your game when you decide to interview agents.
First of all why are you selling your home? There are lots of different answers that could come up for this question but it is your main goal to know why it is that you are selling. Lots of times we hear people say that they don’t really need to sell the house but if the right offer comes along then they will move. This is usually not what the Seller really wants and it makes the process more difficult than it needs to be. If you are in the Market to sell your home then you need to understand that you are no longer selling your home, you are selling a property. In order to make sure you are prepared to sell your home you need to focus on your goal! What is the goal? Are you moving up into a different larger house? if so then the goal is to be in the larger home! It would be great to be living the life you want instead of living the life you have, so you need to make that decision and stick with it. That is your light at the end of the tunnel. If You are down sizing then you need to focus on the goal of a smaller more manageable place. Think of how great it will be to lower your maintenance costs and all of the hard work it takes to keep the large house clean! With today’s market we all know that there are many other options for why people are selling and now comes for the hardest goal. Are you in financial trouble? Selling the home could be your only hope to get out of the financial trouble and that should be motivation 100 times stronger than the other two options. Once you sell your home you will no longer have that payment. If you are counting on using money from the sale to pay off other debt and you plan on pricing the home higher to cash out, think again. Every month the house sits for sale it is costing you time, hard work to keep it clean for showings, utility’s and a mortgage payment. You may think holding out for an extra $10,000 seems like a good idea but that $10,000 could be gone in a few short months. It is better to realize the financial freedom of selling the house fast.
Short Sales can be the hardest financial decision for a seller to make but the decision does not mean they should lose motivation. The sooner you Short Sale the house the sooner you can move on with your life. Once the house is Sold you can focus on picking up pieces of your life that may have been lost along the way and you know that if you have already had the Short Sale conversation that it is the decision you want to proceed with. This does not mean there is no doom and gloom that could be lurking ahead and that is why lots of sellers lose motivation in a Short Sale. But there is still hope and I suggest Sellers who have lost motivation review the Foreclosure VS Short Sale link bellow.
While we are on the topic if you feel like you might be heading into the Short Sale or Foreclosure world please check out the site below and also call your local Foreclosure hotline where people who can help are waiting to talk to you.
Where are you moving to? That is pretty important to know from the start. If you have not decided on where you are going then you should not be selling your home. I know people will decide to not look at the next place until they are under contract but that is just silly. If you don’t know where your next step is going to take you then how are you supposed to take that step? If you are not excited to take the step you are probably going to have a hard time selling your current home because that is exactly what you are doing. You are selling your home at this point and as I mentioned before you don’t want to sell your home you want to sell the property!!!! I don’t think I can stress this enough. If you can see your self in the future in the new home living the life you want it will make the process of selling your “property” much less of an event. You will be bending over backwards to get out of your home to move on with your life if you see the value of the next step. If it’s a Job transfer and/or you are moving out-of-state you might feel like you are letting go a piece of your life and it can be hard. I would suggest keeping in mind that if you took the new job and made that decision you should be looking at the future instead of holding on to the past.
I hope we found some Motivation!!!! Now it comes down to the costs. Can you afford to sell your home? There are lots of Fees whenever you are selling your house and they are real no matter how you see it. Realtor Fees, Closing Fees, Inspections Items ect. Lets start with the Biggest one! Realtor Fee’s, yes we make money to sell your house but it’s not as much as you are thinking. Although it is nice that Realtors are always driving expensive cars and we don’t really work…… LOL I wish. The truth of the matter is that almost every Realtor would like to see a 6% listing agreement and it’s not just that we like the # it breaks down like this. 2.8% is paid to the Buyers agent and if you’re doing a FSBO (for sale by owner) expect to pay this fee to your buyer as over 90% of Buyer’s have a Realtor. That leaves 3.2% for the listing agent and really we don’t get all that money either. Most agents will spend 1% on the advertising of the listing. 1% goes right to the company they work for and that leaves us with 1.2% it is a very straight forward number to calculate our pay and most people will try to take it away from us. On top of the Realtor Fee’s you can expect to pay for title insurance and closing fee’s which are usually about 1% give or take. Then there are the Buyers closing costs which you do not have to pay but you may want to in order to make a deal close. If you think you want to pay those fee’s then expect another 3%. Over all 10% is what you are going to be looking at to sell your house ( keep in mind these numbers are being based off an average price of $250,000 and will change a lot in different price’s) Because I brought up FSBO’s I should mention that most Realtors are paid on a success fee, this means we only get paid if we sell the house. It sounds great when you look at company’s that offer to list your house for a flat fee of XXXX unless the house doesn’t sell and you pay the fee?
Now you have found your motivation and you know what it is going to cost you so how do you pick an agent? My suggestion is to pick someone who knows how to market the home and that you get along well with. If you don’t get a long with the Listing agent it is likely going to make things very hard for you along the way. Also you want to make sure you can get a hold of the agent 24/7 in case there is something that comes up, I don’t like it when my sellers are lying awake at night because they have a question about the listing and they don’t feel comfortable calling or shooting me an e-mail. Lucky for me all my clients know they can call or e-mail me at any time, I might be in bed but I will still try to help! Dont pick the agent who tells you the highest price!!!! DONT DO IT. If it happens to work out that you interview some people who don’t seem like they are going to fit your needs and the agent that fits the needs best has told you the highest price than it might be ok but make sure to ask lots of questions on where the price came from and if you don’t have at least 5 showings your first week then lower the price ASAP. There is nothing worse than sitting on the market with no showing’s and then playing the price reduction game. Just list the house at the correct price right off the bat and you can sell the house FAST. This gets us back to the Motivation, are you testing the waters or making a decision to live the life you want?
Here are some links to tools that I use for my listings and they may be of use to you as well.
The Listing presentation Below would be customized for your specific home and situation but most of our listings get all of the benefits mentioned within the power point. If there is anything specific that you either don’t want or must have please ask us about it directly. It does have a lot of great information on what we will do to sell your home.