The process begins with finding the professionals who know the
residential real estate business like nobody else. In other words, it
starts with Teresa Butler and Real Living. Real Living is the nation’s
fourth-largest residential
real estate firm delivering the most innovative personal service
available anywhere.
No real estate company makes selling a home easier. Or faster.
Teresa helps you determine your home's value and understand
the complete selling process. In addition, she provides you with useful
hints to help you learn what you can do to assist in the selling
process.
Contact Teresa today for all your real estate selling
needs.
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1. Make a Good First
Impression
An attractive, well-maintained home will generally sell faster and for a
higher price than a similar home that looks tired or run-down. So when
you prepare your home for sale, take a critical look at its interior and
exterior. Be on the lookout for areas that could be tidied up and items
that should be repaired or replaced.
2. Know the Market
Your home will be in competition with other, similar homes for sale in
and around your neighborhood. It's a good idea to know what homes are on
the market in your area and the asking prices. Your agent can provide
you with a Comparative Market Analysis (CMA) to help you determine the
fair market value of your home.
3. Price Your Home
Correctly
Overpricing your home can discourage offers from serious buyers. On the
other hand, under pricing your home leaves you no room to negotiate.
That's why intelligent pricing is so important.
4. Market Your Home
Effectively
It's difficult to find a buyer for your home if no one knows it's for
sale. Real Living creates maximum exposure for your property through our
Internet site, home books and other marketing tools. We use these unique
and unmatched services to actively market your home every day, until
it's sold — it's our service guarantee.
5. Prepare For
Showings/Open Houses Showings and Open Houses allow potential buyers to personally tour a
home to determine how it might accommodate their lifestyle. Your goal
should be to create an environment where potential buyers can visualize
how the space will fit their needs.
6. Negotiate the Terms of
the Sale
Home buyers and sellers usually expect to
negotiate the price and terms of a home sale. This process will
proceed more quickly if you evaluate and respond to offers and
counteroffers in a timely fashion.
7. Review the Home
Inspector's Findings
Most buyers will request a
home inspection before completing the transaction. Following the
inspection and based upon its results, the buyer may request certain
repairs. As the seller, you should receive a written copy of the
inspection report, and review it carefully to gain a thorough
understanding of the nature and extent of any problems.
8. Sign the Purchase
Agreement
Once you reach an understanding with the buyer, it's time to sign the
purchase agreement. Review this document carefully. It should specify
all the terms and conditions of the sale to which you have agreed with
the buyer.
9. Prepare for Closing
The closing process involves an attorney or title company
representative, all buyers, listing and selling brokers and all owners.
The home seller should bring all warranties on equipment and any
instructions on equipment maintenance or operation.
How you approach the "buy first or sell first" issue depends
upon your unique situation. Each alternative has its positives
and negatives. To evaluate which alternative is best for you,
consider the effect each scenario will have on your finances,
negotiating position and moving timeline.
If you choose to buy a new home before you sell your current
home, you risk having to carry two mortgages until your old home
sells. A bridge loan can ease the strain of double mortgage
payments, however, you generally must have sufficient equity
in your current home to qualify. Of course you could make the
purchase of your next home contingent upon the sale of your
current home, but in a strong market, it's not likely that a
seller will accept such an offer. The advantage of buying a home
before you sell your current home is that it gives you more time
to look for the home that best meets your needs without the
pressure of having to move.
You may be in a stronger bargaining position if you put off
serious new home shopping until after you've accepted an offer
on your current home. You'll have a better idea of how much
equity you'll be able to carry over to your next home and you
won't have to make the purchase of that home contingent upon the
sale of your old home. Of course, if sellers know you have a
limited amount of time to purchase, it can be more difficult to
negotiate a good price.
An attractive, well-maintained home will generally sell faster
and for a higher price than a similar home that looks tired or
run-down. When you prepare your home for sale, take a critical
look at the exterior and interior of your home. We've listed
some specific areas below that you may want to address.
The Exterior
Obviously, the outside of your home is the first thing buyers
see. Make a good first impression. Step back and take an
objective look at the exterior of your home. How can you make it
more attractive? Review the following suggestions:
Keep the lawn cut and the shrubs well trimmed.
Remove dead tree limbs and other yard debris.
Enliven your landscape with fresh plantings of shrubs or
flowers.
Arrange outdoor items neatly; put away lawn equipment.
Check siding, trim and doors (especially the front door)
for dirt and peeling paint; wash or touch up with paint
where needed.
Inspect the condition of your fence and repair or paint
if needed.
Repair or replace loose or damaged roof shingles or
flashing.
Clean and repair broken windows or screens.
Clean gutters and downspouts.
Wash the driveway and sidewalk; patch holes.
Clean and neatly arrange the garage or shed.
Make sure the gas grill is ready for use, especially in
season.
Make sure the entry light and doorbell work. (If a
repair is needed on anything listed, fix the entire defect
so it will not cause a distraction.)
The Interior
Take a look inside your home. Make every room look as spacious,
organized, bright and warm as possible. The following
suggestions may help:
Wash walls, ceiling and trim; if possible, paint with
light neutral colors.
Repair cracks in plaster.
Tighten loose doorknobs, pulls on drawers and cabinets,
towel racks, switch plates and outlet covers.
Fix sticking doors and windows, squeaking doors and
loose stair banisters.
Repair and clean caulking around tubs and sinks.
Fix leaky faucets; remove water stains.
Organize the basement and attic so that they appear as
spacious and neat as possible. Discard anything you are not
taking with you.
Organize closets and remove clutter; limit the number of
items stored overhead or on the floor.
Organize the contents of kitchen cabinets and remove
clutter from kitchen countertops.
Launder draperies, blinds and curtains if necessary.
Shampoo carpets and wax floors.
If you have not sprayed (or "bombed") for bugs lately,
now is a good time.
Arrange furniture so that the room appears as spacious
as possible.
Remove items you are planning to take with you,
including chandeliers, coordinating drapes,
mirrors, etc.
Ultimately, the value of your home will be determined by the
market. Basically, the market value is the amount buyers are
willing to pay at the point in time that you want to sell. A
Comparable Market Analysis (CMA) is the best
way to judge market value.
Avoid the urge to price your home based upon considerations that
do not affect its market value, such as:
How much money you need to purchase your next home.
The value of a similar home in a different community.
Area appreciation statistics.
The cost to build the same home today.
Personal attachment.
Remember, the market determines price!
What is a Comparable Market Analysis?
A CMA is the best way to determine a reasonable asking price for
your home. Our analysis looks at properties that are similar or
comparable to your home. It takes into account all of the
variables that may affect the value and marketability of your
home.
How are comparable homes selected?
Properties located in close proximity to your home that have
similar characteristics (i.e., lot size, square feet, number of
bedrooms, baths, etc.) are researched. Since our goal is to
obtain a balanced view of the market, we look at similar homes
that fall into four basic groups:
Currently listed homes identify the competition
Recently sold homes indicate what buyers are willing to
pay
Homes with sales pending point to the current demand for
this type of home
"Expired" homes that failed to sell, suggesting what
buyers will not pay at this time
Wondering what kind of return you can expect after investing all that
money into making home improvements? Here are estimates reflecting the
percentage you may be able to recoup at the time you sell your home.*
150% - Remodeled Kitchen
Kitchen updates can reward home sellers with substantial payback. Keep
in mind, though, that fancy finishes and highly personalized taste can
make a dent in your profit. Simple, functional and neutral are the
bywords here.
100% - Revitalized Lawn and Garden
Rolling green and a splash of floral color – it draws potential buyers
like hummingbirds to lilacs. A few hundred dollars invested may return
thousands in profit.
100% - Fireplace
Warmth, tradition ... hearth and home. Especially if it's
energy-efficient (like many gas models), this one's a sure winner.
90% - Second Bath
... or even a humble lavatory – it can make a difference in civilized
living for many families.
80% - Room Addition
Most popular choices for resale value - a family room or an extra
bedroom.
60-80% - Remodeled Bath
With a master bath on most buyers' wish lists, this is a wise place to
invest. Consider installing two sinks to handle the morning rush hour.
70% - Deck
Regardless of locale, outdoor living spaces are in demand!
Low-maintenance decking material leaves more time to enjoy the view.
50% - Exterior Paint
You'll take years off an older home with fresh color and finish. It
ranks highest in adding "curb appeal".
40% - Finished Basement
A terrific way to add space without building a costly addition. Walk-out
access adds even more value.
40% - Heating System
Replace the existing one only if it's dysfunctional. Buyers' preferences
vary on this one.
35% - New Windows and Doors
Energy-efficient and visually appealing, these worthy additions don't
necessarily translate into recouped investment. Alert prospective buyers
to the reduced energy bills.
Changes That May Not Matter
Some renovations don't affect resale profits, and others could actually
detract including swimming pools, water gardens, and greenhouse
additions. The value of these types of features is in the eye of the
prospective buyer.
*Rates of return vary by region, trends and period of time.
To appraise real estate is to estimate its value – most
typically, its market value, or most likely
sale price. Appraisals are concerned with value (an estimate of
benefits for owning a property) and price (the actual amount of
money a buyer pays for a property).
When a seller puts a property up for sale, prospective buyers
(and the lenders who hold or insure their mortgages) have reason
to expect that the property is worth what the seller is asking
them to pay for it. An appraisal for less than the sale
price can complicate, or completely block, your home's sale.
Most likely, your property will be appraised through the buyer's
lender, once you have accepted an offer. Teresa can provide a list of "comparables" to the appraiser,
offering factual evidence of the active listings, sold and
expired prices of similar properties in your neighborhood. This
documentation should support your home's pricing
structure, and aid the appraiser in arriving at
a fair market value. It will complement the appraiser's
direct inspection of your home, its improvements and condition.
Speak with your Teresa for a more comprehensive
overview. We think you'll agree that appropriate pricing is one
of the most significant aspects of your home's eventual
Real Living strongly believes in the value of a thorough home inspection
by a qualified professional. In fact, our purchase agreement includes a
clause alerting our buyer clients of their right to engage a private
inspector for added protection in the purchase of your home.
What to Expect From a Home Inspector
As a real estate company, we have learned that home buyers don't
hesitate to follow through with the purchase of a home that has flaws.
As long as the problems are identifiable and remediable, most home sales
proceed as anticipated. We have also found that home inspections are
very protective of sellers, preventing later legal action over defects
that were undisclosed and unanticipated.
Home buyers who consider purchasing your home can expect that a private
home inspector will charge around $350 (depending on size of property
and/or complexity of the inspector's report).
Real Living suggests that buyers select an inspector who can provide
proof of membership in the American Society of Home Inspectors. Home
inspection is presently a comparatively unregulated industry in many
states, and ASHI-certified inspectors meet stringent requirements and
abide by a sturdy Code of Ethics.
Inspectors should be able to quickly deliver (within one or two days) a
written report.
Sellers should expect that a home inspection will yield practical
returns. While you have had the opportunity to live in your home, and
can see visible flaws for yourself, the practiced eye of a professional
inspector can probably spot more, especially in areas not easily
accessible to home buyer or real estate professional.
Possible Repairs
Home buyers don't usually hesitate to make necessary repairs to the home
they're considering – they just want to know up-front what to expect,
and how much money to plan on spending in their new home.
A buyer's choice to request a private home inspection protects your
interests. The inspection assures you that the house you're selling is
what it appears to be. And it alerts your home's buyer to the
maintenance and repair the home will need as time goes on.
Problems
Examples
Costs
Serious
heating, cooling, roofing, plumbing
$2,000-$5,000
Medium
insulation, paint
$500-$2,000
Minor
electrical outlets, kitchen sink
$100-$500
If no serious problems are found, inspection can pay off indirectly
in maintenance tips and the assurance that the buyer is making a sound
investment. And if the inspection unearths problems, both you and your
home's buyer have varied options available for resolution. Ask your Real
Living listing agent to explain all the possibilities.
In today's robust housing market, many prospective home buyers
are seeking financing through government-backed loan programs –
FHA or VA loans.
FHA loans are insured by the federal
government.
They allow buyers to enter the housing market with a lower down
payment than conventional lenders allow with more flexible
underwriting guidelines than conventional lenders are able to
provide.
VA loans are guaranteed by the Veterans
Administration
For honorably discharged veterans and active military personnel
in the U.S. armed forces (Reserves and National Guard also
qualify). No down payment is required for a VA loan, and closing
costs may be a gift. Like FHA loans, VA loans offer flexible
underwriting guidelines.
Years ago, government-backed loans were regarded by home sellers
as less favorable than conventional loans: longer processing,
less qualified applicants, more paperwork and hassle were among
the objections sellers voiced. Additionally, FHA/VA buyers were
perceived as wanting more from sellers, asking for points and/or
closing costs as part of the negotiations.
Real Living recommends that sellers strongly consider the offers
of all prospective buyers, bearing in mind that each one will
involve negotiation for both parties. FHA and VA loans
are now processed with the same speed and efficiencies as
conventional loans, with paperwork and processes that
are no more rigorous. While both FHA and VA loans do require a
home inspection, most home buyers today are already likely to
request a private inspection to protect their interests. And a
higher sale price may well offset a seller's hesitation to pay
some costs on the buyer's behalf.
We suggest that as sellers, you open your options to the
broadest possible market of potential buyers, and
consider each offer on its individual merits. Teresa Butler will offer sound advice throughout the selling
process.
What to Expect During Negotiations
Webster's defines "negotiating" as "to confer with another, to
arrive at a settlement." It's also "to get through, around or
over successfully."
A real estate transaction involves both types of negotiation.
Teresa will confer with the agent
representing your home's buyer, negotiating (at your direction)
a settlement of price, terms and conditions that are acceptable
to both you and the buyer. And while doing so, your listing
agent will work vigorously to "get through, around or over"
certain points.
Successfully Negotiating Your Home's Sale
It's among the most important reasons to choose a skilled real
estate professional. Your best interests – and the satisfying
closure of knowing that your home was sold at its highest and
best value – are at stake. You want a listing agent who combines
capable representation, objective counsel and caring guidance.
Be candid with Teresa about your
expectations and requirements. Ask questions such as: How will a
"multiple offer" on your home be handled? Will the buyer's agent
always present his or her offer, or will your own agent be the
only professional present? On which points should we stand firm
– and on which can we compromise?
Answers to these and
other questions will give you a good idea of how a Realtor
"negotiates" a home sale.
How are real estate agents paid?
Real estate agents (and the brokers with whom they are licensed) are
usually paid a commission. A commission is a fee, often calculated as a
percentage of a home's sale price, paid to a real estate broker. The
broker then divides this fee, sharing it with the real estate agent and
cooperating broker/agent (if any) in the transaction.
Payment for real estate services may also be charged as a flat fee,
irrespective of sale price.
How are buyer's agents compensated?
It used to be that seller-only agency was "customary" in residential
real estate. The real estate commission was thought to be paid by the
home's seller, deducted from the home sale proceeds at the time of
closing. Real estate agents and brokers represented the interests of the
property's seller; the buyer was unrepresented in the transaction – and
usually not even aware that this was the case!
This "conventional wisdom" changed in Ohio, and across most of America,
during the 1990s: without buyers, nothing sells. The real estate
commission is derived from the proceeds of the home sale, and is really
paid by both buyer and seller. Both parties are entitled to an "agency
relationship," and the representation it entails.
With the advent of buyer agency, home buyers are now able to be fully
represented by a real estate agent in the purchase of property. In most
states, it's rare that buyers would pay their agent/broker directly for
services in finding and purchasing a home. If a broker does charge
buyers a direct fee, it should be outlined in an exclusive agency
agreement that the buyer signs when engaging the broker.
When a buyer is represented by a real estate agent, she/he comes to
terms on which services the buyer-client is seeking, and the manner in
which the agent will be compensated for providing those services. In
most cases, a fee or commission is still derived from the seller's
proceeds of sale, and shared between the seller's (listing) and buyer's
(selling) agents and brokers.
What does a real estate commission typically
include?
Real estate brokers must independently determine their costs of doing
business, calculating both fixed and variable expenses. In addition to
maintaining their office's business environment, brokers incur many
costs as they market and promote their listed properties. Some companies
market all of their listings consistently – in classified ads, home
books and other print media via television home shows, Internet Web
sites and telephone hotlines.
Other companies vary, allowing individual real estate agents to select
which marketing their clients will have. Be sure you know what you're
being offered. Regardless of how many or few services you're selecting,
the commission generally remains a "standard" fee, stated in the
company's listing agreement as a percentage of the eventual sale price.
Is commission negotiable?
Yes, in every state and on every transaction, commission is by law
negotiable at the time it is established. In most cases, this means that
the commission will be established between the seller and the agent who
lists his/her home, long before a buyer is present.
Buyers and sellers should refrain from attempting to negotiate
commission at the closing table, when an offer to purchase is presented.
At that point, a specific fee has been established for services from the
real estate company; those services have resulted in the sale of the
home. Payment should proceed as it was contracted. Think of it this way:
would you ask a doctor to lower a fee, after your appendix was
successfully removed?
How might payment of a buyer's agent differ from a
"traditional" model?
One scenario might involve a home buyer, her broker and agent becoming
parties to an Exclusive Agency Agreement, which could state the terms
and conditions that will result in a fee paid "out-of-pocket" by the
purchaser. When a home is chosen, and a contract for its purchase is
written and accepted, the buyer could pay the fee as outlined in the
agreement.
Another scenario might involve a buyer who must find the right house
within a tight timeframe. Not just any house – but one overlooking a
lake, with boat dockage and an in-law suite. Locating such a specific
property quickly may require exceptional work from a broker/agent, and
the home buyer might agree to pay a cash "incentive."
Is it wise to offer a "bonus" to the agent who
sells my home?
Perhaps – if there are extenuating circumstances that might make your
home a particularly difficult sale. Discuss any such items (need for a
fast sale, lack of marketability, etc.) with the real estate
professionals you interview.
Net Proceeds
It's a major concern for every home seller - How much will I make from
the sale of my property?
Teresa can compute that answer before you even
place your home on the market, calculating backward from an estimated
"gross" sale price. He or she will deduct your approximate closing
costs, the real estate commission and any other fees or deductions
specific to your property and its sale.
Teresa will give you as much advance
notice as possible when a prospective buyer wants to tour your
home. Similarly, other agents who are part of the Multiple
Listing Service will make appointments in advance through your
listing associate (or directly with you if that's custom in your
market).
However, it is recommended that your home be ready to show at
all times. Before a showing, you’ll want to:
Turn on all lights, even during the daytime, including
outside entrance, closet, basement and attic lights. In
addition, open all drapes and blinds.
Turn off the television, stereo and radio (easy
listening music is OK).
Build a fire in the fireplace if in season. If not in
season, make sure the fireplace is clean.
Place pets in a fenced yard or ask friends to keep them,
at least during an open house (some people are allergic to
or afraid of animals).
Repair any damage caused by pets and check for pet odor.
Display an arrangement of fresh flowers, hang decorative
hand towels in the bathroom, and place an attractive
tablecloth on the dining room table.
Clean windows and mirrors.
Clean the kitchen and bathrooms.
Leave when your home is being shown, if possible.
Find something to do away from your home during the time
of the showing. The presence of an owner makes some buyers
uncomfortable. They tend to hurry or fail to ask questions.
If you must remain, be courteous, but don't feel the need to
make conversation. The buyer's Realtor® knows the buyer's
needs so let him or her discuss home features and answer
questions.
In the event a buyer just drops by and is not accompanied by
an agent, it is best not to show your home. Ask for the
prospect's name and phone number and inform them you’ll give it
to your Real Living listing agent. She is trained to screen
calls so you do not waste time showing your home to someone who
is not qualified to purchase it.
Today's buyers are sophisticated and they want to know the
details about both the homes and the neighborhoods in which they
have an interest. Providing this type of information is
a powerful sales tool so you’ll want to prepare the
following information with the help of your Real Living listing
agent:
List what is being offered for sale in addition to the
home, such as draperies, blinds, appliances, etc.
Warranties on appliances being sold
with the house.
Records of maintenance costs such as
utilities (especially budgets), property taxes, insurance,
trash pick-up, etc.
Obtain a buyer market analysis from
your Teresa. It lists community facts,
information on the average price of homes, public and
private school data, plus a summary of area conveniences
such as shopping centers, medical facilities, parks, museums
and more.
If selling a condominium, provide a copy of the association's
bylaws, financial statements, maintenance fees, special
assessments, etc.
It sounds easy. Put a "FOR SALE" sign in the yard and wait for
offers to pour in from interested buyers. Think again.
Selling your home on your own may be harder than you think.
Before you take on the challenge, ask yourself the following
questions:
Am I putting the security of my home and family
at risk by inviting just anyone to inspect my home at any
time, on any day?
Do I know the marketplace well enough to
establish the best price, so I don't over- or
under-price my home?
Do I have the financial resources and marketing
savvy to properly advertise my home?
Do I have the legal expertise to review
contracts and other documents?
Do I have the ability to advertise my
home on the Internet at a site that prospective home buyers
visit regularly?
Am I prepared to invest the many hours required to
coordinate the paperwork and other
arrangements necessary for a home sell?
Am I a skillful negotiator who
understands the psyche of the buyer well enough to
effectively close the sale?
Don't take chances with your most valuable asset.
Real Living agents undergo extensive training and are equipped
with available resources to effectively market your home.
Trust a Real Living agent to help you achieve your home sale
goal. You'll increase your chances of getting the best price for
your home in the shortest possible time.
Q. What typically goes into a
listing agreement? A. The listing agreement is
between the real estate company and a home's seller.
Think of it as your legal instructions to the people who
will market your home and represent you in its sale. It
must include beginning and end dates for the term of the
listing, the conditions to which you, the listing agent
and the real estate company agree, and a price (usually
a percentage of the eventual sale price) you're willing
to pay for services rendered.
Q. How important is the condition
of my property to its sale? A. The answer to this
question depends upon your priorities. Are you hoping to
extract the maximum sale price for your home? If so,
condition and appearance can both be very important. If,
however, you've let "deferred maintenance" catch up with
you, your priorities may be different. You may wish to
sell your home in "as is" condition, allowing its buyer
to repair/replace items as she/he sees fit. In this
case, your ultimate sale price will be less than what
the same buyer would be willing to pay for your home in
mint condition.
Q. Should we leave our home when
showings (or open houses) are being conducted? A. Generally speaking, yes.
If it causes you no undue hardship, it's easier for a
real estate agent to show your home without you present.
The agent is better able to "demonstrate" your home's
features and benefits, painting a realistic picture for
the buyers to envision themselves living there. Your
absence will also allow your prospective buyers to focus
on the house and its attributes – rather than on being
polite to you.
Q. What is an Agency Disclosure? A. An Agency Disclosure is
a state-required document, disclosing to you as a
principal in a real estate transaction (in this case,
the seller) whom the agent(s) in that transaction
represent. A state's Agency Disclosure simply notifies
you of that state's agency laws; it does not obligate
you to work with any particular agent or broker.
Q. Is Real Living a member of the
Multiple Listing Service? A. Yes, in every market we
serve, Real Living is a member of the local MLS, as well
as being members of the national, state and local
Associations/Boards of Realtors®.
Q. Do your real estate agents
cooperate with other companies' agents? A. Our agents work
according to specific laws, regulations and customs in
their respective market areas. In all markets Real
Living serves, brokers and agents from different
companies work cooperatively, showing and selling each
other's listed properties.
Q. Should I buy first ... or sell
first? A. Do you need the equity
that's built up in your present home to complete the
purchase of your new home? If so, you either need to
sell first or consider a bridge loan or house sale
contingency. We strongly suggest that you engage a real
estate agent with whom you can enter a trusting
relationship. Then discuss this question with him or
her, touching on every aspect of what it may mean for
your particular situation. Keep in mind, too, that the
Real Living listing agent who's selling your present
home can become your buyer's agent for your next home.
Q. How can I prepare my house for
sale? A. The selling process
usually starts months before a property is actually put
on the market. It is a good idea to look at your home
through the eyes of a potential buyer. This will help
you decide what needs to be cleaned, painted, repaired
or tossed out. Your Realtor can help you make these
decisions and list your home at a fair price when it’s
ready.
Q. What is the MLS, and how does
it benefit me? A. A Multiple Listing
Service, or MLS, is a database that makes it easier to
reach a large number of buyers and increase your
property’s exposure. It’s a system which participating
brokers at the real estate board agree to share
commission on the sale of houses listed by any one of
them. For example, if your house is listed with one
broker and another finds the buyer who purchases it,
they split the commission. You benefit because more
people have an interest in selling your house and your
home is exposed to more buyers since Realtors have
access to MLS.
Q. How can I find out what my home
is worth? A. Your HER associate has a
thorough knowledge of the current real estate market,
and will prepare a professional market analysis of your
home to help you set a competitive price. Your associate
will also help you stage your home for showing to
buyers. It is extremely important to view your home as a
potential buyer would. Professional staging features
your home in the best light, increasing its
marketability.
Q. As a seller, what do I have to
disclose about the condition of my property? A. The best policy is truth
when it comes to disclosing the condition of your
property. You must disclose all known material defects
of the property. Normally, these are noted on a Seller
Disclosure Form (SDF). This is a form included in the
seller compliance manual and is completed by the seller
and Realtor. If an item is not covered on the SDF, you
must still make disclosures about known material
defects. Even if a matter has been repaired, you should
still disclose the previous defect and a report of the
repairs completed. By disclosing all problems up front,
you can avoid any surprises that many times provokes a
lawsuit.
Q. When is the best time to put my
home on the market? A. Peak selling seasons
change from year to year and sometimes weather has a lot
to do with it. Often early spring and early fall are the
prime listing seasons because houses tend to show better
in those months than they do in the heat of the summer
or the cold of winter. Keep in mind there are more
houses on the market during the prime seasons, so you’ll
have more competition. You shouldn’t base your decision
to sell on what season it is because each selling
situation is unique.
Q. When choosing a Realtor, how do
I know what all of those abbreviations mean behind the
agent's name? A. Well, believe it or not,
all of those letters stand for Realtor designations.
Agents are required to take a certain amount of
continuing education classes each year to maintain their
real estate license. Many times, they’ll choose an area
to focus on in order to specialize in it. Below are some
of the most common designations, which indicate they
have specialized knowledge about a certain topic or are
members of different real estate associations.
(ARA) - Want a good way to help protect
the value of your home? Remember these
two words: green matters. Not green
paint, mind you, but green space. It’s
an umbrella term for the trees, lawn,
shrubs and other plantings that can
affect not only the salability of your
home, but your utility bills as well.
Which is why Project EverGreen, a
national non-profit organization, is
leading the charge to educate consumers
about the many values of green space --
especially as it affects their
pocketbooks. According to Den Gardner,
executive director of Project EverGreen,
“research shows that improving the green
space around your home can have real
economic benefits.” Protecting Home
Value Gardner cites a number of studies
which show that sprucing up your green
space can help protect and, depending on
market conditions, bolster home value.
For example: a study cited in Smart
Money magazine indicated that consumers
value a landscaped home up to 11.3
percent higher than its base price. In
addition, The Wall Street Journal
reported that landscaping investment is
normally recovered fully and sometimes
doubled by its ability to increase home
value.
That sounds good, but
Gardner adds this important caution:
“It’s wise to plan before you plant.
Make sure you begin landscape
improvement or renovation with
well-thought-out ideas for maintaining
and/or improving your green space. You
may want to do the work yourself -- and
that’s good exercise; however, it’s
always wise to seek professional advice
to get the right balance and placement
of trees, shrubs, grass and other
plantings.”
As evidence of this
he cited a research project conducted by
the Horticultural Research Institute (HRI).
This showed that a sophisticated
landscape design with trees and large,
colorful bedding plants can raise the
perceived value of a home between 5 and
11 percent. On the other hand, consumer
reaction was that minimalist landscapes
(i.e. with small plant size and low
sophistication) actually decreased the
perception of home value.
Saving Energy Costs
Planning the right
mix of trees, grass and other plantings
can also make a difference in a home’s
energy consumption. One study has
estimated that when properly placed to
shade your home, trees can reduce air
conditioning demand by 10 to 30 percent.
Another study found attic temperatures
could be up to 40 degrees lower when
adequate shade was present.
“There are two ways
you take advantage of this natural
cooling effect,” Gardner says. “First,
if you have mature trees make sure
they’re pruned properly to maximize
shade benefits, and second, in planning
for future shade, seek professional
advice as to the type and location of
the trees you should plant. Both steps
can help lower your electrical bill.”
Also, don’t overlook
how maintaining a thick, healthy lawn
and other plants also provides cooling
benefits. “This is due to a process
known as evapotranspiration. Gardner
says. “When vegetation is warmed by the
sun it gives up water which then
evaporates to cool not only the plant
itself but the surrounding area as well.
The result is one of nature’s most
overlooked, and yet most efficient
cooling systems. In fact, researchers
have calculated that evapotranspiration
from the front lawns in a block of eight
houses, produces cooling equivalent to
70 tons of air conditioning.”
You can find more information about these and other
benefits of green space by accessing
www.projectevergreen.com.
When you put your house on
the market, you should take down all the precious fixtures that you do not
intend to stay with the house.
According to the law, any
personal item that is bolted, nailed, screwed, cemented, plastered or built onto
the structure, becomes a fixture and part of the property. Examples would
include chandeliers, bookcases, drapery rods, wall-to-wall carpeting and similar
items. If you want to keep such items, you should take them down and replace
them or repair the area left behind before you put your house on the market.
Even if you specifically exclude them in your listing agreement, buyers may ask
for them or assume that they stay with the house. Taking them down before you
show the house will avoid a lot of confusion later.
Why do some homes sit on the market while others are quickly snapped up? The
following are a few points which will affect how quickly your home sells.
Pricing
If your home isn’t being shown, offers are coming in far below asking price
or the home has been on the market far longer then similar properties, then it
is time to re-examine the listing price. There may have been a time when homes
could be over-priced and owners might still make a sale. Forget it, those days
are simply gone. Purchasers now have buyer brokers who know the market, and the
Internet makes it tough to be anything but an informed buyer. As a result,
purchasers who do their homework have little reason to be shy about making an
offer with what they regard as a more realistic price.
Condition
The condition in which a home has been maintained directly affects
marketability and pricing. Many buyers realize they do not have the time, skills
or money to do major fix-ups to a home. But "poor condition" does not
necessarily describe homes in need of a major overhaul. Minor things can also
set off buyer jitters -- a touch of peeling paint, dirty carpets, a drippy
faucet. None of these items are a big matter individually, but they do make
buyers wonder if bigger problems lurk unseen. The bottom line: Clean and fix-up
a home before placing it on the market to speed the sale and reduce buyer
anxieties -- clean windows, a swept curb and a fresh coat of paint here and
there can do the trick.
Location
Real estate is all about location, and some locations are clearly better than
others. Since you can't move your home in the usual situation, the alternative
is to improve what you have. For instance, if you live on a busy street, perhaps
hedges or an ivy-covered trellis can be used to absorb noise and obstruct
unwanted views.
Access
You want to make matters as easy as possible for buyers. A lock box on the
door allows agents to schedule appointments at the convenience of their clients.
Owners, pets and children should be away when open houses and showings are
scheduled.
Reality
No home is perfect. Sometimes, even when you do all of the above, a home
still doesn’t sell. Some homes are unique and will only appeal to a select
group of buyers. What to do? Keep on selling. Eventually you will find the right
buyer for your home.
If your home has been on the market recently, call Teresa today for a
no-obligation consultation on the right marketing strategies for your home.
