Disconnect Your Emotions
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.
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.
first step in getting your home ready to sell is to "de-personalize"
The Exterior of the House
real estate advice tells you to work on the outside of the house
first, but unless there is a major project involved, it is probably
best to save it for 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.
homebuyer・s first impression is based on his or her view of the
house from the real estate agent・s car. They call that first
impression "curb appeal."
a walk across the street and take a good look at your house. Look at
nearby houses, too, and see how yours compares. Then it may be time
to go to work.
Meeting With Realtors
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.
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.
Practice Called "Buying a
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,
all, everyone else does it!
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
some agents "buy" listings this way?
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.
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
"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
reason, no agent who accepts an open listing 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.
all an "open listing" is good for.
"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.
an open listing, agents will not be spending money on marketing your
home and it will not be placed in the Multiple Listing System.
Real Estate Commission
areas there is a "customary" percentage that real estate agents and
companies expect to earn as a commission. The percentage varies
from region to region, and depending upon whether it is residential
real estate or commercial real estate. 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.
listing contract also specifies when the commission is earned. This
is important and you should pay close attention:
ready, willing and able buyer presents an offer that meets your
listing price and terms, the agent has effectively earned the
commission at that time. If a buyer presents an offer and you reach
agreement on price and terms through counter-offers, the agent has
also earned his or her commission.
occasionally get cold feet, just like buyers do. If this is going
to happen to you - make sure you consider it before
you agree to terms with a buyer.
reach terms with a buyer, you have incurred two contractual
obligations. One is to the buyer and the other is to your agent.
if you should decide to cancel just because you've changed your mind
about moving -- the agent has earned their commission according to
the terms of most contracts. They will probably want to be paid.