Dear Prospective Seller:
There are a number of steps to selling any house -- and you've just taken the most important one: You've contacted an expert to help you. Experience has taught that every home sale is unique. Yet every sale -- shares a common process.
Both home seller and listing Broker ("Agent") are doing their homework prior to the listing appointment. While the home seller collects a list of documents requested by the Agent, the listing Agent studies recent neighborhood sales of homes comparable to all homes currently for sale, as well as specific to your homes configuration.
At the listing appointment, the Agent will want to inspect the house and
yard to become familiar with its special features. You have probably enjoyed
living in your home and have been pleased with its many unique features.
Your Agent will want to tell prospective buyers about the special features
of your home and neighborhood. Be ready to be specific about schools, day-care,
and other desirable community features, as well as home features not readily
apparent.
Remember, prospective buyers will be "comparison
shopping" and keenly aware of subtle differences in houses for sale in the
area. Be sure to tell your listing Agent why yours is special.
Demand Sets Price.
After conferring with the Agent on market conditions, comparable nearby
sales and listings, and available financing, the home seller will set the
listing or "asking" price for the house.
A common definition of market value is: "What a ready, willing and able buyer
will pay, at a price a seller will accept." Today's buyers are sophisticated.
They've already been shopping, and when they see your home they'll be comparing
features and financing.
There's a rule of thumb that says: "A house priced more than 5% over market
value discourages offers." Buyers who can afford the price can get "more
house" for their money elsewhere. Buyers who cannot afford the price simply
won't look.
A fair market value will be determined by comparing the property with similar
properties which have recently sold and (in some cases) with similar properties
currently on the market. Experience in the industry has proven this "market
analysis" approach is more accurate than the "replacement cost" or "potential
rental income" methods.
Based on this sales price, the Agent will go through a worksheet that estimates the "net cash" from the sale. Simply, this exercise subtracts anticipated charges paid by the seller from the sales price. A copy of the "net sheet" is left with the home seller.
No sale can be completed without financing. That is why it is generally to the home seller's advantage to appeal to the greatest number of home buyers by accepting the greatest range of financing plans. The Agent will explain the basic differences between VA (Veterans Administration), FHA (Federal Housing Administration) and conventional financing, as well as explain "discount points."
To enable the Agent to prepare a folder of information on the property, the home seller needs to provide a number of documents and information specific to the location and jurisdiction. This Marketing Brochure is left in the home for the convenience of prospective selling Agents. These materials may include:
A letter signed by the home seller and mailed to the lender by the Seller or Agent to notify the lender of the intention to pay off the mortgage in order to minimize prepayment of interest penalties to the seller (Home seller should provide the broker with the lender's address, loan balance, assumability, years remaining on present mortgage, PITl and the interest rate, if possible.)
If property is on septic/well, was built prior to 1978 and must comply with lead paint regulations, or must meet current inspections by local health authorities (which may be required while home is occupied), Agent will arrange after contract is ratified.
Lenders require an appraisal to assure that the property is adequate collateral for a loan. Appraisal may be ordered before an "offer to purchase," but is more often done after an Offer is accepted .
The Agent will ask the home seller if any tax assessments or easements exist on property that must be paid or included in purchase contract and passed with the land when sold. The home seller provides records of property tax or condominium fee payments which buyer will reimburse a pro-rata share to home seller at settlement.
VA/FHA and most lenders of new mortgages require a termite inspection certificate that shows house is free of infestation. If home seller does not have a current certificate, then listing or selling Agent (depending on area) will arrange inspection. Sometimes a home inspection and radon testing will be ordered. Home seller should also provide all information as to the physical condition of the property, such as the presence of fire retardant plywood.
Home seller should provide record of past 12 months utility bills, including gas, electric, sewer, water, and trash where applicable. Most buyers will want to know history of utility costs.
If possible, home seller should provide Agent with deed, house location survey, condominium bylaws or home owners association documents, subdivision plat map, house floor plan, previous title search abstracts, legal description of property (subdivision, section and lot), home warranties on major systems, if still in effect, and copy of home owners insurance policy for endorsement in purchase contract.
In anticipation of a buyer's offer, the home seller must be ready to supply Agent with a specific list of the personal property that is included in the real estate property for sale. Examples of items to "convey" may include: draperies, drapery rods, remaining heating oil, firewood, washer, dryer, refrigerator, stove, microwave, disposal, swimming pool chemicals, awnings, storm doors and windows, screens, venetian blinds, shutters, window air conditioner, etc. Home seller should tag or remove items which do not convey.
When the home seller is ready to put the house on the market, the listing agreement is filled out indicating a specific period of time the agreement is in effect ("listing period"), and signed by the seller You've now hired a Broker and Listing Agent. A lockbox is a universal metal container for your house key that will be hung on the front door and can only be opened by a special key carried by licensed sales agents. It provides access when the owner is away, thus assuring full exposure to prospective buyers.
Home selling requirements vary from county to county. Investigate special taxes or other requirements applicable to the area in which you live.
I look forward to working with you as my Client and will provide you a no-obligation Comparative Market Analysis of your home's value in today's market, as well as an overview of my marketing strategy to get your home SOLD. Please call or email me with your questions and comments.
Call or e-mail me today for leadership, quality and action . 410-267-1747 info@pamkepner.com
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