Learn About Selling
Should I use a real estate professional?
Yes! In today's complicated real estate market, a real estate professional is even more important than ever. It would take you months, and even years, to gain the knowledge offered by a true real estate professional. From knowledge of the market, to understanding the financing maze, to protecting your interests while hammering out the details of a real estate purchase contract, your professional real estate agent can save you time, money, worry and aggravation.
What is a REALTOR®?
A REALTOR® is an agent or agency that belongs to the local or state board of REALTORS® and is affiliated with the "National Association of REALTORS® (NAR). They follow a strict code of ethics beyond state license laws and also sponsor the Multiple Listing System (MLS), which is used to list houses for sale.
What is a Seller's or Listing Agent?
If you are selling real estate, you may want to "list" your property for sale with a real estate firm. If so, you will sign a "listing agreement" authorizing the firm and its agents to represent you in your dealings with buyers as your seller's agent. You may also be asked to allow agents from other firms to help find a buyer for your property.
Be sure to read and understand the listing agreement before you sign it.
Duties to Seller:
The listing firm and its agents must
- promote your best interests
- be loyal to you
- follow your lawful instructions
- provide you with all material facts that could influence your decisions
- use reasonable skill, care and diligence, and
- account for all monies they handle for you.
Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission so long as they represent you.
Services:
To help you sell your property, the listing firm and its agents will offer to perform a number of services for you. These may include
- helping you price your property
- advertising and marketing your property
- giving you all required property disclosure forms for you to complete
- negotiating for you the best possible price and terms
- reviewing all written offers with you and
- otherwise promoting your interests.
How is the Listing Broker compensated?
For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.
What is Limited Dual Agency?
Oftentimes, a buyer will work with the agent who has listed a piece of property for sale. If the agent represents only the seller, the agent will disclose this agency relationship to you in writing through a Commission-approved Agency Disclosure Form. In this instance, the buyer would be a customer, not a client. Customer status means that the buyer will be treated with honesty and fair dealing by the agent, but you will not be represented by the agent. You have the right to seek your own representation.
If the agent has the consent of both parties to act in a limited-dual-agency capacity, then the agent will be representing both the buyer and the seller in a limited way. Once the agent represents both sides of a deal, the agent cannot perform as many of the actions or duties as he or she could when representing only one party. For instance, the agent cannot try to get the highest price for the seller while also getting the lowest price for the buyer.
Remember: An agency relationship requires both knowledge and consent. You have the right to be represented by whomever you wish.
What is the MLS?
MLS stands for "Multiple Listing Service." Any real estate agent that is a member of the MLS may assist a purchaser in all aspects of the sale of any property that is listed in the MLS. In other words, a property that is listed with Company A may be sold by one of the agents from Company B. A person wanting to buy the property listed with Company A does not have to go through Company A to make an offer on that property.
How does the MLS benefit sellers?
By listing their property with a member-company of the MLS, a seller is gaining a broader exposure of his/her property to the market. Each agent that is a member of the MLS is notified of the availability of that property for sale. In effect, the seller has each member of the MLS working for him/her. The seller is also taking advantage of the expertise of the professional real estate sales associate. The seller no longer has to worry about missing telephone calls about the property, or learning about different financing options, or being home to show their property to prospective buyers.
Should I list my house with a real estate firm before I start looking for my new home?
Yes! Very few sellers are willing to take their homes off of the market while waiting to see if your home will sell. This is especially true when you haven't even started to market your property through a real estate professional. However, when you can tell the seller that your home is in the hands of a competent real estate agent, the seller knows that there is a much better chance of your home selling within a reasonable time. Even better, is when you can tell the seller that your home is already "under contract." This will make it much less risky
How do I choose the best list price?
Pricing your property to sell is one of the most important decisions you’ll make when preparing your property for sale. Many factors play into that decision. Interest rates, the local economy, the national economy, the number of properties available, the number of buyers in the market and the location of the property are just a few of the elements that must be considered when setting the price of your property.
By pricing your property too low, obviously, you are giving up money that could have been used for something else. By pricing your property too high, however, you may be doing the exact same thing by not allowing your property to sell as quickly as it should! A list price that is only 10 percent above the market price will keep many buyers from even looking at a property! The longer a property is on the market, the lower the selling price tends to be.
Your CENTURY 21 Partners Sales Associate has the training and experience that you need to help determine the proper price for your property. Our staff of professionals knows what drives the market. We utilize a variety of tools to provide the most accurate information. Our real estate professionals will help you adjust the price based upon the length of time you are able to wait for a sale. They will suggest ways for you to increase the value of your property. In short, they will help you to maximize the selling price, given your current situation and market conditions.
Why guess about such an important decision? If you are thinking of selling, or are just curious about the current value of your property, contact us today. A CENTURY 21 Partners professional will provide you with the information you need to make an informed market decision.
What is the difference between an appraisal and a CMA?
An appraisal is done by a professional appraiser and usually cost between $250-350. In an appraisal the appraiser will come up with the value of the home by adding and subtracting individual items in the subject house compared to comparable properties that have recently sold. A CMA on the other hand is done by a real estate agent and is almost always a free service. In a CMA the real estate agent will find similar homes to the subject property. There will be a low price and a high price. They will compare the overall condition of the subject house to the similar homes and make a suggestion to price the home at. Although both are just estimates to value, an appraisal is more specific and can be used for a mortgage whereas a CMA won’t.
What if my house doesn’t appraise to the agreed upon price?
There are a couple of things that could happen. First, you could get another appraisal from a different appraiser. If that is not an option then there are basically three things that will happen. The buyer puts more money down to compensate for the low appraisal, the seller can lower the price of the home to compensate for the appraisal or finally, you can choose not to sell your home and wait for the market to catch up to the price you’re asking.
