Expert: Jessica Bryan - 3/19/2007

Question
We purchased our first home last year, but now need to sell it due to a military transfer.  Since this is out first time selling, we do plan on hiring a realtor.  
What is the process of selling a home?  
Do we contact a realtor first?  Do we search for one, or just use the same one we went through to buy the house?  How do realtor fees work?  
Do we need to hire an appraiser to find out what our house is worth?  
Any suggestions on making our house more sellable?  
What types of fees should we account for when selling a home - we want to make sure we dont have to pay out of pocket (or do we ask the realtor this)?


Answer
Dear Selena;
The process of selling a house can be a little stressful so it is important to work with an agent with whom you feel very comfortable.  If the agent who sold you the house is one like that then by all means use that agent again. However, if you feel like you are more likely to communicate better with someone else then the very first thing to do is to begin interviewing agents.  Call several.  Ask them what they would do to market your home and how much they will charge for their services.Fees are negotiable and can be in a broad range.  However the fees are usually dependent upon the services.  If a sales agent is discounting their services you will get very little assistance from them.  The more you pay the more you can expect.  Some companies specialize in reduced fees where they do nothing more than put a sign in your yard and post the listing on the Multiple listing service.  You will have to arrange your appointments , negotiations, contract, etc.  Since this is your first time selling a home it is wise to have an agent to help you with the local requirements, disclosures, forms, flyers, advertising, negotiation, inspections, repairs, and closing. An agent will also look out for your best interests in making sure that the buyer is qualified and that the contract protects your interests and rights.  The agent will also be knowledgeable of the market and price the home accordingly.  It is not necessary to hire an appraiser to discover the value of your home since the real estate agent has access to the same records and can do the same thing.  Your agent can also walk through the home and help you 'stage' the home for a quick sale making suggestions on decorating, cleaning, touch up's repairs, and landscaping.  Often, we do not see our own home the way others might so your agent will help you by asking you to perhaps pack up clutter, remove some of the photos, clean the magnets off the refrigerator and tidy up the junk piles that many of the homes seem to have.

As for fees you will have to pay, each area is different but usually your fees are taken out of the proceeds at closing. They will include recording fees and some taxes.  the bulk of the fees will be the commissions and paying off the mortgage.  Your agent can help you with the answers to most of these questions and walk you through what happens when.

Good luck and best wishes,
Jessica Bryan