Expert: liznarr - 10/10/2005

Question
Hi Liz,
My husband and I have decided to sell our first house that we
bought together 11 years ago.  I have no idea how to find a realtor
(do I need one?), what a realtor should do for me.... all the things
you wrote in your profile!  We are thinking of putting our house on
the market in April (we live in Maine)-- it's definitely a "starter
home," not too big, not to fancy.  Can you offer us any advice to
get started on the realtor selection?  Thank you so much!
Pam

Answer
Hi Pam,

Sorry for the delay in responding.  I started this answer right after I received your question and did not finish until earlier this evening.  I wanted to make sure you have more than a simple, basic explanation.

This will be a lengthy reply, but you have an important decision to make.  You need to feel comfortable with, and have confidence in the agent you select to market your home.

The best way to make sure you choose a good Realtor is to ask friends and/or family what Realtor they have USED previously and had good results with.  Ask pointed questions of their experience with a Realtor such as, “What did you like best or least about the Realtor, and what would you change if you had the experience to do over again?”

Whomever you choose to be your agent, you should expect a good Realtor to do all of the following for you:

1.     Give you guidance in pricing your home by providing you with a Comparable Market Analysis (CMA) of the homes in your area.   A CMA will show you what comparable homes are selling for, how long the “average” marketing time has been for the comparable properties, and who paid closing costs.   

      You should include an amount in the pricing of your home to pay some closing costs (if you would be expected to pay or assist with closing costs for a buyer) and price your home accordingly, including SOME room for negotiation.

       Also, you should be provided with a Seller's Net Sheet which will detail all expenses you should expect to pay at closing and an approximate amount you should hope to net out at closing.  This would be exclusive, of course, of any unknowns such as any repairs which might be required to provide clear wood infestation and/or heating and air conditioning letters (and also any repairs required as a result of a Buyer's home inspection).


       A good agent will also verify the mortgage on your home which will show an anticipated payoff amount as of “X” date.

2.     Offer suggestions on possible improvements or cleanups you should do BEFORE putting your home on the market to enhance the sale, including any pre-inspections for wood infestation reports and/or heating and air conditioning systems.  This will minimize any “surprises” for you later.

3.     Have you fill out a Seller Property Disclosure Form that should be readily available for prospective Buyers to examine.   This is a way to minimize liability for you by giving FULL disclosure up front.  You would outline any problems you might have experienced with your home and what steps you have taken to correct them, and in general, what the condition of your home is.

        In addition, you may want to give your agent a copy of your survey and/or any restrictions of record so that this information will be on hand.  Don't overlook having your utility bill averages available, also.

4.     Explain and detail a marketing plan for you regarding advertising and other ways your home will be marketed.  Will there be newspaper advertising, trade magazine advertising, open houses, flyers, mail outs, Internet exposure, agent tours?   What kind of follow-up and feedback from Buyers will you receive after showings?

Make sure you have a VERY clear understanding in advance of what is being promised to you.  Don't hesitate to ask for all this in writing. That way, if an agent does not perform, you will have a better chance of an early release from the listing.   If you have any reservation or hesitation about an agent, you should ask for references but remember no one will volunteer an unhappy or disgruntled person to you.  A better place to check would be your state Real Estate Commission and/or Realtor Association for any unresolved complaints.

5.     Ask questions on your preferences for showings to prospective buyers:  Are you agreeable to a lockbox, sign?   Will you require an appointment, or just a courtesy call in advance?   

       Also, you should be counseled on what to do or not do when your house is being shown.   Don't fall prey to an agent of another company who is not be representing you and asking questions which would minimize your negotiating ability later such as, “Will you pay closing costs, are you firm on your price, are you leaving the drapes, refrigerator, etc.”  These are improper questions of other companies' agents who do not represent you and should be addressed only in a written offer UNLESS, of course, you want to publicize any of these facts.    


6.     Prepare you for potential offers and direct your thinking in the areas of what appliances, window treatments (drapes AND hardware), sheds, satellite dishes, fixtures etc., you might be asked to leave with the home.   If asked to leave any of the preceding, what would you REALLY be willing to leave?  Of course, that might depend on whether you perceive the offer as a good one or a bad one, and it usually all boils down to the amount of MONEY you would walk away from the closing with.  The more you think about in advance of an offer, the quicker you will be able to respond and not make a “bad” decision.

       A good Agent should also prepare you in advance for the standard wording in Contracts including home inspections by Buyers.  If any defects are found and you are asked to correct them, what are your options?   What are the time periods for conducting the home inspection and addressing any requested repairs, who pays for it?

       It would be a good idea for you to have a sample copy of a blank contract used in your area so that you will be familiar with the wording and be able to ask intelligent questions when an offer is presented to you.

7.     Discuss options for you in the event of a quick sale.  Where will you move?  Will you have to make two moves?  Will you be renting, buying, transferring?  Do you prefer NOT to move before a certain date, such as when children will be out of or returning to school?  These aren't necessarily decisions you HAVE to make now, but you need to be thinking and preparing for your options.

8.     Discuss with you how potential Buyers are pre-qualified before showing so that your time will not be wasted.  Your agent, of course, can only answer for herself/himself, and not agents of other companies; but good agents won't be interested in wasting their time with unqualified Buyers.

9.     Explain whether or not any offer will be required to be accompanied by a satisfactory pre-qualification letter (or require one within Ax@ days after acceptance of any offer).   You should have the right to void any Contract if a Buyer cannot produce an acceptable pre-qualification letter at the time of an offer (or within a stipulated time period after acceptance of an offer) from a reputable lender stating that the buyer is a good candidate for a loan and that the lender has pulled AND examined at very least a recent in-file credit report to document the pre-qualification letter.  

The WORST thing that could happen to you would be to accept an offer from an unqualified Buyer and lose valuable marketing time by having taken your home off the market in anticipation of a sale which could never be.


10.     A good agent will readily volunteer their credentials to you.  If they don't volunteer, ask:  How long in the real estate business, what designations they have (which indicates additional schooling after licensing) and any Realtor association they are a member of, knowledge of your area or neighborhood, negotiating skills, support staff, and how readily available they will be to answer any questions or help with any problems and give you status reports AFTER listing.

11.     Last, but certainly not least, a good agent should thoroughly discuss and explain AGENCY to you:  Whom will the agent represent?  What is their company policy on Dual Agency (representing both Seller AND Buyer)?  Does your state recognize the facilitator concept (where an agent represents no one and is merely the facilitator or go-between for two parties)?

Things that you as a homeowner can do to help your home sell faster as far as appeal is concerned:  Keep grass cut and eliminate weeds, keep leaves raked up, and sidewalks edged.  Add color in the yard or on a front porch, for example, with flowering plants, shrubs.    Put fresh straw, bark chips, pebbles, etc., in flower beds.   If you have any chipping, peeling exterior paint and have the money to spend, this is a worthwhile area to spend a few dollars on.  If you have small children, make sure any front storm door is free of smudges and/or fingerprints.  Curb appeal is what will draw people to the OUTSIDE of your home.  Make it as inviting as possible.

Once inside, you want a potential buyer to see a well-kept, clean home.  Keep all beds made, no dirty dishes in the kitchen, all garbage ALWAYS emptied, eliminate ALL clutter you can.  If you have indoor pets, make sure there is no pet odor and keep any litter boxes changed and deodorized daily.  Open all blinds and let as much light in as possible.   If you have advance notice before a potential buyer views your home, turn on all the lights you can and walk outside if possible while they are inside looking.

As a final checklist, view your home and yard with a critical eye.  Imagine that the PERFECT buyers are coming to look.  Do you see anything that would detract from your property, or do you see anything that could be improved on?  I'm NOT talking major money here, but simple things you can do.

Good luck to you, and write again if you have additional questions.

Regards,

Liz Narr