One of the first and most important decisions most people make when selling a house is selecting a real estate agent. The real estate agent is the seller's representative, helping them navigate a process that can be complex. Choosing an agent with decades of experience will ensure your agent knows how to anticipate and handle potential roadblocks to smooth transactions.
Choose an agent you like and can relate to. Here are some of the characteristics that sellers say they want in an agent:
• Experience: You want an agent who has worked in the industry for many years. The experience that has been obtained working through hundreds of transactions in different market conditions will be invaluable to you as a seller.
• Honesty: Trust your intuition. Your agent should be direct and forthright. You should feel your agent listens to you and is not afraid to make suggestions for your benefit.
• Networking: This is a people business. Homes sell because agents have contacted other agents. Most often it will be another agent that brings the buyer.
• Negotiation skills: You want an aggressive negotiator who knows thein’s and outs of the game, not somebody who is out to make a quick sale at your expense.
• Effective communication: Communication and availability are key to a good relationship between a seller and agent. Fast response time is important and your agent should take the lead in keeping you updated on a regular basis.
• The Art of Pricing-One of the biggest mistakes that home sellers make when choosing a listing agent is in selecting one based solely on two factors: the highest list price for their home and the lowest commission. Beware of agents who distort the truth to get the listing. Since agents can't guarantee your sales price, the listing agent who suggests the highest price could very well be attempting to “buy your listing”. Ask the agent to show you hard data supporting the suggested list price. If the home is priced right, you'll likely get an offer. If it's priced too high, you might not get any showings at all, and you'll eventually end up having to reduce the price, leaving buyers wondering what's wrong with your house.
• Commission-Why would an agent willingly work for less than competitors? Sometimes it's because they can't otherwise stand apart from the competition in service, knowledge, or negotiation skills. If the sole benefit that an agent brings to the table is a cheap fee, ask yourself why. Is the agent desperate for business or unqualified? Consider these questions before committing to working with an agent. Ask yourself if the agent is willing to negotiate their fee, how well will they defend the price of your home?
• Marketing Plan-Your agent should present you with a comprehensive marketing plan. It should cover everything from setting up professional photographers and videographers, to composing compelling copywriting. Marketing to the real estate agents in the area should be a top priority. Your home should be featured on television, social media, print and direct marketing. Feature sheets, websites dedicated to your property, direct mail, and open houses that promote directly to the public are all equally important.
• Prepare your home-This takes work, whether that’s your own sweat equity or some professional improvements. Get your home looking move-in ready, in a way that will appeal to the broadest range of potential buyers. Consider programs such as RealVitalize. This program is a new offering for Coldwell Banker Realty clients, helping with home improvements and repairs to prep your home for sale. We cover your upfront costs and get paid back when your home sells.
• Consider staging-Staged homes sell 86% faster than non-staged homes. Your agent should advise you in identifying the items that should be completed.
• Opt for a pre-inspection-While it’s likely that your buyer will do an inspection as part of the purchase process, sellers often opt to do their own. A pre-inspection can help you avoid surprises down the road and gives you a chance to fix the items that an inspector would flag for a buyer which often leads to renegotiations or cancelations.
Your home is ready to be unveiled and presented to the local real estate community and potential buyers. All the hard work of preparing your home, assembling the marketing materials, and launching the advertising now goes into effect. All this is designed to attract showings, so when they are requested, make your home available and in its best possible condition.
Your agent should give you feedback whenever possible and keep a detailed list of who has visited. Following up with the showing agents and getting their viewpoint of how it compares to other properties is important.
Your agent should give you weekly market updates that inform you about new listings that have come on the market and any listing that has gone into escrow or sold.
This is the goal your agent has been working toward, getting you an offer that is acceptable not only in price but with terms that are reasonable from a well-qualified buyer. A good agent will speak directly with the buyer's loan officer if a loan is involved, or in a cash sale, will verify the funds necessary for closing with the buyer’s banker(s).
In a strong seller's market, it is likely that you will receive multiple offers. A seasoned agent can help you sort through the pros and cons of each and suggest counteroffers to help you achieve the best possible offer from each potential buyer. It is wise to put one of the offers in the backup position.
Negotiation is an art form. Timing, proper communication, and research are very important. This means that while you are negotiating the deal, every piece of information that you provide to the buyer should be carefully released at just the right time, spoken in just the right way, and designed to improve your position in the transaction. Experience has shown that the "art of negotiation" is not just a simple isolated exchange, but rather a continuing effort. Every action taken during the entire transaction beginning with submittal of the offer to close of escrow is part of this negotiation. You know what they say, “It ‘ain’t over till the County Recorder Sings”. Don’t give up your position too early, don’t make unnecessary concessions, and do compromise without gain.
Watch for closing hurdles. Consider these potential issues that can come up between the time you accept an offer and closing day.
• Inspection report: The home inspection a buyer does on your home can raise all kinds of red flags, and when major issues are uncovered, a buyer might decide the fixes are too expensive and walk away from the deal. Whether the inspection report reveals small fixes or big problems, be prepared to negotiate after the report is completed.
• Home appraisal too low: If your buyer is financing the home, their lender will typically order an appraisal to make sure the home is worth the amount being financed. If the value of the home comes in below the loan amount, the buyer will have to come up with the difference in cash, renegotiate the price, or walk away from the deal.
• Financing failure: During the underwriting process, it’s possible that your buyer’s financing could fall through. This can be caused by many different things, such as new debt, missed credit card payments, or a change in employment that makes the bank feel like there’s too much risk in financing the home.
• Time it right: If you’re buying and selling simultaneously, you might consider temporary housing so you don’t have to worry about timing your sale and purchase perfectly, which rarely happens.
• Be prepared to move quickly: The average time it takes to sell a house can be very short, from the list to close, so you’ll need to be prepared to move out in a short period of time. It’s a must that you be out of the home by the closing date unless otherwise negotiated.
When it comes time to close on the home, you as the seller are responsible for some legal documents and processes. Your agent and escrow offer will be there to guide you
• Complete repairs and obtain certifications: If you are obligated to complete repairs or provide certifications as a condition of your post-inspection negotiations, it is your responsibility to complete those tasks before closing.
• Review expected closing costs: Review your estimated closing costs.
• Sign documents: One of the very last steps is showing up for your closing appointment, where you’ll sign all the legal documents related to the sale of your property.
• Close the transaction: At closing, the settlement agent (either the closing attorney or escrow company hired at the outset of the transaction) will record the new deed for the home with the county, pay off your remaining mortgage balance, pay all closing costs and make sure you receive your profit.
• Hand over keys: The keys are handed over to the buyer once you vacate the premises, and as dictated in your contract with the buyer. If the buyer is taking immediate possession, you might hand over the keys at the closing appointment. Or, depending on the terms of your agreement, it could be much later.
As an agent who's an expert in this local area, I bring a wealth of knowledge and expertise about buying and selling real estate here. Contact me today!