Sellers Guide

Putting Your House On The Market

The first step toward putting your house up for sale is to meet with a real estate agent at your home. The agent will walk through your home with you and advise you what should be done before marketing your home. Sometimes a can of paint will do wonders! So don't rush to spend any money on fix-ups until after you and your agent have discussed what really has to be completed.

Listing Broker or Listing Agent

This is the individual real estate broker whom the seller hires to represent the seller through a contract called a "listing agreement". The listing agent is associated with the listing broker. The listing broker is directly paid the listing commission and then splits the commission with the listing agent. (Although the broker and agent may be two different individuals, the term "broker" is used throughout the Guide for simplicity.)

Selling Broker or Selling Agent

The selling broker or agent produces the buyer for the property. This broker may or may not be the same as the listing broker. When there are two different brokers, then both the buyer and seller are represented by their agents. However, in no case can one agent represent both the buyer and the seller. This is important to remember: The listing agent (who works for the seller) can help a buyer write an offer and get the buyer to the settlement table, but that agent only works with the buyer, not for him. The agent cannot advise, negotiate for, or perform anything other than "ministerial acts" for that buyer. In this case, the buyer would have no representation.

Where the listing and selling broker are the same brokerage, then the broker is a Dual Agent. However, both the buyer and seller are fully represented by their own "intra-company agent".

Preparing For The Listing

One of the first things a listing agent will do with a home seller, is to review the condition of the home to see what, if anything, needs to be fixed prior to listing the home. Some repairs and "fix-up" may be required to get top dollar for a home, or to sell a home more quickly.

Before the listing appointment both the home seller and the listing broker are busy. While the home seller collects a list of documents requested by the broker, the listing broker studies recent neighborhood sales of homes comparable to yours, and also comparable homes currently for sale.

Arming Your Agent

At the listing appointment, the listing broker will want to inspect the house and yard to become familiar with its special features. Your listing broker will want to tell prospective buyers about the special features of your home and neighborhood. Be ready to be specific about schools, day-care, nearby Metro, and other desirable community features, as well as home features not readily apparent.

Remember, prospective buyers will be "comparison shopping" and are keenly aware of subtle differences in houses for sale in the area. Be sure to tell your listing broker why yours is special.

Setting The Price

After conferring with the listing broker 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." Metropolitan area buyers are sophisticated. They've already been shopping, and when they see your home they'll be comparing features and financing with comparable homes.

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. This is why we say, "A house priced right is half sold."

Sample NET Form

Based on this sales price, the listing broker 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. These costs are typically paid at close of escrow, also known as Settlement.

Financing Options

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 listing broker will explain the basic differences between VA (Veterans Administration), FHA (Federal Housing Administration) and conventional financing, as well as explain "discount points."

Property Profile Folder

To enable the listing broker 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 Property Profile is often left in the home for the convenience of prospective selling brokers.) Because the list is long, you can understand why it's best to collect the papers before the listing appointment. These materials may include:

List of Conveyed Property

In anticipation of a buyer's offer, the home seller must be ready to supply listing broker 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

Listing Agreement

When a 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. Congratulations! You now have a listing broker and listing agent.

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