The best advice for home sellers that I encountered on the Web is available on Prudential Texas Properties. Granted, this is a real estate brokerage franchise site, but the advice is sound. Real Estate ABC is also a good source of info.
Additionally, the Articles of Interest linked below provide insight to important bits of information.
Competative Market Analysis (CMA)
A free competitive market analysis, also known as a home value estimate and by many other terms, is one of the most critical aspect of marketing your home. If the price is not set right, you stand to net less than you otherwise could, or not sell at all. In addition to my ability to determine the right price, I also tailor marketing strategies for market conditions in order to get the right price. Please allow me to compete for your listing by clicking here to send the information I will need to best serve your needs.
Selecting the Right Agency
Selecting the right agency (brokerage) and agent is another important decision you must make after deciding to sell. Ample information and misinformation about making the selection is available online. The opinions are disparate, and most are intended to validate the professionalism of the writer (as are my own) or direct you to some agent-finder service offered through the site.
The two points of agreement which nearly all the advice offers are that a REALTOR® member of the Multiple Listing Service (MLS) will provide the greatest exposure to the market for your home, and listing agents rarely ever sell their own listings. Rather, they find the agents who will sell them.
After establishing that your agent is a REALTOR® member of the MLS, and is associated with an agency that provides adequate sales support, your 3 primary considerations should be:
What is the agent's approach to pricing your home, and how would you react to information that does not meet your preconceptions?—Every agent does what they call a competative market analysis in preparation to listing a home, but some are both better at it and able to adjust prices and strategies to best serve their client's needs. Does the agent explain various pricing and negotiating strategies related to any time pressures you may be under, or just present you with a price? Does the agent mind whether you see the data used in arriving at the price. If the agent shows you the data, aer all the properties truly comparable—the same number of bedrooms and baths, construction, improvements; and are they in the same neighborhood? A blog article, "A Quick Sale For Top Dollar," goes into this in some detail.
Do you get a sense that the agent takes the agency relationship seriously?—Is your agent committed to serving your best interests? Does the agent take the time to make sure that you are informed about: the terms of the listing agreement; the market environment; prepares you well to avoid pitfalls, including being candid with you about some misperception you may have, and pledge to keep you informed about what has been going on during the listing period?
Good agents know that repeat and referral business butters their bread, and they put their client's interests ahead of their own. The paradox in this is that, by putting their clients first, agents ultimately serve their own best interests.
What are the agent's strategies?—Ask the agent what marketing and negotiating strategies they anticipate using.
Listing in the MLS, advertising in newspapers and trade publications and holding open houses are standard marketing strategies—but advertising and open houses do not sell listings. They attract buyers to the agency. Though an agent will try to sell the property a buyer calls about, many factors most often result in no firm buyer interest in the subject property. Listing in the MLS is the only strategy that actually serves a seller's interests—because it not only tells every MLS member in town that your property is available, but puts the World on notice through REALTOR.com (see the San Antonio MLS section of this site).
So, what else do they do? There are at least five very effective strategies that the agent should readily say they will employ. Though I readily share marketing strategies with clients, I need to ask that you please excuse me for not giving away my secrets here.
After doing everything else right, the agent's negotiating strategies and skills can close the sale or lose the sale. Neither the seller nor the buyer holds all the cards, but buyers generally have more options, even in a seller's market. The key to success is in the strategic decisions a seller makes from the start, and in the timing. A good agent should at least be able to say this. Again, please excuse me for not giving away my secrets here.
Does the agent have their own Web site?—If so, the Web site will tell you a lot about the agent.
Does the site content appear to be about the agent and agency, or does it provide useful information and tools. And does it contain a lot of links to fluff about gardening tips, home improvement ideas, and dog grooming, or does it focus on the prospective client's need for information? What about the quality and source of the information that does matter? Does the agent's own material seem well thought out, and does the site offer comprehensive tools and point you toward relevant news, services and advice from reliable sources?
Perhaps more importantly, how does the agent maintain and promote the Web site? Are significant numbers of the links dead? The Internet is a powerful marketing tool, and Web savvy agents will maintain their sites and make them valuable adjuncts to their broker's site.
Selling Your Home
After finding the right agency and listing your home for sale, your agent will guide you through the steps that follow:
Carefully fill out the Seller's Disclosure of Property Condition addendum in a timely manner.
Prepare yourself and your home for the sale. The list below, A baker's dozen of the worst mistakes home sellers make, is your guide to a successful sale. Your agent should advise you about the specifics.
Start looking for an attorney. The counsel of an attorney is always advisable if you have any uncertainties about legal matters.
After the presentation of the offer, a few details need to be taken care of as soon as possible:
If you have any uncertainty about the legal obligations entailed by accepting an offer or making a counter offer, consult with an attorney before you sign.
When you accept an offer or a buyer accepts a counter offer, you will likely have a few important tasks to perform that require timely action. These may include:
Securing a new copy of the Home Owners Association Covenants and Restrictions.
Ordering a survey.
Coordinating with the appraiser and home inspector hired by the buyer.
A Baker's Dozen+ of the Worst Mistakes Home Sellers Make
Deciding to sell by owner (FSBO)—Some sellers are sophisticated and objective enough to optimize their selling experience, but they pay for what they get with their time and foregone pleasures and opportunities in addition to advertising expenses. Many eventually list with a broker after giving up—or end up netting less than they could had they listed with a broker (see the FSBO Info page).
FSBOs need first to put ego aside, and ask whether they will encounter buyers who don't know they are trying to save the broker's commission! Next, they should ask whether they have the resources available to effectively market their home.
The Internet and all those FSBO Web sites are likely not the advantage that sellers may be led to believe they are. Click here for the low-down on what you get from a FSBO dot com and what it could cost you.
Selecting the wrong agent—The shape, size, smooth complexion, winning smile and a gregarious personality may matter in some relationships, but none of these citeria will help you find the agent who will best serve your interests. Review agai the information above under the heading, "Selecting the Right Agency," to make sure your get this right. It can make a difference of thousands of dollars and months of frustration when selling your home.
Not becoming as informed as possible—Knowledge empowers, and learning as much as you can is in your best interest. Magazines, books and the Internet abound with helpful information for home sellers—and your agent and other professionals are important sources of information. Direct your legal questions to an attorney, your questions about taxes to an accountant and so on.
Setting an unrealistic price for your home—You can rarely get back the full cost of a swimming pool or other improvements and upgrades that are not "usual" for homes in your neighborhood.
Even improvements that are common in your neighborhood, like a converted garage, will not likely bring the same value per square foot of an otherwise comparable home with a garage.
Nor is it advisable to set your list price below market. Your agent will use the same methodology in determining the market value for your home that an appraiser uses, and will want to maximize their income from its sale. This means that the price the agent recommends will be as high as the market will likely bear. Take your agent's advice, and set your price to compete with other homes in your neighborhood.
Here is some more info about pricing. Note that this info overlooks the single most important motivation of the agent who is "buying a listing"—a For Sale sign is the best source of sales leads an agency has. For Sale signs cost less and generate more calls than any other exposure to the market that is available to a broker.
Not detaching yourself emotionally from the property—This can be very difficult, because your house is your home.
Don't let emotional factors affect your objectivity. You can't take every part of the house with you, but you can take the molding on the utility room door that you never painted, the one where you measured your children's growth, if it helps you let go. Putting it up in your new house may also make it feel more like home.
Consider the strategies that your agent mentioned and review your expectations. Then discuss your expectations with your spouse to be sure that you each have the same expectations. Disagreement over the terms of an offer at the time it is presented can result in making the wrong decision.
Not getting the property ready for showing—Does the house need a "spring cleaning," or painting, inside or outside? Is there a threadbare rut in the traffic way of your carpet, or damaged or discolored tile in the kitchen? Do the bathrooms need re-caulking? Does the house smell like your "best friend" or is it filled with smoking odors?
Get the house "spic and span" and make sure there are no lingering odors.
Consider whether any repairs that are not functionally necessary may significantly affect the appearance of your home, and weigh the pros and cons of each factor that may elicit a negative reaction from a prospective buyer.
Discuss the pros and cons of any remodeling with your agent. As can be seen on RemodelingOnline, remodeling seldom returns the full investment, but it can often mean the difference between selling and not selling when it si called for.
If you decide against replacing a worn carpet etc., ask your agent to get feedback from the agents who show your home.
And don't overlook the lawn and landscaping—clean up anything unsightly, put away the lawn equipment, keep the lawn mowed and seed the bare spots at the very least.
Click here for more specific recommendations, and here for yet more important considerations.
Not asking your agent to get feedback from the agents who show your home—Have you truly done everything possible to make your home presentable to a prospective buyer? Getting feedback will help answer this question and more.
Not getting the clutter out of the way and depersonalizing your home—A lifetime's accumulation of treasure can reduce that critical sense of spaciousness that a prospective buyer needs in order to imagine how their belongings will fit into your home. Even those personal touches that make your house your home matter. Family pictures and other personal artifacts can also detract from the buyer's ability to picture themselves in the home, whether cluttered or not.
Consider renting storage space where you can temporarily keep your treasures.
Click here for some more extensive recommendations.
Getting offended by an offer from an overzealous buyer—Many buyers have unrealistic expectations, and others are just fishing for the best deal. When an offer comes in that offends you for these reasons—or because the terms call for undoing something you did and in which you take great pride—remember that selling the home under the best possible terms is your objective. Make a counter offer that more nearly meets your expectations—and get ready for more give and take.
Interjecting an inconvenience for a prospective buyer—Try to recall your home buying experience. Despite all the rewards, wasn't it a long and tedious experience that was filled with anxious moments?
Putting off a showing because it is inconvenient for you puts you at risk of losing the sale. Moreover, number 10 below explains why you should not be there, and the following addresses the worst inconvenience a seller risks:
Refusing to allow your agent to put a lock-box on your property—If your agent must open your home to show it, and arrives late for a showing, it may not be shown. It happens! There are agents who will not show properties without lock-boxes as well. You will have demonstrated a lack of cooperation with your agent that suggests a generally uncooperative nature.
Allowing a buyer to engage you in conversation—You may either lose your objectivity, because the buyers are such a nice couple, or you may innocently say exactly the wrong thing. Perhaps even more importantly, the buyer's agent needs to focus on the buyer's reactions and impressions if they are to do their best to sell your home—and they need to be able to talk freely and openly with their client. If you are aware of an appointed showing, try to be away from your home at the appointed time—and drive around the block a few times if you see that the buyer is still there when you return.
Not removing potentially offensive material from sight—If you are a history or American Studies professor, and researching contemporary racist literature, don't leave it sitting on top of your desk. A prospective buyer may not be aware of your reasons for possessing the material. If your teenage son or daughter is into "Gothica," you may want to repaint any black walls and remove the "Ozzie" posters, pentagrams and dead rodent collection too.
Not telling buyers who "jump" the sign to contact your agent—Some buyers will knock on your door instead of contacting your agent to arrange a showing on your home. The best thing to do is tell them that the terms of your listing agreement require that you refer them to the agency, and have a well rehearsed excuse ready for not having the time to talk to them when they start asking questions. If they are legitimate prospects, they will play by the rules. If not, you have probably not lost anything.
Trying to conceal a defect that you are aware of—If the problem is a major structural defect, you are risking a potential suit for triple the damages, ugh! Disclose every known major defect up front, whether it's a latent defect or not. If it's an oil stain in the living room carpet left behind when you overhauled your Harley, don't try to cover it with a throw rug—some buyers and any good buyer's agent will look under it. You will likely need to offer some allowances for the buyer in the listing agreement for things of this nature if you don't take care of them up front.
Radon Gas
Over about the last decade, the issue of Radon gas infiltration has become a concern that is becoming increasingly addressed in real estate transactions. Many home inspectors now test homes for Radon gas, and you may find it necessary to pay the cost of mitigating the problem.
Settlement Costs (Seller's Closing Costs)
Much of the online information about settlement costs suggests that they are "typical"—not so. They may be thought of as customary, but customs vary widely from state to state—and even within a state. The following information is tailored therefore for the San Antonio market.
What are typical settlement costs? It is important, especially for a seller, to appreciate that settlement costs are negotiable, like all matters related to real estate transactions. Don't be surprized therefore if a buyer submits an offer that asks you to pay some portion of their closing costs. More importantly, don't allow yourself to be put off by such an offer—they will have strengthened your bargaining position by doing so. Again, I prefer to reserve the details about this advantage for my clients.
You also need to be prepared for the fact that settlement costs in Texas are among the highest in the nation—the second highest in fact! Here's the "customary" breakdown, including some of the costs you might expect a buyer to ask you to bear:
The Title Policy is normally paid by seller, but may be paid by buyer. Often on new homes, the buyer pays for the title policy. When calculating our net proceeds, refer to this chart, to determine the cost of Title Insurance (provided by the Texas Department of Insurance).
Click the link below to download closing costs worksheets for buyer and seller, as well as the Department of Housing and Urban Development pamphlet, Buying Your Home: Settlement Costs and Helpful Information. The download is a compressed .zip file that contains each of the documents in PDF format. closing costs.zip (454 KB)
