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With over five million homes sold
every year it all comes down to one
thing - getting the most favorable deal
with as little headache as possible.
With more and more disclosure statements
and transactions required, home selling
is becoming a more complicated business
than in the past. At
homefloridarealty.net our agents want
the best for our clients. Today real
estate market is very competitive and
that's why we staff only experienced
agents that are trained in financing,
negotiations, the real estate markets
and closing.
Are You Ready?
The seller should start getting
prepared several months before the house
is available on the market. Put yourself
in the shoes of a prospective buyer and
take a step back to determine what needs
to be done. For example painting,
repairs, a good cleanup, and
landscaping. Complete your project to be
as visually stimulating as possible to
your prospects. You want to show a home
that looks appealing and maximizes as
much space as possible.
During this phase of your preparation
work also ask yourself why you want to
sell. Are you looking for a different
community? Do you need more space? Be
sure to discuss the needs that are most
important to you with your realtor.
When Should You Sell?
The summer seems to be the most
favorable time because parents want to
enroll their children for school prior
to its start (generally August). So, for
the most part, most homes are more
available during the summer months.
How Do You Improve the Value of Your
Home?
For the most part, buyers want to
purchase the least expensive home in the
most desirable neighborhood that they
can afford. As far as improvements are
concerned you want a home that fits in
with the neighborhood without being
“over improved”. For example: if most of
the homes in a neighborhood have three
bedrooms and two baths - a house with
five bedrooms and multiple bathrooms
(selling at a much higher price) more
than likely would be more challenging to
sell. So stick with home improvements
that help to “show” your home like
wallpaper, landscaping, and paint. Also,
be sure that all appliances are in good
working condition to ensure you get a
better price on the home.
“Setting the Stage” For Selling Your
Home
A good first impression could be the
difference between receiving serious
offers or your house just “sitting” on
the market. You need to make the best
“first impression” as possible so here
are some tips for savvy home sellers!
- Curb Appeal
-The outside of your house is
obviously the first impression a
buyer will have so keep the grass
green, trees trimmed and lawn mowed.
A nice manicured lawn is a must,
keeping the plants blooming but the
gardening equipment out of sight!
Keep the porch and sidewalks well
swept and any exterior lighting on
at night.
- Odor Free Home -
Most of your potential buyers will
be very sensitive to offensive odors
so it's a nice touch to add flowers
or air fresheners to your home to
keep the air smelling clean. It's a
good idea to shampoo carpets (and
pets!), change kitty litter,
recycling bins, trash cans and ash
trays. You could even bake a pie for
an added fragrant touch!
- Clean the Clutter -
Get rid of anything in your home you
don't use even if you have to store
it in the garage. A buyer will not
buy a home that they can not see!
Too much clutter, crowed closets and
countertops overflowing with “stuff”
will not allow a potential buyer to
see what they are buying.
- Make Necessary Repairs
- Fix all of the minor
repairs that you've put off for
quite some time because a prospect
will notice. Fix burned out light
bulbs, windows painted shut, leaky
faucets and appliances not in
working condition. These repairs
seem petty but to an outsider this
means you haven't taken good care of
your home.
- Introduce Accessories
- Set the table with your
fine china, hang out your “good”
towels and make the spare bed. Hang
up fresh curtains and put logs in
the fireplace. Get creative and
leave a nice stimulating visual for
your potential buyers to leave with.
- Get a Buyer's Eye-View -
Take a step back and pretend you are
looking at your home for the first
time. What do you see? Is it
well-maintained? Does it seem
comfortable and inviting? Would you
buy this home? Your answer should
definitely be yes!
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homefloridarealty.net is a good
source to use when looking for a
realtor. Try to find an experienced
local real estate agent to assist you
with the sale of your home. Even though
over two million people in the United
States are licensed to sell real estate,
only one million belong to the National
Association of Realtors (NARS). NARS is
known for its strict code of ethics and
have access to classes, seminars and
opportunities in certifications.
How Do You Choose a Realtor?
- Search on homefloridarealty.net
- Use local real estate magazines
and newspapers
- Recommendations from past
sellers
- Check the classifieds in your
local newspaper
Here is a list of questions to ask
when interviewing your realtor....
- What type of representation do
you provide (there are various types
of representation like representing
the buyer or seller or facilitating
the transaction as a neutral party,
etc.)?
- What services do you offer?
- How will you market my home?
- What is your fee?
- What happens if another realtor
finds a purchaser?
- How long do you want to list
your home?
What to Expect When Working With a
Realtor
Your realtor should keep you in the
step by step process during the selling
process. Written offers are not
acceptable because they generally cannot
be enforced. Your real estate agent,
with assistance from a qualified
attorney, is trained to provide the
foundation for an actionable written
offer.
The Seller Listing Agreement
A listing contract is a binding
written contract that varies state to
state and you may want to consult with
an attorney before signing. Here are
some basic terms to take into
consideration:
MLS - A listing
agreement allows your agent to list your
home in a Multiple Listing Service
unless you have serious privacy
concerns. The listing helps your agent
to market your home to a wide range of
potential buyers; the public does not
have access to this list.
Terms of Agreement -
A longer term is beneficial to the agent
because this gives him/her ample time to
find a buyer for your home but if homes
are selling quickly then you don't want
to commit yourself to this agent for
more than a few months.
Lockbox - A lockbox
is a small box attached to your front
door containing a key to the property.
Any agent who has access to this box can
use a key or combination to show the
property to a prospective buyer.
Commission - Most
areas have a percentage that agents
expect to receive although commission is
negotiable. This percentage is usually
6% but some will accept 5% and some will
ask for 7%. Keep in mind a higher
percentage will give the agent an
incentive to market and sell your home
quicker.
Why Use a Realtor When Selling?
The most important factors of selling
your home is the best price, speed, and
little or no hassle. Coming to a
conclusion of a reasonable asking price
is generally the first step in selling
your home. Your real estate agent should
keep you up to date in terms and
conditions of competing properties,
what's happening in the marketplace and
financing.
*Marketing
Exposing your property to other
agents and to the public is key to
the salability of your home so
marketing and advertising is very
important. Your media choice depends
on the property and specific market.
However, The National Association of
Realtors reveals that 82% of real
estate sales are gained through
previous clients, referrals, friends
and family personal contacts, and
agent contacts.
*Negotiating
The negotiation process is
basically the same for both buyers
and sellers. The agent can assist in
writing a legally binding agreement
that can result in a win-win
transaction.
*Monitoring,
Renegotiating, and Closing
Many questions will arise between
the initial sales agreement and
closing financing a glitch in the
title or repairs. There is a lot of
paperwork involved so this can be an
overwhelming process for many
sellers. Your realtor is a trained
expert who can help to resolve these
issues in an objective manner.
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Market conditions and condition rates
are a two of many factors determining
how much money you can get for your
home. During the time your property is
being marketed is when you will want to
get the best possible price for your
home. Let's break that down. The art of
selling a home is not only marketing,
but part science, and part negotiation.
In real estate there is no black and
white every transaction is different so
because of this you must do as possible
to prepare your home for sale and hire
the best possible agent.
What is Your Home Worth?
Somewhere between the price the
sellers would like to get and the value
the buyers would like to offer is a
point of agreement resulting in a final
sale. Here are several important points
when considering home value:
- Owner needs - If
the home needs to be sold “quickly” this
implies to the buyer that the seller
will sell for a lower price and they may
be right!
- Sale price is dependent on
supply and demand - Living in a
community with a growing job base and
limited housing supply then sale prices
will rise. Quite the contrary if the
community has a low job rate (or losing
jobs) and people are leaving the are
then that's what is called a buyer's
market.
- Local sale prices determine
the price of your home. The
cost of one home in your area might have
a completely different value in another.
Who Can Help?
Experienced realtors at
homefloridarealty.net are active and
experienced in the local marketplace and
can provide valuable assistance in
adjusting a proper sale price for your
home, marketing/advertising,
negotiation, and closing.
How Much is Your House Really Worth?
The value of your home make an
enormous difference when making final
financial decisions such as estimating
your annual lproperty tax bill,
refinancing your mortgage and borrowing
against your equity. What you paid for
your house originally versus the current
market is not pertinent the the current
value. It is wise to accrue information
from various sources and compare rather
than using just one approach when
determining the value of your home.
Start with a search online many web
sites offer free home valuation
information. This way you can compare
with nearby homes and market activity
data with a click of a finger. Second,
call more than one realtor. He or she
will able to give you an estimate of the
value of your home given its size and
condition versus the local market
condition. Another good idea is to
attend neighborhood open houses. This
gives you an opportunity to talk with
professionals about local real estate.
Hiring a professional appraiser may cost
a few hundred dollars but it may be
worth it when making a financial
decision.
How to Price Your Home
Determining a sale price for your
home is not as simple as it seems. Here
are some strategies to help you to
conclude how much your home is really
worth:
Take market conditions into
consideration. There are many factors to
consider when determining market
conditions. Is it a cold or hot economy?
Are you selling your house during
home-buying season? Are rates
attractive? These are questions to ask
yourself and do the research. Going to
open houses is a good way to make an
assessment of how other homes compare to
yours.
Don't let your personal views get in
the way. Remember, a potential buyer dos
not care about your memorable moments or
how much you paid for the home
originally. They are not interested how
much you invested in landscaping,
painting, or the hardwood floors.
Calculate the price per foot even
though this isn't the sole determinant
of the asking price of the home. It can,
however, be helpful when coming up with
a starting point.
Sweeten the terms in the transaction.
If you are willing to close escrow
quickly most buyers will jump in. Can
you (the seller) offer seller-financing?
A lease-option can sometimes help
first-time buyers. The more flexible you
can be in your terms the more successful
you will be when pricing your home to
sell.
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Every home is unique in the real
estate market. Interest rates are
constantly changing and buyers are
always looking for new homes to buy.
Because of these factors (and many
others) it takes skillful marketing
strategies designed specifically for
various market conditions. Once your
home is listed it will more than likely
be listed with MLS so other brokers with
now have access to your information. A
realtor's work is usually quiet and
unseen but very important. He/she may be
marketing your property through web
postings, open-house, and new listing
announcements. Radio, television and
real estate guide are other good sources
of marketing used by real estate agents.
Some even use brochure boxes or “for
sale” signs to advertise your property.
How to Hold an Open-House
Open houses are different in
different communities, some areas don't
even use the open-house technique. In
areas where they are common, the broker
advertises that the open-house will be
held for a certain time period (1-5 on
Saturday) . The broker generally hosts
the function while the sellers leave the
property during this time. Children and
pets should not be on the premises
during the open-house. Here, he/she
provides information for the guests and
maintains a log of attendance. Once your
open-house is scheduled be sure to
notify your neighbors. This warns them
in advance of extra traffic and also
allows them to take a look at your
property themselves. Who knows, they may
have a friend the want to have take a
look at your house! In preparation for
the open-house:
- Hang fresh towels in the
bathroom
- Set the dining room table with
your best dishes
- Be sure the air is fragrant
- Light lamps
- Pull back the drapes
- Light the fireplace if you have
once
How to Show Your Home Online
The internet is a very modern source
for advertising your home and plays
important roles in this process. Not
only can you view real state online but
it contains information on local
schools, recent home sale prices, video
tours and model forms. The internet is
also a good way to communicate through
e-mails and instant messaging. This way
agents and consumers can share
information and questions with a
quickness.
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Selling one's home is an important
event considering the change and
transition. Also, a lot of money is
involved in the process! Going from the
know to the unknown is a big step which
can include, new jobs, and new friends.
On top of knowing all of this there is
still lots of documents to sign and
issues to be negotiated! The sale of
your home is a very delicate process and
needs to be done right. Be sure to
prepare you home properly and educate
yourself in the market to be able to
weigh all of your options.
What is an Acceptable Offer?
Although it would be nice if there
were a long line of buyers at your front
door trying to out bid each other on
your home - its not reality. There is a
balance between the buyers and the
sellers. Here is a list of factors
determining whether a buyer's offer is
acceptable:
- What if there are no other
offers?
- What if there are multiple
offers?
- Is the offer near or at asking
price?
- Is there an alternative to the
buyer's offer?
- How long do you have to wait for
the offers?
- Has the buyer accepted asking
price?
Your real estate agent will be
helpful in determining what is an
acceptable offer according to your
needs. The agent will take into
consideration the marketplace options
and carefully review the offers making a
determination of what is acceptable.
What is a Counter-Offer?
For the most part, once you have made
your home available for sale you are
making an offer to buyers. For a certain
dollar amount and with some terms you
can acquire the home and the buyers have
several options. The buyers can be a.)
not interested at all b.)we'll buy it on
the seller's terms c.) interested but
here is our counter-offer.
A counter-offer is merely a new offer,
one that the buyer deems more fit. And
the seller has three options as did the
buyer a.) accept the offer b.) turn down
the offer c.) make another
counter-offer! This is the part where
negotiation comes in.
How to Negotiate
Some believe that in the outcome of a
negotiation there is a winner and there
is a loser. But others believe in a
“win-win” situation where each party
feels like they came out happy with what
they wanted but this action takes
compromise. Each party should be treated
with respect and owners should never
lose sight of their baseline transaction
requirements or their best interest.
These are rules to live by when
negotiating with the other party and
your agent.
The Bottom Line on Contract
Negotiations
- What happens if either side
breaches the contract?
- What are the estimated
transaction costs and who will pay
for what?
- Is there a mortgage financing
contingency and how specific is it?
- What appliance, furniture or
fixtures are being sold with the
property?
- How much money is the buyer
putting into escrow and how soon?
Negotiation Terms and Conditions
There is a lot involved in a real
estate purchase agreement and the terms
and conditions need to be at a level
that is up to par or you won't want to
accept the conditions. On a whole, the
contract is filled with a lot of legal
terminology, its complicated and packed
full of information. It is important
that you take your time and read it word
for word and thoroughly. Have your
lawyer or agent answer any and all of
your questions regarding this document.
Remember to be flexible with your
conditions but keep in mind these five
points that need attention:
- If repairs are needed, who is
responsible for paying for them to
be fixed after inspection?
- Will a home warranty plan be
purchased?
- What are the cutoff dates for
inspection approvals and reports?
- When is escrow expected to
close?
- Is the seller making any
warranties regarding the condition
of the property? (roof, central
heating, etc.)
Financing Pointers
What if a buyer wants you, the
seller, to finance part of the purchase
price by “carrying back” a loan? The
answer to this lies in your own
financial situation. This is a good idea
for a seller who wants a streamline of
money over a period of time rather than
one lump sum. If this is an option for
you - you should consider these factors
first:
- Call your accountant or attorney
- Hire a servicer
- Think like a banker
- Set a shorter term
- Get a contingency in writing
- Consider the collateral
Picking the Best Offer
Currently we live in a strong real
estate market so sellers can expect to
receive many offers for the home. This
is a good example of economic realities
that appear when the supply of homes is
limited and the demand for homes is
strong. The good thing about this for
sellers is that they can push up the
price of the home and create a bidding
war. Being prepared for this situation
will enable you to make choice terms for
the sale of your house. You don't even
necesarily have to pick the buyer with
the highest offer. That one might not
have the terms you want or be as
qualified as others. Being greedy can
backfire!
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Some of the most complex part of the
real estate transactions begin after
sale agreement has been signed and the
selling process is complete. The sale
agreement contains a purchase price for
the property but also the terms and
conditions. More and more an inspection
is required by a trained or independent
observer. A lot of times the contract
even depends on the ability of a buyer
to obtain financing (which is why most
sellers obtain a pre approval letter
from the lender). Also, the lenders have
requirements of their own before the
loan is granted such as title insurance
to protect against title errors, termite
inspections, appraisals and surveys.
Generally, the seller's agent will help
prepare him/her ahead for the closing.
When Should You Close?
Technically, with automation now
available, it is possible to close
within a week. Just keep in mind that
arranging financing, financing, locating
replacement housing, contacting movers,
obtaining appraisals, inspections and
the actual moving itself is very time
consuming. Contrary, the problem with
closing past too many days is that loan
rates are difficult to lock in and if
mortgage rates go up the buyer may no
longer be able to afford the mortgage.
So with all things considered, most
homes close 30 to 45 days after the sale
agreement has been signed.
What Happens at Closing?
Closing is also known as escrow or
settlement depending on the area. This
is meeting where the agent takes money
from the buyers, pays money to the
owner, ensures that the purchaser's
title and property liens are properly
recorded. Any final “adjustments” can be
made at this meeting. The agent is then
responsible for reviewing the sale
agreement determining what payments and
credits the owner should receive from
the buyer and transaction costs are paid
such as taxes and title searches.
Your Home Inspection
The buyer had set an appointment for
the inspector to arrive to inspect he
condition of your home and how well
you've maintained it over the years.
Don't be afraid of what he/she may
uncover, with disclosure laws and
customary real estate practices, here
are some steps to take to help the
inspection run smoothly.
Don't block living areas in your
room. If the inspector cannot enter a
room for inspection it will be noted in
the report and the buyer may question
it.
Be courteous. The inspector is a paid
professional giving a fair assessment of
the property - he's not there to find
everything wrong with the property. Tip:
Don't be late for the appointment with
the inspector and keep in mind it may be
a two hour process.
Leave the premises. Don't feel like
to need to be home for the inspection
because you don't. Your real estate
agent should be familiar with your home
and can act as your representative. Most
agents prefer that the seller not be
present.
Don't follow the inspector around
making comments. Inspectors do not want
to be followed around while you try to
explain every detail and aspect of the
home. The time for this is once you've
reviewed a copy of the report.
Make agreed upon repairs. Some buyers
ask the inspector to “okay” any repairs
that you agree to fix. The sooner you
accomplish this the better. If you wait
till the last minute the buyer will
still have those items reinspected and
this could delay escrow and the closing.
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From the smallest of homes to the
largest, every home contains a lot of
furniture, kitchen items, clothes, and a
lot of personal items. If you are moving
a short distance you may want to do the
move yourself but it may be worthwhile
to hire a professional moving company if
you are going a further distance. Your
real estate agent at
homefloridarealty.net can recommend
favorable moving companies to assist you
in this process. Try to weed through all
of your furniture and throw away any
unwanted items. This will minimize the
weight of your goods thus minimizing the
price for your shipping! You could sell
any excess goods or donate them to a
local group or organization. Some will
even come to your home to take it away
for you. Remember to fill out the forms
at the U.S. Postal Services for a
forwarding address and your utility
companies need to be aware so they can
end your service. Ask them about any
deposits that should be returned to you.
How Do You Plan To Move?
Once you have sold your home you
should start planning your move. Some of
these activities can actually assist you
with the moving process! Like cleaning
out basements, attics, closets, and
weeding. If you do this now there will
be less to do when the home is finally
under contract. Your planning will be
determined by a number of things. For
example, if you are moving a long
distance you will probably be using an
interstate mover and will need a large
van. If you are moving internationally
you will have to contact the embassy in
Washington D.C. for information. Keep in
mind certain items may not be allowed in
other countries. Inquire about customs
duties and taxes and protocols. If you
are moving locally (and moving yourself)
don't forget tape, peanuts, blankets and
extra padding . Mark all of your boxes
to make the unloading easier.
Who Should You Use?
There are a number of factors to
consider when deciding who to use for
your move. Of course money is one of
those factors. You'll want to spend as
little as possible but do not let this
be the determining factor of who you
chose, this could be a mistake. Be sure
the moving company owns the proper
equipment, the movers are trained and
experienced to do a good job. Always
confirm their credentials. Are they
licensed and bonded (each state is
different)? Do their workman have
workman's comp insurance? Get a moving
estimate in writing. Some organizations
offer discounts.
Get a Checklist
Checklists are organized and make a
job easier. Moving is an enormous job so
here are some items to consider:
- Keep your laptop and modem
easily accessible during the move.
This allows you to still be able to
connect to personal and business
e-mails.
- Keep address books nearby in
case you need help.
- Make sure that historic or
breakable/valuable items are handled
and packed properly.
- If your children are also
traveling be sure to include toys,
games, pillows and extra blankets.
- Count the number of boxes when
they arrive. Check them off of the
list that you made earlier, you can
even check them off according to
contents or the names on the box.
- Medicines should be readily
available during the move.
- If you are moving any type of
distance be sure to have enough
cash/credit to cover food, lodging,
transportation and travel expenses.
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