Frequently Asked Questions about
Selling
If you're ready to sell your home or small income
property and want professional help, or you simply want some answers about the process,
you've come to the right place. Residential was created with you in mind. This section
provides questions and answers about selling your home. If you'd like some personal
attention please contact us.
Can I sell my house myself?
Many people believe they can save a considerable amount
of money by selling on their own by not having to pay a commission. Occasionally, friends
or relatives sometimes get through the process with seemingly little trouble. Right now,
over 10% of American homeowners handle their own sales. But in order to join the ranks of
the successful ones, you need to realistically assess exactly what's involved. You must
price your house accurately, determining whether or not a buyer is qualified, create
and pay for your own advertising, familiarizing yourself
with enough basic real estate regulations to understand (and possibly even prepare) a real
estate contract, and coordinate the details of the closing.
The greatest downsides are: a) the fact your house is
only on the market when you're home, and b) that mistakes in selling may cost you the
money you're trying to save.
The best reason for working with a real estate broker is
the enormous amount of information they have at their disposal; information that can help
make your house sell faster and easier. Professionals know about market trends, houses in
your neighborhood, and the people most likely to buy there. They also know how to reach
the largest number of people who may be interested in your house, and are trained in areas
like screening potential buyers and most importantly, negotiations. Finally, they're
always "on-call," and willing to do the things most of us hate: working on the
weekends, answering the phone at all hours, and always being polite about it.
What makes a house sell?
This entire site could be devoted to answering this
question. But to be as concise as possible, a successful sale requires that you
concentrate on five considerations: your price, terms, condition, location, and exposure.
Since you can't control all of them, you may have to overcompensate in one or more areas
to offset a competitive disadvantage in another.
When is the best time to list a house for sale?
List your property when you’re sure you want to
sell.
If you want to get the best price for your house, the
key is to give yourself as much time as possible. More time means more potential buyers,
hopefully resulting in more offers.
Is there any seasonality to the market?
Peak selling seasons vary in different areas of the
country, and weather has a lot to do with it. Late spring through early fall are the prime
listing times in San Diego because houses tend to "show" better in these months
because individuals are experiencing no "holiday season" expenses.
Keep in mind that there are also more houses on the
market during these times, so you'll have more competition. So while there is seasonality
in the real estate market, it should not dominate your decision on when to sell.
How long should it take to sell?
Average listing times vary from 30 to 180 days; of
course, price, terms, condition, location and exposure play an even greater role in the
time it should take to sell. Selling in any market is easier if you keep time on your
side. Most professionals will tell you that allowing yourself at least six months will put
you in a position to get a better return from their marketing efforts.
What if I can't sell my old house before we have
to move?
This situation can arise for any number of reasons. For
instance, getting the job promotion you've been waiting for may mean having to relocate
very quickly. Another example: you finally find your "dream home," and need to
get it under contract before it sells to another buyer. Whatever the reason, don't panic.
You have some viable alternatives to the potential nightmare of double mortgage payments.
If you don't have to sell in order to buy a new home,
renting is one option to think about. Consider the advantages and disadvantages of renting
your old house. Please see the Property Management section in our site. If you're being
transferred, you may be able to obtain a short-term rental while you're becoming familiar
with the new area. Either way, a local broker can usually help, by advising you how much
you can expect to pay for rent in your new city, or what you need to charge to cover your
mortgage payments and the other costs you'll entail as a landlord.
How do I price my house?
Price your home realistically. The real estate market is
a place to make money but you cannot over price your home. Home prices in the beach areas
have been increasing as of late but if you really want to sell your property it needs to
be priced according to current market conditions. You just have to be realistic about its
value, and price it accordingly. A good place to start is by determining the fair market
value.
What is "fair market value," and how do I
determine mine?
Simply put, the fair market value of a house is the
highest price an informed buyer will pay, assuming there is no unusual pressure to
complete the purchase. It is usually not the asking price. To get an estimate of fair
market value, contact us and ask for a competitive market analysis of your house. We will
provide this service free of any charge, without obligation.
The analysis will give you a realistic figure based on
the most salient points of the local real estate market. It will provide information about
recent sales of similar houses, including how much they sold for and how long they took to
sell. The broker's price opinion is very helpful in determining the right asking price.
What's the difference between fair market value and
asking price?
Generally speaking, the owner's asking price is the
advertised price of a house when it goes on the market. Typically set slightly higher than
fair market value. You, as a seller, should assume that some negotiation will be necessary
to reach an agreement with a buyer. In most cases, the agent who presents you with the
results of your CMA will be willing to help you establish a competitive pricing strategy.
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Who can help me determine the right asking price?
Real estate sales agents suggest asking prices based on
a wide array of information you may not have readily available. Recent listings and
selling prices of houses in your neighborhood are great comps. Another way is to have your
home professionally appraised.
Next, establish clear priorities. If you had to choose,
are you more concerned with selling quickly, or getting the most money possible?
Third-party views also help out. If you start thinking
of you’re house as a commodity you can determine its positive and negative selling
points. You can then determine the most realistic, fair, competitive price.
How flexible should I be about the asking price?
Most buyers leave room for negotiation when they make an
offer. A certain degree of flexibility is usually called for on the part of both the buyer
and seller. While it is ultimately your decision to accept or reject an offer, or present
a counter-offer, a good agent can be of great assistance to you during the negotiating
process. In fact, negotiation is one of the most valuable skills Residential can offer
you. As negotiations proceed -- whether in writing, face-to-face, or by phone -- we will
inform you of your options before responding to offers from the buyer.
Should I fix my house up before it goes on the
market?
Unless your house is nearly new, chances are you'll want
to do some work to get it ready to market. The type and amount of work depends largely on
the price you're asking, the time you have to sell, and of course, the present condition
of the house.
If you're in a hurry to sell, do the "little
things" that make your house look better from the outside and show better inside.
What is "curb appeal," and how do I create
it?
Curb appeal is the common real estate term for
everything prospective buyers see from the street that might make them want to investigate
further. Improving curb appeal is critical to generating traffic. While it does take time,
it needn't be difficult or expensive, provided you keep two key words in mind: neat and
neutral.
Neatness sells. New paint, an immaculate lawn,
picture-perfect shrubbery, a newly sealed driveway, potted plants at the front door -- put
them all together, and drive-by shoppers will probably want to see the rest of the house.
Neutrality helps. If you're going to repaint, stick to
light, neutral colors. Keep the yard free of gardening tools and the kids' toys. Remember,
when a family looks at a house, they're trying to paint a picture of what it would be like
as their home. You want to give them as clean a canvas as possible. By keeping it neutral
you won’t turn away prospective buyers because they do not like your look.
What should I do to make the house show better?
First, make your house look as clean and spacious as
possible. Prospective Buyers look behind doors, in closets and crawlspaces, as well as in
bedrooms and bathrooms. Get rid of all the clutter; have that garage sale and haul away
the leftovers.
After you've cleaned, try to correct any cosmetic flaws
you've noticed. Paint where needed, re-grout tiles and replace worn-out carpets. Install
new faucets, fixtures and cabinet doorknobs and handles if dated.
Finally, as with the outside of your house, try to make
it easy for prospective buyers to imagine your house as their home. Clear as much from
your walls, shelves, and countertops as you can. Give your prospects plenty of room to
dream.
Should I make any major home improvements?
Certain home improvements that are useful to almost
everyone have been proven to add value and/or speed the sale of houses. These include
adding central air conditioning to the heating system, building a deck or patio, basement
finishing, some kitchen remodeling (updating colors on cabinets, countertops, appliances,
panels, etc.), and new floor and/or wall coverings, especially in bathrooms. Improvements
that return less than what they cost are generally items that appeal to personal tastes,
like fireplaces, wet bars, and swimming pools.
The challenge that comes with any home improvement
designed to help sell your house is re-cooping your investment. There's always the risk of
over-improving your house; spending more money on improvements then they will return.
So how much is too much? Professional renovators have
found that, no matter how much you improve any given house, you're unlikely to sell it for
more than 15% above the median price of other houses in the neighborhood, whether you do
$1,000 worth of work or $50,000. That's why you might want to ask your agent's opinion
about the viability of recouping the cost of any major renovation you have in mind before
you start the work.
Should I do the work myself?
If you have the time and talent, do-it-yourself
improvements are the most cost-effective way to go. Just make sure you don't tackle
something you can't handle -- this is no time for "on-the-job training!" If
you're not experienced, it may be worth calling in a professional.
Larger jobs involving mechanical systems (heating,
electrical, plumbing, etc.) or work that must meet local building codes are another story.
If you or your handyman know exactly what you're doing it's still not a good idea to
engage in this type of work unless you're licensed to do so. Your efforts could make you
responsible for more than you realize if something you worked on goes wrong after you
sell.
Am I liable for repairs after I sell?
Failure of a seller to disclose defects in a property
prior to sale can lead to lawsuits and seller’s liability. One way to try and prevent
this is to disclose, disclose, and disclose.
If the buyer's inspection reveals major problems with
your house's structure or mechanical systems (heating, electrical, plumbing, etc.), the
buyer may wish to negotiate the price downward on the basis of anticipated repair costs.
So even though the repairs won't be made until after the sale, practically speaking,
you'll be paying for them.
Sometimes, repairs may be required before the transfer
of title takes place. This is true in property sales that involve government financing.
(FHA/VA loans, for example).
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What about home warranties? Are they available to
sellers as well as buyers?
Home warranties are a great way to ease the mind of a
prospective buyer and it's easy to see why. After a buyer has invested substantial cash
savings in a down payment and closing costs, the last thing they want to worry about is
costly home repair. With the home warranty protection they don't have to. The warranty
offers protection for you and your buyer, it covers repair or replacement costs for
breakdowns to most major systems and built-in appliances for up to one year or more after
the date of closing. The cost for a seller is small and when you consider the possible
returns -- a quicker sale, a better chance of selling, and the peace of mind that comes
with knowing 24-hour emergency service is always just a phone call away -- it's hard to
imagine a better investment.
How do I reach the right potential buyers?
There was a time when selling a house was simple. Your
real estate agent would put a sign in the front yard, an ad in the paper, and wait. Today,
people are moving further and more frequently than they used to; it's not unusual for
upwardly mobile executives to relocate across the country more than once in a year. The
result is that the pool of potential buyers for your house is much larger and spread far
wider than ever before and the competition to reach them is fierce.
Choose a real estate company that offers sophisticated
marketing techniques to find the right buyer. Finding them, reaching them and persuading
them to buy your house over another has never been more important.
Virtually everything we've discussed up to this point,
pricing, home improvements, CMA’s and "For Sale" sign in the yard, is all
part of a marketing process that is put into motion when you decide to enlist the help of
a good broker.
What's MLS, and how does it help?
A multiple listing service is one innovation that makes
it easier for real estate brokers and agents to reach the largest number of prospective
buyers; dramatically increasing the exposure of a property.
Quite simply, it's a system under which participating
brokers agree to share commission on the sale of houses listed by any one of them. So, for
example, if you list your house with one broker and another broker actually sells it, they
share the commission. The advantage to you is clear; more people have an interest in
selling your house.
Over the years, the MLS concept has grown from a
strictly local sales tool into a powerful national marketing system. In San Diego County
today there is literally thousand of real estate brokers and agents currently using MLS.
How important is advertising?
Advertising remains as one of the most important
components of the marketing process. It's not as simple as it used to be, at least not in
the hands of a good broker. Many people don't realize how costly advertising can be: a
single ad listing your property run in local newspapers can cost anywhere up to several
hundred dollars. When adding photographs the price goes up!
What should we expect from an open house?
As another valuable part of the marketing process, the
open house offers prospective buyers the chance to view houses in a low-pressure,
"browsing" atmosphere. With that in mind, you shouldn't expect it to generate a
sale, at least not directly. What you should look for is traffic, and calls to your agent
for private showings in the days following the open house.
Open houses are always valuable, even if very few people
show up. Such a situation can indicate that the price is too high; it may also lead you to
look for ways to improve curb-appeal. Try not to draw your own conclusions -- your agent
will give you a full report on open house activity, and offer a professional assessment of
its results.
Agents often hold an open house for other agents shortly
after a house is listed. This event, usually held mid-week when real estate people can
give it their full attention, can be as important to your efforts as your listing in the
local MLS. The more professionals who see your house, the more prospects you're likely to
reach.
Should we try to avoid being at home when
the house is shown?
You should definitely plan to be out of the house during
any open house your agent has scheduled; the same goes for first showings to prospective
buyers. People often feel uncomfortable speaking candidly and asking questions in front of
current owners. You want them to feel as free as possible to picture your house as their
"dream home."
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Who actually sells my house -- a broker or an agent?
In legal terms, a real estate agent is an individual
trained and licensed to act for other people looking to buy or sell a piece of property.
While that definition applies to both brokers and agents, brokers are the ones permitted
to collect the fees and/or commissions for such work. The sales agent is employed and
compensated by the broker.
Will my agent be present at the closing?
Most real estate closings are handled by lenders, title
companies and in some cases attorneys. You may find that your agent is a valuable source
of information and counsel, especially if any last-minute problems arise.
Good agents are also extremely helpful in the days
immediately prior to the closing. They'll help you prepare by giving you a step-by-step
preview of the entire process and what will be expected of you. And they'll make certain
you bring all necessary documents and other information.
What makes a sales agent effective?
We like to think good training and experience make the
best agents. But the truth is, not every agent is right for every seller. And that's why
we suggest you follow this simple formula to help you decide whether a particular agent
will work well for you:
COMPETENCE + COMFORT =
CONFIDENCE
Competence: When you first meet with real estate agents, they'll do their
best to show you that they have what it takes to sell your house. Look for evidence that
their background is relevant to your needs -- someone whose portfolio includes success
with houses in your price range, preferably in your immediate neighborhood.
Comfort: The importance of being comfortable with your agent as a person
cannot be overstated. You're going to be dealing with this individual on a regular basis,
maybe for months, during a time that can be emotionally trying for you and your family.
Indeed, your agent may well become something of a family member, who shares in the
tension, anticipation, frustration, and ultimately the joy of selling your house.
Confidence: It takes a unique combination of Competence and Comfort to
inspire confidence. A homeowner needs to maintain peace of mind through the process of
selling their property. It's something we at Residential place high on are list of
priorities.
How do I find the agent that's right for me?
A good place to start is by talking to friends,
neighbors, and relatives; get recommendations from people you trust. Another way to find
an agent is to look in the immediate area where you are selling your property. Finding an
agent who knows your neighborhood is essential.
What if my agent doesn't produce?
Besides commission, the most important matter you
negotiate at the time of listing your house with a broker is the duration of the listing
agreement. Terms vary, but listing agreements are seldom for less than three months or
greater than one year.
So what if you find yourself dissatisfied midway through
a nine-month contract? Talk to your agent and the will probably release you from your
commitment.
Residential is sincerely
interested in helping make the experience of selling your home as smooth and easy as
possible. We are here for you to contact even if you're not ready to list your property.
If you simply have questions about the market or are wondering about current pricing or
mortgage trends or have any other real estate related questions contact
us for free professional advice.
