Pre-Listing Appointment
Prior to listing your home for sale, you may want to interview a few Realtors®. Doing so will not only give you more confidence in the Realtor® you select, but it should give you some important information about selling your home. When we visit your home, we want to answer any questions you have and leave you with a clear understanding of three basic areas:
· What areas of your home should be addressed to maximize overall buyer interest and minimize potential inspection issues? In making our recommendations, we always try to balance the positive impact the improvements will have with your ability (in terms of time, energy, and money) to make the improvements.
· What price should your home sell for in the current market? We will complete a Comparative Market Analysis which includes data from other recent sales to determine a recommended listing price and your likely selling price.
· Information about us including our approach to business, qualifications, track record, marketing expertise and plan, and services we provide.
Selecting a Realtor®
There are many factors to consider when selecting a Realtor®. One is simply the feeling you get during the initial interview; how well do they fit with your needs and style and how much confidence do they inspire. But don’t just rely on a good sales presentation. Be sure to check that the facts support the claims.
· Can the Realtor® show you their track record and how it’s superior to the competition?
· What is their marketing plan and can they show you how it’s better than the competition’s?
· What guarantee does the Realtor® offer?
· How many homes do they sell in a year?
· How do they rank within their office and within their industry?
· What is their level of education and experience?
· Do they hold a broker’s license or only a salespersons license?
· Is real estate their full-time occupation or just a part-time endeavor?
· Do they have a supporting staff and an extensive network of other professionals that you may rely on to get specific questions or issues addressed throughout the selling process?
· What commission do they charge and can they support the fee with facts and data? This is important from both standpoints; a commission can be too high, but a commission can also be too low. The former can cost you an unnecessary amount, but the latter can actually prevent your home from being sold.
· Do they have any violations or disciplinary actions on their record? Click here to check for violations or disciplinary actions. Once you look-up a licensee’s record, click on their name at the left side of the page to check for violations or disciplinary actions.
Preparing Your Home for Sale
Once you have decided on a Realtor®, you should focus on getting your home ready for sale. In our current market (which is much slower than previous years), you should be prepared to invest some time (and possibly some money) to make your home attractive to buyers. Even in this slower market, homes that show well, are priced appropriately, and have good locations will sell and often within a relatively short time. If any one of these factors (condition, price, location) is sub-par, however, it could lead to an extended time on market and an ultimately lower selling price.
Hopefully, your Realtor® has given you some good ideas on where you should focus your time, energy, and money. Rely on his/her expertise as you want to spend your resources on the areas of your home that will matter most to buyers and not waste those resources on areas that are likely to be overlooked anyway.
Even if you do not have the resources to paint, replace carpets, or make other physical upgrades, there are still things you can do improve your results. One of our most common recommendations to sellers is to de-clutter and organize the home. Other than your time, this improvement is essentially free and its importance cannot be underestimated. Click here for more information on Preparing Your Home for Sale.
Signing a Listing Contract
Now that you’ve selected your Realtor® and have your home ready, it’s time to sign a listing contract. While signing a contract may sound daunting, it’s much less so if you know what to expect. Most Realtors® in an around Montgomery County PA use a standard listing contract which has been adopted by the Pennsylvania Association of Realtors®. Click here for a draft copy of the PAR Listing Contract.
At The Scott Loper Team, we also remove any of your other fears about the listing contract by providing our Easy Exit Guarantee. While by law we have to insert an ending date into the contract, we allow our sellers to terminate their listing contracts with just 24 hours written notice. That could be an email, letter, fax, etc.; just so that we have some written documentation of your instructions to terminate the listing. There is a 90-day protection period which starts on the date of termination and allows us to complete a transaction under the original listing agreement terms. This protection applies for those buyers who viewed your home during our listing period, whether with us or a cooperating broker.
Showings
When you are ready for showings to begin, your home will be available to literally thousands of local real estate agents via the Multiple Listing Service (MLS). Many of these are Buyer Agents who are working with buyers looking for a home like yours. We specialize in marketing to these buyers and their agents. Our marketing is designed to make sure that they see your listing and are intrigued enough to schedule a showing. These agents will then contact our office to schedule a showing of your home. This is the primary manner in which your home will be shown. Our marketing will also reach many buyers who are not yet working with a Buyers Agent. Those buyers may contact us directly to see your home. In either case, our receptionists will field the requests to see your home and then contact you to confirm the appointments.
You want as many quality buyers as possible to see your home. So, be prepared to be flexible with showing requests. Outright restrictions (such as 24 hour notice) can cause showings to be missed. So, make those decisions carefully. Of course, if you receive an unreasonable request, (you just stepped out of the shower and get a call that an agent wants to show your home in 15 minutes) don’t be afraid to deny such requests.
Feedback
It’s critical to know what buyers and agents think about your home after a showing. This is valuable information that can help identify areas of concern that may be preventing buyers from making an offer. We realize the importance of this information and have an excellent track record in obtaining it for you; we obtain feedback on over 80% of the showings on our listings. We also use an online system so you can see what buyers and sellers are saying about your home at any time.
Accepting an Offer
Once we receive an offer on your property, we will review the terms and conditions of the offer and assess the buyer’s financial qualifications. We’ll promptly contact you to discuss the offer and explain its strengths and any areas of concern. You’ll need this information to decide whether to:
1. accept the offer, or
2. decline the offer, or
3. make a counteroffer to the buyer
We’ll then make an appointment to meet with you personally (if possible) to review the Agreement of Sale and any supporting documents in detail.
Deposit Monies
The offer you accept should require the buyer to submit reasonable deposit monies. In and around Montgomery County PA, these deposits are generally held in the listing broker’s escrow account unless the parties agree to some other terms. These monies are intended to provide security for the seller that the buyer is earnest in his/her intentions to purchase the home and will complete his/her obligations in the Agreement of Sale.
Satisfying the Contingencies
There are numerous contingencies that may be included in the Agreement of Sale. These contingencies are essentially conditions that must be satisfied in order for the sale to proceed. In many cases if the contingencies are not satisfied, the buyer may be able to terminate the Agreement of Sale and be entitled to a refund of his/her deposit monies. So, it’s extremely important that these contingencies are:
1. clearly identified
2. have reasonable deadlines for completion
3. are closely monitored to assure progress and satisfaction
Some of the more common contingencies include:
Buyer Inspections
· Home Inspection
· Wood Destroying Insect Inspection
· Radon Test
· Water Test
· Septic System Inspection (if applicable)
Municipal Use and Occupancy Inspection
Many townships and boroughs in and around Montgomery County PA require a use and occupancy inspection (even for resale homes). Unlike the buyer inspections, the seller is generally the responsible to coordinate and pay for this inspection. Most townships and boroughs charge less than $100 for this inspection. If deficiencies are identified, however, the seller is generally responsible for bringing the property into compliance with the municipal requirements.
Mortgage Commitment/Appraisal
Although your buyer may have provided a strong mortgage pre-approval along with his/her offer, the mortgage company will need to evaluate the buyer further in order to approve the loan for your property. This generally amounts to the mortgage company verifying the buyer’s income, assets, and debts by obtaining pay stubs, bank statements, w2’s, tax returns, an updated credit report, and other information.
Not only does the mortgage lender have to approve the buyer, but they also have to approve your home. The approval of your home is accomplished with an appraisal which is arranged by the lender. The appraiser will primarily evaluate your home to assure that its value supports the purchase price and loan amount. In some cases (particularly with FHA or VA loans), the appraiser may also require repairs if any deficiencies are identified.
Other Contingencies
If the Agreement of Sale is contingent upon the settlement of another property, it is important to also monitor the status of that sale throughout your transaction with this buyer.
Settlement
Prior to settlement, your buyer will typically complete a final walkthrough of the home. This walkthrough is a last check to make sure that the property is essentially in the condition agreed upon in the Agreement of Sale and its addenda. The buyer will check to make sure that:
· The home’s major systems are still functioning properly
· That no damage occurred during your move-out (or since the inspections)
· That any agreed upon inclusions (such as a washer, dryer, etc.) are left in the home
· That any agreed upon exclusions have been removed from the home
· That the home is vacant and free of any debris
It’s important that you leave the home in the agreed upon condition. Otherwise, the settlement may not go so smoothly and you could be responsible for the costs to address last minute issues.
At settlement, there will be a few documents for you to review and sign. Among these will be the deed (which transfers ownership to the buyer) and the HUD-1 statement. The HUD-1 statement is essentially an accounting of the monies being transferred at the settlement and is used to calculate your final proceeds from the sale. After all required documents are signed by you and the buyer and any remaining monies due are received from the buyer, you’ll receive a check (or wire) for your proceeds and give the keys to the buyer. Congratulations are in order; you’ve just completed the sale of your home!
Office Phone (215) 256-1200
