It seems to me that most people choose a Realtor through word-of-mouth, at an open house, or through some advertising. What buyers and sellers don't seem to understand is they are hiring an employee. Just as a business person interviews an employee prospect, so should a buyer and seller interview a Realtor. Now, since a buyer or seller has no experience in hiring Realtors, the following questions may help with selecting one that they are comfortable with:
1. How long have you been in residential real estate sales? Is it your full-time job? (While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.)
2. Does your company have a Value Proposition?
3. What designations do you hold? (Designations, such as GRI and CRSÒ, which require that real estate professionals take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.)
4. How many homes did you and your company sell last year?
5. How many days did it take you to sell the average home? How did that compare to the overall market?
6. How close to the initial asking prices of the homes you sold were the final sale prices?
7. What types of specific marketing systems and approaches will you use to sell my home? (Look for someone who has aggressive, innovative approaches, not just someone who's going to put a sign in the yard and hope for the best.)
8. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? (While it's usually legal to represent both parties in a transaction, it's important to understand where the practitioner's obligations lie. A good practitioner will explain the agency relationship to you and describe the rights of each party. It's also possible to insist that the practitioner represent you exclusively.)
9. Can you recommend service providers who can assist me in obtaining a mortgage, making repairs on my home, and other things I need done? (Keep in mind here that real estate professionals should generally recommend more than one provider and should tell you if they receive any compensation from any provider.)
10. What type of support and supervision does your brokerage office provide to you? (Having resources, such as in-house support staff, access to a real estate attorney, or assistance with technology, can help a real estate professional sell your home.)
11. What's your business philosophy? (While there's no right answer to this question, the response will help you assess what's important to the real estate practitioner-fast sales, service, etc.-and determine how closely the practitioner's goals and business emphasis mesh with your own.)
12. How will you keep me informed about the progress of my transaction? How frequently? Using what media? (Again, this is not a question with a correct answer, but that one reflects your desires. Do you want updates twice a week or don't want to be bothered unless there's a hot prospect? Do you prefer phone, e-mail, or a personal visit?)
13.Could you please give me the names and phone numbers of your three most recent clients?
Although most homeowners eventually decide to use a real estate agent to sell their home, many of them often try to sell the property themselves, usually with mixed results.
However, if you’re the type of person who welcomes the challenges of any task as big as marketing your home as efficiently and effectively as possible, then here are just a few of the Forms you’ll need:
Property Disclosure Form. This form requires you to reveal all known defects to your property. Check with your state government to see if there is a special form required in your state.
Purchasers Access to Premises Agreement. This agreement sets conditions for permitting the buyer to enter your home for activities such as measuring for draperies before you move.
Sales Contract. The agreement between you and the seller on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form.
Sales Contract Contingency Clauses. In addition to the contract, you may need to add one or more attachments to the contract to address special contingencies-such as the buyer's need to sell a home before purchasing yours.
Pre- and Post-Occupancy Agreements. Unless you're planning on moving out and the buyer moving in on the day of closing, you'll need an agreement on the terms and costs of occupancy once the sale closes.
Lead-Based Paint Disclosure Pamphlet. If your home was built before 1978, you must provide the pamphlet to all sellers. You also must have buyers sign a statement indicating they received the pamphlet.
Make your home more appealing for potential buyers with these quick and easy tips.
Selling your home can be an exhausting experience. Inconvenient phone calls, broker previews, endless showings, price adjustments and the possibilities of being stuck with two mortgages are very real concerns for many of today’s homeowners. If you’re adequately prepared, you could end up losing hundreds, even thousands of dollars in profit. Oftentimes, the right agent can make the difference between a smooth, profitable transaction and an unhappy experience. By utilizing the knowledge of a competent, qualified real estate professional, you’ll be better equipped to avoid the following mistakes most commonly made by sellers:
1. Refusing To Invest in Potentially Profit-Inducing Repairs:
It always costs you more money to sell 'as is' than to make repairs that will increase the value of your home. Often even minor improvement will yield as much as three to five times the repair cost at the time of sale. Your agent will be able to point out which repairs will significantly increase the value of your home. Even seemingly small “touch-up” jobs can have an impact on the eventual sales price.
2. Failure to Consider Alternative Financing Terms:
Cash is not always the most advantageous transaction. Income level, tax benefits, and current legislation are all crucial factors when considering purchase terms. Professional real estate agents are experts in facilitating your home transaction. A smart agent will lead you to the path that will result in the highest yield.
3. Neglecting to Provide Easy Access For Showings:
Accessibility is a major key to profitability. "Appointment only" showings are obviously the most restrictive, while a lock box is the least. However, there are certain considerations to take into account, such as your lifestyle, time frame for the desired sale and the strength of your relationship with your agent. The more accessible your home, the better the odds of your finding a person willing to pay your asking price. And by developing a trusting relationship with your agent, he or she will show the home with your best interests in mind.
4. Settling on a Purchase Price Lower/Higher than Comparable Sales:
One critical reason to find the right professional is to make sure the property is priced appropriately for a timely and profitable sale. If the property is priced too high, it will sit and develop the stigma as a “problem property”. If it's priced too low, it could cost you considerable profit in the long run. The real estate market has subtle nuances and market changes that should be re-evaluated by your agent every 30-45 days to help you maximize your return.
5. Relying Solely On Traditional Methods To Sell Your Home:
The innovative agent who is willing to offer new strategies for attracting homebuyers will always outperform the agents who rely solely on traditional marketing methods. As a motivated seller, you should demand around-the- clock advertising exposure, innovative lead generation methods and lead accountability. In today’s competitive real estate market, these services are readily available, and your agent should offer them to help sell your home.
6. Overdependence on Market Timing & Seasonal Selling:
Just as a broker who continually follows the trends of a stock, your professional real estate agent should be continually following trends of your real estate market, a practice that could make you aware if and when the market cycle is poised to net you the most money. Although you may hear otherwise, the prevailing myth that property sales are seasonal is just that: a myth. In any market, real estate is always selling.
7. Failing to Make Necessary Cosmetic Changes:
As you’re undoubtedly aware, the prospective homebuyer's first impression is all-important in the sales process. An inconceivable amount of home sales have been lost to unkempt lawns, cluttered rooms, bad stains, and unpleasant odors, all seemingly minor blemishes that ultimately spoiled a buyer’s motivation. The easiest way to avoid this costly error is to imagine that you are the homebuyer and clean your place from top to bottom.
8. Wasting Time With An Unqualified Prospect:
Your agent's responsibility is to screen a prospect's qualifications before valuable time is lost. Be sure to align yourself with the right professional and eliminate negotiating with unqualified prospects.
9. Missing an Opportunity by Testing The Market:
Never put your property up for sale unless you are serious about selling. If you’re motivated enough, the right real estate professional will find you buyers. If you are flirting with indecision, however, you may just blow the sale.
10. Believing You Are Powerless To Make A Difference:
Don’t be a spectator in your own transaction: take an active role with your agent to see what you can do to facilitate your sale. Networking with professional peers and personal friends has frequently resulted in the sale of a home. In fact, you may be surprised how often homes are sold simply by word-of-mouth.
Nowhere is Murphy’s Law more prevalent than in real estate, simply because when you consider the length and complexity of any transaction, there are usually several opportunities for something – anything – to go wrong. The list below is NOT comprehensive; it’s simply the most commonly cited reasons for a “dead” transaction.
This is a parital list of challenges a Buyer or Seller can face during the qualification stage alone to jeopardize the transaction if he or she:
1. Falsifies information on the loan application.
2. Submits inaccurate personal or financial data to the lender.
3. Late payments in previous 12 months on credit report.
4. Assumes additional debt after date of loan application.
5. Experiences change in employment status.
6. Co-borrower (if any) experiences change in employment status.
7. Income verification lower then stated on loan application.
8. Overtime income disallowed for underwriting purposes.
9. Charges large purchase on credit before closing.
10. Experiences severe financial setback during escrow.
11. Lacks motivation.
12. Gift donor revokes payment.
13. Cannot locate divorce decree.
14. Cannot locate petition or discharge of bankruptcy.
15. Cannot locate tax returns.
16. Cannot locate bank statements.
17. Fails to provide verification of rent.
18. No longer qualifies for a home loan due to rise in interest rates.
19. Loan terms adjust to higher rates, points or fees.
20. Does not disclose child support payments on application.
21. Buyer of Seller is a foreign national.
22. Has declared bankruptcy within the last 2 years.
23. Debt-to-income ratio exceeds 50%.
24. Does not have steady 2-year employment history.
25. Submits handwritten pay stubs.
26. Switches to job requiring probation period before closing.
27. Switches to job from salary to 100% commission-based income.
28. Receives disapproval of the house from family or friends.
29. Believes the property has been misrepresented.
30. Expends funds due at closing.
31. Does not properly document additional gift money.
32. Does not provide cashier’s check to a title company for closing costs and down payment.
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