Selling Property
When selling your property, your REALTOR® will work with you to be sure that transaction will be completed in a timely and professional manner. You are entering into a partnership with your REALTOR® and your contributions to the success of the transaction include providing documentation, Preparation of the Property, cooperation in showings, and Availability for consultation and negotiation.
Documentation
Provide your REALTOR® with copies of as many of the following documents as possible.
* Deed to the property and any modifications: This will verify the owners of record, quality of the deed, and the interest that the owners of record will be transferring.
* Mortgage, liens and assessments: The outstanding financial obligations need to be factored in to provide you with a more accurate estimate of the seller's net proceeds statement.
* Most recent property tax bill: In addition to providing the amount of taxes, this document gives your REALTOR® the property identification number. If he/she has not already done so, your REALTOR® will collect the information that the tax assessor has regarding your property. In some cases, potential problems can be avoided by careful study of this information. For example, if any improvements requiring a permit have been added to the property and they are not listed on the tax roll, it could delay or even prevent the transfer of the property. Your REALTOR® can help you rectify the situation before it becomes a problem.
* Utility Bills: The cost of maintaining a property is a question frequently asked by prospective purchasers. If you are able to provide 12 months worth of utility bills (electric, water, sewage, trash removal, gas, etc.) it will enable your REALTOR® to provide an annual cost of ownership statement for the prospective buyer.
* Property Insurance Policy and Statement: Frequently property insurance is transferable to a new owner. Have your information available so the prospective purchaser can evaluate it if transfer of policy is a possibility.
* Title Insurance or Abstract of Title: This document will show the extent of title being transferred and any exceptions. To understand the legal aspects of title, be aware that your REALTOR® can not interpret this document for you. Only an attorney can render a legal opinion. See Article 13, Code of Ethics.
* Inspection Reports: Any inspections done recently (roof, structural, wood destroying organisms, water quality, etc.) will help to present an unbiased opinion of the property's condition. This is even more important if you are planning to sell the property "as-is". A prudent purchaser will still have new inspections ordered.
* Other: Any other documents that you have that would affect the value or condition of the property should be provided to your REALTOR® as early as possible.
Preparation of the Property
If you want to maximize the offering price for your property, do as many of the following as possible. Ideally, the preparation should be done prior to showing the property to prospective purchasers and any items that relate to the condition of the property should be maintained through the closing.
* Marketing Materials: Provide your REALTOR® with photos of the property and its features, a survey (if possible) and floor plans or blueprints of the improvements. Put together a list of the property's features and personal property to be conveyed. Use brand names where appropriate. These materials (paperwork preferably reduced to either letter or legal size) can be left at the property and used by your REALTOR® to interest prospective purchasers and cooperating brokers, particulary when presenting your property to out-of-town prospects. Provide a guest list or guest book (include at a minimum space for the person's name, company name, and telephone number) to be signed by agents and/or prospective purchasers.
* Property Grounds: All walks, parking surfaces, porches and decks should be free of obstructions and in good repair. Grass and ground cover should be neatly trimmed. Any dead shrubs or trees should be removed or replaced. Thin out any over-grown areas and make sure all doors and windows are not obstructed by any plantings or vines. If you plan to take any of the in-ground plantings with you when you vacate the property, make sure you advise your REALTOR® so that this information can be excluded from the sale.
* Exterior of Improvements: Repair any loose siding, gutters, lighting fixtures, shingles, etc. Replace any damaged areas to the structure. Make sure all caulking and weatherstriping is free of cracks and holes. Clean or paint all exterior surfaces as required. Pay particular attention to doors and windows.
* Interior Condition: If you plan to have a garage or yard sale, do it now. This will help you eliminate clutter - your garage, basement and attic will show better and your closets won't be jammed.
* Interior Walls and Ceilings: Repair any holes. Clean surfaces that are dirty, especially doors, doorways, light switches, moldings, and baseboards. If painted areas are chipped, touch-up or re-paint as needed. Damaged wallpaper, if not possible to repair, should be removed or replaced. Before re-painting or wallpapering, consult with your REALTOR®. He/she is aware of current buyer preferences. If your REALTOR® recommends a change in color or wall coverings, be aware that this recommendation comes from his/her knowledge and is suggested to help you maximize your property's marketability.
* Interior Flooring: Clean all flooring surfaces thoroughly. De-odorize any carpeting. If your floor coverings are damaged, repair or replace as needed. Before replacing any floorcoverings, consult with your REALTOR®. He/she is aware of current buyer preferences. If your REALTOR® recommends a change, be aware that this recommendation comes from his/her knowledge and is suggested to help you maximize your property's marketability.
* Electrical Fixtures and Appliances: Make sure all electrical fixtures and appliances that are to be sold with the property are in good working order. Repair or replace any that are not. Make sure the surfaces are clean (including the blades on any paddle fans). Put the maximum permitted wattage light bulb in each lighting fixture so that the home is bright when shown. Replace the filter in your air conditioner. (Yes, buyers have been know to check them!)
* Plumbing: Check all faucets and drains for leaks. Again, clean, repair and/or replace as needed. Don't overlook any water filtration systems, pumps, irrigation systems, etc.
* Organize Closets: Try to have a minimum of about 10% free space on each hanging bar and shelf. Keep the central floor area in walk-in closets free.
* Garage or Vehicle Storage Areas: Make sure that all other materials stored in this area are along the side walls with enough clearance for vehicle doors to be opened easily. If needed, put up some inexpensive metal shelving units to help organize this area.
* Other: View each area of your property objectively. Try to imagine you are a prospective purchaser. What objections would you, as the prospective purchaser, have? Can you overcome these objections? Your REALTOR® can help you with this!
Cooperation in Showing
When your property is in condition to show, it must be made available. While your REALTOR® will try to provide you with as much advance notice as possible, there are times when a prospective purchaser may want to see you home immediately. Your cooperation in making your property readily available is important. There are several factors to consider and decisions to be made with your REALTOR® partner.
* Setting the Stage: Prior to any showing, put away any loose articles of clothing or other items of a personal nature. Adjust all window coverings so that outdoor light and views are maximized. Turn on all lights. Close all closet doors. Leave all interior doors open. Make sure there are no unpleasant odors or heavy scents. Turn off any appliances that may be generating noise or heat (televisions, dishwashers, washers, dryers, etc.). Soft background music is acceptable but be aware that your selection may be a distraction.
* Absent Owner: Whenever possible, the residents/occupants of the property should not be in the same area as the showing agent and his/her prospective purchaser. If a party is interested in the property, they feel more at liberty to look carefully, inspect the property, open closets, etc. when residents/owners are not around. Your presence may inhibit an offer. If possible, leave the premises. Go for a drive or a walk. At a minimum, go outside while the inside is being shown. Go inside while the outside is being shown. If the prospective purchaser has any questions, they will be relayed to you at the appropriate time.
* Silent Salesman: Leave copies of your marketing materials (see above), a guest register, and some of your REALTOR®'s business cards in a prominent place - usually on a kitchen counter or on a front hall table. These become your "Silent Salesman". They will help answer any questions that the prospective purchaser may have.
* Brokers' Open House: In many areas open houses are held so that agents can preview a property. There may be 2 brokers' open houses - one for members of the listing agent's firm and a second one for all cooperating brokers in the area. This is one of the most important open houses you will have. Agents will be mentally matching your property against the wants of needs of their current prospective buyers. Even if they have no current prospective purchasers in mind, the impression that they have of your property will determine if it comes to mind when they do have a prospective buyer within your property type and price range.
* Public Open House: Check with your REALTOR® about the effectiveness of public open houses in your area. He/she will know when, how often and even if these are an effective means of attracting prospective purchasers in your specific market.
* Advertising: Discuss with your REALTOR® the most effective mix of "showing" your property to prospective purchasers in the various media available. When discussing this aspect of the process, remember that most agents will be evaluating the cost of the marketing campaign as a percentage of the listing portion of the real estate commission to be earned at closing.
* Lock-Box: A lock-box is a device that contains a key to your property and can be opened by cooperating brokers. The systems vary but all require a special key, magnetic card, password, or other security method to prevent unauthorized access to your property key. Use of a lock-box will maximize the number of REALTORS® that will be able to show your property to prospective purchasers. Discuss this method of access with your REALTOR®.
* By Appointment: Requiring an appointment to see your property may prohibit some showings to otherwise interested prospective purchasers. If you are unavailable either at the time someone wants to contact you or to show the property, chances are that your property will be dropped from the list of properties to be shown. If there are compelling reasons for "By Appointment Only", discuss them with your REALTOR®.
* Listing REALTOR® Must Accompany: Requiring your listing REALTOR® to accompany each appointment to see your property may prohibit some showings to otherwise interested prospective purchasers. If your REALTOR® is unavailable either at the time someone wants to contact him/her or to show the property, chances are that your property will be dropped from the list of properties to be shown. If there are compelling reasons for "Listing REALTOR® Must Accompany", discuss them with your REALTOR®.
* Pets and Animals: If you have an animal on your property, make sure that this information is made known and where the animal is located during all showings. It is best if the animal can be confined in an area that won't interfere with the showing of the property. This may be in a crate or cage, in a confined out-door area, or some other appropriate area that will prevent the animal from coming into direct contact with either the showing agent or prospective purchaser. This is also important to help prevent the accidental release and possible loss of your animal.
* Unannounced Agent: In most areas, real estate agents will call in advance prior to showing a property. In the event that an agent shows up at your door unannounced, ask for a business card and to see the agent's real estate license. Copy down the agent's real estate license number and ask the agent to wait outside while you make a phone call. Do not allow entry to any unknown person until you verify the identity. Your listing REALTOR® may have already discussed this possibility with you. If so, follow his/her advice. If not, you may contact your listing broker and ask them to verify the identity of the person at your door. Additionally, if the agent is with a firm known to you, you may want to call that firm, provide a description of the agent, and verify that he/she is the person at your door. If the firm is unknown to you, you may want to contact your Board of REALTORS®, provide the agent's license number and ask that they verify that the person is a member. If you are unable to verify the identity, do not admit the stranger at your door.
* Other: Keep in mind that the most important thing you can do in having your property exposed to prospective purchasers is to have information about the property and the property itself as readily available as possible. Be prepared to make adjustments to any of the showing areas as needed, based on the advice of your REALTOR® partner.
Availability for Consultation and Negotiation
During the listing period, you and your REALTOR® will be in touch many times. It is important that you establish the "ground rules" early on in your relationship. Make sure that your agent has all pertinent ways of contacting you - home and work phone numbers, cell phone numbers, fax numbers, beeper numbers, e-mail address, etc.
* Showings Update: Advise your REALTORS® of any showings as soon as possible. Most agents will leave a business card or sign a guest register when showing a property. Provide your agent with the cooperating broker's name, company name, date and time (if possible). Your REALTOR® will follow up to determine the interest, if any, in your property.
* Progress Updates: Many REALTORS® establish a regularly scheduled time for communication with sellers. This communication may be verbal or written. It may occur weekly, bi-weekly, or whatever you and your REALTOR® agree upon. Even if there is no progress to report, the seller is kept informed.
* Consultations: Your REALTOR® may need to consult with you regarding any aspect of the marketing of your property. It may be based on feed-back from other agents, a shift in market conditions, changes in the financial market that may affect your transaction, or any other factor. The factors may affect the pricing structure for your property (either up or down), adjustments to the terms of sale, re-evaluating the condition of the property, marketing strategy, etc.
* Negotiations: This is the time when it is most vital for your REALTOR® to be able to contact you immediately. Offers have been made at any time of the day or night, on any day of the year - holidays included. If you are serious about selling your property, your REALTOR® must be able to contact you at a moment's notice.