| Copyright © 2005 Reich Realty Website design provided by Laura Donmoyer |
GETTING READY FOR SALE
Now is the time to put your planning to work and your house on the market. Your main concerns at this stage are: what to expect
at a listing appointment and how to be prepared for one, how to set an asking price, how to fix up your house to sell, and how to
show your house to its best advantage. You’ll find what once looked like a great scramble is beginning to fall into place.
at a listing appointment and how to be prepared for one, how to set an asking price, how to fix up your house to sell, and how to
show your house to its best advantage. You’ll find what once looked like a great scramble is beginning to fall into place.
 | What is meant by a “listing agreement?” | |
When you put your house up for sale, it’s called “listing” because your agent lists the property on the open market or in the Multiple Listing
Service to expose your house to the widest range of buyers. To do this you employ the agent to market your house by signing a contract.
This listing agreement is signed at a listing appointment. The agreement contains:
• A complete description of your property.
• The price you’re asking.
• An indication of the financing terms you will accept.
• The brokerage fee.
• The length of time the agreement is to be in effect.
When you sign the listing contract, you may agree to give your agent the “exclusive right to sell” your house for a certain listing period, at
the end of which you may extend or terminate the agreement, depending on your satisfaction with your agent’s efforts to sell.
You agree to allow your agent to put a “For Sale” sign on your lawn, to run ads in newspapers and magazines, to send out direct mail
brochures, and to make the property readily accessible so that other agents in the Multiple Listing Service can show your house if you’re
away.
Your agent should agree to actively market your house, list your property in the Multiple Listing Service if there is one in your area, and to
keep on top of all aspects of getting to settlement, including appraisal, loan approval, termite inspection, etc.
Service to expose your house to the widest range of buyers. To do this you employ the agent to market your house by signing a contract.
This listing agreement is signed at a listing appointment. The agreement contains:
• A complete description of your property.
• The price you’re asking.
• An indication of the financing terms you will accept.
• The brokerage fee.
• The length of time the agreement is to be in effect.
When you sign the listing contract, you may agree to give your agent the “exclusive right to sell” your house for a certain listing period, at
the end of which you may extend or terminate the agreement, depending on your satisfaction with your agent’s efforts to sell.
You agree to allow your agent to put a “For Sale” sign on your lawn, to run ads in newspapers and magazines, to send out direct mail
brochures, and to make the property readily accessible so that other agents in the Multiple Listing Service can show your house if you’re
away.
Your agent should agree to actively market your house, list your property in the Multiple Listing Service if there is one in your area, and to
keep on top of all aspects of getting to settlement, including appraisal, loan approval, termite inspection, etc.
| M.L.S. - (Multiple Listing Service): A network that contains listings of all area houses on the market by members of the MLS. All area members of MLS have access to the regularly updated information. |
| What should I do to get ready for a “listing appointment?” | |
A listing appointment is most productive if you have the following information on hand. Because the list is long, we've divided it into
essential items and optional items:
Essential Information
• Your property tax payments and/or condominium fees for the past year.
• Your loan account number and loan balance, your interest rate if possible, your PITI. (principal, interest, tax-es, insurance), and the
amount of assumable mortgage money available if any. Your agent will help you notify your lender of your intention to pay off your
loan, which lessens the amount of prepayment penalty and interest you may or may not be subject to, depending on your lender’s terms.
• A list of personal property that will go with the house (also “convey”) when you sell. If removing the item will create needed repairs, the
item is considered real property that goes with the house unless otherwise indicated.
• A list of personal property that will not go with the house.
• Legal property descriptions.
• Homeowner’s association or condominium by-laws.
• A list of major unresolved defects which should eventually be disclosed to a buyer. If you have a major problem you don’t intend to
correct, be candid about it. Honest disclosure is always best.
Optional Information
• Your utility bills for the past year.
• A list of all the energy features (insulation, etc.) including energy improvements you've made (solar hot water heater, etc.) with utility
bills ideally before and after to illustrate the savings involved.
• A certificate, if available, showing your house is free of termites. Inspection can be ordered later.
• A list of property tax assessments and any existing easements.
• A certificate of current inspection of your septic tank and well if you have either.
• Any documentation available of other house-related matters such as:
a) Warranties still in effect on electrical, heating/cool-ing systems, appliances, etc.
b) A property survey or house location plat.
c) A floor plan if you have one.
d) Title insurance policy.
e) A professional property appraisal if available.
• A list of special features that you think would help sell your house, such as extra storage, built-ins, or a generator to insure against power
outage, etc.
• A list of the features you personally like about your house and neighborhood.
• A map of the area, pinpointing the convenience of schools, transportation, shopping, recreation.
• Anything that you think would help your agent to sell your house quickly, profitably and with the least inconvenience to you.
essential items and optional items:
Essential Information
• Your property tax payments and/or condominium fees for the past year.
• Your loan account number and loan balance, your interest rate if possible, your PITI. (principal, interest, tax-es, insurance), and the
amount of assumable mortgage money available if any. Your agent will help you notify your lender of your intention to pay off your
loan, which lessens the amount of prepayment penalty and interest you may or may not be subject to, depending on your lender’s terms.
• A list of personal property that will go with the house (also “convey”) when you sell. If removing the item will create needed repairs, the
item is considered real property that goes with the house unless otherwise indicated.
• A list of personal property that will not go with the house.
• Legal property descriptions.
• Homeowner’s association or condominium by-laws.
• A list of major unresolved defects which should eventually be disclosed to a buyer. If you have a major problem you don’t intend to
correct, be candid about it. Honest disclosure is always best.
Optional Information
• Your utility bills for the past year.
• A list of all the energy features (insulation, etc.) including energy improvements you've made (solar hot water heater, etc.) with utility
bills ideally before and after to illustrate the savings involved.
• A certificate, if available, showing your house is free of termites. Inspection can be ordered later.
• A list of property tax assessments and any existing easements.
• A certificate of current inspection of your septic tank and well if you have either.
• Any documentation available of other house-related matters such as:
a) Warranties still in effect on electrical, heating/cool-ing systems, appliances, etc.
b) A property survey or house location plat.
c) A floor plan if you have one.
d) Title insurance policy.
e) A professional property appraisal if available.
• A list of special features that you think would help sell your house, such as extra storage, built-ins, or a generator to insure against power
outage, etc.
• A list of the features you personally like about your house and neighborhood.
• A map of the area, pinpointing the convenience of schools, transportation, shopping, recreation.
• Anything that you think would help your agent to sell your house quickly, profitably and with the least inconvenience to you.
| How do I figure what price to ask for my house? | |
You've probably already heard what similar houses in your neighborhood have sold for. But hearsay isn't enough. You need to weigh all
the determining factors of the real estate market.
To arrive at a fair price, you need an expert evaluation of all market conditions; in other words, you need a professional market analysis,
this is because market price no longer can be considered as an isolated element. Your house can be worth several different prices
depending on the terms you offer, available financing and the condition of your house. For example, a house with assumable low-digit
interest rate financing is worth more to a buyer than an identical house which offers only new conventional market rate financing. What
concerns buyers most is not price, but monthly payments.
Your agent is glad to provide such an educated opinion. You’ll learn what prices buyers will pay for what kinds of houses in the current
market, and you will be able to price your house accordingly.
the determining factors of the real estate market.
To arrive at a fair price, you need an expert evaluation of all market conditions; in other words, you need a professional market analysis,
this is because market price no longer can be considered as an isolated element. Your house can be worth several different prices
depending on the terms you offer, available financing and the condition of your house. For example, a house with assumable low-digit
interest rate financing is worth more to a buyer than an identical house which offers only new conventional market rate financing. What
concerns buyers most is not price, but monthly payments.
Your agent is glad to provide such an educated opinion. You’ll learn what prices buyers will pay for what kinds of houses in the current
market, and you will be able to price your house accordingly.
Many sellers don’t understand the value that comes from outside the house. It is not the bricks and mortar that makes value: it is what the
buyer wants. In most cases actual cost of the house is not the key to value. Today’s key to value also goes beyond the old real estate
maxim: Location, location, location!
Market value is also tied to several trends, chiefly:
• Economic conditions which reflect both national and community business conditions.
• National, state and/or local political activity that produces changes in tax laws and tax rates, sales regulations, zoning restrictions,
reassessments of property, etc.
• Pressures of supply and demand, which create either a ‘buyer’s market” when there are more sellers than buyers and house prices may
drop, or a ‘seller’s market” when there are more buyers than sellers, causing house prices to go up.
• Seasonal influences create a ‘buying season” and an “off-season,” although this traditional trend has given way more and more to year-
round selling.
buyer wants. In most cases actual cost of the house is not the key to value. Today’s key to value also goes beyond the old real estate
maxim: Location, location, location!
Market value is also tied to several trends, chiefly:
• Economic conditions which reflect both national and community business conditions.
• National, state and/or local political activity that produces changes in tax laws and tax rates, sales regulations, zoning restrictions,
reassessments of property, etc.
• Pressures of supply and demand, which create either a ‘buyer’s market” when there are more sellers than buyers and house prices may
drop, or a ‘seller’s market” when there are more buyers than sellers, causing house prices to go up.
• Seasonal influences create a ‘buying season” and an “off-season,” although this traditional trend has given way more and more to year-
round selling.
| What are some insider secrets to make my house more marketable than other neighborhood houses? | |
Our experience shows the following tips will help your house sell quickly and at the best possible price:
• Select a price carefully. Remember your price has to please three people: you, the buyer and the appraiser. The closer your price is to
actual market value - what a knowledgeable seller will accept and a knowledgeable buyer will pay - the sooner it will sell.
• Be sure your price is realistic. Unrealistic prices are the major cause of “shopworn” listings, those that cause people to wonder if
something is wrong with the house and result in eventual below-market sales. Overpricing actually helps sell other competing houses by
making those listings look like better values compared to yours. If you plan to reduce the price anyway, why wait?
• Show flexibility in evaluating the need for special financing, perhaps through owner financing or VA/FHA.
• Try to offer immediate possession, although move-up buyers may need more time.
• Exposure sells houses. Provide easy access to property for showings.
• Offer extras that convey; freestanding appliances, pool table, swimming pool chemicals, washer/dryer, full cord of seasoned firewood,
etc. You may keep some extras out of the listing and save them as sweeteners” for negotiations.
• Allow a yard sign.
• Fix-up your house and keep it in top condition inside and out.
• Listen to and follow any special advice from your agent.
• Select a price carefully. Remember your price has to please three people: you, the buyer and the appraiser. The closer your price is to
actual market value - what a knowledgeable seller will accept and a knowledgeable buyer will pay - the sooner it will sell.
• Be sure your price is realistic. Unrealistic prices are the major cause of “shopworn” listings, those that cause people to wonder if
something is wrong with the house and result in eventual below-market sales. Overpricing actually helps sell other competing houses by
making those listings look like better values compared to yours. If you plan to reduce the price anyway, why wait?
• Show flexibility in evaluating the need for special financing, perhaps through owner financing or VA/FHA.
• Try to offer immediate possession, although move-up buyers may need more time.
• Exposure sells houses. Provide easy access to property for showings.
• Offer extras that convey; freestanding appliances, pool table, swimming pool chemicals, washer/dryer, full cord of seasoned firewood,
etc. You may keep some extras out of the listing and save them as sweeteners” for negotiations.
• Allow a yard sign.
• Fix-up your house and keep it in top condition inside and out.
• Listen to and follow any special advice from your agent.
| What basic repairs and improvements should I make to increase the marketability of my house? | |
Basically, freshness, neatness and good working order are the chief keys to top sales appeal. Why tell prospective buyers how your house
could look when you can show them? Look at your house as if you were seeing it for the first time and be critical as buyers will. Open up
space, closets, storage as much as possible because openness creates a positive impression with buyers. Repair what strikes you as the
least bit shoddy. Your ideal goal is to show the property in ‘move-in condition’L~ without a thing to fix. From experience we know that
property in poor condition incites low offers.
Showmanship Outdoors
• Generally, improve your house’s "curb appeal," or how your house looks to a buyer from a car parked at the curb.
• Make your front door and porch attractive. You only get one chance to make a positive first impression.
• Trim the lawn and shrubs, fertilize and water if needed.
• Fix cracks and bulges in walks and driveways; also remove oil stains.
• Replace stray or warped roofing shingles.
• Paint siding, windows, shutters, doors, even mailbox.
• Straighten sagging gutters.
• Replace a worn doorbell button. Polish any door brass. Replace a worn doormat. These things say you care about your house, and the
doormat will protect floors and carpets.
Showmanship Indoors
• Clean the kitchen especially, including oven, exhaust hood and inside of dishwasher. Unclutter counters and cabinets. Some buyers will
judge the maintenance of the entire house by the cleanliness of the kitchen.
• Few things increase marketability and give you a better cost return than new paint. Freshen any worn or soiled walls and woodwork with
neutral-toned paint or wood polish.
• Polish wood floors and stairs.
• Steam clean or replace worn carpeting.
• Repair dripping faucets, crooked drawers, sticking doors. Tighten the hardware, especially doorknobs. Minor flaws in your house suggest
neglect to prospects.
• Repair or replace worn appliances.
• Clean windows and storms inside and out.
• Scrub counters, bathroom fixtures and tiles.
• Clean exterior of water heater and furnace/air conditioner where prospects will be inspecting. Also drain a bucket of water from water
heater to remove any rust particles.
• The ideal garage holds only cars. If yours has become a two-car attic throw out the excess.
could look when you can show them? Look at your house as if you were seeing it for the first time and be critical as buyers will. Open up
space, closets, storage as much as possible because openness creates a positive impression with buyers. Repair what strikes you as the
least bit shoddy. Your ideal goal is to show the property in ‘move-in condition’L~ without a thing to fix. From experience we know that
property in poor condition incites low offers.
Showmanship Outdoors
• Generally, improve your house’s "curb appeal," or how your house looks to a buyer from a car parked at the curb.
• Make your front door and porch attractive. You only get one chance to make a positive first impression.
• Trim the lawn and shrubs, fertilize and water if needed.
• Fix cracks and bulges in walks and driveways; also remove oil stains.
• Replace stray or warped roofing shingles.
• Paint siding, windows, shutters, doors, even mailbox.
• Straighten sagging gutters.
• Replace a worn doorbell button. Polish any door brass. Replace a worn doormat. These things say you care about your house, and the
doormat will protect floors and carpets.
Showmanship Indoors
• Clean the kitchen especially, including oven, exhaust hood and inside of dishwasher. Unclutter counters and cabinets. Some buyers will
judge the maintenance of the entire house by the cleanliness of the kitchen.
• Few things increase marketability and give you a better cost return than new paint. Freshen any worn or soiled walls and woodwork with
neutral-toned paint or wood polish.
• Polish wood floors and stairs.
• Steam clean or replace worn carpeting.
• Repair dripping faucets, crooked drawers, sticking doors. Tighten the hardware, especially doorknobs. Minor flaws in your house suggest
neglect to prospects.
• Repair or replace worn appliances.
• Clean windows and storms inside and out.
• Scrub counters, bathroom fixtures and tiles.
• Clean exterior of water heater and furnace/air conditioner where prospects will be inspecting. Also drain a bucket of water from water
heater to remove any rust particles.
• The ideal garage holds only cars. If yours has become a two-car attic throw out the excess.
| What’s the most effective way to show my house to prospective buyers? | |
After you've completed all necessary repairs, go over your house w’th a fine-toothed comb before the first prospect arrives. Everything
should be sparkling clean inside and out, and in good working order. Clean out the closets and storage spaces. Be ruthless. Put things in
their places. Get rid of the trash. Let in as much sunlight as possible. Make each room look as roomy as it can. Clear out the garage. Throw
out ancient magazines. Clean draperies. Wash windows, woodwork and counter tops. In general, tidy up, open up and unclutter.
When an agent calls you to make an appointment, allow time to air the rooms, perhaps use air freshener or run a lemon through the
disposal; also, baking cookies, bread or simply a pan of cinnamon adds a “homey” aroma; turn on lights, turn off stereos, TV's and radios;
keep children out of the way; park the pets outside - many prospects are afraid of or allergic to animals, and you don’t want to give a
potential buyer a reason not to be able to thoroughly consider your house. In short, get the whole place ready for close inspection.
Greet prospects politely and excuse yourself. Leave the selling to the agent. Agents know what your house has to offer and what these
particular buyers are looking for. Agents also know how to sell. Don’t try to interrupt with suggestions, such as what personal property you
might sell, what kind of financing you think would be good for the buyer, etc. Don’t apologize for imperfections, but answer all questions
put to you briefly and honestly. Do not discuss price or financing with a prospective buyer; refer them to your agent.
should be sparkling clean inside and out, and in good working order. Clean out the closets and storage spaces. Be ruthless. Put things in
their places. Get rid of the trash. Let in as much sunlight as possible. Make each room look as roomy as it can. Clear out the garage. Throw
out ancient magazines. Clean draperies. Wash windows, woodwork and counter tops. In general, tidy up, open up and unclutter.
When an agent calls you to make an appointment, allow time to air the rooms, perhaps use air freshener or run a lemon through the
disposal; also, baking cookies, bread or simply a pan of cinnamon adds a “homey” aroma; turn on lights, turn off stereos, TV's and radios;
keep children out of the way; park the pets outside - many prospects are afraid of or allergic to animals, and you don’t want to give a
potential buyer a reason not to be able to thoroughly consider your house. In short, get the whole place ready for close inspection.
Greet prospects politely and excuse yourself. Leave the selling to the agent. Agents know what your house has to offer and what these
particular buyers are looking for. Agents also know how to sell. Don’t try to interrupt with suggestions, such as what personal property you
might sell, what kind of financing you think would be good for the buyer, etc. Don’t apologize for imperfections, but answer all questions
put to you briefly and honestly. Do not discuss price or financing with a prospective buyer; refer them to your agent.
| Ready, Set, Sell! | |
Now you’re getting the picture. Everything’s in place and your house is looking its best. Your house is available for
inspection, and potential buyers are trooping through, peering into corners and closets. An eternity seems to pass as
agents show your immaculate house to interested buyers. What next?
inspection, and potential buyers are trooping through, peering into corners and closets. An eternity seems to pass as
agents show your immaculate house to interested buyers. What next?
| Richard A. Reich, REALTOR |
| 827 Willow Street, Lebanon, PA 17042 (717) 273-8861 ~ dick@reichrealty.com |
| What determines “market value?” | |