Choosing a Real Estate Agent

There are hundreds of licensees in your area. Choosing the right agent for your home can be confusing. It is especially difficult when you speak with several different agents, and they all seem so convincing. There is a way to determine who is most likely to succeed in getting your price and terms. The key is knowing the right questions to ask. This is particularly important when homes tend to sell more slowly. The following list provides you with questions to ask your prospective Realtor. The list will not only help you select the right Realtor, but also get you the very best from the one you choose....

• Do you work as a full time Realtor?
• May I see your resume or personal brochure?
• How many listings do you currently have? (more is better - it means more buyer calls)
• How many homes have you sold in your career? Last 6 months? 90 Days? 30 Days
• What is your average market time vs. the average market time?
• What is your sales price ratio vs. the average market ratio?
• What type of guarantee do you offer?
• Will you guarantee the sale of our home in 60 days?
• Am I locked into this listing with you?
• What is your guarantee that you will return all of our calls in 15 minutes?
• Do you have a written list of business and personal goals that you carry at all times?
• How many potential buyers and sellers do you talk with in a day? A week? A year?
• How much time are you willing to invest in knocking on doors and telemarketing to the homeowners in this area to find out if they know someone who would like to live in the neighborhood?
• Do you have a written step-by-step marketing plan?
• How does your marketing plan work?
• What systems do you have in your marketing plan to provide the broadest possible exposure for my home?
• What marketing systems do you offer that no one else has available?
• Do you have a system to follow-up on other agents so that we get valuable feedback after every showing?
• What systems do you have in place that will keep you in constant contact with me during the listing and the transaction?
• How many personal assistants do you have to see that no details are overlooked?
• How much time do you invest each month in professional training and career development. Can you give me proof?
• Are you fully automated with the latest technology - computers, laptop computer, digital camera, personal website to promote your listings?
• Do you have references that I may check? (Sellers currently listed with them)
• What open house programs do you offer? How does it work? What is your response?

Pricing Your Home to Sell

If the asking price of a property increases beyond fair market value, the pool of potential buyers decreases dramatically. Pricing it at or below market value increases the number of showings and the percentage of qualified buyers viewing your home.

The Market Value of Your Home Is Not:

• What you have in it.
• What you need out of it.
• What you want.
• What it is appraised for.
• What you heard your neighbor's house sold for.
• What the tax office says it is worth.
• How much it is insured for.
• Based on memories and treasures.
• Based on prices of homes where you are moving.
• What people say your property is worth

The True Market Value of Your Home Is:

What a Buyer is Willing to Pay for the Property:

• Based on today's market.
• Based on today's competition.
• Based on today's financing.
• Based on today's economic condition.
• Based on the buyer's perception of condition.
• Based on location.
• Based on normal marketing time.

What Affects the Market Value of Your Property

In understanding the market value of your property, we must deal with some factors that we have no control over:

1. Physical Qualities of Your Property
   Location
   Age
   Size of house and lot
   Floor plan and architectural style
   
2. Market Conditions
   Interest rates and availability of financing
   Buyer demand
   Prices of recently sold properties
   State of the economy
   Seasonal demand
   
3. The Competition
   The number of similar properties for sale
   Their prices, financing terms, location and physical condition
   

Properties That Sell In Today's Market for the Best Price Obtainable

On a Scale of 1-10, The "10's" are the ones that are selling with multiple offers. How Can Your Property Be a "10"? By specifically considering the following factors which are within your control:

Listing Price
Condition of the house and grounds
The way the home shows
Promotion and marketing
Availability for showing
The agent you select

As You Advance Through The Marketing Period, You May Observe Some Warnings:

• REALTOR elimination - if the REALTORS are not previewing it or if they preview and do not show it, they are eliminating it.
• BUYER elimination - if it is being shown with no results, the BUYERS are finding better properties to buy and are eliminating it.

IN EITHER CASE, THIS IS USUALLY AN INDICATION THAT YOUR HOME IS NOT PRICED AT MARKET VALUE.

REMEMBER: Price Overcomes All Objections

Dangers Of Overpricing

1. Minimizes Offers
   An overpriced property discourages prospective buyers from making offers, since the difference between the asking price and the market price becomes substantial.
2. Agent Enthusiasm and Response
   Agents lose interest in property that is overpriced. They do not spend as much time selling the property as they would if it were priced properly.
3. Qualified Buyer Exposure
   Overpriced property fails to attract qualified buyers; attracts the 'wrong' buyers.
4. Decline in Showings
   Agents avoid showing overpriced property in order not to lose credibility with buyers.
5. Loses Prospects from Signs
   Prospects who learn about the house from the sign get turned off, if it is overpriced and decline to view the property.
6. Limits Financing
   Financial institutes and mortgage companies finance only a percentage of the actual value of the property. If the property is overpriced, they will usually finance a lower percentage, thus reducing the available financing.
7. Appraisal
   An overpriced property will not appraise for the full amount of the offer necessitating lowering the price after escrow has been opened thus limiting the negotiation power of the seller.
8. Waste of Advertising Dollars
   A property that is priced unrealistically fails to attract normal advertising response, which reduces the effectiveness of advertising.
9. Less Net for the Seller
   Eventually market interest in an overpriced property completely declines. As this stage is reached, the seller becomes desperate and begins to consider selling at any price. During this long listing period the seller must bear maintenance and holding costs. The result is that the seller nets much less than if the property had been correctly priced originally.
10. Expired Listings
    Property which is not competitively priced results in an expired listing; only to be placed back on the market at a competitive price, thus wasting the seller's precious time and money.

Benefits Of Competitive Pricing

1. More Agent and Buyer Enthusiasm
   Both agents and buyers show enhanced enthusiasm in a competitively priced property. Agents talk about and show such property with interest; Buyers consider them good deals.
2. Shown to Sell - Not Just to Compare
   Prospects are shown competitively priced property with the intention of buying, not merely to compare with unrealistically priced property in the area. An overpriced property receives many viewings early on; only to help sell other competitively priced properties.
3. Faster Sale
   Competitively priced property will sell much faster than those which are overpriced.
4. Ultimately Higher Price
   Generally, the higher the initial price, the lower the actual sales price. Statistically, a property that sells in the first 30 days will bring the highest sales price and that amount will decrease as time passes.
5. Seller's Ability to Purchase another Property
   More than 8 out of 10 repeat buyers sold their current property before purchasing another. This shows the importance of competitive pricing for moving the property within a reasonable time to enable the seller to purchase another property.

Preparing Your Home for Sale

FIRST IMPRESSION - OUTSIDE

• PAINT:
  Brighten the structure with a coat of paint or just a good cleaning. Before painting, scrape or water blast any blistered or peeling paint; repair gutters and down spouts and replace wood showing dry rot. Replace screens if they are rusted or torn. Remove mildew or moss from walls or sidewalks with bleach and water or a commercial cleaner.

• FRONT ENTRY:
  Give special care to this area. This is where buyers get their first opportunity to make a close inspection, and they will pick it apart looking for flaws, so eliminate them. All woodwork should be freshly and neatly painted, including the door if necessary. Replace a badly worn or broken door bell button. Polish the door brass. Repaint or replace an unsightly mailbox. Put out a new or clean door mat. Do a thorough weeding and pruning job on any flower beds near the entry, and try to have some flowering plants growing. Keep the walks free of toys, bicycles, garden tools, leaves and other hazards.

• YARD:
  Mow and trim the lawn and keep it green. Shape up the shrubs and weed the flower beds. With desert landscaping, make sure that no underlying plastic is exposed, that rocks and sand are tidy, and that weeds and grass are removed. Pick up all pet droppings and debris.

• DRIVEWAY, GARAGE/CARPORT:
  Clean up grease or oil spots; remove the soil at least, if not the stain. Tidy up the garage and show off its size. Get rid of everything you don't want to move. See that the garage door opens freely and that the automatic door opener is in good working order. If possible, don't park cars in front of the house or in the driveway, and try to have very few parked cars on the street near the house. Recreational vehicles or boats should be in the garage or carport or behind a fence in the back. Derelict cars or ones being overhauled, should not be visible from the street and preferable should not even be present.

• FENCE:
  A few missing stakes or slats are real eyesores to buyers, yet are usually inexpensive and easy to fix. Repair, paint or stain as necessary.

• ROOF:
  Remove visible debris. Straighten the television antenna if necessary. Remove any tree branches bearing on the roof.

• AIR CONDITIONERS/EVAPORATIVE COOLERS:
  Repaint or replace any rusted exposed metal. Correct improper draining.

• PATIO:
  A nice spread of outdoor furniture looks very appealing. If necessary, borrow from a friend to enhance show ability.

• SWIMMING POOL:
  Adjust chemicals until the pool sparkles. Hose and dust cobwebs from filtration equipment. Store chemicals and tools neatly.

LOOK AT THE BASICS AROUND THE HOUSE

• WINDOWS:
  Wash all windows and keep curtains and drapes crisp and clean. Vacuum blinds and wash window sills. Replace any cracked or broken panes. Also, notice foliage near windows. A window framed in ivy can give a warm, homey feeling, but cut it back if the foliage is restricting the light coming into the room. Drapery rods should be affixed firmly to walls and work smoothly; draperies should be reasonably clean and hang properly.

• DOORS:
  Repair or replace doors with holes. One method of repair short of replacement is to cover a hole with a mirror or piece of paneling. Check to see that all doors open and close freely, including closet doors and patio or sliding glass doors. Oil any squeaky doors. Tighten the hardware, particularly doorknobs. And while making this kind of adjustment, tighten hardware on kitchen and bathroom cabinets too.

• WALLS:
  Perk up rooms with fresh paint. A modest investment in time and money can possible add dollars to your final selling price. Sometimes just a touch-up will do. Choose light, neutral colors for greatest appeal. Wallpaper should be clean and adhere smoothly to walls. Patch all major holes in wallboard and plaster. Loose handrails on stairway should be secured to walls. Clean or paint air-vent covers.

• FLOORS:
  Repair or replace missing or damaged pieces of tile; polish if needed. Repair of a loose stair tread-plate or loose carpeting on a stairway is a top priority.

• CARPETS:
  Steam-cleaning is the best answer for soiled carpet; shampooing seldom does the job where show ability is concerned. If pet odors are present, be sure to clean the carpet some time before the home is placed on the market to be sure the odors have been eliminated. Loose carpet should be anchored properly.

• ATTIC/BASEMENT:
  Empty out the attic to display the full value of this much appreciated but neglected storage space. Clean and brighten the basement with light paint and large wattage bulbs. Drain sediment from your water heater to eliminate any rusty water flowing from hot water taps.

CHECK MECHANICAL & ELECTRICAL FEATURES

• LIGHTS:
  Every light socket in and around the house should have a good bulb of adequate wattage. Don't overlook those outside; in the garage; utility room, halls, closets, or over the kitchen sink; and in the oven and exhaust hood.

• SWITCHES & FIXTURES:
  Repair or replace wall switches, outlets and light fixtures that don't work, replace any broken switch plates. Note: If you are not fully competent to handle these repairs, call in a professional.

• APPLIANCES:
  Those that will be sold with the home should be in good working order. If specific equipment does not work and you do not intend to repair it, point this out.

• PLUMBING:
  Badly chipped or irreversibly stained sinks and tubs should be re-enameled, patched, or replaced. Leaky or excessively noisy toilets should be fixed, as well as any dripping faucets.

• SPRINKLER SYSTEMS:
  These should be working properly with no defective heads.

ARRANGE FOR A SPACIOUS LOOK

One of the best and least expensive ways to improve the show ability of your home is to open as much space as possible. Openness stimulates positive feelings in buyers. Overstuffed rooms or closets give the impression of being smaller than they really are. You can't change the size of what you have, so try to present it in a pleasing way. If necessary, rent a mini-warehouse to store your extra belongings in while the house is on the market.

• SNIFF OUT UNPLEASANT ODORS

• WET TOWELS & WASHCLOTHS:
  Residents of a home frequently aren't aware of what a potential source of bad odor these are. Replace all used towels with fresh ones before a showing.

• SOILED CLOTHES:
  When the house is being shown, keep dirty laundry out of the living area; move it to the utility room, garage or storage area. This applies especially to a diaper pail.

• GARBAGE:
  Take all trash and garbage out of the house, particularly any food-related discards for the kitchen, and make sure no potatoes or onions are going bad under the sink or in the pantry. After running garbage through a disposal unit, grind up part of a lemon to add a fresh smell.

• COOKING:
  Avoid cooking with cabbage, onions and garlic. Many people associate strong, spicy odors with uncleanliness.

• SEWER GAS IN THE HOUSE:
  Do whatever is necessary to correct this problem before the house is placed on the market.

• CATS & DOGS:
  As a first step, move the cat's litter box out of the house. And be sure to clean up after the dog before any showings.

IMPORTANT REMINDERS

• VALUABLES:
  You may have valuable possessions that you like to display in your home, but when the house is being shown to strangers is not the time. Never leave small valuable items lying around on counters or visible in closets or cabinets. Get them our of sight, if not out of the house. Don't invite a problem.

• EXCLUSIONS FROM THE SALE:
  Make a note now of the items you do not intend to include with the sale of the house. Freestanding items generally are not included, but when in doubt, spell it out.

• KEYS:
  As you are readying the house for the market, make a note to gather all the keys for the house, including keys for doors, deadbolts, garage doors, and any padlocks around the property.

• INSTRUCTION MANUAL:
  As with keys, gather manuals and warranties for the mechanical equipment in the house - kitchen appliances, water heater and softener, air conditioning and heating units, evaporative cooling units, pool and filtration equipment, and electronic air filters.

TIPS FOR SHOWING

• KITCHEN:
  Go on a kitchen campaign and keep it especially clean. The sink should always be clean and free of dirty dishes. Counter tops appear more spacious when clean and uncluttered. Freshly mopped floors and baseboards can help 'show off' your kitchen.

• BATHROOMS:
  Make bathrooms sparkle by cleaning tile and porcelain. Commercial cleaners or vinegar will remove unsightly hard water stains. Replace any loose caulking or grout and while you're at it, fix any dripping faucets.

• FIREPLACE:
  Clean the fireplace and make a cozy, crackling fire. Or, dress it up with green plants, or dried flowers.

• LIGHTS:
  Open all draperies unless there is an objectionable view. In most rooms, you should turn on lights for a bright and cheerful look. Lamps and indirect lighting are preferable, but use overhead lights if that's all there is in a particular room.

• LIGHT SWITCHES:
  If some wall switches operate wall outlets, plug in a lamp or radio to demonstrate that the switch works. When a buyer flips a switch and nothing happens, he instinctively suspects a problem.

• AROMAS:
  Set out some fresh flowers, both for their appearance and fragrance. Right before an agent showing, place a small dish of vanilla extract in your oven at 250 degrees.

• CLOSETS:
  Keep doors closed except for walk-in closets. Have those doors slightly ajar and turn on the lights to draw attention to this special feature.

• POSTERS & SIGNS:
  We live in a tolerant age, but don't take a chance on offending a potential buyer. Remove all signs or posters that might be considered offensive.

• ASHTRAYS:
  Dirty ashtrays are both unsightly and a source of objectionable odor to nonsmokers. Keep them clean.

• UTILITY BILLS:
  Have copies of the past 12 months' bills available, or at least a written summary of the amounts paid for the period.

• PETS:
  Get them out of the house, if not off the property. Some people don't like dogs, and nobody likes muddy paw prints on a suit or dress. Cats can be just as objectionable to the person who doesn't like them, and invariably a cat will single out the cat-hater to use as a rubbing post.

• MUSIC:
  Soft background music will help create a relaxed mood that prompts buyers to linger and enjoy, but no music is better than loud music. Never have the television on when the house is being shown.

• YOUR PRESENCE:
  Most buyers will not relax and closely inspect a home if the owners are present, so try to arrange to turn the home over to the salesperson. If you must remain at home, refrain from talking unless questions are directed to you. All to often, a seller will jump in to point out some special feature, fearful that the Salesperson might overlook it. But, please bear in mind that some of the most successful Salespeople will say little or nothing during showings, and for two reasons: First; they have made their selling points before entering the house; and second; they want the buyers to discover some things for themselves in order to build excitement. The Salesperson also knows the buyers temperament. So trust the Salesperson's professional judgment.

• ONE FINAL NOTE:
  The legal principle of caveat emptor (let the buyer beware) is dead or dying. We are living in an age of consumerism, and it's hard to find a court that won't favor the buyer in a dispute. In fact, consumer groups and many government agencies are taking the posture that the seller has a positive obligation to disclose everything.

  If you have a problem in your home, don't mask it. A common example is the homeowner who spray-paints a ceiling to cover water stains caused by a leaking roof. If you have a major problem that you don't intend to correct, disclose it. Sure, some people will be turned off by the prospect of a major repair, but most buyers who otherwise like the home will be philosophical about a problem openly displayed. And usually, they will discount the price they offer by far less than the cost of the repair.

Closing Process

The closing process is the final step in selling your home, and is coordinated between the lender, escrow officer, and title company.

An earnest money deposit from the buyer will display a sincere intention to you of his or her desire to purchase your property while the loan is being processed by the lender. Once the loan has been approved and the down payment is being made, this earnest money deposit is credited towards the purchase price of the home.

Your purchase and sales agreement will be reviewed by the closing officer; at the same time, a title search is conducted to determine the accuracy of the title, whether or not there are any liens against your home, and if the title is sound and insurable or not.

The closing documents are prepared and the closing officer oversees the signing between you and the buyer. When the loan has been approved and financing is verified, you receive the buyer's down payment, and the signed closing documents are handed over to the lender. The lender then releases your file to the title company to be recorded with the County Courthouse.

The lender accounts for all money and forwards funds to the closing officer, who disperses them. Once funds are distributed, the transaction is closed and the title changes hands.

Congratulations, you've just sold your home!