Before you put your house on the market, it is important to understand “who’s who” in the home selling process.
Agents and Brokers
A listing agent, or sales associate, markets your home. A selling agent provides the potential buyer. Each agent is associated with a broker, or real estate company. When a house is sold in a cooperative sale, the listing broker is directly paid the listing commission and then splits the commission with the listing agent. Likewise, the selling commission is split between the selling broker and selling agent.
If the listing broker also provides the buyer, then the broker receives both the listing and selling commissions.
If the buyer’s real estate agent is also a Long & Foster sales associate, Long & Foster becomes a disclosed dual agent with the consent of both buyer and seller.
Listing Appointment
The first step toward putting your house up for sale is to meet with a listing agent at your home. At this appointment, the agent will provide you with information on recent sales and current listings of comparable homes in your neighborhood. The agent will also want to tour your home. Be ready to tell specific details about schools, nearby public transportation, and other desirable community features, as well as home features not readily apparent.
Remember, prospective buyers will be comparison shopping and keenly aware of subtle differences in houses for sale in the area. Be sure to tell your listing broker why yours is special—from any home remodeling to afternoon winter sunshine.
Asking Price
After discussing market conditions and comparable sales and listings with the listing broker, you will set the listing or asking price for your house. Experience in the industry has proven a market analysis approach is more accurate than the “replacement cost” or “potential rental income” methods.
A rule of thumb says, “A house priced more than 5% over market value discourages offers.” Market value is commonly defined as, “What a ready, willing and able buyer will pay, at a price a seller will accept.” Buyers are sophisticated. They’ve already been shopping, and when they see your home, they will be comparing features and financing. Buyers who cannot afford the price simply won’t look. This is why we say, “A house priced right is half sold.”
Sample Net Sheet
Based on the sales price, the listing broker will give you a worksheet that estimates the net cash from the sale. In this exercise, your anticipated charges are subtracted from the sales price. A list of typical selling costs is covered in the settlement section of this guide.
Financing Strategy
No sale can be completed without financing. Therefore, it is to your advantage to appeal to the greatest number of home buyers by accepting the greatest range of financing plans. The listing broker will explain the basic differences between Veterans Administration (VA), Federal Housing Administration (FHA), and conventional financing, as well as explain “discount points.”
Listing Agreement
When you are ready to put your house on the market, you will sign a listing agreement which specifies a length of time, or listing period, you will work with a listing agent and broker.
Lockboxes
A lockbox is a universal metal container for your house key that is hung on the front door and can only be opened by licensed sales associates. It provides access to your home for potential buyers when you are away.