Selling

Step 1 - Preparing to Sell
	Millions of homes are sold each year, and while each sale is different every owner wants the best possible deal with the least amount of hassle. The home-selling process has changed. Buyer brokerage - where REALTORS® represent homebuyers - is now common nationwide. Buyers are now armed with more information than ever before and Sellers need to be as well educated about their local real estate market to achieve the highest possible value for their home. Your local Listings.com 'City Site' is a great place to get the information you need! The result is that while thousands of homes are sold each week, the process is not as easy for sellers as it was five or 10 years ago. Surviving in today's real estate world requires experience and training in such fields as real estate marketing, financing, negotiation and closing - the very expertise available from local REALTORS®. Are you ready to sell? The home-selling process typically starts several months before a property is made available for sale. It's necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out. The goal is to show a home which looks good, maximizes space and attracts as many buyers as possible. While part of the "getting ready" phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell. Selling a home is an important matter and there should be a good reason to sell - perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it's important to discuss your needs and wants in private with your Listings.com agent who lists your home.
	When should you sell? The best time tends to be more active in the summer because parents want to enroll children in classes at the beginning of the school year (usually August). The summer is also typically when most homes are likely to be available. How to Improve your home's value? The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. Mechanical repairs should be completed to ensure that all systems and appliances are in good working condition. This is required to get a top price. Cosmetic improvements such as paint, wallpaper and landscaping help a home "show" better and often are good investments. Ideally, you want to be sure that your property is competitive with other homes available in the community. Working with a Listings.com agent can provide suggestions on how best to make your property competitive in the marketplace. • Get Your House Sale Ready • Tips for Making Your Home Sell Faster • Staging – How to Showcase & Sell Your Home

Step 2 - Finding a Listing Broker

Every owner wants the best possible price and terms for their home. Several factors, including market conditions and interest rates, will determine the value of the home. The idea is to get the maximum price and the best terms during the window of time when your home is being marketed.

Home selling is both a science and an art. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale and engage a Listings.com agent to sell your home.

How much is too much?

Because all transactions are unique there is flexibility in the marketplace. The amount of flexibility depends on local conditions.
For example, suppose you're selling a home. Suppose also that there have been five recent sales of the model you own and that sale values have ranged between $300,000 and $310,000. You now have an idea of how your home might be priced. In a strong market perhaps you can ask for $310,000 or a little more. If the market has slowed, $310,000 may be a reasonable asking price, but perhaps more than the final sale price. Listings.com Agents can help. Experienced Denver Listings.com REALTORS® are active in the local marketplace and can provide assistance with pricing, marketing, negotiation and closing.

For More Information:
• How Much Is Your Home Really Worth?
• Tips on Pricing Your Home
• Setting Your List Price

Step 3 - Pricing Your Home

Several factors, including market conditions and interest rates, determine the value of your home. The goal is to get the maximum price and the best terms during the window of time when your home is being marketed.

Home selling is both a science and an art. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale and engage a Listings.com agent to sell your home.

What is your home worth?
All homes have a price, and sometimes more than one. There's the price owners would like to get, the value buyers would like to offer and a point of agreement which can result in a sale.

In considering home values, several factors are important:

Location - The value of your home relates to local sale prices. The same home, located elsewhere, would likely have a different value.
Prices - Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population and a limited housing supply, it's likely that prices will rise. Alternatively, it's important to be realistic. If the local community is losing jobs and people are moving out, then you'll likely have a buyer's market.
Value - Owner needs can impact sale values. If an owner "must" sell quickly, there is less leverage in the marketplace.

How much is too much?
Because all transactions are unique there is flexibility in the marketplace. The amount of flexibility depends on local conditions.

For example, suppose you're selling a home. Suppose also that there have been five recent sales of the model you own and that sale values have ranged between $300,000 and $310,000. You now have an idea of how your home might be priced. In a strong market perhaps you can ask for $310,000 or a little more. If the market has slowed, $310,000 may be a reasonable asking price, but perhaps more than the final sale price.

Listings.com Agents can help
Experienced Denver Listings.com REALTORS® are active in the local marketplace and can provide assistance with pricing, marketing, negotiation and closing.

For More Information:

How Much Is Your Home Really Worth?
Tips on Pricing Your Home
Setting Your List Price

Step 4 - Marketing Your Home

Selling your home entails a variety of marketing strategies. Once listed, the home will be entered into the local MLS (Multiple Listing Service) and placed on REALTOR.com® and virtaully every Real Estate Brokerage website through our Internet Data Exchange (IDX) agreements with all Brokerages that are members of the local MLS where a subject property is located. Aside from the standard MLS listings, Listings.com agents begin a ton of work “behind the scenes” such as emailing out new-listing announcements and regular newsletters. They also hold 'Open Houses' when appropriate and do the follow-up with open-house visitors, hold conversations with ad respondents, respond to web postings and other outreach efforts - all part of the process required to sell your home.

Experienced REALTORS® base their marketing efforts on previous transactions and ongoing research. For instance, according to the National Association of Realtors (NAR), 37 percent of all buyers check the Internet. NAR numbers also show that most households move within 10 miles of their current location while 20 percent move at least 50 miles.

Key ways to market your home:

Hold an open house - There are no universal marketing standards for real estate because marketplaces are localized. For instance, open houses may be common in some communities but rarely used in others. The location of a home is also a large determining factor for the use of an Open House as part of the ongoing marketing efforts. For instance, a rural home is not as likely to benefit from an Open House due to the low traffic in the area whereas a home in a high traffic neighborhood in a large city can benfit much more from an Open House.

In the case of an open house, a REALTOR® typically advertises that the home will be open for a given period (2-5 p.m. on Sunday). During the open period, the REALTOR® hosts the home while the owners leave for a few hours. At the open house, the REALTOR® will provide literature, maintain a visitor log and answer questions. By interacting with visitors, the REALTOR® will seek feedback regarding the home and opportunities to follow up with prospective purchasers.

Show your home online - The Internet is an important factor in real estate marketing.

The Internet has two important roles in the real estate selling process. First, it is a "place" to view real estate. Listings.com, for example, lists properties on it's national portal for global exposure and also maintains localized 'City Sites' that are optimized to attract buyers that are focusing their search for property in a particular city. Online real estate information includes not only home listings, but numerous additional features and benefits. For instance, Listings.com offers neighborhood information, school data, recent home sale prices and comparables, and other hard-to-find real estate related information.

For More Information:

The Basics of Marketing Your Home

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Step 5 - Negotiating an Offer

Negotiating a real estate sale from the seller's standpoint is often more challenging than from the buyer's standpoint. There is typically more emotion involved by the seller. After all, you are selling the roof above your head, a place that most likely holds a lot of memories. Its important to recognize that even though a buyer may have an emotional involvement in the transaction, it is much easier for them to walk away. They can always find another house that suits their needs.

To be successful as a seller when negotiating the sale of your home, the more emotional attachment you can remove, the better off you will be. If a buyer makes a low offer, try to find out the reason for the low offer, rather than taking it as an insult. If a buyer's offer insists that you change the color of the paint in the living room, look at it as an opportunity to sell the house rather than a comment on your decorating taste. Remember your objective – Selling Your House!

Step 6 - Closing the Deal

Once a sale agreement has been signed you might think the selling process is complete. Not only is it not over yet, but the most complex aspects of your real estate transaction now begin.

A sale agreement sets not only a purchase price for the home, but also a series of terms and conditions. For instance:

Contracts routinely depend on the ability of a buyer to obtain financing, which is why most sellers prefer buyers with preapproval letters from lenders.
A growing percentage of transactions involve a home inspection, or a physical review of the home by a trained and independent observer.
Lenders will establish numerous conditions before granting a loan. They will want a title exam, title insurance to protect against title errors, termite inspections, surveys and an appraisal to assure that the home has sufficient value to secure the loan.

Listings.com realtors typically arrange required inspections and helps owners prepare for closing.

What is a closing?
Closing -- or "settlement" or "escrow" as it is known in some areas -- is essentially a meeting where the closing agent (the party who conducts settlement) takes in money from the buyers, pays out money to the owner and makes sure that the purchaser's title is properly recorded in local records along with any mortgage liens.

The closing agent reviews the sale agreement to determine what payments and credits the owner should receive and what amounts are due from the buyer. The closing agent also assures that certain transaction costs are paid (taxes and title searches).

Closing is also the time when "adjustments" will be made. For instance, suppose you've pre-paid taxes four months in advance. In this case, the closing agent will compensate you for the prepayment at closing by having the buyer pay you additional money.

It could also work in reverse. If you are behind on property taxes, the closing agent will reduce the money due to you at settlement by the amount of the unpaid taxes.

Knowing when to close
Most of the time closings can occur within a week in some areas -- at least in theory. In practice, it takes time to arrange financing, conduct inspections, obtain appraisals, locate replacement housing, contact movers, pack and actually move.

While instant closings are not practical, neither are closings too far in the future. The problem with closings much past 60 days is that loan rates are difficult to lock in. If mortgage rates go up, it's possible that the buyer will no longer be able to afford the home and thus the deal may fall through.

The result of these considerations is that most homes close 30 to 45 days after a sale agreement has been signed.

Preparing to sell
It's important to look at the sale agreement and review your obligations. For instance, if you have agreed to paint a room or replace the dishwasher, such work must be completed before closing. Your REALTOR® can discuss your agreement and the steps which must be taken to complete the transaction.

The closing agent will handle both the settlement papers and related documents.

For More Information:

Understanding the Home Inspector process.

Step 7 - Moving

It doesn’t matter if you have large or a small house – they both contain a lot of furniture, clothes, kitchen equipment, pictures and other items. For a short move, it may be worthwhile to transport small goods by yourself, but larger items will likely require a professional mover.

It's best to get rid of excess furniture and other goods by having a yard sale before you move. This will reduce the volume of goods to be moved and thus lower moving costs. Unwanted furniture which cannot be sold can often be donated to charitable groups, many of which will come to your home to pick up donations. All other unwanted items should be taken to a landfill. You should provide the U.S. Postal Service with a forwarding address, and utility companies should be advised when to end service. Check with utility companies to see if there is deposit money which should be returned.

How do you plan a move?
The time to plan your move begins once you've decided to sell your home. Some of the activities required to sell the home can actually help with the moving process. For example, cleaning out closets, basements and attics means there will be less to do once the home is under contract.

Your planning will be guided by a number of things:

Are you moving a long distance? If yes, you'll likely require an interstate mover and the use of a large van.
Moving locally? If yes, will you move yourself? You'll need to consider packing boxes, peanuts, blankets or padding and a van rental.
Planning is key. Stock up on boxes, packing materials, tape and markers. Always mark boxes so that movers will know where goods should be placed.

Selecting a moving company?
There are a number of factors to consider. Budget is one issue: You'll want to spend as little as possible, but choosing only on the basis of cost can be a mistake. Movers must have the right equipment, training and experience to do a good job. A mover, no matter how large or small, should be able to provide recent references for homesellers with a similar volume of goods to transport.

Get mover estimates in writing. Be aware that it's possible to get discounts through membership organizations and, sometimes, on the basis of your profession: Clergy, for example, sometimes qualify for a discount. Always confirm mover credentials. Movers should be licensed and bonded as required in your state, and employees should have workman's comp insurance.

Make a moving checklist.
Moving is a big job and checklists can make it more organized and easier. Here are some of the major items to consider:

Money. If you're moving more than a few miles then you should have enough cash or credit to cover travel, food, transportation and lodging.
Medicine. Keep medicines and related prescriptions in a place where they will be available during the move.
Number boxes so that all items can be counted on arrival. Make a list of boxes by number and indicate their contents.
If moving with children, make sure that each has a favorite toy or toys, blankets, games, music and other goods.
Moving historic, breakable or valued items? Such goods routinely require special handling and packaging.
Have address books readily available in case you need help.
If you have a laptop computer with a modem, make it accessible during your trip to pick up business and personal e-mail.