So You Want To Sell the House
When is the very best time to sell your house? When is it not?
Today, there are almost more different types of real estate service providers than real estate agents!
- Full Service, Full Commission … that’s a lot of money!
- Modified Service, Modified Commission … different levels of service
- Flat Fee, Excuses, No Service … throw your money away
- Hybrid Services, Blended Commission/Fee … likely a pretty good deal
- Flat Fee MLS Insertion, No Service (Possibly Illegal in Indiana) … throw your money away
- Consulting Companies, Varying Fees … you really don’t know what you don’t know
- Internet Advertising, No Service, Flat Fee … sounds good but worthless
- Seller Agency, Buyer Agency Specialists … no benefit for this, limits competition
- We Buy Houses … Rent To Buy … Scams? … you need an experienced agent’s input
- Pre-Foreclosure Short Sale marketing … takes way too long for most buyers to be interested
Educated, unbiased decisions are always the Best decisions (?). Anticipate costs for the sale of your home.
- Typical costs
- Additional costs for FHA or VA financing
- Additional costs for Seller paid Closing Costs
- Buyer costs
The buyer always has an opportunity to file suit against you for a variety of things. You can save a lot of money when selling your house and still limit your liability after the sale.
- Is there a benefit to using a real estate agent?
- Would you use an agent if the price was right?
The price could be right! What value is there to experience in real estate sales and marketing?
Keep in mind that 7% of all properties sold were sold FSBO in 2015 and currently the number is about 2-3% as Buyers demand licensed Broker representation.
Getting Ready To Sell The House
Just how do you go about preparing your house for sale to the home buying public?
“As Is” seldom works anymore … could also be a potential legal nightmare! You really need to provide a quality Home Warranty.
Setting The Price
Use real estate web sites as a starting point for securing comparable pricing information.
MIBOR.com Realtor.com IndyStar’s HomeFinder.com MSN.com AOL.com Moving.com Zillow.com Trulia.com + up to 62 More
Purchasing Actual BLC/MLS System Comps by Mail or e-mail
Analyze the agents – Interviewing real estate agents.
- The Lifetime of A Real Estate Agent
- Interview agents
- Full Time or Part Time
- True Track Record and Sales Volume
- Trolling Company referrals … WHAT is this?
- Preferred Agents
- What is a ‘Certified’ or ‘Preferred’ Realtor?
- Dishonest Agents
- Agents with NO TRAINING
- Agents with NO MANAGEMENT SUPPORT
Analyze the market – Should you really trust the Agent “Free Market Analysis”
- Nothing is absolutely FREE
- 2015/2016/2017 Figures … Important?
- Competitive vs. Comparative Market Analysis – there is a REAL difference! (And one is illegal in Indiana.)
- High and low limits
Smoke and Mirrors, Bells and Whistles
Services and Freebies and Failures
The Guaranteed Sale Program
- A Good Thing … A Security Net
- A Bad Thing … What Good is a Net with a Large Hole In It?
- A Disaster … There Goes Your Equity and Maybe More
- The Cover-Up
- In Whose Best Interest
List price bidding – the Highest Realistic Price that you should ask
- Play the game
- Price shifting
The Asking Price/Selling Time Curve …how long will it take to sell your house
Home Seller Seminars
Home Buyer Seminars
Pricing your house for the Show Zone.
Will you recover anything from the in-ground pool or will it cost you?
The Selling Time/Cost Curve …what will it cost you to hold the house while it sells and the sale closes.
I Will Buy Your House For Any Price … (the Brooklyn Bridge is for sale too.)
The Asking Price/Selling Time Curve …there are 4 prices on any property
- The holding price
- The marketing price
- The selling price
- The bottom line price
- We can always come down
- Couldn’t we try a higher price for a couple of weeks
- But we have so many improvements in it
- Home Improvement Cost vs. Value Report
- But we paid $ ________ for it
- They can always make an offer
Sliding Scale price reductions
A Marketing Consideration That Often Works
Pricing and Marketing
Setting Up The Marketing Program
Media and Internet Exposure
Pictures – scanner or digital
Internet Exposure – Local and/or National
Showing The House To Prospects
Turn A Prospect Into A Buyer
Just how do you go about actually selling your house to the prospective home buyer?
Follow up with a prospect
- Commission fees – Negotiable ? – Really ?
- Who pays – who really should pay?
Proving value of your property
Price – Sales Price
Who Pays What Costs
- Conventional, Insured Conventional
Amenities and Personal items
Time allowed for:
- Mortgage application and approval
- Closing Date
- Possession Date
- Rent to Buy
- Purchase Agreement
- First Right Contingencies
Attorneys …none, one, two …who pays
Terms of the Sale
Title insurance policy or Abstract of title
Legal description of the property
Survey including easements, encroachments, clouds
Flood zone certification
Assumption of your loan … legal? … or foreclosure!
Selling on contract … legal? … or foreclosure!
Prorating of escrow accounts, homeowner association dues
Prorating of taxes and mortgage interest
Loan prepayment penalties
Who pays what closing costs
Just how do you protect yourself from the buyer who knows more about the buying process than you know about the selling process?
Leveling the playing field
How do you monitor the sale transaction from the signing of the Purchase Agreement until the Closing?
Inspections and repair negotiating
Just how do you protect yourself from a mistake you may have made in the transaction? What happens when 'their' attorney calls?
Renegotiating after the Home Inspection has been completed. How do you handle delays caused by predatory or ineffectual mortgage companies? Frequently, it is not the Buyer’s fault. What they were offering your buyer may have been too good to be true!
- Indiana Department of Financial Institutions
- Indiana Attorney General’s office
How do you insure that the Closing of the transaction will occur properly? Is the Closing of the transaction insured? Can you get a Computer CD filled with all of the factual data from your transaction? How much should it cost you?
Is a Capital Gains Tax in your future?
We, as a very well qualified and experienced Real Estate Company, are quite sure about each and every step of the process …we have 44 years of experience in the real estate business and have closed well over 1,500 homes worth over $111,000,000. We have been successfully offering For Sale By Owners services since 1988.
We offer our expertise to you as a fee-based Consulting Service to step into your transaction at any point. We will write the Purchase Agreement and supporting documents, follow through with Counter Offers, assist with the Inspection Report, review the Title Work and attend the Closing of the Sale (as required by Law).