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.

Cleaning out the house: Garage Sales & Storage Units

Minor repairs, Major repairs …who should be responsible?

Radon and Lead and Mold … Are you culpable ?

Landscaping …little deal, big deal, no deal!

Redecorate, Repainting, Wallpapering, Landscaping… necessary? what colors?

Required: Seller’s Residential Real Estate Sales Disclosure; Lead Based Paint Disclosure

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
  • Missteps

  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

  Pricing Considerations

  • 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

The Tools

For Sale Signs

Stealth Marketing

Handling Objections

Flyers & Flyer Distribution

Pre-sale Inspections

Cell Phones

Video & Virtual Tours

Home Warranty Programs

Answering Machines

Media and Internet Exposure

Pictures – scanner or digital

Single photo & Scan photos – MP3’s

Video Clips

Digital camera

Computer processing program

Internet Exposure – Local and/or National

Great leveler

Web site advertising

Web utilization

Domain name search position

Many web sites

Appropriate web site information

Showing The House To Prospects

This is the fun part … or maybe not!

Just how do you go about ‘safely’ showing your home to what you think is a prospective home buyer? Your Opportunities To Show Your Home will come from  …

  1. Thieves, Drug Addicts, Muggers and More
  2. Prospects who e-mail or text you
  3. Prospects who telephone you
  4. Prospects who knock on your door

Handling your contacts

  • Increasing your Personal Security
  • Showing Instructions and Tips

Suggestions For A Successful Open House

  • Preparation
  • The Open House Day arrives
  • Showing Procedures
  • Closing up for the Day
  • Have your forms ready for the Buyer – Are they legal?
  • Too many people in your house
  • Locking the door

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


  Buyer Agents

  • Commission fees – Negotiable ? – Really ?
  • Who pays – who really should pay?

  Negotiating


  Proving value of your property


  Price – Sales Price


  Property taxes


  Terms


  Who Pays What Costs

  • FHA
  • VA
  • Conventional, Insured Conventional

  Amenities and Personal items


  Time allowed for:

  • Inspections
  • Mortgage application and approval
  • Closing Date
  • Possession Date

  Pre-qualified buyer


  Pre-approved buyer


  Predatory buyer

  • Assumptions
  • Flipping
  • Rent to Buy
  • Contracts

  Completing Forms

  • Purchase Agreement
  • Amendments
  • Addendums
  • Contingencies
  • 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


  Document recordings


  Concessions

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


  Appraisals


  Mortgage processing


  Survey


  Terms


  Title Work


  Closing details


  Homeowner Insurance

What if...

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).