Home Seller's Guide

On the Market

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.”

Property Profile Folder
The listing broker will prepare an information folder on your property with the following information:

• Pay-Off Notice – This is a signed letter notifying your lender you intend to pay off the mortgage. The broker will then mail the letter to your lender to help you minimize any prepayment penalties. Also provide your lender’s address, loan balance, assumability, years remaining on present mortgage, and the interest rate, if possible.
• Well and Septic Inspection – If your property relies on a septic tank or well water, current inspections by local health authorities are required while the home is still occupied. The listing broker will usually arrange for the inspection after a contract is ratified.
• Lender Appraisal – Lenders require a home appraisal to ensure that the property is adequate collateral for a loan. A lender will usually insist on ordering its own appraisal for this purpose.
• Assessments/Easements – The listing broker will ask you if any tax assessments or easements exist on your property that must be paid or included in the purchase contract and passed with the land when sold.
• Property Taxes, Condominium Fees – You must provide a record of property tax or condominium fee payments. The buyer will reimburse a pro-rated share of these payments to you at settlement.
• Inspections – The VA, FHA, and most lenders of new mortgages require a termite inspection certificate that shows the house is free of infestation. If you do not have a current certificate, the listing or selling broker will arrange an inspection at your expense. Sometimes a home inspection and radon testing will also be ordered. You should provide all information regarding the physical condition of the property, such as the presence of fire retardant plywood.
• Utilities – Most buyers will want to know a history of utility costs. You should provide a record of the past 12 months’ utility bills, including gas, electric, sewer, water, and trash where applicable.
• Other Helpful Documents – If possible, you should also provide the listing broker with the following documents:
  • Deed
  • House location survey
  • Condominium bylaws or homeowners association documents
  • Subdivision plat map
  • House floor plan
  • Previous title search abstracts
  • Legal description of property (subdivision, section and lot)
  • Home warranties on major systems
  • Copy of homeowner’s insurance policy

Personal Property
You must be ready to supply your listing broker with a specific list of the personal property that is included, or conveyed, in the sale. These items can include light fixtures, drapery rods, appliances, firewood, and even swimming pool chemicals. You should tag or remove items you do not wish to convey.

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.

Getting Ready

 Today, the home that stands out among similarly-priced houses is the home that sells. Why? Because it makes a good first impression that lasts right to the settlement table.

You may not be able to improve the market value of your house with major remodeling projects, but you can improve its marketability. This usually can be done with more elbow grease than hard cash. The key is to put yourself in the buyer’s shoes. In fact, if you drop by some open houses (you may soon be a buyer yourself), you’ll pick up some pointers. Then practice making your house as appealing and uncluttered as the home you wish to buy.

Should I redecorate?
No. It is very difficult to anticipate the tastes of strangers. It is best to stick to fresh paint in very neutral colors and present a sparkling clean house without the redecorating expense.

Is it possible to over improve?
Yes. Your landscaping may be divine. You may have the only cabana and swimming pool in the neighborhood, but it may be difficult to sell a $450,000 home in an area of $420,000 homes. Consult your listing broker to determine if added improvement means added marketability.

Are \"fixing up expenses\" tax deductible?
Yes. You can reduce your taxable capital gain by “fixing up,” but only under strict guidelines. Check with your tax consultant for details.

Here are some home selling tips think about when you\'re getting ready to put your house on the market:

Exterior
Start here with “curb appeal.” Basics: Mow the lawn and trim shrubs. Remove garden hoses, lawn tools, dog houses, and toys from the yard. Check for flat-fitting roof shingles; straight lines on gutters, shutters, windows and siding; solid caulking around frames and seams. Clean, or even paint, the front door. Keep walks and steps free of snow and ice. Extras: Install a brass door knocker. Put up seasonal door decorations. Plant flower beds.

Front Hall
The atmosphere here gives a hint of what is inside. Basics: Light the area using a skylight, lamp, overhead fixture, or open window. Turn on every light in the house in the evening for a welcoming glow. Make sure the house smells fresh and clean. Make sure that the woodwork is unmarred and the carpeting is spotless. Remove unsightly or worn throw rugs. Extras: Install a door chime. Install a dead bolt lock and chain.

Kitchen
Many buyers judge the house by the way the oven and stove are kept. Basics: Appliances should be spotless and in perfect working condition. Repair or replace anything that sticks, squeaks, or drips. Keep counter, cooking, storage, and eating spaces uncluttered. Put away countertop appliances. Clean butcher block. Treat the floor and walls so they are resistant to grease and moisture.

Living Room
Strive for a lived-in, cozy feeling. Basics: Discard worn, chipped, or frayed furniture. Open curtains. Set out fresh flowers, and even put a drop of bath oil or vanilla on light bulbs for a subtle scent.

Master Bedroom
The master bedroom is the second-most appealing room to the buyer (after the kitchen, before the garage). Basics: Remove clutter. Arrange furniture to define areas: sleeping, dressing, sitting. Show the true size of closets by removing or packing items that can be stored elsewhere (since you’re moving away), like off-season clothes.

Bathrooms
Combine practicality with attractiveness. Basics: The sink, toilet, bathtub, tile, even shower curtains should be immaculate. Fix leaky faucets—rust stains indicate faulty plumbing. Repair caulking and grouting. Light should be soft, but bright. Extras: Use some potpourri for a pleasant scent.

Recreation Room
An atmosphere of relaxation, fun and activity should pervade here. Basics: Open the space to accommodate an assortment of activities. Make sure the fireplace or wood stove is clean, with fresh logs. Extras: Install track lighting and ceiling fans.

Garage
Convenience is the key here. Basics: Sell, giveaway, or toss unnecessary items. Tidy the workbench. Clean oily cement floors. Install a strong overhead light.

Basement
Organize, hang tools on peg boards, and put items on shelves. Basics: Cure smells by placing a bag of limestone in any damp areas. Clean the outside of the water heater, change the furnace filter and make inspection access easy. Brighten the basement by painting walls.

Attic
Yes, it’s for sale, too. Tidy it up. Light it up. Basics: Again, pack anything you’re going to move. Get rid of the rest. Be sure your energy-saving insulation is apparent and the air vent works.