Your Seller’s Agent
I can assist you with the sale of your home. With many years of experience, I can help you price your home and set it up for the quickest sale. Contact me directly or click here to learn more.
Frequently Asked Questions
Sellers want top dollar for their home and usually wants a home sold very fast. There are some tricks and techniques to help facilitate this to go as quickly and smoothly as possible. Here are some answers to many frequently asked questions.
What is a FSBO?
A FSBO is a For Sale By Owner. This is when the seller decides to sell their home on their own. They typically feel that they can do a better job than a REALTOR® can do. And the seller is attempting to avoid paying a commission to either the Listing agent or the Buyer’s agent.
In most cases when a person is trying to sell this way and since he is not having any form of representation they tend to actually net a lot less than if they were to have it listed. This reason is that sellers are usually unfamiliar with all of the steps that are involved in the selling of a home. Plus, they are only advertising through their own sphere of influence.
A REALTOR® has the luxury of using the MLS which all the other real estate agents in town can now see and use.
Should I do a FSBO or use a REALTOR®?
There are definitely pros and cons to either. In my opinion, the FSBO can be the one that costs a whole lot more to the seller.
The main reason a seller may want to go the route of doing a FSBO is to save on the commissions paid out to the two brokers and agents. This could be 4 – 7% of the total sales price typically paid out in commissions. This can be a significant amount of money especially if your margins are tight.
To play Devil’s Advocate, the REALTOR® specializes in the purchase and sale of a home. They know the paperwork involved. They understand the process. And they know what to do if something were to begin to go sideways.
The biggest advantage is the marketing aspect. If a seller is going to sell via a FSBO then that seller is putting up their own sign in the yard and creating their own ads for online advertising or even print media.
If a REALTOR® is involved then that agent has access to the MLS (Multiple Listing Service). When he lists that home on the MLS then every active agent now has access to it. Not only that agent, but also every client that each of those agents have. Thus, you could have thousands of people now seeing the home that would not have seen it in the first place.
What should I do before listing with an Agent?
You will want to interview your possible agents who can assist you in achieving your goals. Every agent is different and every home is different. You want to make sure the agent and home are a good match.
The first thing is to define what are your goals on the sale? What will you do once the home sells? Where will you live? Do you want to make more than the purchase price? There are a plethora of things you need to think about before selling? You do not want to be starting to cross that bridge on the day you have to move out.
Investors call this their “exit strategy”. What is your exit strategy or strategies that you are open to taking?
Once I pick a REALTOR®, now what?
As a Listing Agent, I will review values and all the potential exit strategies that you as a seller can be open to. This is more than just sell it, take the money and run.
If you want more than just the cash sales price we can review creative strategies like Seller Financing and Lease Options. These are topics I cover when speaking as the Creative Agent.
If you need all of the profits now because you are using that toward another place then we can talk either about an investor’s 1031 Tax Deferred Exchange or about buying a home contingent on your home selling (prior).
After all of the terms are set and contracts are signed then we need to start working on staging your home.
All of these and more are covered in this Article.
Should I stage my home? I am already living in it.
Before I put any home on the MLS, I will need to get photos of the inside and outside of the home. This is one of the most critical and often overlooked step.
A pretty home will sell a lot quicker than an ugly or dark one. Especially, if you want to get top dollar. Too many times have I looked on the MLS to see dark, dingy pictures. Or ones with poor lighting or taking pictures of a lot of clutter. All of those will make it harder for someone to fall in love with your home.
If you were to go and look at homes for sale in builder’s communities you will see staged homes that look inviting and pleasing. You don’t see them with a lot of knickknacks around.
When you are selling your home you want to keep it clean and organized. Go ahead and put away all of the personal pictures. Pack all of the clutter items away.
Then the agent can come by and take photos of the home (or have it done by a professional). All rooms need to be organized and well lit. No people or animals in any of the photos.
Once the home is listed the agent will have 24 hours to get at least one photo up. I prefer to have at least 2 to 3 photos at different angles of every room. This will help with someone looking online to get the flow of the home.
The more your home looks like it is staged the more appealing it will be. Less is more.
When do I have to be moving out?
Most contracts between buyers and sellers say that the buyer has to be moving out by COE (Close of Escrow). This means once the home closes and records with the local recorder’s office then the title has changed hands and now the new owners own the home.
In most cases, when an owner occupant buyer buys a home they will want to move in that same day.
Thus, the seller needs to have already moved out.
However, real estate contracts do allow for the seller to rent back the home or it could even have it where the buyer is moving in early. All contracts are different and this needs to be discussed with your agent before listing it for sale.
It is best to start packing before and/or during the listing period.
How much is my home worth?
This is a great question! I know you want to sell your home fast and also to get the most bang for the buck. Then you will want to ask your local REALTOR® just how much can you get.
Here are a few things that we will have to consider.
- What are the comparable home sales (i.e., “comps”) for your area of town? I like to keep this either in the same subdivision or close by without crossing any major or semi-major street. These are the homes that have already closed.
- What pros and cons your home has in comparison to the neighboring homes? This can include the type of flooring, countertops, pools, decks and other associated features.
- What state of repair is your property in? Is it a gut job rehab, a pristine palace, or somewhere in between? This is one you have to look at it from a buyer’s eye. You cannot look at it from your own perspective. Talking with an agent can help with this potential question.
- How long have homes been sitting in the area (called “DOM” or “ADOM” for Actual Days on Market)? This date is the date from listing to today (DOM) or the number of days from listing to accepting an offer (ADOM). The longer a home sits the more questions a potential buyer will have.
- Does your home have some great community features that another subdivision may not have? Are you on a golf course? Are there community features like pools, spas, workout rooms, etc.?
Give me a call to discuss. I will be happy to do a quick comparable analysis or even to create a detailed Comparable Market Analysis (CMA).
How accurate is Zillow?
Both Zillow’s Zestimate and Redfin’s Estimate are getting better with technology. However, there is still a range of error with either site.
According to the Washington Post Zillow’s margin of error in 2019 is getting close to 4.0%. They have been getting better from a few years ago where it was closer to 10 or even 20% error.
Think about that for a moment. A 4% margin of error means it can swing 4% high or 4% low. That is actually an 8% swing in error.
According to the article, this is a passable margin claimed by real estate appraisers.
In my opinion, it is always best to talk to a REALTOR®.
What will it cost me to sell my home?
This question has a few variables in it. And it depends on if we are in a Buyer’s market, a Seller’s market, or a neutral market.
When selling it will depend on a few factors. These factors will change depending upon what is going on in the current market.
Typically, you can expect around 2.5% – 3.0% directly in costs. This will include the transfer taxes, HOA payments, and other title fees.
The next is going to be the costs for the use of REALTORS® and their associated brokerages. This amount can have a wide range of values. Often, in the Las Vegas market, you will see around 4 – 6%. This can be higher or lower depending on what the listing company will be doing. Also, the buyer’s agent is being compensated as well.
Other factors can include if the seller is agreeing to pay for any of the buyer’s closing costs (you will see this often in a Buyer’s market when homes are sitting longer). These costs can include home warranties, repair allowances, and other items too.
I typically tell people to expect about 9% of the purchase price to be a fair estimate.