Listing Your Home
How does the process work?
Different companies require different documents when listing a home but there are 4 important documents that all companies will require you to sign.
The Listing Agreement
First and foremost is the listing agreement. This document explains who is allowed to market your home, how long they are allowed to market it for, what price they are going to market the home at, and how much commission will be paid to the listing brokerage and the selling brokerage.
There are a few very important points here.
First, unless otherwise stated you are granting exclusive right to sell your property for a certain amount of time whether it be 6 or 9 months or a year. It is very important to understand who you will be working with. Is the agent you are meeting with today going to be handling everything? Are other agents/assistants going to be involved in marketing the property for sale? Is the person you are meeting with today going to be your main point of contact and communication? If not who will you be speaking with? Have you met them? How immediate and easy is it to communicate with them?
Teams of agents and assistants are great but if you are going to be dealing with another agent or assistant primarily then you should meet with them and make sure you see eye to eye.
Next, the absolute MOST important item on a listing agreement is the price. Before any property is marketed it is important to be presented with TWO comparative market analyses or CMA. These provide insight to what your home is valued at in the current real estate market. You can get an automated home valuation by clicking here. One should be what has sold in your neighborhood or area in the past 6 months to a year. It is important to have an agent that is familiar with your area so they know how your property will compare to other properties that have sold in your area. That is the only way to properly value a home.
The other CMA should be what current active properties there are in your neighborhood and in your area. This will show what your competition is. The vast majority of buyers shop for homes by price. You need to be able to look at your home and ask “ why should a buyer pick mine over this other home at the same price point?” Do you have a pool? Do you have a large lot? Do you have a 3 car garage? Does your competition have any of these things? All of these things go into the valuation of a home.
It is very important to remember you are giving EXCLUSIVE RIGHT TO MARKET your home for a considerable period of time. You must see the comparables. If an agent tells you they can get you an overly high sales price for your home then I would be careful.
Pricing Your Home To Sell
Ask yourself when was the last time you paid more than sticker price for a car? When was the last time you paid over the sales tag price for an item at the store? Other REALTORS know what your home is worth and will advise their clients if they are about to overpay for a home and even if they were willing to overpay your home still has to appraise!
Everyone should always try to get top dollar for their home and a good agent will always do that. But if a REALTOR comes to your home saying they can get an extra 10% or more of value for your home be cautious because you are giving that realtor exclusive right to sell your property for a long period of time.
If it sounds too good to be true it probably is.
Other Listing Documents
The next document that you will need to sign is what’s called a waiver of warranty or “AS-IS” document. This document is very self explanatory as it basically states that when a home is sold you are no longer responsible for anything that breaks.
You will also need to sign a property disclosure. A property disclosure does exactly what it sounds like, it discloses pretty much everything you know about the property. The age of the home, the age of the air conditioning systems, the flood zone, the size of the lot, whether it has flooded, how old the roof is, whether you have ever had termites, and on down the list. It is extremely important to fill it out as honestly as you because you can be held legally liable if you do not disclose issues you have had with your home.
Finally most brokerages and agents will ask you to sign a dual agency disclosure for your home. This will allow an agent to work as both the listing and selling agent on your property should the opportunity arise.
As long as the agent can remain unbiased and the negotiating process does not become too confrontational I do not believe there is any harm in an agent working both sides. The majority of the time it is actually very beneficial because you know you will be dealing with a quality agent who has an extra incentive to make sure the deal closes. Keep in mind, you hired your real estate agent to sell your home, the dual agency agreement simply lets them do exactly that.
That said if negotiations become overly contentious a good agent will always bring in another agent to work with one side or the other. Getting a deal done is always more important than earning a larger paycheck.
Thanks for your time. Please take a moment to like our facebook page, visit our website at www.1percentlists.com and feel free to share the video if you know someone thinking about selling their home!
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