Steps to Selling Your House:
Most people use a Realtor to help them find a buyer for their
home. If you want to sell your home yourself then it is
important to have an attorney who handles real estate matters to
look over your contracts. A lot is at stake when selling your
home and a lot can go wrong. It is not just a matter of finding
a buyer. Some people are knowledgeable enough to handle all the
details but most people are not.
1) Signing a listing agreement. This is an agreement between
your real estate agent and you. It will define the length of the
agreement. Most brokers will want an exclusive listing meaning
you cannot use another real estate agent during the specified
time. This is important as there is a lot of work and expense to
selling your home so in order for the Realtor to do a good job
for you they need to know they have your commitment to work with
them. A usual listing period is around 6 months but you can
negotiate 3 months to allow more flexibility to fire a broker
you are not satisfied with. You should also consider how long it
will take to sell your home. If it takes 6 months than you
should give your real estate agent 6 months as well. Even if you
find your own buyer during that time, you will owe a commission
to the Realtor. The other part of the listing agreement
specifies the amount of commission you will pay the Realtor. A
typical commission is 6-8% of the selling price of the home. The
listing broker will give around half of their commission to the
buyer’s broker. Commissions are paid at closing and in most
cases you will not owe any commission if the property doesn’t
sell.
If you do not want to use a broker, then you will need to have
important information on other issues like home disclosures,
lead base paint disclosures, anti-discrimination laws, title
insurance and zoning regulations. Being ignorant on these issues
could be a costly mistake. There is a lot more involved that
just swapping a check for a deed.
2) Purchase and Sale Agreement. This is the most important
document in the transaction. This document lays out all the
terms of the sale. If you are using an agent, he/she will
present this document to you to accept or reject. If you are not
using a broker then it is even more important for you to have an
attorney look over the contract or prepare the document for you.
Standard parts of a sales agreement will provide for earnest
money, what is included regarding appliances, window treatments,
light fixtures, sheds, what inspections will be necessary, who
pays for repairs, who pays for the transfer of the deed, what
happens when the buyer can’t get financing or wants to back out.
These are all items that need to be clearly addressed.
3) If you are trying to sell your home by yourself and you do
not already have a buyer, then you will want to list your home
on the MLS (multiple listing services) in your area. In order to
do this you will have to pay a Realtor or someone licensed to do
this. This is where all Realtors look to find homes for their
buyers. Also if you do not offer a commission to the buying
Realtor, then you will not have any realtors bring their buyers
by to look at your home. Keep in mind you will also be the one
having to show your home to every potential buyer. Buyers are
often not comfortable looking at a home when the owner is
present.
If you are determined to sell your house without the help of a
Realtor, be aware that statistics show that those using a
Realtor get more for the price of their home than those who
don’t use a Realtor. Of course you may be that rare
seller.
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