READY TO SELL ??

WHAT TO KNOW 7 Reasons to Work With a REALTOR® 

REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference for home buyers: 

1. An expert guide.  

Selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.  

2. Objective information and opinions. 

REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs® can use that data to help you determine if the property has what you need.

3. Property marketing power.  

Property doesn’t sell due to advertising alone. A large share of real estate sales comes as the result of a practitioner’s contacts with previous clients, friends, and family. When a property is marketed by a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property. 

4. Negotiation knowledge. 

There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows you the flexibility you need to take that next step.

5. Up-to-date experience.  

Most people sell only a few homes in a lifetime, usually with quite a few years in between each sale. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.

6. Your rock during emotional moments.  

A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

7. Ethical treatment.  

Every REALTOR® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment in all transaction-related matters.   

VOCABULARY 

Agency & Agency Relationships 

The term “agency” is used in real estate to help determine what legal responsibilities your real estate professional owes to you and other parties in the transaction.  

The seller's representative (also known as a listing agent or seller's agent) is hired by and represents the seller. All fiduciary duties are owed to the seller, meaning this person’s job is to get the best price and terms for the seller. The agency relationship usually is created by a signed listing contract. 

The buyer's representative (also known as a buyer’s agent) is hired by prospective buyers to and works in the buyer's best interest throughout the transaction. The buyer can pay the agent directly through a negotiated fee, or the buyer's rep may be paid by the seller or through a commission split with the seller’s agent. 

A subagent owes the same fiduciary duties to the agent's customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. The subagent works with the buyer to show the property but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer customer can expect to be treated honestly by the subagent. 

A disclosed dual agent represents both the buyer and the seller in the same real estate transaction. In such relationships, dual agents owe limited fiduciary duties to both buyer and seller clients. Because of the potential for conflicts of interest in a dual-agency relationship, all parties must give their informed consent. Disclosed dual agency is legal in most states, but often requires written consent from all parties. 

Designated agents (also called appointed agents) are chosen by a managing broker to act as an exclusive agent of the seller or buyer. This allows the brokerage to avoid problems arising from dual-agency relationships for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties.  

A transaction broker (sometimes referred to as a facilitator) is permitted in states where nonagency relationships are allowed. These relationships vary considerably from state to state. Generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship. 

WORKSHEET

 Calculate Capital Gains  

When you sell a stock, you owe taxes on the difference between what you paid for the stock and how much you got for the sale. The same holds true in home sales, but there are other considerations. 

How to Calculate Gain 

Your home’s original sales price when you bought it (not what you brought to closing). 

Additional costs you paid toward the original purchase (include transfer fees, attorney fees, and inspections but not points you paid on your mortgage).  

+ 

Cost of improvements you’ve made (include room additions, deck, etc. Improvements do not include repairing or replacing existing items).  

+ 

Current selling costs (include inspections, attorney fees, real estate commission, and money you spent to fix up your home to prepare it for sale). 

+ 

Add the above items to get your adjusted cost basis: = 

 The final sale amount for your home.   

The adjusted cost basis figure from above. - 

Your capital gain: = 

A Special Real Estate Exemption for Capital Gains 

Up to $250,000 in capital gains ($500,000 for a married couple) on the home sale is exempt from taxation if you meet the following criteria: (1) You owned and lived in the home as your principal residence for two out of the last five years; and (2) you have not sold or exchanged another home during the two years preceding the sale. You may qualify for a reduced exclusion if you otherwise qualify but are short of the two-out-of-the-last-five-years requirement if you meet what the tax law calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency. 

HOW TO 

Hold a Successful Garage Sale 

Garage sales can be a great way to get rid of clutter and earn a little extra cash before you move. But make sure you plan ahead; they can take on a life of their own. 

Don’t wait until the last minute.  Depending on how long you’ve lived in your home and how much stuff you want to sell, planning a garage sale can take a lot of time and energy. And that’s on top of the effort of putting your home on the market! 

Contact your local government.  Most municipalities will require you to obtain a permit in order to hold a garage sale. They’re often free or cheap, but the fines for neglecting to obtain one can be hefty. 

See if neighbors want to join in.  You can turn your garage sale into a block-wide event and lure more shoppers. However, a permit may be necessary for each home owner, even if it’s a group event. 

Schedule the sale.  Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early — 8 or 9 a.m. is best — and be ready for early birds. 

Advertise.  Place an ad in the newspaper, free classified papers, and websites, including the date(s), time, and address of the garage sale. Add information about what will be available, such as kids’ clothes, furniture, or special equipment. On the day of the sale, use balloons and signs with prominent arrows to grab attention. 

Price your goods.  Clearly mark rounded prices (50 cents, 3 for $1, or $5, for example) with easily removable stickers. 

If it’s junk, recycle or donate it.  If it’s truly garbage, throw it away or place it in a freebie bin. Don’t try to sell broken appliances, and have an electrical outlet nearby in case a customer wants to try plugging something in.  

Display items nicely.  Organize by category, and don’t make customers dig through boxes. 

Stock up on supplies.  Having a stock of old shopping bags that can be reused encourages people to buy more items. Newspapers are handy for wrapping fragile goods. 

Manage your money.  Obtain ample change for your cashbox, and have a calculator on hand. Assign one person to man the “register,” keeping a tally of what was purchased and for how much. 

HOW TO

 Clean When Your Home is For Sale 

Executing a deep clean before putting your home on the market will not only help it shine, but it will make tidiness easier to maintain between showings. Here are some power-cleaning tips to try.  

Clean windows make a huge difference. 

Remove window screens and place them outside on a tarp or other clean, waterproof surface. Use a garden hose, an all-purpose cleaner, and a soft brush to gently clean the screens. You don’t need anything special to polish up window glass; just mix a solution of one part white vinegar to eight parts water, plus a drop or two of dishwashing liquid in a spray bottle. Wipe with newspaper to avoid streaks. (Washing on a cloudy day also reduces streaking.)  

The fridge is the most common source of kitchen smells.

Check the drip tray underneath your refrigerator and wash out any standing water from defrosting. Scrub the inside of the fridge with a baking soda and water solution. Activated charcoal in the fridge can help keep odors at bay.  

Think outside the house.  

It’s amazing the difference a sparkling entryway makes to your home’s curb appeal. Wipe down your front door, give the doormat a good shake/vacuum, and make sure dust and dirt haven’t collected on outdoor furniture. Use a pressure washer to give your driveway and garage floor a good cleaning. The acidity in dark cola drinks can help remove oil, rust, and grease stains, along with a little elbow grease. 

Target the Bathroom.  

For tile floors, apply your usual cleaner and then run a wet/dry vac, which will suck contaminants out of the grout. Pour a quarter cup each of baking soda and vinegar down the drains, leaving the concoction overnight, then flush with boiling water. Clean soap scum and mildew from plastic shower curtains by tossing them into your washer on the gentle cycle in cold water, with detergent and ½ cup vinegar (if mildew is present, add ½ cup of bleach instead of vinegar). Put a couple of large towels into the machine to act as scrubbers. Allow the curtain to drip-dry on the rod. 

Make your bed better.  

Vacuum mattresses and box springs, and then rotate and flip over. Do the same for removable furniture cushions. This is also a great time to wash or dry-clean the dust ruffle and mattress pad. Add new loft to a lumpy comforter by having two people vigorously shake the quilt up and down to redistribute stuffing. 

Wash the walls. 

Grease, smoke, and dust can adhere to walls and make even the best decorating look dingy. Resist the temptation to spot-clean since it will make the rest of the wall look dirtier. Mop walls using a general-purpose cleaner diluted with hot water. Start at the top corner of the wall to avoid drips. Don’t press too hard, and rinse the mop head frequently in clean water. Use melamine foam cleaner to erase scuffs and stains. 

HOW TO 

Attract More Buyers 

These tips will help you convince buyers your property offers top value for their dollar.  

Amp up curb appeal.  

Look at your home objectively from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, and house number. Observe how your window treatments look from the outside. Something special—such as big flowerpots or an antique bench—can help your property stand out after a long day of house hunting.

Enrich with color.  

Paint is cheap, but it can make a big impression. The shade doesn’t have to be white or beige, but stay away from jarring pinks, oranges, and purples. Soft yellows and pale greens say “welcome,” lead the eye from room to room, and flatter skin tones. Tint ceilings in a lighter shade. 

Upgrade the kitchen and bathrooms.  

These are make-or-break rooms. Make sure they’re squeaky clean and clutter-free, and update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. 

Add old-world patina to walls.  

Crown molding that’s at least six to nine inches deep and proportional to the room’s size can add great detail on a budget. For ceilings nine feet high or higher, consider dentil detailing, which is comprised of small, tooth-shaped blocks in a repeating ornamentation. 

Screen hardwood floors.  

Refinishing is costly, messy, and time-consuming, so consider screening instead. This entails a light sanding — not a full stripping of color or polyurethane — then a coat of finish.  

Clean out and organize closets.  

Remove anything you don’t need or haven’t worn in a while. Closets should only be half-full so buyers can visualize fitting their stuff in.

Update window treatments.  

Buyers want light and views, not dated, heavy drapes. To diffuse light and add privacy, consider energy-efficient shades and blinds. 

Hire a home inspector.  

Do a preemptive strike to find and fix problems before you sell your home. Then you can show receipts to buyers, demonstrating your detailed care for their future home.  

HOW TO 

Use Feng Shui Concepts in Staging

Feng Shui is a Chinese system of beliefs that govern spatial arrangement in relation to the flow of energy or “life force” (known as chi or qi) in a building. Learn how to appeal to buyers who follow such principles. 

Chi flows in.  

Pay special attention to the front door, which is considered the “mouth of chi” and one of the most powerful aspects of the entire property. Make sure the area is swept clean and free of cobwebs and clutter. Ensure all lighting is straight and properly hung. Consider lighting the path leading up to the front door to create an inviting atmosphere. 

Chi can flow out, too.  

Energy can be flushed away wherever there are drains in the home. To keep the good forces of a home inside, always keep the toilet seats down and close the doors to bathrooms.

Consider the bedroom carefully.  

The master bed should be in a place of honor, power, and protection. Place it farthest from and facing toward the entryway of the room. The optimal placement is diagonal in the farthest corner of the room. Paint the room in colors that promote serenity, relaxation, and romance, such as soft tones of green, blue, and lavender. 

Offer a formal dining space.  

The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while also softening sharp corners.

Get a clear perspective.  

Windows are considered to be the eyes of the home. Getting your windows professionally cleaned is a good idea anyway, but for buyers, your home will sparkle all the more brightly and your view will be optimally displayed. 

HOW TO

Prepare for a Short Sale

A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. It’s significantly different from a foreclosure, which is when your lender takes the title of your home through a lengthy legal process and then sells it directly. A short sale is sometimes the route sellers take to avoid foreclosure.

Consider loan modification first.  

Contact your lender to see if it has programs to help you stay in your home. You may be able to refinance your loan at a lower interest rate, switch to a different payment plan to help you get caught up, or secure a temporary forbearance period.  

Hire a qualified team.  

Find a qualified real estate agent and a real estate attorney who both specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Find people who will advise you in your best interests. A qualified real estate professional can give you accurate pricing advice through a comparative market analysis or broker price opinion. The team will also be able to expertly market the home, negotiate complex contracts with buyers, and ease the process of working with your lender(s). 

Prepare a short-sale package to send to your lender(s) for approval.  

You can’t sell short without your lender (and any other lien holders) agreeing to the sale and releasing the lien so that the buyers can get clear title. This is another task where your team will be indispensible. 

Gather documentation before offers come in.  

Your lender requires several documents in order to consider a short sale. This package accompanies the offer, typically including:  

• A hardship letter detailing your financial situation and why you require a short sale 

• A copy of the purchase contract and listing agreement 

• Proof of your income and assets 

• Copies of your federal income tax returns for the past two years 

HOW TO 

Improve the Odds of an Offer 

Price it right.  

Set a price at the lower end of your property’s realistic price range. Consider:

• Comparable properties: A “comp” is what real estate professionals call home sales that can be reasonably used to help determine the price of your home. But just because you’re in the same neighborhood doesn’t mean that the houses will sell for the same amount. Your real estate professional will help you determine how to compare your home in terms of size, upkeep, and amenities. 

• Competition: How many other houses are for sale in your area right now? Are you competing against new homes or condos for sale in the area? 

• Contingencies: Do you have special needs that might turn away buyers? A common one is refusing to be flexible about a moving date

• Asking a lender: Since most buyers will need a mortgage, the home’s sale price should be in line with a lender’s estimate of its value.

• Accuracy: Studies show homes priced more than 3 percent over the correct price take longer to sell. 

Prepare for visitors.  

Get your house market-ready at least two weeks before you begin showing it. Make all your repairs, and then do a deep clean (or hire a cleaning service to help).

Consider an appraisal.  

For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. This is useful for sellers going through a divorce or needing to divide the proceeds for other reasons. Be sure to ask for a market-value appraisal, and find someone who understands the area and type of home you have. Your agent should be able to offer recommendations.

Be flexible about showings.  

Spur-of-the-moment showings are disruptive, and making sure your home is constantly ready to show can be exhausting. But the more amenable you can be, the sooner you’ll find a buyer. 

Anticipate the offers.  

Decide in advance the price range and terms that are acceptable. Be clear with yourself and your agent about what kind of offers you’re comfortable with. It’s critical to know what price you’ll accept before entering negotiations with a potential buyer.

Don’t refuse to drop the price.  

If your home has been on the market for more than 30 days without an offer, be prepared to at least consider lowering your asking price. 

HOW TO 

Recognize a Qualified Buyer 

Offers can be exciting, but unless your potential buyer has the resources to qualify for a mortgage, you may not really have a sale. Your real estate professional will try to determine a buyer’s financial status before you sign the contract. But it’s good for you to know what buyers with follow-through potential looks like. 

They are prequalified—or even better, preapproved—for a mortgage.  

Such buyers will be in a much better position to obtain a mortgage promptly. 

They have enough money to make a down payment and cover closing costs.  

Ideally, buyers should have 20 percent of the home’s price as a down payment and between 2 percent and 7 percent of the price to cover closing costs. If they plan to make a smaller down payment, they will need to purchase mortgage insurance, through either a government guarantee program or a private mortgage insurer. Their ability to provide earnest money in a timely fashion will be an indicator of liquid reserves. 

Their income is sufficient to afford the home over the long term, too.  I

deally, buyers should spend no more than 28 percent of their total income to cover the principal, interest, taxes, and insurance associated with the sale (often abbreviated as “PITI.”) 

They have good credit, which they are monitoring and maintaining.  

They will have recently reviewed their credit report and have actively worked to correct any blemishes or errors found.

They’re not managing too many other debts to take on a mortgage.  

If buyers owe a great deal on car payments, credit cards, and other debts, they may not qualify for a mortgage

CHECKLIST 

Prepare for Your Move  

Update your mailing address at usps.com or fill out a change-of-address form at your local post office.   

Change your address with important service providers, such as your bank(s), credit companies, magazine subscriptions, and others.  

Create a list of people who will need your new address.  Whether you plan on sending formal change-of-address notices in the mail or just e-mailing the family members, friends, and colleagues who should be informed, a list will ensure no one gets left out.  

Contact utility companies.  Make sure they’re aware of your move date, and arrange for service at your new home if the service provider will remain the same.   

Check insurance coverage.  The insurance your moving company provides will generally only cover the items they transport for you. Ensure you have coverage for any items you’ll be moving yourself.  

Unplug, disassemble, and clean out appliances.  This will make them easier to pack, move, and plug in at your new place.  

Check with the condo board or HOA about any restrictions on using the elevator or particular exits or entrances for moving, if applicable  

Pack an “Open First” box.  Include items you’ll need most, such as toilet paper, soap, trash bags, chargers, box cutters, scissors, hammer, screwdriver, pens and paper, cups and plates, water, snacks, towels, and basic toiletries. 

If you’re moving a long distance:  

Obtain copies of important records from your doctor, dentist, pharmacy, veterinarian, and children’s schools.  

E-mail a copy of your driving route to a family member or friend. 

 Empty your safe deposit box. 

HOW TO  

Pack Like a Pro 

Plan ahead. Develop a master to-do list so you won’t forget something critical heading into moving day. This will also help you create an estimate of moving time and costs. 

Discard items you no longer want or need. Ask yourself how frequently you use an item and how you’d feel if you no longer had it. Sort unwanted items into “garage sale,” “donate,” and “recycle” piles. 

Pack similar items together. It will make your life easier when it's time to unpack. 

Decide what you want to move on your own. Precious items such as family photos, valuable breakables, or must-haves during the move should probably stay with you. Pack a moving day bag with a small first-aid kit, snacks, and other items you may need before unpacking your “Open First” box.  

Know what your movers will take. Many movers won’t take plants or liquids. Check with them about other items so you can plan to pack them yourself. 

Put heavy items in small boxes. Try to keep the weight of each box under 50 pounds. 

Don’t overpack boxes. It increases the likelihood that items inside the box will break. 

Wrap fragile items separately. Pad bottoms and sides of boxes and, if necessary, purchase bubble-wrap or other packing materials from moving stores. Secure plants in boxes with air holes. 

Label every box on all sides. You never know how they’ll be stacked. Also, use color-coded labels to indicate which room each box should go in, coordinating with a color-coded floor plan for the movers. 

Keep moving documents together in a file, either in your moving day bag or online.  Include vital contact information, the driver’s name, the van’s license plate, and the company’s number. 

Print out a map and directions for movers and helpers. Make several copies, and highlight the route. Include your cell phone number on the map.  

Back up computer files on the cloud. Alternatively, you can keep a physical backup on an external hard drive offsite. 

Inspect each box and piece of furniture as soon as it arrives. Ahead of time, ensure your moving company has a relatively painless process for reporting damages.  

HOW TO 

Move With Pets 

Update your pet’s tag with your new address.  Make sure your pet’s collar is sturdy and correctly sized. The tag should also include your mobile number and e-mail address so that you can be reached during the move. 

Request veterinary records.  Ask your current vet to send your pet’s medical history directly to the new vet. Have their contact information handy in case of emergency or if the new vet has questions. 

Keep a week’s worth of food and medication with you.  You may want to ask for an extra prescription refill before you move. Take the same precaution with special therapeutic foods. 

Seclude them from chaos.  Keep your pet in a safe, quiet room on moving day with a clear sign posted on the door. There are many light, collapsible travel crates available, but ensure it is well ventilated and sturdy enough for stress-chewers. Also, introduce your pet to the crate before the trip.  

Prepare a pet first aid kit.  Include your vet's phone number, gauze to wrap wounds or to muzzle your pet, adhesive tape for use on bandages, nonstick bandages, towels, cotton swabs, antibiotic ointment (without pain relief medication), and 3% hydrogen peroxide.  

Play it safe in the car.  Use a crate or carrier in the car, securing it with a seat belt. Never leave your pet in the bed of a truck, the storage area of a moving van, or alone in a parked vehicle. If you’re staying overnight, find pet-friendly lodging beforehand and have kitty litter or plastic bags on hand. 

Get ready for takeoff.  When traveling by air, check with the airline about pet requirements or restrictions and whether you must purchase a special airline crate that fits under the seat in front of you. 

Prep your new home.  Set up one room with everything your pet will need: food, water, medications, bed, litter box, scratch post, and toys. Keep windows and doors closed when your pet is unsupervised, and beware of small spaces where nervous pets may hide. If your old home is nearby, give the new home owners or neighbors your phone number and a photo of your pet, in case your pet tries to return. 

Learn about local health concerns and laws in your new area.  If you’re moving to a new country, contact the Agriculture Department or embassy of the country to obtain specific information on special documents, quarantine, or costs related to bringing your pet into the country.