On the Market

Before you put your house on the market, it is important to understand who is 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 RECCMOX sales associate, RECCMOX 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 have 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.

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, and 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.

    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: o Deed o House location survey o Condominium bylaws or homeowners association
     documents o Survey o Previous title search abstracts o Legal description of property (subdivision,
     section and lot) o Home warranties on major systems o Copy of homeowner is 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.

Lock boxes
A lock box 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