Answers Your Listing Agent Should Provide!
Important questions your Listing Agent should answer!
1. How is sales price calculated?
Every good Listing Agent will tell you there are several factors that go into determining a value. Similar or comparable homes (comps) that have recently sold in your area, is a basic gauge. The asking price of comps currently offered should be considered. It is also important to know the construction cost of a house like yours in the current market. Of course, the condition of your home has great influence on it’s value.
2. Are Improvements and Upgrades Needed?
Any experienced agent will identify things that need to be spruced up in order to get you the best price. You might not want to invest in major upgrades because you might find it hard to recover that cost. Some of the most cost-effective changes with the highest value surround curb appeal (the way the home looks from the street). You might consider a fresh paint job or adding shutters. Lawns and vegetation can completely transform the “curb appeal” with relatively low cost.
if you are not able or not willing to make the recommended upgrades, they are certainly not required. Simply understand that an as-is sale will affect the price you can expect to get regardless of overall condition. There is also a chance that lenders may require certain improvements before they will finance your buyers purchase. This is especially true of major items such as roof condition and any structural issues.
3. How will your Agent Market Your House?
Your house should be deep cleaned and otherwise prepared to show before any potential buyer ever sees it. You may want to add some new furnishings and “stage” the house to look it’s best. The best listing and sales agents will know how to guide you and will help you get ready. Marketing may begin with a “coming soon” listing in the local MLS.
Any good listing agent will market your house by always highlighting it’s best features. If your home is ready immediately, it may be as easy as good signage and pictures (or a virtual tour video). More elaborate possibilities include things such as drone video of the home and neighborhood. A well written description of the offering is critical. In most cases your agent is up to this task and knows exactly what to say. It is important to get your agent to fully explain their exact plan and the steps they will take to sell your house fast and get the best price.
4. The Sale is in Escrow. Now What?
These steps are what will occur in most cases:
- An inspection by a certified home inspector is customarily the first step. He or she will look for everything from major structural issues to more superficial items. Keep in mind that it is extremely rare that the inspector will not have some things noted that need repair. Do not be defensive or upset by this.
- You may be asked to leave the home during the inspection. This is perfectly normal.
- The inspection results are given to the buyers agent and the buyer. It is up to the buyer to decide if these items are critical to their purchase of the house.
- The buyer will usually then request any repairs be made that they deem necessary.
What if I don’t want to make repairs?
- You may say yes or no. You are not obligated to say yes to these requests but this is a normal part of negotiations. If you say no, it is the buyers right to walk away from their offer to buy. Your agent can help you evaluate these requests and if you should accept them or not. If you refuse to do these repairs and the offer is withdrawn, you can put the house back on the market.
- If you say yes to these requests, you have some options to help deal with them. Pay for the repairs before closing or do minor repairs yourself. You can also simply lower your price or provide cash to the buyer to cover repairs. It may be required by a lender that you hire a licensed contractor for any major items. This provides additional protection for both the lender and the buyer.
- If there are actual items that should be repaired, the next inspector will no doubt find them also. Major structural problems may have to be disclosed to future buyers to protect you from legal issues.