Listing Your Home
- Placing Your Home on the Market
- A Little Homework
- Your Home’s Special Features
- Property Profile Folder
- "What Conveys?"
- Comparative Market Analysis
The first step toward putting your home up for sale is to meet with your HUMMINGBIRD Executive at your home. This meeting is referred to as the "listing appointment". Beforehand, it is also important to understand “who's who" and how brokers may co-operate to sell your home.
An individual real estate broker whom the seller hires to represent themselves through a contract called a "listing agreement". The listing Sales Representative is associated with the listing broker. The listing broker is directly paid the listing commission and then splits the commission with the listing Sales Representative.
An individual who produces a buyer for the property and divides the commission with a listing broker. Such a transaction is considered a "co-operative" sale because the house is listed by one broker and a buyer is provided by a second broker. If the listing broker also produces the buyer, then the listing broker receives both listing and selling sides of the commission.
A Little Homework
Before the listing appointment, both the home seller and your HUMMINGBIRD Executive have some homework to do. While the home seller collects a list of documents requested by the HUMMINGBIRD Executive, the Executive studies recent area sales of homes comparable to the seller's, and also comparable homes currently for sale.
Your Home’s Special Features
At the listing appointment, your HUMMINGBIRD Executive will want to inspect the entire home and yard to become familiar with its special features and exact floor plan. You have probably enjoyed living in your home and have been pleased with its many unique features. Your HUMMINGBIRD Executive will want to tell prospective buyers about the special features of your home and community. Be ready to be specific about schools, churches, daycare, nearby metro, 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 homes for sale in the area. Be sure to tell your HUMMINGBIRD Executive why yours is special, from any home remodeling to afternoon winter sunshine.
Property Profile Folder
To enable your HUMMINGBIRD Executive to prepare a ‘Listing Package’ on the property, the home seller needs to provide a number of documents and information specific to the location and jurisdiction. This ‘Listing Package’ is often provided electronically to prospective selling Sales Representatives. Because the list is long, you can understand why it is best to collect the papers before the listing appointment. These materials may include:
Septic and Well Inspection
If property is on septic/well, current inspections by local health authorities are required while the home is occupied. Your HUMMINGBIRD Executive will usually arrange for inspection after the contract is approved.
Order Lender Appraisal
Lenders usually require an appraisal to assure that the property is adequate collateral for a loan. Appraisal may be ordered before (paid by seller), but is more often done after an "offer to purchase” is accepted (paid by buyer).
Your HUMMINGBIRD Executive will ask the home seller if any tax assessments or easements exist on the property that must be paid or included in the purchase contract and passed on with the land when sold.
Property Taxes/Condominium Fees
The home seller provides a record of property tax or condominium fee payments which the buyer will reimburse on a prorate share to home seller at settlement.
Many lenders of new mortgages may require an inspection certificate that shows the house is free of major defects.
The home seller should also provide a record of the past 12 months’ utility bills, including gas, electric, sewer, water, and trash where applicable. Most buyers will want to know the history of utility costs.
If possible, the home seller should provide your HUMMINGBIRD Executive with the deed, house location survey, condominium bylaws or home owners association documents, subdivision map, house floor plan, previous title search abstracts, legal description of property (subdivision, section and lot), warranties on major systems or Home Owners Warranty, if still in effect, and copy of home owners insurance policy for endorsement in purchase contract.
In anticipation of a buyer's offer, the home seller must be ready to supply your HUMMINGBIRD Executive with a specific list of the personal property that is included in the real estate property for sale. Examples of items to "convey" may include: draperies, drapery rods, remaining heating oil, firewood, washer, dryer, refrigerator, stove, microwave, disposal, swimming pool chemicals, awnings, storm doors and windows, screens, blinds, shutters, window air conditioner, etc. Home seller should tag or remove items which do not convey.
When the home seller is ready to put the home on the market, the listing agreement is filled out indicating a specific period of time the agreement is in effect ("listing period"), and signed by the seller. You've now hired a listing broker.
Comparative Market Analysis
Maximizing Market Value
Preparing a Comparative Market Analysis (CMA) is an important tool your HUMMINGBIRD Executive will use to help you earn the highest possible price for your home. A CMA involves looking at the public records of real estate business in your community to better understand market conditions.
There are four steps your HUMMINGBIRD Executive will take in preparing your home’s CMA:
- Your HUMMINGBIRD Executive will consider the amount paid for at least 3 recently sold homes in your community. These homes will be comparable in size to yours and together comprise a factual record of what buyers will pay.
- Your HUMMINGBIRD Executive will then consider the asking prices of at least 3 presently listed homes in your community. Because these homes are similar to yours, these homes will be the benchmarks against which your home will be priced.
- Your HUMMINGBIRD Executivewill then consider the asking prices of at least 3 homes in your community that went unsold for at least 90 days. Similar to your home, these homes illustrate the dangers of overpricing your property.
- Finally, your HUMMINGBIRD Executive will use all the price information gathered to arrive at an ideal asking price for your home.