HowardLerner.com

Selling Guide

Experience has taught me that every home sale is unique. Yet every sale shares a common process. For specific answers to your specific situation, I am happy to assist you.

You want the best selling price - with the least hassle - in the shortest period of time.

Listing Your Home

The first step toward putting your house up for sale is to meet with me at your home. What we call the "listing appointment." But beforehand, it's important to understand "who's who" and how brokers may cooperate to sell your house.

Listing Broker and Listing Agent
An individual real estate broker whom the seller hires to represent the seller through a contract called a "listing agreement". The listing agent is associated with the listing broker. The listing broker is directly paid the listing commission at closing and then splits the commission with the listing agent. (Although the broker and agent may be two different individuals, the term "broker" is used throughout this Guide for simplicity.)

Selling Broker or Selling Agent
In a "cooperative" sale, the house is listed by one broker and a buyer is provided by another broker. The selling broker receives the selling side of the commission. If the listing broker also produces the buyer, then the listing broker receives both listing and selling sides of the commission. A selling broker may have a signed buyer representation agreement with a buyer and, therefore, represents the buyer and not the seller. If the buyer's agent is a Long & Foster agent, Long & Foster becomes a dual agent with the consent of both buyer and seller. Different states have different laws and terms governing this, but my intent is to give you a general understanding.

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There's No Place Like Home

At the listing appointment, the listing broker will want to inspect the house and yard to become familiar with its special features.

You have probably enjoyed living in your home and have been pleased with its many unique features. Your listing broker will want to tell prospective buyers about the special features of your home and neighborhood.

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.

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Demand Sets Price

After conferring with the listing broker on market conditions, comparable nearby sales and listings, and available financing, the home seller will set the listing or "asking" price for the house.

A common definition of market value is: "What a ready, willing and able buyer will pay, at a price a seller will accept." Metropolitan area buyers are sophisticated. They've already been shopping, and when they see your home they'll be comparing features and financing.

There's a rule of thumb that says: "A house priced more than 5% over market value discourages offers." Buyers who can afford the price can get "more house" for their money elsewhere. Buyers who cannot afford the price simply won't look. This is why we say, "A house priced right is half sold."

A fair market value will be determined by comparing the property with similar properties which have recently sold and (in some cases) with similar properties currently on the market. Experience in the industry has proven this "market analysis" approach is more accurate than the "replacement cost" or "potential rental income" methods.

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Sample NET SHEET

Based on the list price, the listing broker will go through a worksheet that estimates the "net cash" from the sale. Simply, this exercise subtracts anticipated charges paid by the seller from the sales price. A copy of the "net sheet" is left with the home seller.
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Financing Strategy

Most sales can not be completed without financing from a bank or lending institution. That is why it is generally to the home seller's advantage to appeal to the greatest number of home buyers by accepting the greatest range of financing plans. The listing broker will explain the ramifications of different types of offers and contingencies that will impact your sale.

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What is a Point?

A point is one percent of the amount of the buyer's mortgage loan. For example, if a loan is $500,000, one point is $5,000. Lenders charge points to increase the yield on their loans.Home buyers and home sellers may share the charges by mutual agreement.

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What Conveys?

The broker will assist the the home seller with a specific list of the personal property that is included in the property for sale. Examples of items to "convey" may include: draperies, drapery rods, washer, dryer, refrigerator, stove, microwave, disposal, swimming pool chemicals, awnings, storm doors and windows, screens, venetian blinds, shutters, window air conditioners, etc. The seller will inform the broker about items which will not convey.

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Listing Agreement

When the home seller is ready to put the house 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 and listing agent.

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Questions and Answers

What is a "Lockbox"?
A lockbox is a universal metal container for your house key that is hung on the front door and can only be opened by a special key carried by licensed sales agents. It provides access when the owner is away, thus assuring full exposure to prospective buyers.

Do certain geographical areas have unique home selling requirements?
Yes. Home selling requirements vary from state to state and county to county. This is a very general guide designed to start you in the home sale process. Please contact me for a face-to-face meeting to provide you a better opportunity to learn the process as it works today.

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Contact Information:

Howard Lerner, Associate Broker, REALTOR® DC MD VA
Long & Foster Real Estate, Inc.
Bethesda Avenue Office
4733 Bethesda Avenue
Bethesda, MD 20814

240.497.1700 Main Office
240.497.4061 Voice Mail
301.775-6869 Cell

howard@longandfoster.com

Please Note: Email is not perfect. If you do not receive a reply within 24 hours - please call me!!

	Associate Broker: DC MD VA
* Winner: Long & Foster Outstanding Service Award - Bethesda *