SELLING GUIDE

PLANNING THE SALE	YOUR CLOSING COSTS
THE BEST WAY TO SELL YOUR HOUSE	THE LISTING AGREEMENT
THE RIGHT PRICE	REVIEW FINANCING OPTIONS
PROFIT	PREPARING TO SELL
TAX FACTS	SOLD!

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PLANNING THE SALE

Start with an overall view of what selling a house involves:

Choose the best real estate sales professional

Determine and set the right price

Sign the listing agreement

Review financing available to potential buyers

Arrange for pest/termite inspections

Make major repairs

Clean and polish the house

Be patient while the house is shown and marketed

Negotiate offers

Close the deal

Move

THE BEST WAY TO SELL YOUR HOUSE

Once you have made the initial decision to sell, you will immediately be faced with another tough question - is it best to hire a real estate sales associate or try to sell the house yourself?

To sell and market a house requires specialized skills, is time consuming, and costs money. Are you prepared to buy advertising space? Advertising is one way to let the buying public know your house is on the market. If not, can you afford the time it will take to sell your house with only a sign in the yard? Are you willing to stay close to home for days, weeks, maybe months to show your house? Do you possess the necessary legal and financial knowledge to answer the buyer's questions, negotiate a contract, or close a sale?

If you answered "No" to any of the above questions, perhaps hiring a real estate firm to help would be the most efficient way to sell your house. They can de indispensable to you in the following ways. A real estate professional will:

Access the Multiple Listing Service (MLS)

Assist with pricing based on Comparative Market Analysis

Provide a detailed marketing plan

Screen potential buyers for financial qualifications

Suggestions to make your property more attractive to buyers

Show your home whether or not you are there

Answer potential buyer's questions

Present all offers

Assist with negotiating the best sale price

Facilitate the closing process

Before deciding on a specific office, there are a few things you can do to narrow down the choice. Ask friends and neighbors who have recently sold homes for recommendations. Attend Open Houses and ask the sales associate questions about the house. This will give you a feel for the professionalism of the company and their sales associates.

Finally, when interviewing a representative from a firm. The following points should be discussed:

Do you belong to the MLS?

How long has your company been in business?

What are your qualifications, experience and education?

Do you belong to any out-of-town referral organizations?

How did you arrive at your price evaluation of my home?

How much can I expect to walk away with?

What could I do to make my house more marketable?

Explain items of the listing agreement.

How would you market and advertise my house?

How often will you communicate with me?

What if you don't perform?

Payment of the real estate brokerage fee will be the seller's responsibility; the amount of this fee is negotiable. If another company locates a buyer, a portion of the fee goes to that office.

After choosing a real estate company, begin by supplying all the information you can about your house. The sales associate will be asked questions by potential buyers about taxes, utility bills, age and condition of appliances, insulation, room sizes, and a variety of other subjects. Don't hide anything, especially any defects in the condition of your property. Failure to disclose defects could leave you legally liable.

What can you expect from your sales associate?

Accurate information to help set the right selling price.

Suggestions on improvements that could help sell your house

A complete marketing plan

The showing of your house to potential buyers

Regular communication on the progress of the sale

A professional manner and courteous smile

THE RIGHT PRICE

Determining the "right" selling price for your home will take some work. If the set price is too low, you could lose thousands of dollars. If it is too high, the home may not sell within your time frame, costing you time, money and anxiety. The "right" price is a balance between the maximum amount the current housing market will allow, your "competition", and your own time limits in selling. A reasonable time frame for selling a house may be between 30 to 90 days. If a house is on the market too long, potential buyers may avoid the house, wondering if something is wrong with it.

An excellent first step is to have a Comparative Market Analysis done on your house. This information details the current housing market in your area, showing you what houses similar to yours have sold for recently. The market analysis should also list your "competition" - houses like yours which are also on the market. With this information in mind, you will also want to consider the following points before deciding:

LOCATION

This is an important factor in pricing. Look at both the area in which the house is located as well as the surrounding neighborhood. Does the house back up to a busy street, is it on a cul-de-sac, etc. Try to put yourself in the buyer's position: what are the tradeoffs and advantages of your property?

FEATURES

Does your house have specific features that set it apart from other houses in the area, such as a spectacular view, a pool, room additions.

CONDITION OF THE HOUSE

Has the house been adequately maintained during the stay? Are there minor or major repairs that could make a difference in the immediate sale of your house?

AGE OF THE HOUSE

Potential buyers will want to know the age of the plumbing, furnace, roof, appliances, etc. If anything has been replaced, this could add to the value of your property and the sales price.

THE CURRENT MARKET

Is today's market a "buyer's market" or a "seller's market"? A "buyer's market" means there are several similar houses for a buyer to choose from. Usually, interest rates are attractive and prices are steady. A "seller's market" is the opposite. Interest rates may be low or high, but housing prices are on the rise, and there are few houses to be sold.

YOUR TIME FRAME

How long do you have to sell this house? What was the average time on the market on a comparable home? Can you wait while a buyer arranges financing? Does your purchase of another home depend on this deal closing quickly?

With these points in mind you should be able to determine a fair price for your house. A world of caution: Avoid the temptation to "pad" the price excessively, thinking it will give you negotiating room. Most buyers have limitations on how much they can spend. If your property out-prices other properties in the neighborhood, it could remain on the market long than you wish. Even though you may be planning to lower the price later, studies show that the longer a house is on the market, the lower price at which it is finally sold, compared to the original list price.

Although not a specific part of the price setting process, concerns about the amount of profit realized from the sale, tax regulations regarding the sale of property, and settlement or closing costs should be addressed. This is particularly true in markets with a predominance of FHA/VA buyers or areas where lender "points" are absorbed by the seller.

PROFIT

Anticipated costs of selling include the mortgage pay-off amount, the real estate broker's fee, other loans against the property (perhaps for a pool or room addition), the price of inspections, taxes, and other seller's costs. Your net profit can be estimated by subtracting these costs from the sales price. But, remember, this is only an estimate. Any chance in the numbers or closing date will alter the final figure.

TAX FACTS

Under current US laws, the tax profit you realize in selling your house can be deferred indefinitely if you purchase or build another personal residence within two years before or after the sale. There is no limit on the number of times you can use this deferment. (However, there are special rules to consider if you sell your next principle residence before two years from the sale of your previous residence. If these circumstances apply to you, your tax accountant should be consulted.) Also, homeowners 55 or older are entitled to a once-in-a-lifetime exclusion of up to $125,000 of these deferred profits.

For further tax information, consult a tax accountant specializing in real estate matters in advance.

YOUR CLOSING COSTS

Closing costs will vary from area to area. Your sales associate can provide categories and the approximate amounts of settlement costs you will be expected to pay. These may include various fees and miscellaneous closing costs negotiated by the buyer to be paid by the seller.

THE LISTING AGREEMENT

After choosing a real estate company, you are ready to sign the listing agreement. This agreement will state how much brokerage fee, or "commission," shall be paid, who will receive it, who has the right to produce potential buyers, and how long the agreement is valid. It should also include a list of personal property that will go with the house. The length of the listing contract will vary.

In the "Exclusive Right to Sell" agreement, the listing company is entitled to a commission regardless of who sells your property. If another office produces a buyer the commission you pay is shared between the two companies.

A listing agreement is a binding contract. Read it through carefully and ask questions until you understand every part of the agreement before signing.

REVIEW FINANCING OPTIONS

When the time comes to negotiate a sale, it is the best to be aware of current financing available to the buyer. With the help of your real estate professional, review the mortgage climate - are loans in abundance or hard to obtain? If the buyer isn't able to qualify for enough money, you may want to offer a second mortgage out of your profits (if this is allowed by the first lender). Does your property qualify for VA/FHA loans? Is your current loan assumable?

Does the buyer expect you to pay any of the discount points connected with the cost of his loan? Determine your time limits in waiting for financing to be secured by the buyer, including alternatives.

PREPARING TO SELL

Of course, any major repairs should be completed before showing the house, if a top selling price is expected. Limit your repairs to functional parts of the house, such as the roof, plumbing, and major appliances. Cosmetic changes like new carpeting and draperies may not match your future buyer's tastes, and could even discourage the sale.

The key words to remember in preparing your house are neat and clean…..sparkling clean…..clean enough for royalty to visit. Take a look at your house as if you were seeing if for the first time. You may not notice crowded closets and untidy flower beds, but potential buyers will!

MAKE A LIST OF JOBS AND BEGIN WORK TODAY.

OUTSIDE

When potential buyers drive up to your house, what will make a lasting first impression. Keep the grass mowed, edged and the weeds pulled. Trim trees and bushes away from windows, put children's toys in the garage. Plant some flowers to add a touch of color.

If your house needs painting do it now. A good paint job will more than pay for itself in the selling price. Try to maintain the neighborhood look when choosing paint; you don't want your house to be remembered as "the green one with the blue door."

Remove oil stains from the driveway. Buy an inexpensive drip pan to avoid further stains. Replace a weather-beaten mailbox. Make sure your doorbell works. Removes torn screens. Clean outdoor light fixtures. Repair loose brickwork and fill cracks in the walk and driveway. In other words, make your house a show-piece from the curb to the front door.

INSIDE

A coat of paint will brighten interior walls. Choose neutral shades of white, off-white, beige, or light pastels that will coordinate with most decor. This inexpensive investment will increase the show ability of your house.

Clear our closets and cupboards. Have a garage sale or donate your unused items to charity. With less clutter, your closets will appear bigger. Remove all necessary furniture to make your rooms seem more spacious.

Open the curtains and pull up the blinds. Turn on as many lights as possible. Give your house an airy look. Fresh flowers bring color, fragrance and a touch of spring that enhances a room.

The bathroom should be absolutely spotless. Remove any stains from fixtures, repair dripping faucets, and polish the mirrors. Add a sanitizer to the toilet bowl and keep the lid down. Wash and fluff bathroom rugs, hang fresh towels. Potpourri or scented soaps add a nice fragrance to the air.

A clean kitchen tells the buyer that the house has been well cared for. Remove excess pots, pans, bowls, and clutter from the cupboards. Clean the oven inside and out. Run a lemon through the garbage disposal for a fresh smell. Make sure all appliances are working.

When a sales associate is showing the house, keep children and pets under control. Also turn off the televisions and stereos. The noise may distract tired clients, causing them to overlook many fine features.

Check garages and basements for debris. A two car garage should have plenty of space for two cars. Brighten basements with the highest wattage lighting allowed and clear away any cobwebs.

SOLD

All offers for your property must be presented. Your sales associate will counsel and advise you, but the final decision will be yours. Review every offer, comparing the financial qualifications and readiness to buy of each buyer.

When you decide what terms are acceptable, let your sales associate negotiate with the buyer. The sales associate will cover all costs you ware willing to pay and what you expect of the buyer. A suitable deposit will be collected from the buyer prior to any acceptance of their purchase offer. A written agreement stating all condition of the sale will be signed by both parties.

Now comes the time to sit back and be patient. The buyer is busy arranging mortgage financing. The real estate company and the title company are beginning to accumulate data and prepare documents. The sales associate is checking on the progress of the sale. You can concentrate on the important matter of packing and moving to your new home.

Final closing day will be scheduled when all the steps are completed. Both parties must sign the final closing documents. Once you present an executed deed to the buyer and receive his check in the amount agreed upon, your house is successfully sold.

Congratulations! Selling a house is one of the largest transaction you may ever undertake. But with some careful planning, and by following the steps in this booklet, it can be a very satisfying experience. If you have any questions, call your local CENTURY 21 office today and see how fast your home can go from FOR SALE to SOLD.

The CENTURY 21 system is the world's largest real estate organization with approximately 6,000 offices in 10 countries. Your CENTURY 21 sales associate will promote your property to it's best advantage. A member of the CENTURY 21 Referral System can market your house across the continent and around the world to potential buyers moving into your area.

Yet size doesn't get in the way of the individual, personalize assistance. Each of our offices is independently owned and operated, thus providing you with the best real estate service. Call today and "Put your trust in Number One."

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