Posts from March 2021

When you accept an offer on your home there are some costs you as a seller will need to consider.  Though they are not as extensive as what a buyer will pay you will want to keep these in mind when you are deciding on which offer to accept.  When we go over the offers on your home together, I will have a Seller's Net Proceeds Estimate form with these cost on it.  I do want to emphasize that this is an estimate.  Approximately two business days prior to closing you will get a Closing Disclosure Statement of your cost and net proceeds.  This is the form that will have the exact numbers.  It is important to remember that this Closing Disclosure Statement is written from the perspective of the buyer.  Thus, anything that says credit is a credit to the buyer, and a debit toward you the seller.  That will be very important especially as we go through costs below.

1. Commission:  I know...

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Now that we have gone through what we need to consider regarding appraisers and buyers, we can look at the other aspects we need to consider to come up with a price for your home.  

We will take a look at homes that are similar to your home that have sold in the last 6 months.  This is referred to as comparables (though that is not really a word).  We will consider active and pending, but focus mostly on the closed properties, because that is what the appraisers are going to use to determine their value.  So, what do we mean by comparables and what are the best ones to look for?

First, we need to consider location.  Primarily we are looking at the market in the school district that you live in, if we can narrow this down to your township even better, and if we can get down to your neighborhood and block to find comparables, that's ev...

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When I meet with sellers their first question is what do you think the price is going to be?

This is an understandable question.  Your home is your most valuable asset, and you want to get the best price for it.  

So how do I as a real estate agent come up with a price for your home?

First, it is important to understand that real estate agents do not set a price.  Rather, I study what the market is doing, and tell you using as many facts as I can, where I believe your home is in the current market.  The two things that determine your homes price are, first of all, what will the appraisal property of the home be.  A licensed appraiser, hired by the buyers lender, will determine for the lender if the value of your home can back the mortgage amount the buyers is applying for to purchase the home.   The second thing that is considered is what buyers are wiling to pay for the property.  I know this second one seems obvious it's basic high school economics...

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"It's better to ask 50 questions and look at 5 houses, than ask 5 questions and look at 50 houses."

The quote above is from a mentor I meet with to talk about business planning and real estate.  It was one of the things that really stood out to me in our recent conversation.  Our current real estate market is not very buyer friendly at the moment.  But, you can still find the house you want with some diligent work up front.  Part of this upfront work is understanding your needs and goals as a home buyer.  What are you looking for?  Why are those things important?  What are your goals?  

I understand that this may seem like a rather tedious process.  However, the more I know about what it is you are looking for the faster we can get you to that house that you are looking for.  In a hot seller market where every moment counts for you as a buyer knowing exactly what you are looking for will help us get to that home quickly...

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When you decide to sell your home you can call for a listing packet to look through before our meeting.  Other than the price of their home, most sellers next questions are around the listing contract itself.

1. How much is the commission?  Commission is 6% of the final sales price.  My broker will collect a 6% commission at closing.  The broker will then give 3% to any other broker that brings you a buyer.  I will be paid out of the 3% my broker keeps.  In addition to this 6% commission there is a $245.00 Broker Fee.  The Broker Fee goes toward covering administrative cost and the processing of the transaction.  All of these fees are...

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