When selling property, it is best to separate those things over which you have control over and have the ability to influence from that which you do not.
Having your home in the best condition for the marketplace is for the most part within your control. When selling any commodity, there is no substitute for clean and neutral. Since you will be moving anyway, clean up, box up and get organized in advance of putting the home up for sale. Using the attached grid, be sure that you missed nothing in the preparation of your house for optimal condition and the best price. Also consider hiring professional stagers who are worth the investment in assisting you in re-arranging your belongings or leasing items to help show off the space in the best light.
The state of the current market over which we have no influence are government regulations, interest rates, absorption rates, lending challenges, list to sale price ratio and average days on market. The market watch updated on the site is for the entire county; various price points data may vary based on the supply and demand. Your relocation specialist will be able to run the specific market data based on the macro market of your property’s location and shopping price range.
A CMA (Competitive Market Analysis) is the data collected of homes currently for sale, pending and sold (within the last 6 months). The homes should be within the areas any buyer considering your house would most likely be looking and be of similar type/style, range of age and market-shopping price range. The best agents would have already seen the inventory for sale most competitive to yours; therefore, they can compare the data accurately.
A BMA (Brokers Market Analysis) is required by a corporation for the employer based on the parameters of market time set by employer. This market time may not match your market time or the actual market time. The form is a snapshot of the current market conditions (outside your control), the current house condition (in your control), the extraction of the 3 closest currently for sale and recently sold properties from the CMA, and the agents promotional plans to consummate a sale for the home in the time allotted by the corporation. Based on this factual information, the agent indicates the most likely sale price and suggested asking price. The corporation expects the SOLD price indicated to be within a 5% margin of accuracy. The actual listing price that you choose for your home will be your decision unless your employer’s policy dictates otherwise. If you have a guaranteed buy out (GBO), that price is not determined by any of the agents you are interviewing for the sale of your home. The GBO is most commonly determined based on the average of two independent appraisers.
Third-parties companies will request two brokerage firms in your effective market service area to interview for the job of marketing your home. These brokerage companies are called “network or preferred companies.” Some of the benefits of using an agent from one of the companies are:
- Trained in the paperwork and process unique to a relocation sale saves you time and able to put at ease an agent’s bringing a buyer to a property that is an amended sale.
- Accountable to the third party (and your employer) for their service. If you choose a broker outside your network and you have service issues, your third party has no influence with them nor can they break the listing agreement.
- Influence with the third parties to expedite paperwork and challenges given the internal relationships. This is very important to the timeliness of the transaction and ensuring your funds are expedited to you as quickly as possible for your new purchase.
Whether you are moving down the street or across the country, selling your home is one of the biggest financial transactions one makes. Far too many times people choose an agent based on family and/or friendship. One should also not assume that because an agent helped you buy your current home that they are necessarily the best agent to sell your home. The skills set are often quite different.
When at all possible, all parties to the sale should be present to interview the agents. Even if your trailing spouse is left behind to sell the home, it is best if both of you are present for the interview. Some factors to consider when choosing between the network brokers include:
- What is their comprehensive marketing plan? Specifically what will they be doing to drive traffic to your property? This traffic will be both buyers and agents in your market-shopping area.
- What is their communication plan? One or both of you might be at your new work home/location, and you need to manage your expectations regarding all activity with regards to marketing, promotion, feedback, etc.
- Be careful not to put the emphasis on pricing. At the end of the day, unless the agents are buying the home, the price is ultimately decided on by the buyers. The agents should present the current climate of the real estate market as well as the comparable properties. Agents who have been inside the inventory are better able to counsel you on the competition. The best pricing would be at or below the current competition to attract the greatest number of potential buyers. The data is clear; homes priced well from the start end up selling for more money and a higher than the average list to sale price ratio than overpriced homes.
- Today agents by choice or company policy shy away from selling their own inventory so they can best represent the client. An agent skilled in negotiations, and collaborative with other real estate agents is critical to bring about a sale and a successful closing as quickly and efficiently as possible. With the changing government regulations in regards to lending and inspection issues, keeping a transaction together is often much more challenging than finding a buyer. In fact, most buyers find homes on their own. With broker reciprocity and the internet, the inventory of homes is easily accessible to all buyers. The role of the professional real estate agent has become more of educator, counselor and negotiator. It goes without saying the more experience the agent has, the better they will be.