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Not ready to sell, but just have lots of questions about selling?
You've come to the right place! Listed below are the most commonly asked
questions Frank receives from sellers, with good general advice.
Everyone's selling goals are different however, so please be sure to call Frank
directly at 407-532-0335, so he can give you the best advice for your specific
situation.
I)
Questions of the
Home Seller:
Web Page Disclaimer
Listing the House:
Showing the
House when Listed:
Timeframe/Contracts/Miscellaneous:
II)
FSBO
(for sale by owners):
1) ANSWERS (Home Seller Questions)
How
long is the listing contract?
This is completely negotiable. Many Realtors
request 4-6 months, for a variety of good reasons. Mostly, it's to give the
home 'enough time on the market', at the appropriate level of 'salability'.
The word 'salability' in Real Estate, refers to a home having the correct blend
of all the important elements necessary for a home to sell; i.e., price,
condition, location, ease of showing, etc. If only (1) of these items is
wrong, then a home will be on the market far longer than it should be.
Many times sellers will start off at a higher list price or will decide not to
paint or carpet where needed. By the time a seller makes the necessary
adjustments to price and/or condition of the home, it could be weeks (or months)
into the listing period. If only a couple weeks are left in a (short
listing), the effect of the 'salability adjustments' may not be realized in time
to get the home sold. A listing period of 4-6 months is not set in stone,
it will depend on the overall salability of your particular home.
What is your
commission?
Commission rates for "full service"
Real Estate Brokers and Agents
vary. This cost covers the (entire
transaction), that is, half the fee is paid to the other (selling Realtor), with
half the fee being paid to the listing/marketing Realtor. I will be happy to discuss this with
you on the listing appointment. I will always be very competitive to
other, full-service Brokers and agents, and do my best to earn your business!
Should I paint my house, re-carpet, or otherwise improve
the condition of my house before selling?
The condition of a home is very important to it's
"Salability". If the paint or carpet in your home is old,
excessively worn, faded, stained, etc., then this represents (money that a
prospective buyer will have to come up with) prior to moving into your home, or
shortly thereafter. A home in poor cosmetic condition doesn't show as well, and many
times will be passed up in favor of homes in "move-in
condition". Buyers will very likely produce much lower offers based
on their own estimations of what paint and carpet will cost, and ultimately you may
end up with less money than if you were to handle these improvements up
front. You may be a "do it yourselfer", and able to paint and
carpet a home on your own. Your buyer may not be a "do it
yourselfer", and will have to pay for someone to do the work. What
may cost you $2,000 may cost them $5,000. This is how you ultimately
"lose" by offering a home for sale, that is in need of cosmetic
improvements. If a lack of funds is the challenge, many times a
"carpeting/paint allowance" can be offered in a listing, and done
through your equity in your home, prior to a closing.
What
is a CMA, and why should I list my home within the CMA range?
A CMA is a (comparable market analysis), which is a
list of homes that are roughly comparable to your home, that have sold within
the last few weeks to several months. The CMA is usually prepared by a
licensed Realtor, and presented to a home seller at the listing
presentation. Many (computerized) CMA's will have photos of houses, and
detail a variety of pricing information as well as features and amenities of the
comparable sales. I consider a CMA to be a 'snapshot' of what an appraisal
will look like. THIS IS SO IMPORTANT, because if you price your home
correctly UP FRONT, it will generally sell for more money and QUICKER!
Homes (overpriced) at the start can get overlooked by the active Realtors in the
area, and once you start the cycle of 'reducing the price', your home may not
generate the same excitement as it would have had you been priced correctly in
the beginning. How good a CMA you get depends on WHO does it for
you. If you get a CMA from an experienced listing agent, who knows the
"trends" of market values in your area, especially someone who
specializes in your neighborhood, then you will likely get a good report. Remember,
if your home sells for higher than the (appraised value), your
sale may not go through!
How do the
lock-boxes work, and should I use one?
You are not required to use a lock box, however they
are an invaluable tool to ensure your home never misses a showing! The
local
electronic lock boxes Realtors use are basically pad locks (that hold a key in a small
container). Each individual Broker or Agent has his/her own electronic key
card, that is about the size of a very small calculator. They have their
own private code (or member) number, that they key in while the card is placed on
the lock box, and out pops the container holding the house key. Every time
a Realtor uses their lockbox key, it makes a record of the showing in our
central computer. This is a very nice 'control' that helps us know for
sure that a home was shown. My office will remind the agents to leave the house as they
found it, to leave a business card, and remember to lock the door again.
There are times when we won't use a lockbox. If you have a dog that will
bite, or jump all over someone, you may be required to secure your pet while the
home is being shown. Also, if there are any 'stay at home' family members,
you may choose to show the home by appointment, as you are most always there.
How do we show
the house with my security alarm on?
Many homeowners have alarms on during their listing
period. You will need to give me your alarm code so that we may give it
out to Brokers/Agents that call. It is best that you call your alarm
(monitoring company) to obtain a "special Realtor code" and
"password", which is a common request made by seller's who are
listed. This way, your secure family password is not compromised, and if a
Realtor accidentally mishandles the alarm instructions, the monitoring company
will know that it was likely a "Realtor-related" incident. It is
easier all the way around, if your alarm is (left off) during the daylight hours
that showings will occur.
How do we show
the house considering my pet?
It depends what kind of pet. The most common
concern is for dogs. It is always best if the pet is either out of the
house (or) secured in a fenced backyard when the home is shown. Obviously
size of the dog will dictate how you secure. Smaller dogs may be able to
be contained in pet-carriers, while larger dogs may be tied up in a
backyard. Another option is to keep the dog within (1) of the bedrooms,
with the door shut, unless they are serious barkers, which will be very
intimidating and annoying. Backyards are the location of choice for larger
dogs. If you have a nice Screened Porch or Pool deck, it is not a
good idea that pets have access to this area. This is a "hot button
area" for buyers, and you want them to have a good, long look at this
area. However, a pet in the backyard is not a problem because the yard is
usually easy to overview from the porch or pool area. Cats and birds are
usually no big deal, and exotic animals are on a case by case basis. We
will always advise Brokers/agents to take care NOT to let pets outside unless
you say it is o.k.
Can I show my
house “by appointment only”?
Yes. If your lifestyle has you home quite a lot,
then this is no problem. It is advisable however, that you excuse yourself
out the front door while the buyer looks at your house. Buyers will not be
as likely to talk freely with their agent if you are in earshot from them, and
won't be as likely to take their time looking through. When the buyer's
agent and buyer come to the door, you should say something like "take your
time looking around, I'll be just outside the front if you have any
questions..". Much better to go out the front door then onto your
Screened Porch, Patio or Pool Deck, as the buyers are still in the (buying mode)
when they come into the back of the house, and again, you would be in earshot of
their personal comments to their agent.
Will I have ample
advance notice before the house is shown?
Most of the time, but not all of the time. Many
of the (best) agents will want to call you at least a day in advance, to give
you time to make your home show it's best. Other agents are much less
organized, and will typically call anywhere from 1/2 hour to only a few hours
before they want to show your house. It is advisable to be ready for a
showing at a moments notice. This is the hardest part of marketing your
house, but once it's over, you can go back to 'normal'!
How long should
it take to receive an offer?
Depends entirely on the "salability" of your
house! In this marketplace, with my marketing plan, a very salable house
should receive at least (1) offer in the first 3-5 weeks on the market. If
the home is overpriced or in need of significant cosmetic improvements, offers
to purchase may not come as quick. Your CMA (market analysis) will also
show how long homes in your area have taken to sell.
After we have a
contract, how long does it take to close, and when would I be asked to move
out?
Unless modified, the date of closing is the date that
buyer gets to occupy the house (after the time of closing). If you remain
in the house after closing, this is generally accomplished with a separate
"post occupancy addendum". This addendum states that you are not
creating a landlord/tenant relationship, and that you will agree to pay a (daily
pro-ration) equivalent to a (daily pro-ration) of the buyer's new mortgage
payment. You would have to maintain a (contents insurance policy) like
renters insurance, utilities, etc., until you move out.
How do you
present offers to me?
Anyway you like me to. Generally
offers to purchase are "faxed" into my office by the other Broker or
Agent, and I am the only one who would come out to your house, to go over the
offer. If the nature of your work is that you are not home much, or if you
work into the very late evening, I may fax the offer to your work and go over it
with you there. If an offer comes in (ridiculously low), I may just call
you on the phone and go over it with you that way. Regardless of what the
offer is or how it is presented, any offer is a GOOD OFFER because it is a
"starting point" to a negotiation. Remember, YOU are in control
of what you sell your house for! I will calculate a detailed cost estimate
(down to the penny) of what you are likely to clear on any offer you accept, or
any counter-offer you make.
I want to find
another house before I put mine on the market.
How can I do this?
Also see "how to have your cake and eat it
too"! But seriously, the process of selling your home (or putting it
on the market) before you've found another home can be nerve wracking!
Unless you can qualify to buy a home (and carry 2 mortgages), then you must wait
for
your home to get a contract, before you can submit an offer to purchase another
home. Very few sellers will allow a clause that says "purchase contingent
upon the sale of buyers home", but most WILL allow a clause that says
"purchase contingent upon the closing of buyers home, under contract with
qualified buyer". The first step to take in this process is to
properly pre-qualify for your next purchase. SEE BUYERS SECTION OF MY WEB
SITE FOR DETAILS ON PRE-QUALIFYING FOR A MORTGAGE. The second step is to
get a good "feel" for the location you want to be in. Once you
know the location (city, subdivisions, etc.), then you should look at a
(sampling) of the current inventory of homes for sale, keeping a "Top 3
list". Once you have a contract on your home, you can immediately
make offers on your pre-selected homes, with the proper contingency in
place. If all the stars line up just right, you may find yourself making
just (1) move; from house to house with no layover in storage or relatives
homes. I can help you coordinate this process as easily as is possible.
What if my house
sells before I’ve found another home?
We try to get you as long a "move out period"
as possible, to give you extra time to keep looking for a house. If you
follow the process listed in the question above, you should be successful in
finding the right house (at the time your house is selling). In a
"sellers market", there are not as many homes to choose from as there
have been in years past. If you are an extremely 'picky' buyer, or looking
for a special floor plan, etc., then building a home may be the right way for
you to go. Again, I will be happy to discuss your particular needs in the
home you will be buying, and assist you in making the transition from one home
to the next.
Can I stay in
the home a few days after closing to have extra time to move?
It depends on the buyer and if they can allow it.
If you stay in the home after closing, this is called a "post occupancy
agreement". This
addendum states that you are not creating a landlord/tenant relationship, and
that you will agree to pay a (daily pro-ration) equivalent to a (daily
pro-ration) of the buyer's new mortgage payment. You would have to
maintain a (contents insurance policy) like renters insurance, utilities, etc.,
until you move out.
II) ANSWERS (For Sale by Owner Questions)
Do I need a
lawyer, or other professional to represent me in a private sale?
Although you are not legally required to have a
professional representing you or facilitating the transaction, it is HIGHLY
RECOMMENDED that you do! In addition to having an in-depth knowledge of
contract clauses and what they mean, Real Estate professionals can see to it
that your needs and interests are protected, and that you make the proper
disclosure of any known defects in your house to your buyer. When things
go wrong in a contract (as they often do) having the extra help and expertise
that a Real Estate practitioner brings can be invaluable!
Do I need to
advertise my property? If so, what kind of ads should I do?
The amount of advertising you do can range from the
sign in your yard (only), to advertising in newspapers, for-sale-by-owner books
and various internet advertising geared toward the FSBO. If you are in a
"hot area", the yard sign should do. If your house is a harder
sell (or in a less desirable area or subdivision), be prepared to run various
ads in all the sources that are available to you. Ads that feature the
photo of your house are good (unless the house photographs poorly). Always
keep in mind the reasons why you purchased your home, as those are likely the
most salable features of your house. Feel free to contact me for tips on
good ad writing.
How should I
show my home? Is it safe to allow strangers into my home?
Here is one of the best reasons for listing your home
with a Realtor! Most Realtors properly pre-qualify their buyers, know that
they are a "bona fide", serious buyer, and feel secure working with
them. Unfortunately you must be responsible for pre-screening buyers and
everything that goes along with it. My advise (at a minimum) is to ask for
the name and phone number of their lender before you show your house to them,
for purpose of verifying that they are a pre-qualified buyer. Serious
buyers won't mind this, and should give you a name and number right away.
The very best agents will do this (or will have their lenders pre-qualify
buyers) prior to showing them ANY house! You should go about this just as
we do! Then you should see to it that you are not alone with the buyers
when the house is shown. Have a husband, boyfriend, brother, neighbor,
etc., be there at the time of showing.
How do I know
if a buyer is credit worthy enough to buy my home?
Prior to allowing a showing, get the name and phone
number of your buyer prospect, and have your buyer prospect give you the name
and phone number of their lender of choice. Tell the buyer you insist that
only properly pre-qualified buyers see your house, and you must have this
information. Federal truth-in-lending law prohibits any lender from giving
you confidential financial information on buyers, but they CAN tell you if the
buyer has made loan application, if a lender "in file credit
report" has been generated, and if the buyer's loan will be easy, or
difficult. It is completely up to you to know the buyer your getting
involved with. This is the #1 most important thing you need to do to
protect yourself. Realtors can be an invaluable resource to you in
properly pre-qualifying your buyer!
What is the
difference between "prequalifed", "preapproved", and
"underwritten"?
Here is a major source of headaches for sellers who get
it wrong! When a lender asks a buyer a few questions about their income,
payments they make and gets their social security number (for an "in file
credit report"), the lender is PRE-QUALIFYING the buyer. This means
that IF all the information turns out to be true, that the buyer will be
approved for a loan. THIS DOES NOT CONSTITUTE A LOAN APPROVAL. The
term "PREAPPROVED" means that the lender has done all the (paper-trail
verifications) on buyers bank, debts, income from employer, etc., and has
granted a CONDITIONAL LOAN APPROVAL. Conditions will mostly involve the
subject property meeting the criteria of the lender, i.e., appraised value,
clean termite report, survey done, etc. The term UNDERWRITTEN is when the
buyer and the subject property have cleared all necessary "hurdles",
and the loan is ready to close. Most buyers will come to you pre-qualified
at best, hopefully Pre-approved. SEE MY LINKS TO MY FAVORITE LENDERS AS
THESE PROFESSIONALS PROVIDE TOP FLIGHT SERVICE!
A Real Estate
agent brought me the buyer. What is a customary fee to pay them?
Between 3-3.5% of the sales price. This would
represent what they would be paid if they sold a home listed in the local
MLS.
Does the
Buyer's Real Estate agent represent me, or the buyer?
It depends. The agent should be using some type
of "representation form", required by the Florida Real Estate
Commission (FREC). It is most common for an agent to work as a TRANSACTION
BROKER, which is a limited form of representation to both parties. A
transaction broker is basically a "facilitator" to the
transaction. In negotiating the contract, they are not to tell the buyer
(even if they know) that a seller would accept less than the asking price, and
they are not to tell a seller (even if they know) that a buyer will pay more
than price offered. The agent can also work as a BUYER'S AGENT, which
means they are working to get the buyer the best price and terms in the
transaction. In this case you would be wise to hire a Real Estate
Attorney, Realtor, or other Real Estate Professional for proper advice in your
contract. Feel free to contact me for a copy of the written "Agency
Disclosure Form". Remember to make SURE that you get a written
agency disclosure BEFORE you review any offer!
I understand I
need title insurance. How do I select the title company?
You can start by looking at some of my affiliate
service providers. I receive NO kickback or other compensation by any of
my affiliate service providers. I recommend them because they are all the
best professionals in their respective industries, and serve me and my clients
well. Title insurance rates are "promulgated", meaning that they
are regulated. The only variances in fees you may see are in the related
fees associated with title insurance which are: a) closing fees, b) examination
fees, c) title search fees. I've found that the differences in title
companies range up to maybe $50.00 per transaction, so best to pick a well known
company. The title company coordinates the (exact payoff) of your
mortgage, payment of any liens or encumbrances on your title, receives your
buyer's loan package from buyer's lender, and conducts all signatures of the
parties at closing. A poor title company can literally wreck, or serious
derail your closing!
I'm thinking
of listing my home now. Can I EXCLUDE buyers who have seen my
house from the listing agreement?
You can try, but ultimately the Realtor you choose must
agree to it (in writing), listing the excluded parties. It's very easy
when your selling FSBO to get excited about all the "oohing and
aahing" that buyers do when they see your home. Many times you
(think) you have a prospect when in reality you do not. I will
always request that you be cleared of any prospects you think you may have prior
to writing the listing. I will however give you a special commission rate
should I work with (your noted buyer), with no other Broker or Agent expecting
to be compensated. I will discuss this discount with you once we sit down
together on the listing presentation.
I've utilized
the "Buy Owner" program. Can some (or all) of my program
fees
be rebated to me if I list with one of their referred agents?
Buy Owner does offer a type of "rebate
program", but you will have to check your particular contract to see if you
are eligible. I have assisted a few families (after their 'Buy
Owner' program) ran it's course, and the seller's received back a portion, or
all of their program fees. I AM ON BUY OWNERS LIST OF ELIGIBLE REALTORS,
SO YOU CAN REQUEST ME BY NAME!
I've heard of
'discount' brokers. Is this a good way to list and sell my home for
less?
Have you ever heard the phrase: "you get what you
pay for"? I
know of seller's who have listed and sold successfully with discount brokers,
and I know others who would never try it again! With discounted (below
customary) commissions, generally comes poor or no advertising, very little
customer service (updates on selling progress, feedback from showings, etc.),
and more of a "do it yourself" nature to your listing. The best
full service agents on the other hand have written marketing plans (see mine for
example), and will always be in touch with you on a regular basis, reviewing
what's working, changing what's not, and staying deeply involved in the
marketing and advertising process! THIS KIND OF ACTION IS WHAT SELLS
HOUSES!
III) ANSWERS (Expired Listing Questions)
How do I know
if my home was priced right or overpriced?
By referring to the CMA (comparable market analysis)
that your listing agent prepared before they listed your house. This of
course assumes that your agent did a GOOD and ACCURATE one! It's always
best to look at ONLY the sales in your particular neighborhood, but sometimes
you have to go out of the subdivision or immediate area for comparable
sales. If you interview another agent (like me), that agent should bring
an "up to date" CMA, and have an in-depth knowledge of the data in
it. They should be able to tell you EXACTLY where your home should fit in
the list of sales and why! Sometimes sellers don't like one agents
opinion of price and they end up listing with an agent who agrees WITH THE
SELLERS opinion of price. I would AVOID an agent like
this, because they are likely (and knowingly) listing the home for more than
it's worth (only to get the listing), then will hassle you every step of the way
for price reductions to the level you should have been at in the
beginning! Overpricing is a common reason why homes don't sell, but
it's not the #1 reason!
Should I have
reduced my list price when my agent suggested it?
First read the question and answer above to determine
what kind of agent you had. If you had the type of agent who came with an
honest estimate of value substantiated by facts, and if you listed where they
said you should list, but the home still didn't sell, the problem is likely
something else. If however you had the type of agent to AVOID,
then you DID need to make a price reduction, and should have done it.
My home has
older/worn carpet, and is in need of paint. Could this have
hindered me from a sale?
Yes it could have! Here (in my opinion) is the #1
reason why homes don't sell in today's phenomenal Real Estate market! Poor
cosmetic condition of a house inside (especially outside), will drastically
impact most buyer's opinion of the house. Poor curb appeal will keep
people in their cars, and poor condition inside will make them want to
leave! Paint is the absolute cheapest way to make any home show
better! Grab a brush and a friend and get busy right now! Carpet on
the other hand is more expensive, and often seller's don't want to put much
money in a home once they decide to sell. Also many seller's I've spoke to
don't want to choose "the wrong color". KEEP THIS IN MIND:
"BASIC BEIGE"!! Why do you always see beige in apartments?
Because it is SO neutral, that virtually any decor will work with it! I
can't think of (1) home I've failed to sell that had new, beige carpeting in
it! Remember, buyers will be coming in with lower offers if they have to
pay for a carpeting job, so if you address this up front, you are much more
likely to make MORE MONEY by listing higher, than you would by listing lower!
I received ( )
showings on my home. Is this enough to have received an offer?
If you are in a popular (in demand) neighborhood, and
priced right, you should get several showings a week. How many showings
(before the offer comes) is dependent upon the condition of your home. My
listings that sell within the first few days ALL have the same blend of
"salable features"; a) in an 'in demand area'; b) priced according to
the market; c) generally in good, 'move-in-condition'. Homes that are
exceptional in each of these categories should sell within the first couple of
showings! If you have received lots of showings but still no offers,
then the majority of these buyers did not feel your home was the "best
buy" and likely purchased other homes. Buyers who saw your home may
have felt that other homes (similarly priced) offered them more value, or saw
homes (for less money) that offered them the same perceived value as
yours. An in-depth look at your list price and condition of your home is
suggested in this case. If you have received very few showings over the
span of a month (exception is the 'holiday season'), then you likely have a
problem with your list price.
My home was
showed "by appointment only". Would a lockbox increase the
number of showings on my
home?
That would depend how available you were for
showings. If you were at the house for each scheduled showing, then a
lockbox makes no difference (although there are a few agents who only like to
show homes on lockbox). However if you missed appointments or couldn't (or
wouldn't) accommodate each agent appointment, then a lockbox would have
increased the number of showings you would have had. Remember, this is a
"tool" for YOU! It frees YOU up, so you can continue to live
your life without the inconvenience of being (tied to your house)! Special
accommodations can be made if you have a dog, expensive possessions, guns,
alarm, etc.
My agent
didn't seem to advertise my home much. How much advertising is
enough? What are the most "effective" methods of
advertising?
Click on this link to a similar FSBO (for sale by owner
question):
Do I need to
advertise my property? If so, what kind of ads should I do?
Click on
MARKETING PLAN
for details on a very good plan of marketing your home! Anything less than
this (was probably NOT enough)!
I was listed
with a 'discount' broker. Could a "full service broker"
charging a
higher commission make a difference this next time?
YES! In Real Estate you do "get what
you pay for" most of the time. When you choose your next Realtor, you
should not have to ask for a) a written CMA; b) a written marketing plan; c) a
good estimate on your marketing time; d) a detailed financial estimate of your
net at closing. A GOOD full service Broker or Agent will have all of this
ready ON the listing presentation, will likely have a laptop computer (or have
their business automated in some fashion), and will guarantee to contact you
regularly on your marketing progress. Good full service companies also
offer their clients and customers a VARIETY of services including Relocation
Services, Property Management Services, In-house Lenders and Title Companies,
and have a network of Affiliate Professionals that help to see your sale through
to a closing! They will also have an extensive
Marketing
Plan, and an established track record of success, giving you references upon
request. Surf through my varied services in my Web Site to learn what a
GOOD FULL SERVICE REALTOR can do for you!
What criteria
should I use to select an agent who can sell my home?
Read the question and answer just above this one.
Many experts (who are generally attorneys) suggest that you interview at least
(3) successful Real Estate agents in your area, obtaining written marketing
plans and CMA's from them. These experts also generally suggest that you
sign (no longer than a 90 day listing), because the agent will be more motivated
(because of a shorter period to sell your home). While I understand the
advice that these "so called experts" give, I don't agree with all of
it. In my opinion, you should interview as many agents as you need to, to
find THE RIGHT agent for your family. If an agent has a track record of
success in your area, has prepared a GOOD CMA substantiated by facts, has a
WRITTEN MARKETING PLAN, utilizing AUTOMATION in their marketing, is charging a
commission that is in a CUSTOMARY RANGE in your area, and if you like them, then
why do you need to look at anybody else? Remember, the "cheapest
Broker or Agent" may not be the best choice!
Is
there any way to avoid capital gains tax on the sale of my primary residence?
A seller filing a single tax return gets a $250,000 exclusion and a seller
filing a joint tax return gets a $500,000 exclusion. This exclusion can be
taken once every two years if the seller meets the two-year principal residence
text. That test requires the property to be the principal residence for a
combined period of two years in the five years prior to the sale or
exchange. SEEK QUALIFIED CPA ADVICE ON ANY TAX MATTERS PERTAINING TO THE
PURCHASE OR SALE OF ANY PROPERTY.
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