The Selling Process



Value Analysis

Establish Price Prepare to Show Plan Marketing Reports/
Communicate
Negotiate Offer Inspect/Appraise Close

Step one: Value Analysis

The most important step in the selling process is establishing your property’s true current market value. The price you should expect to receive from your sale is what the property will appraise for by the buyer’s lender.  Few, if any, buyers will pay more than the appraised value.

A TPN Realtor will arrive at a market value for your property by accessing your property’s characteristics and then studying the recent sale history of properties that are similar to yours, that have sold in your area.

This analysis will not produce an “absolute” market value price – it provides a “value range”. Your Realtor will recommend a listing price to you based on their knowledge of recent sales and how many similar homes are on the market competing with yours.

We promise that “We WILL NOT recommend that you list your property at a substantially higher value than you can expect to be offered – just to impress you and obtain your listing.” We would rather that you not hire us now, than have you disappointed with us later, when we can’t sell your property at an artificially high price.

Step two: Establish Price

When we are invited to evaluate your property to determine its current market value, a wide variety of factors are considered. Size, style, age, condition, uniqueness and location of the property are paramount. Apart from the level of the market itself – it is the above factors that will determine what your home will be worth to a buyer. Two identical homes – except for condition and location can have a market value difference of thousands of dollars.
                                
However, there is a buyer for every home, if the “asking price” of the property is competitive with other “like” properties that are for sale in the area. The most common mistake sellers make when listing property, is to initially overprice it to “see what happens” – expecting to reduce the price later.

Experience has shown that property is most likely to sell in its first 30 to 60 days on the market, if the price is competitively established.

The Partner Network Realtor you choose to market your property is skilled at determining your property’s current market value for you – and they have a vast support system and staff to call upon to make this judgment.

Step Three: Prepare to Show

Remember the last time you purchased a home? How important it was that the property looked neat and organized as you drove up the driveway? That the lawn was mowed, that the paved driveway was swept, that the flower beds were well tended, that there was no “stuff” visible in plain sight?

If you didn’t notice those things – it is because everything looked “right”. It is only when the property is messy – inside or out – that a prospective buyer notices.  What that means to a prospective buyer is – “this owner doesn’t take care of his property” and they wonder what is wrong that they can’t see?

Your TPN Realtor will help you understand the “show ability” of your property. What to clean up – what to store – what to repair or replace that will make your property the most attractive to buyers.  The first impression is the most important!

Most TPN Realtors will want to install a “key box” at your property. The key box holds the entry key, allowing Realtors to show your property without having to chase down the key.  Your permission will always be sought prior to your property being shown. It is helpful if you are NOT present when your property is being viewed by a buyer.

Step four: Marketing Plan

The job of the TPN Realtor, who represents you as a seller, is to “Market your property”. Marketing a property is to “attract” other agents and their buyers to your property. The more prospects who view your property, the greater the opportunity for one or more quick, fair market offers.

The marketing plan your TPN Realtor develops will be individually created and unique to your property. Where and how to promote your property is dependant upon all the factors that make your property different.  Some properties require only local promotion – an equine property will be promoted in equine media – an antique property will appear in an Antique Homes media and websites. You get the idea.

One caution.  If you overprice your property when you put it on the market – it will sit there with few showings. No amount of promotion will cause a prospective buyer to be attracted to an overpriced listing - OR, if you receive an offer, it is likely to be at its true market value, not your asking price.

Step five: Communicate

Perhaps the most important part of the relationship between a seller and their TPN Realtor is establishing a means of communicating quickly and effectively. Your Realtor can always be reached through their cell phone, Email, or the Voice Mail at their office – which immediately pages the Realtor.

Your Realtor will need to understand how best to reach you, even at odd hours or at work (if that’s OK).  The opportunity for a showing often arises quickly and the more likely that your Realtor can show your property on short notice, the greater number of showings will take place. If there are times that showing is not practical (because of sleep schedules, for example) – it is helpful to know that in advance, allowing us to advise other Realtors of that fact.

You will receive several routine communications from us: (a) a phone report whenever your property is shown to a prospect (b) a twice monthly written report that tells you which Internet Web sites your listing is appearing – where print ads have appeared – results of showings – inquiries about your property – results of Home Inspections - results of Appraisals - and memos that your TPN Realtor has entered about your property.

Step six: Negotiate Offer

When an offer is presented for your property, it will be accompanied by a buyer pre-qualification letter, giving you some assurance that the buyer is capable of purchasing a property at your price level. It will also be accompanied by a signed copy of the property disclosures you issued at the time of listing. This document assures you that the buyer understands what he is buying.

You and your TPN Realtor will review the offer closely – paying special attention to any contingency language that exists. You will have three options with the offer (a) accept the offer as is (b) (reject the offer because of unacceptable price or for other contingencies in the offer (c) make a counter-offer, by writing in a new price – and/or altering contingencies the buyer has demanded.

Offers and counter-offers can be tasking. They occasionally cause either the buyer or seller (or both) to become irritated with each other over the terms of the transaction. However your TPN Realtor has broad experience working with buyer’s representatives – and your Realtor’s negotiating skills will usually smooth the issues and cause the transaction to proceed to a successful conclusion.

Step seven: Inspect/Appraise

Inspect: Upon acceptance of a buyer’s offer, the buyer will likely order property inspections - most of which will be conducted at the buyer’s expense. These inspections may include any of the following: structural, pest, radon, water quality and quantity, septic, lead, heating-plumbing & electrical.

The inspections are likely to be conducted by professional contractors. Items noted in these inspections as “serious” or “code violations” may be reported to you with a request from the buyer, that you make repairs, at your expense, prior to closing.

If and when this occurs, you will need to decide if you will do one, some or all of the suggested repairs. You can pick and choose. However, if there is a “code violation” or a serious repair (ex: needs new furnace) and you do not agree to make the repair – and the offer falls apart – you are required by state law to amend your Property Disclosure” to reflect the known deficiencies.

There are very tight timelines in the process of asking the seller to make repairs or correct code violations. Your TPN Realtor is fully aware of how these negotiations are conducted and the procedures to follow to protect your interests.

Appraisal: Upon the satisfactory completion and resolution of the inspections, the buyer’s lender will hire an appraiser to establish the current market value of your property. The appraisal must equal or exceed the price that you and the buyer agreed upon, OR the lender will not approve the buyer’s loan.

Should it occur that the appraised value of the property is less than the agreed upon selling price (and the buyer’s loan is denied) you may go back into negotiation with the buyer, OR allow the transaction of fail - return the buyer’s deposit  - and place your property back on the market.

If the appraisal is satisfactory, your TPN Realtor will then transmit all documents to your attorney and the attorney for the buyer. After the buyer’s attorneys have completed a Title Search on the property, the attorneys will coordinate a date on which a closing will be scheduled.

Step eight: Closing

Closing day is great fun, and a lot of work. Usually, on the morning of closing day, the buyer and the buyer’s Realtor will do a “walk through” of the property. They will be checking to see that all repairs have been done, that the property is “broom clean” and that nothing has been removed from the property that should convey with the purchase.

When you reach your attorney’s office, you will spend about 30 to 45 minutes reviewing and signing documents. Your attorney will fully explain every document to you.

If you have agreed to do any repairs to the property – it will be very helpful to bring in receipts, proving that the repairs have been made and the contractor has been paid. Lack of these receipts is often a cause for buyer concern and delay at the closing.

While your TPN Realtor plays no role in the closing, having transferred all of the necessary documents to the attorneys earlier – they will be at your side, ready to answer any questions that may be asked. THEN WE CELEBRATE!