Listing Your Home, What You Should Know !

This week I am going to write about something I don't talk about very often which is sellers who are new to the process of selling their home.  Now some of you might be thinking this doesn't apply to you but it just might so I have compiled a quick list of sellers that is a sign you should take the time to read this blog:

• You purchased your first home from a For Sale By Owner 
• You have not sold a home in the last 5 + years 
• You inherited a property or are an Executor of an estate 

One of the most important steps to selling your home is the paperwork, not only signing it but reading it and understanding it! I can't tell you how many homeowners who have not sold a home recently are very surprised by the amount of paperwork that now goes along with listing your home. 

NYS Agency Disclosure 

New York State requires that anyone who is buying/selling a home fills out the agency disclosure paper, it clearly defines who it is that the Realtor is working for.  Obviously you will sign that the agent will be working for you, but NYS has changed with the times and they now address Dual Agency before it exists.  

Dual Agency is when your agent works for both you as the seller, but also works for the buyer.  This can sometimes cause a conflict of interest, if the deal requires negotiating it can blur the lines of who your Realtor must disclose what to.  It is my recommendation that when it comes time for you to sign this piece of paper that you require if Dual Agency exists that it is Dual Agency with a designated sales person.  What this means is if a buyer walks into your home and wants to negotiate a deal that your Realtor will have an agent from their office work for this buyer rather than representing both sides of the deal.  

Multiple Listing Service Contract

This is a very important contract for you to read most Realtors will tell you it is standard and direct you straight to the bottom to sign.  They are correct when they tell you it is a standard form, but you should be reading it because this is the detailed description that will be on not only on MLS but all of the additional websites that your home will be listed on.   

You want to check certain things in particular: 

1. Taxes are correct (Ex: If your taxes are not correct you may end up with a buyer who is unable to purchase because they were mis-informed, remember pre-approvals do include the yearly taxes)
2. Make sure the number and descriptions of rooms are correct (Ex: If your kitchen is an eat in kitchen, you must make sure it is accurately inputted. These are things buyers will be placing in their search criteria and you wouldn't want a oversight to cause potential buyers to not see your home.  
3. Be sure your floor plan is accurately described (Ex: If you have an entry hall, or a laundry room you want buyers to know that because these might be important to them)
4. Utilities are described completely (Ex: Some people will have a preference when it comes to these things, again you never want to misrepresent your home, even a simple mistake can turn off a buyer) 
5. This last one may upset some Realtors, but the 2nd page of your MLS Listing agreement is where it shows what the commission will be, and where it will be going.  Remember there are 2 sides to every deal if your agent has told you that they will be taking a 6% listing because they split it equally with the buyers broker make sure that it is written that way in your contract.  

Exclusive Listing 

This is something that you may or may not see, if you are listing your home on Multiple Listing Service you should not be signing this paper unless there is a beginning and an end date filled out.  I will sometimes hold a listing as an exclusive until I have the pictures uploaded, & the virtual tour online but when I do I always write that the end date is at the homeowners request.  You might wonder why I do this, and it is just the way I run my business I want to make sure that my listing is up to not only my standard but to my sellers as well.  Once the homeowner sees the listing and approves it we than release the listing onto MLS for it's big debut !! 

Property Condition Disclosure 

The property condition disclosure is pretty much self-explanatory, it is a semi-large packet that details the history of the property.   Most Realtors, and your Real Estate Attorney will recommend that you do not fill this out. Instead you at closing you provide the buyer with the  $500 opt out credit.  The reason we recommend you do this is to simply protect yourself from future liability, even the most knowledgeable homeowner can be unaware of hidden issues in their home.  

Lead Based Paint 

If your home was built prior to 1978 than you are required to fill this out, and your Realtor is required to give the buyers a informative booklet about Lead Based Paint.  This is a common form that you, the buyers, and all Realtors involved will need to sign and is required.  If you are not sure what year your home was built it is always better to fill one out to be on the safe side.  

Seller Services Guarantee 

Unfortunately not all companies offer this, but if you are going to list your home I would recommend not signing with a company that does not provide you with one.  This is your guarantee that the Realtor will provide you with all the services he/she agreed to do in order to get your home sold.  It also gives you the ability to walk away from the contract with them if they are not providing all the services, I can't tell you how many unhappy expired clients I come across because the Realtor did not do what they had assured the client they would do, always remember that you have your guarantee and if your Realtor isn't doing the job perhaps they need to be reminded of that guarantee.  

Now, I have to take a moment to remind you that in order for you to be able to hold your Realtor accountable for the work that they are supposed to be doing, you must also do your part.  Mis-communication about the marketing plan for your home, can often cause a strained business relationship between Realtor and homeowner so you want to go over the details prior to signing anything.   

Coldwell Banker Residential Brokerage does have some additional paperwork that your average Brokerage does not have.  The reason is very simple, we are not your average company we offer additional services to our sellers that not only get their home sold but to make it a easy and enjoyable experience.

Affiliated Business Agreement

If you are one of my frequent readers than you have heard me talk about all of the additional services we are affiliated with.  For today I will not be going into the description of them, but I will link the appropriate information so you can look at the ones you may not be aware of.  Our affiliated business agreement, is to let you know the different companies and services we offer but we as agents do not profit from our buyers or sellers using them.  The reason each of these are so important to our company as a whole is the difference it makes for our clients.  

Coldwell Banker Mortgage Company

Coldwell Banker Home Warranty

Coldwell Banker Title Services & Insurance

Coldwell Banker Concierge Services

You will also receive a copy of your Comparative Market Analysis, be sure you keep this in your file for future reference.  Also make sure you keep full copies of everything that you signed, as well as additional paperwork you may sign during the time your home is listed.  Coldwell Banker Residential Brokerage, does have a system set up on a secured server that will store copies of all the paperwork you will accumulate during the transaction.  This is a great tool for someone who is on the road for work,  lives out of state, or just prefers keeping documents stored online rather than filed away.  


I hope everyone finds this blog helpful, if you have any additional questions please always feel free to comment and I will respond to your question as quickly as possible ! 

The Important Questions To Ask The Realtor BEFORE You List Your Home!

I would like to take a minute to talk about some of the key things homeowners who are selling their home should be asking the Realtors that they are interviewing.  If you have had the opportunity to meet with me, you will know I prefer homeowners that ask questions, and expect results.  It is a part of my job that I truly enjoy, because of that I do frequently looks at homes that have expired and see if there is anything more that could have been done.  After meeting with quite a few of these homeowners I have come up with a list of questions that may have gotten overlooked, and unfortunately caused someone's home to be mis-managed during its first time on the market. 

Pictures
Ask about the pictures, how many and what quality? If your home doesn't have any pictures, or you can't actually see the size of the room than chances are it is not going to be giving that great first impression that you want it to.  Over 90% of homebuyers find their home online. 

Internet Presence
What kind of advertising accounts do they have with those internet sites such as zillow, trulia, realtor.com.  By having those listings branded with your realtors information, he/she will directly be getting those leads to follow up with them.  I personally have this for all of my listings I want all of my potential buyers coming directly to me with no middle man!

We also have a system call LeadRouter, which allows leads to come directly to us within seconds of the information being requested.  It is something I frequently show my sellers, and they are able to see it immediately.


Viewings and Open Houses
This is one of the most important things to ask, is who and how are they going to be showing your home.  Is your Realtor going to be there when it is shown? Who will be holding your open houses, how often, and in the event another agent from the office will be what do you do to prepare them for the open house?

I can't tell you how many times I have heard these kinds of complaints from expired listings, these are the important questions you should be asking because these are the things that will get your home to sell!  Having buyers agents hold your open house is not a bad thing, I personally have done this myself but I am sure to go over the home with the agent who is covering it first.  If I am unable to attend a showing of your home, rather than not allow another agent in, I prefer to be sure to call them right after the appointment to answer questions and get the feedback.

You should be asking how often they plan on having open houses, many times a will find upset homeowners because during a period of 6 months they only had 1 open house, this should be part of the market plan you saw before you signed a contract listing the home.

Agent Promotion
What information is available on their personal websites, many times Realtors family members will be our best advertising, but they will almost never remember what our website url is, so they give the friend our name, and the friend than googles us.  What comes up when you google your Realtor, and what does their website offer to the consumers?

You always want an agent who is promoting him/herself, if they are promoting themself than they are also promoting their listings, and your home!

What If You Don't Want To Sell It ?
Life happens and sometimes circumstances forces us to change our path or direction fairly quickly.  Someone who may have been selling their house might have a change in heart, or life could have happened and it needs to be put on the back burner.  Their are also circumstances where a homeowner has an horrible experience with a Realtor but was forced by the contract to continue the listing, even if the Realtor was not doing their job. 

Our company has the "Sellers Services Gurantee" this allows a homeowner to retract their listing they have with our company if we are not living up to our end of the deal. 

If it is a case of life happens, we are not the kind of company that wants the listing to just say we have it, we understand and will withdrawn your listing if something comes up where you no longer want to sell your home. 

What Kind Of Company Is It?
Most brokerages that are owned have a managing broker, this is the one who really oversee's and takes responsibility for all of the agents that work with his company. 

In some agencies there are competing brokers, which means this person takes his own listings and clients, and than on top of it helps everyone else.  This is alot for any one person to handle, and I chose to work for a company who has a non-competing broker.  Our brokers only job is to be their for us, and for our buyers and sellers.  He will meet with our sellers to go over market trends, and makes a point of going and looking at every home our company lists. 

Commission
Many companies now are keeping with the National Average, as far as commission is concerned with the 5%, but their are many discount brokerages "pretending" to be full service brokerages but are not offering the Full Service Guarantee, but still charging the full service fee.  Please refer to my blog outlining exactly what a Full Service Agency offers.


These are just some of the many things I come across while I am conversing with homeowners that have listed their home only to have the listing expire a few months later.   There are of course some cases where the home that expires is because it was either over-priced for the market, or impossible to show which is not always the fault of the Realtor.  The purpose of this blog is again to educate homeowners on the importance of asking the right questions!

Safety Tips For Sellers

We are lucky to live on Long Island where crime is not a big issue. However, I still stress to all of my sellers to play it safe while their home is listed for sale. Here are some very important tips to remember:

1. All Buyers Must Be Accompanied By An Agent.

Sure, some people may see your sign and take it upon themselves to knock at your front door. Do not let them walk through on their own or give them information about the home. Most agents have their cell numbers on the sale sign.  Tell them for more information or to schedule an appointment, to call your agent.

2. Put All Valuables Away.

When you list your home for sale, please put away or better yet, lock up all valuables. Most real estate agents have a comfort level with their buyer but it is impossible to screen every person that wants to look at your home. Most Realtors never leave their clients alone but it can still be easy to slip a piece of jewelry into a pocket. Also, make sure ALL valuables are safely put away during a public open house. If we get a good turnout, it is nearly impossible to keep an eye on everyone that walks through.

3. When Returning Home After A Showing Check Every  Doorway. 

Agents are responsible for securing a property when leaving however, they may be so intent on showing the property that they forget to lock a door.

4. Stay By The Door

If you are going to be home during a showing we always recommend you stay out of the way of the agent and their buyer so they do not feel pressured.  There is another reason and that is because you are opening your doors to strangers, always make sure there is nothing between yourself and your front door.  It is always better to be safe than sorry, and it will allow you to keep an eye on who else could be coming in (ex. Family/Friends). 

Are Full Service Real Estate Agents Worth The Money ?

Consumers are always looking for ways to save money, and paying real estate commissions can amount to tens of thousands these days. Not an insignificant sum to most people. Is it worth it to hire a full-service real estate brokerage over a discount service? Reasonable question. It's one I hear often. And the answer is it depends.  

Type of MarketplaceIf you're in a seller's market right now, homes are probably selling the minute they hit the multiple listing service. A one-eyed sheep with two paws tied behind her back could plop a home into MLS and get an offer. Will it be the highest price you could get?
Buyer's markets exist when inventory exceeds the supply of buyers. In these markets, some homes aren't selling at all. This is where expertise and extra work pays off. Listings that sell at top price are typically those exposed to the most buyers, which are priced well, marketed well and show well. 
MLS and the Internet
I cringe when I see new listings hit MLS without a photograph because I know that agents and buyers are passing them over without a second thought. Many multiple listing services accept 8 to 12 photographs nowadays. For that reason, many full-service agents hire professional photographers and shoot double the photos required.                      * The pros spend considerable time sorting through photos to select those with the most light, the best angles, sharpest contrast & color.
                    * Photos are cropped and resized to accentuate positive attributes.
                    * Each photograph is entered into MLS with a full-length enticing description.

When I see a photograph taken by the multiple listing service instead of a pro or the agent, I also see a lazy real estate agent who doesn't care enough or isn't getting paid enough to properly market her client's property.  
Signage
Lots of mom 'n' pop operations and discount brokerages don't spend money on professional signs because they don't believe in it or they can't afford it. Good signage is free advertising. Many full-service firms will advertise:
                    * Main office phone number
                    * Agent's personal cell phone or voice mail number
                    * Web site for more information
                     * Virtual tour links

Marketing Materials
Full-service companies tend to project quality, and that means four-color flyers and four-color direct mail pieces. The days of hiring neighborhood kids to toss photocopies on neighbors' front steps are gone. Full-service marketing is first class.  
Open Houses

Not all homes are right for an open house, but those that are require finesse. This means working the buyers who come through by pointing out impressive features of the home without making the buyer feel oppressed or hounded, and that in itself is an art. It requires the service of an experienced sales person. Many discount brokers refuse to hold homes open.
Full-service agents counsel sellers. They find out what made the seller decide to buy the home and how that moment happened. Then, they employ that knowledge at open houses. For example, suppose a seller said that moment came when she first stood gazing out at the pool. When she turned to her husband and gasped, "I can't believe we can afford to buy this home." Good sales people at an Open would ask buyers to stand in that same spot by the pool. Then, they'd share the seller's first experience verbatim.  

Negotiation
Real estate is an extremely competitive business, and there are many agents fighting for the same listings. A full-service agent who wins the listing is probably a good negotiator, a person you want on your side during offer negotiations. Think about it. Agents who can persuade you to pay what they feel is reasonable, will probably persuade a buyer to pay your price. Ultimately, that means more money for you.
Final Sales Price

Sometimes full-service agents lose listings because the seller was promised a higher price based on hot air and a lower commission. It's these listings that often show up in MLS a month later with reduced prices. The amount of the price reductions, not surprisingly, tend to exceed the difference in commissions between the dualing agencies! In these scenarios, sellers received fewer services and ended up losing money on the sale as well.
If you can't decide between an agent who charges 1 or 2 percent less than another, think about how you would feel if you had to reduce your sales price, say five percent, to get the house sold. Ask the agents to show you their last 24 months of price reductions and compare them.

How Much Do Agents Make?
Agents are paid by brokers. Brokers retain a portion, sometimes 50%, and pay the balance to the agent. From that, the agent pays her overhead and taxes, which can easily amount to 50% of the net. A listing agent's true salary ranges from 20% to 30% of one-half the commission. Full-service agents typically spend more on overhead than their competitors; by refusing to compromise service, they tend to charge more.

For Sale By Owner - What You Need To Know !

After another day of showing appointments I had the pleasure of coming across an adorable home, oddly enough it was literally between 2 listed homes but was a For Sale By Owner.   I had the opportunity to sit and have what turned out to be a great conversation with the owner, and gave me a much needed break from my day of showing homes to a nice couple from the area.   Bad experiences is almost always what gives way to a For Sale By Owner, and I believe just like anything else there should be somewhat of a warning of what they will truly be in for, perhaps saving them the time and energy that could be better spent with their family while the realtors handle the sale of their home. 

So in hopes of helping some FSBO save some time, this is just a few reason why we always recommend you use a Realtor ! Now some may be of the opinion that I just want the listing, and yes I would like to list your home but I don't want to force you to list with me.  At the end of a very long day, the most enjoyable part is knowing I helped someone and yes believe it or not I have turned down listings because I knew that I could not get someones homes sold for the price that they wanted/needed.   

1. For Sale By Owners lack access to qualified buyers or a means to qualify buyers.

Real Estate agents like me focus on building a buyer’s list. As new homes come on the market, we are consistently feeding our buyer’s lists details of new properties for sale. When you list your home for sale by owner, even if you post on websites like forsalebyowner.com or craigslist.com, the majority of buyers won’t know about your desire to sell. Most buyers work with a real estate agent to find the home of their dreams. According the the National Association of Realtors, 9 out of 10 buyers buy with the help of a real estate agent, which means more than 90% of all real estate transactions occur with the help of real estate brokers (We are able to track these numbers because closings are public records and NAR sends out surveys to FBSOs asking for their feedback). A for sale by owner listing generally does not fall upon an agent’s radar and even if it does, the Multiple Listing Service (MLS) provides a significant list of homes to show and market to buyers. Even if you get buyers to call you and preview your home, you will not have a means to qualify them. Agents work with lenders, brokers and will know ahead of time how much home a buyer can afford.

2. You’ll get noticed by some buyers but from the wrong type of buyers.

A number of real estate investors will shop for sale by owners ads because they know you are unlikely to know the value of your home. Some savvy investors or buyers will even discount your home more than the price of a real estate commission since you are unrepresented and not using the help of an agent. SO, in actuality you might be losing even more money in the long term. Let’s face it. Some buyers are insincere and simply do not have the means to buy a home, yet they will contact you to fill their curiousity. Now, for you to show your home that is unlikely to buy in the near future is a waste of time for you whereas for an agent, a buyer that can buy now, may one day do so. So an agent will remain in contact with this person while you will lose interests and discard their contact info.

3. For Sale By Owners Suffer from What We Agents in the Real Estate Business Call Follow-Up Failure.

I don’t expect you to think like an agent, but when you’re selling your home by owner, you have to think follow-up. First, you should know that you’re going to get a ton of phone calls once you add a yard sign, a craigslist ad, or some other type of Internet marketing. The phone calls are going to come from agents that want to represent you. At the same time, you’ll get calls from investors looking to steal your home and maybe one or two serious buyers. What many for sale by owners do is let their calls about their home sale go to voice mail, which is a BIG mistake. The act of screen your calls will likely cause you to screen out the serious buyers. Besides, buyers buy at the height of their excitement. If you fail to call back in a timely manner, you’ll lose their interests. Also, if youmake changes to your home or listing, you’re far less likely to call the buyers, agents, or investors back who first inquired about your home initially to tell them about your price changes or other changes to your listing.

4. Buyer’s Don’t Trust For Sale By Owners

Some buyers are first time home buyers and they may not know how to approach you. They may even perceive you as being difficult, non-negotiable for not hiring an agent in the first place or over-priced. They certainly won’t trust what you say about the home or if they do, they’ll take it with a grain of salt. You see, real estate agents have a legal and ethical obligation to disclosure latent or hidden defects of the home. These defects might be things you might leave out, unintentionally simply because you might not know what to disclose in the first place.

5. Its Hard for For Sale By Owners to Be Objective

You’ll have a hard time selling the value of your home. Buyers will be wary of you for the reasons stated above.

6. No Contract, No Representation, No Full Disclosure Costs More Money

Real Estate agents are in the business of getting people to the meeting of the minds, which is where you have a written agreement between you and the buyer. Agents can provide you with a standard real estate contract, one that you can alter with the help of an attorney. If you do not provide this standard contract to your attorney up front, many attorneys will charge an higher fees for having to write a contract and essential negotiate terms between you and the buyer or the buyer’s attorney.

7. Homeowners simply do not have the time to market their homes effectively.

You more than likely have a full time position doing something else other than trying to sell your home. Buyers are a lot of needs and in some case, they might need to see or show the home to a person they trust. They’ll have to have it inspected and have an appraisal done on the property if they intend to finance the purchase. If you have other commits, i.e. your job, you’l have a hard time setting these appointments.

8. Insufficent Marketing Exposure

Real Estate Agents like me have a marketing budget. It takes money to make the phone ring with interested buyers. Many for sale by owner eventually list with an agent simply because they don’t have the funds to keep pace with the other homes for sale that might competing with your home.

9. Owners don’t appreciate or understand the value of a good agent.

Real Estate Agents, Realtors like me, are the glue that keeps a difficult deal together. When you sell by owner, you are less likely to get to the closing table even if you secure a buyer because buyers will inevitably ask for things like repairs. Since you represent yourself, you are less likely to be agreeable to their demands and even less likely to negotiate fair terms for yourself. Attorneys, even good real estate attorneys, rely on real estate agents to seek a balanced or fair resolutions between you and the buyer.

10. Owners will want to hire a cheap broker or agent which is generally more costly in the long run.

The desire to “save” money generally ends up costing you more in the long run, especially if you have to list with multiple agents to get the job done.

If you would like to see what I can do to help sell your home please feel free to contact me.  

And always remember one thing, IN TODAY'S MARKET YOU NEED TO SELL TO TODAY"S BUYERS !!