HOW TO SELL YOUR HOUSE WITH A REALTOR (ALL THE TIPS AND LISTS YOU NEED)
Reliant Realty ERA Powered Team – Friday June 1, 2018
If you want to make your house easy to sell, make it easy to buy...
Is it necessary to work with a realtor when selling your house?
Selling a home is an emotional experience. It is also a significant financial step.
Because a house, for the majority of people, is the most substantial investment they own, it makes sense to work with an expert in the field during the process. A realtor ensures that you are not taken advantage of.
Therefore, finding the right one – and then developing a good working relationship with this professional – is vital.
So, how do you sell your house with a realtor?
Step 1
Do Some Homework Before Interviewing Realtors
The realtor you work with becomes what is known as the seller’s agent. In other words, they ensure that you make the best deal possible by working for you.
Developing a good working relationship is a key element to success here. Finding the right professional you can work with does not have to be difficult.
However, before you even start to interview multiple realtors with an eye on hiring one, do some homework ahead of time.
Knowledge is power, and it prevents plenty of misunderstandings.
Below is a checklist list of what needs to be done before you start looking for a realtor so, once you've selected them, you'll be ready to hit the ground running.
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Know what your current mortgage documents say
Know what your current mortgage documents say. Who is on the title of the property? When you sell the home, all parties need to sign off. If someone co-signed on the loan, this individual might have to give you permission to make the deal.
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Know how much you owe
Know how much you owe. When you sell the house, you need to bring in enough money to pay off an existing mortgage. If you are upside down in the loan, make a backup plan for paying it off.
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Hire a gardener
Hire a gardener. Bring in a landscaping expert to boost the home’s curb appeal. Remove dead trees, clip overgrown shrubs, and put in some pretty flowers.
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Bring in a house cleaner
Bring in a house cleaner. Have a company do a deep cleaning of the home. If you cannot remember the last time that someone polished the stair rails, it is time to get help.
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Call a home inspector
Call a home inspector. You do not want any surprises as you near the closing. For this reason, it is good advice to have someone look at the home with an eye on uncovering significant problems. A foundation crack, outdated wiring system, or not-to-code home addition is something your realtor needs to know about before listing the property.
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Hire an appraiser
Hire an appraiser. This expert will pull information from comparable properties around the area. S/He will also factor in property upgrades you made. As a result, you know what your house is worth, which makes it easier to arrive at a realistic sales price.
Click on a vendor name to link to their website to more about the contractor, their licensing, reputation, service area, and to read reviews.
Camelot Home Inspection Services
(615) 713-6402
PO Box 331457
Murfreesboro, TN 37133
All-Pro Home Inspection, LLC
(615) 337-1277
242 West Main Street
Hendersonville TN 37075
Easy Choice Home Inspections, LLC
(615) 562-5177
695 Nashville Pike #133
Gallatin TN 37066
Disclaimer of Liability
While we strive to provide only quality links to competent and ethical service providers, we have no control over the provision and outcome of any services contracted with them and will not be liable for any losses and/or damages in connection with their services. Any action you take based on the information provided by Reliant Realty on our website is strictly at your own risk.
Listed vendors are pre-screened by HomeAdvisor.com. Click on a vendor name to read their Home Advisor information page to learn more about the contractor, their licensing, reputation, service area, and to read verified reviews.
Gregory K. Zieba & Associates
(615) 997-3955
1725 Sugar Creek Circle
Nashville, TN 37214
Fisher Appraisals
877-209-7849
5746 Youngville Road
Springfield, TN 37172
James B. Atwood, Inc.
615-456-0096
524 Rivercrest Cove
Nashville, TN 37214
Disclaimer of Liability
While we strive to provide only quality links to competent and ethical service providers, we have no control over the provision and outcome of any services contracted with them and will not be liable for any losses and/or damages in connection with their services. Any action you take based on the information provided by Reliant Realty on our website is strictly at your own risk.
Listed vendors are pre-screened by HomeAdvisor.com. Click on a vendor name to read their Home Advisor information page to learn more about the contractor, reputation, service area, and to read verified reviews.
Matthew's Cleaning Company
(615) 843-8841
P.O. Box 245
Madison, TN 37115
Gonzalez Cleaning Service
(866) 468-4517
277 Conroed Road
Nashville, TN 37211
Maid Right of Williamson County
(615)431-3073
504 Autumn Spring Court
Franklin, TN 37067
Disclaimer of Liability
While we strive to provide only quality links to competent and ethical service providers, we have no control over the provision and outcome of any services contracted with them and will not be liable for any losses and/or damages in connection with their services. Any action you take based on the information provided by Reliant Realty on our website is strictly at your own risk.
Other useful lists of contractors to consider when prepping your property to sell include:
- A handyman to help with small repairs and projects.
- If your home's exterior and yard need some attention, you may want to call in an exterior power-washing company to clean out gutters, scrub down the driveway, pool, or deck and a landscaper for general yard clean-up to up your curb appeal.
- Later on, when you and your realtor are ready to list, consider hiring a home stager to help with depersonalizing your home and broaden its appeal.
Step 2
When to Contact a Realtor to Sell Your House
With your Step 1 checklist complete, when do you contact a realtor to sell your house?
The home is de-cluttered, clean, shows some curb appeal and does not have significant problems. On the other hand, maybe it does have some issues that you are willing to address by reducing your selling price.
Ideally, it is not winter. Buyers are sluggish during the winter holiday season and the months immediately before and after. Moreover, few properties show well during the cold months.
Next, you have a plan about what to do once you sell the home. If your transaction goes quickly and smoothly, you may need to be able to move out on short notice, so have a plan. Know where to store items and where you're going to stay if you're next property isn't ready or you haven't found it yet.
When all these details are worked out, it is finally time to look around for a few realtors to contact.
Step 3
How to Hire the Best Realtor for Your Needs
Ask anyone in your circle of friends, and they probably know a realtor or two. In fact, there are plenty of people with a real estate license.
Not surprisingly, finding an agent is a snap.
Finding the right agent for you, on the other hand, is a little more difficult.
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Check real estate signs in your area
Check real estate signs in your area. Some agents specialize in specific neighborhoods. Doing so has the advantage that they can build a clientele of buyers looking for houses within a particular community.
As a result, they may have a larger pool of potential buyers to draw from.
In the same vein, look for homes that languish on the market for a long time and take note of the sign. Not getting the job done may be a red flag that this agent may not be a good option for you.
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Visit the website
Visit the website. Everyone has to start somewhere. There is no shame in being a freshly minted realtor.
That said, you may not want a newbie to cut their teeth, so to speak, on your sale. Opt for an experienced professional with a verifiable track record of transactions.
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Look for a tech-savvy expert
Look for a tech-savvy expert. A good realtor has a firm pulse on virtually all social media networks and professional listing services.
Buyers now spend more time than ever researching properties online before considering a visit to see if the house is worth looking at.
A good realtor will ensure your home gets plenty of social media and online exposure.
Want more advice on how to hire a Realtor you can work with?
You want to read....
"Choosing the Best Real Estate Agent: The 3Cs to Finding the Elusive Perfect Agent for You"
NEED TO KNOW
How Much Do You Pay Your Realtor for Selling Your House?
The average commission for a realtor is 6 percent of the home’s sale price.
If the professional incurs expenses, they typically add to this figure. Examples might include the fees the realtor pays to a professional staging service for creating an excellent first impression in your home.
Of course, commissions can be subject to negotiation.
For example, if your market is red-hot and inventory is low, a realtor will jump at the chance to represent you. As a result, they may be willing to lower the fee a little.
Moreover, some realtors already have a working relationship with a staging company and advertise it as part of their services. Therefore, you may not have to pay the additional fees for the service.
Conversely, your home may be difficult to sell. Maybe there are some problems with the property that an incoming buyer needs to address. It is unlikely that a realtor will discount a fee in this situation.
Step 4
Should I Just Sell the Home Myself? (No!)
The quote “He who represents himself has a fool for a client” has been credited Abraham Lincoln. Expressing such common sense, it's hard to doubt the advice originated with Lincoln.
It would be fair to say this piece of common sense applies to most real estate transactions.
Unless you have prospective buyers knocking on your door with cash in hand, it might be a better option to go through the process of selling your most valuable asset with the help of an expert.
Make a mistake here, and pitfalls abound...
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Signing a contract with an unqualified buyer
Signing a contract with an unqualified buyer. You want a buyer to come with a lender’s approval in hand. It means that the bank is highly likely to lend the buyer the money.
An unqualified buyer has to shop around for a loan. This process puts you at a disadvantage when it becomes harder than the buyer anticipates to get the loan they need to close your deal.
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Not putting in the time
Not putting in the time. Selling a house is a full-time job. The realtor makes it look easy.
That is usually the case because a professional realtor already has networks and contacts in place. You do not.
Unless you can commit a solid eight hours a day to the process, it would be best to hire someone.
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Lacking marketing and negotiation skills
Lacking marketing and negotiation skills. What separates the good realtors from those who close up shop is the ability to market properties with just the right level of aggression.
Most people do not have these marketing and negotiation skills.
On TV, the home improvement shows make the process look easy. It really is not.
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Check your emotional investment
Check your emotional investment. These are all important mistakes that often happen when representing yourself in a real estate deal. However, the biggest pitfall here is the emotional investment you have in the property.
To you, this is home. The powder blue color of the bathroom is the same that you saw on the trip to Europe when you toured Versailles. To you, the color is an example of European chic. To a potential buyer, it is an eyesore.
Bottom line is you cannot look at the venue with the impartial eye of a professional sales expert.
Take some time and watch the home improvement shows on TV. Look for the ones where the hosts take buyers through the properties.
Listen to the ways that these prospective buyers are criticizing what the owners of the property did. Ask yourself, do you really want to deal with that every day? The answer is probably no.
Step 5
Questions to Ask a Realtor When Selling Your Home
You have thought it through and decided that you will enlist the help of a professional to put your property on the market. In fact, you have found a realtor who you think would be ideally suited for the job.
There are probably some questions to ask before you sign on the dotted line...
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How will the realtor handle showing your house?
Selling your home requires a level of disruption and inconvenience to your daily habits.
To limit how much disruption and inconvenience you experience, it's a good idea to find out how your realtor wants to handle visits with prospective buyers and decide if you're onboard with how and when they show your property.
Even if the realtor will do so during business hours when you are out of the house, it's inevitable that some showings will take place when you would otherwise be home.
There will be those times in the evening and on the weekends when you are home. Can you agree to leave home with a 15-minute notice? Do you need more time?
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What's the back-up plan?
Discuss a backup plan. Ideally, you will receive the asking price. But what happens if you do not?
Having this discussion early in the relationship with your realtor ensures you're both on the same page. It also empowers them when negotiating price on your behalf.
How low are you willing to go? Your realtor can weigh in on how much other sellers in your area had to divert from their initial asking prices. In fact, the price discussion may be lengthy.
Although you know how much you need to bring in to pay off existing loans, you do want to squeeze out every penny possible. Talk about quick, inexpensive improvements you might make to the home to increase a possible bid.
At the same time, you need to differentiate your sentimental value of the property from the actual worth of the house.
Step 6
Questions That Your Realtor May Ask You (and here is how to answer them)
![Consulting with your real estate agent is important when selling. Reliant Realty, TN](wp-content/uploads/2019/05/multiracial-group-of-thoughtful-people_1267282.jpg" "Consulting with your real estate agent is important when selling. Reliant Realty, TN")
While you undoubtedly have many questions for the expert, they will also have some for you.
For example, what types of buyers do you want to accept? Some sellers want to help with preserving the character of a neighborhood. They might favor the offer of a family versus a group of college roommates.
Next, there is the question about qualified and unqualified buyers.
Are you willing to accept an offer from a prospective buyer who does not have a lender’s pre-approval letter? Although these deals might fall through, they can also net you a higher price.
Then there is the buyer whose purchase is contingent on the sale of another property. If there is a hiccup with that transaction, it can jeopardize your timeline or even the deal itself.
Of course, your realtor also wants to know how flexible you are with the asking price.
Their focus is to to get you top dollar, but depending on your area, the condition of the property, and available inventory, you may have a difficult time reaching your target price.
They'll want to know what approach to take on pricing: Do you want to start at your minimum asking price and hope that a bidding war ensues? Do you want to go a little higher to leave yourself room for negotiation?
Alternatively, is there a bottom-line figure that you just cannot go below? For most, this is the amount of the mortgage that is currently securing the property as well as any liens that have to be satisfied at the time of the sale.
Finally, they need to know what your timeline is. If you need to sell quickly, they may not push as hard in negotiations. This approach puts you into the category of motivated sellers.
On the other hand, if you have an open-ended timeline, they may encourage you to wait a little longer before accepting an offer that is more to your liking.
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What types of buyers do you want to accept?
What types of buyers do you want to accept? Some sellers want to help with preserving the character of a neighborhood. They might favor the offer of a family versus a group of college roommates.
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Are you willing accept offers from unqualified buyers?
Are you willing accept offers from unqualified buyers? The question about qualified and unqualified buyers is important to decide up front.
Are you willing to accept an offer from a prospective buyer who does not have a lender’s pre-approval letter? Although these deals might fall through, they can also net you a higher price.
Then there is the buyer whose purchase is contingent on the sale of another property. If there is a hiccup with that transaction, it can jeopardize your timeline or even the deal itself.
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How flexible you are with the asking price?
How flexible you are with the asking price. Part of the discussion around your backup plan, how flexible you are around price is important to effective negotiation
Your realtor's focus is to to get you top dollar, but depending on your area, the condition of the property, and available inventory, you may have a difficult time reaching your target price.
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What pricing approach do you want to take?
What pricing approach do you want to take? Your realtor will ask what approach to take on pricing: Do you want to start at your minimum asking price and hope that a bidding war ensues? Do you want to go a little higher to leave yourself room for negotiation?
Alternatively, is there a bottom-line figure that you just cannot go below? For most, this is the amount of the mortgage that is currently securing the property as well as any liens that have to be satisfied at the time of the sale.
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What is your timeline?
What is your timeline? Your timeline - how quickly you want to sell your home - is an important part of your realtor's negotiation strategy.
If you need to sell quickly, they may not push as hard in negotiations. This approach puts you into the category of motivated sellers.
On the other hand, if you have an open-ended timeline, if a buyer makes an offer below your asking price, they may encourage you to wait a little longer for an offer that is more to your liking before accepting a lower price.
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Step 7
The Process of Selling a House with a Realtor
You found the perfect realtor. You have agreed on the asking price. Now it is time to get down to the nitty-gritty of selling the home.
Although each professional works it differently, there are typically some commonalities in their approaches.
With the home in ideal show condition, the realtor can now bring in prospective buyers by following the schedule that you agreed on.
If there is a change from this schedule, they will contact you ahead of time to ask if it is okay to come in.
Whenever possible, accommodate these requests. The more people see your house, the higher the likelihood of someone making an offer.
Your realtor typically also hosts open house events.
While you and your family are gone, the professional opens the home and remains on the premises to greet visitors. The realtor will advertise the open house with signage as well as online.
Some realtors bring their assistants to these events, which helps to engage multiple interested parties at the same time.
For the real estate professional, these events are excellent for connecting with consumers who are in the market for a home. For you, the open house is a great way of getting exposure across a broad range of the buyer demographic.
As offers come in, the realtor presents them to you.
Some realtors will accept offers during, and right after, an open house event. Based on your criteria, s/he will suggest the proposals that are the most advantageous to you. Once you select a buyer, it is time for the end spurt.
Step 8
Signing a Purchase Contract and Closing the Deal
Your realtor has found a buyer for your property. You're rounding third base. Next is the sprint home.
Now is the time to confirm the purchase price, schedule a home inspection, hold an appraisal - if these weren't done in Step 1 - and set a closing and escrow date.
If you did have the home inspection done in Step 1, you should already be aware of any problems. The same holds true for the appraisal. By paying for them when you started the process, you were able to get this information ahead of time and avoid unpleasant surprises now.
If the home inspector finds something that needs to be addressed, you have the option of spending the money on the repair or building an allowance into the purchase price for the buyer to fix it.
Assuming that everything checks out, you proceed with the closing.
Your realtor accompanies you and ensures that you sign the right papers and that your lender receives payment.
Depending on the contract you signed, you may have to hand the keys to the property over right away or have a specified amount of time to vacate the premises.
Congratulations! You've sold your house the easy way. The right way. Time to pack...
CHECK OUT SOME OTHER POPULAR LINKS
Check out these other popular links
Additional Resources if You're Moving to Tennessee
Searching for a house can be both exciting and stressful. Here are online resources to help you plan your move.
- The Nashville Chamber of Commerce "Getting Established" page is a great resource for information on a variety of topics and is a great place to start.
- Department of Motor Vehicles instructions to re-register your out of state driver's license and vehicle.
- Check out the neighborhood! Read up on Nashville's eclectic neighborhoods and find your ideal vibe.
- Have kids? Learn about schools and their ratings before you move.
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