About listing agreements

The common top three listing agreement choices are:

1) Open Listing

2) Exclusive Agency Listing

3) Exclusive Right-to-Sell Listing

The best choice for you will depend on your willingness and ability to tackle some of the home selling duties and the local real estate market climate.

Open Listing

An open listing lets an owner sell her home by herself. It is a non-exclusive agreement, meaning the owner may execute open listings with more than one real estate broker and pay only the broker who brings an able buyer whose offer the owner accepts.

Exclusive Agency Listing

An exclusive agency listing is similar to an open listing except the major difference is the agent will represent the owner. The owner still reserves the right to sell the property herself and not pay a commission. The broker is free to cooperate with another brokerage, meaning the second brokerage could bring an able buyer whose offer the owner accepts. Typically, the broker is paid a listing commission that is shared with the selling broker, so the owner pays both fees.

Exclusive Right-to-Sell Listing

An exclusive right-to-sell listing is the most commonly utilized instrument. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property herself without paying a commission, unless an exception is noted in the contract.

Create a Marketing Plan

Selling can entail a variety of marketing strategies. Once listed, it's likely that the home will be quickly entered into the local MLS (Multiple Listing Service) and placed on many local and national websites. Much of an agents work will be quiet and unseen and yet important. The quiet telephone calls, the work with contacts, arranging for and marketing open houses, the follow-ups with open-house visitors, conversations with ad respondents, web postings and other outreach efforts are all part of the process required to sell homes.

Your agent will create a marketing plan for your home that will help distinguish it in your local marketplace and attract buyers to your property. This may include posting your listing on the Internet, holding an open house and more. Professionals often use their own marketing systems to create a personalized selling program for clients. Custom tailoring your plan for the type of home you are selling will increase it's exposure and overall salability.  Some ways to accomplish this are virtual tours, featured home marketing on Realtor.com or other publications, advertising your open houses in newspapers or other frequently viewed media, email campaigns, and advanced networking with past clients and business contacts. Your agent should know the target audience and appeal to them with direct marketing, brochures and mostly an internet presence.

Setting the price

A key part of the marketing plan is setting the list price. If a home is priced too low, you wont benefit from the optimal profit. If a home is priced too high, potential buyers may be scared away. To determine the best asking price review the cost of recently sold homes, evaluate the competition and study marketplace trends. National Properties Sales Associates are trained to use this information to help you reach the right asking price. It is also helpful to discuss other terms and conditions, such as timing and items that can be included with the sale of the home. Both of these can make your home more attractive to potential buyers.

1) Location: You can't get away from this one. If your house is located in a desirable area that is in demand, you will be able to get a higher price than you can for the same house in a less desirable area.

2) Condition: A house that has been better maintained and shows better will always sell for more than one that has had deferred (neglected) maintenance and needs work.

3) Desirable amenities: If a house has amenities that are currently popular in the marketplace, it will bring a higher price.

4) Calculate the price per square foot: The average price per square foot for homes in your neighborhood shouldn't be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methodologies can be used to calculate square footage.

A formal written appraisal can be useful if you have unique property, if there hasn't been much activity in your area recently, if co-owners disagree about price, or if there is any other circumstance that makes it difficult to put a value on your home. Appraisers consider the location of the home, its proximity to desirable schools and other public facilities, the size of the lot, the size and condition of the home itself and recent sales prices of comparable properties, among other factors.

We offer the closest example of a written appraisal to all of our potential listing clients.  We produce a professional price opinion on paper that shows you exactly how we arrive at your homes value using appraisal methods and numbers.  We can explain the difference between salability factors and what items add to the value of your home.  We have an in-depth knowledge of the market and values gained through decades of experience in the field, and we can help you arrive at the price that makes sense to you and a potential Buyer.  In today's market it is very important to understand the price vs. time factor and how that effects your overall position.  If your property is not priced effectively in the beginning stages of marketing, it eventually deteriorates the property's chances for a sale.  Our goal is to be able to present your property as the best value for it's category and location in order to prevent a lengthy market time and price erosion.  Call us for a detailed evaluation of your home when you are ready.

Showing your home

First impressions are the most crucial moments in a Buyer's decision making process.  Check your curb appeal.  It is said the most buyers have already made up their minds about the home before they even enter the front door.  Buyers are also instinctively emotional about their choices, so you must appeal to their senses in every area of the home with attractive elements visually, with scents, and even sound. Although the buyer is a guest in your home, you want the buyer to imagine owning the home and have a sense of welcoming when they arrive. You don't want to make the buyer feel like an intruder, so welcome them into your home....and then leave!  Most Buyers prefer to discuss the home while they look, and are uncomfortable doing so if the Seller is nearby.

Now it's time to get your home ready for the spotlight. Start with a good cleaning, then eliminate any clutter, add a fresh coat of paint and tidy up the yard. Talk to your real estate professional about other tips that can help boost a home's curb appeal and impress potential buyers once they're in the door. One way to make a home more attractive is to purchase a Home Protection Plan. This insurance protects you, the seller, from paying repair or replacement costs of major items during the listing period. It also protects the buyer during their first year of homeownership.

Check the Temperature

If weather permits, open the windows -- if there is too much noise outside, close them. And if it's cold enough to wear a sweater to stay warm, turn on the heat. You want the temperature inside to be comfortable and to give the buyer more of a reason to linger, especially on hot or cold days!

Play Up the Visual

Open all the window coverings to let in light. Keep blinds partially closed that otherwise show undesirable outdoor scenery such as a dilapidated fence or a nearby structure that obstructs views. If you have seasonal photographs showcasing flower gardens, leaves bursting in color or a snow-covered lawn twinkling from street lights, then display them in a prominent position. Turn on every light in the house, including appliance lights and closet lights. 

A fire in the fireplace, and if you have water fountains, turn them on. They are especially useful for drowning out traffic noise. Place fresh flowers in areas they make a statement.  Colors on the walls can give the home a more distinct and cozy feel, but be careful not to go too far with the color schemes since buyers all have their own preferences.  Muted, soft representations of earth-tones and off-whites are most appealing, but if you decide on something with more green, yellows or others, just make sure you chose the lightest tone of the color to accent the room instead of taking it over.

Complimentary colors can be used as secondary balancing with pillows, vases, and window coverings.  As long as the colors contribute to an overall balance and understated attractive quality to the room.  Also, furniture placement and quantity can be a deterrent if it is not placed in an appealing arrangement or if there is a crowding effect.  Avoid furniture on angles in the room allowing buyers to see the genuine size of the room without hinderance.

Scents Make Sense

Even the smell of your house can attract or deter a Buyer.  heavy smells from recently cooked food can be a turn-off and should be avoided, but most people are pleased with the fresh scent of citrus or blossoms, and although it can be a cliche, the smell of freshly baked pie or cookies still does the trick!  Mostly, it is best to make sure there are no unpleasant odors, so bring in fresh air whenever possible and clean, clean, clean!

Sound

It's a nice gesture and shows the buyer that you are welcoming them by playing some soft background music for their showing.  this can be tailored to the style of your home by offering classical, light jazz, spanish or seasonal.  As long as the music is not loud, harsh or distracting to a Buyer, then it can make the showing experience memorable and impressive.

Negotiating the deal

When a buyer is ready to make you an offer they will contact you or your agent to let you know. Buyers should present their offer formally with a contract to purchase and sale. These documents can be obtained from the buyers or sellers agent, lawyer, or notary. If you are going to use their services to review the contract, and later transfer the property title to the successful buyer, they will happily supply you with some blank copies for free. It is also advisable to review one to become familiar with a typical real estate purchase and sale contract.

Most home buyers and home sellers want to arrive at a win-win agreement, but that's not to say either side would regret getting a bigger ` than the other. Successful negotiating is more than a matter of luck or natural talent. It also encompasses the learned ability to use certain skills and techniques to bring about those coveted win-win results.

1. Start with a fair price and a fair offer

There's no question that significantly overpricing your home will turn off potential buyers. Likewise, on the buying side, making an offer that's far lower than the asking price is practically guaranteed to alienate the sellers. Asking and offering prices should be based on recent sales prices of comparable homes.

2. Respect the other side's priorities

Knowing what's most important to the person on the other side of the negotiating table can help you avoid pushing too hard on hot or sensitive issues. For example, a seller who won't budge on the sales price might be willing to pay more of the transaction costs or make more repairs to the home, while a buyer with an urgent move-in date might be willing to pay a higher portion of the transaction costs or forgo some major repairs.

3. Be prepared to compromise

"Win-win" doesn't mean both the buyer and the seller will get everything they want. It means both sides will win some and give some. Rather than approaching negotiations from an adversarial winner-take-all perspective, focus on your top priorities and don't let your emotions overrule your better judgment.

Seller financing

If a seller helps to finance a real estate transaction by taking back a second note or even financing the entire purchase if the seller owns the home free and clear it is called seller financing. Usually sellers do this when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price.

Seller financing differs from a traditional loan because the seller does not give the buyer cash to complete the purchase, as does a lender. Instead, it involves extending a credit against the purchase price of the home while the buyer executes a promissory note and trust deed in the seller's favor. These special circumstances must be acceptable to the lender who makes the first mortgage on the property.

The necessary paperwork is prepared by the title or escrow company after the terms are worked out between the buyer and seller. If you are a seller considering such an arrangement, it is critical to thoroughly evaluate the creditworthiness of the buyer first. You should consult with legal counsel and your accountant regarding the potential consequences of this type of arrangement. Fear of default makes many sellers reluctant to take back a second. But seller financing can bring a higher price plus complete the sale sooner in some situations. For more information, contact the Internal Revenue Service for a copy of its Publication 537, "Installment Sales." Order by calling (800) TAX-FORM.

Seller financing offers tax breaks for sellers and alternative financing for buyers who can't qualify for conventional loans. If you are a seller, the risks you face are the same as those facing any lender: Is the borrower a good credit risk? Will the property hold enough value over time to allow for the repayment of all loans made against it? You should run a full credit check on the borrower, require hazard insurance on the property and include a due-on-sale clause. There also are financing, disclosure and repayment-term requirements that need to be met. Again, it is wise to consult a lawyer when putting together this kind of transaction.

The interest rate on an owner-carried loan is negotiable. Ask your agent to check with a lender or mortgage broker to determine the current rate on institutional first (or second) loans. Seller financing typically costs less than conventional financing because sellers don't charge loan fees (points). Interest rates on an owner-carried loan will also be influenced by current Treasury bill and certificate of deposit rates. Sellers usually aren't willing to carry a loan for a lower return than they would earn if their money was invested elsewhere.

Timeline and Paperwork

The Closing Paperwork generally consists of the following documents:

Deed - A legal description prepared by an attorney to transfer and record, in public records, ownership of property.

Title Insurance Policy and Certificate of Title - This coverage is issued by the title company after completion of the title search. They check to see if there are any judgments, liens or attachments that need to be taken care of to `clear' the title. After checking on unpaid taxes and assessments (e.g., sidewalks or sewer), the attorney provides a certificate of title to the lender and the buyer.

Homeowners' Insurance Policy - New home buyers must obtain a binder for new coverage on the home, and the seller is generally required to keep the property insured against loss or damage prior to the Closing to protect the new buyer's interests.

Mortgages - The mortgage contract gets recorded to protect the mortgage lender's interests. When a mortgage is paid off (also known as 'satisfied'), the home buyer will receive a copy of the ``satisfaction of mortgage" which is a document that indicates that the mortgage has been paid in full.

Property Tax Bill - Many homeowners will supply a copy of their property tax bill to the home buyers; if not, a copy can be obtained from the town or city hall Assessor's office.

Warranties and Service Records - Home buyers appreciate these records, if available from the home sellers, as they can aid in obtaining satisfaction if a product or service fails within the given time or usage limits. It is also helpful to know what service people the sellers have used in the past as they experience, sometimes for the first time, the maintenance of a home (furnace cleaning, snow plowing, plumbers, etc.)

Plot Plans and Surveys - An up-to-date survey will be required for the closing. You can look up a the current plot plan at the town hall and obtain a copy for a nominal fee.

Water and Sewer Bills - Proof of payment by the seller will probably be required for the Closing.

Utilities Records - Home-buyers generally arrange for services to be changed the day of or day after your Closing. Check with each service provider to determine how they handle requests and what is required for final readings and new service setups.