2 part question-Selling my home

**offthemark** · 09-07-2006, 03:53 PM

AZ to NY. That's backward's.

I've sold a couple so...

Agent rules are usually set by the state and can vary. So any advice from someone outside AZ may not apply. Best thing to do is ask your friends for recommendations. Lastly, if AZ uses a Multiple Listing Service (buy side agents can see all firms sell side listings) then I would go for the lowest commission. Most places, commissions can be negotiable.

You will probably be money ahead to fix anything mechanical as you will probably have to fix it after inspection. I would only make cosmetic upgrades where the current is objectionable. For example, I'd leave the garage door. If you have a room painted in orange and purple stripes, get out you roller. Cosmetic upgrades will make it sell faster and might get you more money, but probably won't get enough money to offset their cost.

Good Luck.

**Tom Miller** · 09-07-2006, 04:10 PM

One way to find an agent is to go "pretend" house-hunting -- go to open houses and talk to the agents there. They won't mind that your not looking to buy, since they'll be just as glad that you're looking to sell.

Best tip I've heard for showing your house -- get as much of your stuff out as possible for two good reasons: it'll make the place look tidier/roomier, and it'll allow the viewer to more readily picture their stuff in your (soon-to-be their new) house.

Regards,
Tom

**GeekMom** · 09-07-2006, 04:18 PM

Talk to friends who have bought/sold. They can usually tell you who to avoid! Also, be aware that if you contract with a realtor who is NOT working well to sell your home, you are not necessarily stuck with him/her. We had problems (twice) and were able to break the contract to hire someone new.

Best agent we had made us paint interior white (or variation of). We had custom paint in several rooms, but apparently was outdated. Your tastes will not necessarily match those of the buyer. Echo the comment about getting some of your things out of the home to free up space and cut clutter. Makes a house feel much smaller than it really is!

Good luck on your sale and move!

**jAngiel** · 09-07-2006, 04:44 PM

Around here they just call a few different agents to come by and give a market analysis. They look around at everything then suggest some things that you may want to fix prior to listing and also suggest what they could list it for. Listen to what each has to say and go with whoever you are comfortable with.

Good luck!

**LinuxRandal** · 09-07-2006, 05:22 PM

Giving the interior a fresh NEUTRAL coat of paint is good, as is a general cleanup and the mechanical stuff your aware of. Plus any agent is going to tell you to declutter! Nobody wants to walk into a house that they can't see a wall with all the pictures, and all that clutter makes the house look a lot smaller.

**jseklund** · 09-07-2006, 05:54 PM

Bymers, I am a licensed real estate broker in MA, my mom has been selling real estate for almost 30 years, and I do not really participate in RE all that much. I am more of a telecom/marketing/business consultant for entrepreneurs at the moment. So in other words, I have my own opinions that may differ from your std. RE Agent, but I am trained.

I agree with Offthemark that rules are different in different states- as far as the LAWS go. However, marketing is marketing no matter what state you're in. I WOULD NOT go with the lowest commission. First off, the lowest commission realtor is the person who did the WORST job of selling their price to you- so how are they going to get you the BEST price when they are selling to your potential buyers? It's easy to drop commission to get listings, but that doesn't make you a good realtor. And as in any industry there are good and bad- but in Real Estate there are TONS of people like me- we have our license and do it weekends. Some of the weekend warriors are better than the full timers, some of the full timers are glorified weekend warriors, and most of us are nothing more than over-paid housewives. I am not bashing housewives- just using the term. A man can be a housewife too!

However, you are correct- a professional agent can be a big asset, will bring more buyers, and will bring you a higher price. The higher price is probably argued by many, but I don't base this assumption on experience. I base the assumption that they will bring a higher price on economic theory, particularly a segment called auction theory, that shows an intermediary who provides a credible closing mechanism will bring a higher price. However, this same theory says that while Realtors bring you the highest price, they may also still cause you to leave money on the table. Unless you want to get into heavy economic theory- the bottom line is, go with a realtor and pay them a good commission.

Now, don't go with just any realtor, pick a good one, which is your real question- how do you do that? Well, here's how I would do it:

1. Run an ad in the paper- "For Sale By Owner". See how many realtors call you. I bet you'd be suprised at how few will actually call you- but the ones who DO call and try to get your listing have told you that they are not afraid to pick up the phone and call strangers to drum up business.

2. Ask friends/family who have sold houses. GeekMom is on the money here. They will tell you who to stay away from, who was good, etc. They may even give you some horror stories as to what they didn't like and what to watch out for. However, just because someone got lucky ONCE and sold a listing they had, doesn't mean they sell everything or even do a good job selling, so be careful about going on a friend's referral for a realtor.

3. Drive around town and see who has signs on the most houses. Again, they may have the most houses because they have the most friends, got lucky, or are slick talkers, so be leary. Make a list with phone numbers.

4. Call back the people you found through 1-3, and interview the top people. Ask for a CMA.

5. Ask questions like, "How will you sell my house?", "Why should I go with you?" "Why should I pay you an extra 1% commission?"

MOST realtors will do one of two things- they will drop their commission like a brick or they will stick to their guns. What you want is the realtor who sticks to his guns, but can explain WHY he is an extra 1%. Don't fall for meaningless talk either, look for concrete reasons of what they will do to sell your house, and things that they do differently than the pack. If he says, "I will give you more advertising" then say, "How will this advertising sell my house?"

You should be looking for someone who says, "You know, most Realtors advertise in this paper, this paper and this paper. I've never sold anything in those papers. I like these areas, and I have these marketing ideas that I have used....."

6. Ask for a price recommendation. A lot of realtors know that sellers will go with the Realtor who promises the highest price. Nothing will set you up for failure faster than having a house that is not priced right. You want someone who will tell you what you DON'T want to hear, gives it to you straight, can backup why they believe your house will sell for a certain price, etc. Don't just go with the guy who says he'll get $450,000 when everyone else is at $430,000. Use your best judgement about what other houses similar to yours have sold for, and don't get tied up (as most sellers do) about how special your house is. There are a lot of special houses out there.

7. Ask to see current ads/listing sheets that they have for listings. If there are no current examples, past will do too. Sometimes peole are out selling and they are just not getting the listings- which is a good thing if you are their only listing!!!! Don't be afraid if they have NO listings at the moment in other words. What you want to see though, is that their ads are not just REALTOR SPEAK. Gleaming hardwood floors, sweeping ocean views, unique fixer-uppper, TLC, etc- every realto puts this in their ads. WIth one of these realtors you get an ad that looks like the 50 other ads around it and you don't stand out. If you can find a realtor who is more creative, you will do well.

Now, after that LONG explaination (sorry), you have a second question- what should you fix? Well, here's what I would do again:

1. Ask the Realtors when you interview.

2. Have as many brutally honest friends (like the ones who will tell you that you look fat in your shirt) come through the house and pick out what they like/don't like. More than one opinion is helpful here. Everyone is different and if you can get 3-4 people or more through you will find the things that most people don't like or do like, and you can focus on those without changing the things that may not make a difference.

3. Again, as GeekMom said, a lot of people go with neutral colors because they won't put anyone off. Consider neutral colors and keep in mind that they will be best 90% of the time. However, if you have a color that just looks good and all your friends agree, you may be best to leave it.

4. The exception to neutral colors- carpets! If your house is in an expensive price range, white is luxurious and you can leave it. If it's not high-end, don't put white down. White is hard to keep clean, and won't get you any higher price in carpet.

5. Look for open houses. Specifically look for houses LIKE yours, and more importantly in your price range. If you walk through these houses, you may see that they have some things that are necessary that yours doesn't have for the price you are aiming at. For instance, if you are in a high-end house and everyone in the area in that price has A/C and you don't- that may be an issue. Your Realtor should know the market/area well enough to point most of this out to you, but I subscribe to the theory of "Have good advisors. Know enough about what you're being advised on to know when you have bad advice or a bad advisor." When you find these items, you can either pay to make the changes, or reduce your price accordingly.

6. Understand how repairs work. A lot of times I see people spend money on a repair because, "I always wanted green carpets in here." The buyer may not want green carpets and you've just spent the money. On the other hand, if there is an issue with a roof for instance, or something major, if the buyer has an inspection and it is found you will be back at the negotiating table. If it costs $6,000 to fix the roof, the buyer will take $10,000 of the price if they have to fix it. In other words- if you KNOW something needs to be fixed then fix it before it is a problem. If you WANT something to be changed- then go neutral, follow the data you get from your friends walking through and your realtor, and only fix the glaring stuff.

7. Cleanliness- You'd be suprised how many houses I go through that the sellers THINK are clean, but are not. Again, ask your friends. Consider hiring a professional cleaning company. Get someone who REALLY cleans if you do. Get unneccessary clutter out of the house, get it clean, and you're good. Many times we think it's clean, but it's really that we are just use to the dirt that is there being there.

OK, long answer, but you asked. I could go on. I am not trying to act like I know it all....others may have differing opinions, so use your judgement. You may want to ask the realtors that you interview the same questions that you just asked on this board and see what they say.

Hope it helps, good luck, and let us know how it turns out!!

**atgcpaul** · 09-07-2006, 06:01 PM

On the selling end in San Diego, we found our agent by walking into an open
house. We also interviewed another agent provided through Costco. If we
had gone the Costco route, you get some money back after closing. We liked
the first agent better so we went with him. References are always a bonus.

Fix all your mechanicals or be prepared to fix them. Don't preinspect your
house because then you have to disclose all that info up front. Let the
burden of proof be on the buyers. When we bought our first house, it was in
good condition but the original owner had not done any updating to the
house. It was a seller's market back then but he still offered up $6000
renovation credit. We gave him his asking price and put the credit towards
closing.

When we sold our place this year and bought our house last month, it was
definitely a buyer's market. Prices were still high but if we had started out
lower on our own price we may have actually netted more in the end and sold
faster. That was a really stressful 3 months since we were doing a cross
country move, too. The house we bought was on the market for 3 months
and by the time we closed, had reduced in price by a significant amount. If
they'd started somewhere in the middle, then they would have been in a
better position.

Incentives to the buyers, IMHO, are really a bonus and I think give the
impression that you are willing to give them some extra value, but aren't
really going to go down too much in price.

It sounds like you are realistic about not getting top dollar so that is
definitely something you have going for you. Good luck!

Paul

**Russianwolf** · 09-07-2006, 09:05 PM

one more question to ask potential agents.

"how many homes have you sold in the last x months." and don't be afraid to ask for proof. If your area is anything like DC, the market has become a buyers market again, which means you need someone who CAN sell homes, not just list them. IF they can show that they have sold 8 homes in the last 2 months, bingo.

Oh and I forgot, pick an agent that knows your area, preferably one that lives in the neighborhood. The reason is they know alot more of the intangibles than an agent from accross town.

**alpha** · 09-07-2006, 09:25 PM

Pay particular attention to the bath rooms and kitchen. Also look at curb appeal--paint front door, improve shrubs, etc.

In our area, the standard commission rate is 6%. Some agents will deduct 1% if they are both the listing & the selling agent, but you have to ask them to do it when you list the property.

I also had one broker who had a listing form with some blanks already filled in and he had 7% for the commission. He just talked about other things to distract us. So make sure you READ the contract!

Bob

**JoeyGee** · 09-07-2006, 09:33 PM

Most of what I have to say has already been covered, but I like to hear the sound of my own typing, so here goes...

Agent rates are definitely negotiable (at least in Ohio). Negotiate with them, and if they are inflexible, there are more agents out there.

Check to see if there is a feedback system from buyer;s agents--our realtor had a website that was REAL helpful.

Fix only cosmetic things, and I do think neutral paint is what people want. When we sold our house last year, we were amazed with the comments from potential buyers, and paint color was a major one. People just seem to be too lazy, they want to move into a house perfect for them without lifting a finger.

Get opinions from family and friends, tell them to be brutally honest--it will only help you.

Real quick funny story...we had a couple come in FIVE times to look at the house (PITA each time to clean and vacate with 2 little kids). Each time they wanted to look at something else, bring dad along, measure something. I was so PO'ed at one point I almost just said NO or charged them rent, but the market is so tough right now. Anyway, the day of their fifth showing, there was another couple through and they put an offer in. That pressured the first couple into an offer--but they had NO money to put down for deposit and were not even nearly pre-approved. I was SOOOOO PO'ed at that, but happy to approve the other offer. The other couple did not take it well

**bmyers** · 09-08-2006, 11:54 AM

Thanks To Everyone Who Replied

Wow, what an amazing response. Once again, this is the best woodworking site when it comes to things not related to woodworking.

I appreciate all of the insightful replies and feel a little better now about my next steps.

Thanks again everyone. I even made LOML sit down and read all the great suggestions.

We bought this house from Holly Hobby. She had personally decorated the place with the most hideous color design and wallpaper that I had ever seen outside a doll house.

Here is a before of the MBR:

Here is an after:

I've since put in light colored wood flooring in the MBR.

Another BR looked like this:

The other looked like this:

I look back now, amazed that we bought the place looking like that... We removed the wallpaper and painted the entire interior before moving in, made it alot easier. The BR's now I think I'll need to paint. They are not white or off-white so I think it's riske'...

I realize moving from AZ to NY seems strange. I've been in the desert for as long as I've been anywhere else. At 75 degrees, I reach for a jacket. But, I have a cabin in Cape Breton,NS that I want to have use of as a weekender', not a once a year thing. We are both from NY so all our family is there. Grandparents don't live forever, we have 2 small kids and want them to experience 4 seasons. The list goes on..

Thanks,
Bill

**crokett** · 09-08-2006, 12:05 PM

Originally posted by Tom Miller

Best tip I've heard for showing your house -- get as much of your stuff out as possible for two good reasons: it'll make the place look tidier/roomier, and it'll allow the viewer to more readily picture their stuff in your (soon-to-be their new) house.

QFT. When we sold our last house we got a full price offer the day we listed it. We'd followed our agent's advice to box up as much as we could ahead of time and clean out closets, etc. Our agent said one of the big reasons the house sold was the buyer said it had a lot more space than she thought it would.

**bmyers** · 09-08-2006, 12:23 PM

I agree. We don't plan on taking much in the way of furniture back with us so most of it will go before we list. I might even U-haul most everything out first before we list. Just keep beds and things in the house until it's sold.

Bill

**430752** · 09-08-2006, 01:36 PM

advice

let's see:

get as much stuff out before selling.

get rid of anything particular dated or extremely "out there".

bake cookies before every open house, or maybe a pie, to get that baked smell that drives buyers nuts (Well, that's what we learned when every builder's model home had cookies baking non-stop)

5% is becoming the norm out here in NJ as we all chisel the realtors down from 6%, so don't take that as a mark of a bad realter (but maybe 3% is)

stay out of the home during an open house

anything for curb appeal woudl help.

and, once you've sold, the best advise I can give when moving back to NY is to bend over and take it. Don't ask questions like why is a one bedroom, half bath, 4 room home going for $550K? It is, get over it. And I'm not talking the city either, then it'd be $999K!

Curt J.

2 part question-Selling my home

2 part question-Selling my home

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