1. Interview several agents and pick the one that makes the most sense to you
2. Ask for ‘comps’ that reflect your exact competition; see what has already closed, not only what is being offered in the current market.
a. How comfortable are you with your price? (net dollars to you after closing costs, minue 5%? for two commissions.) Hence 100 minus (2%)closing costs, minus 5%= your net of approximately 92-95.
b. Also, would you consider offering a closing cost ‘concession’ to a qualified buyer?
Hence 100 minus 5-8%, minus 2% to the buyer = your net of 90-92% (Note: concessions to the buyer are a strategy, not a requirement. It depends on the quality of the offer, how you feel towards the buyer, and your own sense of timing.)
3. Other things to consider:
Timing: 60/120 days of selling (optimal) and 60 days to close. In the recent market many units have taken several months longer to sell.
Brokers’ open houses/broker emails.
Marketing that matches your own selling strategy
Price strategy that gets you your bottom line. Plan on reducing the price after 60-90 days, based on the feedback you are getting from buyers/agents who have seen the property.
4. Pre-qualified buyers: so-called ‘cash’ buyers (those who are pre-qualified to be able to afford the price you are prepared to accept for your home, after the transaction costs are taken out.) You might even consider a concession to a buyer who you really think you want to work with.
For example: you might be offered your full price, but you can then negotiate some kind of ‘discount’ to the right buyer who is capable of moving in, when you want to move out.
5. A good real estate attorney representing the seller is the linchpin of closing the deal successfully.
6. Your house has to appraise right by the buyer’s lender, which shows you how important it is to be working with the right comps form the start.
P J Fugiel, Consultant © 2006