There are quite a few web-based programs that claim to help you sell your home without the assistance of a real estate broker. Those systems, especially in these troubled financial times, have a certain lure. Who would not like to save the 5 to 6% agent fee that the seller will have to pay? Still, the advice and counsel of a dedicated real estate agent are invaluable.

Factors to Consider

Pricing

When you use an agent, you will benefit from their experience when you consider selling your house. Your agent will help you establish a fair market value from their daily dealings in your neighborhood, giving rise to the potential of a quick sale.

Expertise

Real estate agents are professionals at marketing properties. They can choose the media and the message that brings interested prospects to your home. You can rely on them to interview and qualify buyers for you. They will also use their sales skills and negotiating techniques to help you receive the best possible return on your sale.

Networks

Every brokerage office has a steady stream of prospects that no individual can match. National referral networks and multiple listing services also help to reach buyers from out of town or out of state. Many corporate relocation clients may work with a broker before making a move.

Constructive Comments

When you work with an agent or broker, they will follow up with other agents that have shown your property and share their constructive comments on cosmetic repairs, financing arrangements, or your list price.

Paperwork

An agreement between buyer and seller is just the beginning of a final transaction. Your agent or broker can handle the details and paperwork necessary to complete it, from building and termite reports to fire insurance and closing arrangements.

Knowledge

As an expert in real estate, your agent or broker will give you advance estimates of your closing costs and net proceeds from the sale. They will also keep you informed of the details to ensure a smooth and timely closing.

Time

Showing a house takes a lot of time. Ask yourself truthfully. Do you have the time to show your house to potential buyers at their convenience, not yours? Are you so objective about the house that you can listen to complete strangers detail their misgivings about your pride and joy?

Home Staging

An agent can advise you on staging the house to make it more attractive to buyers.

Tip

We have long-standing relationships with several reliable real estate agents with whom we have worked on many successful transactions.

Do not hesitate to call Arthur J. Murphy for a referral.

Phone: (312) 427-3650

Although you want to sing your home’s praises to prospective buyers, you are legally required to be just as forthcoming about its flaws, such as:

• Malfunctions in the Major Systems of Your Home, Including:

• Foundation
• Roof
• Plumbing
• Electrical System
• Heating & Air Conditioning
• Siding
• Windows
• Doors
• Walls
• Ceiling

• Damage to the Property Due To:

• Fire
• Floods
• Windstorms

• Water Leaks

• Environmental Hazards, Such As:

• Lead-Based Paint (for Homes Built Before 1978)
• Asbestos
• Radon Gas
• Contaminated Soil or Water

Note

Consult a real estate attorney if you have any questions. They can give you all the information you need before you put your home on the market. Keep in mind that if you choose not to disclose your home’s defects, not only could a buyer later sue you for fraud, but you could also be violating state law.

When a prospective buyer makes a formal bid on your home in the form of a purchase offer, you will probably feel a mixture of emotions. You might feel excited that someone wants to buy your house and afraid that this multi-page document contains hidden legal jargon disguised to “steal” your home or cost you more money.

The offer itself can’t hurt you until you sign it. Then it becomes a legally binding document. This is why you should ask your real estate attorney to guide you through all the elements and point out any contingencies or conditions that aren’t favorable to you.

Urgent Cases

What if the offer expires before your attorney can be reached? If you are absolutely sure this is the case, then only sign with the clearly written condition that the deal is “subject to my attorney’s approval.” Still, you must be mindful that there are certain provisions that your attorney may not be able to change, and you will be stuck with those provisions, unfavorable as they might be.

Remember the old adage: “Decide in haste, repent at leisure.”

Since fair market value isn’t one magical price but a range, smart buyers will offer a price on the lower end of that spectrum. As long as you do not set the asking price too far above the top end of the fair market value range, the gap should not be too difficult to close through a round or two of counter-offers.

A serious offer will be accompanied by earnest money or good faith money. The amount varies, but 5% to 10% of the sale price is typical. The money is held in an escrow or trust account by a real estate broker or your real estate attorney.

This part of the contract spells out how much of a down payment the buyer plans to pay and the mortgage loan terms (interest rate, points, and length of loan) the buyer hopes to receive from the lender.

A savvy and serious buyer will come with a pre-qualification letter or pre-approval letter from a lender. A lender’s pre-approval letter carries more weight than a pre-qualification letter. It is proof of the buyer’s power on paper. Make sure you run all mortgage documents by your real estate attorney.

Various contingencies will usually be built into the real estate contract. for the following are some common examples.

Financing

A financing or mortgage contingency is a very important clause that makes the contract dependent on the buyer receiving a mortgage commitment by a certain date. The cancellation rights are specified, and the return of any earnest money deposit is required if the buyer does not have adequate financing.

Property inspection.

The buyer hires a professional inspector to check the property for any hidden structural or mechanical problems. The property inspection clause enables the buyer to negotiate for repairs or opt-out of the contract if the defects are too severe.

Tip

The seller can limit the time the buyer has to order and approve an inspection report. They can specify that the seller has the right to exit the deal if repairs cost over a certain amount. The seller can also specify that inspection items that may cost under a certain amount (such as $250.00) will not permit the buyer to exit the deal.

Attorney Approval

This clause enables your attorney to review the contract and negotiate any revisions even after you and the seller have signed it. However, there are usually limitations to what an attorney can do. For example, the attorney cannot revise the price and closing date.

Buyer’s Home Sale Contingency

Sometimes you will see a contingency tied to whether the buyer’s present home sells. The seller must be extremely wary of this clause because it is unknown how long it will take for the other home to sell.

Usually, this clause gives the seller the right to continue to market the house and to accept a better offer. However, obtaining buyer interest in a house already under contract is more difficult.