I’m bumping this thread rather than starting a new one to ask:
1- Are there any red-flags or “good signs” that I should look for in choosing a realtor? I know to get MLS, but is there any significant difference in smaller v. larger realties? (Where I live there are 2 giant [i.e. multibillion dollar] realtors/real-estate developer companies and lots and lots of smaller independents and franchises.)
2- Should I offer the realtor an under-the-table bonus or so for a quick sale at a good price? The reason/logic I ask: taking $5000 less than asking price doesn’t affect a 5% commission that much ($250 less in commission, but then after another realtor’s commission and the realty company take their cuts that might be only $50 less to the realtor and thus not worth their while to sell it for full price, BUT offering them $1000 if they sell it at full price WOULD be an incentive and save me $4000.
3- Is 2 legal/ethical in real estate sales?
4- One thing I want from this sale is to walk away from the property, invest the money, never have to worry about it again. To my knowledge the house is in good condition and anybody interested is free to inspect the property (I’ll probably have it inspected myself), and I am not trying to hide anything from anyone. However, IF a year or six months after I sell it it’s found the house had termites or sits on a fault line or that the wiring was set to blow up in September 2008 or whatever, I want a cover-my-ass “you had every chance to inspect it/I’m nto responsible” policy. Are these standard or does it need to be added to a contract?
5- Thanks to other SDMB threads I’ve decided to go with carpet rather than laminate flooring, and I’ll ask a realtor about this as well, but generally speaking for carpet that’s already neutral that’s had about 7 years of wear & tear (this is in the upstairs bedrooms, it’s Berber that was new when my mother bought the house and in that time life and pets have caused some damage but nothing major, just normal wear & tear and a couple of easily dealth with silver-dollar sized stains) is it more costworthy in your experience to replace or just deal with that carpet? (The downstairs carpet is going, period.)
6- I currently have very little furniture in the living room as I’ve given the living room suite just this week to my niece, BUT I have plenty of furniture to replace it with in a storage house and I’ve got a big ass elliptical in that room. Would you, as a house buyer, be bothered by seeing a largely empty living room (there’s tons of bric-a-brac that I’m going to remove) or would you prefer to see actual furniture (i.e. should I haul up a sofa and chair from my storage house)?
You appear to be pretty knowledgable about the sales situation. The first advice is to go with an agent more focused on selling a single house for a good price than an agent who sells all kinds of houses and makes his profit on volume. You’ve already internalized this.
My one peice of advice is about investing the money. It’s an excellent idea - get a fee-based financial advisor to assist you. Start a thread in GQ on finding a good one. You may want to talk to this person in advance of the home sale; they might have some ideas on how you can maximize the sale money and minimize the tax hit.
I’m not a financial wizard (or even a financial fledgling,) but I’m smart enough to know that I need to talk to a professional about investing before I put my money into anything.
IAARealtor. But I don’t know what you mean about “get MLS”. Any serious firm will belong to the local Multiple Listing Service for mutual benefit. There may be exceptions in some areas, like on islands where one firm has all the business. It is usually in your interest to use MLS, as the more marketing you can do, the more buyers you can get.
Theoretically, large firms can offer more hands to assist, but small firms may try harder. I suggest you pay attention to the agent as well as the firm. Get reccomendations from clients who have used those agents and firms. If you can’t work with one or the other, move on. If you have a particular kind of property, you might look for a specialist in that (I specialize in waterfront properties).
IANAL, but I would treat ANYthing under the table as improper. Laws vary by state, so there’s not much more I can say, except what makes you think that a standard commission won’t be sufficient to compensate an ethical agent? And what makes you think that an agent can arrange a sale at full price if the buyer doesn’t want to pay that? Agents aren’t magicians, y’know.
Instead, find an agent you can work with; help him and let him help you. Follow his suggestions (he’s a professional!) and if you have any ideas on how to market your property, share those with him. He may agree or offer alternatives, but he’s working for you.
That’s what title insurance and disclosure forms are for. Again, your state may vary, but in my state a disclosure form MUST be completed by the seller, supplied to the buyer, and the buyer signs to say that he is aware of any and all defects as written. So it pays to disclose anything you are aware of that materially affects the value of the property. Failure to disclose what you know could result in a suit later; but if you had absolutely no knowledge of a defect and no reasonable possibility of discovering it, you’re probably off the hook. You’re also off the hook if you do disclose, but the buyers didn’t read it. They signed it; they can’t plead ignorance.
I often advise my sellers to have a home inspection done at their expense at the time of the listing (about $350). For upscale properties and ones already in good condition, it provides an extra measure of quality assurance for a buyer. If the seller can provide the buyer with an inspection that either shows nothing wrong, not even minor, or that everything found has been taken care of, it becomes easier for the seller to stand firm on the asking price.
It depends. Ask yourself how good or bad it looks, and how much improvement it will make in the appearance to replace the carpet. However, some buyers are wary that new carpet, especially cheap stuff, might cover up a multitude of sins. I myself, years ago, made the mistake of buying a home with new construction and where the owner had thrown down a carpet with no subfloor and no padding. I didn’t spot it until too late, and boy, was I mad when the particle board under the carpet started to crumble.
In general, a nicely furnished room sells better than an empty one, and a trashily-furnished, full-o-shit one sells poorer. If empty, be sure it is clean. Stains or color changes where objects once sat or pictures once hung doesn’t look good; a thorough cleaning and maybe some paint may minimize this.
The fact that the bonus piece of advice came in a PM from a realtor on SDMB. (No names- wasn’t Musicat if anybody’s interested.)
That’s the big concern. I honestly don’t know of any defects, but I’m neither a contractor nor a construction expert. I had problems once when I sold a car- for $300 (i.e. "just how good a car do you think you’re getting for $300?) and the person took me to small claims court 6 months later over an electric problem that i had no idea about and that supposedly it would cost $1000 to fix. (The person didn’t show up for court so I won by default and never heard from them again.)
I don’t want that to happen with the property.
My sister was involved in a lawsuit over an airplane she sold. She believes, and I think with reason, that the man was a con-artist who was really trying to get a big fat settlement from the company that inspected it for him (a large company with lots of insurance), but as fate would have it her husband had a major stroke while the lawsuit was going on and they didn’t need the stress so they gave an out of court settlement that she’s resented ever since. (The company let him take them to court and they won, but it cost almost as much in legal fees as they’d have paid the guy as the lawsuit involved three states [Alabama, Florida [where the plane was inspected] and New York [where the buyer lived]). She said that now whenever she sells anything worth more than $100 she has the buyer sign a statement including the lines “Seller allowed full inspection by any qualified person of my choosing” and “Item is purchased as is, where is, with all defects, seller released from any and all future liability” and that this is legally binding so long as duly witnessed and notarized, BUT she’s never sold a house (though she owns quite a few). I am wondering if there is such an item. (Again, I’m not trying to hide anything and they are free to inspect it from foundation to rooftop and research the abstract back to the last Ice Age, but I don’t want to be sued for something I didn’t know but can’t prove I didn’t know.)
I’m doing this. I also have a transferrable homeowner’s warranty that’s included that repairs appliances and most general plumbing. (Doesn’t include exterminator or bug damage so I’ve considered a termite inspection, but there’s a company I won’t mention (though you’ve probably heard the name) that has a reputation of being able to find termites in a gold brick (BUT can get rid of them for $2000), so I don’t want to find some charlatan who’ll charge $2000 to fight damage that wasn’t there to begin with.
Not “bothered” but “unable to visualize how much space is really there.”
I just finished looking and well staged places were much more attractive than empty ones, even when I knew that it had been professionally staged and I was being manipulated. Truth of the matter is that it’s much easier to figure out “will my bed fit there? and what about my dresser?” if there’s already a bed and dresser in the room. It’s easier to imagine how a TV will look in that corner and a sofa will look up against the wall if there’s a sofa and TV already there, no matter where they are in the room. And someone who can envision how they’re going to live in the house is more likely to buy than someone who can’t. Also, empty rooms look tiny. Clutter is bad - but actual furniture is good. Get the stuff from the storage house. If it’s nice.
My main concern I’ll have to ask the live realtor about is disposition of the doglets. They weigh about 15-20 pounds each, both harmless, but both are accustomed to the run of the house. It’s no problem for when I’m present (just put them outside) but I hate hate HATE to crate them (and they hate hate HATE to be crated) and I’m trying to think of an alternative for when realtors want to show the house while I’m away. Any suggestions? (I live about 5-10 minutes from work so there shouldn’t be that many times I won’t be able to be there, but…).
I’ve thought about it, but no. The wrong renters can totally mess up any equity you have in it, plus I think a good mutual fund will rise more over the next few years than Montgomery property.
I’m going through the buying/selling nightmare right now and can offer some advice.
Regarding the buyer coming back in 6 months and suing you, from what I’ve seen there is language in the standard Purchase and Sale agreement stating that by signing the agreement, the buyer is acknowledging receipt of all disclosure statements and that they had the opportunity to get inspections done to assess the condition of the property. So I would think that you’re covered on that score, unless you lie in a disclosure or deliberately hide a grievous flaw. (Note that I am not a lawyer, a real estate agent, or a real estate lawyer, or the real estate agent for a lawyer.)
Regarding your pups, I would recommend removing them from the house during showings. Your agent can put a note on the listing that 24-hour notice is required for all showings, and that would give you fair warning to temporarily transport the dogs out of the house during the showing. I’ve looked at a lotta properties for sale, and one of the most memorable ones (in a bad way) was the one in which a very lonely basset hound had left a large, stinky “gift” in the center of the living room floor. He also followed us around the house, licking my toes through my sandals the whole time, which I found slightly charming but nevertheless gross. Also, the overt presence of pets will cause people to imagine the damage that they can do, whether they’ve done any or not.
Regarding furniture, I agree with amarinth and others who recommend leaving a few pieces around so that people can imagine their own stuff in the space better. Plus, nothing says “motivated seller” more than a starkly empty place. If you’re trying to get a good price, put some stuff in there so it looks like someone is living there, and not desperate to sell.
HTH - I just signed the P&S to sell my old place yesterday, and I need about sixteen margaritas to take the edge off the crazy stress this whole process has wreaked on me.
Sampiro, talk to your agent about the contract wording and how disclosure documents work in your state. Besides the wording, you can be protected against surprises by (1) title insurance (paid for by the buyer, usually), (2) a good formal inspection by a licensed party, and (3) home insurance, which may run about $200 for a year’s worth. Who pays for each of these is negotiable. More protection than that I doubt you need, but if you are still paranoid, see a lawyer that specializes in real estate.
I concur with most of what Anaptyxis says. And putting the dogs elsewhere during showings may be a hassle, but the only good way. If you can arrange to have them kept off the premises for the time the property is on the market, that’s even better. Some people have sensitive noses and most people don’t like to step in something brown and squishy in the yard without warning. Just don’t assume that buyers are dog lovers as much as you are.
When we fixed up our rental to sell we replaced the stove and the dishwasher, painted and put in new carpeting. That way, the agent was able to advertise “new dishwasher, new stove, new carpet, freshly painted.”
I just wanted to toss in an aside on this topic: around here (DC metro) it’s actually not unheard-of to offer the seller’s agent a bonus if the sale is made within certain time frames and a certain large percentage of asking price. Particularly in a challenging market. As far as I know, this is usually written into the contract, and isn’t “under the table” at all. Though Sampiro did use that term, it may not quite have been what he meant?
Sampiro, I don’t know that I’d recommend offering such a thing, unless you have a STRONG feeling that the market in that area is slow enough that incentives might be called for.
Hire an agent. You can often get an agent who will work for only 3%. But if you do not hire an agent, your life will become a living hell- and I am not talking about the tonnes of shit work and legal stuff you’ll have to do- but about the constant harrassment from realtors wanting you to change your mind.
Do you know how to best market your property? Do you have access to MLS for listing insertion? Do you know what forms are necessary, which ones are optional, how to interpret all provisions on all forms? Can you assist a buyer in getting a loan? Do you have the expertise to set the best price and not give away the farm or overprice it so buyers turn away? Do you know what the market is looking for and what it is not? Do you have a network of buyers who might be already looking for property like yours? Do you have access to a free hotline for minor legal problems? Can you make up a brochure to best present your property? Do you know who to call for inspections and which ones are mandatory? Do you know which ones you should do first? Do you deal with local governments, zoning situations, sanitary requirements and paperwork filings on a regular basis? Is bringing buyers and sellers together what you do every day? Do you have the time to hold open houses and show your property to prospects?
As an agent, I can say “Yes” to all of these questions. Can you? If so, don’t hire one.
As for the bonus question, it’s not unheard of for a seller to offer an agent extra money to bring a buyer to a successful close before a deadline. None of this is “under the table.” If I have a buyer, I won’t be moving much faster if the commission potential is $5K instead of $2K, but maybe I’m not typical. I just hate to see you spend your money on something that an ethical agent should provide already. The agent wants the deal closed as much as you do.
(No names- wasn’t Musicat if anybody’s interested.)