Seller's Guide to a Successful Sale
Selling your home can seem like a daunting task. Below is a checklist of questions you will begin to think about:
- How much is my home worth?
- How quickly do I need to sell my home?
- What are my motives for sale?
- Can I find a buyer?
- Is now a good time to sell; are we in an hot/neutral/cold mark?
Many homeowners may consider selling their home as a "for sale by owner" (FSBO), by listing it on popular websites like Forsalebyowner.com or zillow.com. This is not a bad approach, as you will save on paying a seller agent's commission, but be prepared to wait. These websites produce very limited exposure for your property. Most buyers opt for buyer agency representation, for the simple fact that the seller usually pays the buyer agent's commission. Buyer agent's first step in the home search process is to get their buyers search criteria setup in the localized multiple listing service (MLS) database. If your home is listed on Zillow or any other for sale by owner website, your listing does not get populated in the MLS system.
There are two main types of seller agency representation: an Exclusive Agency representation, or an Exclusive Right to Sell representation, the latter being most common. In an Exclusive Right to Sell agency relationship, the seller agrees to work with only one real estate brokerage, and must pay the agreed upon commission no matter who brings a buyer to the table. In an Exclusive Agency agreement, this is also true, with one exception: if the seller finds a buyer directly, no commission is owed to the Broker. There is a third type of agency relationship that is not common, which is a non-exclusive agency relationship, and if fact, many brokerage firms do not offer these types of agreements. In this agreement, the seller is allowed to work with more than one brokerage, and owes commission the broker who brings the buyer to the table first. The reason this is not a common practice is because an agent is less likely to realize a commission, and therefore does not offer their full and undivided attention to the listing.
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