While tempting at first glance, do not attempt to go-it alone!
Many home owners start their selling process looking on sites such as Zillow or Trulia to see at what price their property is valued.
I understand that logic because it’s easy and free, but keep in mind:
- The sites aren’t 100% accurate. Pocket Listings and For Sale By Owners that never appeared in the MLS will be missing from their results and “values.”
- Many times, information on these sites is out of date or not accurate since every Realtor has to manually change their listing from Active to Sold and may forget to do so. This means a property might show that it’s active on Zillow even though it sold and closed 9 months prior.
- When professional appraisers conduct their appraisal, they only take into account homes that have sold in that neighborhood within the last 90 days. Online sites make it difficult if not impossible to only look for properties which have sold within this time period.
- Many online sites don’t list pertinent information such as square footage or additional features. It’s hard to know if you’re comparing similarly sized homes, so using these sites to determine value could be wasted time.
- Often times, online sites grossly overestimate a home’s value in relation to the local market’s closing data and tax appraisal.
Here’s an article about third party sites you might enjoy.
It is my professional opinion that you will save yourself time by talking to a Realtor about your home. Interview professionals to represent you and ask them to provide you with a CMA (comparable market analysis).
Use this list of questions to help you decide who’s best for you.
Step 1: Find a Realtor
How do you pick a Realtor when there are thousands to choose from? Well, I am expecting you to call me first! You are, afterall, reading through my website getting great information to use in your next sale. We should spend a few minutes talking on the phone and I think we should meet in person. We both need to feel comfortable with one another and we need to decide if we’re a great fit!
Realtors are not one size fits all. You will be spending quite a bit of time with this person, and you need to find someone who is not only excellent at his/ her job but that is also someone you like and trust.
Start by noticing how long it takes for the Realtor responds to your initial phone call or email. If this Realtor doesn’t get back to you in a maximum of 24 hours, it’s a really bad sign. This business moves fast and deals could be lost if your Realtor doesn’t respond quickly!
Step 2: Initial Phone Screening Interview
Interview the Realtor by asking very specific questions. Here’s a blog post I’ve written to help in your search: it’s a good example of things that should be discussed in your meeting. Read here to find out how a Realtor gets paid and here to find out what A Realtor’s job actually is.
During the initial phone screening, find out if the Realtor knows your neighborhood and if they’ve ever helped a client buy or sell property in your neighborhood. Ask about their experience. If your gut reaction says this person might be a good fit, ask them to do a CMA on your home and set up a time to meet with them in person. Be prepared for the Realtor to ask questions about your home, how much you owe on your mortgage and if any repairs are needed as they need this information to do an accurate CMA.
Step 3: Meet In Person and Review the CMA
Go over the CMA together. Notice what information the Realtor brings you to review. Is he or she prepared? Has this person done their homework before meeting with you? Ask not only what the market says your home is worth, but what the average days on market (i.e. the number of days from when your home goes on the market until you have an accepted contract) is in your area. If the Realtor doesn’t know this, move on. Ask them what they charge, how much the closing costs will be, and what approximately you’ll net if you sell your home for X price. Most importantly, be honest with each Realtor. If you need to sell your home for a certain amount of money or in a certain time frame, tell them. It’s only when your Realtor has a complete picture can he/she came up with the best strategy to fit your situation.
Step 4: Sign the paperwork
Once you’ve selected a Realtor, expect to sign a representation agreement. A professional Realtor will always require this agreement! Then you’ll sign a marketing agreement and sign a listing agreement; this starts the ball rolling to get your home on the market.
Questions? call me @ (615) 977-8444 or email whereyoulivetn@gmail.com