SELLER INFORMATION
THE
"PRODUCER$"
Real Estate Of Florida
Palm Beach County Real Estate
For Sellers
Sell a Home,
Not a House
One of
the great ironies of selling your
house is that you must get it in such
great
condition that you may ask
yourself why you would even
want to move out. Your
focus right
now maybe on your own dream home,
but consider your current house
as
someone else’s dream home, and start
preparing it for them. Putting a
little
work into it now makes the entire
process of selling your house much
more
profitable for you in the long run.
Who Else Do You Need On Your Team?
While a great real estate agent is key to
selling your home,you will actually be
employing a team of specialists to get
you through the process. Your real estate
agent is well-connected and in who will
handle all the services that go with
fixing-up and selling your home,
including: lenders, pest control specialists,
home warranty companies, inspection
companies, contractors, and plumbers.
Timing It Right
When you are selling your home and buying
a new one at the same time, the ability to
juggle the responsibilities of both can cause
headaches. Avoid having to handle two giant
chores at once by starting early. Make a list of
whom you need to notify about your change
of address, including utility companies and
credit card companies.Start packing the
knick-knacks and off-season items you
won’t be needing before the move. If you can
start doing repairs around the home as
early as possible -- even a full year prior to
the sale of your home -- you will be able
to avoid a huge bill right before the sale.
Lighten The Load
As you begin packing to move to your
new home, the realization will probably hit
you like a ton of bricks: You have a ton of
stuff. Rather than packing it all and lugging
it to your new house just to stuff it into
the garage and closets, lighten your load
and make your move easier. A garage sale
is a great way to unload lots of your
little-used items and make a little extra
cash to spend on decorating your new
home. You can also sell some of your
rarer possessions on auction sites such
as Ebay. You may get a pretty penny for
old toys and books which might have
sold for a lesser price at your garage
sale. Also consider donating furniture
and clothing to charity. You’ll be doing
something good for yourself and
for others.
Seller Tips
Understanding Agency
It’s important to understand what legal
responsibilities your real estate
salesperson has to you and to other
parties in the transactions. Ask your
salesperson \ to explain what type
of agency relationship you have with
him or her and with the
brokerage company.
1. Seller's Representative: (also known as
a listing agent or seller's agent). A seller's
agent is hired by and represents the seller.
All fiduciary duties are owed to the seller.
The agency relationship usually is created
by a listing contract.
2. Subagent: A subagent owes the same
fiduciary duties to the agent's principal
as the agent does. Sub-agency usually
arises when a cooperating sales associate
from another brokerage, who is not
representing the buyer as a buyer’s
representative or operating in a nonagency
relationship, shows property to a buyer. In
such a case, the sub-agent works with the
buyer as a customer but owes fiduciary
duties to the listing broker and the seller.
Although a sub-agent cannot assist the
buyer in any way that would be detrimental
to the seller, a buyer-customer can expect
to be treated honestly by the sub-agent.
It is important that sub-agents fully explain
their duties to buyers.
3. Buyer's Representative: (also known
as a buyer’s agent). A real estate
licensee who is hired by prospective
buyers to represent them in a real
estate transaction. The buyer's rep
works in the buyer's best interest
throughout the transaction and owes
fiduciary duties to the buyer. The
buyer can pay the licensee directly
through a negotiated fee, or the buyer's
rep may be paid by the seller or by a
commission split with the listing broker.
4. Disclosed Dual Agent: Dual agency
is a relationship in which the brokerage
firm represents both the buyer and the
seller in the same real estate transaction.
Dual agency relationships do not carry
with them all of the traditional fiduciary
duties to the clients. Instead, dual agents
owe limited fiduciary duties. Because of
the potential for conflicts of interest in a
dual-agency relationship, it's vital that
all parties give their informed consent.
In many states, this consent must be
in writing. Disclosed dual agency, in
which both the buyer and the seller are
told that the agent is representing
both of them is legal in most states.
5. Designated Agent: (also called, among
other things, appointed agency). This is
a brokerage practice that allows the
managing broker to designate which
licensees in the brokerage will act as
an agent of the seller and which will
act as an agent of the buyer. Designated
agency avoids the problem of creating
a dual-agency relationship for licensees
at the brokerage. The designated agents
give their clients full representation, with
all of the attendant fiduciary duties. The
broker still has the responsibility of
supervising both groups of licensees.
6. Non-Agency Relationship: (called,
among other things, a transaction
broker or facilitator). Some states
permit a real estate licensee to have a
type of non-agency relationship with
a consumer. These relationships vary
considerably from state to state, both
as to the duties owed to the consumer
and the name used to describe them.
Very generally, the duties owed to
the consumer in a non-agency
relationship are less than the complete,
traditional fiduciary duties of an agency
relationship.
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Five Things to Do Before You
Sell
1. Get Estimates from a reliable
repair person on items that need to be
replaced soon, a roof or worn carpeting,
for example. In this way, buyers
will have a better sense of how much
these needed repairs will affect their
costs.
2. Have A Termite Inspection to prove
to buyers that property is not infested.
3. Get A Pre-Sale Home Inspection so
you’ll be able to make repairs before
buyers become concerned and cancel
contract.
4. Gather Together Warranties And
Guarantees on the Air Conditioner,
Major appliances, and other items
that will remain with the house.
5. Fill Out A Disclosure Form Provided
By Your Sales Associate. Take the
time to be sure that you don’t forget
problems,however minor, that might
create liability for you after the sale.
Tips for Holding a Yard Sale
Use a yard sale to reduce
the clutter
in your home and get rid of items you
don’t want to move.
1. Check with your city government
to see if you need a permit or
license.
2. See if neighbors want to participate
and have a “block” sale to
attract
more visitors.
3. Advertise. Put an ad in free
classified papers, put up signs and
balloons at major intersections and
in stores near your home.
4. Price items ahead and attach prices
with removable stickers. Remember,
yard sales are supposed to be bargains,
so don’t try to sell anything of
significant
value this way.
5. Check items before the sale to be
sure you haven’t including something
you want by mistake.
6. Keep pets away from the sale.
7. Display everything neatly and
individually so customers don’t have
to dig through boxes.
8. Have an electrical outlet so buyers
can test appliances.
9. Have plenty of bags and newspaper
for wrapping fragile items.
10. Get
enough change , and keep a
close eye on your cash.
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Ten Ways to Make
Your House
More Salable
1. Get rid of clutter. Throw out or file
stacks of newspapers and magazines.
Pack away most of your small
decorative items. Store out-of-season
clothing to make closets seem roomier.
Clean out the garage.
2. Wash your windows and screens to
let more light into the interior.
3. Keep everything extra clean. Wash
fingerprints from light switch
plates.
Mop and wax floors. Clean the stove
and refrigerator. A clean house makes
a better first impression and convinces
buyers that the home has been
well
cared for.
4. Get rid of smells. Clean carpeting
and drapes to eliminate cooking
odors,
smoke, and pet smells. Open the
windows.
5. Put higher wattage bulbs in light
sockets to make rooms seem
brighter,
especially basements and other dark
rooms. Replace any burnt-out
bulbs.
6. Make minor repairs that can create
a bad impression. Small problems
such as sticky doors, torn screens,
cracked caulking, or a dripping
faucet
may seem trivial, but they’ll give buyers
the impression that the house isn’t
well maintained.
7. Tidy your yard. Cut the grass,
plant some flowers, trim the
bushes,
and edge the walks. Put
a pot or two of bright flowers near
the entryway.
8. Patch holes in your driveway or
pressure clean and reapply sealant,
if applicable.
9. Clean your gutters
10. Polish
your front doorknob
and door numbers.
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Five Ways to Speed
Up Your Sale
1. Price it right. Set a price at the
lower end of your property’s realistic price range. 2. Get your house market ready
for at least two weeks before you
begin showing it.
3. Be flexible about showings. It’s
often disruptive to have a house
ready to show on the spur of the
moment, but the more often someone
can see your home, the sooner you’ll
find a seller.
4. Be ready for the offers. Decide in
advance what price and terms you’ll
find acceptable.
5. Don’t refuse to drop the price.
If your home has been on the market
for more than 3 days without an offer,
be prepared to lower your asking price.
Seven Steps To Preparing
For An Open House
1. Hire a cleaning service. A spotlessly
clean home is essential; dirt will turn
off a prospect faster than anything.
2. Mow your lawn, and be sure toys
and yard equipment are put away.
3. Serve cookies, coffee, and soft
drinks. It creates a welcoming touch.
But be sure the kitchen has been
cleaned up; use disposable cups so
the sink doesn’t fill up.
4. Lock up your valuables, jewelry,
and money. Although the real
estate
salesperson will be on site during
the open house, it’s impossible to
watch everyone all the time.
5. Turn on all the lights. Even in the
daytime, incandescent lights add
sparkle.
6. Send your pets to a neighbor or
take them outside. If that’s not
possible, crate them or confine them
to one room (a basement or bath),
and let
the salesperson know
where to find them.
7. Leave. It’s awkward for prospective
buyers to look in your closets
and
express their opinions of your home
with you there.
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Ten Ways To Make
Your Home
Irresistible At
An Open House
1. Put fresh or silk flowers in principal
rooms for a touch of color.
2. Add a new shower curtain, fresh
towels, and new guest soaps to every
bath.
3. Set out potpourri or fresh baked
goods for a homey smell.
4. Set the table with pretty dishes
and candles.
5. Buy a fresh doormat with a
clever saying.
6. Take one or two major pieces
of furniture out of every room to
create a sense of spaciousness.
7. Put away kitchen appliances and
personal bathroom items to give
the illusion of more counter space.
8. Lay a fire in the fireplace. Or put
a basket of flowers there if
it’s not
in use.
9. Depersonalize the rooms by
putting away family photos,
mementos,
and distinctive artwork.
10. Turn on
the sprinklers for 30
minutes to make the lawn sparkle.
Seven Terms to Watch For In A Purchase Contract
1. The closing date. See if the date
the buyer wants to take title is
reasonable for you.
2. Date of possession. See if the
date the buyer wants to move in
is
reasonable for you.
3. The earnest money. Look for the
largest earnest money deposit possible;
since it is forfeited if the buyer backs
out, a large deposit is
usually a good
indication of a sincere buyer.
4. Fixtures and personal property.
Check the list of items that the buyer
expects to remain with the property
and be sure it’s acceptable.
5. Repairs. Determine what the
requested repairs will cost and
whether you’re willing to do the
work or would rather lower the price
by that amount.
6. Contingencies. See what other
factors the buyer wants met before
the contract is final—inspections,
selling a home, obtaining a mortgage,
review
of the contract by an attorney.
Set time limits on contingencies so
that they won’t drag on and keep
your sale from becoming final.
7. The contract expiration date.
See how long you have to make a
decision on the offer
Questions to Ask When Choosing A
Real Estate Practitioner
1. How long have you been in residential
real estate sales? Is it your full-time
job? (While experience is no guarantee
of skill, real estate,
like many other
professions, is mostly learned on the job.)
2. Are you a REALTOR® ? (Members of
the National Association of
REALTORS®
, a trade organization of more than
1000,000 members nationwide,
subscribe
to a stringent code of ethics that helps
guarantee the highest level
of service
and integrity.)
3. What designations do you hold?
(Designations such as GRI and CRS,
which require that agents take
additional, specialized real estate
training,
are held by only about one-
quarter of real estate practitioners.)
4. How many homes did you and your
company sell last year?
5. How many days did it take you to sell
the average home? How did
that compare
to the overall market?
6. How close to the initial asking prices
of the homes you sold were
the final
sale prices?
7. What types of specific marketing
systems and approaches will you
use to sell my home? (Look for
someone who has aggressive, innovative
approaches, not just someone who’s
going to put a sign in the yard and
hope for
the best.)
8. Will you represent me exclusively,
or will you represent both the buyer
and the seller in the transaction?
(While it’s usually legal to represent
both parties in a transaction, it’s
important to understand where the
agent’s obligations lie. A good
agent will explain the agency
relationship to you and
describe the
rights of each party. It’s also possible
to insist that the agent
represent you
exclusively.)
9. Can you recommend service
providers who can assist me in
obtaining
a mortgage, making repairs
on my home, and other things I need
done? (Keep in
mind here that agents
should generally recommend more
than one provider and
should tell you
if they receive any compensation from
any provider.)
10. What type of support and
supervision does your brokerage office
provide to you? (Having resources such
as in-house support staff, access to a
real estate attorney, or assistance with
technology can help an agent sell your
home.)
11. What’s your business philosophy?
(While there’s no right answer to
this
question, the response will help you
assess what’s important to the
agent
—fast sales, service, etc.—and determine
how closely the agent’s goals and
business emphasis mesh with your own.)
12. How will you keep me informed
about the progress of my transaction?
How frequently? Using what media?
(Again, this is not a question with a
correct answer, but that one reflects
your desires. Do you want updates
twice a week or don’t want to be
bothered unless there’s a hot
prospect? Do you prefer phone, e-mail,
or a personal visit?)
13. Could you please give me the
names and phone numbers of
your three
most recent clients?
What You'll Net at Closing
To find out how much money
you’ll net from your house, add
up your closing costs and
subtract them from
the sale price
of the house.
Closing Costs for Sellers.......
Mortgage payoff and outstanding
interest .........
Prorations for real estate taxes..........
Prorations for utility bills, condo dues, and other
items paid in arrears....................
Closing fees charged by closing specialist.......
Title policy fees .........
Home inspections .........
Attorney’s fees........
Survey charge.......
Transfer tax or other government
registration fees........
Brokerage commission.......
Total .......
Moving Tips for Sellers
1. Give your forwarding address to
the post office,usually 2-4
weeks
ahead of the move.
2. Notify our charge cards, magazine
subscriptions, and bank of
the
change of address.
3. Develop a list of friends,
relatives, and business
colleagues who
need to be
notified of the move.
4. Arrange to have utilities
disconnected at your old
home and
connected at your
new one.
5. Cancel the newspaper.
6. Check insurance coverage
for moved items. Usually movers
only
cover what they pack.
7. Clean out appliances and
prepare them for moving,
if applicable.
8. Note the weight of the goods
you’ll have moved,
since
long-distance moves are
usually billed according to weight.
Watch for movers
that use
excessive padding to add weight.
9. Check with your condo or
co-op about restrictions
on using the
elevator or
particular exits.
10. Have a
“first open” box
with the things you’ll
need most—toilet paper, soap,
trash
bags, scissors, hammer,
screwdriver, pencils and paper,
cups and plates, water,
snacks,
and toothpaste.
Eight Items to Have On
Hand for
the New Owners
1. Owner’s manuals for items left in the house
2. Warranties for any items left in the house
3. A list of local service providers—the best
dry cleaner, yard
service, etc.
4. Garage door opener
5. Extra sets of house keys
6. Code to burglar alarm and phone
number of monitoring service if
not
discontinued.
7. Condominium Or Homeowner Documents
8. Keys to community pool & common areas
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Twenty Low-Cost Ways
To
Spruce
Up Your Home
Make your home more
appealing
for yourself and for potential buyers
with these quick and easy tips.
1. Trim bushes so they don’t block windows
and cut down on light
2. Buy a new doormat.
3. Put a pot of bright flowers (or a small
evergreen in winter) on
your porch.
4. Put new doorknobs on your front door
5. Put a fresh coating on your driveway
or Pressure Clean.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Be sure kids put away their toys
9. Buy a new mailbox
10. Upgrade your
outside lighting.
11. Use warm,
incandescent light bulbs
for a homey feel.
12. Polish or
replace your house numbers.
13. Clean
your gutters.
14. Put out
potpourri or burn scented candles
15. Buy new
pillows for the sofa
16. Buy a
flowering plant and put in a window
you pass by frequently
17. Make a
centerpiece for your table with fruit
or artificial flowers.
18. Replace
heavy curtains with sheer ones
that let in more light.
19. Buy new
towels
20. Put a
seasonal wreath on your door
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What is Appraised Value?
1. It’s an objective opinion of
value,
but it’s not an exact science so
appraisals may differ.
2. For buying and selling
purposes,
appraisals are usually based on market
value—what the property could
probably
be sold for. Other types of value include
insurance value, replacement
value, and
assessed value for property tax purposes.
3. Appraised value is not a
constant
number. Changes in market conditions
can dramatically alter appraised
value.
4. Appraised value doesn’t
consider
special considerations, like the need
to sell rapidly.
5. Lenders usually use either the
appraised value or the sale price,
whichever is less, to determine
the amount
of the mortgage they
will offer.
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Understanding
Capital Gains in
Real Estate
When you sell a stock, you
owe taxes on
\ your gain—the difference between what
you paid for the stock and
what you sold
it for. The same is true with selling a
home (or a second home),
but there are
some special considerations.
How to
Calculate Gain
In real estate, capital
gains are based
not on what you paid for the home,
but on its adjusted cost
basis.
To calculate this:
1.Take the
purchase price of the home:
This is the sale price, not the amount of
money you
actually contributed at closing.
2. Add
Adjustments:
---Cost of the purchase—including
transfer fees, attorney fees, inspections,
but not points you paid on your mortgage
3. Cost of sale:
---including inspections, attorney’s
fee, real estate commission,
and money
you spent to fix up your home just prior
to sale.
4. Cost of improvements—including
room additions, deck, etc. Note here
that
improvements do not include
repairing or replacing something already
there,
such as putting on a new roof or
buying a new furnace.
5.The total
of this is the adjusted cost basis
of your home.
6.Subtract
this adjusted cost basis from
the amount you sell your home for. This is
your capital gain.
A Special
Real Estate Exemption for
Capital Gains
Since 1997, up to $250,000
in capital
gains ($500,000 for a married couple)
on the sale of a home is
exempt from
taxation if you meet the following criteria:
You have lived in the home
as your
principal residence for two out of the
last five years.
You have not sold or
exchanged
another home during the two years
preceding the sale. Also note that as
of 2003,
you may also qualify for this
exemption if you meet what the IRS
calls "unforeseen circumstances”
such as job loss, divorce, or family
medical emergency.
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Does Moving Up Make Sense?
The answers to these
questions will
help you decide:
1. How much equity do you have in
your home? Look at your annual
mortgage
statement or call your lender to find out.
Usually, you don’t build up
much equity in
the first few years of paying a mortgage,
but if you’ve owned
your home for a
number of years, you may have significant
unrealized gains.
2. Has your income increased enough to
cover the extra mortgage costs
and the
costs of moving.
3. Is the neighborhood still a good one
for your needs? For example,
if you’ve
had children, the quality of the schools
may be more of a concern now
than
when you first purchased.
4. Can you add on or remodel? If you
have a large yard, there might
be room
to expand your home. If not, your options
may be limited? Also, do you
want to
undertake the headaches of remodeling
yourself?
5. How is the home market? If it’s good,
you may get top dollar for
your home.
6. How are interest rates? A low rate not
only helps you buy more
home, but also
makes it easier to find a buyer.
Remodeling That Pays
Upgrading your home is
always appealing,
but which enhancements really get you a
good return for your
money when it’s time
to sell?
Project Amount You Cost Recoup at Sale
Bathroom 91 percent $22,639
Remodeling
Basement 79 percent $33,911
Remodeling
Master Suite 77 percent $131,471
Addition
Bathroom 81 percent $37,639
Addition
Family Room 79 percent $41,514
Addition
Roof 67 percent $23,644
Replacement
Siding 79 percent $15,622
Replacement
Window 77 percent $24,502
Replacement
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Twelve Tips for Hiring
A Remodeling Con
1. Get at least three estimates
2. Get references and call to check on the work. If
possible, go by and visit earlier jobs.
3. Check with the local Chamber of Commerce
and call to check on the work. If possible, go
by and visit earlier jobs.
4. Be sure that the contract states exactly
what is to be done and how change orders
will be handled.
5. Make as small a down payment as possible
so you won’t lose a lot if the contractor fails
to complete the job.
6. Be sure that the contractor has the
necessary permits, licenses, and insurance.
7. Be sure that the contract states when
the work will be completed and what
recourse you have if it isn’t. Also
remember that in many instances
you can cancel a contract within
three business days of signing it.
8. Ask if the contractor’s workers will do
the entire job or whether subcontractors
will do parts.
9. Get the contractor to indemnify you if
work does not meet any local building
codes or regulations.
10. Be sure that the contract specifies the
contractor will clean up after the job and
be responsible for any damage.
11. Guarantee that materials used
meet your specifications.
12. Don’t make the final payment until
you’re satisfied with the work.
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