The Selling Process Explained
We often hear the terms "Buyer's Market" and "Seller's Market" and perhaps associate these phrases with the perceived level of monetary value of our real estate. In real estate markets the truth is that these phrases have more to do with the ease of selling than with actual value. That is to say a "Seller's Market" is characterized by a low Average Days on the Market, rather than a high Average Sale Price. The point is that, selling real estate is of critical importance in the health of real estate markets. While the buying process may be slightly more complicated, the selling process is perhaps more important and certainly less under our control as sellers. While no two situations are identical The Fenton Team sets out the process below, from start to finish, in order to help you better work towards your goal of successfully selling real estate
The selling process begins with the decision to sell and the situations that trigger this decision are varied. Once the decision has been made the next step is to determine an estimated market value in order to set a listing price. There are only two ways to accurately predict market value – to purchase a professional Appraisal or to obtain a Comparative Market Analysis (CMA) from a real estate agent. Real estate agents generally perform CMAs at no cost in hopes of working with the client in the sale of their real estate. It may be prudent to obtain CMAs (or Appraisals) from at least two sources, depending on the level of ongoing trust you share with your agent.
The next step in the selling process is to put your real estate up for sale. This can be done on the small private market or on the MLS market through your real estate agent. The vast majority of successful sales are facilitated through the MLS market, and so that is where we will focus. Your agent will present you with a Multiple Listing Contract which is a contract between you as the Seller and the brokerage under which your real estate agent operates. It will set out a number of key terms including (but not limited to): the agency relationship, the listing price and the commission charged.
Next comes marketing, and in today’s market this means online. The larger the number of high profile websites your real estate is listed on, the better. However online marketing is not sufficient - there are a large number of print material options available as well. Finally, one of the most overlooked and most valued sources of marketing comes from your Realtor's network of business and client contacts. The key to successful marketing is recognizing the unique features of the property and developing a holistic marketing plan tailored to those features.
A successful marketing plan inevitably leads to requests for the real estate to be shown. A successful showing is one in which the buyer is able to view the real estate at their leisure and where they find the real estate clean, well-lit and comfortable. The number of showings that leads to the next step will depend on the market, the condition and the price of the real estate. However long it takes, the next step in the process is receiving a written offer. Your Realtor will sit down with you to present the offer and answer any questions. You will choose to accept, reject or counter the offer. Generally speaking a counter offer is the most common outcome to an initial offer. Your real estate agent will then work with you until the negotiations come to a conclusion that satisfies you.
The next step comes down to waiting - waiting while the buyer(s) work through the due diligence, waiting until the contract completes and you receive your money from the sale. Prior to the Completion date you will need to make an appointment with your Lawyer, or Notary Public, who will help you through the legal step of Completion.
The entire selling process culminates in money in your bank account in exchange for your real estate. A gratifying day for all involved and the smiles on that day indicate successful navigation through the selling process. We at The Fenton Team would love to help you get started.