MHA Pledge to Sellers
Members Home Advisor REALTORS® Pledge to Sellers
I will provide a written market overview and market analysis to include:
- Supply and demand in overall market and neighborhood overview
- Past comparable sales
- Pending sales
- Resale and new home competition
- Supply and demand
- Historical overview: number of buyers in the market
- Property evaluation: Condition
- Location and appeal vs. competition
- Necessary repairs
- Home staging for best presentation
Supported by the facts, I will make recommendations on price ranges and pricing based on the time in which you have to sell.
I will outline for you my plans to expose your home to the buying public.
I will communicate with you.
Having your home on the market is difficult, and much like living in a fishbowl or model home. I know it is important to you to know what is happening. We will determine a mutually agreed upon schedule for communication.
I will present all offers to you.
When we receive an offer on your home, I will present it to you with the following information:
- Market Information
What is happening in the market now: recent closings and any changes in the competition. - Buyer Qualification and Profile
As much as I can learn about the buyer’s motivation and financial qualifications. - Offer Interpretation and Presentation of Alternatives
We’ll talk at length about how the offer is written, and what it means to you. I will suggest alternative counter offers and explore strategies. - Negotiation Strategies and Objectives
I will communicate with you my suggestions for negotiating the offer to a successful conclusion.
I will do my best to guide the transaction to a successful closing.
- Weekly report on status
- Coordination of inspections/reports/repairs/appraisal
- Re-negotiation if required
- Coordination with title company
Working with Real Estate Agents
Does your employee need a Real Estate Agent?
Purchasing a home is likely the single largest investment your employee will make in their lifetime. A contract to purchase is a legally binding contract with some pretty stiff penalties if either party defaults. Values in neighborhoods are dependent upon closed comparable sales, competition and market trends. A good agent can provide valuable insight, information and interpretation of the information.
When they step out into the market, it is a good idea to have someone on their side that knows the market and knows how to protect their interests. Not only can their real estate agent locate prospective properties that fit their criteria, they can:
- Evaluate the price based on comparables, condition and competition
- Help determine offer and terms
- Negotiate with the seller
- Recommend several good inspectors to help determine the condition of the property
- Re-negotiate repairs with the seller that are needed
and
- Oversee the entire closing process
What does a Real Estate Agent do?
Representation.
The agent represents your employee’s interests. They have been through the process many times before, and know what to watch out for and how to avoid potential problems.
Needs Analysis.
Share needs and wants in a home with their real estate agent. They have seen the available homes in the surrounding neighborhoods, and know how much of the list can be reasonably obtained. They can, based on market knowledge, help prioritize that list and show homes that fit your employee’s needs.
Neighborhood Information and Interpretation.
The web is filled with information on homes for sale. Check out realtor.com for listings of homes all over the US. One can see pictures, prices and room sizes. The real estate agent can interpret that information. He or she will know which areas hold value, which areas might be declining in condition or value, and what recent sales have been. Their knowledge of new home upgrades, locations that might be problems in the future (is there a new, busy street in the future at the back of your lot?), and overall real estate trends can make the difference between a good buying decision and one your employee will regret when they must sell.
Market Analysis.
Once the home has been found, one needs to know how much to pay for that home. The agent will provide a written market analysis of the property, comparing it to recent sales and competing properties that are on the market. With this information in hand, one will be prepared to make a reasonable offer and will know the limitations on what should be spent on that particular home.
Negotiation/Offer and Counter Offer.
Once an offer has been formulated, the agent will present that offer to the seller and the seller's agent. The real estate agent is skilled in presenting the offer in the best light, as well as explaining the factors that were used in determining a fair offer. When making an offer, there’s a lot more to negotiate than just a sales price – such as time to close, terms, move in dates and who is paying what closing costs. It is the agent's job to "sell" the offer effectively, and, if the seller counters the offer, to make recommendations on the responce.
Inspections.
Once an offer is accepted and escrowed, there is still work to do. The home should be inspected by a competent, recommended and licensed inspector. Even if the home is new construction, someone needs to looking out for the buyer’s interests by checking the functionality of the home being purchasing. If substantial repairs are needed, it is time to re-negotiate with the seller on those costs. Decisions need to be made about who will make those repairs and when they should be made. The real estate agent can make recommendations on qualified inspectors, and will follow up to make sure all inspections have been completed by the deadline dates specified in the contract.
Appraisal.
An appraisal will be done on the home on behalf of the lender. The true purpose of the appraisal is to verify to the lender that there is enough value in the home to justify the loan.
Title Insurance.
Title insurance will be issued to protect the buyer from any title claims against the property in the future.
Survey.
A survey will be done to show just where the home sits on the property, where the property lines are, and what electrical, telephone, and utility easements exist and where they are. The seller can provide for (if they have it) a previous survey and certify that nothing has changed since that time.
Closing.
Prior to closing, the title company will issue a settlement statement. It outlines the buyer’s and the seller’s costs, and shows how much money will need to be available at closing. The loan officer and real estate agent will review this, correct any discrepancies, and advise on the amount of money (in certified funds which means a cashier’s check made payable to the title company) will need to be brought to the closing
