Marketing A Home FAQ's


What if I do have to sell my old house first?

Some brokers offer guaranteed sale plans, which are essentially a written promise to buy your house at a pre-determined price if it doesn't sell by a certain date. The amount of the guaranteed price varies considerably between brokers.

What if I can't sell my old house before we have to move?

This situation can arise for any number of reasons. For instance, getting the job promotion you've been waiting for may mean having to relocate very quickly. Another example: you finally find your "dream home," and need to get it under contract before it sells to another buyer. Whatever the reason, don't panic. You have some viable alternatives to the potential nightmare of double mortgage payments.

If you don't have to sell in order to buy a new home, renting is one option to think about. Consider the advantages and disadvantages of renting your old house. If you're being transferred, you may be able to obtain a short-term rental while you're becoming familiar with the new area. Either way, a local broker can usually help, by advising you how much you can expect to pay for rent in your new city, or what you need to charge to cover your mortgage payments and other costs you'll entail as a landlord.

Another solution available from some brokers is the guaranteed sale plan, which is detailed in the next question.

How do I reach the right potential buyers?

There was a time when selling a house was simple. Your real estate agent would put a sign in the front yard, an ad in the paper, and wait.

Of course, agents still do those things -- but that's far from all they do. Today, people are moving further and more frequently than they used to; it's not unusual for upwardly mobile executives to relocate across the country more than once in a year. The result is that the pool of potential buyers for your house is much larger and spread far wider than ever before, and the competition to reach them is fierce.

Because you'll probably need to cast a wider net to find the right buyer, choosing a real estate company that offers the sophisticated marketing techniques that define likely buyers, where to find them, how to reach them, and how to persuade them to buy one house over another has never been more important. The fact is, virtually everything we've discussed up to this point, from pricing to home improvements, the Competitive Market Analysis to the "For Sale" sign in the yard, is part of a marketing process that's put into motion when you decide to work with a good broker.

What's an MLS®, and why do I need one?

A Multiple Listing Service, or MLS, is one innovation that makes it easier to reach a large number of prospective buyers and dramatically increase the exposure of a property.

Quite simply, it's a system under which participating brokers agree to share commission on the sale of houses listed by any one of them. So, for example, if you list your house with one broker and another broker actually sells it, they share the commission. The advantage to you is clear; more people have an interest in selling your house.

Over the years, the MLS concept has grown from a strictly local sales tool into a powerful national marketing system. That's due largely to REMAX, whose pioneering use of the fax machine led to the development of the nation's first, and still the largest, interstate shared listing system.

How important is advertising?

Advertising remains one of the most important components of the marketing process. But again, it's not as simple as it used to be, at least not in the hands of a good broker.

Many people don't realize how costly advertising can be -- a single page of photo listing ads run by a local real estate office in your local newspaper can cost anywhere from several hundred to several thousand dollars. Yet it's a far more cost-effective way to go than the three or four-line classified ad you would probably run you were selling the house yourself. Here's why:

Your classified ad requires a prospective buyer to find it amidst the dozens of others on the page, and be impressed enough by its message to call in response. In contrast, the broker's ad is designed to "find the buyer" -- with its large size and easy-to-read layout, the eye-catching photographs and professionally written descriptions, plus the fact that it includes not just one, but several houses for sale.

How does the inclusion of other houses benefit yours? The power of numbers, plain and simple. Fewer than 5 % of buyers actually purchase the first house they call about. When they call to respond to the broker's ad, on the other hand, they're likely to be shown a number of houses similar to the one they initially express interest in seeing.

And that's just advertising in the local newspaper. Brokers today, especially larger ones, employ a variety of other proven advertising methods, including the Internet, magazines, radio, TV, and direct mail.

What should we expect from an open house?

As another valuable part of the marketing process, the open house offers prospective buyers the chance to view houses in a low-pressure, "browsing" atmosphere. With that in mind, you shouldn't expect it to generate a sale, at least not directly. What you should look for is traffic, and calls to your agent for private showings in the days following the open house.

Open houses are always valuable, even if very few people show up. Such a situation can indicate that the price is too high; it may also lead you to look for ways to improve curb-appeal. Try not to draw your own conclusions -- your agent will give you a full report on open house activity, and offer a professional assessment of its results.

Agents often hold an open house for other agents shortly after a house is listed. This event, usually held mid-week when real estate people can give it their full attention, can be as important to your efforts as your listing in the local MLS. The more professionals who see your house, the more prospects you're likely to reach.

Should we try to avoid being at home when the house is shown?

You should definitely plan to be out of the house during any open house your agent has scheduled; the same goes for first showings to prospective buyers. People often feel uncomfortable speaking candidly and asking questions in front of current owners. You want them to feel as free as possible to picture your house as their "dream home."

Who actually sells my house -- a broker or an agent?

Both. In legal terms, a real estate agent is an individual trained and licensed to act for other people looking to buy or sell a piece of property. While that definition applies to both broker is permitted to collect fees and/or commission for such work. Thus, the sale agent -- with whom you have most of your day-to-day contact -- works on behalf of, and is compensated by, the broker.

Will my agent be present at the closing?

If you wish. While their presence is not required by law, both the buying agent and the selling agent may attend the closing. Even though most of the procedures are handled by the lenders, title companies and in some cases an attorney, you'll find your agent to be a valuable source of information and counsel, especially if any last-minute problems arise.

Good agents are also extremely helpful in the days immediately prior to the closing. They'll help you prepare by giving you a step-by-step preview of the entire process and what will be expected of you. And they'll make certain you bring all necessary documents and other information.

What makes a sales agent effective?

We like to think good training and experience make the best agents. But the truth is, not every agent is right for every seller. And that's why we suggest you follow this simple formula to help you decide whether a particular agent will work well for you:

COMPETENCE + COMFORT = CONFIDENCE

Competence: When you first meet with real estate agents, they'll do their best to show you that they have what it takes to sell your house. You can expect to see a portfolio of credentials, past achievements, sales volume and letters of recommendation. Look for evidence that their background is relevant to your needs -- someone whose portfolio includes success with houses in your price range, preferably in your immediate neighborhood.

Comfort: The importance of being comfortable with your agent as a person cannot be overstated. You're going to be dealing with this individual on a regular basis, maybe for months, during a time that can be emotionally trying for you and your family. Indeed, your agent may well become something of a family member, who shares in the tension, anticipation, frustration, and ultimately the joy of selling your house.

It takes a unique combination of those two characteristics to inspire the confidence a homeowner needs to maintain peace of mind through the process of selling a house. It's something every REMAX agent strives for. It's our way of doing business.

How do I find the agent that's right for me?

A good place to start is by talking to friends, neighbors, relatives -- anyone whose recommendation you trust.

Another way to find an agent well-suited to sell your house specifically is by responding to local advertising from agents -- such as those "just sold" mailings you find in your mailbox from time to time. The very existence of such self-marketing efforts suggests that they may have more to offer you than the agent who picks up the phone when you call the local real estate office.

Do I have to pay a commission even if I find the buyer?

That depends of the type of listing you agree to. If you sign an exclusive agency contract, you may still sell the house on your own without paying a commission. In an exclusive right-to-sell agreement, you owe a commission even if you find the buyer.

What is the advantage of an exclusive right-to-sell?

The answer is incentive -- it affords agents the protection they need to know their time and effort will not go unrewarded. That's one reason the great majority of residential listings are marketed under exclusive right-to-sell agreements.

What if my agent doesn't produce?

Besides commission, the most important matter you negotiate at the time of listing your house with a broker is the duration of the listing contract. Terms vary, but listing agreements are seldom for less than three months or greater than one year.

So what if you find yourself dissatisfied midway through a nine-month contract?

While the listing contract is legally binding, some brokers offer homeowners an "out" if they are unhappy with the services they are receiving.

Why list my house with an REMAX broker?

Exclusive services that can make selling your house faster and easier, unparalleled expertise in local and national markets -- those are some of the reasons why no one can sell your house more effectively than an REMAX broker.

Beyond that, we're sincerely interested in helping make the experience of selling your home as smooth and easy as possible. So even if you're not ready to list your house quite yet ... if you simply have questions about the market in your area, price or mortgage trends, anything at all about real estate as it relates to you ... just pick up your phone and call the REMAX office nearest you. It's "Just the kind of help you'd expect from a friend."