4 Key Things to Know Before Selling Your Home
Over the years, the process of selling a home has changed in many ways but at its core it's still the same. Essentially, we want to get as many eyeballs as possible on the house, create a demand for it, sell it for the highest price possible, and protect the seller from future liability and headaches. To achieve these goals, a good realtor will use newer technology to create efficiencies and maximize their efforts. If you haven't purchased or sold a home in the last 10 years, you will want to speak with a professional to learn how real estate processes have changed and redefined how we get the job done. Computers have helped save time and money, and most sellers can benefit a great deal from the skill and experience of a professional who sells homes regularly. Here are four things to be aware of when it comes to the cost of selling your home in California.
Commission Rates
In the Sacramento market, sellers pay the commission for both the listing agent and the buyer's agent. This is how it's handled in most markets, not just here in California, but I don't want to speak for areas that I don't service. Although the seller is ultimately paying both commissions, technically they are paying the entire commission to the listing broker, who then splits the commission with a cooperating brokerage for bringing and representing the buyer. The most common commission rate nowadays is 5% for a standard effort and, generally, the listing agent takes half of that and the buyer's agent receives the other half (2.5% each). A description of what you can expect in exchange for the fee is detailed further below.
Basic Services Typically Included in a 5% Commission Fee
Prior to going on market your realtor will :
pull comparable properties in the area to help establish the best listing price for your property
discuss possible improvements to your home to make it look its best
coordinate professional photos
install a yard sign with a flier box full of fliers
upload everything into the MLS
provide a net sheet that summarizes how much money you will end up with upon close of escrow
Once your property is live on the market your realtor will:
share your listing with their professional network
share your listing on their social media accounts
share your listing with clients who might be a good fit
post it to any groups they participate in
field phone calls from the public and other agents to answer questions about the property and arrange showings
strategize any price fluctuations or market demands
hold an open house, if desired
Once an offer is accepted, your realtor will:
work with the buyer's agent to adhere to the contractually agreed upon timeline for sale
coordinate inspections, appraisal, loan approval, and anything else that arises
prepare all necessary documents and disclosures required by state and local agencies
keep you informed on all activities and relevant updates
What Does an Exceptional Effort Look Like?
Agents willing to put forth extra marketing effort are worth their weight in gold. Often, these realtors are in high demand and collect a higher commission rate, but many times the extra expense is worth it because your property will have an above average level of traffic and buyer interest. The more buyers you can attract to your property, the more likely you are to create demand and competition, driving the price upward.
Examples of additional services:
Home staging consultation
Video tour of property posted online
3D Matterport virtual tour
Calling homes in your radius to alert them to your listing
Postcards and fliers delivered to homes in your radius
Knock on doors in the vicinity of your home to share news with neighbors
Title and Escrow Fees
Title companies play a valuable role in the home-selling process by ensuring that each party fulfills their end of the deal, keeping track of paperwork and money as an impartial third party. You will pay fees for their products and services, including: title insurance policies, escrow services, notary services, overnight mail, courier fees, county recording fees, and more. I feel that a safe range for estimating title and escrow fees is between 0.5-1.0%. These are fees that won't be avoided whether you use an agent or sell the property on your own.
Final Thoughts
The process of selling your home begins the moment you begin your marketing plans, continues through the marketing phase and into the escrow period. This entire process and often takes a couple of months, many hours of work, and a number of expenses. Someone interested in buying or selling real estate would be smart to interview several agents and select the one they feel will do the best job. Be sure to ask lots of questions to get a feel for who they are and how they operate. You will likely be in contact with your agent several times per week, possibly daily, so be sure to choose a realtor you get along with and feel comfortable with, keeping in mind whether they are organized, communicate frequently and clearly, and whatever else is important to you personally. A good realtor is someone you will likely develop a relationship with and keep as a resource for many years, so choose wisely. Selling your home can be a stressful process and having a quality professional to help you navigate things will allow you to sleep better at night.
I would love to share my process with you, including a pre-market evaluation and consultation, marketing plan, negotiation style, and communication structure. There is no cost or obligation, I have a sincere desire to help you achieve your goals and make your life easier. Click here to start the conversation