How To Sell Your House for Top Dollar? 

An Excerpt from Seller and Realtor Conversation

04/15/2024

SELLER: How much will it cost to sell my house?

REALTOR: I charge 2.5% of sale price as listing side fees. For your approx $400,000 house, expect to pay $10,000 to my brokerage. My brokerage will split that amount with me.

SELLER: That is too expensive for this job.

REALTOR: How much do you think it should cost?

SELLER: 1% max! It’s a simple job.

REALTOR: I can’t do the job for so little.

SELLER: People in your line want to make too much profit. Don’t our kids go to same school? Cut me a deal.

REALTOR: I am sorry  you feel this way. Why don’t you sell it by yourself? I am happy to just post photos you provide on MLS and charge $ 800 for that exposure and lending my name and credibility to your listing.

SELLER: But I don’t know the process.

REALTOR: For $1000, I can coach you step by step. You are still saving $8200 on listing side.

SELLER: Deal. Show me how to get the TOP Dollar for my home.

REALTOR: Great! First, try to research comparables (comp) for your property. Pricing is very important. Under pricing or over pricing can lead to losing money.

SELLER: That’s easy! I will just go with the zestimate value. My value comes at $450,000.

REALTOR: Did you check how the zestimate was arrived at? Comp 1 and 2 are in more desirable school districts that buyers prefer, Comp 3 is totally renovated including new roof and utilities, Comp 4 and 5 are different house styles, Comp 6 has central air and forced heat vs window acs, Comp 7 has 1 extra bath, Comp 8 has was sold furnished. Try comparing in same school district, same house style, and make adjustments for all upgrades, beds, baths, pool, garage, micro location.

SELLER: How did you know about Comp 8? And how would I know the little details you mentioned above?

REALTOR: I am a local area expert. I am viewing houses in person and online. Based on that knowledge and remarks meant for Realtors on the MLS, we get this information.

SELLER: How do I get access to that area of MLS?

REALTOR: For that, you require to be a licensed Real Estate Agent, pass an exam after a 75 hour course, hang your license with a brokerage that aligns with your goals, be a paid member for local Board of Realtors, get paid access to the MLS’s in your area. You are looking to spend around $ 1400/year for the above. But still a saving of $6800 on listing side.

SELLER: Hmm. That’s cutting my savings. But I don’t have time to study or unnecessarily pay those dues. Let’s catch up on Saturday for further steps.

REALTOR: Wait! I can’t Saturday. I am in showings and open houses with my clients all of weekend as well as weekday evenings, along with kids class schedules. I can only teach others on Monday mornings as I have to prioritize my time and resources needed for other existing clients.

SELLER: But I have my job on weekdays. Ok then, I will sacrifice my few hours of work to save money on my house.

REALTOR: Right, me too. I work my fix and flip homes as well as undertake prospecting and marketing activities during weekdays.

Once you are done with the above, make sure you hire professional photographers as well as stagers. Your online listing will already determine a price in the buyers mind. If you decide to do a 3D tour, you will also gain out of state buyers who can see the home based on the 3D video. Make sure your house is presented well, smells well, it has curb appeal, fresh paint, clean, and remove that stained carpet, and other fixes.

Go to the town and make sure there are no open permits or anything else that will hinder closing.

Once the listing is on MLS, make sure house is always showing ready whenever buyers stop by.

SELLER: Wait! Who will show on weekends? I have plans with my family on weekends!

REALTOR: Not just weekends. Buyers can ask to show anytime any day per their availability. You can put a lockbox if you are not around. But you will need to make sure those buyers are qualified, legit, and will not ransack your house or harm you.

SELLER: How can I guarantee that? I am not comfortable letting strangers walk my house. What would you do differently?

REALTOR: I pay for the electronic lockbox that ONLY REALTORS have access to. Which means a Realtor needs to accompany their qualified buyers. I will also get notifications on which Realtor entered at what time, so it is easier to narrow down who visited the house and when, in case something were to happen in the house. For some exclusive listings, I also volunteer to be around for every showing. There is much more to it, which I will explain in our next coaching session.

SELLER: Ok, on a high level, will I get all the buyers just based on that MLS listing?

REALTOR: While I make sure house shows it’s best on the MLS, I also reach out to other brokers, neighborhood as well as renters who might be looking to buy- all through paid marketing including social media, post cards and flyers, texts, calls.

SELLER: Oh, that is additional expense.
REALTOR: Yes it is. I cannot point the exact amount, as it is variable. But to give an idea, 1000 postcards cost around $800, buying 1000 neighborhood leads costs around  $840/year, social media marketing could be around $10/day= $100 for 10 days. If you need a dialer to make the phone calls in the neighborhood, it costs around $1200/year for a single line dialer. You, as ‘for sale by owner’ don’t require an assistant to make those calls as it’s just this 1 time 1 house.

SELLER: I am already getting overwhelmed with all the expenses. I never realized there are all these expenses and work behind the scenes.

REALTOR: This is only the beginning. Once you get offers, in a nutshell, make sure you chose one based on price and terms. Check the buyer finances, make calls to lenders, check their motivation. And be ready to negotiate like a shark when the buyer comes back with inspection issues and throws curve balls during the process. You will need to stay on top of all deadlines and coordinate with both the attorneys involved in transaction, inspectors, appraisers and Building and fire departments of town for the Certificate of Occupancy.

SELLER: But once I select the buyer, will my attorney not help?
REALTOR: Attorneys are very important. They will cross the T’s and dot the I’s. But they will not know if the house was priced correctly, whether you chose the right offer, whether buyer requests are legit. They will not be around for inspections or appraisals. It is their job to make sure you are safe if the contract is breached.

SELLER: What if something goes wrong? What if buyer destroys my property? What if I get sued for misrepresentation?
REALTOR: That is a risk you take. We, as Realtors, have to carry an Errors and Omissions insurance in case of such circumstances.

SELLER: Wow! I had no idea that about all the expenses as well as work involved in selling a property for TOP Dollars. Plus, there is so much liability involved. And that I could be losing money on so many fronts. On second thoughts, this is my largest investment and I want it to be handled professionally. I would like proper representation for myself and my house through you.

REALTOR: Sounds right. Funnily, even the ‘For Sale By Owner’ Owner sold his house through a Realtor. Ironical, correct? Let’s walk your house, go over the listing presentation and agreement. Let me get to work right away for you.

This is the truth.

Sellers are not just paying to put a listing on MLS. They are paying for a Realtors knowledge, experience, negotiation skills, tools, time, family sacrifices and other things they bring to the table to help sell your house for TOP Dollar. Make sure you chose your Realtor wisely.

 TIP: Don’t leave $50,000 on the table by saving $5,000 on commissions!