You probably have a good enough reason to sell your house. Maybe you’re planning to either upgrade or renting is the better option for now. Or maybe you got an offer you couldn’t refuse. Whatever your reason is, you have one thing to keep in mind. Selling a property is not that difficult, but to close a deal that is in your favor, that’s a different story. This is most true for first-time sellers who have yet to figure out the ins and outs of the market.
Before you list your property in the buyer’s market, refer to this real estate checklist first. It’s better to take your time to cover all the bases than end up with an unrewarding sell.
Contact your Licensed Real Estate Broker/ Agent
The first order of business is choosing a licensed real estate broker/agent. No matter how competent you are in learning new things, you shouldn’t go about selling properties without an agent/broker working on your behalf. The process requires technical knowledge you may not have.
Pick a broker/agent that has a tried and tested track record in the industry. You can easily research that information online. Once you’ve chosen a reliable real estate partner, the next step is to agree on the terms of sale. That covers your broker/agent’s professional fee and/or commission.
Allow the broker or agent to assess the property
Let your broker/agent assess your property. This step has two functions. One is to appraise the current market value of your house. Here, certain considerations will come into play, including the location and physical condition of the property. The second function is so you and your agent can decide whether minor repairs and updates are necessary to make the property more enticing to buyers. That will also improve the listing’s asking price.
Have your agent draft an Authority to Sell for your property
After you and an agent agree on working together, the next step is to make that agreement legally binding via an Authority to Sell. This contract will be drafted by your agent. It will include the terms of sale, such as whether you are granting a non-exclusive authorization to sell or exclusive rights to sell. The latter means you cannot sell the property to other leads except those from your agent.
Provide the agent all documents and materials of your property
Your agent/broker will look into pertinent documents to know whether the property is clean or comes with financial and legal encumbrances such as tax problems, loans, and liens. Those will, at best, delay or, at worse, deny the selling of the property.
Be ready to show the land title, tax clearance, and tax declaration to your agent/broker.
Brokerage markets your property to prospective buyers
Ideally, your signed Authority to Sell has marketing stipulations. Those should declare how marketing expenses will be dealt with. Will they be shouldered by the owner or agent? Nowadays, most agents assume marketing costs. But that depends on how big their commission is.
Another thing to consider is the level of privacy you require. Are you okay with disclosing the exact location of the property? Do you have problems with releasing photos of the property online for marketing purposes?
Once your property is listed, viewings will come next. Talk with your agent about any preferred viewing schedule. That is most important if you still live in the property you are selling.
Prepare to receive a Letter of Intent or Purchase offers
If your agent markets your property well enough, in no time you’ll receive Purchase Offers and Letters of Intent. Once you sign any of those documents, you are legally bound to refuse other offers that might come. That is unless the purchaser failed to act upon their end of the bargain as stated in the contract.
Drafting of contracts and preparation for title transfer
Ready to sell? Prepare a notarized Contract to Sell with all essential stipulations. Give it to the buyer after the down payment has been made. Up to this point, you still own the property. That changes as soon as the full amount is paid and you’ve issued a Deed of Absolute Sale.
Other documents to get from the Register of Deeds (ROD) include, but are not limited to, the following:
- Certified True Copy of Transfer Certificate of Title ( Land )
- Certified True Copy of Condominium Certificate of Title ( Unit )
- Certified True Copy of Condominium ( Parking – if applicable )
If the Price is Right
When selling a property, your end goal is to set the best price for your listing.
Consider this scenario. You are selling a fixer-upper. Because you receive no counsel from a real estate broker or agent, you are convinced by a buyer that your property only costs so much, way less than what you anticipated. After the deal is closed, the buyer does some minor repair and sells the property with a considerable mark-up. That’s money you could have earned if you went through the process in a more informed manner. That’s the kind of situation you must avoid.
Don’t hesitate to ask for help. Consider enlisting the help of real estate experts from RE/MAX Gold. They will gladly walk you through the process of selling your property.