Top 7 questions to ask when hiring a real estate agent

Selling a home is an involved process requiring time as well as knowledge of the legal and financial intricacies of real estate transactions. The right real estate agent can help you navigate the paperwork, list and show your home to its best advantage, and gain the most value from the sale.

Investing the time up front to ask some important questions will help you connect with a real estate agent who has the expertise and resources to meet your needs. Here’s a list of the top seven questions to ask a real estate agent before signing with them:

1. What’s your experience?
Knowing how long someone has been working as a real estate agent gives you insight not only into their level of experience, but oftentimes into their level of service. Because real estate agents work on commission, longevity of service can be an indication of quality. This is not to say that newer real estate agents can’t also do a great job, but that experience should be one factor that you consider in choosing the right real estate agent for you.

2. What’s your expertise?
It’s important to work with a real estate agent who knows your market, understands the unique characteristics of your community and district, and has successfully sold homes in your price range. Beyond that, make sure that the real estate agent you choose is also knowledgeable about any factors specific to your situation—for example, if you are selling a fixer upper or have particular terms you want met in the sale of your home.

3. What are your credentials?
Of course, you want to make sure that you are working with a licensed real estate agent, but you also want to make sure you are working with someone who has a track record of quality service. Check out online ratings, client testimonials, and referrals before signing with any real estate agent.

4. What’s your plan for marketing my home?
You want to know that the person you are entrusting with the sale of your home has a well thought out strategy for listing the house, attracting prospective buyers, showing the property, and securing the best possible sale for you.

5. What will it be like to work with you?
When it comes to selling your home, you want a real estate agent you can count on to be responsive and easy to work with. Ask in advance if he or she is a full or part-time agent, and how many other clients they are currently working with. This will help you choose someone who has the necessary time to do their best work for you, rather than letting you get lost in the shuffle of an overly booked client list. You’ll also want to ask how the real estate agent will be communicating with you, if they are a part of a team, and if they will be working with you directly.

6. What are your results?
There are some important statistics that can help you understand how effective your real estate agent is on average. Ask the agent you are considering to tell you their list-to-price ratio as well the average days on market for the homes they sell.

7. What are your questions for me?
Selling your home is not only a major financial event, but usually a major event for you and your family on an emotional and social level. You may be leaving a home with many memories, moving to a new community, or looking for a place to meet the needs of a growing family. To have the best possible experience and outcome with your real estate agent, he or she should care not just about how much you want to get for your home, but about what is important to you as a homeowner.

Using these questions as a guideline for a conversation with a prospective real estate agent can help you find the best professional to guide you through the sale of your home.

Staging your home on a budget

If you’re getting ready to sell your home, staging can make all the difference in the length of time it takes to sell, and the price you ultimately end up getting.

In the past few weeks, we’ve talked about why staging your home, especially in competitive markets like Doylestown and Jamison, is so important, and we’ve explored the top five tips for staging. We’ve also talked about some of the hidden costs involved in selling your home, so if you want to reap the benefits of staging while keeping the expense to a minimum, here are a few tips and tricks to get started:

Strategic touch-ups

While it may be nice to completely renovate a bathroom, bedroom, or kitchen in preparation for selling your home, it will also be expensive. The good news is that you can still uplevel the look and appeal of those rooms without gutting them and bringing in all new appliances and furniture.
Here’s a list of small, do-it-yourself improvements that can still have a major impact:

• Paint and Hardware: Switching out old hardware (cabinet knobs and handles; sink, tub, and shower knobs and faucets) and painting cabinets instead of replacing them can bring a modern, fresh, and updated look to your kitchen or bathroom.

• Fabrics: Fabrics are key to setting the tone of a room. You can brighten up a small bathroom with a white fabric shower curtain, give new life to older furniture with slipcovers, and transform your bedroom into a serene oasis with elegant but inexpensive linens. Options like “bedding in a bag” are economical, and provide coordinated sheets, covers, and shams.

• Lights: You can change a room from dingy to warm by simply changing a light bulb or bringing in a small lamp. Replace fluorescent, harsh, or inadequate light bulbs with warmer, brighter options. If there are areas that need additional light, incorporating a small lamp is an inexpensive way to keep the room bright and inviting.

Height and focus

One of the best things you can do for a room is give it the illusion of greater space and height, and there are budget-friendly ways to do both.

Incorporating inexpensive accent pieces that have tall vertical lines can make a room look taller. From art work to narrow vases with tall, thin branches, items that draw the eye up will help enhance the perception of height in the room. Another trick is to use ceiling to floor curtains. Even if your windows aren’t that tall, the long line of fabric will create the illusion of higher ceilings.

You can also create a sense of spaciousness in your home by defining a focal point based on a feature you want to highlight. Whether it’s a fireplace, a beautiful window, or some other architectural element, draw the attention of your prospective buyers by using lighting or one can of paint in an accent color. This helps guide the eye through the room, starting with its best feature and following the flow of the space from there.

Your licensed real estate agent is also a great resource for advice on how to maximize the staging potential of your home with minimal out of pocket cost to you!

How to know if you’re ready to sell your Montgomery County home

In deciding whether or not to sell your home, there are a lot of factors to weigh, from financial to emotional considerations. Talking to a licensed real estate agent can help you navigate them and make a decision that will benefit you and your family for years to come.

This article will walk you through some of the most important financial considerations so you can begin to figure out your level of readiness, and can guide your conversation with a realtor if selling your home seems like it might be the right choice for you.

Money matters

The first thing homeowners need to establish when deciding whether they are ready to sell their home is the financial viability of the decision. Oftentimes, this comes down to seeing whether you have enough equity in your current home to pay off your mortgage and still have money left over to put a down payment on the new home, as well as finance the move.
Twenty percent is generally considered an adequate down payment, though there are options that don’t require as much up front. Keep in mind though that there are other costs involved in moving, from obvious ones like hiring a moving company, to more hidden costs like transfer tax.

These additional expenses can add up to thousands of dollars beyond what you’ll need for a down payment, so it’s vital to understand what they are ahead of time, and to know if your equity or other savings will cover it.

Determining equity

You can determine how much equity you have in your home by subtracting how much you still owe on it from its current market value. The current market value of your home may be very different from what you paid for the property, depending on upgrades you may have made, or changes in the market in your area.

There are free tools online to help determine the current market value of your home, but you can also enlist the help of a real estate agent to give you a Broker Price Opinion (BPO) or a Competitive Market Analysis (CMA).
With a BPO, the agent will look at your house as well as the value of comparable homes in your area and give you an estimate on your home’s current market value. With a CMA, the agent gives you an estimate based mostly on what other homes in your area sold for.

The big picture
Your readiness to sell will also depend on your bigger financial picture. Do you have a lot of debt besides your mortgage? What is your debt-to-income ratio?
These and other questions will matter to any lender you work with if you are planning on buying a new home after selling your current one. Lenders want to see that you will be financially capable of making your mortgage payments.

While the number certainly varies from lender to lender and in different areas and circumstances, many lenders look for a debt-to-income ratio of 43 or lower. This means they want to see 43% or less of your income going towards paying off debt.

Understanding these elements of your financial health and your leverage as a homeowner will help you decide if selling your home makes sense for you at this time. For more information, or to get further guidance on selling your home, talk to a licensed real estate agent.

The hidden costs of selling your Bucks County or Montgomery County home

When it comes to selling your home, certain expenses are expected. Most people will be buying a new place to live, even if they are downsizing, so the idea of needing to be prepared for a down payment usually doesn’t catch people by surprise.

But there are other expenses that may be less expected and fairly costly. Use this checklist and talk to your registered real estate agent to see which ones may apply to you so you can go into the sale of your home fully informed and prepared.

Closing Costs
Closing costs include your real estate agent’s commission but they also include any other administrative fees, legal fees, and taxes.
Here are some of the administrative or legal fees you may encounter when selling or buying a home in Bucks and Montgomery County Pennsylvania:
• Deed preparation
• Real estate tax certification
• No lien letters: varies in PA from a few dollars to a couple hundred
• Closing fee
• Document prep
• Occupancy permit: cost varies, and whether this is paid by the seller or buyer depends on the municipality
• Notary fees and overnight mailing fees

Beyond this, the State of Pennsylvania charges a 1% sales tax, and the school district and municipality together generally charge another 1% for a total of 2%. Buyers and sellers usually split this cost, but your purchasing agreement may spell out different terms.

Home prep

Prepping your home for sale is another area that needs to be factored into the overall cost of selling. Here are some of the ways home prep may contribute to your selling costs:

• Home improvements: If you know you are selling your house, you may choose to make some strategic improvements to add to the value of the home, like waterproofing the basement, or getting central air conditioning.
• Home repairs: You may decide to do some repairs in advance of putting your home up for sale, but a prospective buyer may also request additional repairs based on the home inspection. These can include anything from plumbing to roofing to addressing environmental hazards like mold or damage from termites.
• Staging: It’s important to get your home ready for showings, so prospective buyers can imagine themselves living in the space and making it their own. Whether you hire a professional stager or do it yourself, there is likely to be some cost involved with making your home ready for open houses and showings.

With the right knowledge and guidance, selling your Pennsylvania home can be a rewarding experience and a sound financial move. By knowing in advance what to prepare for, you’ll be well on the road to making a profitable sale. If you have questions about the cost of selling your home, be sure to talk to your registered real estate agent!

Do I really need to stage my home before selling?

When you’re ready to sell your home, a licensed real estate agent can help you navigate the process, saving you a lot of time and ensuring you get the most value for your property. One of the steps real estate agents recommend to make the sale easier, quicker, and more profitable is staging your home.

While you can tailor your staging efforts to your budget and the amount of time you have available, staging is also an investment. So just how important is it to dedicate any of your resources to staging?

Return on investment

There are many benefits that make staging your home a worthwhile investment, but the thing most people want to know is, will it pay off in a better selling price?

According to the National Association of Realtors (NAR), it will. In fact, their statistics show that for every $100 invested in staging, the potential return is $400.

A staged home is also much more likely to sell for the asking price. The NAR estimates that the average home listed for $400,000 will be reduced by anywhere from $40,000 to $80,000. With staged homes, that reduction is often minimized or eliminated. Staging can even result in selling your home for more than the asking price!

Additional benefits of staging your home

Beyond the major financial boost, there are other benefits to staging your home. Here are just a few of them:

• Faster Sale: On average, staged homes spend less time on market, selling more quickly than non-staged homes.
• Buyer-Friendly: A staged home is buyer-friendly. People have very different tastes; by staging the home in a clean, uncluttered way, buyers see more of a “blank canvas,” making it easier for them to imagine themselves living there.
• Time-Saver: Staging your home often means decluttering. You may pack up some items, giving you a head start on the packing for your move, or you may downsize by donating or disposing of some items you no longer need. Either way, you save time when you’re packing up.
• Space-Maker: The rooms of a clutter-free staged home will appear larger—giving your buyers more space to imagine where to put their own belongings.
• Difference-maker: In competitive markets like Doylestown, Jamison, and other Bucks county locales, careful staging can be the thing that sets your home apart from others on the market.
• Confidence-Builder: Staging your home presents it as a space that is cared for and well-maintained. This increases the confidence of potential buyers, putting their mind at ease that they are dealing with conscientious homeowners who have kept the property in good repair.

With all of these benefits, it’s clear that staging is a worthwhile investment to make in preparation for the sale of your home. In our next article, we’ll talk about how to stage your home, sharing some tips on low-cost, high-impact staging strategies.

Selling your home in Pennsylvania, part 2

In Part 1 of this article, we talked about things Pennsylvania homeowners need to be aware of in the beginning of the selling process: working with a real estate agent, signing a listing agreement, and making real estate disclosures.

We’ll pick up here with the next steps in the process: responding to offers, counteroffers, and purchase agreements, entering escrow, and attending the closing of your Pennsylvania home.

Responding to offers, counteroffers, and purchase agreements:

With the help of your real estate agent, you may soon have an offer on your home. An interested buyer will submit a written offer to you, and it will include the basic terms they are proposing for the transaction.

The offer will spell out how much the buyer is willing to pay for your home, how much of that they are offering as a down payment, and contingencies. Contingencies are factors that the sale of the house depends on, and could include things like you passing a home inspection, or the hopeful buyers selling their own home.

Once you receive an offer, you have three options: You can accept the offer as it stands, you can completely reject the offer, or you can make a counteroffer. In a counteroffer, you accept some of the items the buyer has proposed, but ask for some of them to be changed. Counteroffers are common, and usually involve negotiating for a higher price. Your real estate agent can help you decide what kind of counteroffer to put together to get the most value for your home.

When you accept an offer, either outright or after counteroffers have been made, you sign it and it becomes a legally binding contract. This contract outlines the conditions of the sale, from price to closing date.

Entering escrow:
After you and the buyer both sign the purchasing agreement, you enter escrow. Escrow simply means the window of time between when you sign the purchasing agreement and when you close on your home.

This is an important time in the transaction, and you will most likely work with an escrow or title agent to guide you through it. In addition to being experts in the process, they are also objective parties, so they can mediate between you and the buyer of a dispute comes up.

During escrow the person buying your home will probably have more to do than you will. It’s their job to take care of things like the financing, appraisal, and title insurance. They will also have to work on making sure any contingencies are met so the sale can move forward.

Depending on how your purchasing agreement was written, if there is a serious dispute you cannot resolve with your buyer, they may have a chance to end the transaction without any penalty.

Attending closing:
When you and the buyer have met all the conditions of your purchasing agreement, escrow ends and you can close on your home. Closing, sometimes called settlement, is usually done in one day, and involves exchanging payment and all final documents. This is also the time when you pay the commission to your real estate agent that you agreed on when you listed your house with them.

Pennsylvania does not require homeowners to be present at a closing, as long as both sides make sure they have signed and exchanged all of the necessary documents, and all costs have been paid.

If you have any questions about selling your Pennsylvania home, reach out to a licensed real estate agent to guide you through the process and help you get the most for your home.

Source: https://www.lawyers.com/legal-info/research/pennsylvania/selling-a-house-in-pennsylvania.html