Questions a Seller Should Ask a Realtor Before Listing Part II
You’ve found a local real estate agent you can trust, and you’re almost ready to list your property. Now it’s time to figure out what you’ll do when different types of offers start coming in, and buyers start asking questions to demonstrate their seriousness in closing the sale.
It’s very helpful to be prepared for these scenarios now, rather than trying to think of an appropriate response on the spot. Here’s our final round of questions a seller should ask a realtor before listing their property:
What Do I Need to Disclose to Buyers?
There may be certain issues with your home (or your home’s history) that you’re hesitant to disclose to potential buyers. Your Realtor will tell you if you are legally obligated to disclose this information, or if state law says you don’t have to.
The general rule we follow is to disclose more rather than less – if they are going to find out that the roof is nearing the end of its expected lifespan, not hiding that fact will create a more smooth closing process when the time comes rather than create a protracted negotiation when they find out (which they will).
What are the Typical Closing Costs for a Seller?
Closing costs are commonly associated with buyers, but sellers are responsible for a few transactional fees of their own. This includes transfer taxes or title-related fees. We provide our clients with a seller net sheet.
So, before you start counting the money you’ll make from the sale, ask your realtor how much you should expect to pay in closing costs. This money is typically taken out of the sale price, so you won’t need to have it on-hand when you’re ready to hand over your keys.
What Happens if the Buyer Backs Out?
Yes, a buyer can legally back out of a signed real estate contract, or home purchase agreement. Since people change their minds about buying or selling a home all the time, your Realtor should have vetted the buyers and prepared the process to reduce the chances of this happening as much as they can. Sometimes this means not taking the highest offer, or it means they keep marketing your home after an offer is accepted.
You should get the impression that your realtor has dealt with speed bumps like this before, and won’t be surprised when adversity strikes.
Can I Stay in My Home After Closing If I Need More Time to Move?
It’s not uncommon for a seller to need more time to prepare for their eventual move after closing the sale. If you think you’ll find yourself in this situation, ask your realtor about including a post-occupancy agreement in the real estate contract. They’ll tell you what’s considered a reasonable length of time to stay in the home after closing, and how you can present the idea of a post-occupancy agreement to potential buyers. Depending on your buyer’s needs, you might be able to get anywhere from a few days to several weeks to stay in the home after closing (we have seen post occupancy agreements that have gone for six months before, so you can get longer ones if the buyer agrees).
How Do You Evaluate Offers Beyond Price?
The highest offer isn’t necessarily the best offer. Potential buyers may have contingencies attached to their offers, and your realtor should tell you which types to expect.
One buyer might need to move in immediately. Another buyer might have a lower offer, but it’s all-cash, compared to a financing contingency, meaning the sale depends on their ability to secure a mortgage.
Your realtor should also have a way of determining if a buyer truly wants the house and is willing to go through the rest of this process with you. Certain aspects of an offer can tell you what kind of a person you could be working with if you choose to move forward.
What Concessions Do Buyers Typically Ask For?
Seller concessions are a portion of the buyer’s costs that the seller agrees to pay for. This can include the cost of repairs, or credit for closing costs. If you’re in a buyer’s market, your realtor should tell you what kind of concessions buyers will most likely ask for, and which are considered reasonable in current economic conditions.
What if We Receive Multiple Offers?
There are many ways to respond to multiple buyers. You can choose one offer and accept it, or you can choose to counter certain offers and reject others. We always inform other buyers that other offers are on the table to ensure they are making their highest and best offer.
With so many options to choose from, your realtor should be able to guide you to the best response based on the offers you’ve received.
Should I Accept a Cash Offer Over a Financed One?
Since cash offers don’t rely on financing, they are less likely to fall through. However, your Realtor should be willing to examine the details of each offer, rather than just assuming an all-cash offer is always the best. So, ask your Realtor what kind of details could make a financing offer more appealing than an all-cash offer, and just how much more weight an all-cash offer carries compared to a standard financing offer in the first place.
What Happens After We Accept An Offer?
The journey does not end when you accept an offer, and your Realtor knows this. To prepare yourself for the various steps lying ahead, ask your Realtor exactly which tasks are required on your part to complete the transaction.
You can also ask them what kind of contingencies or decisions on your buyer’s part could potentially jeopardize the deal. This stage of the journey could test your patience, but not if your Realtor adequately prepares you for what’s considered reasonable behavior from seriously interested buyers.
How Will You Keep Me Informed?
Finally, make sure your realtor is prepared to keep you informed on the status of their selling efforts. Are you getting lots of good feedback from potential buyers? Are many of them expressing concerns with a specific aspect of your home, or the asking price? When should you expect to receive an offer that’s worth your attention?
Since this information directly affects the trajectory of your life, it’s understandable to expect regular communication and complete transparency from your realtor. After all, a Realtor who’s confident in their expertise and selling strategy won’t be afraid to tell you how it’s panning out.
We hope this guide make you feel more prepared to begin this life-changing journey. Educating our clients is a top priority at the Kern Team, and we’re happy to answer any questions you might have along the way.
So, when you’re ready to sell your home, give us a call, and we’ll show you exactly how to facilitate a quick and lucrative sale in today’s market.
