- Placing Your Home on the Market
- A Little Homework
- Your Home’s Special Features
- Property Profile Folder
- "What Conveys?"
- Comparative Market Analysis
Placing Your Home on the Market
The first step toward putting your home up for sale is to meet with your REALTOR® at your home. This meeting is referred to as the "listing appointment". Beforehand, it's also important to understand “who's who" and how brokers may co-operate to sell your home.
Listing Broker
In Illinois, sellers hire a sponsoring brokerage company to represent themselves through a contract called a "listing agreement". Their designated agent is associated with the sponsoring brokerage. The sponsoring brokerage is directly paid the total listing commission and then splits the commission with the designated agent and the buyer's sponsoring brokerage company.
Selling Broker
An individual who produces a buyer for the property and divides the commission with their sponsoring brokerage company. Such a transaction is considered a "co-operative" sale because the property is listed by one sponsoring brokerage and the buyer is represented by another designated agent from a sponsoring brokerage.
A Little Homework
Before the listing appointment, the designated agent studies recent area sales of homes comparable to the seller's, and also comparable homes currently for sale.
Your Home’s Special Features
At the listing appointment, the designated agent will want to inspect the entire home and yard to become familiar with its special features and floor plan. You have probably enjoyed living in your home and have been pleased with its many unique features. Your designated agent will want to tell prospective buyers about the special features of your home and community. Be ready to be specific about schools, churches, daycare, nearby metro, and other desirable community features, as well as home features not readily apparent.
Remember, prospective buyers will be "comparison shopping" and keenly aware of subtle differences in homes for sale in the area. Be sure to tell your designated agent why yours is special, from any home remodeling to afternoon winter sunshine.
"What Conveys?"
In anticipation of a buyer's offer, the home seller must be ready to supply the designated agent with a specific list of the personal property that is included in the real estate property for sale. Examples of items to "convey" may include: draperies, drapery rods, firewood, washer, dryer, refrigerator, stove, microwave, disposal, swimming pool chemicals, awnings, storm doors and windows, screens, blinds, shutters, window air conditioner, etc. Home sellers should tag or remove items that do not convey.
When the home seller is ready to put the home on the market, the listing agreement is filled out indicating a specific period of time the agreement is in effect ("listing period"), and signed by the seller. You've now hired a listing broker.
Comparative Market Analysis
Maximizing Market Value
A Comparative Market Analysis (CMA) is an important tool designated agents prepare to help you earn the highest possible price for your home. A CMA involves looking at the public records of real estate activity in your community to better understand market conditions.
There are four steps your designated agent will take in preparing your home’s CMA:
- Your REALTOR® will consider the amount paid for at least 3 recently sold homes in your community. These homes will be comparable in size to yours and together comprise a factual record of what buyers will pay.
- Your REALTOR® will then consider the asking prices of at least 3 presently listed homes in your community. Because these homes are similar to yours, these homes will be the benchmarks against which your home will be priced.
- Your REALTOR® will then consider the asking prices of at least 3 homes in your community that went unsold for at least 90 days. Similar to your home, these homes illustrate the dangers of overpricing your property.
- Finally, your REALTOR® will use all the price information gathered to arrive at an ideal asking price for your home.