Listing your home for sale in 2024

Listing your home in 2024 is mostly the same, but a little different than it was in the past. In this blog I’ll strive to outline the basics of selling your home with a realtor and set expectations for what might transpire once a listing agreement is signed. 

Prepare: 

First of all, prepare to interview an agent by gathering any relevant documentation: 

• Mortgage Payoff Statement
• Interest rate of the mortgage
• Closing documents
• A copy of the deed
• Homeowners insurance policy
• HOA documents, CC&Rs, etc.
• Home improvement, maintenance and repair records
• Manuals and warranties

The First Meeting: Interview agents at the property. 

Interview realtors to find a good fit. They will walk the property, take photos and generally observe the condition of the home. Your realtor will collaborate with you to create a good strategy to sell. So, it’s important that you choose wisely. The realtor will market the property, advise you every step of the way, and communicate and negotiate with buyers and agents directly so you don’t have to. Real estate transactions can become fraught with emotions, so having a level headed, skilled listing agent is very valuable.  

Pricing: Steps to the Net Sheet 

The Net Sheet is a document prepared by the listing agent outlining the expenses and potential net to be expected at closing. 

Examining the Property

After walking the property, taking into consideration relevant market data and the current condition of the home the agent will create a comparative market analysis (CMA) to provide a relative picture of the value of the property given the current market conditions and provide a broker’s price opinion (BPO) suggesting a list price. Some agents will suggest taking a proactive approach by hiring a home inspector for a pre-listing inspection. Note that, If material defects are found in the pre-listing inspection, the seller will be required by law to disclose that information to buyers submitting offers. If the home presents pricing challenges due to the uniqueness of the property, or other issues such as a lack of comparable sales, a pre-listing appraisal might also be in order. Also note, sellers aren’t obligated to share pre-listing appraisals or inspection reports with buyers.  

A preliminary title check will help the agent and seller to understand what’s owed on the property, and bring up any issues with the title such as liens, or other problems that could impact or delay the sale of the home. In Oregon, unless the home is vested in a trust where the seller does not have sufficient knowledge of the property to provide disclosures, Seller’s disclosures are required when selling a home. This document is the seller’s statement regarding the condition of the home. Be honest when disclosing any known defects, as there could be legal consequences down the road for deceiving a buyer by hiding this information. 

Listing Agreement:

After you’ve made a decision regarding a realtor, expect to sign a listing agreement. The listing agreement is a contract with the realtor to market the home. It will outline what the realtor’s duties are and what they will get paid. At this point, you will have your first negotiation in the sale process: coming to an agreement on realtor fees and structure. 

Listing Fees: 

There is no standard listing fee paid to agents. Listing agents and buyers agents are paid by agreed upon commissions or flat fees when the sale is complete. These fees have always been negotiable, and remain so. In the past, it was generally expected that the seller would budget to offer to pay the buyer’s broker from the proceeds of the sale. (i.e. listing fee = 6% of sale price, to be split 50/50 with buyers broker at closing). The buyer’s agent commission amount was included in the listing and published on the MLS.  At this point, the commission structure has been decoupled, and advertising it on the MLS is no longer allowed. Buyers are now required to agree to be responsible for a set fee or commission rate with their broker at closing. When submitting an offer, they may request that the seller contribute to that expense with seller concessions or price reductions. Discuss the ins and outs of offering a buyers agent commission with your listing agent to set expectations surrounding this element of the sale. 

Marketing Costs:

Upfront marketing costs might be covered by the listing agent, the seller or both. Discuss this with your agent. Budget for basic marketing such as photos, videos, staging, fliers, home books, cleaning, open houses or events, and updates to the home to improve marketability. Common updates include painting, landscaping, new appliances, carpet, etc. Obvious repairs might also be in order to improve curb appeal - think roofing, flooring, hazardous sidewalks, systems upgrades like a furnace or HVAC/Heat pump, oil tank, cesspool or septic decommissioning, etc. 

Closing Costs: 

Aside from physically preparing your home for sale, a top consideration for most sellers is….. an age old question, what will it cost me to sell my home? Aside from realtor fees and marketing expenses, sellers have closing costs too. In Oregon, expect to pay 2 - 3% of the sale price for various closing costs including:

• Seller concessions or discounts - negotiated as part of the sale
• Home transition costs - property taxes, or if relevant, HOA fees
• Outstanding balances: The costs are variable according to the situation and could include a mortgage, home equity loans, HELOCS, accrued interest, prepayment penalty. 
• Administration & Taxes fees: Attorney’s fees, title search, title insurance, transfer tax (if applicable), escrow fees
• Outstanding expenses: Utility bills, HOA estoppel fee, municipal lien search

Now that all of these elements have been considered, it’s time to list the home. 

Real Estate sellers have control over price, condition and access.

Sellers don’t control market conditions! 

Price: Price will be dictated by data, the condtion of the home, and market conditions. It is not dictated by what the neighbors home sold for, what you paid for it or need to make on it,  or what the seller believes it’s worth. 

Condition: The condition of the home is up to the seller. If repairs need to be made or maintenance is in order when it’s listed, expect that buyers will approach these when negotiating. Remember, it’s not just the buyer who may have issues with the condition or price point of the home. Lenders play into this part of the sale as well. If the house isn’t up to snuff and can’t be financed, the buyer pool will shrink and it may take longer to sell the home. 

Access: Consider that potential buyers will need good access to tour the home in order to make a decision. Make the home accessible by preparing to show it. Vacant homes are easier to show and allow the buyer to see the home for what it is without the seller’s personal belongings providing visual noise. Keep the home secure. It’s surprising how often vacant homes for sale are broken into or occupied by squatters. This is a huge turn off for a buyer!  If the home is occupied, keep it clean and organized so it’s a pleasant experience for agents and buyers touring the home. Make appropriate arrangements for pets during showings. Remove any trash or junk from the property that could be dangerous or attract unwanted pests. 

Marketing: Work with your agent to come up with a comprehensive marketing plan. Every marketing plan is different, but your agent will likely have systems in place to facilitate the sale of the home to get it sold for a top dollar amount in a timely fashion. They are your trusted professionals, so listen to their suggestions and take them seriously! 

In conclusion, I hope this information helps on your journey to selling your home. If you’d like a personalized evaluation of your home value, or to explore your options when considering a sale, I’m here to help! 

Sam Densmore/Realtor/Inhabit Real Estate/ 08/30/2024 All Rights Reserved