HOUSE COUNSEL; The ABCs of Selling a Home or Condo

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HOUSE COUNSEL; The ABCs of Selling a Home or Condo
2005-12-09
Boston Herald

By NENA GROSKIND

Q: My husband and I bought our first home five years ago - an attractive ranch, but not the house of our dreams. We'd like to sell it now and buy what we REALLY want, but don't know where to start. Could you explain the selling process?

- L.A., Brockton

A: There are three ways to sell a house:

** on your own, without a real estate broker;

** with a full-service broker, who will handle most everything in exchange for about a 5 percent commission;

** with a discount broker, who will charge less, but only do some of what a full-service broker does. (For instance, the person might include your home on the Multiple Listing Service, but won't hold open houses.)

For many sellers, which way to go generally centers on how badly the person wants to avoid paying a full-service broker's fee.

However, an equally important consideration should be your willingness - and ability - to manage some parts of the sale yourself.

Here's some advice on how to sell your home with a broker. (Next Friday, I'll talk about selling a house WITHOUT one.)

For openers, you'll need to find a good agent. I recommend you:

** Make sure the person is a "Realtor" - a member of the National Association of Realtors (not all real estate agents are Realtors).

Belonging to the Realtors association implies that the agent has a level of professional training, commitment and adherence to ethical standards that you can't otherwise assume.

** Check out the agent and/or brokerage firm with the state Board of Registration for Real Estate Brokers & Salespeople (mass.gov/dpl/ boards/re). Also check with the Better Business Bureau (bosbbb.org). Both bodies can tell you about any complaints against the agent or firm.

** Request (and check) an agent's references. Also see if any of your own friends or acquaintances have had experiences (positive or negative) with the agent or firm.

Plan to interview at least three or four agents before selecting one.

Make sure the person you choose has specific knowledge of and experience in your market area.

DON'T select the broker who proposes the highest asking price for your home.

Instead, choose the one who presents the most comprehensive and persuasive market analysis.

Additionally, ask:

** what steps, specifically, the agent plans to take to sell your home;

** where and how often the broker intends to advertise your property;

** whether the broker will list your house in the Multiple Listing Service (the answer should be yes);

** if the broker will hold one or more open houses for OTHER BROKERS, to introduce the market to your property;

** how many open houses for buyers the broker will host (and how the person will advertise these);

Once you settle on a broker, pay careful attention to terms in the listing contract the person will ask you to sign.

Make sure the deal obligates the broker to implement key components of the marketing plan he or she outlined.

The pact should allow you to terminate the deal if the broker fails to do what the plan specifies.

Also include a provision requiring the broker to report to you periodically, preferably in writing, on the marketing efforts and the response to them.

If you decide to use a discount broker, make sure you understand precisely what the broker will and won't do, and what you'll pay for the given service level.

Regardless of which kind of broker you use, don't sign an unnecessarily long listing term (usually, a 90-day agreement is good enough).

True, you want to give the agent a reasonable chance to sell your property.

But you DON'T want to lock yourself into a relationship that just isn't working.

If the home doesn't sell in 90 days, you can always extend the contract if you're satisfied with the broker's efforts.

Write Nena Groskind at housecounsel@bostonherald.com. Although Groskind is a veteran real estate journalist, she is not a lawyer. You should consult an attorney for specific legal advice.

Copyright � 2005 Earl G. Graves, Ltd. All Rights Reserved.