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A Little Homework
Before the listing appointment, both the home seller and the listing Sales Representative have some homework to do. While the home seller collects a list of documents requested by the Sales Representative, the listing Sales Representative 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 listing Sales Representative will want to inspect the entire home and yard to become familiar with its special features and exact floor plan. You have probably enjoyed living in your home and have been pleased with its many unique features. Your listing Sales Representative 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 listing Sales Representative why yours is special, from any home remodeling to afternoon winter sunshine.
Property Profile Folder
To enable the listing Sales Representative to prepare a ‘Highlight Sheet’ on the property, the home seller needs to provide a number of documents and information specific to the location and jurisdiction. This ‘Highlight Sheet’ is often left in the home for the convenience of prospective selling Sales Representatives. Because the list is long, you can understand why it's best to collect the papers before the listing appointment. These materials may include:
Pay-Off Notice
A letter signed by the home seller and mailed to the lender by the listing broker to notify the lender of the intention to pay off the mortgage in order to minimize prepayment of interest penalties to the seller. (Home seller should provide the broker with the lender's address, loan balance, assumability, years remaining on present mortgage, PITI. and the interest rate, if possible.)
Septic and Well Inspection
If property is on septic/well, current inspections by local health authorities are required while the home is occupied. The listing Sales Representative will usually arrange for inspection after the contract is approved.
Order Lender Appraisal
Lenders usually require an appraisal to assure that the property is adequate collateral for a loan. Appraisal may be ordered before (paid by seller), but is more often done after an "offer to purchase” is accepted (paid by buyer).
Assessments/Easements
The listing Sales Representative will ask the home seller if any tax assessments or easements exist on the property that must be paid or included in the purchase contract and passed on with the land when sold.
Property Taxes/Condominium Fees
The home seller provides a record of property tax or condominium fee payments which the buyer will reimburse on a prorate share to home seller at settlement.
Inspections
Many lenders of new mortgages may require an inspection certificate that shows the house is free of major defects.
The home seller should also provide a record of the past 12 months’ utility bills, including gas, electric, sewer, water, and trash where applicable. Most buyers will want to know the history of utility costs.
Helpful Documents
If possible, the home seller should provide the listing Sales Representative with the deed, house location survey, condominium bylaws or home owners association documents, subdivision map, house floor plan, previous title search abstracts, legal description of property (subdivision, section and lot), warranties on major systems or Home Owners Warranty, if still in effect, and copy of home owners insurance policy for endorsement in purchase contract.
What Conveys?
In anticipation of a buyer's offer, the home seller must be ready to supply the listing Sales Representative 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, remaining heating oil, firewood, washer, dryer, refrigerator, stove, microwave, disposal, swimming pool chemicals, awnings, storm doors and windows, screens, blinds, shutters, window air conditioner, etc. Home seller should tag or remove items which 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.
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