How do you determine the list price?
When you list your home with The Sandy Smith Lakeshore Real Estate Group, you have entered into a partnership. The entire process requires cooperation between Realtor and Owner. The first step in that process is establishing the list price.
To establish fair market value we use current market data to prepare a Competitive Market Analysis. This involves the comparison of the subject property to similar properties that have recently sold and that are currently for sale. Because of the unique characteristics of Lakeshore properties, finding suitable comparable properties can be challenging. The goal is to identify only properties that have a high degree of similarity and transactions which involved informed buyers and sellers that negotiated freely in the open market.
Can I list my property higher than the Competitive Market Analysis?
We understand that along with the emotional attachment you have to your lake home, it’s very likely a large part of your financial portfolio. Our goal is always to get the highest sale price possible for our clients. With that said, your property has a defined market value which is determined by the dollar amount a knowledgeable buyer is willing to pay for a property that has been exposed to the open market for a reasonable amount of time.
What are the risks of over-pricing?
Today’s buyers are more informed on current market values than ever. Overpriced properties end up sitting on the market and can become “market worn.” This creates a sense of caution for buyers concerned there might be something wrong with the property.
If your property does not compare well to similar properties that are priced accurately, you are effectively helping your competition.
By overpricing, you attract the wrong buyer to your property. If your home is listed at an inflated price, the buyers coming to look at it will have inflated expectations.
How will the property be shown to prospective buyers?
All showing appointments are scheduled by our office staff. Showings are handled according to your specific requirements. If an agent from another company within the Multiple Listing Service (MLS) requests a showing, that appointment will also be scheduled through our office staff.
Prior to submitting the property into the MLS, we will place a SentriLock lock-box at the property which will hold a key for the home and all outbuildings. These lock-boxes can only be accessed by members of the Greater Lakes Association of Realtors using a SentriCard or a 1-day access code provided by our office staff. SentriLock lock-boxes record data of the time and date the box was accessed and how long the box was open.
How is showing feedback provided?
On the day the property is shown, we email the showing agent a request for showing feedback. Most of our local agents are very respectful and will
reply in a timely fashion with detailed feedback. This feedback will be conveyed to you either through an email or a phone conversation. Showing feedback provides essential information about how active buyers perceive the property and how the property compares to similar properties the buyers previewed.
What happens when we get an offer?
When a prospective buyer makes an offer, the agent representing them will submit a written “offer to purchase.” This is a legal document, which when signed by both parties (executed) becomes a binding contract.
When an offer is submitted to us, you will be contacted directly by me. I will thoroughly explain the offer so that you are fully aware of all of the terms and conditions. At that point, we will agree to respond in a timely manner, in writing, with 1 of 3 options. We either accept the offer as it was written, submit a counteroffer, or reject the offer.
What are Terms and Conditions?
Written within a Purchase Agreement will be the terms and conditions of the sale. It is important to understand that terms have value. An offer with a higher sale price may not be as valuable as one with a lower sale price and fewer terms. Typical terms within a Purchase Agreement include:
- Purchase Price
- Earnest Money
- Financing terms
- Special Contingencies
- Acceptance Date
- Closing Date
What happens after we execute a Purchase Agreement with a buyer?
Once a Purchase Agreement is signed (executed) by both parties, the process of removing special contingencies begins (contingency phase). Typical contingencies a Purchase Agreement might have include, inspections, the sale of another property and financing but the scope of potential contingencies is limitless. All contingencies must have a “contingency period,” a specific period of time in which they need to be removed from the Purchase Agreement. Once all of the contingencies have been removed the transaction is prepared to close.
What does the seller have to do at closing?
At this point, the transaction is coming down the home stretch and we have taken on a new partner, the seller’s title company.
- Schedule a date and time for closing.
- Coordinate and package all necessary documents and deliver them to the title company.
- Assist in coordinating the appraisal.
- Work with the buyer’s lender to assure financing is secured.
- Be present at the closing.
- Update the Abstract of Title Arrange for Title Insurance or Title Opinion.
- Work with the buyer’s title company to obtain necessary documents.
- Prepare the deed and transfer documents.
- Confirm any/all special assessments are paid.
- Pro-rate all real estate taxes.
- Arrange the pay-off on your mortgage.
- Record all necessary documents.
- Remove all personal property that is not included in the transaction and have the home professionally cleaned prior to closing.
- Do not remove anything that is attached or fastened to the home.
- Once an item is fastened to the home it becomes “Real Estate” and must be included in the sale.
- Discontinue telephone, cable TV and security system service.
- Sign the Closing Statement
- Sign the Deed
- Collect your proceeds.