The Secret to Selling your Home: Part One

Post written by Kim Cedarstrom, REALTOR®, Roche Realty Group, Inc.

Thinking about selling your home? There is a secret that you need to know that will maximize your chances of selling and will net you as high a return as is possible in the current market. Actually there are multiple parts to the secret. I’ll break this down into three parts. In this installment I’ll cover step one: preparation. Preparation includes determining how and where you will present your property for sale, how you will be represented, and what you will pay for that service.

There is no law that prevents you from selling your own property. There are folks out there who try to sell “For Sale By Owner” all the time. Back when the real estate market was booming, this had some possibility of success. Today this approach is very unlikely to work. Not only has the market turned from seller driven to buyer driven, it has changed its very nature. The real estate market is driven by the internet these days. Currently, we list our properties for sale on over 32 web sites, as well as on our own in-house site. If your property is not exposed to as broad a sweep of the internet as possible, you have very little chance of selling today. There are services that will list your property on MLS as “entry only” for a reduced commission (usually 2.5%). This approach does give some exposure, but it’s minimal and you are left to fend for yourself in all the other aspects of the transaction. By the time you hire a lawyer to check all details, your gain is minimal and you will be stuck with a lot of work.

SECRET PART ONE—Hire a qualified REALTOR© to represent you. How best to do this? Interview and negotiate. Hiring a REALTOR© is the same as hiring any professional, a lawyer, or accountant, or broker. Remember they will be working for you, not you for them. A qualified REALTOR© will market your property, negotiate the sale, and guide you through the closing. During the interviewing process you will negotiate the proposed selling price, the type of agency the REALTOR© will have, the duration of the listing agreement, and the commission you will pay for his/her services. Be careful. Signing a listing contract locks you into a relationship with that REALTOR© for the term of the listing agreement. You will be under contract to that REALTOR© for the period of time stated. Many REALTORS© will take your listing at an unreasonably high price to secure the listing and then return to you shortly asking for price reductions to bring your property down to what it should have priced at in the beginning. This does two bad things. One: Your property is introduced to the market at price which makes it unattractive and will cause it to languish and become stale. “Start high and negotiate” was a mantra you could get away with in a sellers market, not in the current one. Two: You only get one shot at a first impression, and if that impression is a negative one, it is very hard to overcome.

Commissions are negotiable; they are not set by law. In fact it is improper to advertise commission rates. Over the years the standard commissions have been 10% for raw land, 8% for commercial real estate, and 6% for residential. The rate you pay is agreed to by you and your agent. A word of caution, a lower commission may not mean more money in your pocket. A 1% difference in commission in the selling price of a $200,000 home is $2,000; an amount that is easily made up and exceeded by the negotiating skills of qualified REALTOR©. Also, ask yourself if your agent is working for a reduced commission, is their heart really in getting you as much as possible, or in just getting a quick sale. Put yourself in their shoes.

There are different types of listing agreements as well. Every state has its own rules. Here in New Hampshire there are two variations of Exclusive Listing Agreements- “Exclusive Right to Sell/Lease” and “Exclusive Agency Agreement”. The “Exclusive Right to Sell/Lease” is by far the most common. This agreement basically states what it sound like: you have hired this agency to represent you in the sale of your home and you  agree to pay the commission no matter who presents the buyer for the sale. The Exclusive Agency Agreement allows for you, the seller, to bring a buyer to the sale and pay a reduced commission. Very few REALTORS© (in fact I don’t know of a single one) will enter into Exclusive Agency Agreements today. The way I handle this is if you the seller have a hot prospect, but you want me to handle the transaction, we negotiate the commission on that possible transaction. Remember, everything is a negotiation. The other type of relationship which can occur when your listing agent produces a customer who contacts the listing agent directly (not through another REALTOR©). Your listing agent then will represent both parties—the buyer as well as you the seller. This is called “Dual Agency”. Your listing agent must inform you in writing of this relationship so you will be aware of the situation. This is not generally the case, but may happen.

Listing agreement contract lengths are usually in six month intervals—a minimum of six months, usually a year. It’s a lot of work to list a home for sale, and these things take time to market. Again though, remember, these things are negotiable. Also, be aware that all listing agreements have clauses that extend the duration of the agreement to cover any customers exposed to your property by the listing agent during the time the agreement is in force.. What this does is prevent you from striking up a deal with a customer shown your property by the listing agent with out paying the agent for his or her efforts. Be sure to note this time. Most agreements call for a six month period, some a year. Be apprehensive of any longer time. I’ve seen them for as much as three years. I doubt that length of time is defensible, but save the problems and don’t agree to more than a year. Remember also that you are legally obligated to stay in this agreement for the agreed upon duration. This is when agents who list your property at an unreasonable price just to “tie up” your property will apply pressure to reduce your price to where it should have been from the start. Listing at a market driven price would have precluded this sort of pressure and would probably have your home sold by now! Personally, I never hold by clients to the entire term of the listing contract if they have any reasonable reason to terminate.

Choosing who represents you in the sale of your home is also a matter of chemistry. Do you feel comfortable with the agent? Remember you are hiring me, just like you hire a lawyer or accountant. Is the REALTOR© knowledgeable? Does he or present well? Is he or she familiar with the area, neighborhood, and type of housing e.g. second homes?


In conclusion if you want the secret to successfully listing and selling your property, follow these steps: 

             1. List with a REALTOR© you can trust and work with.

            2. Read thoroughly and understand the documents you sign.

 

     If you have any questions, feel free to contact me Kim Cedarstrom at kcedarstrom@roche.g.corvida.com or on my cell at 603-520-6609.

 

    Next time I’ll deal with the second part of the secret to selling your home. The 800 pound gorilla in the room: SECRET TWO—The right price!

Marketing

How Marketing Real Estate Has Evolved

Back in the year 2000, the world was at the beginning stages of a major …

Read More →
Mount Washington, New Hampshire

New Hampshire — 30 Reasons to Move Here!

With lakes, beaches, mountains, forests, rivers, and the ocean for people who enjoy the outdoors, …

Read More →
New Hampshire Ski Resort

Ski Resorts in New Hampshire Are Ready for Spring Skiing!

It’s been a good week, and mother nature hit our region with a blanket of …

Read More →
Market Trends

Real Estate Market Trends to Follow

I’ve been pulling up some current research on the real estate market on a national, …

Read More →
Carol Mattice

Roche Realty Group Welcomes Carol Mattice

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2022

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently announced …

Read More →
Lisa Lewis

Lisa Lewis Joins Roche Realty Group

Meredith — Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and …

Read More →
Wanda Keenan

Wanda Keenan Joins Roche Realty Group

Meredith— Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, …

Read More →
Land for sale

Buy Land in New Hampshire — They’re Not Making it Anymore

The science is in and the more trees a state has, the happier and less …

Read More →
The Price of Real Estate

Did The Price of Real Estate Increase in Your Town?

Everyone’s always interested to see how their real estate values have performed over the past …

Read More →
Laid off employee in recession

Are We Headed into a Recession?

It’s pretty big news lately; Microsoft, Amazon, and other tech companies have laid off more …

Read More →
Price Reduced

2022 vs. 2021 — Is The Lakes Region’s Frenzied Market Over?

It’s that time of year to provide all of you with an update on real …

Read More →
Roche Realty Meredith

Roche Realty Group Reports a Record of $181 Million in Sales

               Meredith- Frank Roche, President of Roche Realty Group, Inc, …

Read More →
Hillside Inn Winter

12 Things To Get You Through The Winter Months

On December 21st, the winter solstice marked the start of when days will begin to …

Read More →
Housing Inventory Lacking - Lake Winnisquam, NH

Lake Winnisquam, NH’s 4th Largest Lake is in Strong Demand

There are literally 273 lakes, ponds and rivers to enjoy in New Hampshire’s Lakes Region. …

Read More →
Interest Rates

Will We Ever See 1980s Interest Rates?

I was with a Realtor® friend of mine this past week, and we discussed what …

Read More →
Hikers overlooking the lake in New Hampshire, voted "Best State to Live in America" in 2020.

Squam Lake — a Lakes Region Treasure

This past summer, I was invited for lunch and a nice boat ride around Squam …

Read More →
Shop Local New Hampshire

Small Business Saturday in New Hampshire!

We have many things to be thankful for here in New Hampshire, plenty of natural …

Read More →
Couple downsizing to smaller home

Does Downsizing Your Home in Lakes Region Make Sense?

There are many things to consider when planning to sell your home to downsize into …

Read More →
Newfound Lake, New Hampshire

Newfound Lake is the 8th clearest lake in US

Newfound Lake is the 8th clearest lake in the United States New Hampshire has a …

Read More →
Echo Lake New Hampshire

New Hampshire Rankings are Impressive!

New Hampshire has always been fortunate to land in many of the country’s top 10 …

Read More →
Lakeside at Paugus Bay

Impressive New Construction in the Lakes Region

For new construction sales in New Hampshire’s Lakes Region, 2022 has shown very impressive results. …

Read More →
Inflation and housing prices

How Inflation Impacts Lakes Region Housing Prices

I was out with a friend this week on Squam Lake, and we were talking …

Read More →
Picture of author in the Grand Canyon

Is Lake Region Real Estate Drying Up Like The Southwest?

I just returned from a trip to Nevada, Arizona, and Utah this past week. Put …

Read More →
Brook Hill at Meredith: New luxury homes in Meredith, NH

Brisk Sales at Brook Hill in Meredith

Meredith— Sales at Brook Hill, a new luxury townhouse community in Meredith, have been exceptional …

Read More →

Impressive Sales at Lakeside at Paugus Bay

Laconia— Sales at Lakeside at Paugus Bay, a new luxury waterfront condominium community on Lake …

Read More →

Four Decades of Change in Lakes Region Real Estate

We were talking in the office the other day regarding how much the real estate …

Read More →
Supply and demand graph, real estate housing

The driving forces in the demand for NH housing

It is no secret that our country has seen some incredible growth in the real …

Read More →
Holderness, NH

Holderness Bridges Big Squam and Little Squam

Holderness is a lakeside community in the foothills of the white mountains on New Hampshire’s …

Read More →
high inflation

Energy & Ukraine Crisis Compared to 1970s Inflation

Russia’s invasion of Ukraine has emerged as a black swan event rattling the world during …

Read More →
Tilton, NH

Tilton — The Gateway to New Hampshire’s Lakes Region

Tilton, New Hampshire, is considered the gateway to New Hampshire’s beautiful Lakes Region because of …

Read More →
Map of USA: How Real Estate Trends affect the Lakes Region

How Real Estate Trends Affect the Lakes Region

New Hampshire’s Lakes Region & New Hampshire Can you believe a new analysis from Zillow …

Read More →
Laconia NH

Laconia, NH — A City on the Rise

The 17,000 resident “City on the Lakes” is nestled on the shores of three of …

Read More →
Two ice sailing enthusiasts on Lake Winnipesaukee.

Waterfront Sales Activity and Real Estate News

Here’s an update on the waterfront sales activity that we experienced over the past two …

Read More →
Tuftonboro, NH

Tuftonboro — “The Diamond in The Heart of New Hampshire”

Located just west of Wolfeboro, Tuftonboro is called “The Diamond in the Heart of New …

Read More →
Aerial view of Lake Winnisquam and Sanbornton, New Hampshire

The Rural Character of Sanbornton, New Hampshire

Sanbornton embodies all that one expects to find in an old New England town. This …

Read More →
Castle in The Clouds is one of Moultonborough's largest attractions.

Moultonborough’s 66 Miles of Shorefront Captivates

By landmass Moultonborough, NH is the largest lakefront community in the Lakes Region with 59.7 …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2021

Laconia— Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, recently …

Read More →
Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro, NH — The Oldest Summer Resort Town In America

Wolfeboro: a Brief History Nestled in the foothills of the White Mountains and on the …

Read More →

Roche Realty Group Reports Record of $170 Million in Sales

Meredith- Frank Roche, President of Roche Realty Group, Inc, with offices in Meredith and Laconia, has …

Read More →
Meredith NH

Gilford and Meredith NH – How Do They Compare?

There are 25 towns and cities comprising the Lakes Region. This week I thought I …

Read More →

EM Heath, LLC Acquires 1084 Union Ave in Laconia

The future of Ace Hardware EM Heath LLC in Laconia became solidified this past week …

Read More →
Roche Realty Group Sells Landmark Commercial Building in Gilford, NH

Roche Realty Group Sells Landmark Gilford Commercial Building

Gilford- One of the most visible, historic landmark commercial properties in New Hampshire’s Lakes Region …

Read More →
New Commercial Constructioin in Lakes Region

Commercial Sales Increasing in the Lakes Region

Recently I’ve been outlining the sales activity for residential, waterfront, and multi-family apartments in the …

Read More →
Laconia NH Commercial Building Sale

New Owner for 8,447 Sqft. Commercial Building in Laconia

Laconia— Exciting news for the downtown Laconia district. Another substantial commercial building, including approximately 8,447 …

Read More →

Strong Demand for Multi-Family Apartments in NH’s Lakes Region

Last week I was driving through Loudon Road in Concord in the busy heights area, …

Read More →
NH Lake

Area Lakes Show Considerable Appreciation

Below you will find data and insight into what’s happening in sales activity on 8 …

Read More →
inflation in shopping center / grocery store

More Inflation Concerns

More Inflation Concerns I submitted an article a while ago titled “Is Our Current Inflation …

Read More →
Alpenrose Village Retail Center located at Rte. 11 B / Rte. 3 in Weirs Beach, Laconia

Roche Realty Group Sells Alpenrose Village Retail Center

Laconia, NH – Tom Drouin of Roche Realty Group in Meredith represented both the seller and the …

Read More →
As the Real Estate Season Turns

As the Real Estate Season Turns

“There’s hope for buyers on the horizon, with more real estate opportunity to come.” This …

Read More →

Leave a Comment