We do not buy houses. We're a company in MN and only represent buyers!
We do not buy houses. We're a small company in MN and only represent buyers!
Home selling tips
5 Cost-Effective Sale Tips
People who are looking to buy a new home might have to go through the process of selling the home they currently live in in order to buy a house.
Selling one’s home is often a contingency before putting an offer down on another home. Essentially, if a home is not sold on the date specified in the contract for the new home, then that person looking to buy a new home is able to opt-out of that contract, even if they have signed it. This usually happens because, without the payment from selling their first home, most cannot afford the down payment for their new home. In these cases, it's important for home buyers to sell their current home before they begin the process of buying another one. There are plenty of things to look out for when selling your home to protect you financially and legally.
If you need to sell your home, there are tips to follow to ensure you’re protected:
Seek legal advice from a lawyer, not a real estate agent
Be aware of business affiliations that could affect your agent’s decisions
Be careful of dual agencies
Pay attention to hidden fees or other expenses
Ensure that your contract is fair to you as the seller
FOR LEGAL ADVICE, LOOK TO YOUR LAWYER
By and large, home buyers and real estate agents have extensive knowledge of the law, especially the legalities concerning buying and selling a home. Your agent will have an advanced understanding of what to expect on the legal side of the home sale and can provide tips and advice. However, when it comes to legal advice, seek out a lawyer.
There are plenty of legalities that are to be considered when dealing with real estate — any contract, agreement, or document detailing the conditions of the sale are considered legal documents. This is especially important if there are clauses in the contract that you don’t understand or agree with, especially since you don’t have to accept all of the terms in the clause.
Arbitration, which is settling disputes outside of court, is also something to consider when conflicts arise, and this route may be suggested by your agent. Small claims court can sometimes be less costly than arbitrarily settling discord, so talk to your lawyer before you make a decision.
KNOW WHO IS THINKING OF YOUR BEST INTERESTS
Your real estate agent is there to help you, but that doesn’t always mean that they are exclusively focused on helping you. When following your agent’s referral to real estate services, it’s important to be aware of professional affiliations they may have with the services they are referring you to.
This isn’t to be mistaken with distrusting your real estate agent, or even to ignore their referrals — they are there to assist you through the difficult and sometimes complicated process of buying or selling a home. What you should do with your agent’s advice is to do your own research of their referrals, draw conclusions for yourself, and ensure that you are making the final decision, not the agent.
Watch Out For Dual Agencies
Dual agency allows for real estate agents to pocket twice the commission, which can sometimes put you as the seller or the buyer in a compromising situation. Agents in dual agencies will be more likely to sell to a buyer represented by that agency, which means they might not show your home to every potential buyer.
When your agent works for a dual agency and they only target buyers within their agency, this creates less competition for your home, and it may sell for a lower price than you originally wanted.
Know What You’re Paying For, And Why
Pay close attention to commissions and hidden fees that will take the profit out of your sale. The biggest thing to keep in mind is that commission and fees are negotiable, so when you come up with a fair rate, it’s important to stick to it. This is especially crucial to do when a real estate agent hands you a contract that may have inflated commission numbers of 8-10% (as discussed in an earlier section, you don’t have to accept every clause in a contract presented to you). These could just be inflated prices for the intention of leaving room to negotiate the broker’s commission.
Your co-op fee should be outlined in the contract as it is how the commission is split between the two parties. It’s important to note that when splitting commissions, it’s a good idea to give a fairer percentage to the agent for incentives to show your home to more potential buyers.
Make Your Contract Fair For You
It can be stressful when your agent presents you with a stack of contracts, but the good thing is that you don’t have to accept the terms outlined in these documents. It’s important to review each of the clauses outlined so you can negotiate the terms of your agreement with your agent, such as how the commission (also known as a co-op fee) will be split, how long your contract period will be, and ensuring a “satisfaction guarantee” clause. And with written notice, you, as the seller, can cancel the contract at any time.
Selling your home can be difficult, stressful, and confusing. It can also be one of the most exciting and prosperous things you can do to better your financial future. If you are in the Twin Cities area and looking for expert advice on how to buy or sell your home, contact us today!