Value-Rite Appraisals Inc Blog

So you were just introduced by your friend to a real estate agent, and now you can't get rid of him, right? Wrong! Choosing the right person to sell your home is one of the most important steps of selling. Therefore, choose wisely.

At a minimum, speak with 2 or 3 brokers from different agencies. Ask prospective brokers the same list of questions, in order to compare their answers. Find out what they would do to sell your house.

Above all, choose a broker that you feel comfortable with and like. This person will help you make the biggest sale of your life, so find someone you think will do a good job!

The following is a list of questions that may be helpful to ask while speaking with prospective real estate brokers.

1. How many years have you been in business?
2. For how long have you sold houses in this area?
3. How many houses did you sell in the past year?
4. What is your commission?
5. If I were to work with you, how would you market my house?
6. Will you organize meetings with potential buyers and will you coordinate them personally?
7. Can you give me names and telephone numbers of other families that have used your services?

1. Make Your Listing Look Great!

Most MLS listings are boring, informative, and don't sell the house. That's because most people leave it up to the real estate broker to create the listing, which is communicating with other brokers. Instead, take charge of your listing. Make sure the pictures are great, not average.

Photoshop the pictures, so there are excellent photos of the front, the kitchen and the most appealing features of the house. If there's a grey sky, wait until there's a blue sky. If there's a dead lawn in the photo, pick up that Photoshop paint brush and make it GREEN.

When a buyer's agent is scanning the MLS with their clients, you've got two seconds to catch their attention and initiate a showing--make a good first impression!

2. Use Lots of Directional Signs

A sign in front of your house is good if you are on a main street, otherwise you have to get traffic by your house. Use dozens of directional signs from the nearest main road to your property. On weekends, tie bunches of balloons to the main sign on the road.

3. Use a Professional Sign in Front

Do not use the cheap signs from Home Depot, particularly the info tube that requires you to roll up your flyer. Invest in a solid metal-framed sign that has an attached flyer holder that makes it easy for people to pull out your flyer.

If the house is vacant, have an arrow with the words "More info" pointing to the house, and put your flyer box on the porch of the home. This will get people peeking into the home, which is what you want.

4. Get a GREAT Flyer

It amazes me how boring and technical most home information flyers are prepared. The lazy real estate broker usually prints the flyer in black and white off the MLS listing computer. Instead, use a full-color flyer with excellent high-resolution photos of the inside.

If you are not a digital camera buff, go on craigslist.org and hire a high school kid to shoot and edit some photos. Sell the (sizzle) features of the house, not the facts.

5. Sell People on the House

Most sellers show houses, and say, in effect, "Ya'll come back now." Let me ask you a question: Is this what car dealers do? Of course not! The cardinal rule of a car salesman is to NEVER let a customer off the lot. Why should selling houses be any different? If you elicit the right information out of the buyer to understand that he is in the decision making mode, push him to make a decision.

Can you remember walking into a car dealer thinking to yourself, "I'm just looking, I have not made up my mind yet"? And then, for some inexplicable reason, you left with a new car! Why? Because that salesman SOLD it to you, he didn't just let you test drive.

Not all buyers are ready to make a decision, but if he's been looking at a few houses for a few weeks, he may be ready, even if he says otherwise. Be ready with a contract and try to get the buyer to leave you a deposit check, even if it is refundable. Get as much commitment as you can. Instead of showing the property, SELL it

1. Verify the outstanding balance due on the note and the actual repayment terms of the note. I cannot stress enough that you MUST review the actual documents that were executed!
   
   

2. Verify with the seller of the note (the Assignor) the interest paid through date (or last paid date)
   
   

3. Verify the next payment due date.
   
   

4. Ascertain that the mortgage (or trust deed) is an insurable FIRST lien position loan (assuming you are buying a 1st lien). This is where a review of the existing mortgagee/lenders title insurance policy comes into play. Such a loan title insurance policy was probably issued when the loan was originated.
   
   You also want to establish the status of the property taxes, whether they are current or delinquent, and any impound escrow funds that might be held and be transferred to you for such payment as taxes and fire hazard insurance premiums.
   
   

5. Confirm the value of the collateral property that secures the note (that is today's fair market value). You can do your own evaluation, or have an Appraisal done, this can be a formal drive-by, exterior only appraisal, etc.
   
   

6. Get the actual mortgage (or trust deed) security instrument assigned over to you or your entity. The assignment, once executed and recorded, will accomplish this and transfer all rights, title, and interest in the instrument to you; the assignee.
   
   

7. Have the original promissory note instrument endorsed over to you or your entity (making sure the assignment of the security instrument and endorsement of the note match one another). The endorsement can take place right on the actual original promissory note instrument or via a separate note allonge (an attached endorsement).
   
   

8. Have physical possession of the original promissory note instrument given to you. This is the negotiable instrument you are purchasing and whose rights you will be able to enforce for non-payment of the debt.
   
   

9. You may want to obtain an estoppel affidavit from the Assignor. They will affirm for you the actual balance and terms of the note and might be useful in a later dispute with the debtor.
   
   

10. Obtain notification letters to both the note payor and fire hazard insurance agent notifying them of the transfer of the note account. (These are often referred to as so called "goodbye," "welcome," and change of loss payee letters).
    
    

It would be wise to further consult with your own attorney to make sure that what you are purchasing is what you bargained for. Once you own the actual debt instrument (the note) there are a number of options available for you to pursue in an attempt to collect or get the note instrument performing.