Selling A Home in New York City
We know that selling your home is one of the single most important financial decisions you will make in your lifetime. For many it is an extremely emotional and personal decision as well. I have created this guide to help you along the way. Here are the steps you should follow:
1. Select a broker
When hiring a real estate broker to sell your home, you should do your homework first. Think of it as a job interview and you are the boss. You’ll be rewarding your broker with a big payday, so be certain that you have chosen the right person to represent you. Be sure to interview different agents and firms. Here are a few suggestions of what you will need to know or what you may choose to ask:
Find out about the firm you are choosing
- How long has it been around?
- How many listings does this firm represent?
- What makes this firm different or stand out from all the rest?
Question the firm itself
- What is the current state of the market?
- How does that affect my property? Make sure you get statistics, not opinions.
- Is it a buyer’s market or a seller’s market?
- What is the inventory?
- Has it changed over the last year?
- How does this change affect my affairs?
- What’s the future outlook?
- Why is now a good time to sell?
- Why should I work with you?
- What is your history?
- Can you differentiate yourself from other competitors?
- Do you take weekends off?
- What do you do when you have a scheduling conflict?
- How will you reach them?
- What will my personal marketing plan look like?
- How will you price my home?
- Can you give me confidence that you have done a comparable market analysis and show me the results to defend them?
2. Sign an exclusive agreement
An exclusive agreement is a contract whereby you, the owner of a property grants a single broker the right to market the property for sale. The length of time for a typical agreement is 3 to 6 months.
3. Market analysis and pricing strategy
should provide you with a comparative market analysis (CMA) which consists of closed and pending sales and properties currently on the market. Based on this, an agent will give you their opinion of the fair market value of your property and suggest a selling price. Once you and the agent agree upon a selling price, your property will be placed on the market. Since pricing is one of the most critical success factors in selling a property, your agent must continue to monitor the process and make adjustments if necessary. The importance of Proper Pricing Market Activity vs. Time Proper pricing is most important in the early stages of marketing a property. Statistics show that if properly priced an offer should be presented within the first twelve showings.
4. Co-broker support
Your property will immediately be co-brokered to all New York real estate firms and their agents. A co-broke is a term used when a broker shares their listing to the brokerage community. The commission that is being paid by you will now be split evenly between your broker and the firm that provides the buyer of the property.
5. Market your property
Worldwide Coverage through the internet
Your property should appear on your agent’s firms’ internet website with a description, color photos and a floor plan. These websites provide the viewer with an opportunity to identify your listing and a contact me for further information or a showing.
Property Fact Sheet
Your agent should prepare and distribute a fact sheet containing color photos, floor plan and the important features of your apartment and building.
Weekly Sales Meetings
Your agent should promote your property to brokers at their weekly sales meetings.
A mailing should go out to the selected buildings to announce your apartment on the market.
Your agent should conduct broker and public open houses with you and the building management’s permission.
Your agent should arrange all appointments for showings to fit your schedule and should be present at each one to acquaint buyers with the amenities of your apartment and building.
TAll buyers should be pre-qualified to minimize traffic through your apartment and your agent should fully qualify each buyer that submits an offer.
While executing the marketing plan your agent should be in regular communication with you to provide feedback to keep you apprised of the up-tothe minute market conditions. This will allow you and your agent to fine tune the marketing plan.
8.Receiving an offer and negotiating
All offers are made orally in New York City. Your agent has the fiduciary responsibility to present you with each offer that is made on your apartment. Once an offer is made you and your agent will discuss the validity of the offer. As the seller, you may counter, through your agent, the potential buyers offer. This will begin the negotiation process which will eventually lead to a meeting of the minds. At this point, price and terms are agreed upon.
9.Preparing the contract of sale
A real estate attorney is required for all property transactions in New York City. Your attorney is responsible for the preparation of a contract of sale. At this time, the buyer’s attorney will begin his/her due diligence. After the buyer’s attorney concludes his due diligence, the contract is then signed by the purchaser and a down payment is required. This money will be held in your attorney’s escrow account until the closing. You, as the seller can still entertain other offers until the contract is counter-signed and signed and received by your attorney.
10. Purchase application / board package
Your agent should work with the buyer’s agent to ensure that the best possible board package is prepared and submitted to the managing agent for review. The managing agent will inspect the package to ensure it is complete. The package will then be forwarded to the Board of Director’s of the Coop. After the Board reviews the package, they will decide if they would like to meet the potential purchaser. Condominiums the owner dictates the process, if the owner approves, in most cases the managing agent and board follow suit.
11. Receive approval
The managing agent will generally alert your broker whether a potential purchaser has passed the board.
Managing agents generally set the date for closing, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times. Your agent should attend the closing to ensure a smooth transition for buyer.