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The following is a free guide for understanding how to sell your home with or without a licensed real estate agent in Mississippi. You will learn "secrets" of the process, questions to ask, and realistic expectations. This guide is not a replacement for a licensed real esate agent.
Step 1: For Sale By Owner vs Realor
Whether you will proceed with a listing agent / realtor is up to you. The alternative to hiring a listing agent is called For Sell By Owner (FSBO).
Should you use a realtor?
To help you decide, ask yourself these questions:
- Are you prepared to be held liable for not knowing what you need to know when selling your property?
- Are you familiar with formalities at the federal, state, city, village, and township levels?
- Are you an expert negotiator?
- Are you familiar with the sales process of listing your house?
- Do you have all the documents required by law to sell your house?
- Are you prepared to meet the demands of your time by buyers and deal with family, school, and work?
Mississippi Realtors have real experience. Mississippi Realtors go through the process of buying and selling homes each day. Mississippi Realtors understand the jargon and acronyms used in the Mississippi industry that could easily confuse anyone outside of the industry. Realtors day-to-day experience allow them to carefully consider case-by-case circumstances when recommending the best price for your home or negotiating the best deal with the buyer.
Mississippi Realtors are professionally trained and licensed. Licensed Mississippi real estate salespersons belong to the National Association of Realtors®. Mississippi Realtors adhere to a strict code of ethics and are required to promote their clients’ interests while treating all parties honestly. Your realtor will look out for your best financial interests and do everything in their power to protect you.
Mississippi Realtors have access to information. A realtor will have the most up-to-date records of recent sales with comparable houses to yours. This information will allow for a better estimate of what to price your house and how far to push the sale to get the best investment. Realtors also have all the information on the competing listings in your area so that you can try to get the upper hand in attracting potential buyers.
"But Zillow said my Mississippi house was worth $______". Zillow and other services are good for getting a rough idea regarding the price to set for your home. These services, however, cannot substitute the information and tools available to a licensed realtor. The information from Zillow and other services can be misleading, inaccurate, or completely wrong. False hopes and expectations from Zillow estimates alone can lead to significant tension, distrust, and frustration between you, your realtor, and buyer negotiations.
Mississippi Realtors are marketers. Nobody will market your home as aggressively and professionally as a Realtor. Realtors listen and work with buyers in the local and surrounding areas. A realtor wants to make your home look appealing to these buyers. As a result, they'll know how to spotlight your home effectively. A realtor might use a combination of staging furniture, photographers, videographers, and custom websites. Realtors promote your home directly to other agents in their team or office. Realtors schedule meetings with agents in the area to provide qualified leads.
Mississippi Realtors are typically paid by commission. It's standard to pay a 6 percent commission of the total sale price. This amount usually gets divided up several times between buyers agent, sellers agent, buyers broker, sellers broker, advertising fees, gas, publications, showings, staging furniture, etc. The sad truth is, the realtor you work with might only walk away with a small fraction of that 6 percent.
Should you ever try to negotiate a lower commission? Let's do the math. Bob, your agent, lists your house in Mississippi for $150,000. Bob works vigorously for 8 weeks to sell your home (guide, market, list, negiotiate, show, open house, close, and more). Bob works for Jack's team. This means that Jack's team is your true representative (listing agent) and will receive the commission from the sale. Jack's team helps provide Bob leads, guidance, staging, marketing, and other types of assistance.
Your Mississippi house is sold. The Buyer used their own agent Sue. Bob (technically Jack's team) and Sue will split the 6 percent commission evenly (3 percent each). Bob and Jack's broker company XYZ Realtors takes 30 percent of the 3 percent. Jack's team takes the remaining 70 percent of the 3 percent. This 70 percent is again divided—Bob will receive 30 percent of the 70 percent. Bob must also pay for $200 worth of additional overhead. Minus $200, Bob will receive 30 percent of the 70 percent of the 3 percent of $150,000. The final result of Bob's hard work for 8 weeks—0.63 percent of the total sale or $745. A part-time employee making minimum wage ($7.25 per hour) for 8 weeks would make around $2,320.00.
Questions to Ask a Realtor When Selling
You should be comfortable with your agent. It's important to interview your agent because you could be going for a roller coaster ride together in order to close.
- How long have they been practicing Real Estate?
- How many listings do they currently have? Find them online during the interview.
- How long have the listings been on the market?
- What are the up front fees including commission?
- What kind of improvements would they suggest to improve the chances of selling the house?
- What is their marketing approach?
- What title company are they recommending?
Step 2: Prepare your House for Sell
How to determine what my house should sell for.
- The listing agent should have at least 3 sold properties within the past 3 months to show fair market value.
- The Realtor should have at least 3 pending properties for sale.
- The Realtor should provide at listing 3 active for sale properties.
Set a Listing Price
Base this decision on your urgency, pay-off mortgage, commissions, closing costs, and your profit.
Paper Work
- Go through the paperwork
- Agree on commission
- Have them provide a Seller’s Net Sheet
- Agree on listing timeframe
- Sign the paperwork and exclusive listing contract
Step 3: Market Your Property
Improvements
Look over the improvements your Realtor recommended and do all the improvements you’re willing to do without stretching your wallet.
Pre-Listing Marketing meeting with your Realtor
- Set up a time and date to meet with your Realtor for a final walk through prior to listing the property on the Multiple Listing Service.
- During your final walk through, confirm a date and time for videos and photoshoot of the property
Review Marketing Game Plan
- Prior to Listing the property on the Multiple Listing Service, review any and all pictures and videos.
Re-evaluate the Market
- Conference with your Realtor, confirm your list price, and evaluate the market one last time.
- Confirm your pricing strategy
- Give the green light and list your property on market.
Step 4: Follow up Post Listing
Conference call
- Have an agreed day and time to conference call with your Realtor once a week
- After every showing, require a conference call the very same day
Open Houses
- Require feedback on any and all open houses
- Require a conference call after every open house
Marketing
- Conference call with your Realtor and have them show the marketing of your property
- Conference call once a week regarding the marketing to find out the efficacy of their marketing
Offers
- Require to conference call on every offer
- Require to conference call when negotiating any and all offers
Step 5: Accepting the Offer
Require to have your Realtor write down what is expected of the Seller after accepting an offer. The following is a possible list of items that are important such as dates, contingencies, etc.
- What is the final due date for Buyers to provided evidence of mortgage application?
- What is the final due date for Buyers earnest money deposit to be placed in escrow?
- What is the final due date for any and all home inspections?
- What is the final due date for both Seller’s and Buyer’s attorney to review any and all documents pertaining to the sale of the property?
- What is the final due date for the Seller to provide any and all documents to the Buyers and or the Buyer’s attorney?
- What is the final due date for the pre-title from the title company?
- What is the final due date for Buyer’s clear to close from their lender?
- What is the final due date for the final walk through of the Buyers?
- What is the final due date to close?
Step 6: Closing on your house
- Confirm the final read on all municipalities such as water, gas, electric and etc.
- Confirm all contingencies have been removed and are in writing by all parties
- Confirm Buyer has Clear to Close from Lender, and their funds have been wired to the title company
- Review any and all closing documents provided by the title company
- Review any and all documents regarding payouts such as mortgage, property taxes, transfer tax, commissions, escrows, and etc.
- Go to the title company and sign all the closing documents
- Get a your check and go to your bank and deposit it the same day
CONGRATS!