Hawaii Real Estate : Seller

SELLER FREQUENTLY ASKED QUESTIONS

Why should I use a real estate agent to sell my property? Would it be easier and more profitable to sell it myself?
You may have some luck in selling your own property in today's market, however, a real estate agent is there to walk you through the ENTIRE process of selling your house and to make sure that every deadline is met! It isn't as simple as putting a FOR SALE sign on your lawn and accepting the top dollar offer. You should ask your agent for their past history in selling homes, their marketing plans, whether they can help you get the best price for your house and spend the least amount of time worrying about it! Having a real estate agent who has access to a MLS (Multiple Listing Service) system will help advertise your house to other agents and give you the most updated and comprehensive information regarding the real estate market. The real estate agent should coordinate showings, open houses and advertising on the Internet or through print. There are may documents, forms and deadlines that must be completed on time or you may be in financial and legal trouble. A typical transaction will also involve other businesses, such as termite inspectors, appraisers, home inspectors, lenders, escrow and title companies and other real estate agencies. A real estate transaction can be a very stressful and emotional situation for all parties. A good agent will help you to meet all deadlines and coordinate with businesses to help relieve some of that stress.

How do I determine a price for my house?
Your real estate agent will assist you by providing information regarding the market value of your house and other houses in your neighborhood. Of course you want the top dollar for your house, but also try to decide on a reasonable amount that you feel you would pay if you were the buyer. Are you in a hot market or slow market? How quickly do you want to sell your house? By finding out what you neighbors are selling their homes for and how fast they are being sold, you can determine a price that will attract a potential buyer. Remember, listing the highest price and hoping for a buyer is not necessarily the best way to sell your house.

What is a seller's market? What is a buyer's market? When do I want to sell my property?
A seller's market is when inventory of houses are low and the demand for these houses are high. In a seller's market, the seller may get 4 or 5 offers for the property and has the luxury of choosing which offer they would like to accept. Buyers that are in a seller's market may offer the full asking price with no conditions for improvement and are willing to accept any counter offers made by the seller.

In a buyer's market, the inventory of houses are high, but there is a low demand for these houses. In this market, the seller may have to concede to the demands of the first offer they come across. The seller may have to accept an offer that is lower than the asking price, make improvements before closing or offer something extra to entice any buyers. If you are a seller, you ALWAYS want to sell during a seller's market. You may have no choice in determining when you will sell your property, but getting an idea of market conditions may prepare you for the offers you receive from buyers. Remember: buy low, sell high!

How much should I anticipate for closings costs if I sell my house?
Typically, closing costs are estimated to be around 7% of the sales price.

How much do I have to pay my real estate agent?
Commissions are usually based on a percentage of the sales price and are all negotiable. Remember that there is no price fixing or "standard rate". Your agent will not necessarily get the full amount if a buyer has their own agent since the buyer's agent will usually ask for 50% of the total commission. It's a good idea to ask what services will be provided in return for the commission. You may get a lower commission with another agency but find out what services they will provide before you make a decision.

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