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Offers of Compensation: What You Need to Know

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As a home seller, you have a wide range of choices when deciding how to market your property. This includes whether you’d like to offer—or authorize your REALTOR® to offer—compensation to a buyer’s agent as a way to attract potential buyers. Here’s what you need to know as you consider your options related to offering compensation.

What is an offer of compensation and why make one?

An offer of compensation is when you—the seller—or your REALTOR® compensate another agent for bringing a buyer to successfully close the transaction. Offers of compensation help reduce out-of-pocket costs for prospective buyers, which in turn may bring more potential buyers for the transaction. These costs can be especially significant for first-time buyers, lower- to middle-income buyers or those from underserved communities.

Are offers of compensation mandatory?

No. It is up to you to determine if making an offer of compensation is the best approach for selling your property. REALTORS® are here to help answer your questions and guide you to make a decision that works for you.

As a seller, does my REALTOR® need my permission to offer compensation to a buyer’s agent?

Yes. Your REALTOR® can only offer compensation or make a payment to a buyer’s agent if they have your written approval and sign-off on the amount.

What types of compensation can I offer?

There are many options available to you as a seller to discuss with your REALTOR®. These could include a flat fee paid directly to the buyer’s agent or allowing your REALTOR® to share a part of their compensation with the buyer’s agent. Beyond compensation, you could also consider offering a buyer certain concessions, such as covering closing costs, to make the total home purchase more affordable for them.

How will a buyer’s agent know if there is an offer of compensation?

Offers of compensation can be advertised in many ways. If you approve an offer of compensation, it can be shared through common marketing methods such as flyers, signs, brokerage websites, social media posts or simply through a phone call or email. Offers of compensation cannot be listed on Multiple Listing Services (MLSs), online platforms that compile home listings from many different sources.

Do I have to advertise an offer of compensation if I decide to make one?

No, it’s up to you to decide. Advertising can help get the word out to bring more buyers to the table, but you can also choose not to advertise and instead negotiate the offer in a purchase agreement.

What are concessions?

A seller concession is different than an offer of compensation. It is when a seller covers certain costs associated with purchasing a home for the buyer. Concessions can make home ownership more accessible for buyers by reducing upfront expenses. These can cover things like some transaction costs or property repairs.

How do I know what option is best for me?

When you work with a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to weigh your options, answer questions and develop a strategy you are confident in.

7 Steps to Prepare Your Home to Sell

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Selling your home is not always a straightforward process. Sometimes, it can be complex and time-consuming, but understanding the steps to successfully sell a home will ease your stress. By knowing how to get your house selling ready, you can make sure that your home is selling at the price you want and ensure the process go smoothly. Here are some tips for getting your home ready to sell:   

Clean & Declutter

Before you start showing your home to potential buyers, it is important to give it a thorough cleaning and declutter as much as possible. Remove any personal items and excess clutter, and consider hiring a professional cleaning service to give your home a fresh, clean look.  

Make Necessary Repairs

Fix any broken or damaged items in your home, such as leaky faucets, broken windows or chipped paint. These small repairs can go a long way in making your home more appealing to potential buyers and increasing its value.  

Stage Your Home

Staging your home means making it look attractive and inviting to potential buyers. This can include rearranging furniture, adding decorations and making sure the home is well-lit and welcoming. Staging your home can help potential buyers visualize themselves living in the space. Consider hiring a professional stager or using your furniture and décor to create a cohesive and inviting look.  

Price It Right

Setting the right price for your home is crucial to selling it. When setting a price for your home, it is important to be realistic. You should consider factors such as the condition of your home, its location and comparable sales in the area. Research comparable homes in your area to get a sense of what your home is worth. Your REALTOR® will help you along this process, make suggestions and ensure you’re set up for success!

Market Your Home

In today’s market, it is important to use a variety of marketing strategies to get your home noticed. This can include listing your home on websites, as well as utilizing social media and other online platforms to highlight your home.  Also, your REALTOR® will have an arsenal of time-tested ways to ensure your house is being marketed to the right people, so make sure to utilize their skills.

Be Prepared for Showings

When potential buyers come to see your home, make sure it is ready for them. This means keeping it clean and tidy, turning on all the lights and having a good supply of fresh towels and linens for any potential buyers who may want to see the bathrooms.  

Be Flexible

The process of selling a home can be unpredictable, and you may need to be flexible to close the deal. This may mean being open to negotiations, making repairs or updates at the request of the buyer or adjusting your selling timeline.  

By following these tips, you can increase the appeal of your home and make it more attractive to potential buyers. Remember to be patient and keep an open mind as you navigate the process of selling your home.

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Listing Agent: The Key to Finding the Right Person

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Home is where the heart is, and if you’re ready to sell your current home, you want to make sure you’re putting your trust in the right hands. Your listing agent will work with you to price and market your home, negotiate with buyers and help with closing the deal.

Here’s how to find an expert that works with you and your needs.

Know Your Timeframe

Have a listing date in mind? Backtrack six to eight weeks before that time, and aim to hire a listing agent around that time.

This will give you both the time to prepare to go live with your listing. For you, that might mean making repairs or upgrades. For your agent, that means working on creating a polished listing, ideas for marketing the house, pricing and more.

Begin Your Search

As you approach that ideal time to hire a listing agent, start researching professionals.

You can search for a Chicago REALTOR® here, or ask friends and family for recommendations. Remember, it doesn’t hurt to shop around. You’ll be working side by side with your agent, so make sure you find someone your trust to do the job.

Conduct Interviews

Take the recommendations and research you’ve done to set up interviews with agents. Here are some suggested questions that will help you determine if an agent is the right fit for you:

  • How long have you been in the real estate business?
  • What’s the price range of the homes you typically sell?
  • What is your fee?
  • How do you market homes?
  • How long are your homes usually on the market?
  • What’s your communication style?

During these interviews, make sure the agents understand your goals and meet the expertise qualifications or personality you’re looking for. If you follow those two desires, you’ll be sure to find a listing agent that works for you!

Make Your Open House A Success

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So you’re selling your house, and now it’s time to show it off to buyers! Use these tips, and the help of your REALTOR®, to make a great first impression during your open house.

Make Your Home Open House Ready

Make sure your home is picture-perfect by the time your open house comes around. Here are some things we recommend you take the time to do:

  • Clean Up Clutter: Tuck away additional clutter within your home, including clothes, cleaning supplies, toys and more. If you don’t have a good location to put it all, consider renting a storage unit.
  • Make Your House Spotless: Deep clean every inch of your home, so your windows are spotless and there are no dust bunnies in sight. Don’t have the time? Hire a cleaning service. Your REALTOR® likely has some recommendations for you.
  • Consider Cosmetic Repairs: This isn’t the time to make any big changes, but if you spot chipped paint or burnt out lightbulbs, making those repairs will go a long way in making your house look great!
  • Remove Any Personal Items: When a potential buyer walks into a home, they want to be able to picture themselves in it. Seeing photos of your family and other personal items can hinder that experience, so put them away for the time being. Also, put any valuables in a secure location, just in case.

Get The Word Out

Although your REALTOR® will do a lot of heavy lifting on this front, it doesn’t hurt to give them a hand. Add posts to your social media platforms, such as neighborhood groups, if you’re part of them, to get the word out. Or, if you frequent a local coffee shop or popular store with a bulletin board, don’t be afraid to go “old school” with a flyer.

Also, work with your REALTOR® on a few different aspects of the open house, such as:

  • Setting up yard signs to announce the open house. If you live in a winding neighborhood or subdivision, put signs around the neighborhood to direct visitors to the right location.
  • Add the open house information to your online listing for additional traffic.
  • Decide on the best time to host the event. Sundays are typically the most popular, and other open houses may take place between 1:00 PM to 3:00 PM. Consider starting earlier, around noon, or keep yours open later, until 4:00 PM or 5:00 PM, so you’re not competing for visitors.

Let Your REALTOR® Take the Reins

When the day comes, step back and let your REALTOR® work their magic. Make sure to leave your house (having the seller lurking around isn’t the best look), but keep your phone on you in case your REALTOR® has questions.

Afterward, debrief with them about any questions that came up or comments that were made, and discuss how to address them to get your home sold!

Comparable Sale: What It Is & Why It Matters

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The burning question for anyone getting ready to sell their home is: “How much can I sell for?” First, it’s important to understand what a comparable sales price is and why it matters is valuable, which we’ve broken down for you below.

What Is A Good Comparable Sale Price:

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Why Does It Matter?

Evaluating the differences and similarities of surrounding properties on the market will give you the best idea of the current estimated value of your home. This is also where your REALTORS’® expertise will come into play, as they’ve likely seen many homes in your neighborhood and know about comparable sales in your area, making them your greatest asset in the listing process to help adjust your price efficiently and effectively.

4 Ways to Price Your Home Like A Pro

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Your home is a major investment in time, money and memories, so understandably, selling it can be an emotional process.

It’s important to lean on your REALTOR® for guidance. After all, this person is your go-to industry expert who is invested in helping you sell on your timeline and for the best possible ROI.

Still nervous about the pricing conversation? We’ve created four pro tips to help you through this process.

1. Higher Isn’t Always Better

Be strategic in your pricing and don’t list too high – that could scare away potential offers!

The longer your house sits on the market, the less likely you are to get your asking price. Buyers are more likely to negotiate a deal on a house that’s been listed for a significant stretch of time. A price-to-sell strategy will give you leverage, options and exposure to potential buyers.

2. Know The Local Market

How did similar homes in your neighborhood sell? These comparables (also called “comps”) play a big role in your own home’s price.

Your REALTOR® should run the average sale price for homes in your area. When selecting comps, REALTORS® generally filter properties within a one-mile radius of your home that sold in the past 90 days. Comparable homes will be similar in age, location, square footage and number of bedrooms/bathrooms.

Based on these results, they’ll pinpoint the differences and assess why price reductions did or didn’t happen. This nuanced understanding is invaluable, particularly when measuring the unique aspects of your home.

3. Upgrades Don’t Always Mean More Money

Buyers want a home they can:

  1. Picture themselves in, and;
  2. Easily make their own.

Help spark their imagination with neutral updates. Upgrades based on specific taste can sometimes devalue a home based on personal buyer taste and preference.

For example, just because you spent $40,000 to update your kitchen doesn’t mean you get to add an extra $40,000 to the listing price. Research from the National Association of REALTORS® states you might recoup 59% of your costs, based on the national average of kitchen upgrades.

Talk to your REALTOR® about what you can do, or have done, that positively affects your home value and listing price.

4. Keep Your Emotions in Check

Don’t let pride, sentiment and nostalgia mislead you!

According to the National Association of REALTORS®, the wrong price can drastically delay your sale. That “fresh factor” tends to wane after just 30 days! Therefore, it’s important to listen to your REALTOR® about your pricing strategy.

Their unbiased perspective combined with knowledge of the market and real estate inventory will help you walk away from the closing table feeling confident in your transaction.

ramp up your curbside appeal

How to Ramp Up Your Curbside Appeal

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Are you thinking of putting your home on the market? If so, ask yourself two questions from a buyer’s perspective. First: what would stop you from making an offer? Second: what makes this home stand out from a curbside view?

There are many important steps to preparing your home to sell. Curbside appeal projects provide sellers like you with the highest return on investment. Therefore, we recommend focusing on these 5 projects to ramp up those beautiful, exterior home aesthetics!

Update Your Curb Appeal

The National Association of REALTORS® “Remodeling Impact Report” suggests that landscaping projects often bring in higher sales prices. Homes that improved their landscaping or added a deck or patio, saw returns of investments above 100%.

We recommend starting with:

  • Applying a fresh coat of paint to the front door.
  • Trimming your bushes and other greenery.
  • Re-mulching those garden beds.
  • Replacing worn-down stone walkways and pathways.
  • Removing any dead plants or trees.
  • Aerating the lawn (if you have one).
  • Pressure washing the exterior of your home, driveway and sidewalk.

In the end, any of these curbside appeal upgrades will help attract the eye of your home’s future residents!