Protect yourself when selling a home

Guest Commentary
November 11, 2007

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Beware of companies offering to buy your home to save you the "hassle" of putting it on the market -- these companies often profit at the seller's expense.

Ask several Realtors in your area for a comparative market analysis, or CMA. These real estate professionals will analyze recent sales and market conditions to provide a realistic assessment of your home's value, and can suggest strategies for the best sale.

Don't allow random passersby into your home unescorted. A serious buyer will work with a real estate professional or should be willing to contact your agent to schedule an appointment. Lock valuables away before an open house.

A Realtor can help evaluate purchase offers and advise you on counteroffers and contract acceptance. It is important to know how contingencies such as appraisal, financing and inspections will affect the transaction, and understand their implications. Remember, a high-price offer is worthless if the buyer never makes it to the settlement table.

Today, home sellers can choose from nearly 80,000 real estate brokerages and more than 1.2 million Realtors with a number of different business models, including full service, fee-for-service and discount brokerage.

A full-service brokerage has agents who handle all aspects of the transaction, including marketing the home, qualifying buyers, negotiating offers and coordinating settlement.

Discount brokers typically offer a reduced package of services at a lower cost to the seller. This may be a good choice for experienced sellers or those who do not need to sell immediately.

The fee-for-service business model offers consumers a variety of services for specific fees. Major facets of the buying or selling transaction, such as competitive market analysis, counseling and negotiations, are separated.

The National Association of Realtors recommends that home sellers interview at least three Realtors to evaluate their qualifications and fit. Examine each professional's level of experience and service, ask for referrals and talk to past clients. Don't make an agent's commission the sole deciding factor -- you wouldn't put your life in the hands of a doctor because he or she had the lower fee; why would you want to do that with your largest financial investment?

John Constant is a broker associate with Sears Real Estate and serves on the board of directors of the Greeley Area Realtor Association.