The first step toward putting your house up for sale is to “list” your property, which simply means placing all the pertinent information relating to your property into a region-wide real-estate database known as the “Multiple Listing Service” (commonly referred to as the MLS). Whereas this service has traditionally been provided by the seller’s real-estate agent, or “listing agent,” the MLS NOW website now takes care of this crucial first step for you, without the need for hiring a traditional listing agent. The net result is that you can avoid the hefty 3% commission typically collected by the listing agent or seller’s agent involved in the transaction. In fact, MLS NOW effectively becomes your listing agent – with the difference that you will now receive the very same service for a low flat fee of $599 – instead of the thousands of dollars you would otherwise pay. 

With several brokers or agents potentially involved in the sale of a given property, it is important to understand “who’s who,” and how such “middlemen” cooperate to sell your house – earning fat commissions for themselves in the process!

The (Traditional) Listing Broker or “Listing Agent”

The listing broker or listing agent is simply the person or company whom the seller hires to represent the seller in the real estate transaction. This representation is enacted through a contract called a “listing agreement.” The listing agent (who is really just a Sales Associate for the real estate firm) works for the listing broker (i.e., the real estate company), and his or her interests may not be identical to those of the seller. In fact, the homeowner’s decision to “list” with a given agent represents an de facto “sale” for the broker already, since the eventual outcome will result in a 3% commission paid by the seller – regardless of what price the home or property ultimately sells for. The listing broker is directly paid the listing commission at the time of the closing, who then divides up the commission with the listing agent: in other words, the seller pays what amounts to a 3% “tax,” which is taken directly off the top of the final selling price. 

The Selling Broker or “Sub-Agent”
In a “cooperative” sale, the house is listed by one agent, and a buyer is found by another agent – the selling agent. The is by far the most common real-life scenario in real-estate transactions. In other words, it is somewhat rare that the listing agent actually finds a buyer for the property up for sale. The selling agent would normally receive the selling side of the commission. If the listing broker also produces the buyer, which does happen occasionally, then the listing broker receives both the listing and selling sides of the commission (in other words, the listing broker receives a whopping 6% from the net proceeds of your sale). 

In other cases, a selling broker may have a signed buyer representation agreement with a buyer and, therefore, represents the buyer exclusively, and not the seller. In such cases, the “buyer’s agent” also expects to earn a 3% commission on the sale of your property. MLSNOW makes it possible for you to “negotiate” the level of this commission, and through the website, you can indicate whether you are willing to pay a buyer’s agent commission of anywhere from 0 - 3%. 


Your Unique Home.

You have probably enjoyed living in your home and know better than anyone its many advantages and unique features. Through MLSNOW, you will want to tell prospective buyers about the special features of your home and neighborhood. Be prepared to be specific about schools, day-care, nearby public transportation, and other desirable community features, as well as any features specific to your home that lend greater appeal and added value to your home. Remember, prospective buyers will be engaged in “comparison shopping,” and so, will be keenly aware of the differences between houses for sale in your general area. Be sure to mention on the listing forms (in the “additional comments” field) as to why your home is special — from any remodeling you have carried out, to the park across the street, to bountiful afternoon sunlight. 

Property Profile Folder 
When making the determination to list a property for sale, it is important for the home seller to collect a number of documents and information specific to the location and jurisdiction of the property. These documents comprise the “Property Profile Folder,” and such materials may include:

• Assessments/Easements. The home seller must indicate if any tax assessments or easements exist on the property that must first be paid, or included in the purchase contract, and passed with the land when sold.

• Property Taxes / Condominium Fees. The home seller provides a record of property tax or condominium fee payments, which the homebuyer will reimburse to the home seller on a pro-rated basis at the time of settlement.

• Pay-Off Notice. This is a letter signed by the home seller, and mailed to the lender, to notify the lender of the intention to pay off the mortgage in order to minimize prepayment of interest penalties to the seller.

• Well and Septic Inspection. If the property utilizes a septic system, or gets its water from a well, current inspections by local health authorities are typically required while the home is occupied.

• Other Inspections. VA/FHA and most lenders of new mortgages require a termite inspection certificate to demonstrate that the house is free of infestation. If the home seller does not have a current certificate, then he must arrange for an inspection at the home seller’s expense. Sometimes a home inspection and radon testing will be ordered. The home seller should also provide all information as to the physical condition of the property, such as the presence of fire retardant plywood.

• Lender Appraisal. Lenders usually require an appraisal to ensure that the property is adequate collateral for the amount of the mortgage loan. A lender will usually insist on ordering its own appraisal for this purpose.

• Utilities. The home seller should provide a record of the past 12 months of utility bills, including gas, electric, sewer, water, and trash. Most buyers will want to know the history of utility costs.

• Other Helpful Documents. If possible, the home seller should gather together as many of the following documents as he/she can, which are usually needed by the time of closing and settlement: the deed, a house location survey, condominium bylaws or homeowners association documents (when applicable), a subdivision plot map, a house floor plan, previous title search abstracts (if any), a legal description of the property (i.e., subdivision, section and lot), home warranties on major systems and appliances, when such warranties are still in effect, and a copy of the homeowner’s insurance policy.

What Home Furnishings “Convey”? 
In anticipation of a buyer’s offer, the home seller should come up with a specific list of the personal property that is included (and that which is not included) in the real estate property for sale. Items that typically “convey” often include: washer, dryer, refrigerator, stove, microwave, disposal, draperies, drapery rods, remaining heating oil, firewood, swimming pool chemicals, awnings, storm doors and windows, screens, shutters, air conditioning units, etc. The home seller should tag or physically remove all items that do not convey.