CHAPTER 10Slide 1 of 6 Chapter 10. SELLING YOUR HOME Getting the right price and terms… Getting your money’s worth from a Realtor… Getting the Home into Saleable Condition A. What’s Your Home Worth? Factors to Consider in Setting the Price (See Personal Action Worksheet, Text page 262) 1. Condition of the House 2. Condition of the Neighborhood 3. How Much “Paper” Are You Willing to Carry? 4. How Anxious Are You to Sell? 5. Is Your Mortgage Assumable? 6. Is Good Financing Readily Available? 7. Comparables - What Have Similar Homes Sold For Recently?

CHAPTER 10Slide 2 of 6 B. Using a Real Estate Agent - What Can One Do For You? 1. Knows Market and Pricing? 2. Access to Financing? 3. Handles Advertising? 4. Shows Your Home (Objectively)? 5. Part of a Sales Force? 6. Multiple-listing Service? 7. Negotiating Skills? C. Finding a Good Agent D. The Listing Contract and Commission

CHAPTER 10Slide 3 of 6 E. Preparing Your Home for Sale 1. The Exterior 2. The Interior 3. The Kitchen 4. Touching Up 5. Closets and Storage Space 6. Mechanicals 7. Design and Décor 8. Evidence of Leaks and Other Damage

CHAPTER 10Slide 4 of 6 F. What Financing Is Available? 1. Assumable Mortgage? 2. Will You Take Back “Paper?” G. Tax Implications When You Sell Your Home 1. Tax on Gain? 2. Deduction for Moving Expenses

CHAPTER 10Slide 5 of 6 TALKING POINTS… Chapter Ten, Number One You are interviewing real estate agents to find the best one to suit your needs. Evaluate the possibilities based on these considerations: 1. Agent A has had the most experience of the bunch, but she is very low key, and doesn’t think you can get the price you’re seeking. 2. Agent B is young, energetic, pleasant, and relatively inexperienced. But he is willing to work for you for a 4% commission instead of the standard 6%. 3. Agent C is new in town but claims he’s a “fast learner.” He is very charming, and gives the impression that he could outsell the other candidates combined. Good credentials from his former city. 4. Agent D is by far the star earner of the bunch. Drives a Lexus. Well- heeled. But unpleasant and condescending.

CHAPTER 10Slide 6 of 6 TALKING POINTS… Chapter Ten, Number Two Your agent finally brings you an offer that’s close enough to satisfy you. Maybe you can get a few thousand more dollars by some tactful negotiating? What would be your response to these statements by the agent? 1. “They said that this is their best and final offer. If I ask for more we’ll lose them. Take the money and run.” 2. “I think they’ll come up a few thousand more, but I have reason to believe they’re also bidding on another house with another agent, and just using your deal for leverage against the other seller. 3. “They might come up higher, but they haven’t gotten any financing commitment yet.” 4. “Their credit isn’t great, and the first mortgage they’ve been offered is too small. You’d have to carry their IOU (as a second mortgage) and I know they’ll even go over your asking price if you’re willing to do that for them.”