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Frequently Asked Questions
At Coldwell Banker, we know that you will have questions about selling your property, so we've compiled a list of the questions we hear most often.
Of course, we're always happy to personally answer your questions and offer advice. Feel free to call and talk with one of our Realtors at any time.
Click any of the questions below, or scroll down to get started.
Q. Why do I need a real estate agent?
Just as you wouldn't go to court without a lawyer by your side, it's not a good idea to enter the real estate market without a professional advisor.
The State of Texas has many laws regulating every type of real estate transaction. Even the most experienced property owners find it difficult to stay up to date on the legal requirements and documents needed for various transactions. The process can be complex and difficult to navigate. And if you don't provide the correct paperwork, properly completed with difficult-to-understand details, you are at risk of delaying or canceling your sale.
When you enlist the help of an experienced, knowledgeable real estate agent, you can easily navigate the details and the process – and you will save time, headaches and possible interruptions to your sale.
Your Realtor performs many tasks on your behalf, many of them behind the scenes, to make the sale of your property go smoothly. Your Realtor will:
- Evaluate the condition of your property for appeal to prospective buyers.
- Research comparable properties to understand current pricing and the competition in the area.
- Help you determine the fair market price for your property.
- Photograph your property, list it online, print brochures, advertise, and spread the word to other agents who represent buyers looking for properties.
- Make appointments and show your property to prospective buyers.
- Show the property to well qualified prospective buyers, while pointing out advantages and selling points based on the buyers’ needs.
- Follow-up on prospective buyers’ questions and concerns.
- Consider offers from buyers, research your options, and negotiate counter-offers.
- Negotiate with the buyer and buyer’s agent on your behalf, and help you understand offers, contracts and addendums.
- Handle the details needed from title companies, appraisers, mortgage companies, inspectors, etc.
- Re-negotiate with the buyer if the appraisal or inspection(s) uncover problems.
- Be at your side for closing to ensure that the sale adheres to the contract you agreed to, and that your questions and concerns are answered.
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Q. What does it cost to list my property?
There is no fee to list your property for sale. Your Realtor will do the up-front work – free of charge – to evaluate your property and the current market, help you determine the best asking price, list it online, and advertise it for sale.
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Q. How much will I pay if my property sells?
When your property sells, your approximate closing costs will be 8 percent of the sales price, including the brokerage fee, attorneys fees, escrow fee, tax certificate, and recording fee. Additionally, you will need to pay any liens and property taxes due on the property.
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Q. Am I legally bound to my real estate agent?
When you list your property for sale, you enter into a contractual agreement with your agent for a specified amount of time. If your property doesn't sell within that amount of time, you may re-list the property with the same Realtor, or switch to another of your choice.
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Q. What's the difference between a Realtor and a real estate agent?
The State of Texas sets minimum requirements for real estate agents practicing in the state.
A Realtor is a real estate agent who is also a member in good standing of the National Association of Realtors. This professional organization holds its members to the highest standards of ethics, conduct, and continuing education.
Each member of the Coldwell Banker team is proud to be a credentialed Realtor.
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Q. How do I determine the asking price for my property?
A property's fair market value depends on many factors, including its location, size, zoning regulations, condition of the home or buildings, square footage, competition in the area, and what the market will bear.
Your real estate agent will assess these factors and help you determine a fair asking price for your property.
If your property is in top condition or has unusual, valuable improvements, you may be able to ask for more than the market norm. Buyers are sometimes willing to pay a premium for new or insulated windows, new appliances, or mature, well-maintained landscaping.
Unfortunately, improvements such as pools and hot tubs don't always add value to a property – even if they are well maintained. This is also true of some upgrades you may have installed such as top-grade carpet, hardwood floors, and expensive countertops.
Room additions that increase the square footage of your home or building can add value if they are professionally built and in good condition. However, additions can detract from your property if they fail to meet building codes or are in poor condition.
Your professional Coldwell Banker Realtor is qualified to evaluate all factors affecting your property’s value and guide you to the appropriate asking price.
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Q. Should I price my property high to see if I get any takers?
It's not advisable to price your property far above the going rate for similar properties. Few buyers will invest in property without doing their homework, and they will not consider properties that are overpriced. If you ask much more than the going rate, you may be viewed as unrealistic and difficult to work with.
If your property is priced high, it will most likely stay on the market for a long time, which can make buyers wonder what's wrong with it.
Typically, if a property is over-priced and doesn't generate activity from potential buyers, you'll need to reduce the price at some point. This can also create an impression that your property isn't desirable, and you may end up getting a lower sales price than you could have if it was priced right.
Your professional Coldwell Banker Realtor has a great deal of experience selling homes in this area and can help you understand the factors that influence property prices in the area.
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Q. When is the best time to list my property?
Now. At Coldwell Banker, we sell properties every day of the year.
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Q. What documents will I need to give my Realtor?
Your real estate agent will ask you for all available documents pertaining to your property, including a copy of the deed, any existing surveys, inspection reports, tax assessments, repair reports, appraisals, utility bills, documentation of mineral leases, if appropriate, etc.
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Q. Do I need to make repairs to my property before I put it on the market?
Under Texas law it is assumed that, when you put your property on the market, everything included is safe, structurally sound, and functioning properly. If your property has problems, you are required by law to either (1) make the necessary repairs or (2) disclose the problems to prospective buyers.
You can put your property on the market with problems, promoted as a “fixer-upper.” But if you do so, you should be aware that buyer will expect a discounted price to allow for needed repairs.
You may want to consider a seller's inspection so you can discover problems and handle repairs before listing your property. Taking care of these problems in advance may allow you sell your property for a higher price.
Your Realtor can recommend cosmetic changes to make your property attractive to buyers. For more information, see Tips for Selling Your Property.
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Q. When I receive an offer on my property, should I wait before responding to gain the upper hand in negotiations?
Generally, you should answer all offers promptly. An offer means that the buyer is ready to buy your home at that moment. Moods can change. You may be tempted to wait before answering an offer to see if you receive a higher offer. But in doing so, you run the risk that your prospective buyer will loose interest or find another property that they like better.
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Q. What is earnest money?
Earnest money is a buyer’s down payment on a property sale, held in escrow by the title company. If the sale closes, the earnest money is applied to the sale price. If the sale doesn't close, the earnest money is refunded to either the buyer or the seller, depending on the contract (see next question).
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Q. Once I've signed a contract with a buyer, can either of us back out of the deal?
Once a signed contract is delivered to both buyer and seller, or their agents, and the earnest money is escrowed, the contract becomes legally binding. Buyers will often specify an option period or contingencies that allow them to back out of the contract in a specified amount of time.
The seller is bound by the contract and cannot accept any other offers except as a "back-up" contract.
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Q. What is an option period?
An option period is a right for the buyer to terminate the contract for any reason within a specified amount of time, guaranteed by a small deposit. If the buyer backs out within the option period, the seller keeps the option money, but the earnest money is returned to the buyer.
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Q. What other contingencies might be in the contract?
The sale may be contingent on financing, a favorable inspection report, sale of the buyer’s current property, or other factors.
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Q. Do I have to allow the buyer an option period?
No. You can refuse to accept a contract that includes an option period or other contingencies. However, an option period is fast becoming an expected safeguard for buyers. Buying a property is a major investment, and many buyers will not consider a property if the seller won't agree to an option period.
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Q. What is a residential service contract, and do I have to provide one to the buyer?
A residential service contract is an insurance policy that covers certain repairs for one year after the sale. The types of repairs covered vary depending on the specific policy purchased. The repairs are reimbursed by the insurance company, not the seller.
A residential service contract generally costs $350 or more, and many buyers ask their sellers to reimburse them for this cost.
You are not required to provide a residential service contract, and you can base your decision on the selling price and other terms of the sale.
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