SarahGray Lamm ~ Chapel Hill / Carrboro / Durham Real Estate Blog ~ Agent Outlier: June 2010

~2802 Winton Drive, Hillsborough, NC 27278~
$385,000

Lori Liveston, a colleague in Massachussetts, has said it well...like Lori, I will always take the opportunity up front to make sure you completely understand the way a full service buyer's representative works to your benefit. We also need a chance to determine if we are a good match to accomplish your goals. Buying a home is fun but should also be informative, educational and leave you knowing you made a great decision. Just ask my clients!

In my neighborhood, folks walk...so when somebody plants a For Sale sign in the front yard, everybody knows. Of course, that's the general idea...to let everybody know that your great home is ready for a new owner. And your neighbors have more than a passing interest in your sale...they have a vested interest. They'll be keeping tabs on that sign.

Once the Under Contract banner goes up they will want to know for how much your home sold and when it will close. If the Under Contract banner is slow in coming or never goes up they will draw their own conclusions...and some of them may be incorrect.

So what is the secret language of the real estate sign? Realtors are bound by all kinds of rules when it comes to signage; local ordinances regarding size and placement within town/city limits, MLS rules about when signs can be placed as well as what wording can appear on them and homeowner's association restrictions which can differ from neighborhood to neighborhood. Finally, a truly professional real estate agent understands that neighborhoods are where people live and finding a way to advertise a listing without littering the yards and entrances with extraneous signage can go a long way to engendering good will among the folks who aren't selling anytime soon.

Generally, in the Raleigh, Durham and Chapel Hill, NC areas, the following is true for real estate signage when placed by a professional Realtor:

1. The For Sale sign goes in the front yard on the same day that the listing is activated in the local MLS.

2. The Under Contract banner or rider may be added to the yard sign once there is a fully executed contract in place between the seller and the buyer (all legally required signatures are in place and the agreement has been communicated between the parties.)

3. A Sold sign may be placed, once the sale has closed, by either the listing or selling agent. Local practice here rarely sees a Sold sign placed by the selling agent but it happens.

So what's the big secret? For starters, a 'fully executed contract' is not necessarily the best time to place that Under Contract banner on your For Sale sign. The signage in the yard should never work against the seller. Just because the seller and buyer have established a selling price and a date of closing does not mean the hurdles are cleared and the finish line is in sight.

There are many tasks ahead on which the entire transaction may be contingent; the buyer must receive loan approval, the home inspections must be performed, the repair agreements negotiated and the bank's appraiser must put his/her blessing upon the selling price. Sometimes (more often in a challenging market) the buyer may have a home to sell before they can close. The sales contract may be contingent ( a legal term meaning that the sale will be null and void if certain things do not happen by specific dates) on any step in the process. Putting up an Under Contract sign and announcing to the world (and more importantly the neighbors) that your home is no longer available may be the worst decision ever made. As long as there is a reasonable potential of a sale not being consummated, potential buyers ought to know they still have a shot. The arrival of the Under Contract sign should balance the reasonable expectation that the sale will close with the seller's and agent's desire to say "See, we did it!"

Another thing about that Under Contract sign...the one thing, the one really BIG thing your neighbors want to know once they see it is "HOW MUCH DID IT SELL FOR?" Don't tell 'em. I'm serious. This is not because you are mean, gloating or your agent has something to gain but because if you agreed to sell for less than your asking price and you tell...you have just established a new, lower asking price if the sale falls through for any reason. No kidding...stuff happens and since you mentioned at the neighborhood cookout that your home sold for $10,000 less than asking price, guess what the neighbor tells the guy who knows the guy who is interested in your house now that it is back on the market?

There are a few other secrets behind real estate signage. Well, maybe not so secret...the things your neighbors and potential buyers think when they see a badly tended sign in your yard. Nothing screams "Nobody cares about this property so feel free to bring a low ball offer" like a dirty, crooked sign in an overgrown yard. Yes, it is your agent's sign and nobody said you have to love it as if it were your own, but while you are lovingly tending your lawn, keep in mind the message your sign is sending when it is covered with dried grass clippings, spattered with mud or damaged by maurauding neighborhood pranksters. Help a sign out...and let your agent know if it needs some extra help. After all, it is working in your best interest.

Who knew we Realtors put so much thought into signage? For my part, I have had some really good conversations with the neighbors and passersby while placing and tending my signs. Nothing like a For Sale sign to get folks talking. Feel free to stop and ask me about my deeply nuanced thoughts and philosophies about real estate signs...just don't expect me to tell you how much the house sold for...until it is closed!