The Price Is Not Always Right.
“The higher the price, the better the offer.” Do not let yourself be fooled by this popular misconception. Price is not always the determining factor when accepting an offer for several important reasons: the initial offer is usually not final, and there are a number of terms and conditions that may influence the final outcome of a price. You can trust our professionals to help you thoroughly evaluate every proposal without compromising your marketing position.
Negotiating The Right Way.
We take the ethical responsibility of fairly negotiating contractual terms very seriously. It is our job to find a win-win agreement that is beneficial to all parties involved. You may even have to deal with multiple offers before ratifying the one you judge to be the most suitable for you – and as your agents, we will guarantee a thorough and objective assessment of each offer to help you make the right choice.
The Initial Agreement and Deposit.
An effective agreement is a legal arrangement between a potential purchaser and the property’s seller. Laws vary from state to state, but in order to be a legally, binding agreement, the agreement may require consideration. This consideration (initial and additional deposit) is to be held in the closing agent’s escrow account pending the fulfillment of conditions or contingencies in the effective agreement.
Some important tips to keep in mind to streamline the process even further:
- Keep written records of everything.
For the sake of clarity, it will be extremely useful to transcribe all verbal agreements including counter-offers and addendums, and convert them to written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your sale and make sure that you have copies of everything. - Stick to the schedule.
Now that you have chosen your offer, you and the buyer will be given a timeline to mark every stage in the process of closing the real estate contract. Meeting the requirements on time ensures a smoother flow of negotiations and also ensures that each party involved is not in breach of their agreements. During the process we will keep you constantly updated so you will always be prepared for the next step.
Closing Day
If you have come this far, this means that it is almost time for a congratulations, but not yet. Do not forget to tie up these loose ends:
Final Walk-Through Inspection.
More of a formality than anything else, the final inspection takes place the day before, or the day of the closing. The buyer visits the property to verify that all is in working order, everything is the same as when the buyer last viewed the property, and that there are no extra items left behind.
Cancel Home Services and Utilities.
We will provide a list of useful numbers for the termination of home services and utilities after the closing occurs.
Be Prepared.
We are ready to assist you should an unforeseen glitch pop up, even at this last stage. If something at the property breaks down or the buyers’ loan does not pull through on time, there is no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manner.
Closing.
The closing agent will furnish all parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. The buyer(s) will sign this statement and then you will sign as well as the closing agent, certifying its accuracy. If you are unable to attend the scheduled closing, then arrangements can be made depending on the circumstances and the notice that we receive. If you are receiving funds from the transaction, you can elect to either have the funds wired electronically to an account at your financial institution, or have a check issued to you at the closing. The seller should arrange to have all property keys and any other important information for the new purchaser at the closing, so that the purchaser may receive these items at this time.
A Few Thoughts to help make Selling your Home more Enjoyable
When listing your home, there is no guarantee (or even a chance really) that a buyer will simply walk through the front door, offer you what you are asking and sign papers without a fuss.
Hence, there are steps that you need to take so that your property receives maximum exposure to attract a buyer and not a looker.
Appearance is quite literally “everything”. First impressions last forever. If a first impression turned you off to date, someone you meet simply for a cup of coffee… Imagine how important it would be to someone considering offering you a million dollars for your property.
Then comes the neighborhood, marketing and the rest – but the first impression is very important. So, let’s get your home ready:
Be Careful Remodeling Without a Permit
Most cities require that homeowners obtain a building permit before making structural or certain project specific (Water heater replacement) modifications to a residence. Which modifications require a permit vary by city, county or even federal law. One should assume that your city is more vigilant, rather than less when it comes to the enforcement of their building codes.
Let’s also always assume that the Broker, Agent and Buyer/Seller we are dealing with are smart, have done their research and know what they want. Sgt Murphy and he little book of “laws” is alive and well. Let’s show him the respect he deserves.
Generally, in order to receive a permitted design, plans, and fees are required. In addition, the improvements will be given a value by the jurisdiction (no matter what you pay for the work to be done). Inspections are often required, and as such requires you to schedule, wait for, and obtain approval of the work completed by the said inspector(s). This assumes that the work is approved for the first time, without any corrections being needed. If the value established above, by the jurisdiction issuing the permit, significantly increases the value of your home your property taxes will likely be increased.
Since this process is time-consuming and inconvenient in the short run many homeowners skip the permit process.
Work discovered done without a permit can result in not only a citation but the requirement to get a permit retroactively, and at a significantly higher rate. If the work was not done in accordance with approved codes, or it was done within code guidelines but the inspector is unable to determine this; the homeowner could be required to open walls or tear up floors. Inspectors have a great deal of authority, and as such can ultimately prevent you from being able to sell your home.
In addition, by law, work not permitted where a permit was required must be disclosed to any prospective purchaser. This will generally cause the buyer to offer less “or discount” their offering price, and still require the corrective work to be completed before the title is transferred.
For prospective buyers of a property, save yourself the future hassle and loss of money by researching whether all work on the premises has been done according to code and with the proper permits. You may generally obtain copies of these permits by going directly to the local Building & Safety, asking your Home Inspector to locate them, or hiring a “permit puller” who will research the permits for you.
When to Get a Home Inspection
How old is your house? Are you a handyman always fixing things in your own way? Did you just complete a huge remodel with contractors, permits, and blueprints? Do you love your home “just the way it is”? Did you raise your five kids in this home and love all the little dings nicks that make it your home?
Those are all questions you want to ask – and then there is the final hard question you have to ask yourself: “What is wrong with my house that will make someone pay me less.” If you are not willing to ask that question, then you will be even more shocked when others begin to tear your house apart piece by piece – and tell you why it’s worthless.
In just about every situation we tell our Sellers (and eventually any Buyer) get a HOME INSPECTION FIRST! Inspect the roof, bones, chimney, attic, HVAC, electrical panel, and crawl space. Call a termite inspector and find out what is needed in the phase I and phase II sections report (an estimate).
WHY Spend that money now? It could be a $1,000 or more….
Regardless of whether or not you spend the money, the Buyer will. And then the Buyer will have a tool to use against you in determining how much your home is worth. A tool you do not have.
If it turns out that a lot of work needs to be done – consider hiring a contractor to complete the work. A repaired home always sells for more than a “fixer-upper”
If you don’t have the money to do the repairs… then likely we need to re-evaluate the price, or at least be prepared to grant the seller a “discount” when they ask for one. Perhaps it will be less than we thought.
If you do make repairs or did a remodel a few years ago, make sure to save the plans, the permit sign-off card and photos of the job. This way you can show any buyer that you did the work above board, safely and legally. This will help ensure that you get top dollar for your home.
Should I list my home in the MLS?
MLS is real estate shorthand for Multiple Listing Service(s). The short answer is Yes, of course, yes, and then yes again.
If you have an Agent or Broker who suggests to you that:
- He/she has a client perfect for your home and therefore “there is no need to list it”,
- Thinks a “pocket listing” is a great idea so the home can be shopped to only special high-end buyers”….
The idea that not exposing your amazing home, its beautiful photos, spectacular video, and possibly the pristine staging done – to as many people all over the WORLD as humanly possible is just arrogant and not in your best interest.
Side Note: If you are worried about just anyone tromping through your luxury home, looking into your things – don’t worry. There are many ways to alleviate this and other concerns and still show your home to as many potential buyers as possible.
What is a CMA and Why Do You Need One?
CMA is real estate shorthand for “Comparative Market Analysis”. A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.
The first thing an agent will need to do to provide you with a CMA is to inspect your property. Generally, this inspection won’t be overly detailed nor does the property need to be totally cleaned up, staged or ready for an open house. It should be in such a condition that the agent will be able to make an accurate assessment of its condition and worth. We will add the observed information to the retrieved public data (usually available through MLS), and local comps to create a report denoting a fair market value for your property. This process is provided for free to our clients and we charge a small fee to others requesting this service. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.
Inspections and Appraisals
Most buyers will have the property inspected by a licensed property inspector within the time frame that was agreed upon in the effective contract to purchase. Some buyers will have several different inspectors inspect the property, if they wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution via third party. This is done so that the lending institution can confirm their investment in your property is accurate. A buyer of a commercial property may also have a complete environmental audit performed and/or soil test, if required by the lending institution.
The Closing Agent.
Either a title company or an attorney will be selected as the closing agent, whose job is to examine and insure clear title to real estate. After researching the complete recorded history of your property, they will certify that 1) your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions, liens) by the date of closing; and 2) all new encumbrances are duly included in the title.
Contingencies.
A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a qualified inspector.
Before completing his or her purchase of your property, the buyer goes over every aspect of the property, as provided for by purchase agreements and any applicable addendums. These include:
- Obtaining financing and insurance;
- Reviewing all pertinent documents, such as preliminary title reports and disclosure documents; and
- Inspecting the property. The buyer has the right to determine the condition of your property by subjecting it to a wide range of inspections, such as roof, termite/pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist, mold, lead based paint, HVAC, etc.
Depending on the outcome of these inspections, one of two things may happen:
1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the closing; or
2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
How do you respond objectively and fairly to the buyer when a renegotiation is demanded, while acting in your best interests? This is when a professional listing agent can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, we guarantee our expertise and total commitment to every customer, no matter what their situation is.
Loan Approval and Appraisal.
We suggest that you accept buyers who have a lender’s pre-approval, approval letter, or written loan commitment, which is a better guarantee of loan approval than a pre-qualification or no documentation from a lending institute. Expect an appraiser from the lender’s company to review your property and verify that the sales price is appropriate.
Prepare to Sell
You can do a lot to increase the appeal of your property and to create a lasting impact on potential buyers.
What To Do To Prepare:
The following are a couple of factors to keep in mind when listing your property for sale:
1. Curb Appeal.
Keeping your landscape pristine, and adding creative touches to your yard, such as colorful annuals, will create an immediate impact on passers-by and potential buyers.
2. Property Repairs.
Simple upgrades such as window repairs, polishing the doorknobs, and a fresh coat of paint in the most frequently used rooms will instantly brighten up the property.
3. Cleanliness and Staging.
Keep your property uncluttered, sweet-smelling and well-lit from top-to-bottom. Pay attention to details: put away the kitty litter, place a vase of fresh flowers near the entryway, pop a batch of cinnamon rolls in the oven, have your carpets cleaned. Your agent will scan the property before it is listed for sale to see how you can improve the staging of your property.
4. Disclosures and Inspections.
We are very familiar with the legal procedures involved in disclosures and are ready to help you develop a thorough disclosure statement beneficial to both you and the buyer, as well as suggest home improvement measures before placing your property on the market (such as termite and pest inspections).
5. Showtime.
Presenting your property to potential buyers is a job that we will take care of for you. Buyers feel more comfortable discussing the property with the agent, if you are not there. Moreover, your agent will know what information will be most useful in representing your interests when speaking with prospective buyers.
Why Should You Choose Our Professionals?
You may opt to sell your property independently. There are many excellent reasons, however, why you should choose us to assist you in this important undertaking. We will ensure that you maximize your opportunities in the current real estate market. With our extensive contact networks that we have developed through the many national and international organizations, of which we are members, as well as our current and past clients, we will employ the most effective marketing and advertising strategies for your property. We will also guide you through the complicated paperwork involved, from the initial agreement to the final documents.
What To Look For In An Agent.
The following are a couple of factors to keep in mind when looking for a listing agent:
1. Education. The most important factor in choosing a real estate professional is their education in the real estate industry. Our professionals have advanced training and education, allowing them to be among the top agents in the world and earning prestigious designations in the various fields of real estate.
2. Experience and Expertise. You want a full-time agent who is familiar with your area and with the type of property you intend to sell. Does he or she employ a diverse range of marketing and advertising strategies? How tech-savvy is your agent? How many similar properties has he or she been able to sell in the past?
3. Availability and Commitment. Your agent should be capable of prompt and decisive action during the course of selling your property. Does your agent make it a point to keep in touch with you constantly? Can your agent easily be contacted in case of emergencies or even for the simplest questions? Is your agent available on the weekends or in the evenings when most buyers are out looking?
4. Rapport. Does your agent take the time to listen to your goals and clarify your needs? Can your agent understand your unique situation and be genuinely concerned about the outcome of the process? Your listing agent will be your guide and partner in this crucial decision, so it is important to find one with whom you can get along.
What Is Your Property Worth?
Without a professional agent, most independent property sellers tend to overestimate the value of their property. You can avoid this pitfall by consulting with an experienced real estate listing agent.