Set Yourself Up for Selling Success
We’ve created this Guide because we believe you deserve to be armed with the right knowledge for your home-selling decisions. This Sellers Guide breaks down the process into the basic steps. From deciding if selling your home is a good idea in the first place to walking away from the closing table with a big check in your hand – you’ll learn a simple, step-by-step process that’ll steer you toward a successful home deal.
Why Do You Want to Sell?
Being clear about your intentions for selling will make it easier for us to determine the most appropriate option for your specific financial, lifestyle, and real estate goals.
- Do you intend to simply find a larger property?
- Do you plan on moving to another neighborhood, school district, city or state?
- What are the individual implications of selling for your lifestyle, priorities, goals, and finances.
- Bottom line, what do you hope to accomplish by selling your house?
When Should You Sell
One of the first things to do is to establish your time frame for selling. If you need to sell quickly, we can speed up the process by giving you a complete market analysis and action plan to obtain all of your goals. If there is no pressing need to sell immediately, we can take some time to thoroughly review the current market conditions and find the most favorable time to sell, for the best price.
Should You Get a Realtor to List Your Property?
Once you know you're ready to sell, your next step is to find an excellent real estate agent. But wait, couldn’t you save money by skipping the agent and selling the house by yourself? It’s true that selling solo (For Sale By Owner, FSBO) means you don’t have to pay an agent commission, but there are many, many reasons to work with a qualified Realtor. The three main risks to going it alone – lower profit, limited exposure, unintentional mistakes. Your home is your largest asset, even small mistakes can cost you big. An experienced agent has seen everything, and can help you navigate through pitfalls and paperwork so that you see the biggest check possible at closing.
Finding the Right Realtor
When looking for a listing agent, we hope you will keep these factors in mind:
Experience & Expertise
You want an 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? Ask a lot of questions and look for detailed answers as to their knowledge and success in your local market.
Availability & Commitment
Your agent should be capable of prompt and decisive action during the course of selling your property. The right agent will make it a priority to keep in touch with you constantly. Your agent should be easy to contact with questions and in case of urgencies. The real estate market works 24/7, and you agent needs to be available on the weekends or in the evenings when most buyers are out looking.
Connection & 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 through this crucial decision-making process, so it’s important to find one with whom you can get along. In a nutshell, you should feel comfortable and at ease talking with your agent, and like you are important and being heard.
Next Section...Preparing to Sell
Preparing to Sell
You can do a lot to increase the appeal of your property, the appeal it has on potential buyers, and, consequently, your sales price, when you take some time to prepare properly. Do as much as you can to make your home “turn-key” ready for a buyer to see themselves moving right in.
Curb Appeal
Grab their attention and make sure buyers don’t just drive on by! Keep your landscaping, yard and lawns as tidy as possible. Add creative touches to your yard such as colorful annuals, a wreath on the door, and a welcoming entrance will create an immediate impact on passers-by and potential buyers.
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. Look around with a discerning eye for peeling and chips, dingy areas, and anything in disarray that needs a repair. The little things go a long way.
Cleanliness & Staging
Keep your property uncluttered, sweet-smelling, bright and cheery throughout. 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. Listen to their advice.
Disclosures & Inspections
We are very familiar with the legal procedures involved in property disclosure paperwork, and are ready to help you develop a thorough disclosure statement beneficial to both you and a buyer. We may also suggest home evaluations and inspections before placing your property on the market (such as radon and pest inspections).
Showings & Open Houses
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 an agent. It’s usually most productive if you are not there. Moreover, we will know what information will be most useful in representing your interests when speaking with prospective buyers.
Next Section...The Offer-Acceptance Process
Offer-Acceptance Process
The Price Is Not Always Right
Do not let yourself be fooled by the popular misconception, "The higher the price, the better the offer." Price should not be the only determining factor when accepting an offer for several important reasons. The initial offer is usually not the final sales price, and there are a number of terms and conditions that may influence the final outcome of a price. Other factors such as how strong one buyer may be over another, and the proposed timeline for the sale, may also influence what is the right offer for you. We will help you thoroughly evaluate every proposed offer top determine which one is best for you.
Negotiating The Right Way
We take the ethical responsibility to 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. As your agent, we guarantee a thorough and objective assessment of each offer to help you make the right choice, and prepare a counter-offer if necessary.
The Initial Purchase & Sale Agreement and Earnest Money Deposit
An effective Purchase & Sale Agreement (P&S) is a legal contract between a potential buyer and the property’s seller. Laws vary from state to state, but in order to be a legally binding P&S agreement, the agreement may require monetary consideration. This consideration, known as the Earnest Money Deposit, is to be held in an escrow account pending the fulfillment of conditions or contingencies in the effective agreement.
Next Section...The Selling Process
Sale Process
The Closing Agent
A title company will be selected as the closing agent. Their 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 (e.g. 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. There could also be contingencies around details such as the closing date.
Before completing the purchase of your property, the buyer goes over every aspect of the property, as provided for by P&S agreement, and any applicable addenda and contingencies. These can include:
- Obtaining financing
- Reviewing all pertinent documents, such as condo documents, disclosures and deeds; 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, pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist, mold, lead based paint, HVAC, etc.
Building Inspection
Most buyers will have the property inspected by a licensed property inspector within the timeframe that was agreed upon in the effective P&S contract. 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 (i.e., roof, HVAC, structure).
Depending on the outcome of these inspections, one of two things may happen:
- Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the closing; or
- The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
Contract Renegotiation
How do you respond objectively and fairly to the buyer when a renegotiation is needed, while still 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 client, no matter what the situation is.
Property Appraisal
If the P&S agreement is conditional upon buyer receiving 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.
Next Section...Finalizing the Sale
Important Tips
Some important tips to keep the process going smoothly:
Stay in close contact with your Realtor.
Once you have a fully signed P&S contract, the sale of your property is well underway! It is important that you keep in consistent communication with your Realtor throughout the selling process. They will let you know where the buyer is in their process, and what the next event is in the schedule. While we make it a point to stay right on top of things with our sellers, to ensure the process doesn’t hit any snags, take it upon yourself to check in regularly with your Realtor if you are not hearing from them.
Keep written records of everything.
All verbal agreements such as counter-offers, contingencies, and addendums should be put into written agreements to be signed by both parties. We will assist you in drafting all the paperwork necessary for your sale and make sure that you have copies of everything.
Stick to the schedule.
Once you have accepted an offer, you and the buyer will be given a timeline for every stage in the process of closing the real estate contract (P&S). It’s very important to meet any of the seller requirements on-time. This will keep the process moving forward smoothly, aide in any negotiations that may come up, and avoid either party being in breach of their agreements. During the process we will keep you constantly updated and make sure you know the next steps.
Finalizing the Sale
Final Walkthrough Inspection
Usually the day before Closing, the buyer and their agent will schedule a final walkthrough inspection. 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. Hopefully, this will be just a formality on the way to the closing table.
Cancel Home Services & Utilities
Remember to schedule the termination of the home services and utilities that you currently pay for. We will provide a list of useful numbers for the termination of home services and utilities. Schedule them to occur the day of or day after the closing.
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 approve on time, there is no need to panic. We have encountered these problems before and know how to handle them efficiently and in as calm a manner as possible.
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, arrangements can be made depending on the circumstances and the notice that is received. 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. As the seller, you should arrange to have all property keys and any other important information and documents for the new buyer at the closing.
CONGRATULATIONS
Best of Luck to You on Your Next Chapter!