SELLING A HOME?

 

 If you've decided to sell your home, chances are you're caught up in a host of emotions. You may be looking forward to moving up or downsizing now the nest is empty. Whatever turbulent feelings you're experiencing right now, there are plenty of practical matters to consider.

 

Kathleen is happy to answer any questions or concerns you might have.

 

Yes, the market has changed. More than ever Kathleen is your best resource for maximizing every dollar of your sale. Her experience & cleverly developed strategies are your secret weapon in this market.

 

Kathleen is an accredited ASP Stager & can help you stage your home for showing & sale. This means creating curb appeal for a great 1st impression & creating an inviting environment in the house, often using your furniture with no staging fee. She is also is a clever marketer using out of the box ideas to present your home to the widest buyer audience possible, maximizing your home’s exposure.

 

Undoubtedly, you have questions…

 

Sellers Q & A

 

 Why hire a Realtor?

 

Selecting a Realtor is one of the most pivotal decisions when selling your home. It is important to seek advice about this important financial transaction from someone who "sells" houses for a living.

 

Working with professional Realtor is beneficial for several reasons:

 

• They will help establish a fair asking price for your house.
• They will promote your house to other Realtors & list your property in multiple listing services so your house will receive maximum exposure.
• They will create, pay for & place advertising for you.
• They will schedule appointments to show your house to prospective buyers even when you are not there.
• They can weed out buyers who will not qualify for a mortgage.
• They can refer you to sources for insurance, inspections, legal counsel & financing.
• They will help negotiate with the buyer.

 

Choosing a Realtor

 

Since you will be working closely with a Realtor, choose a Realtor with whom you feel comfortable. One who is responsive to your needs & the needs of your family, one who compliments your personality, & one who is prepared to be with you throughout each step of the home-selling process.

 

• Get referrals from trustworthy family & friends.
• Seek an experienced Realtor with a known reputation – look at credentials, track records & awards received.
• Select someone who is a member of the Board of Realtors®.
• Interview at least three Realtors.
• Find someone who is continuing his/her education – a Certified Residential Specialist (CRS), Certified Residential Broker (CRB) or a Graduate of the Realtors institute (GRI) – this shows the Realtor has a long-term interest in the business & is willing to invest in his/her career.

 

What to Expect from a Real Estate Professional

 

Expect:

 

• To be treated as a respectable client, not as a transaction.
• To have your best interests represented.
• To be served selflessly – your Realtor shouldn’t be eyeing your wallet.
• Your Realtor to work as hard for you as he/she would for himself/herself.
• The highest skills available.
• To have calls returned promptly & to be kept up to date.
• Your Realtor to go above & beyond what’s expected when dealing with problems that may arise.
• Your Realtor to be a trusted advisor that you can consult even when the transaction is complete.
• Rely on instinct to determine which Realtor is right. The right person will have suitable credentials, a marketing plan you agree with & will make you feel comfortable.

 

Setting the Price

 

It is human nature for you to want the highest price for your home. However, to set the right price on your house, combine an objective evaluation of your property with a realistic assessment of market conditions.

 

Study the Comparables

 

You are more likely to benefit by determining a fair value & sticking close to it than by asking an unrealistic figure.

 

Under pricing can deprive you of money that’s rightfully yours. Unless rushed, aim for full market value.

 

Be cautious of either overpricing or under pricing if you rely on less-than-solid information. Know your competition. Learn the offering & selling prices of similar properties. Find out how long each took to sell.

 

Compare your home to others close in age, style, size, condition & location. Timing is all-important. If market dem& is high, you should be able to increase the price. Sales prices of homes are published in local or regional sections of newspapers.

 

The Contract

 

A valid real estate contract must be in writing & be freely offered by the buyer & accepted by the seller. All parties to the contract must be legally competent to do business. Money or other valuable consideration needs to be exchanged for title to the property.

 

Keep in mind that if things go wrong, the buyer could require you to sell your home to him/her or pay damages. Be familiar with the terms of any contract you give to a would-be purchaser.

 

Consider the contract as a whole. Is it slanted in favor of the buyer? If so, consult an attorney about making changes. Analyze the document as a series of paragraphs or clauses, each written to benefit one party or the other.

 

Key Elements of the Sales Contract

 

Price & terms

 

If a low offer comes your way, remain cool until you've examined the terms. Nothing evokes a more emotional response than a low bid. Be realistic & objective because many properties don't bring full price. Don't use price alone as a reason not to counter or negotiate. A first offer may reveal what's most important – price or terms – to this particular buyer, giving you the key to begin bargaining.

 

Condition of home & inspection

 

The purchaser should have your home inspected for soundness of construction & state of repair. Include all mandatory & voluntary disclosure statements concerning the property's condition, such as known defects in the contract.

 

Be careful what you guarantee. You cannot be sure the roof won't leak, the heating system won't go out or any other number of such assurances. Once the property is sold, you are no longer responsible for it.

 

Response deadline

 

You'll be asked to respond to an offer within a specified timeframe. Try to get as long a response time as possible. Other offers may come up & you'll want to buy time to review them & perhaps use one offer to increase another.

 

Settlement date & occupancy

 

If you have another home under contract, ask for a settlement date that will enable you to take your sales profits to the next closing. Be realistic; the buyer of your home probably will need at least 30 to 50 days to arrange financing & close.

 

Finalizing

 

Everything in the offering contract is negotiable. When everyone has agreed to the terms, initialed the changes & signed the contracts, you've got an agreement binding on all parties. All that remains is removing contingency clauses, arranging financing & clearing title.

 

 Preparing for Closing

 

As the seller, you have relatively little to do at this point. Avoid common glitches by keeping abreast of progress on both sides.

 

Be aware if the buyer is having trouble getting a loan on the terms specified in the contract. If he/she is turned down, it could jeopardize the whole deal & your house could be put back on the market. A day or so before closing, make sure all the necessary papers & documents have been gathered & are in the hands of the right parties.

 

Things can go wrong. Documents can be misplaced, delayed or lost. However, common last-minute difficulties can be avoided.

 

 Parties who should be present at closing need to be informed of any change in the date, time or place. They should be reminded a week before closing & again the day before.

 

 Everyone named on the deed under which you hold title must sign the new deed by which you grant title.

 

Know when & how you will be paid. Don't expect to walk away from the settlement table with a check in hand. If you are buying another property, consider having both closings at the same office scheduled back-to-back. That way, the timing of the disbursement is not a problem. You sign a paper authorizing the title company or attorney to assign the funds from sale to purchase.

 

The papers you'll need:

 

A copy of the sales contract & documentation showing that any contingencies have been removed or satisfied.

 

All documents needed to complete the transfer of title. This may include certificate of title, deed, correcting affidavits, quitclaim deeds, survey & title insurance policy.

 

Prorations for ongoing expenses such as insurance premiums, property taxes, accrued interest on assumed loans & utilities (if not shut off between owners).

 

Receipts showing payment of the latest water, electric & gas bills.

 

A certificate from your lender indicating the mortgage balance & the date to which interest has been prepaid.

 

General Q&A

 

Six Steps to Closing

 

Closing the real estate transaction is basically the investigation made or actions taken by either a title agent or title attorney before the actual issuance of the title policy. There are six basic steps that are usually followed in somewhat the same order in every real estate transaction. Although it is not the job of the title agent or title attorneys to cure defects in or problems with the title to the property or perform escrow or other services outside of closing the transaction, title agents and title attorney help in these matters on a somewhat regular basis.

 

Opening The Title Order - An escrow or sales contract (agreement to close) starts the process.

 

Processing The File - Processing the file is when tax information, loan payoffs, survey if necessary, homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers are ordered and title commitments/preliminary reports are reviewed and sent out.

 

Title Search - Search made of the public records. Records searched include deeds, mortgages, paving assessments, liens, wills, divorce settlements and other documents affecting title to the property.

 

Title Examination - Title examination is the examination of the documents found during the title search that affect the title to the property. This is when verification of the legal owner is made and the debts owed against the property are determined.

 

Document Preparation and/or Request to Produce - Review lender instructions/ requirements, review instructions from other parties to transaction, review legal and loan documents, assemble charges, and prepare closing statements and set closing.

 

Settlement/ Closing of the Transaction - Escrow/Settlement officer oversees closing of transaction. Seller signs deed, buyer signs new mortgage, old loan is paid off, new mortgage is signed. Seller, real estate agents, attorneys and other parties to the transaction are paid. Documents are recorded in the county in which the property is located.

 

 

 

WHO PAYS WHAT GENERALLY & CUSTOMARILY

 

 

The SELLER is generally expected to pay for:

 

• Real Estate Brokerage Fee
• Document Preparation Fee for the deed
• Documentary Transfer Tax
• Payoff of all loans recorded against the property, including Accrued Interest including Statement Fee, Trustee Fee, Reconveyance Fee, Demand Fee, Prepayment Penalty, Fax Fee
• Judgments, Tax Liens, etc. against the Seller
• Recording Charges to clear all documents of record against the Property
• Tax pro-ration (for any taxes unpaid at the time of the transfer of Title)
• Unpaid Homeowner’s Dues
• Delinquent Taxes
• Notary Fees
• Bonds or Assessments (according to the Contract)
• Termite Work (according to the Contract)
• Home Warranty (according to the Contract)

 

The BUYER is generally expected to pay for:

 

• Title Insurance Premiums
• ALTA Inspection Fee
• Escrow Fee
• Document Preparation (if applicable)
• Recording Charges for all documents in the Buyers’ names
• Tax Pro-ration (from the date of acquisition)
• Homeowner’s Transfer Fee
• All new Loan Charges (except those required by the Lender for the Seller to Pay)
• Interest on the new Loan from the date of funding to 30 days prior to the First Payment Date
• Assumption/Change of Records Fees for takeover of Existing Loan
• Beneficiary Statement Fee for assumption of Existing Loan
• Inspection Fees (roofing, termite, property inspection, geological etc.)
• Fire Insurance Premium for the first year
• Consumer Debt as may be required by the Lender
• Notary Fees
• Any Bonds or Assessments (according to the contract)
• Termite Work (according to the Contract)
• Home Warranty (according to the Contract)

 

Why Pay A Brokerage Fee?

 

Homeowners attempting to sell their home without the assistance of a real estate professional generally do so for one and one reason only: to avoid paying a brokerage fee. Is it worth it? Only the homeowner can answer that, but experience has shown that many for-sale-by-owners find that it's not.

 

 Before making a costly mistake, consider the benefits of working with a trained real estate professional:

 

 

 

• The agent usually pays all advertising costs.
• Research shows that 77% of sellers felt their commission was "well spent."
• An agent can supply standard forms to speed the transaction.
• An agent frees you from handling the many details of selling a home.
• Experience and Expertise in marketing, financing, negotiations, and more.
• An agent is aware of the many options for financing the sale.
• A real estate professional understands, and can explain, real estate lingo.
• An agent will do homework on how to best market your home.
• If you have a real estate question, an agent will know (or can get) the answer.
• An agent will schedule and handle all showings.
• Keeps Your Best Interests in Mind
• A real estate professional will be up-to-date on real estate laws that affect you.
• Access to Multiple Listing Service, the most effective means of bringing together buyers and sellers.
• An agent can handle all price and contract negotiations.
• Open Houses
• An agent has a network of contacts that can produce potential buyers.
• Avoid opening you home to "curiosity seekers vs. Qualifies Buyers"
• An agent will do a market analysis to establish a fair price range.
• Most owners are too emotional about their home to be objective.
• A knowledgeable agent can offer the wisdom that comes with experience.
• An agent provides a professional sign, encouraging serious buyers.
• Selling a home can be an emotional experience. A Realtor can help.