Selling Your Property
You’re ready for a change, something new, exciting different…You’re ready for the sold sign to show up, but you know there are things that need to be considered. Task one, connect with a competent Realtor who can walk with you during this process.
Once you’ve selected your Clear Direction Real Estate agent, there will be a few items your agent will guide you through.
You’ll do a walk through with your agent. This is the best time to ask lots of questions, your agent will be a fantastic resource in how to properly prepare your property for the market. They will cover how to competitively market your property in the current market, go over CMA’s (comparative market analysis), discuss list pricing, and talk about items that should be resolved prior to showings. These items could be things like:
- Deep cleaning.
- Painting and touch up where needed.
- Caulking windows & doors.
- If needed, and your budget allow make major repairs that may be needed.
- Declutter, remember you’re moving, you want a buyer to picture their items.
- Pack unnecessary item out of the way.
- Eliminate orders.
- If possible make rooms bright and open (show how large they are).
- Give the landscaping some extra attention.
- Pressure wash walkway’s, decks and driveway.
Showings & managing showings.
There are two kinds of showings. These are open houses, or a scheduled appointment with an agent. An open house is predetermined time slot where your agent or someone from their office will sit at your property so anyone can come by and view your property without an appointment. A scheduled appointment with an agent is just that, there is a buyer that is interested in your home so their agent will contact your agent to set up a specific time for them to have a private viewing.
How to get the most out of showing?
- Allow the prospective buyer and their agent to view the home in private. It is best to give buyers space to get a feel for the home and talk freely amongst themselves and with their agent, this can’t be done when the seller is there.
- Be available for showings. While we understand sometimes it’s an inconvenient time to show your home, If a buyer cannot view a home it’s not uncommon for it to be crossed off their list and they move on.
- Listen to your feedback, this is your market talking. It’s important to weigh out all feedback and discuss it with your agent.
What is an offer? Time to celebrate YAY!!! (maybe..) An offer is a purchase agreement signed by the buyer. Your Clear Direction Real Estate agent will receive official notification and the offer from the buyer’s agent. This is also where you’ll want to set proper move out expectations with leasebacks if you cannot move out by the closing date proposed. Your Clear Direction Real Estate agent can help you complete the required documents for the leaseback, if needed.
What is in an offer?
- The purchase offer price.
- Option fee amount.
- Earnest money deposit.
- The manner they intent to pay for the house/property with, for example: Cash, or a pre-approval letter from a lender for a loan.
- Terms; with things like: option period, closing date, closing costs (who pays what), contingencies (a buyer may need to sell their home first), if a home warranty is requested, final lender approval, inspection requirements, appraisals, & etc.
Evaluating the offer(s)
Once offers are received your Clear Direction Real Estate agent will contact you to review them. You and your agent will review the following items:
- The offer amount.
- If the offer came with any contingencies.
- How the deal will be funded: all cash, via funding by their lender…& if their lender is a reputable lender, a well known online lender, or any unknown lender.
- Their proposed close date and possession date.
- As well as, any addition items that may have been requested.
I’ve heard of multiple offers, what is that, an how do we handle those?
Multiple offers is when more than one buyer has submitted an offer to purchase to purchase your property. In the event you receive multiple offers, your Clear Direction Real Estate can advise on the follow items.
- If an offer stands out from the others, you can accept that one immediately. It’s important to know the details though, type of funding, close date, what happens if it the property appraisal is low, so on.
- Sometimes it’s best to counter all offers to incentivize a better price or term, you could also set a deadline to have all new offers back by.
- If you’d rather not go back and forth with multiple offers, you can select the offer you feel is most appealing and counter them to enhance their price or terms.
The majority of buyers will make an inspection a condition of their offer. The inspection is an in-depth yet surface inspection of the building structure, and systems which normally takes several hours to complete and many times the buyer is present.
The buyer can use the inspection report for a few things 1. Rescind their offer if major items need attention. 2. Request repairs if the contract is contingent upon repairs 3.
Renegotiate the contract. In some contracts the inspection is used for the buyer to learn more about the property and is not used as a negotiation tool.
Items the inspector will look at:
- Structural condition, foundation beams and the floor
- Safety concerns such as mold, chimney maintenance, stairs & handrails
- Electrical systems such as grounded outlets and code violations
- Plumbing system check for leak rust and water pressure
- HVAC inspection
- Appliances, ensure all are in proper functioning order, some inspectors will overlook not built in appliances
- Roof condition
Items an inspector will typically not inspect:
- Playground & outside equipment
- Wells & septic systems
- Swimming pools and spas
- Underground pipes and sprinkler systems
The appraisal is one of final steps in your sales process. Your Clear Direction Real Estate agent will be able to help you prepare for the appraisal.
What is an appraisal?
An appraisal is an objective valuation of your property from a licensed appraiser, this valuation acts as a safe guard for the buyer and their lender. The buyer will pay for the appraisal but the appraiser works for the lender.
How do they come up with the value?
The appraiser will review several measurable pieces of data to assist them in assigning a value to your property. Here are somethings they will use during their in person valuation :
- Your property location,
- The property square foot,
- The amenities in the home and community,
- Number of bedrooms and bathrooms,
- The condition of the structure,
- The quality of its items (flooring, plumbing & other systems),
- Comparable properties in your area of similar size, age, and condition.
As part of the appraisal report, the appraiser will include their research of other properties in the neighborhood, such as, values and recent sold prices.
Do I need to do anything to get ready for the inspection?
- Provide a list of all major improvements to the home
- Provide information showing the age of the roof
- Provide information showing the age of the HVAC & appliances
- Provide any permits for work that was done
- Ensure the property is clean and presentable
- Allow full access to all room and spaces in the home, such as attics, sheds, garages
- Remember to secure your pets during this process, its best if they are in a crate or removed from the property if possible
- Let the appraiser do their job uninterrupted.
Can the appraisal affect the sale of my home?
In the event the value of the homes comes in lower than the sale prices it could require a renegotiation. Your Clear Direction Real Estate agent will help you with this process. The appraised value will dictate the max amount the lender will lend on the property. If the value is lower than expected, depending on how the contract as written there are many creative things that can be done. Here are a few that are common:
- Ask the buyer to make up the difference between the value & sale price.
- Reduce the sale price.
- Spilt the difference with the buyer.
- Cancelation of the contract.
At this point, it is normal to be excited to close and move on the next chapter in your life. Your Clear Direction Real Estate agent will help in providing direction in the final stages as you wrap up your final responsibilities.
The buyers will do a walk-through prior closing, sometimes it is set a week prior, & sometimes it is set 24 hours prior. This is to ensure the property is in good condition, and that the required items have been resolved. In the event the buyers find something that needs to be fixed, your agent can help you when deciding how to resolve those items.
As mentioned under the offers section. If you cannot move out before the closing date a leaseback is required, Its very important this item is settled during the initial negation.
Whether you have a leaseback or not the new owner will get a copy of the house keys, gates keys and mailbox key (they have become the landlord, for the leaseback duration)
Do I need to so anything before closing? Yes, you’ll need to:
- Ensure all required repairs have been done, per the contract.
- Keep all documents and photos from the repairs, before and after.
- Gather all owner’s manuals and other paperwork for the home for the buyers.
- Schedule movers.
- Schedule all utilities to be changed the day after closing.
- Schedule your change of address 3 weeks before the effective date.
- Update banks, online shopping, family & friends & work of your new address.
- Review all settlement documents, paying close attention to the settlement statement.
- Ensure the property survey is correct.
- Hire a professional house cleaner and have any carpets steam cleaned.
- Prepare for the buyer’s final walk-through.
Today there are flexible options for closing a Real Estate transaction, consult your Clear Direction Real Estate agent for options the title company has available for you.
Typical seller expenses, which are normally deducted from the proceeds of the sale, include:
- Final balance on your mortgage.
- Real estate commissions.
- Contractual responsibilities, or agreed items.
- Prorated property taxes.
- Homeowners insurance.
- & HOA dues.
Funding & what’s next.
- Receive proceeds from your sale, which is commonly a wire transfer.
- Cancel/ move your homeowners policy, the day after closing to ensure you are covered through the last day of ownership.
- Retain all closing documents for tax purposes, & your personal records.
Congratulations!! You have successfully sold your home with your Clear Direction RealEstate agent! It’s been a pleasure to serve you!