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| SELLING
YOUR PROPERTY
>>
SELLING 101
| WHAT IT'S WORTH |
SELL
IT NOW |
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THE
SELLING PROCESS A - Z
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Introduction
| Educate
Yourself
| Selecting
a Listing Agent |
Setting
the Proper Asking Price
| The
Listing Contract and Required Disclosures
Preparing Your Home for Sale
| Marketing Your Home
What To Do During the Marketing Period | Receiving
an Offer on Your Home
Congratulations! You're in Escrow, Now What? | The
Termite Report
Title Insurance | Other
Property Requirements Prior to Sale
What Happens at the Close of Escrow | What
Happens After the Close of Escrow |
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As a home seller, it's very important to do everything right in order to get your home sold quickly, for the highest price, and with least amount
of hassle. Real estate is becoming more and more complex. The market is constantly changing, interest rates fluctuate, prices are going up or down, and tax laws are always changing. You've probably noticed that computers, email, and the Internet have impacted the real estate game. The once sacred Multiple Listing Service (MLS), which is the agent's database of property for sale, has been flung wide open for all buyers and sellers to see via the web. In the old days you needed an agent to tell you what homes were on the market. With the web, you can now bypass agents directly and check homes for sale on your own 24 hours a day.
In order to help make sense of all this, I put together this web site.
I want to take you through the process of selling a home from beginning to end.
This will save you time and energy looking for answers to your questions and make you a smarter, better-informed seller. Thanks for checking out my site and I sincerely hope you find it valuable. Feel free to pick up the phone anytime and call me at (888)276-0656 for immediate answers to any of your questions.
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Assumptions
about the Current Real Estate Market
Deciding it's time to sell
One person some experts say you should never rely soley on
to
determine if you should sell
You can sell your home any time you want
The new tax laws
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EDUCATE
YOURSELF
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Ok, you've decided that it's time to sell your home. But first educate yourself about the process and learn your local real estate market.
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Talk
to Friends and Family Who Have Recently Sold a Home
Real Estate Books
Web Sites
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SELECTING
A LISTING AGENT
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Selling real estate is tough. It can be intimidating and stressful. There are no benefits, no comp plans, no 401k's, no stock options, no paid vacation. Health insurance?
Fuggedaboutit! And don't forget it's straight commission with 60-hour workweeks including weekends. Sounds great huh? Well then why do so many people get in to real estate?
First, it's easy to get the license. Study a few weeks with a mail order course, take a $139 test, and pay $295 for the license. Heck, you don't even need a high school diploma much less a college degree. However, the Department of Real Estate does draw the line at convicted felons.
Second, most companies will hire anyone. You got a pulse and a license? Great you're hired! Got no money, no experience, no car? Hey welcome aboard! Have you been run out of every other real estate company due to shady ethics? Right this way! You get the picture. And believe me, I've seen it first hand. In fact, I remember a broker in my area that hired an agent who was living in her car! No offense to those of you that are forced to dwell in your vehicle, but would you want to trust the biggest financial transaction of your life to someone who lived in her car?
Me neither.
Third, if you do it right and treat people well, you can make a good living. The true professional that is organized focused, intelligent, ambitious, and treats his or her clients well can make a great living selling real estate. Having a thick skin and a competitive nature doesn't hurt either.
Unfortunately, not enough people have all of these qualities. Read on to learn how to find a good real estate agent.
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Understanding
Real Estate Agency
Finding a Good Agent
Eight Things to Consider When Choosing an Agent
Understanding How Agents Get Paid
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SETTING
THE PROPER ASKING PRICE
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Setting the proper asking price is crucial when listing your home. In my opinion, setting the price is an art more than a science. It can be difficult to pinpoint what a home will sell at. For example, a custom home set on a hill with ocean views can be much more difficult to price as opposed to a cookie-cutter tract home in a stable neighborhood. The custom home is unique and can be harder to comp where the tract home is easy to compare to other homes in the neighborhood with the same floor plan. If you have picked a good listing agent he or she will be able to give you a narrow range where your home should be listed.
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Checking
the sales comps
Checking the competition
Which way is the market going?
Overpricing/Under pricing your home
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THE
LISTING CONTRACT AND REQUIRED DISCLOSURES
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Ok, you've done your due diligence and picked an agent. You know what you are going to list your home for. It’s time to fill out the listing agreement. The most common listing agreement used in California by real estate professionals is the California Association of Realtors (CAR) contract referred to as the Exclusive Authorization and Right to Sell (Form A-14). This two-page contract is periodically revised by the CAR attorneys and was last modified in October 1997.
I've broken down the contract to highlight the most important paragraphs and clauses.
If you are just starting out ask your agent to get you a copy of the contract so you will be
more familiar with the various clauses. Please call me at (310)577-8014 or email me and I’ll fax you a copy.
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Highlights
of the Contract
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PREPARING
YOUR HOME FOR SALE
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Detail
Your Home
Check Curb Appeal
De-clutter Your Home
Deodorize Your Home
Order a Termite Report
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MARKETING YOUR HOME
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The
Multiple Listing Service
Tuesday Broker's Caravan
Signage
The Internet
Print Advertising
Your Agent's
Personal Web Site
Email
Advertising
Flyers
Open House
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WHAT
TO DO DURING THE MARKETING PERIOD
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Hide
or remove all valuables
Leave during showings
What to do if you have tenants
Get feedback from
your agent
What to do if your
home does not sell
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RECEIVING
AN OFFER ON YOUR HOME
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Receiving
an offer from the buyer's agent
Countering an offer on your home
Receiving multiple offers on your home
Receiving a low-ball offer on your home
Pre-qualifying the buyer
Final acceptance of the offer
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CONGRATULATIONS! YOU'RE IN ESCROW, NOW WHAT?
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Many people only have a fuzzy understanding of escrow and the escrow process. I remember a client whose offer was just accepted. I told him we would open escrow immediately and he said to me, "Derrick, just what exactly is escrow? As I explained the process to him, I realized that to many people, escrow is kind of a mystery, especially to first time homebuyers. Hopefully this section of my site will shed some light on the mysteries of escrow.
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What
is Escrow?
Who Picks the Escrow Company?
Opening Escrow
Escrow Company Fees
Certified Escrow Instructions
Statement of Information (SI)
The City Report
Change of Ownership
Preliminary Title Report (Prelim)
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THE
TERMITE REPORT
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A termite inspection is not always required. However, I would
say that 98% of all the deals I have done have had termite
inspections. One of the main reasons is that most lenders making
the loan require a pest inspection and repairs if there is
damage. As a buyer, I would certainly require an inspection and
repairs to be done.
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Who Picks the Termite Inspector?
Section One Work vs. Section Two Work
What to do if You Are Unhappy With The Termite Report
Termite Notes for Condominiums or Townhouses
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TITLE
INSURANCE
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What is Title
Insurance?
What Protection Does Title Insurance Give?
What Risks Are Not Covered?
Can Protection Be Obtained Against Matters Not of Record?
Who Pays for Title Insurance?
Who Picks the Title Insurance Company?
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OTHER PROPERTY REQUIREMENTS PRIOR TO SALE
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Smoke
Detectors
Water
Heater Bracing
Certificate
of Compliance (Water Conservation)
Impact
Hazard Glazing
Gas Shut Off
Valve Ordinance Disclosure
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WHAT HAPPENS AT THE CLOSE OF ESCROW?
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Ok, you're in the home stretch. There's just a few more things that you need to do to get the escrow closed.
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Final Loan Approval
Funding the Loan
Recording the Deeds
Cancel Utilities in Your Name
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WHAT TO DO AFTER THE CLOSE OF ESCROW
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Examining Your Hud-1 Settlement Statement
Your Paperwork File
A Cool Web-Based Change-of-Address Service
If Your Agent Did a Good Job
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FINAL
THOUGHTS
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Well we finally got through the long process of selling a Westside home. I sincerely hope that the information provided in my web site was of value to you. Please feel free to call me at 888-276-0656 or email me if I can be of service to you or your friends or family.
Please let me know if you come across any mistakes or would like to see other issues about the selling process included in this web site. Feedback from you is very important. This web site will continue to evolve. If you think the information on this site would be of use to anyone you know, please tell him or her about it, thank you.
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