The Process of Selling!

Selling your home could be quite an emotional roller coaster! 

You think of all the reasons that motivated this grand idea, such as a

job transfer or promotion, perhaps the need for a larger home, or

maybe you just wanted to cash in on those huge real estate profits.

No matter what the reason, you sooner or later run into

The Process of Selling.  Although the final results are as exciting

as the proverbial gold at the end of the rainbow,

The Process of Selling is quite detailed for both you,

and your Broker.

In order to sell at Top Dollar, you must plan your sale process.

And here are some ideas to think about as you make up your

Selling Project List.

1.     Timing. 

Is it the right time to sell?  The kids may be in school and

your job may have some unfinished commitments.  But

most important, are the Real Estate Market Conditions in

your favor? Sometimes it is not the best time to sell, and

this may be an important discussion with your family and

your Real Estate Agent.  Be sure to plan ahead and call us

as soon as you consider selling.  Remember, if you fail to

plan then you might as well plan to fail!  Call us and we

will help you determine the best plan for you.

2.     Preparation.

Preparing a property for sale is not an easy task.  For the

past 30 years I have been involved in Property

Preparation, which covers so many issues in a home or

condominium.  For instance, the window that never

worked before must now be repaired, the rusted leaky

pipe fittings on top of the water heater must now be

replaced, and the cracked shower door in the bathroom,

well, you were going to replace it sooner or later

anyway…right?

In preparing for the sale, you must focus on the details

that a Buyer will pay most attention to as well. And

remember to touch-up paint, if you decide not to opt for a

complete new paint job. At a minimum, however, dress

up your front door.  It’s something the Buyer won’t miss.

We are here to help, and preparing for a sale is a meeting

we consider important.  Call us so we may help you

prepare your residence for sale.

3.     Packing.

Yes, packing starts right at the beginning.  In order to sell

your home or condominium, you need to pack and/or

store items that seem to clutter your rooms. 

Ever notice how your home felt smaller and smaller as

the years went by?  As you know, it’s all the ‘stuff’

collected over the years.

But in the Buyer’s eyes, neatness counts.  It’s kind of like

buying a new car.  Some cars, over time, seem to acquire

all kinds of stuff.  Kids stuff, Parents stuff, and sometimes

even Pet stuff. But a new car has no stuff, and the thought

of driving a clean ‘stuff-free’ car is quite exciting.

That’s the gist of it.  Keep it neat and keep it simple. 

People buy what they can understand and, most of all see! 

So let them see your home and get rid of the ‘stuff!’

4.     Which Broker to hire?

Probably one of the most important steps in

The Process of Selling and the answer comes down to

four words…  Trust, Experience, Expertise and

Communication.

You must hire a Real Estate Broker that you trust.  And

only then will you get information needed to make sound

selling decisions.  A Broker is usually your only link to

the Buyer’s state of mind.  And you need to be able to rely

upon what you are told.  Without trust, relationships fall

apart.

Experience and expertise go hand in hand.  I commend

newer agents in our industry, but without experience you

fall prey to these newer agents learning about the Real

Estate Business, at YOUR expense.  Don’t set yourself up

so that you become the Real Estate story they will tell the

rest of their career.  Hire a Real Estate Broker with

Experience and Expertise.  You may not see the difference

initially, but you surely will avoid some of those pitfalls

and potential lawsuits that an experienced professional

will guard against. 

At times I have heard a client tell me that their friend just

got a Real Estate License, and now they want the listing. 

Granted, this is a difficult decision to make, but

remember your home may be worth Hundreds of

Thousands of Dollars and as you well know, business is

business.  Keep it safe for YOU.  Hire a professional that

will not casually tend to your business, or possibly put

their friendship in the way of your best interest; hire

someone that must perform per their agreement with you.

One client told me that there is a saying in Romania that

goes something like this:  Friends are Friends but the

cheese costs money!

Communication!

What an important word.  If the world communicated

together, with ease and desire, do you think World Peace

could really happen?

In the sale of your home, Communication is the key. 

From discussions with the Buyer, to conversations with

your Escrow, to negotiations with your Pest Control

Company, and on and on, Communication is the key

element to agreement and understanding.

When you hire a Real Estate Broker, be sure they are able

to explain complex issues to you without difficulty.  They

certainly should be able to do so.  Remember, if you don’t

get it, and they don’t get it, then no one gets it! 

The Broker is the Professional, and that is why you hired

them in the first place.  It’s their job to make The Process

of Selling happen with ease.  Hire a Broker that is

comfortable communicating with all those involved in the

sale of your home.

For more information on how to hire a Real Estate Broker,

please read our advisory:  Realtor Roulette.  You may find

it helpful!

5.     We come to the final step in The Process of Selling, and that is

      the sale of your property entering Escrow.  But, what is an   

      Escrow?

Very simply defined, an escrow is a deposit of funds, a

deed or other instrument by one party for the delivery to

another party upon completion of a particular condition

or event. The California Escrow Law – Section 17003 of

the Financial Code – provides the legal definition.

                   Defined in fewer words, an Escrow is the deposit of

                   documents and funds with a neutral third party

                   (a middleman or stakeholder), which is the Escrow

                   Company.  And also given specific instructions as to how

                   they should be disbursed.   Escrow acts as the clearing

                   house for the exchange and distribution of those

                   documents and funds in connection with the transfer or

                   financing of real estate. The services of a qualified escrow

                   agent assures all interested parties that the rules

                   and regulations governing real property transfers will be

                   strictly observed by a neutral third party with an objective

                   interest in completing the transaction.

 The easiest way to understand the process is to describe the
 obligations of each party in the real estate transaction.

            Obligations Of The Seller (partial list)

·        The seller must provide the buyer, to the best of the seller’s

     knowledge, detailed disclosures that will reveal to the buyer

     any problems or adverse conditions affecting the property.   In

     addition, the seller must provide the buyer with a natural

     hazard disclosure report which is prepared by companies that

     check local records and maps to determine if the property is in

     an earthquake fault zone, a flood zone, an area of potential

     landslides, a high fire area, an area of potential liquefaction and

     other zones or areas that might affect the desirability of the

     property.

·        Making the home available for the buyer’s physical

     inspection, geological inspection and lenders appraiser is also

     required.

·        The seller may have a licensed termite company inspect the

     property and the seller is generally responsible for insuring that

     any termites or wood destroying fungus or dry rot is taken care

     of prior to the close of escrow.

·        The escrow company will have a number of documents and

     other disclosures to be completed by the parties and returned to

     the Escrow Holder.

·        The seller may be responsible for making repairs to items

     discovered in the buyer’s professional home inspection. The

     items to be repaired or replaced will be negotiated between the

     buyer and seller after the inspections are completed.

        Obligations Of The Buyer (partial list)

·        The buyer must tender their good faith deposit with the

     Escrow Holder within three business days of acceptance of

     their offer. Typically, this is a check for the amount of 3% of the

     purchase price.

·        If the buyer has not been pre-approved with a lender, the

     buyer must start the loan process by completing the loan

     application forms. In addition, the buyer can expect to provide

     the lender with tax returns, paycheck stubs, bank statements,

     and a source of funds for the down payment.

·        Within the first two weeks the buyer is strongly encouraged

     to have the property inspected by professionals to determine its

     physical condition and any geological problems.  Different soil

     types, mountainous terrain and the 1994 San Fernando Valley

     earthquake make this extra important. The seller must also

     disclose any problems with the house that they are aware of.

     This is done on a form called the Transfer Disclosure Statement.

·        The buyer may provide the seller with a list of items that

     come up in the inspection process and note which conditions

     they want the seller to remedy prior to the close of escrow. The

     buyer and seller may negotiate through their Agents, in order

     to determine what items the seller may repair, if any.

·        Within five days of the close of escrow, the buyer should go

     back to the home to determine that the seller has taken care of

     all the items they agreed to do, and confirm the property is in

     the same general condition it was in when the offer was made.

·        Prior to the close of escrow, the buyer will go into the escrow

     office and sign all the loan documents that spell out the terms

     and conditions of the buyer’s new loan. The buyer generally

     brings in a cashiers check for the balance of their down

     payment at this time.

            Obligations Of The Escrow Officer (partial list)
 

·        Order a title report on the subject property and obtain all

     the necessary information to clear all title defect and satisfy 

     existing liens and encumbrances against the property or the

     principals involved in the sale.

·        Work with the buyer's lender to insure instructions from the

     seller, buyer and lender are in compliance.

·        Prepare many of the documents necessary for the transaction

     and review all other documents to make certain they conform

     to the parties' demands.

·        Figure tax and interest prorates and prepare closing

     instructions and statements for both buyer and seller.

·        Arrange closing appointments for all parties to sign the

     necessary documents.

·        After taking final signatures, the escrow agent has

     responsibility to complete the transaction by checking all

     documents for completeness, compliance and accuracy.

·        Return copies of all loan documents to the lender for

     approval to record the sale.

·        Record all necessary documents in the county where the

     property is located. This is when the transaction is closed.

·        Disburse all funds out of the escrow account according to the

     signed, written instructions. (These funds could include the

     seller's net proceeds, the Broker's real estate commission, and

     other payments required for loan approval or to satisfy other

     terms of the agreement.)

·      Prepare and distribute final closing statements to all interested

     parties.

        The Real Estate Agents Job (partial list)

The job of any good real estate agent is to oversee everyone involved

in this process and make sure they are doing their job within the time

frames allowed in the contract. All too often a Real Estate Agent will

assume that the lender, title company or escrow officer is doing their job,

without asking critical questions. This can be a recipe for disaster! 

A good real estate agent will take a proactive position during the

escrow process and identify small problems at their onset. This will

help prevent small problems from becoming major obstacles later on.

The escrow period is the most important phase of transferring real

estate. One mistake by any party can sink a transaction. It is crucial

that a buyer or seller have the expertise and advice of an experienced

professional to look out for their best interests.

Well, this mostly covers the The Process of Selling.  However, there

are always other twists and turns that surprise even the most

seasoned professional.

In the nearly 30 years of selling, I am still learning about new issues

year after year. Although you never know it all, an Experienced

Professional is a MUST in this complicated and complex field of

Real Estate.

Be safe, not sorry.  Hire Bruce Jay Associates as your representative,

so you may enjoy The Process of Selling!

Thank you.