Step 1 - Setting a price for the home
Step 1 - Setting a price for the home
This is probably the most important thing we will do when selling your home. Anyone can tell you what you want to hear when selling, it’s getting it correct that’s key to your success and ours! We use a variety of ways to make sure that we are close as we can be to the correct price and also try and achieve your goals for the time frame of selling as well. A CMA or Current Market Analysis is one of the ways we do this. We look at homes that are similar to yours and see how long they took to sell and how many price reductions they had to get there. Then we also use another type of CMA on a spreadsheet that give us tighter information. This helps us know what to expect for days on market etc.
This process can take a few days, so be patient, sometimes, we have to call agents and see if there was anything unusual about the home that we are comparing to, if there were seller paid concessions, all kinds of things to get the most accurate information. But we will generate a report for you and go over it together to give you the best understanding of the market that we can.
Step 2 - Preparing the home for sale
Step 2 - Preparing the home for sale
Most every home needs staging. We want the house to look lived in, but not cluttered. We want it to look homey, but basically like “Robot People” live there! Not really, but many things need to be stored that you won’t be using in the next 90 days or so. This is an important step and we can tell you what to store and what to leave out, what we can use for staging and what we can’t. It’s hard when you have kids and all their stuff and kitchen gadgets, and other things, but you can do it! We want your home to show better than any other house in the price range and we have the skills to do it too! There are these new things now that you can use called Pods, their web site is www.gominis.com. In Alaska, you can only use them if you are moving within the state, but they deliver these to your home and you fill it up with the items you don’t need right away. Then, they come and pick it up and off it goes to storage! You don’t have to load it in a truck and then in a storage unit; it’s just one move! We also have staging items for your home, whether its vacant or not. Just turn us loose before pictures are done and voila……the perfect place to call home!
Here are some examples of things that you may be able to box up and store to make your home feel less cluttered:
• Out of season clothing and shoes
• Rarely used kitchen appliances and dishes
• Extra toys (rotate boxes of toys so only 1/3 of your kids' total toys are available at any time)
• Extra linens and towels
• Bathroom toiletries that are seldom used
• Books and movies
• Knick Knacks and décor (less is more)
Click here for a checklist to use for each room of your home to prepare for listing.
Step 3 - Listing documents
Step 3 - Listing documents
Your listing contract is only 3 pages long. We will go over these carefully so you fully understand what it all means. Click here to view a sample listing contract.
Paragraph 1: This talks about the property, where it is and the legal description etc. The checked boxes are so we can a) start marketing right away, b) hold off on marketing until a specific date or c) allows the realtor to show the property, but not to place it in the MLS (Multiple Listing Service)
Paragraph 2: This is all about how I represent you, I know we have been thru that many times, but remember, I represent you exclusively!
Paragraph 3: The nuts and bolts, what are we going to list it for!
Paragraph 4: Title insurance – you must prove that you really do own the property and have the right to sell it – seems reasonable.
Paragraph 5: How we get paid. This will show you what you are paying Jack White to sell your home. This fee is then split with the other Realtor that actually brings the buyer and writes the contract for your home. So if the total fee is $6000, then $3000 would go to Jack White and $3000 would go to the other brokerage. Now take a look at section 5C, this is something important. If a realtor shows your property and then you take it off the market, and then those same people come back and buy it from you personally, I am afraid you will still owe Jack White the commission. This is what this paragraph is talking about, so make sure you read it over and we can talk about it too.
Paragraph 6: If you are using a relocation company, that this section is for you. If not, you can disregard.
Paragraph 7: As you know, there are a lot of people that will be involved in getting your transaction to closing, this allows us to share information to these companies so that can prepare documents.
Paragraph 8: Everyone knows the MLS is key to getting your home sold. But, we need your authorization to put it on the MLS. This also gives authorization for us to extend that to Zillow and Trulia and Realtor.com and all the other sites that people use to find homes.
Paragraph 9: Another authorization, sign and lockbox. It’s important to have both these things at the home for seeing the home quickly as you drive down the road and easy access to the property.
Paragraph 10: Yes, this one is very important. I will have your home listed, but it doesn’t mean that I am taking care of your home like a property manager. You will still have to keep the power on and the heat and make sure the driveway gets plowed in the winter and lawn is mowed in the summer.
Paragraph 11: Disclosures! State of Alaska requires a written statement about the condition of your home. This is really important, I will provide this form to you and you need to be as accurate as possible, and if you don’t know the answer to something, just say, “I don’t Know”.
Paragraph 12: If you owe the IRS money, they will want it when the house sells! You know how they are!
Paragraph 13: Got to have this! We all agree that we will in good faith market to everyone!
Paragraph 14: The legal-eze. If anyone wants to sue anyone over this contract, the winning party is entitled to attorney’s fees.
Paragraph 15: If there is a dispute, everyone will go to mediation before arbitration or litigation.
Paragraph 16: Check a box if this is a Foreclosure, Short Sale, Relocation transaction or other.
Paragraph 17: If there are any other unusual terms and agreements to this contract, they would be listed here.
*** Key items to Note ***
- Note the listing date
- Make sure you sign in ALL signature blocks
- Check to make sure the price is what was agreed upon
That’s it for the listing contract, but a few other documents are needed to get your home listed. We will need to have an AREC or Alaska Real Estate Commission Consumer Disclosure signed. This is not a contract! It’s a State of Alaska Disclosure; Click here to view. Anytime there is the State of Alaska Seal on a document, you know it’s required by the state. This goes into detail about how you are represented. In your case, I only represent you. I can assist the buyer, but I represent you. Click here for a quick explanation on representation. Other documents required are the disclosures. You will also need to complete a State of Alaska Property disclosure where you need to disclose any material defect, repairs or damage done to your home, and any other relevant info that you know. This document just needs to be filled out to the best of your knowledge, and it's ok if you don’t know the depth of your well, the name of the original builder of the home, or other questions. This disclosure can prevent you from trouble with a potential buyer, so take care in disclosing anything that has happened to your home that a buyer may want to know. For instance, a leak under your kitchen sink that was repaired, or fire in your oven. Click here to view.
Step 4 - Photos & staging
Step 4 - Photos & staging
We use professional photographers to photograph your home because their cameras just do a better job of seeing all the special things about your home. So this must be scheduled. We will make an appointment with you after we have staged, and invite the photographer in to do his magic!
Staging takes a day, and usually we can get the photographer in the next day. Once the photos are back, your home book has been produced and “special feature” placards have been installed, your property will go live in the MLS and the internet.
Step 5 - What to expect from showings and feedback
Step 5 - What to expect from showings and feedback
Showings are scheduled, people will not just come up to your door and ask to see your home. If they do, have them call us and don’t invite them in. Realtors will usually allow 30 to 60 minutes per showing, so make sure that you leave the house before they are scheduled to arrive and don’t come back until they are out of the driveway. Many realtors will leave their business card after they have shown your property. Some will not, but we have ways to see exactly who was in your home. There is an electronic key box on the home that sends a text message to us when the box is open, sounds so “Star Trek” doesn’t it! But it’s great because we know exactly when they entered your home.
The next day, we will text or email them asking for feedback on the showing. This is good information for us – because negative feedback may be something very simple that can be remedied and we can then ask for an offer! If the potential buyers said “hey, the house has a funny smell” and you know it’s because the dog rolled in a dead salmon and you just gave him a bath, then we can pass that info along and problem solved!
Sometimes the buyers feedback is something we have no control over, like how far the home is away from their work, or its proximity to a major roadway, but anything we can address is good info! Please understand that with feedback we will send you the exact verbiage we received from the buyers agent; look at this as constructive criticism. Feedback is usually, price driven, condition driven or location driven.
Step 6 - Receive Offer
Step 6 - Receive Offer
Once we have an offer, you and I will go over it together and I will provide you with a HUD Settlement Estimate. Click here to see an example. The HUD settlement can help us determine how to respond to the offer. We can respond in one of three ways:
- Accept their offer as written
- Counter their offer with your own counter offer
- Reject their offer altogether
The HUD Settlement will also help us know what we should counter back with if that’s the direction we choose to go. Another important point is to make sure we respond in the time allowed on the contract. If we miss that time frame, the offer is dead. If we need a little extra time, I have found that most Realtors are very understanding and allow what we need with an amendment signed by all parties. Sometimes, in a really “hot” market, the time to respond is really tight, because the buyer wants to tie it up before it goes into a multi-offer situation.
During this time we will:
- Review the contract and obligations with you before you sign
- Explain the contingencies for your specific contract
- Protect you from signing a “blank check” for unknown problems or repairs
- Define legal disclosure requirements
- Orchestrate the offer process for “back up” offers, if necessary
- We can also immediately give you the bottom line number you need to make a decision on your offer using our settlement estimate form
Step 7 – Negotiation
Step 7 – Negotiation
Some people hate this part of the buying processes and some love it! It’s really a pretty simple process. You know what you want for your house, and you know what you need. The buyer doesn’t. So you must weigh all the options, the good and the bad, the time frames and the type of financing. It’s all part of the negotiation. During the negotiation process, our team will use the very best negotiating skills on your behalf. Usually we know the REALTOR presenting the offer, and we know the typical practices of that real estate professional.
Throughout the negotiation, we will provide you with a professional, objective point of view. Sometimes offers are good and sometimes they’re not, we’ll give you our opinion, but the final decision of accepting an offer is yours.
Step 8 - Home Inspection
Step 8 - Home Inspection
Each offer on your home will include a section that has a provision for a home inspection. Click here to see a typical home inspection. You will have signed off on a list of potential home inspectors that the buyer has chosen. Sometimes, it may just say “any licensed bonded and insured inspector – or – any qualified inspector” and that’s okay as long as you are okay. I may have an inspector that I feel is too difficult to work with and I may give you a heads up on that, but it’s your decision – I just offer advice.
The home inspection will need to be done when you are not there. This is between the buyer and the inspector, and your presence may make it difficult and distracting, so schedule when you won’t be there. Make sure that pets are out of the way as well, barking dogs can be a nuisance and I actually have seen a cat get locked in the crawl space hatch before, they are so curious, if there is an opening they will investigate! Please make the attic and crawl space access available to the inspector. That’s a nice way of saying “remove all your Christmas Décor from on top of the crawl space hatch!” The inspection can take 4 to 6 hours depending on how big our house is, and you will be provided with a copy after it’s completed.
Remember, don’t take offense, they scrutinize EVERYTHING! That’s their job! I have seen them put a cracked cover plate on an electrical outlet on their list!
You may want to have your own home inspection done prior to receiving an offer to identify potential problems, and repair them in advance. A potential buyer can choose to use your existing home inspection, but they also retain the right to pay for a new home inspection. Two home inspectors inspecting the same home may identify different issues, so a new inspection may identify other potential repairs.
Step 9 - Second Negotiation
Step 9 - Second Negotiation
Here is where we get the amendment for repairs.Click here to see what a typical repair amendment looks like, and Click here to view a sample home inspection report. Sometimes, the buyers will ask for all repairs to be done and sometimes, just a few of the items, it really depends on how your home is priced and the personality of the buyer and how bad they want your house! But it does create a second round of negotiations. I have actually seen deals fall apart at this stage of the transaction, everything is contingent upon all parties agreeing to “who is going to make these repairs” and who is going to pay for them. This one reason it’s a good idea to have “pre-listing” inspection done. This can eliminate this second negotiation, because you have already addressed all the issues. This makes it so much easier for everyone, especially you! There is a time limit for this ‘back and forth’ negotiation too. So we will keep an eye on those dates.
Step 10 - In Contract
Step 10 - In Contract
Congratulations, you are now in contract! This is where the work begins. Our team has a transaction coordinator. She is a licensed realtor, so she can talk with the other realtor in the offer and all the other people associated with the transaction. We will keep you updated all through your transaction. We will be ordering, on your behalf, many things for you in this process including:
- Well and septic inspections
- Water Quality testing
- As built survey recertification
- Heating system inspection
- Septic pumping
- Contractor(s) to do the repairs agreed upon
- Preliminary title report
- Appraisal
We will be in touch with you while making all of these appointments, and you won’t need to be home for all of these appointments either. Appraisers have MLS keys to enter your home, but they always let us know when they can be there and schedule a time. Many of these invoices will be paid for out of your sales proceeds at closing, but you will also need to understand that you are responsible to pay for any services performed on your behalf even if the invoice is not paid at closing. Click here to view the agreement to order services.
Our other duties during this time include:
- Staying in contact with the buyer’s agent and their lender to ensure a smooth closing
- Following up on the progress of the buyer’s loan
- Monitoring all contingencies, and inspection removal deadlines
- Keeping you in contract if there are delays
- Assisting you if a conflict with the buyer arises
During this time, you will also be packing and making arrangements to move.
Step 11 - Completing repairs and waiting for appraisal
Step 11 - Completing repairs and waiting for appraisal
Like anything else, the waiting is always the hard part. However, this is a good time for you to get the repairs done. We do have a list of people who can help you with these repairs.Click herefor a list of companies that we recommend and their contact information.
This is also a good time to start packing.Click hereto view moving tips.
Step 12 - Approaching closing date
Step 12 - Approaching closing date
Packing and what must be done to the house; what to leave, and what can stay.
Do Leave
- Shelving in a garage or storage area
- Cleaning supplies (maybe not the toilet brush)
- Finishing trim, and paint
- Curtains, blinds, rods
- Logs or wood for fireplace
- Warranties for appliances etc
- Light bulbs
- Gardening tools
Don’t Leave
- Trash inside or out
- Any food in the fridge, freezer, or pantry
- The oven dirty
- Dishes in the dishwasher
- Christmas décor in the crawl space
- A dog in the closet (don’t laugh, this happened!)
- Explosive materials (again, this happened!)
- Junky tree house or kids fort
There of course, could be other things too, and your contract may have specifics in it where it asks to have the tree house left, or asks that you remove everything including the “do’s” on this list. These are basic guidelines to keep in mind. If there are things that you want to leave with the house, and you just aren’t sure about it, ask us….we will get you the right answer.
The home should also be in broom-clean condition before recording, unless the contract stated the home would be professionally cleaned. If no mention is made in the additional comments of the contract in regards to cleaning then you should plan to remove all personal property (see above), remove all debris and trash, and vacuum the carpets and/or sweep the floors, and wipe down countertops. Think of this as a courtesy to the buyer, but the expectation is that there may still be additional cleaning needed by the new owner. If the contract states that the home will be professionally cleaned, then you have agreed to hire cleaners to come in and do the job. If the contract reads that the home should be cleaned in a professional manner then you can do the cleaning, but here is the expectation: The walls, surfaces, floors, appliances, and furnishings should be dust and dirt free, bathrooms and kitchens should be scrubbed with cleaning products, and there should be no substantial additional cleaning necessary following transfer of title.
Click here for a list of Cleaners we recommend.
Step 13 - Amendments & Extensions
Step 13 - Amendments & Extensions
Amendments and extension to the contracts are typical and quite normal. Things change. It can be as simple as a name change – Sometimes, buyers need to change the names on the contract to maybe just one buyer, or from one to two buyers. Sometimes there is clarification issues that need to be addressed by amendment and other important things. Extensions are unfortunately common. We try and estimate closing dates, but we can be off. Holidays, additional information that the lender needs from the buyers and even title issues can hold up closing. Everything must be worked through and everyone must agree on the extensions. We don’t want you to be out of contract, so we may have to nag you about this when an extension must be written.
If at this time, you realize that one of the parties to the contract won’t be available to go to closing, you will need to let us know. Other arrangements can be made, but we need as much notice as possible. If a power of attorney is needed, we can have one prepared for you.
Step 14 - Closing & Signing Prep
Step 14 - Closing & Signing Prep
Key things to note:
- All parties on the contract must be present at closing unless you have a Power of Attorney (POA)
- We will know the exact amount of your proceeds before you arrive at closing
- You will have your proceeds the following business day after closing
A few days before closing, you will be notified by us that “The CD” has gone out. The CD is a Certificate of Disclosure that the lender uses to disclose to the buyer all their fees and their new payment. This CD lets us know when we can estimate closing, because buyers have a mandatory 3-day review period that they cannot waive. After this 3-day period, closing can be scheduled. This is a good time for you to call your utility companies and your insurance company and let them know you will be canceling services within the next week.
Click here for a list of utility companies.
Once we have set up your appointment with the title company, we will let you know where to go and what time to be there.
Click here for a list of the local title companies and their addresses. You will need to bring a picture ID with you; a valid driver’s license, passport, military ID, or other government-issued picture ID will work. Finalizing the process includes reviewing all closing documents and ensuring both parties have copies. We will be at closing with you to answer any questions that may come up.
When the transaction has closed, it will be the next business day before the transaction records. At the closing table, the escrow officer will ask where you want your proceeds to go:
- Into your local bank
- Wired to a different bank
- Have a check ready for pick up
- Have the funds mailed to you
Step 15 - Keys & Recording
Step 15 - Keys & Recording
Key things to note:
- Leave all keys in the house or with the title company
- Leave all garage door openers in the home
- Leave any keys to pad locks, sheds etc in the home
- Leave any mail keys, or let us know how you receive mail
As the seller, you have the keys until recording. The best thing to do is to leave the keys with the title company when you go to closing. Your friendly and courteous closing agent will keep the keys until it records, then give them to the receptionist for the new buyers to stop by and pick them up. Any extra keys, shed keys, garage door openers, etc. can be left in the house on the kitchen counter. Many new home buyers change their locks, however it’s still important that you gather up all the keys and leave them with the new owners, and they will make that decision.
Recording occurs the next business day after you sign, and that is when your closing proceeds are made available to you. You can now close this chapter of your life and move onto the next!