Home Sales Steps and Process
Here is a handy general outline when selling your home. Some general tips and helpful guides to help serve as reminders for a successful sales process.
Refer to this handy list to get you through the selling process.
- Calculate your selling expenses.
- List the repairs and projects you’ll have to do to get your home in selling condition and estimate the costs of hiring supplies and contractors.
- To get top dollar, consider remodeling projects and green upgrades that increase your home value.
- Expect to pay about 7-10% of the home’s sale price in closing costs, including real estate agent commissions, transfer taxes, filing fees, notary fees, loan reconveyance fee, filing fee, and prorated property taxes. (Some apply, others dont. When opening escrow exacting fees become apparent)
- Factor in these costs:
- Professional home inspection
- Capital gains tax
- Mortgage payoff penalties
- Staging and marketing expenses
- Moving expenses
- Costs related to getting a mortgage for new home (If apply)
- Plan your selling strategy.
- Determine how fast you need to sell your house and how much money you want to get from the sale. This will be determined from market fluctuations based on available buyers and comps refreshed monthly. The longer it takes to get your home ready, the more the market will fluctuate. Hopefully available buyers and any changes are to your benefit.
- List with your Real Estate agent, Craig Bassignani to list your home on the multiple listing service (MLS) and start mass marketing to reach as many prospective buyers as possible. If the home, price, area and amenities fits their needs chances are they will schedule an appointment to view..
- Consider waiting to review all offers on a specific date in a hot sellers market.
- Determine your home’s strengths and unique features and we will promote them in all advertising.
- Prepare and “stage” or prep the home.
- Have a yard sale. Sell, donate or trash everything you don’t need.
- Make necessary repairs.
- Make improvements to increase your curb appeal, i.e. the home’s external attractiveness when viewed from the street.
- Hire a professional home stager or we offer staging tips.
- Declutter, depersonalize and decorate every room and outdoor areas so buyers can imagine themselves living in the home.
- Paint interior rooms neutral colors.
- Replace outdated lighting fixtures and window treatments.
- Keep the home in show-ready condition at all times.
- Review purchase offers.
- For each offer, review the proposed offer price, pre-approval letter, contingencies, earnest money amount, proposed closing date and offer expiry date.
- Make counteroffers and negotiate.
- Approach each offer as an opportunity to negotiate.
- If you won’t budge on price, offer financial incentives that don’t require cash out of your pocket, such as paying for part or all of the buyer’s closing costs, repairs found during the property inspections or points.
- Offer to include furniture, appliances, window treatments or lighting fixtures.
- Preparing for closing.
- Create a formal plan for handling home repairs if needed or are requested and you agree, including when they should be made and who pays for them.
- Clean and prepare the home for the appraisal and home inspections. **Water heater needs to be strapped per code and smoke and carbon monoxide detectors installed before inspections and appraisal!!!
- Title company will order a title search, request payoff information for your mortgage and other liens on the home, prepare and record documents, hold and disburse funds and prepare closing statements.
** After all buyer due diligence is finished: Standard time is 17-24 days, but could vary.
BUYER INCREASES DEPOSIT AND REMOVES ALL INSPECTION, LOAN, and APPRAISAL CONTINGENCIES and increases deposit and set to close (Usually 1-2) weeks
- Prepare for the final walk-through inspection.
- Sign the closing documents and move out of your home.
- Keep copies of your documents for reporting the sale on federal and state tax forms.
NOTE*** Most offers come with buyers requesting closing costs to help offset ever increasing down payments associated with home buying. In fact, if you are going to purchase a home, chances are you will be asking for closing costs credits too. These are paid at escrow from seller proceeds. *Lenders have allowable limits.
READ THIS!!! The sale/purchase process will have developments specific to each transaction. Inspections and the home loan process have the most unpredictability in any real estate transaction. I act as the middle man on your behalf to help mitigate each occurrence. We are on your side and developments unforeseen will materialize, we just deal with it.
Seller Obligations When Offer Accepted (Filled out signed and acknowledged forms needed)
My job is to schedule and accommodate process below: Forms and Procedures
- Disclosures on home (Transfer disclosure Statement – Seller Property Questionnaire) – Or exempt status if you are a landlord
- My agent visual inspection of any defects of home/property
- FIRPTA Form Filled out by sellers (Stating you are NOT a non-legal resident)
- NHD – Natural hazard disclosure (I order this and is paid at close of escrow)
- Water Conserv/CarbonMon (Speaks to water conservation and Carbon Monoxide detector installed)
- Sonoma County Disclaimers and Disclosures (General info on buyer bewares and inspections recommendations)
- SBSA – Statewide Seller and Buyer Advisory (More General info on buyer bewares and inspections recommendations)
- Water Heater/Smoke Detector (Water heater to be strapped per local code and smoke detector installed at hallway and at bedrooms)
- Lead Paint Disclosure (For homes built pre1978)
- 5 Booklets – (Residential Environmental Hazards – Protect your family from lead In your home – What is your home energy rating? – Homeowners guide to earthquake safety – Property transaction booklet) I send these on your behalf.
- Preliminary Title report generated by buyer from Title co./Escrow holder showing clear transferrable tile or any easements or restrictions that convey with the property. Lender will loan on clear, and unencumbered title only..
- Buyers agent visual inspection of any apparent deficiencies of home/property.
- Any reports, home inspections, etc signed and acknowledged by both parties.
NOTE*** Water heater needs to be strapped per code and smoke and carbon monoxide detectors installed before inspections and appraisal!!! Copy and paste this link for strapping http://www.seismic.ca.gov/HOG/waterheaterbracing_08-11-04.pdf (sets can be bought at hardware stores and big box home improvement stores)
The installation of smoke detectors should be placed on each floor in non-sleeping areas. In addition, one smoke alarm must be installed in each room where sleeping occurs and one smoke alarm should be located in each hallway that leads directly to sleeping rooms.
NOTE*** All subject to change in an unperfect world. 🙂