Selling a Property
Selling a property is a process of resolving many conflicting demands to your advantage!
To assist you in establishing a plan to sell your property, we have a 7 step process that will help you sell your property at the Highest Market Value in a time frame that meets your requirements.
Jim Foster and his team are here to assist you through the entire real estate process!
7 Steps to Selling your Property:
1. Are you Ready to Sell?
2. Select a Real Estate Broker.
3. Determining the Listing Price.
4. Marketing Your Property.
5. FAQs-Frequently Asked Questions.
6. Negotiating/Accepting the Offer.
Step 1 - Are you Ready to Sell?
You are ready to Sell when:
You have completed your fact gathering process.
You are confident that your interests will be represented to your advantage.
You are comfortable with the Real Estate Broker you have selected to work with.
The Selling plan you have developed meets YOUR needs!
Step 2 - Select a Real Estate Broker:
The terms Agent, Broker and Realtor are often used interchangeably but have different meanings. In Colorado a person must be licensed in order to represent buyers and sellers Real Estate, unless they are representing themselves in a transaction. Standards set by the State of Colorado to cover the minimal education, examinations and experience needed to become licensed.
In the Denver area, the Agent, Broker and Realtor must be a member of Metrolist in order to have access to the MLS system and agree to collectively share the information on all houses listed for sale . This is done through the MLS or Multiple Listing Service.
Interview prospective Brokers to determine who you would like to represent you. Remember some Brokers are full time Agents, while others are part-time. It is very beneficial to you to utilize the skills of a real estate team of 2 or more brokers, who can truly give you seven day a week service. Individual agents will hand you off to someone on the days during the week that they take off from work and if they go on vacation. These brokers may not have ever met you or have knowledge of your specific situation and transaction.
Jim Foster has a team of agents who work with him and one of them is always available to assist you seven days a week.
Please contact us at 303-229-5347 with any questions or to schedule a free consultation.
Step 3 - Determining the Listing Price:
Establishing the listing price to ask for your property is one of the most important steps you will take. If your price is set too high (even in a very strong sellers market) your listing may become stagnant and get a reputation of being overpriced. If you set it too low, you will effectively be giving away your money. Establishing a price balancing between these two pricing levels will be our objective.
We will provide you a complete CMA (Comparable Market Analysis), prior to establishing a listing price for your property. This report will show you both actual sale of properties similar to yours in the last 6 to 12 months, plus it will show you what homes are currently on the market in competition with your home. We will provide you with a list of homes, most comparable to your home in terms of square feet, year built, condition of the Home, proximity to you home, lot size, date of sale or time on the market.
We can also set showings on other similar properties for sale in your neighborhood and actually visit these homes with you so you can see what your will be competing against, prior to setting your price. We will also provide guidance to establish a price point which will meet the requirements of appraisers. Remember that most homes purchased will have a mortgage lender who will require an independent appraisal prior to approving a loan for the buyer for your property.
During the process of finalizing the listing price, we will prepare an “Estimated Net Proceeds Analysis” for you. This will let you know the cash you may expect to have available to you after the close of sale for your home.
Step 4 - Marketing Your Property:
Consideration of Current Market Conditions for your home:
Are home prices in your area trending upwards or downwards?
Are homes selling quickly or slowly?
Will your home be on the market in the spring and summer months or during the slower winter months?
What are current interest rates for mortgages?
Will you be selling in a Buyers or a Sellers market?
Is the local job market strong or are employees fearful of staff reductions?
Do you need to sell your property quickly or do you have alot of time to wait for an offer?
Is it necessary for you as Seller to provide "incentives" such as a "pre-home sale" inspection, Home Buyers Warranty, financing assistance, Selling Agent bonuses? Many of these factors will be weighed in the First Step in marketing your Home - STEP 3 Determining the Listing Price.
Setting the Stage to Sell your Home:
Consider what you look for when looking for a home to purchase - Visual appearance, odors and noise all factor into your impression. Imagine yourself walking up to your home as though for "the first time":
What do you notice?
How do you feel about what you see?
Is the home inviting?
Is the home well-maintained?
Would you be inclined to buy this home?
Methods used in Selling of your Home:
List your Home with the MLS within 24 hours of having a signed listing Agreement.
Prepare Virtual Tour of your home for use on our website and other National websites.
Prepare marketing materials about your home.
Distribute the marketing materials.
Notify your neighborhood about your home.
Hold Open Houses as appropriate.
Notify National Referral Companies in the Metro Denver area.
Cooperate with ALL Real Estate Agents.
Providing yard signs and Brochure boxes in your front yard.
Advertise home: media and frequency depends on property and market.
Prepare Property Profile report to be available to Buyers as they visit Home.
Step 5 - FAQs-Frequently Asked Questions:
1. Once we establish the Listing Price, can the Price be changed?
YES - The initial listing price is only the start. If you find your are getting "overwhelmed" with showings, we may decide to raise the Price before an offer comes. Conversely, if few showings and no offers are coming in, we may decide to lower the Price. Market conditions constantly change, you have the flexibility to meet these changes.
2. Should I be available at the Home when potential Buyers visit?
NO - When potential Buyers tour your home, they are there for the purpose of determining if your home meets their needs. As a general rule, they are with their Agent and wish to be totally unencumbered to speaking objectively about the home with their Agent. Your presence can prevent Buyers from speaking openly about their impressions or to ask questions they may have.
3. How effective is it to have an Open House?
It depends - Many factors are at work here. Generally, it is always good to have a few Open Houses.
4. If I don't have an acceptable Offer within the first 30 days, what does that imply?
It depends - How many showings are you getting? How many other homes in your neighborhood are selling, Have interest rates or other economic conditions changed in your area? What is the time of the year? Has your home been entered into the MLS and been given national exposure through the internet? If you are not getting activity after 30 days , you need to seriously review the initial marketing considerations and efforts.
5. What expenses am I responsible for when I sell my Home?
Title insurance policy; payoff of your existing mortgage(s) including prepayment penalties, if any;Broker's commissions; unpaid property taxes for the current year; repairs which you have agreed to do; other miscellaneous items which you have accepted to pay.
6. Do I have any Security concerns about letting potential Buyers visit my Home when I am not here?
It is strongly recommended that you NOT leave jewelry or other valuable items visible for Buyers visiting your home to see or take. While each Agent arranging for a visit to your home with a Buyer will be identified and registered, it is always best to avoid the problem of "tempting" anyone visiting your home.
7. When I receive an Inspection Report from the Buyer with a list of items to be corrected, am I obligated to fix all of the requested items?
All inspection items fall into one of two categories: 1. Health, Safety and/or Structural issues and 2. Cosmetic and/or Normal Maintenance issues. Generally, health, safety and/or structural issues should be repaired; "cosmetic" items require a judgment call. If you don't complete the Health, Safety and/or Structural issues, the Buyer will void the contract and you will be faced with the same issues with the next Buyer. Cosmetic and/or Normal Maintenance items are a function of cost and ease with which you can find a new buyer without fixing the items listed. Many times, the issues can be resolved by agreeing to a monetary settlement, with the Buyer actually having the work completed.
8. If the Appraisal prepared for the Buyers Financial Institution does not support the agreed Sale Price, what happens?
In Colorado we cannot, by law, have contact with the appraiser. We can, however, speak with the selling agent about what the appraisal says, and go from there. If we cannot reach a satisfactory solution, then either the Buyer is required to come up with a larger down payment or the Seller needs to agree to reduce the price. If all else fails, then the contract will be void, and the marketing efforts to find a new Buyer continue.
9. What does it mean to have a "Cloud on the Title"?
During the closing process on the sale of your home, Seller is required to provide a Title Opinion stating that Seller does in fact have the ability to convey Title in the property being sold free and clear to Buyers. If during the examination of Title, it is discovered that an encroachment , lien or easement on the property has been placed of record; it is said to place a "Cloud on the Title". These items must be resolved prior to completing the sale of the property.
10. I have read newspaper article's refer to the Median Price of a home vs the Average Price of a home, what is the difference?
These statistics are often referred to as a means of indicating the trend of the housing market pricing. The median price is the midpoint of all homes sold in a given period. Midpoint means half the homes sold for higher prices and half the homes sold for lower prices. The average price of a home is calculated by adding the price of all homes sold and dividing by the number of homes sold in the same time period. In a given period, the average home price may increase if fewer but more expensive homes sold, while the median price of homes may not be appreciating. It is helpful to understand the difference when establishing a price for your home.
11. What is the difference between the Square Feet of my home and the Finished Square Feet of my home?
Square feet as generally defined in the Metro Denver area as all of the square feet "above ground". Basements are not included in the stated square feet for a home. If all or a portion of the basement is finished, this amount of square is added to the square feet of the home and is called the Finished Square Feet. The one notable exception to this rule is in mountain neighborhoods, where a "walk-out" basement with finished square feet which may be included in the square feet of the home. So be sure to clarify exactly what square footage is being stated in the marketing of the property and compare accordingly.
12. What is the Seller's Property Disclosure form?
This form is completed by the Seller of a property, and is be provided to any Buyer at the time a Purchase offer is accepted. The Seller is required to provide notification to Buyer about the condition of his home including ALL KNOWN material defects.
13. Am I affected by the Lead Base Paint disclosure rules?
If construction of your home commenced prior to January 1978, you are required by HUD to complete a Lead Base Paint disclosure form prior to entering into a Contract for the Sale of your home. The penalties for not doing this may be severe and are established by federal statute.
14. What is the difference between a Listing Agent and a Selling Agent?
The LISTING Agent is the Real Estate Company (or individual) you select to represent your interests exclusively in the sale of your home. The SELLING Agent is the Real Estate Agent which actually brings a bona-fide Buyer with a Purchase Offer to Buy your home. Usually, the Listing Agent and the Selling Agent are two separate entities, although both the Listing and Selling Agent may on occasion be the same.
NOTE: The questions and answers above are provided for your general information only. We do not provide Legal or Tax advice. You are strongly recommended to seek Independent Legal or Tax advice for any matters pertaining to your specific circumstances and conditions.
Step 6 - Negotiating/Accepting the Offer:
Once you receive an Offer on your home, we will review all the terms and conditions of the Offer with you. If any of the terms or conditions of the offer are different than the terms indicated in the MLS and are not acceptable to you, you have the right to Counter the initial Offer made with terms and conditions which meet your requirements.
Through this process of reviewing, countering and/or accepting the Purchase Offer, we will work closely with you to answer your questions as they come up.
Once the purchase offer is countered and/or accepted, the clock starts running for many items needed to meet the requirements of the agreement and your protection. We will immediately order the title commitment to be delivered to the buyer. As the buyer completes their requirements, we will be sure to review the results of the appraisal and the inspection report with you.
If, for example the results of the Inspection Report are not reasonable, you will have the option not to perform any requested items, thereby giving the Buyer the option to waive the items listed or to void the Contract. We will be available to advise you on all such matters along the way to closing.
Step 7 - Closing:
Closing on the property is usually handled by the title company which issued the title opinion. The Seller has the choice of selecting the title Company used. We will be with you to provide answers and assistance for you during this process which usually takes from 1 to 2 hours. We will be sure to review all settlement statements with you as Seller for accuracy and reasonableness.
Time of possession is established at the time of negotiating the original offer. In Colorado, it is customary for the Buyer to take possession at closing or up to 2 days after closing. If the Seller wishes to stay in the home beyond these dates, this is negotiated between the Buyer and the Seller and involves a rental fee payable to the Buyer after closing.