FAQ's for SELLERS

---

Is now the time to sell?

There are many compelling reasons for selling your home now. One reason to sell now is to move up to your dream home. As you know, when the real estate market drops by a specific percentage, the more expensive homes decrease more in dollars than a less expensive home. This can be a real opportunity to take advantage of the disparity in prices to acquire the home you have always desired.

Another reason is relocation for a career move or because of unforeseen circumstances. We will find the buyer looking for your home while getting you the highest and best price for your home. There are as many reasons to sell now as there are buyers looking to purchase now.

Prices have fallen so much in my neighborhood that I’m "upside-down" on my mortgage – how do I safely get out of this mess?

The first item to address is to call us for a free consultation. We will gather information from you and assess your options. One option is a short sale. A short sale is when the agent can convince the bank's investors who holds the note to take less than is owed on the mortgage (short of what is owed). This takes skillful negotiating skills on the part of the agent, as well as tenacity, to complete. Our company has the skill, knowledge, and experience to complete a short sale for a client that owes more than the house is worth. This type of sale takes several months to complete, allowing you to make arrangements and plans for your future.

What is a "Deed in Lieu of Foreclosure"?

A "Deed in Lieu of Foreclosure" happens when the bank agrees to take back the home and write off the loan. The process again involves skillful negotiations with the bank and investor. The banks will sometimes give a credit to the borrower for moving expenses or a few months’ rent if the owner leaves the home in "broom clean" condition. "Broom Clean" means not leaving items behind that the bank would have to pay a service provider to clean up. It also means not causing any damage to the home or structure of the home.

How does a foreclosure affect my credit?

A foreclosure will have a negative impact on your credit. You have defaulted on a loan and that default is reflected in your credit score. Sometimes there just isn’t any alternative. You have to hit the reset button and start over.

How do I price my house to sell?

Pricing a home to sell is as much an art as a science. First, consult a Realtor like us. We will do a comparative market analysis for your home, also known as a CMA. We look at all kinds of data to recommend a price. A few items we look for are the homes that have sold recently in your neighborhood and the prices at which the homes closed escrow. We also look for similar homes, how many days the house was on the market, and price per square foot at which the homes were sold. Depending on how quickly you would like your home to sell, we employee strategies to make your price the most attractive to active buyers.

Something to keep in mind: There are three prices people look at:

First: "Active", which can be anything… even if it does not make sense for the neighborhood. Many sellers trying to sell their own home look at this price. It is an asking price and that is all it is. It is "fantasyland" because a seller can ask whatever they choose. This is another important reason to get an objective opinion from us.

The second price is "Pending". All this price reflects is an asking price that brought an accepted offer. The actual selling price is kept secret in case the deal falls apart. Knowing the accepted offer price could put the seller at a disadvantage. And, this secret is part of the fiduciary responsibility of the agent to be kept secret.

The real price that is the reality of real estate selling is the "Sold" price.

This is what the market will bear at that point in time.

Why do I need to use a real estate professional in this market?

As explained in the last FAQ, you require an objective opinion for pricing your home. Selling a home can be a very emotional experience. When you have a professional real estate agent, a Realtor, assisting in selling or buying you can rely on their expertise to get you the very best price, whether selling or purchasing. Among many things, you can count on the contract being air tight, all necessary disclosures being issued on your behalf, a professional transaction coordinator to keep track of timelines in the contract, and to coordinate all the contractors, repairs, and orderly flow of paperwork.

What must I disclose about the property?

You and your agent must disclose any material fact, known to either of you, which could affect the value of the house.

Remember: when in doubt, disclose.

Usually people understand when you disclose, most home have something to disclose. Things turn ugly when an item is not disclosed like when a neighbor comes by just after a purchase and says to the new owner "Did you know there was a mold problem last year because of a roof leak?" Not good! An old axiom states, "If you don’t disclose all known facts, you’re not selling a house, you’re buying a law suit!"

How do I "stage" my home?

Staging your home means putting the best face possible for prospective buyers to walk in and fall in love. We can help you stage your home. We know what to look for that needs to be adjusted. Or, if you like we can have the home professionally staged for a fee.

Must I complete all the repairs that a buyer requests?

No; as the California Association of Realtors form states, it is a "Request for Repairs," not a"Demand for Repairs." However, it can turn into a demand if the buyer will not buy unless the item is repaired. If the request is for something to do with a safety issue then you would want to repair it to avoid future problems. Repair items are negotiable. Our agents are very good communicators and this can require unemotional requests.

Should I have my house inspected prior to putting it on the market?

You will more than likely have to have an inspection before the buyer will purchase the home. The buyer is usually responsible for the cost of the inspection, however this is also negotiable. You can wait for an accepted offer before having an inspection done by the buyer. All findings from inspections must be disclosed.

My house has many more upgrades and improvements than the last house that sold around the corner – can I add onto the price to reflect the upgrades?

Yes you can, but with caution. You will want to consider all the consequences of increasing the price. This is a discussion you will have between the agent and you.

How do I negotiate with investor buyers who are looking to get a killer deal on my property?

Your agent will be your spokesperson and that is an important part of a real estate agent's job. Our agents will always have your best interests at heart. Remember you can always say "No!" The person with the power to say "no" has the real power. That is why people get nervous when they counter offer; they may get a "no" and lose a buyer or seller. Our agents can get a "no" and turn it into a "yes" many times. It is not always what you say, it is how you say it.

How long does a bankruptcy stay on my credit report?

It is recommended that you consult a bankruptcy attorney to get an accurate answer for this question.

After a foreclosure or a BK, will I ever be able to buy a home again?

Yes! And the amount of time you have to wait may surprise you in a good way. You will always want to consult an attorney with legal questions.

If I receive "multiple" offers, must I tell everyone the terms of each offer?

No, this is the beauty of a multiple counter offer situation. Many times people will get into a bidding war and the price will escalate even to the surprise of the principles.

What are the tax consequences for selling a home?

Once again, we could give our personal opinion; however this is beyond the scope of a real estate agent’s license. We will provide you general information, however you will do well to consult a tax attorney for your specific situation.

What are the closing costs in a typical sale?

The answer to this question is, "it varies". It depends whether you are a buyer or a seller. Typically, closing costs are slightly higher for a buyer depending on how many additional inspections they have performed, as well as loan fees, etc. You can always ask your agent to get a good faith estimate from escrow for closing costs. We are more than happy to provide this service at no additional cost.

What must I expect to pay an agent for a commission?

Commissions are always negotiable between the principles and the agent.

Will I have to have open houses?

No, you do not have to hold your home open; however it does help give the home more exposure to potential buyers. Our agents and staff are always present during an Open House, so you can rest-assured that everything is secure while you are out for a few hours. It’s a great time to catch a movie!

Must I have a sign and a lockbox on my home?

No, you do not have to have a sign or lockbox on your home. However, please consider you want to sell your home now. To accomplish that task you will want to make the sale of your property as visible as possible. And, you will want to make showing your home as easy as possible for other agents. A sign and a lockbox are for your benefit. We can even set a timer on the lockbox remotely so agents only have access at specific days and times. Our suggestion is make it easy, and make it sell!

I have a pet who is friendly – is it okay to leave him home while the home is being shown?

Yes; however even if the pet is friendly they can become nervous when people they don’t know are coming and going. It is best to confine the pet or have a friend pet sit while your home is for sale and you have to leave.

I don’t even know what questions to ask! May I sit down with you to learn more about the process?

We are happy to sit down with you to discuss the details and timeline involved with selling your home. Selling your home can be a stressful event in your life, and we understand. That’s where we do the heavy lifting. Call now, and let’s get started.