Home Sellers Guide

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SURVIVAL GUIDE

WHAT'S inside ABOUT US BIO

HOME SELLING PROCESS STEPS IN THE PROCESS

PREPARING TO LIST YOUR HOME HIRE A GREAT REALTOR® PRICING PHOTOGRAPHY

LISTING YOUR HOME PAPERWORK ADVERTISING WHERE BUYERS FIND THEIR HOME MAXIMUM EXPOSURE

AFTER LISTING YOUR HOME SHOWING YOUR HOME OFFERS NEGOTIATIONS

CONTRACT TO CLOSING INSPECTION FAQ’S GETTING READY TO MOVE APPRAISALS CLOSING REVIEWS

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home selling PROCESS

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PRO CES S

HIRE A REALTOR & LEARN YOUR OPTIONS Hiring a great Realtor ® isn’t about just selling your home, but it’s all the tips and tricks of: Marketing Appraising at value Saving the deal from sinking because of buyer’s financing Industry practices set in place to save you from liability ...and the list goes on.

Take your time, do your research, and make sure you click with your real estate agent.

PRICING Meet with your Realtor® and discuss pricing and marketing strategies.

Have your Real Estate Agent conduct a competitive market analysis (CMA). Talk to your agent about what homes would be competing with your home and the price range of homes already sold near you. Keep in mind...buyers DO NOT CARE WHAT YOU NEED TO GET INTO THE NEXT HOME! A buyer is concerned with maximizing their home investment.

The key is to meet somewhere in the middle.

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PREPARING TO LIST YOUR HOME Get your home show-ready! Whatever you do, DON’T SKIP THIS STEP! The goal is to take your house from a home you live in and make it a buyer’s canvas to paint their own family in. From repairs, staging, professional photography, to setting up your home for every showing...preparing your home to list is the key to selling at the top value in your market in the shortest amount of time! In today’s market, home buyers are searching online first. Preparing for photography is the bait to attract buyers to your home over the competing homes in the market. Setting the stage for each showing is the HOOK! ADVERTISING & MARKETING Now that your home is ready for professional photography, it’s posted for sale and advertised. Now, you wait for offers, and hope they come in droves! FYI...Not all markets have multiple offers at an open house like you see on HGTV! Ask your agent about what to expect.

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SHOWINGS Stage your home with each showing creating a welcoming experience for each new prospective buyer.

RECEIVE OFFERS, NEGOTIATE & ACCEPT Choose an offer, negotiate, and/or accept.

APPRAISALS & REPAIR NEGOTIATION After any repairs are negotiated, if the buyer is using financing, the buyer’s lender will order appraisals. The buyer, or their agent will send notification, then it's time to start packing...AND FAST!

WHEN MOST OFFERS ARE RECEIVED

1 2 3 4 5 6 7 8 9 10 11 12

WEEKS ON MARKET

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PROCESS

ACTIVITY LEVEL

CLOSING DATE Closing can come very quickly after the appraisal is returned to the buyer. You will want to vacate the house and leave it clean. Provide any paid invoices for repairs made. Keep in mind you may or may not receive proceeds from the sale the day the documents are signed. It may be the next business day to leave time for documents to be approved and scanned by the lender.

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ESCROW STARTS & INSPECTIONS ARE ORDERED The signed contract goes to title (escrow). Usually, buyers at this time will start scheduling home inspections.

preparing to list YOUR HOME

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hire a Great Realtor

®

A PROFESSIONAL AGENT SHOULD: Help determine pricing Effectively and promptly communicate throughout the process Extensively market your home Offer expert advice on ways to prepare & show your property Assist in finding home-related services you may need Provide feedback from all showings Update you on market changes affecting the sale of your property Help pre-qualify potential buyers Present & evaluate each offer with you Negotiate the highest possible price & best terms in partnership with you Manage contractual, title, and transaction details Ensure that all mandatory items are signed, sealed & delivered on closing day Assist with your relocation if needed

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pricing SELLER WANTS AND NEEDS Regardless of how much you paid for your home, or the renovations you’ve made, price will always be determined by what the market will bear, which is based on the comparable homes in your area.

Pricing a home is an art that is honed with time and experience. A great Realtor® will be able to price a home to sell at the highest value without overpricing and costing time and money.

It’s important to remember that a buyer has a completely different set of needs than a seller. A buyer is trying to get the best deal, while a seller Is trying to get the highest amount possible for their home. It’s important to be realistic on The price of your home, when calculating needs for future plans.

COUNTY APPRAISAL ASSESSMENTS OR APPRAISED VALUES County appraisal assessments or tax values have nothing to do with market value. In most counties, county appraisal districts are not up to date with every home and what they might bring in today’s market. They are adjusted when the county appraiser gets out to make adjustments, or when there is a sale or change on a property. Sometimes this value can be overstated or understated in comparison with the real estate market of the area.

ADVERTISING “AS-IS” There is a time for selling “as-is”. Advertising your home “as-is“ to avoid doing minor repair could cost MUCH more than the repairs. “As-Is” advertising is screaming for investor offers, which you should expect to be well below market value. It’s also a deterrent for home buyers who are looking for “move-in ready”.

Sellers should give considerable thought to advertising “as-is”, and just take repairs on a case-by-case basis if there are any requested by the buyer or their lender. “As-is” pricing will normally bring a below market sale price.

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pricing PRICING STRATEGY-DON'T RELY ON ZILLOW ZESTIMATE In some states, Zillow may be accurate. However in Texas, Zillow Zestimates are not dependable!

Here's why. Texas is a non-disclosure state. This means that sale prices are not published or recorded as public information, therefore Zillow does not have access to the correct information to determine values.

PRICING RIGHT FROM THE START If your home is priced at fair market value, it will attract the the largest number of potential buyers in the first few weeks.

If a home is overpriced it will attract the fewest number of buyers looking to purchase a home.

This is due to the fact that the majority of home buyers look at a lot of homes, and they quickly get a feel for the price range that homes sell for in a given condition in a location.

*MV = Market Value

ASKING PRICE compared to market value

% OF BUYERS

+15%

10%

+10%

30%

*MV

60%

-10%

75%

-15%

90%

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in the market

preparing to list

PHOTOGRAPHY

MAXIMIZE YOUR HOME'S APPEAL & PREPARE FOR PHOTOGRAPHY You only have one opportunity to create a first impression! The goal is to attract as many buyers as possible. A clean, neutral, and streamlined look helps buyers to imagine what life would be like in your home. Following the points below will ensure that professional photography and in-person showings are a win!

EXTERIOR Wash or paint the home’s exterior Paint the front door and trim Keep the yard nicely trimmed & free of clutter Remove all vehicles from view and empty driveway Weed and freshly mulch garden beds Clean interior and exterior windows Apply fresh paint or stain to wooden fences Powerwash porches, ceilings, and concrete

INTERIOR Remove personal items, excessive decorations & furniture Pack all personal photos & interesting collections Replace or clean carpets Get rid of clutter and organize and clean closets Keep only the minimum amount of decor Replace outdated ceiling fixtures, and clean lighting fixtures Minimize and clean pet areas in the home Be sure that all light bulbs are in working order In small bedrooms remove everything but the bed

FRESHEN THE PAINT & EXTERIOR FIXTURES A new coat of exterior paint seriously helps a home’s curb appeal.

It isn’t a low-budget item, but if you can swing it...DO IT. If you can’t paint the entire home, paint the trim. This is a relatively simple and provides plenty of pop.

Update exterior light fixtures. This can quickly give a home an updated look.

Put a fresh coat of paint on the front door.

Consider neutralizing wall paint. Light tan and light grays are best.

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listing YOUR HOME

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PAPERWORK

COMMISSION Commission is a closing cost that is typically paid by the seller. It is not a fixed amount and is most often NOT due until your home sells & closes. While tempting to avoid the commission fees and sell your home yourself, this may leave you with fewer potential buyers (let alone qualified buyers), prone to making emotional decisions, negotiations that are not done properly and not having enough time to dedicate to finding a buyer.

Listing with an agent is likely to result in a quicker sale and more accurate pricing when it comes to the market value of your home, and may even inspire a bidding war for your property.

MULTIPLE LISTING SERVICE (MLS) The MLS is a PRIVATE database created, maintained, and paid for by real estate professionals to help their clients buy and sell property. In most cases access to information from MLS listings is provided free of charge by participating brokers. Data that is not publicly accessible includes information that would endanger sellers' privacy or safety, such as seller contact information and times the home is vacant for showings.

SELLERS EXCLUSION LIST ITEMS THAT MUST STAY UNLESS EXCLUDED ON THE CONTRACT

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Curtains and rods Draperies and rods Valances Blinds Window Shades Window Screens Area Rugs Towel Racks Bathroom mirrors Mirrors Fixed in Place Decorative Mirrors Decorative Hardware Ceiling Fans Light fixtures Window Air Conditioner Other Heating or Air Conditioning Equipment Plumbing Fixtures: Water Softeners Built-in Kitchen Items: Coffee Pot Toaster Stove Dishwasher Toaster Oven Microwave Pot Racks Refrigerators (built in only)

Fireplace Screens or Doors Gas Logs or Rocks and irons Workbenches Shelves in Garage or Storage areas Shutters Awnings Attic Fans TV Antennae Satellite Dish Built-in Speakers Garage Door Openers and Controls Central Vacuum and Accessories All Swimming Pool Equipment Portable Spa Fountains Bird Baths Statues Lights in Yard Mailboxes Shrubbery and Plants Swing Sets Playground Equipment Basketball Goals

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Permanently Installed Outdoor Cooking Equipment Security system Other Permanently Attached Items Use and Care Manuals for Appliances and Equipment Unless otherwise specified, everything permanently attached to the property will be EXPECPTED TO REMAIN WITH THE PROPERTY. Be sure that any of the listed items that will not be included in the sale of your home is listed in the exclusions paragraph of your contract.

This means that you intend to retain or take from the property. It is important that you be specific, so add any qualifying information required.

SUPERIOR ONLINE EXPOSURE Buyers in today’s market begin their search online. When using me, not only will your home be featured in the local MLS, it will also be featured on the major 3rd party real estate sites, sending to literally hundreds of other listing sites, featured on our company website and worldwide with RE/MAX. EMAIL MARKETING Email marketing will be sent to our current buyer database of buyers searching for properties on my website. An introduction e-mail will also be sent within MLS to all Realtors® and other MLS participants drawing attention to your home as a new listing available to show.

PROPERTY FLYERS Highly informative and creative property flyers will be displayed inside your home. These help potential buyers remember the key items and unique features of your home after looking at several listings.

LOCK BOX Lockboxes are essential for the safety of all and providing other agents access to show your house whenever he or she needs to, rather than relying on you the owner for a key. Owners are also expected to vacate the property for showings so having a lockbox makes this process much easier.

SHOWINGS When we list your home it will also be signed up with a showing service that immediately communicates with you when a showing is scheduled. When feedback isn’t left, I will follow up with those agents requesting their feedback within 24 hours.

SOCIAL MEDIA MARKETING Engaging in social media has become such a large part of social interaction, so it’s very important that your home is featured where buyers are spending time. We will feature updates on your home on today’s top social sites which include and are not limited to: Facebook, Instagram, LinkedIn, and YouTube.

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SIGNAGE A sign will be placed in your yard.

ADVERTISING

NETWORKING A large percentage of real estate transactions happen with cooperating agents in the country. I will expose your listing to this market. One of the most important tools that Realtors® pay for is (MLS) Muliple Listing Service. This is a database that each Realtor® pays for that allows them to share your home with other Realtors® in the area. Instead of relying on one Realtor® to have a qualified buyer for your home, all Realtors® with MLS access in your area will have the ability to show your home to their Prospective buyers.

WHERE DO BUYERS find their home

29%

52%

REAL ESTATE AGENT

INTERNET

100% 6%

YARD SIGN/OPEN HOUSE SIGN

5%

FRIEND/ RELATIVE/ NEIGHBOR

6%

2%

1%

2020

HOME BUILDER

DIRECTLY FROM SELLER/ PRINT KNEW THE ADVERTISING SELLER

SOURCE: https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

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MAXIMUM exposure

GET FEATURED I will feature your home on the top home search sites, on social media and syndicate it to over 400+ other sites.

Homes that receive the top 10% of page views sell an average 30 days faster!

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after LISTING YOUR HOME

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SHOWING YOUR HOME

BE FLEXIBLE Be as flexible and accommodating to the buyers schedule as possible. We want to avoid having missed opportunities if at all possible.

DAILY CLEANING Keep up with daily messes.

Wipe down kitchen and bathroom counters before leaving for the day. Make the beds, do the dishes. Put dirty laundry in a hamper & throw in your trunk.

ODORS Avoid strong-smelling foods: Keep your meal prep as neutral and simple as possible.

FURRY FRIENDS Keep pet areas clean: Clean up after your pets immediately and wash their bedding regularly.

Hide pet food or litter. Not everyone is a pet person and it may hinder their ability to picture themselves living there.

TRASH Empty trash cans to avoid any odors. Try and empty trash cans nightly so that the home is fresh when you leave for the day (especially diapers).

TEMPERATURE Keep room temperature comfortable. This demonstrates to buyers that the HVAC is working properly.

PERSONALS Make sure you place all valuables, especially firearms, and prescriptions out of site and in a safe place.

VACATE Having a seller present can make buyers feel awkward.

Leave the home for around an hour with your children & pets as well.

SANITIZING STATION Place Lysol spray, wipes, and antibacterial at the front door for buyers to use.

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LISTING YOUR HOME

KEEP EVERYONE INFORMED Make sure everyone in the home is informed when showings are to happen so they can keep their spaces clean.

NATURAL LIGHT Open blinds and curtains and let in as much natural light as possible. Leave lights on before you leave for a showing.

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A few tips to help your home showings go smoothly as possible

OFFERS Price is just one of many considerations when deciding which offer is best for your home.

Here are some of the other factors that matter

LISTING YOUR HOME

CONTINGENCIES The fewer contingencies and the shorter the time period the better. Contingencies are "walk-away" clauses that may be included in a contract. Contingencies allow a buyer to back out of buying your home if certain conditions aren't met. Contingencies include the termination, financing, other homes to sell before purchasing, etc.

ALL CASH BUYER A cash offer is usually more appealing than a finance offer as the seller doesn’t need to worry about if the bank will approve the buyers loan.

PRE-APPROVAL Bank’s assurance for home sellers that the buyer can get the loan they need.

LOAN TYPE A conventional loan is often the least complicated which is an appealing choice for sellers. An FHA or VA loan can cause delays because they require certain repairs and approvals.

CLOSING TIMELINE You might need to close quickly to move on to the next adventure, or you might need to extend closing to allow time for next home to be ready. Choosing the offer with the closing time that fits your needs will be most attractive to you.

CLOSING COSTS Sometimes an offer comes in high, but the buyer asks you to pay a percentage of the buyer’s closing costs.

REPAIR REQUESTS A buyer can request repairs when the contract is originally written or with a change form known as an “Amendment”. Typically an amendment is sent after an inspection.

OFFER PRICE Full price or Higher is great, but other factors such as possession, when someone gets or gives keys, is something to consider as well as all of the other factors in the contract.

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EARNEST MONEY Earnest money is a sum of money paid by the buyer at the time of entering a contract which indicates a buyer has intent and ability to carry out the contract. Earnest money most often is applied against the purchase price, and may be forfeited if a buyer defaults on the terms of the contract.

OPTION MONEY Option money is money paid by the buyer for the option to terminate a real estate contract, and receive their earnest money as a refund. Option money is NOT earnest money and may be included in the contract.

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AFTER AN OFFER IS SUBMITTED

Accept the offer Decline the offer If the offer isn’t close enough to meet your expectations and there is no need to further negotiate.

Counter-offer A counter-offer is when you offer different terms to the buyer.

THE BUYER CAN THEN: Accept the counter-offer Decline the counter-offer Counter the offer You can negotiate back and forth as many times as needed until you reach an agreement or until someone chooses to walk away.

OFFER IS ACCEPTED You will sign the purchase agreement and you are now officially under contract! This period of time is called the contingency period.

Now buyers will begin their inspections, appraisals, surveys, and title search will begin.

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LISTING YOUR HOME

WE CAN:

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NEGOTIATIONS

contract

TO CLOSING TABLE

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HOME

INSPECTIONS WHAT IS INCLUDED

What to Know It is very typical for buyers to want to inspect the home they are buying. Buyers are not accusing sellers of hiding things. Simply stated, a home is one of the largest investments a buyer will make and it just makes sense to find out as much as they can about it.

ROOF & COMPONENTS EXTERIOR & SIDING BASEMENT FOUNDATION

All utilities should be left or turned on in order for the buyer to have the ability to inspect all systems.

CRAWLSPACE STRUCTURE

Home Inspectors are licensed through the Texas Real Estate Commission and therefore the buyer may show up without their agent for the inspection. Inspectors are vetted including background checks and fingerprinting, so you should have some peace about them being in your home.

HEATING & COOLING PLUMBING-CAN INCLUDE A CAMERA TEST ON SEWER LINES, GAS PRESSURE TEST, ***KNOW ABOUT HYDROSTATIC TESTING***

Texas home inspections are not PASS or FAIL

ELECTRICAL

Appraisers, in general, are who determine repairs required by the not home inspectors.

ATTIC & INSULATION DOORS, WINDOWS & LIGHTING

"AS IS" Being checked on the contract does not preclude a buyer from ordering home inspections or negotiating for repairs.

APPLIANCES (LIMITED) ATTACHED GARAGES GARAGE DOORS

BUYER CAN ACCEPT AS IS

GRADING, DRAINAGE & ALL STAIRS

BUYER CAN OFFER TO RENOGOTIATE

A SEPARATE INSPETION MAY BE COMPLETED FOR WOOD DESTROYING

BUYER CAN UTILIZE THEIR OPTION AND BACK OUT

INSECTS.

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FAQ’S ABOUT

INSPECTIONS

Frequently asked questions INSPECTION TIME FRAME TYPICALLY WITHIN THE FIRST 10-14 DAYS AFTER SIGNING CONTRACT. NEGOTIATIONS USUALLY HAPPEN WITHIN 5 DAYS. INSPECTIONS MAY TAKE 2-4 HOURS. COSTS BUYER TYPICALLY PAYS FOR THEIR OWN INSPECTIONS. THE BUYER WILL CHOOSE AND PURCHASE THE INSPECTION PERFORMED BY THE INSPECTOR OF THEIR CHOICE. POSSIBLE OUTCOMES INSPECTIONS AND POTENTIAL REPAIRS ARE USUALLY ONE OF THE TOP REASONS A SALE DOES NOT CLOSE. BUYER WILL ASK FOR REPAIRS TO BE COMPLETED BASED ON THE OUTCOME OF THE REPORT. LENDER MAY REQUIRE REPAIRS REPORTED BY APPRAISER ON GOVERNMENT LOAN TYPES. UPON COMPLETION MUCH OF WHAT IS ON THE REPORT MAY BE CODE VARIANCES. IF NOT COMPLETED A BUYER MAY CHOOSE TO EXERCISE THEIR TERMINATION OPTION. YOU ARE NOT OBLIGATED TO AGREE TO COMPLETE ANY OF THE REPAIRS UNLESS PREVIOUSLY STATED IN YOUR CONTRACT, BUT KNOW THIS MEANS THE BUYER MAY BE ABLE TO TERMINATE.

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Getting Ready to move!

Arrange for movers and schedule utilities to be removed after closing.

Start change of address.

DO NOT PACK THE FOLLOWING ITEMS: (Keys, garage door openers, mailbox keys, ceiling fan remotes, appliance manuals, etc.)

Order mortage payoff and any outstanding invoices for HVAC, windows, etc.

Make arrangements to be out of your home, and have it clean before heading to sign documents on closing day.

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APPRAISALS FACTS The buyer's lender, if financing is being used, will order the appraisal. Cash buyers use their agent or title to order the appraisal, but sometimes opt out of the option to order an appraisal.

If a home doesn't appraise for the value, depending on the contract terms, the seller may be able to lower the price to the appraised value, or the buyer may be given the opportunity to come in with the cash difference.

Typically, with appraisal being a buyer expense, sellers do not receive a copy of the appraisal report or know what the value is. The exception is if the buyer is willing to share the report.

Appraisals are usually required by the lender.

The value given to homeowner renovations may be less, equal to, or more than what the cost is for renovations. (If you're not planning on selling for awhile, it's a good idea to check with a Realtor® before dumping money into a home. A great Realtor® should have a good pulse on what renovations are receiving the highest values.)

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STEPS FOR CLOSING THE SALE WHAT TO EXPECT: Closing is when funds and documents are transferred in order to transfer ownership of the property to the buyer. The escrow officer will look over the contract and find out what payments are owed, by who, prepare documents for closing, perform the closing, make sure all payoffs are completed, the buyer’s title is recorded, and that you receive payoffs that are due to you.

Seller can expect to transfer these items and follow these important steps in order to close the transaction.

1. TRANSFER FUNDS The transfer of funds may include payoffs to: • Seller’s mortgage company as well as any lien holders • Local government, if any property taxes are due • Third-party service providers • Real estate agents, for payment of commission • Sellers, if there are any proceeds from the sale of the home 2. TRANSFER DOCUMENTS The transfer of documents may include: • The deed to the house • Certificate of Title, Bill of Sale, and other real estate-related documents • Signed closing instructions and/or settlement statement (HUD 1) • Receipts (if needed) for completed repairs, per sales contract 3. TRANSFER PROPERTY The transfer of property may include: • Recording of the signed deed (completed by third-party) at county courthouse • Post-closing agreement, if seller will need to rent back home for specified time frame • Exchange of keys, garage door opener, security codes and/or devices, appliance manuals, etc.

• Homeownership legally transfers to the new owner when the signed deed is recorded at the seller's local county courthouse.

YOUR COSTS

WHAT TO BRING

AFTER CLOSING

Seller’s commonly pay: • Mortgage balance & penalties if applicable: • Any claims against your property • Unpaid assessments on your property • Real estate agents, for payment of commission Title insurance policy • Home warranty Frequently buyers request for closing cost assistance.

Sellers need to bring to closing: • A government picture ID • House keys • Garage door openers • Mailbox and any other spare keys

Keep copies of the following for taxes: • Copies of all closing documents • All home improvement receipts

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