Property Management Inc. guide to selling real estate by Kathryn Carr

Your guide to selling your home.

2 ARE YOU LOOKING TO sell your home?

We got you covered!

Whether this is your first time selling—or your hundredth time—PMI Realty is here to get you the most value out of your home.

We’ve helped countless individuals and families sell, buy, manage, and even invest in real estate throughout the nation. We can do the same for you.

This guide will take you through each step of the home-selling process, so you feel confident and ready to list your home and make that sale.

Let’s get to it!

Finding the Right

Agent Is Key Selling your home with the right real estate agent can make all the difference. A good agent should: • Determine the best sales price for your home • Suggest home improvements to increase selling power • Determine the best time to place your property on the market • Develop a marketing plan to attract the right buyers • Update you of any changes in your local real estate market • Negotiate the best possible contract for you Most importantly, a good agent will keep you informed from contract to close.

A Quick Note on the Fair Housing Act

The Fair Housing Act protects people from discrimination when they rent or buy a home, apply for a mortgage, seek housing assistance, or engage in other housing-related activities. Additional protections apply to federally assisted housing. Who I s Prote cted? The Fair Housing Act prohibits discrimination in housing because of: • Race • Color • National Origin • Religion • Sex (including gender identity and sexual orientation) • Familial Status • Disability

The Steps to Selling Your Home

1. Prep Your Home for Listing

You will work with your real estate agent to take photos of the inside and outside of your home to put on your listing. Make sure to have your home cleaned and organized before photos are taken. We’ll get more into preparing your home on page 12.

2. Complete a Competitive Market Analysis

Before you sign a listing agreement, your agent will review a competitive market analysis of your home’s value. This is typically the last step in the listing process and will help you set the final asking price on your property based on the real estate market in your local area.

3. List Your Home on the Multiple Listing Service

The Multiple Listing Service is a database of all properties currently on the market in your area. All active agents and brokers who belong to this service have access to information about your property listing. A few common database sites include propertymanagementinc.com, realtor.com, and zillow.com.

4. Showings Are a Team Effort

A good agent will do everything they can to work with you before, during, and after showings. Also, know that an aggressive showing schedule will create excitement about your home and enable us to sell it quickly.

Here are a few tips you can follow to help your agent give a positive showing:

• Have everyone make their beds in the morning

• Declutter your counters, closets, and cabinets

• Pack up seasonal clothing

• Host a garage sale to get rid of the items no longer needed

• Plan an activity away from home during each showing

5. Home Appraisal

When you receive an offer on your home, the buyer’s lender will require an appraisal of the property from a licensed appraiser. The buyer will pay for the property appraisal but understand that your home’s determined value may be different from the market analysis your agent provided.

BONUS STEP: Home Inspection

Home inspections are not required, but most interested buyers will request one before the final sale. The goal of a home inspection is to give the buyer an objective, independent, and comprehensive analysis of the condition of your property. A professional inspector will check the structure, construction, and mechanical systems of the house.

Some agents will also suggest you get a home inspection prior to placing your home on the market. Doing so can bring to light any repairs needed to increase your home’s value. Once the repairs are completed, most inspectors will reinspect your home at no additional cost. Plus, sharing this final report will help set your home apart from other listings!

The Cost of Selling a Home

The goal of selling your home is to make a profit. There are specific costs required to sell your home that we’ll dive into now.

Closing Costs

All closing costs associated with the sale of your home will be listed for you and for the home buyer in the selling disclosure form. The seller is generally responsible for the following closing costs:

Real estate broker commissions

Loan fees for the buyer’s home mortgage

premiums

Title costs (examination and insurance)

documents

Recording/filing

services

•

• Insurance

•

• Legal

and

fees •

fees

Mortgage Balance

This is the remaining balance on your original home loan. You will need to pay off your mortgage in its entirety when your home is sold.

Home Equity Loans

Any loan against the value of your home will also need to be paid in full after the sale of your home and can be done at the time of closing.

Pre-sale Preparations

In most cases, we don’t advise making major investments in your home right before a sale. There are, however, a few things that can be done to increase your home’s curb appeal, fix minor problems, and make your property more attractive. Together, we can identify what to address and create a budget for these pre-sale preparations that are sure to show a significant return on investment.

Moving Costs

Whether you’re moving to a new house in your neighborhood or across the country, you’re going to have moving costs. If you’re working with a moving company, get a detailed description of fees and costs. If you’re moving yourself, you’ll most likely need to rent a truck. And don’t forget the packing materials including boxes and tape. Avoid overpaying by planning ahead.

10 Your home’s listing price is based on many factors, including: • Current local market conditions • Comparable home sales • Buyer availability for your property • Proceed considerations Setting an appropriate listing price is often the difference between getting your property sold and having it linger on the market. In fact, the median purchase price of all properties sold in the United States is within 98% of the seller’s asking price.* Below is a chart that can help you explore the financial impact of various listing prices. *Data from the National Association of REALTORS® Profile of Home Buyers and Sellers 2021 Setting Your Home’s Listing Price Price 1 Price 2 Price 3 Listing Price Estimated Taxes Estimated Fees Estimated Commission Estimated Selling Costs Total Owed on the Property Net Profit for You

Property Improvements

When it comes to listing your home, there’s no single set of black-and-white rules regarding potential property improvements that apply to every property and every seller.

There are, however, some common Do’s and Don’ts on property improvements:

The Do’s

• Painting - A fresh coat of neutral-toned paint could make the sale easier.

• Minor kitchen issues – Fix plumbing leaks and make small updates, like swapping out light fixtures or replacing old cabinet hardware.

• Floors – Clean dirty carpets, fix broken tiles, or repair scratched wood flooring.

The Don’ts

• Major kitchen upgrades - Unless there are major structural issues, most new buyers would prefer to do something to their own taste.

• Energy efficient windows - While adding new windows can be a major selling point, it’s also a project that can quickly snowball in time and cost.

• New gardens or ornamental landscaping - Pay attention to your home’s curb appeal, but don’t waste your time and money adding anything new.

Home Staging

The Real Estate Staging Association shares these eye-opening statistics about properly staging your home:

Over

of buyers indicate staging makes it easier to visualize the property as a future home.

of seller’s agents say staging a home decreases the amount of time it spends on the market.

of buyer’s agents say staging a home increases the dollar value offered.

So how can we work together to get your property into selling shape?

Deferred Maintenance

Any house repairs that can be easily fixed should be addressed before the home goes up for sale. Pay special attention to the front exterior, master bedroom, kitchen, and living room.

Clean Your Home

Clean listings are happy listings, so de-clutter as much as possible. Potential buyers will and do open closets and drawers when they’re looking at your listing. The more organized you can be, the better.

75% 62% 49%

Stage It

Home staging uses interior design principles to create the appearance of openness and emphasize space. Here are a few tips for staging your own home:

Furniture

Choose furniture that shows the room in its best light. Minimize the amount of furniture you have in each room by renting a storage unit to store your extra furniture and belongings until you move into your new home.

Decor

Remove decor that could be distracting from your home. Any decor that does stay up and visible in your home should be as neutral as possible. If you have hanging mirrors in the house, these can be positioned to emphasize and reflect key areas in the home like a nice sunny window.

Beware of Odors

There are obvious problem points in a home that can produce bad smells, like garbage cans and disposal, but you should consider any strong smell a bad one. If the property smells of smoke or mold, an ozone treatment could be a great investment.

The Marketing Plan

To sell your home quickly and for top dollar, we need to have an effective marketing plan.

From Offer to Closing

Real estate transactions are complex and involve as many as twenty different players, including real estate brokers, buyers, sellers, attorneys, inspectors, appraisers, lenders, and often contractors. Because of this, even the simplest transaction today typically takes between 30 and 45 days to close. Here’s an overview of how the process will typically work once an interested buyer has submitted an offer.

Working with Offers

When a buyer or a buyer’s agent makes a formal offer, we’ll review it together.

When we evaluate offers, we’ll look at the offer price, as well as:

• All the terms and conditions of the offer

• Anything that is an unusual request or requirement of the purchase offer

• Whether or not there are other offers on the table that are a better fit for you

On a typical home sale, here’s how things will run:

• The buyer submits “earnest money” into your real estate broker’s account. This is typically 1-3% of the agreed purchase price.

• A title policy will be ordered on your property.

• A closing date is set with the buyer.

• The buyer will order an appraisal and, in most cases, an independent home inspection.

• After the offer is finalized, we will submit the legal disclosures and other materials relevant to your property.

• You will need to complete any agreed-upon requests for repair submitted by the buyer before the closing date.

• The buyer will most likely schedule a walkthrough to verify the condition of the property before your closing appointment.

• Closing is scheduled and completed. Your house is sold!

Understanding Property Disclosures

Before final closing, you will be asked to fill out a disclosure statement that will list

“material facts” about problems you are aware of regarding the condition and history of your home. Both federal and state laws govern what must be disclosed during a property sale and as the homeowner, you must be the person to complete these disclosure forms. By law, your real estate agent cannot complete these forms for you.

The general rule of thumb is that you must disclose anything that would:

• Lower the perceived value of the property

• Affect the buyer’s decision to purchase

• Change the price and/or terms the buyer offers

As you fill out these forms just remember to answer all the questions to the best of your ability. Don’t sweat the small stuff, but make sure you disclose everything you’d want disclosed to you if you were the buyer. If you don’t know the answer to a question (such as the exact age of the roof if you’re not the original owner), answer “Do Not Know.” If you feel like you don’t properly understand the disclosure requirements, you should consult a real estate attorney who knows the local disclosure laws.

As a seller,

You can help to ensure a smooth closing by making sure to do the following things:

First - Review the closing documents form that your closing agent will provide you three days before closing. This document will contain a detailed description of all costs associated with the transaction.

Second - Verify with your closing agent any other items you need to bring to the closing, such as what type of funds they will accept and a valid driver’s license or other forms of identification, keys, garage door openers, and any security codes to access the home.

20 Notes

Meet your PMI agent

First Last

Professional Experience

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Credentials

• Certification • Certification