The Complete Guide to
SELLING YOUR HOME
ANDREW REAMER President/Owner
703.821.1840 a.reamer@remaxdistinctive.com www.remaxdistinctive.com
RE/MAX Distinctive | 6846 Elm Street, McLean, VA 22101 Each office independently owned and operated.
-2-
MEET ANDREW Andrew Reamer is the Principal Broker and Owner of RE/MAX Distinctive Real Estate Inc. with franchises in McLean, VA, Washington, DC, and Charles Town, WV, and five satellite team offices from Baltimore, MD to Purcellville, VA. Andrew’s organization is comprised of talented and dedicated Realtors who conduct an average $250,000,000 in sales volume and over 690 homeowner relocations each year. Formerly, Mr. Reamer was the co-founder of a nationwide foreclosure and loss mitigation management firm that was lauded by Inc. 500 magazine as one of the fastest growing companies in the county, overseeing the sale of 15,000 homes annually spanning the United States as a prime contractor for U.S. Housing and Urban Development, the FDIC, and the Department of Justice. Driven by a global mission, Andrew builds strategic partnerships to solve complex problems through creative means. He has come back from the dead, climbed the tallest mountain in Africa, and he takes the stage monthly to play his guitar and entertain the crowd.
-3-
SELLING YOUR HOME: 8 EASY STEPS
1
2
3
4
Define Your Goals
Hire a REALTOR®
Price Your Property
Prepare Your Home
5
6
7
8
Market Your Home
Show Your Home
Ask for Feedback
Negotiate the Offer
-4-
-5-
-6-
1 DEFINE YOUR GOALS Determine W hy You Are Selling Your Home Before you start to think about all the things that need to be done, take some time to figure out why you are selling and clearly define your goals. Focusing on what is important to you and your family will help streamline the process. IMPORTA N T QU EST IONS:
IMPORTA N T CONSIDER AT IONS:
•
Is there a timeline?
•
Do you understand the associated costs?
•
Are you relocating?
•
Is this the right time for you to sell?
•
Are you looking for a bigger home or
•
What are the present market conditions and the implications to your sale?
to downsize? •
•
Are you looking for a different
an advantage?
neighborhood? City, country, suburbs? •
Are you looking for different amenities?
•
What are your financial considerations?
Does your home’s equity give you
•
What are the current mortgage interest rates options compared to your rate and commitment?
•
Consider getting your property inspected before placing it on the market. This will help you to know if there are any issues with the home beforehand.
Recognize that every market is different and the selling process can be a sprint or a marathon – ensure you are prepared for both.
-7-
2 H I R E A R E A LTO R ® Commitment and Dedication It is important to work with a Realtor® who is not only committed to working with you, but who is also dedicated to getting your home sold in the shortest amount of time for the most amount of money. Your RE/MAX Distinctive associate will guide you through the entire process. R ESPONSIBILI T IES
PR EPA R ING A N D SHOW ING T HE HOME
Educate you about the listing agency and
Preparing your home in line with buyer’s
professional responsibilities, including complete
expectations, arranging the right showings, and
disclosure, loyalty, confidentiality, compliance,
recommending relevant experts.
and accountability. CONSU LTAT ION A N D N EGOT I AT ION U N DER STA N DING YOU R N EEDS
Providing consultation when offers come in
Taking the time to understand your priorities
to purchase your home. Negotiating the best
and needs (price, timeline, relocation, etc.) even
possible price and terms for you, finding home-
if they change.
related service providers, and taking care of all the documentation details.
M A R K ET ING YOU R HOME Providing a sophisticated marketing strategy
CLOSING
that ensures the maximum exposure of your
Keeping you fully informed about all activities
home to the right buyers. Keeping you updated
that lead to the transaction closing.
with current market trends, neighborhood fluctuations, and new sales and listings.
-8-
Signing A Listing Agreement A listing agreement is a contract between you and your Realtor® stating the agent has the right to list, advertise, and handle the sale of your home. It’s important to understand the terms of this agreement because you will be bound to them – forming an obligation of time and commitment of responsibilities. KEY FACTORS: •
Commission: The amount you will pay your agent.
•
Exclusive right to sell: Gives your agent the right to sell your property.
•
Duration: The amount of time the listing agreement is in effect.
•
Protection clause: Protects the agent or broker after the date, preventing you from avoiding payment to your agent should you find a buyer while under contract.
•
Duties: The activities the agent is authorized to conduct on your behalf.
•
Representations: You may be required to verify certain legalities and facts about your home.
•
Dispute resolution: Specifies how you will handle disputes that cannot be worked out informally.
-9-
- 10 -
3 PRICE YOUR PROPERTY COMPA R AT I V E M A R K ET A NA LYSIS
W H AT DOES NOT A FFEC T SA LE PR ICE
Your Realtor will provide you with an analysis
The following do NOT predict the price at which
to price your home correctly, showing properties
your home will actually sell:
with similar amenities that are currently on the
•
The profit you wish to make from the sale
market as well as those that have actually sold.
•
The money you have invested
®
in improvements •
FA IR M A R K ET VA LU E
The amount your friends or others have told you the home is worth
A brand new listing is shown more and generally sells for a higher price than older listings. The
•
What you originally paid for the home
Fair Market Value is influenced by:
•
Past appraisals
•
Location
•
The Tax Assessor’s evaluation
•
Condition
•
Buyer demand
IN I T I A L PR ICING M AT T ER S
•
Prices of other properties on the market
Price sets “the opinion of value” when selling
•
Recent sales
your home. Price it too high against comparable
•
Availability of financing (homes must be
properties and your home may not sell – it will
priced accurately to qualify for a loan)
attract lookers, not buyers, drawn to viewing more expensive properties. It also may potentially scare away buyers who would be willing to pay the Fair Market Value, and it might be used by other agents to make their properties look like better values.
- 11 -
4 PREPARE YOUR HOME Every seller wants to sell their home quickly, and every buyer wants to believe that the home they are looking at is the “right one.” As you prepare the home for sale, your Realtor® can recommend the right steps to take to get the most value for your home. •
T HE BA SICS •
•
•
De-clutter. If it is not needed, remove it and
it. Repair squeaky doors, holes in walls, leaky
put it in storage. Pack up knick-knacks. Keep
faucets, broken cabinet doors, and anything
the counters clean.
else that could deter or distract buyers.
De-personalize. Remove photographs and memorabilia. You want buyers to be able to
WAY BEYON D T HE BA SICS
visualize making their own memories here.
•
bathroom(s),
remove
spider
webs,
Add better flooring? Remodel the bathroom? Though more expensive, these repairs will
dust
add value to your home and are projects
bunnies, wash windows, dust furniture, mop
worth considering.
floors, vacuum carpets, etc. •
Finishing the basement. A finished yet blank canvas can add extra value to your home, and
BEYON D T HE BA SICS
the buyer may be willing to pay more for
Painting walls. If you have off-beat colors,
something they do not have to do.
bring them back to a more neutral hue – it can •
help the buyer visualize a clean slate. •
Major renovations. Haven’t replaced that roof in 20+ years? Need to replace the carpet?
Deep cleaning. Clean the home thoroughly – inside the cupboards, the grout in the
•
Minor repairs. If it’s a cheap and easy fix, fix
Other repairs. It is important to understand that any work you put into the home should
Update room decor and themes. Have a
add value to the final sale price. Otherwise,
jungle-themed room? An all-pink or blue kid’s
it’s not worth it.
room? Redecorate, repaint, and turn it into a study. Think simple.
- 12 -
HELPFUL TIPS: •
Think of this process as a head start to packing.
•
Even though some repairs may seem minor, they can become a major factor in determining whether a buyer will actually buy.
•
Pay particular attention to rooms that smell; odors are a complete turn-off.
•
Do not forget about the outside – this is your first impression.
•
Scrutinize the home. If you were a buyer, would you want to buy this home? You have lived here and you know all the pros and cons. Highlight the pros and eliminate the cons.
- 13 -
- 14 -
5 MARKET YOUR HOME Marketing should reflect your home’s unique and individual story. Take some time to sit down with your Realtor® to discuss the correct marketing plan that is necessary to successfully market the home. A comprehensive and customized marketing strategy will compliment the time, money, and energy that you have invested in your home. PHOTOGR A PH Y
DIGI TA L E X POSU R E
A key element to all marketing is the right
Real estate websites give your home 24/7 exposure
photography. Your home has five seconds to
locally, nationally, and internationally.
impress and grab someone’s attention. Skilled professionals know how to use composition, color,
SOCI A L MEDI A
and lighting to enhance the subject. The right
Tapping into this method of getting your home
photography can give you an extra 20 seconds
the exposure it deserves is necessary in today’s
and a great photo can evoke a potential buyer’s
world.
emotion. This is where they fall in love first. V IRT UA L TOU R S & V IDEO PR IN T MEDI A
Current technology allows potential buyers
Tangible resources draw buyers to the home such
outside the area to view the home. Virtual tours,
as yard signs, directional signage, postcards,
3D walk-throughs, and online videos all help
property brochures, and more.
depict the overall space and liveability.
M U LT IPLE LIST ING SERV ICE ( MLS)
N ET WOR K ING
This online resource, utilized by most real estate
We will contact the top agents in the area and
agents, gets your home’s information and photos
sends them detailed information on your home.
into the hands of hundreds of local agents.
- 15 -
6 SHOW YOUR HOME It’s important to generate the best first impression. Staging your home increases your chances of receiving higher offers in a quicker time frame. Whether you work exclusively with your Realtor® or with a professional stager, staging your home is a must to get top dollar in today’s market. BE FLE X IBLE
A N IM A L C A R E
Many home buyers are on a tight schedule, just
A pet-friendly home is a great selling point.
like the rest of us. Time is tough to come by, so be
However, if potential buyers are not animal
flexible, especially if you are living in the home.
friendly, you do not want your pet(s) to be a distraction. Remove them from the home during showings, or place them in a contained space.
QU ICK CLE A N During the selling process, it is imperative to always keep the home clean. Wipe down
LIGH T T HE WAY
counters, vacuum daily, and make sure all clutter
The
is cleaned up. TIP: Keep a box for personal items;
welcoming. Turn on the lights and open the
when not in use, keep them in a closet or drawer.
curtains; this will allow the buyers to see the
home
should
feel
open,
bright,
and
true value of the home. CLIM AT E CON T ROL Make sure the inside temperature of the home is
COMM U N IC AT E W I T H YOU R R E A LTOR ®
comfortable. You want buyers to feel comfortable
If there are special aspects to the home that
and to not rush the viewing process because they
you want to be featured and recognized during
are too hot or too cold.
showings, make sure to communicate that clearly to your agent.
- 16 -
The “Show Home” Ready Checklist IF YOU HAVE 10 MINUTES •
Make the beds
•
Toss all personal items of clutter in a basket or box and put it in the back of your car
•
Empty all the garbage
•
Make sure the towels in the bathroom are clean, straightened, and they match
•
Put down the lid to the toilet(s)
•
Wipe down all counter tops and sinks
•
Turn on all the lights in the house
•
Make sure the house temperature is comfortable
•
Make sure the home smells good
IF YOU HAVE 1 HOUR Do everything on the ten minute list, PLUS:
- 17 -
•
Vacuum all carpeted areas and sweep all floors
•
Clean all mirrors
•
Clean the toilets
•
Clear and wipe down kitchen counters
•
Clean and put away laundry
•
Sweep the front doorway and shake out the mat
- 18 -
7 ASK FOR FEEDBACK It is never easy hearing negative remarks about your home, but knowing is half the battle and the information provided could potentially be helpful in the next showing. It will also show the buyer that you value their opinion. Following an open house or buyer showing, talk with your Realtor® to measure your home’s reception and consider recommendations. R EV IEW: •
Are you getting a steady stream of people to open houses and broker opens? What is the typical number for comparable homes?
•
Find out what feedback was given to your Realtor®. Use this feedback to enhance your home’s presentation for future showings. Your agent may have some ideas on how to spruce up your home’s presentation factor.
•
Could your home use an incentive to entice more buyers to come for a look?
•
What other marketing strategies does your agent suggest to attract more buyers?
•
It is important to keep things in perspective following an open house or a buyer showing. Remember that prospective buyers need time to process what they have seen, and maybe time to look around at other homes before making such a big decision.
•
Be patient. Be open to feedback and continue to maintain an open dialogue with your Realtor®.
- 19 -
8 NEGOTIATE THE OFFER A SSESSING T HE OFFER Perhaps the most complex moment of the sales process comes when you get an offer on the home. When you receive an offer on your home, your Realtor® will advise you every step of the way, evaluating the positives and negatives of each offer. COU N T ER OFFER S Counter offers are generated by the seller after a buyer has submitted an offer to purchase. Typically, counter offers will state that the seller has accepted the buyer’s offer, subject to the particulars such as: •
Higher price (if buyer’s offer doesn’t match sale price)
•
Increase the amount of the deposit
•
Refusal to pay for certain reports or fees
•
Altering closing and/or possession dates
•
Modifying the contingency time frames
•
Excluding personal property
Once you’re comfortable with all the terms – price, repair limits, possession – your agent recommend you accept an offer. COMPLET ING T HE T R A NSAC T ION Perhaps the most complex moment of the sales process comes when you get an offer on the home. When you receive an offer on your home, your Realtor® will advise you every step of the way, evaluating the positives and negatives of each offer.
- 20 -
- 21 -
- 22 -
Contract to Close Step-by-Step Start Contract
Mortgage Company
Title Company
Loan Application
Contract is Receipted
Credit History is Researched
Escrow Dept. Opens Order
Appraisal
Title Dept. Receives Order
Loan Submitted For Approval
Escrow Team Coordinates Transaction
Examiner Researches Property
Buyer is Approved
Closing Scheduled
Mortgage Company Gives Instructions to Title Company
Document Preparation
Finish Closing & Funding
- 23 -
Commitment for Title Insurance is Issued
Moving Out Checklist Update voter registration
Notify current utility companies of new
Updated medical records – notify doctors,
address, shut off and connection dates:
dentists, pharmacists
Electric Water/Sewage
Update employer records
Trash
Notify children’s school and activities of move
Gas
Cancel/Update gym memberships and local
Phone
memberships if not staying in area
Cell Phone
Return library books or other things you
Cable/Satellite
have borrowed
Internet
Hire housekeeping and landscaping services
Insurance: Transfer homeowners insurance
to ensure the home is clean before the new
to new home
buyers arrive
File Change of Address with postal service –
Send out “Just Moved” cards to notify family
start and end dates
and friends of new address
Notify DMV of new address – driver’s license and registration Notify bank and credit card companies of your move and that you will be making purchases in a new area, if applicable
- 24 -
- 25 -
- 26 -
Steps in the Home Selling Process
PREPARE THE H OM E FO R MARK ET
LISTING AND M AR KETING
SH OW I NG S AND F EED BAC K
•
Enhance curb appeal
•
Professional photography
•
•
Finish repairs and maintenance
•
Open Houses
Respond to buyer questions
•
Print and online advertising
•
Overcome objections from prospective buyers
•
Staging
C LO SIN G
DUE DILIGENCE AND ES CROW
O F F ERS A ND NEG OTI ATIO N
•
Review closing statement
•
Home inspection
•
Handle multiple offers
•
Sign closing documents
•
Survey
•
•
Settlement
•
Appraisal
Negotiate price, dates, and concessions
•
Negotiate repairs
•
Resolve title issues
- 27 -
Title Insurance FAQ's W H AT IS T I T LE? Title is your right to own or use your property. Title also establishes any limitations on those rights. W H AT IS T I T LE INSU R A NCE? Title insurance is a policy that protects your investment and property rights. There are two different types of title insurance owner's policy and lender's policy. 1. Owner's Polic y An owner's policy protects your property rights for as long as you or your heirs own the home. 2. Lender's Polic y A lender's policy is usually required by the lender and protects only the lender's financial interests. The buyer typically pays for this policy, but this varies depending on geography. It is recommended that you ask the title company how it is handled in your area. W H Y SHOU LD I PU RCH A SE OW N ER'S T I T LE INSU R A NCE? Owner's title insurance is the best way to protect your property from future legal claims. A one-time fee that covers you and your heirs for as long as you own your home, this policy also covers potential legal fees for settling claimes against your property rights. W H AT DOES OW N ER'S T I T LE INSU R A NCE COST ? The one-time payment is typically costs around 1% of the home's purchase price. HOW LONG A M I COV ER ED? Your owner's insurance policy lasts for as long as your or your heirs own your property.
- 28 -
The Mortgage Process
01
02
03
04
Pre-Qualification
Pre-Approval
Shop for a Home
Offer Written
Goals for purchase, income, assets, debts, and credit are discussed to estimate price range and loan terms that are best for you.
Loan application completed; credit history, income, employment, bank accounts verified and evaluated by underwriting.
With pre-approval letter in-hand and price range determined, you are now ready to look for a home with your Realtor.
Terms of an offer, seller credit, closing date, etc. discussed to ensure you are comfortable with the numbers. Earnest money check written at this time.
05
06
07
08
Offer Accepted
Reports Ordered
Submit for Final Approval
Closing Disclosure/ Loan Documents
Home inspection completed, paid for by you (the buyer). Requests for any repairs/credits negotiated. Loan terms finalized, rate locked.
Appraisal ordered by lender, charged to you (the buyer). Title report and escrow ordered. Shop for homeowner's insurance.
Purchase contract, appraisal, title, insurance, and any remaining loan conditions sent to underwriting for review.
Closing disclosure sent; review period of 3 days required. Afterward, the loan documents are drawn and delivered to escrow.
09
10
11
12
Settlement Statement
Sign Documents
Final Lender Review
Closing Day
Discloses final numbers including buyer's cash due for closing. Once completed, escrow contacts you with final figures and schedules signing appointment.
Typically occurs 2-3 days prior to closing. You sign loan documents at the escrow office and provide the funds for closing to escrow via cashier's check or wire.
Signed loan documents returned to lender for review; final verification of employement; all funding conditions reviewed and cleared for closing.
Lender wires loan funds to escrow; escrow releases documents to be recored at local courthouse. Once recorded, transaction is officially closed!
- 29 -
A Home Seller’s Glossary When selling a home, it’s important to understand some of the key concepts and terms. Throughout the selling process, your Realtor® will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know: Abstract Of Title – A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to the present. Adjustable Rate Mortgage (ARM) – Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time. Agreement of Sale – Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms, spelled out in writing and signed by both parties.
the transaction and the final disbursements are paid. Also referred to as the Settlement. Closing Costs – The costs to complete a real estate transaction in addition to the price of the home, may include: points, taxes, title insurance, appraisal fees, and legal fees. Closing Date – This is usually the date that the legal ownership of the property transfers from the seller to the buyer.
Debt-to-Income Ratio – A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income. Deposit – The amount of money provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your agent can assist you in proposing a certain and appropriate amount for the deposit.
Amortization – The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in a loan document.
Conditions or Subjects – Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes. Some of these conditions could be “subject to financing approval,” “subject to the buyer’s house selling,” “subject to seller finding suitable housing,” etc.
Disclosures – Seller disclosures are based on seller’s knowledge of issues. They to serve to inform buyers; they can protect the sellers from future legal action. It is the seller’s chance to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property.
Appraisal – An appraiser’s estimate of the market value of a property based on local market data and the recent sale prices of similar properties.
Contingency – A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.
Down Payment – The money paid by the buyer to the lender at the time of the closing. The amount is the difference between the sales price and the mortgage loan. Requirements vary by loan type. Down payments less than 20% usually require mortgage insurance.
Assessed Value – The value placed on a home by municipal assessors for the purposes of determining property taxes.
Counter Offer – An offer, made in response to a previous offer, that rejects all or part of it, while enabling negotiations to continue towards a mutually acceptable sales contract.
Closing – The final steps in the transfer of property ownership. On the closing date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to
Conventional Mortgage – One that is not insured or guaranteed by the federal government.
- 30 -
Earnest Money – A deposit given by the buyer to bind a purchase offer and which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited.
Equity – The value of the property, less the loan balance and any outstanding liens or other debts against the property.
Market Value – The amount a buyer would pay a seller for a home. An appraised value is an estimate of the current fair market value.
Easements – Legal right of access to use a property by individuals or groups for specific purposes. Easements may affect property values and are sometimes part of the deed.
Mortgage Insurance – Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down). Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).
Escrow – Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan services to pay property taxes and homeowner’s insurance. Fixed-Rate Mortgage – A type of mortgage loan in which the interest rate does not change during the entire term of the loan. Home Inspection – Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc. Home Warranty - Service contract that covers the repair or replacement of home system components and appliances that break down. Homeowners Insurance – A policy that protects you and the lender from natural disasters and liabilities, such as a visitor injury, or damage to your personal property. Inclusions and Exclusions – Specifications within the offer that detail the items to be included or excluded from the purchase. Typical inclusions are appliances, window coverings, fixtures, and decorative pieces. Lien – A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments.
Possession and Adjustment Dates – When the buyer takes possession as specified in contract of purchase and adjustments are made for prepaid taxes, maintenance fees, etc. They are usually the same date. Possession Date – The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days of the Closing Date. Pre-Approval Letter – A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer. Principal – The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow. Purchase Contract – A detailed written document which makes an offer to purchase a property, and may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the Purchase Offer becomes a legally-binding sales agreement.* Purchase Price – The amount that the buyer is offering to pay for the property, usually dependent on market conditions and may differ from the seller’s current asking price. There is no “normal” amount or percentage that a
- 31 -
price will differ from its asking price, as the final price will be determined by many factors, including the seller’s motivation and how close the asking price is to actual “market value”. Terms – An offer includes certain “terms”, which specify the total price offered and how the financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker or if you wish to take over the seller’s mortgage (assumability). Title – The right to, and the ownership of, property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects. Title Insurance – Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title. Truth-In-Lending Act (TILA) – Federal law that requires disclosure of a Truth-In-Lending statement for consumer loans. The statement includes a summary of the total cost of credit. Title Search – A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property. * The Purchase Offer and contract procedures vary by region.
We would like to thank you for giving us the opportunity to represent you. At RE/MAX Distinctive, our goal and commitment is to make your selling process as seamless as possible. Regardless of your real estate needs, know that we are always here to assist you because we are not just providing a service, we are building a relationship.
Each office is independently owned and operated. Copyright © 2023