Seller's Guide

Page 1

Seller's Guide



Our Expertise The Farm, Ranch, & Residential division at Cascade Sotheby’s International Realty covers 100,000 square miles across Oregon and SW Washington, and we represent exceptional properties in this region. As Farm, Ranch, & Residential brokers we are experts in our field, as we, too, are ranchers, riders, and farmers. You will often find us outside the office - cultivating land and relationships while driving back roads, wrangling horses, hunting, fishing, or walking rows of grapevines. Knowing the ins-andouts of property values, water rights, and zoning is what separates us from other brokers and our competitors. As seasoned brokers we have deep roots in the communities we serve, know the right places, the right tradesmen, and the right ways to help you.

www.PattyandSuzanne.com


What Our Designations Mean ABR Accredited Buyer Representative - denotes a Sales Associate who is qualified to provide buyer representation and is familiar with buyer brokerage and buyer agency issues. Requires a 12hour course, active membership in REBAC, and at least five documented transactions during the previous 18th month period where the Sales Associate acted as a buyer's representative. Awarded by the Real Estate Buyer's Agent Council (REBAC). SRS The Seller Representative Specialist (SRS) designation is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal performance. GRI REALTORS® with the GRI designation have in-depth training in legal and regulatory issues, technology, professional standards, and the sales process. Earning the designation is a way to stand out to prospective buyers and sellers as a professional with expertise in these areas. e-PRO® This certification program helps REALTORS® master the advanced digital marketing techniques of today. With the e-PRO® certification, REALTORS® increase their ability to reach customers, expand their capabilities, and build trust by safeguarding client information. RENE The Real Estate Negotiation Expert (RENE) certification is for real estate professionals who want to sharpen their negotiation and client advocacy skills. RSPS This certification is designed for REALTORS® who facilitate the buying, selling, or management of properties for investment, development, retirement, or second homes in a resort, recreational and/or vacation destination are involved in this market niche.

www.PattyandSuzanne.com


What Our Clients Are Saying


About Cascade Sotheby's International Realty Cascade Sotheby's Internat ional Realty was established in 2006 and serves diverse communities across Oregon and SW Washington. With 375 brokers and 15 offices, the firm has become the most effective real estate brokerage in the Pacific Northwest. Our brokers are masters of their craft, combining local expertise and global connections to set the standard for real estate guidance. This exceptional team shares one belief—your best life begins with a home and way of life that inspires you. We honor the incredibly diverse lifestyles that we serve throughout the region. Whether a client dreams of an oceanfront retreat, a high desert oasis, a suburban family home, a high-rise condo, or a working ranch, we consider ourselves their partner in fulfilling that vision. We know that a home is a reflection of our lifestyles and place in the world. It is this appreciation that sets us apart. We are further empowered by the global prestige, heritage, and fortitude of the Sotheby’s International Realty brand. In an ever-changing real estate market, it’s our iconic brand that gives us the right support and hightech tools to help you reach your real estate objectives.

SERVING OREGON & SOUTHWEST WASHINGTON

15 OFFICES | 375+ BROKERS | $2.6B (2020 SALES)

www.PattyandSuzanne.com


7 Step Selling Process Step 1. Choose a Listing Agent

A listing agent represents you and has a fiduciary responsibility to look out for your best interests. Interview agents and meet with at least three of them as you make a decision.

Step 2. Find Out How Much Your Home Is Worth

A seller's greatest mistake is often overpricing her home. Keep your price in line with sold homes that have been identified in a comparative market analysis report.

Step 3. Get Your Home Ready for Sale

Prepare your home for sale by cleaning and decluttering it and improving curb appeal.

Step 4. Market Your Home

You or your agent should identify the selling points of your home and choose the best advertising words to convey them.

Step 5. Show Your Home

You'll get more showings if you let agents use a lockbox or keypad to show your home rather than force them to make appointments.

Step 6. Receive Purchase Offers and Negotiate

Be prepared to receive multiple offers if your home is priced right. Don't ignore any offers, even if it seems too low. Negotiate by making a counteroffer.

Step 7. Open Escrow and Order Title

Your agent or transaction coordinator will open escrow and order a title policy for you.

www.PattyandSuzanne.com


Step 1 Choose a Listing Agent A listing agent represents you and has a fiduciary responsibility to look out for your best interests. Interview agents and meet with at least three of them as you make a decision. Try to hire based on experience. Ask questions about your listing agreement, including the length of time the home will be listed and the commission you will pay for the agent’s services. Will you also be paying the buyer’s agent commissions?

Step 2 Find Out How Much Your Home Is Worth A seller's greatest mistake is often overpricing her home. Keep your price in line with sold homes that have been identified in a comparative market analysis report. Consider whether your market is hot, cold, or neutral and price the home accordingly.

www.PattyandSuzanne.com


Step 3 Get Your Home Ready for Sale Prepare your home for sale by cleaning and decluttering it and improving curb appeal. You might want to consider hiring a professional stager to stage your home for showings or ask your real estate agent for help with this. You can often use your own furniture.

Step 4 Market Your Home You or your agent should identify the selling points of your home and choose the best advertising words to convey them. Approve your agent's marketing campaign or figure out how to advertise your house for sale yourself. Hire a virtual tour company to take quality photographs and put a virtual tour online if possible. You should also confirm that your listing is posted online. You—or your agent—should saturate the internet and social media with photographs and descriptions of your property.

www.PattyandSuzanne.com


Tips For Showing Your Home


Step 6 Receive Purchase Offers and Negotiate Be prepared to receive multiple offers if your home is priced right. Don't ignore any offers, even if it seems too low. Negotiate by making a counteroffer. Consider making a counteroffer that's contingent on you buying a home if market conditions warrant it. And don't be afraid to make a full-price counter offer if your price is competitive and it's backed up by comparable sales. You can also ask for a kick-out clause or right of first refusal if the buyer's offer is contingent on him selling a home. This ensures you’re not waiting around too long if the buyer can’t offload their property.

Step 7 Open Escrow and Order Title Your agent or transaction coordinator will open escrow and order a title policy for you. Write down the contact information for the closing agent and select a date to close based on when the buyer's loan will fund

www.PattyandSuzanne.com


Basic Principles for Successful Negotiation Disclose everything.

Smart sellers proactively go above and beyond legal necessity to disclose all known defects to their buyers. Oregon have property disclosure forms. We will provide these for you.

Ask questions.

Offers may contain complicated terminology, sometimes three or more addenda. Your professional agent can help to clarify.

Respond quickly.

When buyers make an offer, they are in the mood to buy. But moods change, and buyers are known to get buyers’ remorse. Don’t delay if you want the sale.

Stay calm and be patient.

At all times keep communication civil and agreeable.

Meet halfway.

If there are disagreements about relatively small expenses, consider splitting the difference and smile.

Be cautious with contingencies.

When you’ve landed your buyer, your signed acceptance of a written offer becomes a sales contract. Except for removing any contingencies, this document is the binding basis for the sale.

Rely on your real estate professional.

It’s your agent’s responsibility to represent your best interests every step of the way. Your success is their success.

www.PattyandSuzanne.com


Buyers decide in the first eight seconds of seeing a home if they’re interested in buying it. Get out of your car, walk in their shoes and see what they see within the first eight seconds.


Get Your Home Show Ready

INTERIOR Clean: Doors

Baseboards

Windows

Chair rails

Light switches

Carpets

Paint: Paint/repaint rooms in neutral colors as needed Other tasks: Remove/pull back dark curtains

Repair/replace broken flooring

Lubricate squeaky door hinges

Use area rugs, if needed

Clean ceiling fans

Empty wastebaskets

Check for cobwebs in all corners

Make beds

Fix scratches in wooden floors

Fluff or replace accent pillows

www.PattyandSuzanne.com


KITCHEN Keep dishes and food out of sight

Eliminate cooking odors

Clean appliances

Deodorize garbage disposal,dishwasher, and refrigerator

Sweep/Mop

Clean cupboards and under sink

Clean light fixtures

Replace garbage disposal gasket to reduce noise

Test electrical outlets

BATHROOMS Remove soap residue, mildew and mold from surfaces

Clean shower door

Clean out cabinets; remove nonessentials

Replace shower curtain

Keep fresh, clean towels on towel rack

Clean exhaust fan, heater; replace if broken or noisy

LAUNDRY AREA Clean out area behind washer/dryer

Eliminate any mildew odors

CLOSETS Keep closets clean and free of clutter

Throw out or pack away nonessentials

BASEMENT Eliminate any signs of dampness

Check for and eliminate cracks

www.PattyandSuzanne.com www.pattyandsuzanne.com


HEATING / AC UNIT Clean intake vent

Replace filter

GARAGE Clean and unclutter

Clear any cobwebs

Adjust tension rod to eliminate sag from garage door

Remove oil/paint stains from floor

Put away tools

EXTERIOR Replace, repair, paint any damaged: Plaster

Screens

Wood siding

Water spigots

Trim

Street numbers on house

Rain gutters

Fences/gates

Doors

Outdoor lighting

Window frames

Shutters

Clean: Siding

Service areas/trash cans

Windows/Screens

Haul away garbage/debris

Pet droppings

Straighten woodpile

Outdoor BBQ

Test doorbell

Pool/spa

Clean oil stains from driveway

Clean furnace filters

www.PattyandSuzanne.com


Moving Checklist SEND CHANGE OF ADDRESS TO: Post Office

Home delivery — Laundry, newspaper, magazine subscriptions

Bank

School records — Ask for copies or transfer children’s school records

Credit card companies Friends and relatives

Medical records — Medical, dental, prescription histories

Insurance companies — Life, health, fire, auto Automobile — Transfer of car title registration, driver’s license Utility companies — Gas, light, water, telephone, cable

Ask doctor and dentist for referrals Transfer needed prescriptions, x-rays, etc. Church, clubs, civic organizations — Transfer memberships and get letters of introduction

Arrange for any refunds of deposits Arrange for service in new location

DON'T FORGET TO: Empty freezers — Plan use of foods

ON MOVING DAY: Carry currency, jewelry, and important documents yourself

Defrost freezer/refrigerator Have appliances serviced for moving Contact utility companies to disconnect services — Water,power, cable, trash, etc. Stay in contact with your mover — Confirm the following:insurance coverage, packing and unpacking labor, timeand date of scheduled move, details of payment

Let a close friend or relative know route and schedule you will travel including overnight stops; use him/her as message headquarters Double-check old closets, drawers, shelves to be sure they are empty Leave old keys needed by new owner

www.PattyandSuzanne.com


Real Estate Terminology Adjustable-rate mortgage There are two types of conventional loans: the fixed-rate and the adjustable-rate mortgage. In an adjustable-rate mortgage, the interest rate can change over the course of the loan at five, seven, or ten year intervals. For homeowners who plan to stay in their home for more than a few years, this is a risky loan as rates can suddenly skyrocket depending on market conditions. Amortization This is the process of combining both interest and principal in payments, rather than simply paying off interest at the start. This allows you to build more equity in the home early on. Appraisal In order to get a loan from a bank to buy a home, you first need to get the home appraised so the bank can be sure they are lending the correct amount of money. The appraiser will determine the value of the home based on an examination of the property itself, as well as the sale price of comparable homes in the area. Assessed value This is how much a home is worth according to a public tax assessor who makes that determination in order to figure out how much city or state tax the owner owes. Buyer’s agent This is the agent who represents the buyer in the home-buying process. On the other side is the listing agent, who represents the seller. Cash reserves The cash reserves is the money left over for the buyer after the down payment and the closing costs. Closing The closing refers to the meeting that takes place where the sale of the property is finalized. At the closing, buyers and sellers sign the final documents, and the buyer makes the down payment and pays closing costs. Closing costs In addition to the final price of a home, there are also closing costs, which will typically make up about two to five percent of the purchase price, not including the down payment. Examples of closings costs include loan processing costs, title insurance, and excise tax. Comparative market analysis Comparative market analysis (CMA) is a report on comparable homes in the area that is used to derive an accurate value for the home in question. Contingencies This term refers to conditions that have to be met in order for the purchase of a home to be finalized. For example, there may be contingencies that the loan must be approved or the appraised value must be near the final sale price. Dual agency Dual agency is when one agent represents both sides, rather than having both a buyer’s agent and a listing agent.

www.PattyandSuzanne.com


Real Estate Terminology Equity Equity is ownership. In homeownership, equity refers to how much of your home you actually own —meaning how much of the principal you’ve paid off. The more equity you have, the more financial flexibility you have, as you can refinance against whatever equity you’ve built. Put another way, equity is the difference between the fair market value of the home and the unpaid balance of the mortgage. If you have a $200,000 home, and you still owe $150,000 on it, you have $50,000 in equity. Escrow Escrow is an account that the lender sets up that receives monthly payments from the buyer. Fixed-rate mortgage There are two types of conventional loans: the fixed-rate and the adjustable-rate mortgage. In a fixed-rate mortgage, the interest rate stays the same throughout the life of the loan. Home warranty This warranty protects from future problems to things such as plumbing and heating, which can be extremely expensive to fix. Inspection Home inspections are required once a potential buyer makes an offer. Typically, they cost a few hundred dollars. The purpose is to check that the house’s plumbing, foundation, appliances, and other features are up to code. Issues that may turn up during an inspection may factor into the negotiation on a final price. Failing to do an inspection may result in surprise costly repairs down the road for the home buyer. Interest This is the cost of borrowing money for a home. Interest is combined with the principal to determine monthly mortgage payments. The longer a mortgage is, the more you will pay in interest when you have finally paid off the loan. Listing A listing is essentially a home that is for sale. The term gets its name from the fact that these homes are often “listed” on a website or in a publication. Listing agent This is the agent who represents the seller in the home-buying process. On the other side is the buyer’s agent, who represents the buyer. Mortgage broker The broker is an individual or company that is responsible for taking care of all aspects of the deal between borrowers and lenders, whether that be originating the loan or placing it with a funding source such as a bank. Offer This is the initial price offered by a prospective buyer to the seller. A seller may accept the offer, reject it, or counter with a different offer.

www.PattyandSuzanne.com


Real Estate Terminology Pre-approval letter Before buying a home, a buyer can obtain a pre-approval letter from a bank, which provides an estimate on how much the bank will lend that person. This letter will help determine what the buyer can afford. Principal The principal is the amount of money borrowed to purchase a home. Paying off the principal allows a buyer to build equity in a home. The principal is combined with interest to determine the monthly mortgage payment. Private mortgage insurance Private mortgage insurance (PMI) is an insurance premium that the buyer pays to the lender in order to protect the lender from default on a mortgage. These insurance payments typically end once the buyer builds up 20% equity in a home. Real estate agent A real estate agent is a professional with a real estate license who works under a broker and assists both buyers and sellers in the home-buying process. Real estate broker A real estate broker is a real estate agent who has passed a state broker’s exam and met a minimum number of transactions. These brokers are able to work on their own or hire their own agents. Realtor A Realtor is a real estate agent who specifically is a member of the National Association of Realtors. NAR has a code of standards and ethics that members must adhere to. Refinancing Refinancing is when you restructure your home loan, replacing your old loan with an entirely new loan that has different rates and payment structures. The main reason people refinance their home loans is to get a lower interest rate on their mortgage, and therefore lower not only the monthly payment but also the overall debt owed. Title insurance Title insurance is often required as part of the closing costs. It covers research into public records to ensure that the title is free and clear, and ready for sale. If you purchase a home and find out later that there are liens on the home, you’ll be glad you had title insurance.

www.PattyandSuzanne.com