THE SELLING PROCESS
Selling your property is a multi-step process and with my help I hope to make the experience as stress-free and as equitable as possible. Here is what you can expect when you sell your property with me.
1. Consult with you to analyze your needs
Do you need to sell your home this month, or do you have a piece of vacant land that you would like to see sold in the next year or so? I will help you understand the market and from there we will calculate in your needs and goals.
2. Establish a working relationship
We are going to be working together to sell your property and will be in touch with each other frequently. It is important that we can work well together and communicate freely. I am always open to your comments, questions or suggestions.
3. Prepare your property for sale
There may be things that I will suggest for you to do in order to prepare your property for sale. You only get one chance to make a first impression and I want buyers to have the best impression of your property as possible. Check out my Home Selling Tips page for more useful information.
4. Proactive marketing
My job is to expose your property to as many of the right buyers as possible. I will do this through web, print, multi-MLS postings and social networking. Check out my Marketing Strategies page for more details.
5. Show your property to buyers
I will coordinate all of the showings of your property. I will provide showing instructions to all showing agents and if applicable, you will be notified in advance of all showings (most sellers do not want to be called if there is a showing on their vacant land). All buyers will be accompanied by their real estate agent. We do not give out lock box information to anyone but the real estate agent.
6. Offer Presentation
When we get an offer on your property I will deliver a copy to you in person, via email or via fax. We will go over it together and you if you like, advise you on items of negotiation. I will also prepare a Net Proceeds Worksheet for you to review all of your closing costs in detail.
7. Acceptance of contract
Once all parties agree to the terms of the contract I will make sure a copy of the contract gets to the appropriate parties to the contract. I will be your "contract manager" throughout the process. I will advise you if anything needs to be done on your behalf and keep you informed throughout the process.
8. Title Company
The first step will be for the buyer to review their title work. The title work will be delivered by the title company to the buyer by the Title Deadline. The exceptions listed in the title work includes all of the liens, easements and items that encumber your property. The buyer will determine if they are comfortable purchasing the property with these items in place as most of them will "run with the land" on or before the Title Objection Deadline.
The buyer may decide they want a survey of the property. This is a negotiable item in the contract; the buyer can pay, the seller can pay or the parties can split the cost of the survey. By the Survey Deadline the surveyor will visit the property, mark the corners of the property, identify the improvements on the property if applicable and deliver a survey drawing to the buyer. The buyer will determine if they are comfortable purchasing the property after looking at the survey drawing and visiting the property in person on or before the Survey Objection Deadline.
10. Home Inspection
The buyer is entitled to have a home inspection of the property at their expense. Most buyers will hire a professional home inspector and a very small percentage of buyers will conduct their own home inspections. After inspecting the property the professional home inspector will deliver to the buyer a written report of his/her findings. The inspector will categorize the items by importance such as safety concerns to maintenance items. On or before the Inspection Objection Deadline the buyer will inform the seller in writing about the items of concerns and those that the buyer would like to be corrected (repaired or replaced) before the day of closing. As the seller your options in responding the the Inspection Objection are to say yes, to say no or to offer some sort of compromise. You do not have to fix anything that the buyer requests in the Inspection Objection, but the buyer can also chose not to purchase the property. Failure to negotiate the inspection items is the most common reason a contract will not close.
If the buyer is getting a loan, then chances are that an appraisal will be required. The purpose of the appraisal is to determine that the purchase price negotiated between buyer and seller is at or above market value. The buyers lender will order the appraisal. On or before the Appraisal Deadline the lender will receive a copy of the appraisers report. If the appraisal comes in at or above the negotiated purchase price, the appraisal condition will be waived by the underwriter and we will be just days away from closing. If the appraisal comes in below the negotiated price then there are two viable options. The first and most common option is for the seller to reduce the purchase price to appraised value. The lender will not let the buyer purchase the property for more than market value. The second option is for the buyer to cancel their contract or come up with the difference out of pocket.
12. Loan Conditions (we're almost there!)
The final stage of the buyers due diligence is final approval of all loan conditions. This occurs about 10 to 7 days before closing and if the underwriter gives final approval chances are very good that the deal will close. The Colorado Real Estate Commission created the Colorado real estate contract to protect the buyer whom they consider "the consumer". In nearly all cases, the buyers earnest money is refundable up until the loan conditions deadline.
13. Preparation of Documents
The title company, lender and I will prepare all of the necessary documents for closing.
14. Closing and transfer of title
The day of closing is also usually the day of possession. In other words, you need to be totally moved out of your house by the day of closing. Among other documents, you will sign the warranty deed which will transfer the ownership of the property from you to the buyer. The title company will give you a check for your net proceeds. The title company will pay your liens (mortgage balance), prorate your current property taxes, pay all real estate compensation and any other closing costs. The only thing you need to do after closing is to cancel your home owners insurance and turn off your phone service. I will take care of your gas/propane, electric and well permit if applicable. The title company will take care of municipal water and sewer.
Whew! What a ride! With me on your side I will take care of all of the details and make sure your best interests are taken care of. Call or email me today if you are considering selling your property. It would be a privilege to assist you.