Prepare to move out of your home

Congratulations! You’ve put your home up for sale and received an offer that meets your requirements. Now what? The buyer has started their due diligence. Along with following up on that buyer due diligence you have another important task: preparing to move you and your family out of the house.

This can be both a very stressful and very joyful time. If you have already purchased a new home or have signed a rental lease, things will be a bit less stressful. If you have been unsuccessful in finding a new place to live, it’s time to get serious with the search. If you are considering buying, but can’t find the right place, consider a short term rental. You might even find a seller who has already moved out that is willing to rent their home while it is for sale, if you are willing to be flexible with showings and are able to keep the house in top showing condition.

Assuming you do have another place, then here are some tips for getting ready for moving day:

Don’t jump the gun: If your buyer has several contingencies you may want to hold off on putting deposits down on moving trucks, for example, until after the initial inspection. This is going to depend a lot on timing, so your best bet is to avoid committing to large expenses where you can’t get your money back if the sale is delayed or does not close.

Host a yard or garage sale: Depending on how much de-cluttering you did before putting your home up for sale, it may be time for another attempt to get rid of ‘stuff’. The less stuff you have to move, the less it will cost to move it. Depending on your new place, your current furniture may not fit or may not be the right style. Host a garage sale or donate unwanted items to a charity.

Start packing early: Start packing early and take your time. This process will prove much less stressful if you are not in a rush. Start with items that you use infrequently or won’t be using for a while, such as seasonal clothing, holiday decorations, the fine china, etc. Starting early will also help keep you organized and give you time to acquire extra packing materials should you run out. Leave out your coffeemaker and other daily use items as long as possible. Pack them up at the last minute and mark the boxes clearly. Then you can unpack them first when you get to your new place.

Keep up the maintenance: Don’t forget that you are expected to keep your home in the same condition as when the buyer put in their offer. Be sure to keep the lawn mowed and to repair any damage that might occur during your move. Pay the premium to keep your home insurance active until closing in case of an unexpected major catastrophe.

Don’t take the curtains: Be aware of what is considered a fixture in the home and is expected to remain. Outdoor plants, built in furniture and even curtains and blinds are all expected to remain with the home when you leave, unless you specifically outlined your plan to take these items as part of the sales contract.

Host a party: Don’t forget to say good-bye to your neighbors and friends who live nearby. This is especially important if you are moving further away. Plan a barbeque or an evening out for a final open house. If things are going smoothly with the sales transaction and all contingencies are satisfied, you might even consider inviting the new owners.

We can help you stay on top of buyer due diligence steps

As a seller, once you have accepted an offer, you still have some work to do. The vast majority of transactions will involve buyer due diligence steps. You will need to follow up with the buyer so that you are aware of the dates by which the steps are to be completed. You’ll also want to be aware of the status of each step so that  you are prepared to take appropriate action to ensure the steps are completed in a timely and appropriate manner. You may even need to negotiate what action you will take with the buyer. When you list your home with Tellus Real Estate Solutions we will help you stay on top of these steps to ensure that the due diligence process goes smoothly.

The first task is to be aware of which buyer due diligence tasks are allowed by the sales contract and the deadlines that are associated with those steps. Should you choose to work with Tellus Real Estate Solutions, we will review the contract and then share these tasks and their deadlines with you on our ‘client page’.

The following is a list of typical buyer due diligence tasks, also known as contract contingencies. Specific tasks will require your review, as the seller, so that you are able to foresee and possibly avoid any unintended consequences. Keep in mind that Tellus Real Estate Solutions is a brokerage firm and not a law firm. Our opinions about consequences should not be viewed as legal advice:

• Review of Seller’s Disclosure Statement (NWMLS Form 17): In Washington State, a seller is legally required to provide a disclosure of any ‘Material Facts or Defects’ of the property. The buyer has three days from receipt of this statement to accept the disclosure or rescind their offer. If the seller fails to provide the disclosure and receipt is not waived in writing, the buyer can rescind the offer at any time up until the day of closing. Tellus recommends providing this disclosure before or during the time the original offer is being negotiated. At the time the disclosure is provided, you will want to obtain acknowledgement of the buyers’ receipt and their waiver of the right to revoke their offer before the deadline passes. If the deadline passes, in theory, the buyer has automatically waived their right to rescind the offer.
• Earnest money deposits: Earnest money is the cash or check that the prospective buyer presents as evidence of their good faith in making an offer. If the buyer fails to purchase the home for any reason other than one of the contingencies listed in the contract, and according to the deadlines of those contingencies, their earnest money is forfeited to the seller (who, in some cases, are required to split or share it with their agent or other service providers). According to NWMLS contracts, the buyer has two days to deliver earnest money to their agent, who then has three days to deliver it to the closing agent (escrow). Failure to deposit the earnest money is considered a breach of contract and allows the seller, but not the buyer, to rescind the contract.
• Title review: A standard contingency built into NWMLS contracts, and most other real estate contracts, is the buyer’s right to review the property title report. The report is provided by a title insurance company as part of the insurance process. The title insurance policy insures ownership rights and the title report will list any limitations on those rights against which the title insurance company will not insure. Some limitations are expected and can be taken care of as a normal part of the sales process, such as liens on the property by seller’s mortgage lender. Others may include mechanics liens for repairs or utility liens. Although all of these issues are able to be cleared during the closing process, some Issues cannot be easily cleared such ownership interests by individuals that have not been taken off title. In addition, Home Owner Association (HOA) rules and CC&Rs (Conditions, Covenants and Restrictions) for a neighborhood can limit the buyer’s use of the property. Also, there may be easements for municipalities, utilities or even for neighbors that allow them to pass through or use the property. The buyer has a certain amount of time to review all of these limitations and decide if they are acceptable. If they are not acceptable, the buyer can cancel the contract unilaterally or ask the seller to remove certain limitations. The seller may remove the limitations if they are able, however they may refuse. Having a title company provide a preliminary report early in the marking process will ensure that you are aware of the issues that might come up before the buyer reviews the information. In fact, if you can provide the buyer with this information prior to them making an offer, all the better.
• Inspections: The sales contract will specify the types of inspections the buyer will conduct and when they must be completed. As a seller, you will need to provide reasonable access to the property for the inspections. Along with simply scheduling access, you will also want to be informed of the results of the inspections. In particular, you will want to be informed if the buyer asks for any modifications to the contract terms such as a price change, a request that a defect be repaired or if they will require additional inspections. Inspections are the most common reason that a real estate transaction is not completed. Since your property is considered to be “off the market” during the inspection period, you will want to be informed immediately should the buyer decide to not complete the sale for any reason. Not completing inspections on time, or not completing them at all, is considered the same as waiving the inspection or the buyer’s right to rescind the offer because of the inspection.
• Septic inspections:  Septic inspections are a special type of inspection. NWMLS contracts and local custom call for the seller to pay for a septic pumping and inspection as part of the sales process. Most inspections are paid for by the buyer. As seller, you will need to schedule the pumping and inspection within the time frame allowed by the contract and you will want to follow up with the buyer after providing them the inspection report. If a seller does not complete any of these tasks according to contract deadlines, the buyer can rescind their offer. If the buyer does not respond to notices and reports according to contract deadlines, then it is considered the same as accepting the results.
• Financing: The financing contingency is the one that can be the most problematic. This is because the financing process takes the longest period of time. It also involves privacy issues for the buyer, so as seller, you have little visibility into the status of the process. NWMLS financing addendums do allow the seller to periodically ask for status updates as well as set deadlines for the buyer to complete the financing process. As a seller, you will want to follow up on the status and be aware of any delays or lack of willingness to provide updates as this may indicate problems with financing. After a certain period of time (typically 30 days) the seller may notify buyer that  they have the right to cancel the contract after three days if the buyer does not waive the financing contingency. After those three days the seller may cancel the contract if the buyer has not waived the contingency. Even if the buyer has waived the contingency, that does not guarantee that the buyer will obtain financing. It simply means they cannot use lack of financing as a reason to cancel the contract and have their earnest money returned.
• Appraisal: An appraisal may be part of the financing contingency, or its own contingency. As part of a financing contingency, this task is under the same deadlines (note that it is important to look at deadlines for parts of a contingency and the overall contingency to make sure they work together, because timelines can overlap, causing confusion). As a separate contingency, an appraisal will have its own timeline. The contingency deals with the situation when the appraised value is lower than the purchase price. In that case, the seller can opt to lower the price to the appraised value, or as mentioned earlier, pay for a reappraisal. Typically, the seller will either agree to the price change, or refuse, in which case the buyer will almost always cancel the contract. On rare occasions, the buyer may bring additional cash to the transaction so that the lender can make a smaller loan that is based on the appraised value.
• Closing: In most cases, the buyer will be given ownership and possession  of the property on the same day as the closing. In a few rare instances, there may be a delay so that you, as the seller, can move out your possessions, but only after the sale has been completed. Typically, you will need to make sure you are able to move out all of your possessions by the closing date. Standard phrasing in the sales contract will give the buyer ownership of anything you leave behind unless special arrangements have been made.

These are just some of the contingencies of which to be aware and on which to follow up. Each contract is different, so be sure to create a list of contingencies that apply to your specific transaction. Contact Tellus Real Estate Solutions if you would like us to provide you with with these types of review and follow up services.

When you or your real estate brokerage firm have priced and marketed your home effectively, you will receive offers. When you receive an offer, there are several things you will need to do prior to responding:

• Check for deadlines: Each offer will come with a specific deadline for responding. If you don’t respond by the end of the deadline, the offer is no longer valid. So, the first thing you should do is verify how much time you have to respond.
• Write down your goals and requirements: Hopefully, you did this when you first decided to sell your home. It is now time to pull out that list or recreate it. Have your goals and requirements changed? If so, update them. You will use this list to see how the offer compares to your needs.
• Summarize the offer: Purchase and sale contracts used to be one or two pages. Now, with addendums, they can be 20-30 pages. Go through the contract and list out the important elements. Note all dates and deadlines, the offer price, any requests for seller concessions, etc.
• Compare the offer to your requirements: Check to see if the offer meets your requirements. On rare occasions, the buyer offers the asking price, pays all cash and doesn’t ask for an inspection or have any other contingency. In that case there isn’t much to review. Accept the offer and move on. In most cases though, there will at least be an inspection contingency or a financing contingency. Depending on your asking price and the state of the market, the buyer may have offered less than the asking price and/or asked you, the seller, to pay some of their closing costs. You will want to ‘do the math’ to see what how much money you will receive from the transaction and if paying some of the closing costs is feasible. You will also want to look at contingencies and estimate what they might mean with regard to deadlines and timing and the likelihood the sale will actually close.

After you have reviewed the offer, you will want to respond:

• Counter offer and acceptance: If the buyer provides an offer that meets all of your needs, you may simply want to accept the offer. In many cases, there will be some things you wish to negotiate, so you will provide the buyer with a counteroffer. Like the offer they gave to you, the counteroffer you give to them will come with a deadline for their response. So, one of the first things you will do is decide just how much time to give them to respond. The deadline should be close enough to encourage a quick response and keep you from wasting time, but should be enough time for them to actually seriously consider the counteroffer. It is a good idea to prioritize the items you are negotiating although you might give the buyer a hint at your priorities. However, each negotiation is different. Having a list of your priorities allows you to quickly decide how to respond if or when the buyer counters back to you. The offer and counteroffer process will go back and forth until all parties agree on a set of terms.
• Get to a final agreement: At Tellus Real Estate Solutions, we find it helpful to speak via telephone, Skype or email to the buyer or their agent if it looks like we are going to go into multiple rounds of offer/counteroffer. This is simply because the contract can quickly become unreadable if the parties are marking it up by hand. By talking ‘in person’ we can handle a lot of negotiation more quickly than if we do it all in writing. Just keep in mind that the only real contract is the written one. Verbal agreements are only worth the paper they are written on. If the contract does get messy, re-write it using the final terms and have everyone sign that version. Once you have a final agreement, called a Mutual Acceptance in industry jargon, a copy of the contract will be sent to the title and escrow companies, the buyer’s lender and any other parties who have an interest in the transaction.

Should you ever choose not to respond to an offer?

Our rule of thumb at Tellus Real Estate Solutions is “Always respond to an offer or counteroffer”, even if you a responding with the same terms as the last time you responded. It makes it clear where you stand. And, it leaves walking away from the negotiations, which can feel like a failure, to the other party. Of course, if everyone takes this approach and you can’t come to an agreement, then you would simply keep sending the same terms back and forth forever. In this case, it would be a good time for the parties to speak in person (or more specifically, outside of the actual contract paperwork) to ascertain if the process is at an impasse. If the parties agree, then whomever has the paperwork at that point can end the negotiations by mutual consent.

Pricing your home correctly will ensure the sale of your home

Pricing your home correctly is the most important thing you can to do ensure the sale of your home. The next important thing is to ensure that your home is marketed effectively. An effective marketing plan ensures that your property is seen not just by the largest number of home buyers, but by the type of home buyers who are looking to purchase a property similar to yours. The effectiveness of the marketing plan will depend on a variety of factors including the property itself, the current overall market for home sales as well as your goals as a seller.

For most sellers, this means ensuring that your home is presented to as many potential buyers as possible. This is generally more cost effective and more successful than taking the risk of a high-cost, limited marketing effort focused on just a few prospects. Although more highly targeted marketing plans can work for high-end homes and estates, or homes with specific features such as private airports, docks or equestrian facilities, the goal here at Tellus Real Estate Solutions will be to present your home to a wide variety of potential buyers.

Options for marketing your home for sale

The possibilities for marketing your home are endless. The following options are those that are largely standard in the real estate industry.  Most are marketing tasks that Tellus Real Estate Solutions feels are useful when marketing properties for our clients. Individuals selling a home on their own can do a majority of these tasks. We’ve also provided some comments as to why and how each is used in marketing a property:

• Yard sign: The yard sign is the symbol of the real estate industry. There was a time when it was probably the most important marketing tool for selling your home. Today, it is as much a marketing tool for real estate agents and companies as it is a tool for selling your home.  Still, it serves an important purpose: it serves as an easily seen landmark. It is common for a prospective buyer to find your property on the Internet and drive by it to see where it is located. A yard sign helps them know for sure which house is for sale. The same thing happens when agents try and find your property for a showing, even relying on distinctive company signs to help them spot a house from a distance.  Yard and direction signs are even more important when the home isn’t easily seen from the street.
• Digital photographs: Digital photographs are the basis of most marketing efforts. They appear on flyers and on websites. They typically serve as a buyer’s first introduction to your property. Having a variety of good pictures can help buyers get a good feel for your home. Good pictures can also help accentuate positive features and put the best light on those features that some may consider negatives.  Pictures can even help reduce the risk of later litigation. A picture that prominently displays a feature such as high-power lines overhead can go a long way to showing that a buyer was informed of their existence before the purchase. It can also keep you from wasting time negotiating offers with buyers for whom high-power lines are an absolute no-no.
• MLS keybox: An MLS key box goes with an MLS listing, which means they also come with real estate agents. Almost all MLS listed properties have a key box, which points to their value.  The key box provides secure access, under a well-understood set of rules, to a large number of real estate agents.  The key box makes it easy for agents to show the home. The lack of a key box is seen as a strong negative to showing the property. Agents are more likely to skip the listing completely if it is inconvenient to show it. That means you are totally dependent on the prospective buyer to insist on seeing the property.
• MLS listing: A multiple listing service is a cooperative system owned by real estate brokerage firms that allows them to share listing information and to cooperate with each other. By having your property in the system, information about it is easily accessible by all the agents in the system.  The MLS system also tends to drive the content of both local and national real estate companies (see below). Access requires hiring a real estate agent in some fashion. The cooperation by brokerage firms is directly related to commissions. As part of your listing contract, you agree that a portion of the total commission you pay can and will be offered up to a ‘cooperating broker’ as a commission for bringing a buyer. For many sellers, the MLS listing is the main reason for hiring a real estate agent.

The value of the MLS listing

If you have a real estate agent working to find you a buyer, and there were no listings in the MLS, you would be dependent on the reach of that agent or his/her brokerage firm to find a buyer for your home. An agent is only one individual. Even a large brokerage firm will consist of only a few hundred agents.  Each agent has some limited number of buyers they are working with, so the pool of buyers is limited to only a few thousand at the most.  However, if you list the property in the MLS, you suddenly include a pool of several thousand agents (more than 20,000 agents are part of the NWMLS currently). That means your pool of buyers is likely to be closer to 100,000 than 1,000.

There are a wide variety of ways to list your property on the MLS.  Along with traditional brokerage firms (often called ‘full-service brokerages’) that list your property for the average 5-7% fee, there are  brokerage firms such as Tellus Real Estate Solutions that provide you with a flexible set of options. There are also quite a few ‘limited-service brokerage firms that will list your property on the MLS for you, without providing any other services.  The main thing to keep in mind is that no matter which of these options you choose, the cooperation of brokers with buyers is driven by the offer of a commission to that broker. If you choose to not offer a commission to the buyer’s broker, or offer a below-market commission, you remove the incentive that the buyer’s broker has for showing your property.

• Brokers’ open house: Brokers’ open houses are hosted by real estate agents for other real estate agents. In order to help maintain order, the Northwest MLS encourages specific days each week for brokers’ open houses in each area. A broker open house is aimed at introducing the property directly to real estate agents in hopes that a positive impression will result in their showing it to a current client, or keeping the listing in mind for a future client. It is an integral part of the overall MLS system. Depending on the market, the specific property, marketing budget, etc., the listing agent may even offer incentives to those agents who come to see the property. The value of the brokers’ open house can vary greatly. In general, it is more valuable in more urban or highly populated suburban areas where a large number of agents are concentrated. In rural areas, the number of agents likely to even show up may be limited.

• Public open house: The public open house is a tradition in the real estate industry. The value is greatly debated. The classic complaint of real estate agents is that the primary visitor to an open house will be the nosy neighbor. One aspect is clear; it serves as much as a tool for marketing the agent as it does for marketing the home. Agents use the public open house as a tool for obtaining more buyer clients (perhaps that nosy neighbor). It is unusual for a visitor at an open house to be the eventual buyer, unless they have also seen the property with an agent separately. Still, it is possible to obtain a buyer this way, and holding a public open house helps everyone by giving prospective buyers a low-pressure way of viewing your home. At Tellus, we are proponents of opportunities such as this.
• Newspaper classifieds: Newspaper classifieds are becoming more limited every year.  They tend to be the arena of “For Sale by Owner” (FSBO) properties. Even large brokerage firms that are able to negotiate lower advertising rates have moved away from this system. As a rule, we don’t see classified advertising as useful except in specific markets, such as small communities with local newspapers that prospective buyers may specifically review when they are interested in living in a particular community.
• Flyers on public bulletin boards: Flyers are most often used with yard signs, in boxes attached to the yard sign. They are useful for drive-by prospects and, of course, as agent marketing tools. Flyers on bulletin boards at the grocery store or similar public places have very limited value.  Home buyers will not typically review these bulletin boards when looking for homes. The most useful bulletin board is the one at a place of business. If you have a property that is in an area that is popular for commuters that work at a particular business (think Boeing or Microsoft), posting on bulletin boards in break rooms or kitchens can be very useful.
• Direct mail advertising (post cards, flyers, letters, or brochures): Direct mail advertising is of limited use, except for specialized properties. It is virtually impossible to identify the correct set of recipients without identifying some specific characteristics about them. It is easier to market to a specific recipient when the property is specialized: having equestrian facilities, a private airstrip or a boat dock. Direct mail advertising to regional subscribers to magazines or websites focused on those activities can also be useful. At Tellus Real Estate Solutions, we also market directly to owners of properties surrounding a property we list, primarily as a marketing effort for our company. Secondarily, we are also looking for the neighbor who knows someone interested in purchasing a home in the area.
• Direct marketing to individuals: Marketing to individuals is the ideal arena for real estate agents. They will typically inform their current buyer prospects and past clients about new listings. For some specialized properties, this may be extremely effective (for example, properties owned by celebrities are typically bought and sold using agents who specialize in these properties and who have connections in high society or entertainment). For most properties, if they are lucky, the agent may actually know a current or past client who might be interested in the property. If they do know a prospective buyer, it is important to be aware of dual agency issues.
• Social media: In recent years, real estate agents and brokerage firms, like most businesses, have been making effective use of social media and the websites associated with it. In general, this is a specialized form of direct marketing to individuals. Common social media communication methods to use in marketing properties are:
  • Posting information to Facebook, either generally or as direct messages to individual followers
  • Posting information to Twitter, either generally or as direct messages to individual followers
  • Posting information to LinkedIn, either generally or as direct messages to individual followers
  • Posting to other sites or systems, including ones specific to a property type like equestrian properties
• Posting or syndication to websites: Posting to various websites is the modern bread and butter of the real estate industry. Except in rare instances, if your property does not appear on the Internet, it is not being marketed. The broader the reach the better it is. This means more sites and bigger sites. If you list your property on the MLS, you run a very good chance of appearing on most of the websites listed below by default. That is because many of them directly or indirectly pull their information from the MLS. If you work with a real estate agent, your home listing will typically receive more exposure because they have made arrangements for more websites to pull information from their MLS connection. If you are selling your property on your own, you will have more limited options, but still have access to many of the most popular. Here is a list of some of the sites, and how they get their information:
  • Real estate company websites: Century 21, Coldwell Banker, ReMax, John L. Scott, etc. Real estate brokerage firms pull data from the local MLS for their websites. Multiple listing services, such as Northwest MLS, have rules for what data is available. This means that each company has access to basically the same information. It also means that by listing your property in the MLS, you automatically get your property on all of their sites. Each company, including Tellus Real Estate Solutions, has a system for adding additional information to their own listings so that their own listings provide a user with a better experience when it comes to searching for and viewing listings. Individual brokerage firms that are part of larger franchise systems, such as CENTURY 21, Coldwell Banker, etc., will also push their MLS data feeds to their national company websites. This means that via the MLS connection, you also get the benefit of your home listing appearing on national sites.
  • Craigslist: Has taken the place of the traditional newspaper classified ad. It is one of the most popular places for buyers to look for local real estate, especially when looking for “For Sale by Owner (FSBO)” properties.  It is popular with both real estate agents and individuals. There are a variety of sites, such as www.postlets.com that will help you create formatted flyers for the Craigslist website so that your ad looks presentable. The main challenge with Craigslist is its popularity, but also its lack of security. Scammers and spammers ‘troll’ the site looking for email addresses. For individuals, it is probably best to not share your contact information to minimize this problem.
  • Zillow.com: A large, popular, national website that is a competitor to Trulia.com. It aggregates data from multiple sources, typically real estate agents and brokerage firms. It also pulls data from county websites to provide historical sale data.  Homeowners are able to post their home on the site for a fee.
  • Trulia.com: A large, popular national website. Trulia is very similar to Zillow.com. It aggregates data from agents and county websites also, however it does not provide a way for homeowners to list their properties directly.
  • Realtor.com: The public facing website for the National Association of Realtors, a professional organization focused primarily on the needs of the real estate industry (and indirectly, property owners and buyers). It pulls data from its members which include the majority of the brokerage firms already mentioned, so your MLS listing will end up here.
  • Homefinder.com: Another site similar to Zillow and Trulia, but not as large. Allows sellers to post their home for sale directly. Its data comes primarily from real estate agent syndication (automatic data feeds from their websites or other tools) or direct input by the agents.
  • FrontDoor.com: Another site similar to Zillow and Trulia, but not as large. It is associated with HGTV. Its data comes primarily from real estate agent syndication (automatic data feeds from their websites or other tools) or direct input by the agents.
  • HomeGain.com: Another website that does not let owners to post their home for sale directly. Focusing more on investors, its data comes from real estate agent syndication (automatic data feeds from their websites or other tools) or direct input by the agents.
  • Propbot.com: This site allows owners to list their FSBOs. It features tools that allow you to create a listing that looks something like a website. It also is marketed more to landlords and tenants. Its data comes primarily from real estate agent syndication (automatic data feeds from their websites or other tools) or direct input by the agents.
  • hotpads.com: This site specializes in map-based searches. Owners can post their own properties. Its data comes primarily from real estate agent syndication (automatic data feeds from their websites or other tools) or direct input by the agents.
  • oodle.com: A classified ad website that looks a bit like Facebook. Real estate is only one category of postings. It is location (city or neighborhood) focused. Data comes more from individuals, but real estate data is syndicated by agents also.
  • Yahoo Real Estate: Yahoo’s real estate sub-domain. It provides both real estate and mortgage data, similar to Trulia and Zillow. It data comes primarily from real estate agent syndication (automatic data feeds from their websites or other tools) or direct input by the agents.

There are always new websites coming online, so it is a good idea to search the Internet occasionally for any new ones.

Preparing yourself as well as your home for the sale will make the process more successful. You will reach your goals in selling your home and experience far less stress if you follow these steps:

• Prepare yourself: The most common problem for most sellers is that at least one of the sellers is not ready to sell the home. Although the house might be filled with personal memories and personal mementos, it is important to, as much as you are able, see the house from a prospective buyer’s perspective. Some suggested ways that can help with that are:
  • Educate yourself: Make sure you understand the buying and selling process and what role you will play in it. Review the challenges and risks with experienced professionals such as Tellus Real Estate Solutions. It’s a rare transaction where everything goes perfectly from the seller perspective. It is also important to make yourself aware of the local real estate market, so you know how your home compares to the competition. That way, you can avoid the frustration caused by the unexpected, whether it is an unexpected delay or an unexpected sale price.
  • Remove family photos and mementos: This serves two main purposes: It helps the buyer to see the home as their home instead of yours. And, it helps remove the reminders of all the memories for you. Removing items also helps de-clutter the home which will make it more appealing to a buyer.
  • Start searching for your next home: You will have to find another place to live. Focus on the search for your new home or your life in a new home that you’ve already purchased. Focus on the future instead of the past.
  • Start packing: Keep yourself busy packing the items in your home and you won’t have time to think about memories. Packing also has the benefit of de-cluttering. The general rule of staging your home is: less is better than more.

• Prepare the outside: The first thing a prospective buyer will see is the front of your home, whether it is when they drive by or when they see it on the internet. Increasing street appeal is the most important thing you can do for a successful sale. If you can manage to make a prospective buyer fall in love with your home before they step inside, they may be willing to forgive quite a few shortcomings. The following are some examples of ways to increase street appeal:
  • Remove the extras: Remove any tools, toys, trash or extra vehicles from the front of your home. Park vehicles down the street or park them in the garage. Put unused vehicles in storage. You want the buyer to focus on your home that is for sale, not on your motor home that also happens to be for sale.
  • Clean up the landscaping: It might seem obvious, but mow the lawn and rake the leaves. Trim hedges and remove any tree branches that block the view of the home. Remove old or overgrown plants and plant some annual flowers to add color. The main objective is to keep the focus on the house. Landscaping should accentuate the positives and minimize any negatives.
  • Keep up the upkeep: Perform any required maintenance. Paint the trim, caulk the windows and pressure-wash the siding. Take a broom and lightly brush any leaves or other debris off the roof and don’t forget to clean the gutters.
• Prepare the inside: While a prospective home buyer may fall in love with the outside of your home, their impression of the interior will ‘make or break’ the sale. The guidance for preparing the inside is similar to that for the outside:
  • De-clutter: Too many nick-knacks or too much furniture are more often the problem, rather than not enough of either. Remove extra furniture. Remove the majority of personal photos and mementos. Clear the kitchen and bathroom counters except for a few decorative items. Don’t just hide everything in the counters and closets since most buyers will investigate. You don’t want to have a pile of sports equipment fall on them when they open the closet door. If you give them the impression that you are extremely organized, the impression will extend to their assumptions about how you have maintained your home.
  • Clean: Buyers expect your home to be clean and to look better than it does normally. They will wonder, “If it’s not clean now, how well did you take care if it when it wasn’t for sale?” Wash your dishes and put them away; don’t just put them in the dishwasher. Pick up clothes and make the beds. Sweep the floors and vacuum before leaving each day. Do not use powerful incense or other air fresheners as their use makes buyers suspect that you might be hiding a problem.
  • Maintain: Repair any obvious problems and perform typical maintenance. Caulk bathtubs and toilets. Patch any holes in the walls and use touch up paint (or repaint). Change furnace filters and replace any burned out light bulbs.
  • Protect your property: It is a rare occurrence, but thefts by prospective buyers or agents during showings do happen. Put jewelry, medicines and other easily removed valuables in a safe place away from visitors. Also, take steps to address any liability issues. Repair broken steps, remove moss from walkways and decks and tighten screws and bolts securing handrails.
  • Show it off: This is the icing on the cake. Take steps to show off any special features or minimize any negatives. Arrange furniture to make rooms look bigger or to highlight features such as a fireplace. Paint older cabinets to give them a fresh look. Turn that office back into a bedroom. Make improvements if they make financial sense. Crown molding, new carpet and paint can all be high value improvements that help a home sell for a higher price or more quickly. The advice and help of an interior designer or home stager can be invaluable during this stage of the process. Contact Tellus Real Estate Solutions should you need help with home staging services.

Selling your home: putting together your team

The process of selling your home will be far easier if you put together a good team of professionals to help you with the details. The following is a list of typical and some not-so-typical real estate service vendors. If you would like recommendations for specific services, let us know:

• Accountant or other tax professional: The sale of your home could be a taxable event so it is important that you understand the tax implications of the sale. For example, we had a client moving out of country decide NOT to sell their home because of the negative tax consequences. We always recommend you check with a tax professional. On occasion, if your situation is particularly complex, we might insist on it.
• Appraiser: An appraiser is typically part of the buyer’s team. But, there are times when you may want to have your home appraised on your own. This is especially true if you are selling your home on your own and don’t want to depend on a real estate agent’s estimate of market value, typically called a Comparative Market Analysis (CMA).
• Escrow officer:  Your escrow officer will handle the closing. They use the purchase and sale contract, local market customs along with instructions from your lender and the buyers’ lender to manage the details of the closing process. The choice of escrow officer can ‘make or break’ a transaction, because they handle the final details and they make sure everyone gets paid and the final paperwork is correct.
• Handyman or other construction professional: To get the best price for your home, it needs to be in good condition with up-to-date features. A handyman can make minor repairs or even handle a small remodel. You may need to hire a general contractor for larger jobs. The important thing is to balance the costs of repairs and improvements against their expected affect on sale price or sale time (depending on your goals).
• Home inspector: A home inspector is typically thought of as part of the buyers’ team. However, getting your home inspected by a professional before you begin the sales process can give you a chance to make repairs ahead of time, or give you a chance to adjust your price so the inspection does not become an issue during the buyers’ due diligence process. There is a possible disadvantage, though. In Washington State, the seller is required to notify the buyer of any issues of which they are aware that materially affect the value of the home such as needed repairs. However, the seller is not required to search for and identify problems. So, if you have an inspection performed that reveals issues, you are legally required to inform prospective buyers. If you are not aware of an issue, then it is up to the buyer to find it during their due diligence.
• Home stager: Correctly staging your home by rearranging furniture, removing clutter and personal items can help present it in the best light. Staging is especially important for vacant homes or when the buyer might have an issue in understanding how spaces can be utilized.
• Insurance agent: If you are selling your home, its wise to discuss this ahead of time with your insurance agent. Until the sale closes, you will need to maintain your insurance. Also, it might be good to review any previous claims, because this information will likely be available to the buyers and their agent via a national insurance database that tracks claims by property.
• Interior designer: The role of an interior designer is similar to a home stager. An interior designer is typically brought in for new construction homes and higher-end homes to provide a more complete service than simply staging. For example, the interior designer may recommend paint colors, art and even kitchen hardware.
• Landscaper: The importance of curb appeal can’t be overstated. Many buyers will simply drive by your home before even thinking of going inside. Hiring a landscaper to clean up and improve the exterior appeal of your home is often more than worth the cost. They can also help keep the property maintained throughout the home selling process so that it continues to show at its best.
• Photographer: A photographer can help make sure your home is presented at its best when buyers are viewing it on the internet or in a sales flyer. A good photographer can help accentuate positives and minimize negatives. There are also online services that can clean up your photos and improve them, though there is debate about the effectiveness and even the ethics of doing so.
• Real estate agent: A real estate agent can serve many roles. A good real estate agent serves as a stand-in for many of the other vendors. They can provide market value information (though they can’t provide an appraisal, unless appropriately licensed). They can provide advice on repairs, staging and landscaping. They can take appealing photographs. Most importantly, a real estate agent can guide you through the process or manage the process for you when you feel it is appropriate. A bad real estate agent can be an impediment to a successful transaction, so its important to know the role you wish your agent to play. Naturally, we believe, and so do our existing clients, that Tellus Real Estate Solutions would be a good choice as your partner in the sales process. See our seller services page for more information as to the services we provide our clients.
• Real estate attorney: Your real estate sale is made up of a series of contracts: listing contracts if you use an agent, purchase and sale contracts when you receive an offer, loan documents, title insurance policies and escrow contracts. We always recommend that you review the terms of contracts and agreements with a knowledgeable attorney. Again, if your transaction is particularly complex, we may insist on an attorney review.
• Septic inspector/pumper: Having your septic system (if you have one) inspected before sale is similar to having the rest of your home inspected. It gives you a chance to find and fix problems before a buyer does, which will often mean the bottom line result is better for you than having it come up during the sale. But, like the home inspection, it has the same possible negative consequences. If you find a problem you will be legally required to report it.
• Title agent: The title agent is another team member typically associated with buyers. However, as the seller you will be providing the buyer with, and paying for, a title policy. The title agent will do a title search, making sure that any liens against the property are documented so they can be removed before closing. The title agent will also provide the official legal description of the property so it can be reviewed. Tellus Real Estate Solutions, and most other real estate agents, will ‘open title’ when you list your property so that we can review the results of the title search with you at the beginning of the process.

Each transaction is different. The important thing to recognize is when to bring in professional help. You want your sales transaction to be as stress free as possible. So, check with a professional like Tellus Real Estate Solutions whenever you feel unsure about how to handle a situation or need advice on appropriate actions to take.

Here you will find the main steps in the home selling process with detailed topics outlined to provide you with additional information on each step. If you prefer, we are happy to meet with you and go over each and every step in the process in person. Just contact us.

Selling your home is a very important event. If you’ve decided to sell, then you no doubt have some specific goals in mind. Those goals may be different for each seller, however, the process of selling your home is similar. That process, while straightforward, is not necessarily easy and can be frustrating at times. Become familiar with the process of selling your home and you may even enjoy it as you see your goals being met.

If you are involved in a short sale, pre-foreclosure or other other type of sale you may want to check our topics on those subjects.

The following are the steps in selling your home:

Form your real estate sales team: You will need help when selling your home. That does not necessarily mean the help of a real estate agent. At a minimum, you should consult a real estate attorney. You will also want to talk to a title company, an escrow company and other service providers to help you with the various steps. Other service provides can include, along with a real estate agent: a handyman to perform repairs, a photographer to take pictures and a print designer to help create flyers.

Prepare your home for sale: Most people have a goal of maximizing the price for their home while at the same time minimizing the time it takes to sell. The most important factor in this step of the process is pricing. A close second is making sure your home is aesthetically pleasing to potential buyers. Exactly how to prepare your home will vary depending on your home’s style, neighborhood and direct competition.

Price your home to meet your goals: Correctly pricing your home is the most important thing you can do to ensure that it will sell. It is even more important when the goal includes selling it quickly. In order to correctly price your home, you must understand how it compares to similar homes which have sold in your market recently and the price for competing properties in your market. You also need to understand other market factors that have a direct affect on your pricing.

Market your home to get offers: To sell your home you need to get offers. To get offers, you need to market your home. Preferably, you will market your home to the widest audience possible. More importantly, you need to market your property to the correct audience.

Review and negotiate offers: Assuming you have prepared and priced your home correctly and you’ve done a good job of marketing, you will receive offers. When you receive offers it is important to review the details. You will also want to negotiate any offers to ensure that you are getting the best possible terms, and that you are meeting your goals.

Follow up on buyer due diligence: Once you have accepted an offer, the work doesn’t end. The buyer will typically have several contingencies. You need to follow up with the buyer during the due diligence process. They will likely need to inspect the property and have an appraisal performed. They also need to complete their loan paperwork so that the transaction can close on time. Review the contract and list all the important dates on a calendar so you know if these buyer due diligence tasks are falling behind.

Get ready to move: While the buyer is getting ready to move in, you’ll need to get ready to move out. You will need to make sure you have a new place to live and make sure to pack all of your belongings. And, as a seller, you will need to keep your property maintained in the same state as when the buyer put in their offer.

Close the sale: The closing process is much easier for sellers than for buyers. For one thing, you have far less paperwork to sign. You will want to review the HUD closing statement to make sure you are paying your fair share, and only your fair share, of closing costs. You will need to provide the escrow agent with your lenders’ contact information so they will receive proper instructions for paying off any loans. The escrow agent will need to know how you wish to be paid (check or wire transfer to your bank).