Sellers
Choose the Right Agent
What’s Included in the Commission
Choose an agent that has access and includes a Sellers Home Inspection, Staging, Interior Decorator Consultation, Termite Inspection. These are all pre-listing items that will help to facilitate a faster, smoother close!
Experience Counts
When you’re ready to sell your home you don’t want to be part of someone’s learning curve. One of the first questions you should ask a potential Realtor is how long they’ve been licensed and how long they’ve worked in the area?
Think Locally
Sellers should look for a Realtor who is familiar with the area, and make sure to ask what they have sold or listed in the neighborhood recently. Your agent should be able to talk to prospective buyers about all the details of the neighborhood, schools and the surrounding community.
Stay in your Range
It’s always a good idea to choose a Realtor who concentrates on your price range. The reason is pretty simple since if your agent has several properties in your same price point then there should be many more buyer leads.
Interview a Few Candidates
Once you’ve done some background work, set up interviews with two to three Realtors you’re considering. Once you’ve narrowed it down to 2 or 3 Professionals it simply becomes a personal choice. Remember you will be interacting with your agent often while your home is on the market. You might also want to visit open houses to observe the agent in action. Are they familiar with the property, the area, the real estate transaction? Did they show the home in a professional manner? Did they seem enthusiastic
and were they easy to communicate with?
Don’t Let an Agent “Buy Your Listing”
If one agent says he or she can sell your house for substantially more money than the other agents quoted you, they’re probably telling you what they think you want to hear in order to get your listing. Or, they may not be familiar with the market in your town or neighborhood. Statistics show that properties which are over-priced when they are listed stay on the market longer and sell for less than if they had been properly priced from the start.
Go with a Top Producer
Seniority counts a great deal in the real estate game. It’s important to go with a “top producer” because the top 10% of the Realtors move at least 90% of all the homes in any given area. Top producers are way more connected than your average Realtor.
When was the last time they sold a Home
If your Realtor hasn’t sold a home within the past six months, alarm bells should be going off. The Realtor should have a consistent flow of homes for sale, ideally in your price range or higher. Chad has average over 30 closed transactions per year for over 25 years!
Make sure your agent has a Web Presence
If your Realtor doesn’t have a hisname.com website in this day and age where 80% of properties are found on-line, then you should be leery.
The Escrow Process
You accept a contract, now what?
One of the biggest differences that separates Chad from most Realtors is his strong Finance background. Since he performs Refinancing and New Purchase Loans for all of his own buyers and Past Clients he is able insure, outside of any catastrophic event, that your transaction will close. There is nothing worse for a seller than to find out on the 28th day of a 30 day escrow that the Buyer didn’t qualify! The fall out ratio, per NAR, for the Real Estate Industry is almost 30%! Chad takes the guess work out of the equation and verifies directly Credit Scores, Verification of Funds, Debt Ratios, Employment Status and Tax Returns. Even though Chad is acting as your representative he strongly believes it’s his responsibility to confirm all the details regarding the buyers’ ability to perform to insure a smooth closing.
The offer is accepted, Escrow is open and it’s time to schedule the Inspections!
Once the offer is accepted the buyer will be ready to schedule their inspections
- A home inspection is performed by a Certified Home Inspector (2 to 4 Hours)
- A Termite Inspection (1 to 2 Hours)
- An Appraisal (30 Minutes to an Hour)
Although there are many other types of inspections available to buyers, these are generally the most common.
During this inspection period the buyer will also be reviewing certain disclosures.
- Preliminary Title Report
- Termite Report
- Natural Hazard Report
- HOA Documents
- Seller Disclosures
If any of the above items are areas of concern the buyer may ask for further inspection or additional information. Once these items are finalized we can look forward to a Buyer Signed Contingency Removal. At this point it’s time for you to start concentrating on your check list for moving!
Whether you’ve lived in your home for 2 years or 30 years it’s always going to seem intimidating. There is always something that is forgotten, but generally with some planning, the move will go smoothly.
Always interview at least 3 moving companies, preferably you would like all 3 to be solid referrals from your agent, family or friends.
You’ll want to contact the utility companies to disconnect your current service and to establish service at the new property. You can check the Resources tab on this site for links and phone numbers. Don’t turn off the utilities prior to the close of escrow and preferably leave a couple days pad. Don’t forget to request that any deposits you may have provided either be refunded or transferred. Electric, water, gas phone and cable are the most frequently contacted, however, there may be additional services that you need to connect at the property.
If you have children or pets, you may want to arrange for someone you trust to watch them on the day of the move. Sometimes moving day can be stressful for them.
Place all of your legal, financial and insurance records in a safe place. You may want to consider taking them with you personally rather than sending them with the movers. It is also a good idea to back up important files from your computer.
Verify the date of your move with the moving company and how many movers and trucks they are sending. You can create a list of where each box or piece of furniture should be placed so whoever is helping with the move can follow your instructions.
Make sure to set aside all manuals, extra keys, garage door openers and written instructions ie: Trash Day, Gardners Phone Number etc. for the new buyer.
Once all of this has been done it’s time to schedule the final Walk Through.
Prior to closing, the buyer will conduct the “Last Inspection”, usually referred to as the Final Walk-Thorough. This is where they will confirm that all requested repairs have been completed and that the home is in the same condition as when they saw it last.
Congratulations you have completed the process and you and your family are moving!
Tax Consequences
Possible Capital Gain, Is the Profit You Made on your Home Taxable?
First find the adjusted sale price
Take the sale price of the current transaction and Subtract the Costs of the current sale – including inspections, real estate commissions, repairs and money spent to fix up the home right just prior to the sale
Now subtract the Costs of improvements over the years– including room additions, decorations, etc.
Now Subtract the original Sale Price of your home.
The difference is your capital gain.
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of your home is exempt from taxation if you meet the following criteria:
If any of the above items are areas of concern the buyer may ask for further inspection or additional information. Once these items are finalized we can look forward to a Buyer Signed Contingency Removal. At this point it’s time for you to start concentrating on your check list for moving!
- You have lived in the home as your principal residence for two out of the last five years.
- You have not sold or exchanged another home during the two years preceding the current sale.
*It’s best to seek advice from a tax specialist when selling your home**
Other notable exclusions that are California Specific for property taxes is Propositions 13/60/90. Please see the links on the Resource tab for further explanation.
