New listing guide for Homeowners
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This document provides tips and information for listing a home for sale. It discusses pricing the home, timing the market, accessibility for showings, utilizing the latest marketing technology, presenting the property correctly, seasonal sales trends, evaluating the marketing plan, signage, repairs, giving the selling process enough time, screening prospects, test marketing the home, enhancing curb appeal and interior presentation, tips for home showings, the purpose and process of title insurance and escrow. The overall summary is a guide for real estate agents and homeowners on best practices for listing a home.
New listing guide for Homeowners
- 1. Guide
- 2. New Listing Guide 15 HOME LISTING TIPS 1. Pricing Your Home -> Your agent can research comparable sales in your area and advise you of the appropriate price range for your property. 2. Flexibility On Financing -> may secure a better selling price. 15 HOME LISTING TIPS 3. Market Timing -> Ask a real estate professional to determine whether the market cycle is poised to net you the most money. 4. Property Accessibility For Potential Buyers -> Lock boxes are a great way to make your home the most accessible to agents for showing. Appointment-only showings are the most restrictive. If your lifestyle is not compatible with frequent showings, your agent will help you determine a solution to suit your needs. Remem- ber, the easier a home is to show, the better the odds are of getting the deal you want. 5. Latest Marketing Technology 01 -> Make sure your agent utilizes the latest technology, such as internet sites that cater to home buyers. In some areas, cable access advertising is popular. Others use 800-number interactive voice response systems. A good agent will know where you can get the best exposure. 6. Present Your Property Correctly -> Put some items in storage, create more light, play music, or otherwise improve the 7. Seasonal Property Sales -> Don’t base selling decisions on the season. Property sells year-round. 8. Re-evaluate The Marketing Plan -> Re-evaluate your agent’s marketing plan every 20 days. Make needed adjustments based on the current market and buyers. 9. -> Eighty percent of all buyer activity comes from signs and MLS listings. So if you are not get- price, not necessarily your agent. CALCOUNTIES TITLENATION - is a registered trademark of CALCOUNTIES TITLENATION. All Rights Reserved © consult legal counsel regarding their rights and responsibilities under state and federal law. The information contained is deemed reliable but not guaranteed.
- 3. New Listing Guide 15 HOME LISTING TIPS - CONTINUED 10. First Impressions Are Golden 15 HOME LISTING TIPS - CONTINUED -> Sales have gone south thanks to unkept lawns, cluttered closets, unpainted front doors, hard to work locks, blown light bulbs, bad colors, stains, unlit areas and foul smells. Spend time on the little things. Double up on your gardening. Keep things cleaner than usual. Take serious control of your pets during this time period. 11. Make The Right Kind Of Repairs -> Before making improvements prior to listing, consult a real estate professional. Some upgrades will not yield any real increase in value, while others may increase property value 12. Give The Sales Process Enough Time -> Homes may take 3-6 months to sell in any market. Estimate how much time you have before you need to sell and then plan ahead to allow extra time. You don’t want to be forced 13. Screen Prospects Adequately -> One of the best reasons for hiring a realtor is his or her ability to pre-qualify a prospect prospect has an ulterior motive for shopping homes, other than purchasing. 02 14. -> The top agents in the industry report that their sellers are responsible for at least 1 out of house in move-in condition. Your realtor should be ready to hand you all sorts of 15. Test The Market -> Never put your property on the market unless you really want a sale! Get ready for a professional sales push when you list with a great agent. If your plan harbors some indecision, resolve it before you list because success is every great realtor’s objective!
- 4. New Listing Guide presenting Your Home Enhancing how your home shows to potential buyers cannot only help to sell it more quickly but can often improve the selling price. Stand Out In Your Neighborhood -> A well kept, neatly landscaped property can be very inviting to the potential buyer inter- ested in viewing your home. Refuse containers should be out of view, and the lawn should be freshly trimmed. Fertilizing a few weeks prior to listing will help your lawn look lush and green. presenting Your Home Woodwork should be free of chipped or cracked paint. Fresh Look -> The front door should be clean or freshly painted. Brass knobs should be polished. Consider placing a planter of fresh flowers on your front porch. Small Repair Details -> Repair all loose doorknobs and cupboard hinges, dripping faucets, stained sinks, loose or missing caulking, sticking doors and windows, and damaged or missing window screens. Tidy Up -> Tidiness makes a room look larger and helps the buyer visualize his/her décor in your home. Workout rooms, sewing rooms, laundry rooms, and home offices should be as organized and clutter-free as the main living space in your home. 03 Light Up Your Home -> An open, airy feeling generates comfort and welcomes the potential buyer into your home. Drapes, curtains and mini blinds should be open to allow plenty of light in your home. Turn on all the lights when showing your home at night. Clean Closets -> Neat, well-organized closets appear larger. Larger closets help sell homes. Squeaky Clean -> Remove stains from sinks, toilets and bathtubs, including hard water spots on shower enclo- sure doors. If drains run slowly, unclog them. Hang fresh towels on towel rack. Clean Kitchen -> Make the most important room in the house appear larger by cleaning clutter from the countertops. Avoid dirty dishes in the sink. All countertop appliances should be kept out of view. Replace or repair worn out flooring. Clean the ventilation hood over your stove. A brighter kitchen is always more attractive.
- 5. New Listing Guide PRESENTING YOUR HOME - PART 2 6 House Showing Tips 1. Avoid having too many people present. The potential buyer may feel uncomfortable PRESENTING YOUR HOME - PART 2 or pressured to hurry through your home. 2. Don’t tag along or force conversation with the buyer. 3. Turn down the stereo or television so the buyer and realtor can talk undisturbed. 4. Keep pets out of the way, preferably, out of the house. 5. Never apologize for the appearance of your home. Let your realtor handle questions and concerns the potential buyer may have. 6. Let your realtor negotiate price and terms with the potential buyer. Realtors are trained negotiators who know what the buyer is looking for in a home. 04
- 6. New Listing Guide titLe insuranCe - do i need it? Title insurance offers home buyers financial protection against ownership disputes and other title problems after escrow closes. When you consider that real estate is probably your most valuable asset and the most significant investment you may ever make, title insurance offers welcome peace-of-mind. titLe insuranCe - do i need it? Title insurance is also a selling feature used to make your property more at- tractive to buyers as well as to lenders who are more willing to make mort- gage funds available in areas where they know little about local market condi- tions. Title Insurance Uncovers Hidden Problems The title insurance process begins with a search for title records on the prop- erty for purchase. The search may uncover things that need correction before providing a clear title, such as: 1. Outstanding mortgages, judgments and tax liens 2. Deeds, wills and trusts that contain improper vesting and incorrect names 3. Incorrect notary acknowledgments 4. Restrictions on height or use of the land 5. Easements for utilities or access rights 05 In spite of the expertise and dedication that go into a search and examination, hidden defects are still a possibility after a real estate purchase is complete, including: 1. Previously undisclosed heirs with claims against the property 2. A forged deed that transfers no title to real estate 3. Instruments executed under expired or fabricated power of attorney 4. Mistakes in the public records or unrecorded claims 5. Forced removal of encroachments onto the adjoining property Title Insurance Partner The title insurer, on your behalf, negotiates with third parties, defends against title disputes and pays on any valid claims. Unlike other kinds of insurance that protect against future events and charge an annual premium, title insurance is a one-time payment and safeguards against loss from hazards and defects already existing in the title. Extended coverage is also available to cover future events, as well.
- 7. New Listing Guide HOLDING TITLE Tenancy in Common Joint Tenancy Community Property Community Property with rights of survivorship Parties - Parties - Parties - Parties - Any number of persons. Any number of persons. Only husband and wife. Only husband and wife. (Can be husband & wife) (Can be husband & wife) Division - Division - Division - Division - Ownership can be divided into Owner interests Ownership & managerial Ownership & managerial any number of interests, equal must be equal. interests are equal. interests are equal. or unequal. Title - Title - Title - Title - Each co-owner has a There must be unity of title Title is in the “community.” Title is in the “community.” separate legal title to his and time (created in one Each interest is separate but Each interest is separate but or her undivided interest. document). . must state community property with right to survivorship. Possession - Possession - Possession - Possession - Equal rights of Equal rights of Both co-owners have equal Both co-owners have equal HOLDING TITLE possession. possession. management and control management and control Conveyance - Conveyance - Conveyance - Conveyance - Each co-owner’s by one co-owner Written consent of other Written consent of other interest may be without the others will ter- spouse is required, and spouse is required, and conveyed separately minate that individual’s joint separate interest cannot be separate interest cannot be by its individual owner. tenancy. conveyed except upon death. conveyed except upon death. Purchaser’s Status - Purchaser’s Status - Purchaser Status - Purchaser Status - Will become a tenant in Will become a tenant in can acquire title from the can acquire title from the common with the other common with the other community with written community with written property co-owners. property co-owners. consent or joinder of both spouses. consent or joinder of both spouses. 06 Death - Death - Death - Death - On co-owner’s death, his or On co-owner’s death, his or her Upon death of one spouse, 50% Upon death of one spouse, his her interest passes by will interest ends and cannot be belongs to surviving spouse, or her interest ends and cannot to that person’s devisees or disposed of by will. Survivor(s) 50% goes by will to descen- be disposed of by will. Survivor heirs. No survivorship right. own(s) the property. An dent’s devisees or by succession - to surviving spouse. davit of death (community prop- tenant establishes death. erty with rights of survivorship) establishes death of a spouse. Successor - Successor - Successor - Successor - Devisees or heirs become Last survivor owns If passing by will, tenancy in Purchaser can only acquire tenants in common. property 100%. common between devisees whole title of community; and survivor results. cannot acquire a part of it. Creditor’s - Creditor’s - Creditor’s - Creditor’s - Co-owner’s interest may Co-owner’s interest may Property of community is liable Property of community is liable be sold on execution sale be sold on execution sale for contracts of either spouse for contracts of either spouse to satisfy his or her creditor. to satisfy creditor. The creditor which were made after marriage which were made after marriage The creditor becomes a becomes a tenant in common. and prior to or after Jan. 1, 1975. and prior to or after Jan. 1, 1975. tenant in common. Co-owner’s interest Co-owner’s interest cannot be sold separately; whole cannot be sold separately; whole property may be sold on property may be sold on execution to satisfy creditor. execution to satisfy creditor. Presumption - Presumption - Presumption - Presumption - Favored in doubtful Must be expressly stated. The legal presumption is After July 1, 2001, there is no cases, except in husband Not favored. that property which has presumption. The code reads and wife case. been acquired during the that deeds must state course of the marriage is “community property with the community property. right of survivorship.”
- 8. New Listing Guide esCrow proCess What Is Escrow? When the decision is made to purchase a property, terms and conditions are estab- lished for the ownership transfer of that property. These terms and conditions are given to a third party known as the escrow holder. The escrow holder acts for both parties and protects the interests of each within the authority of the escrow instruc- tions. How Does Escrow Work? The escrow is a depository for all monies, instructions and documents necessary for the purchase of your home, including your funds for down payment and your lend- esCrow proCess er’s funds and documents for the new loan. Generally, the buyer deposits a down payment, and the seller deposits the deed and any other necessary documents with the escrow holder. Prior to close of escrow, the buyer deposits the balance of re- quired funds with the escrow holder. The escrow holder forwards the deed to the title company for recording and delivers the monies to the seller. The title company notifies the escrow holder that a policy of title insurance can be issued, showing title to the property is vested in the name of the buyer. The escrow holder handles the prorations and adjustments on any fire/hazard insur- ance, real estate taxes, rents, interest, etc., based on the escrow instructions of both 07 parties. Escrow is completed once all terms and conditions have been satisfied, documents have been recorded and funds have been disbursed. How To Open An Escrow? Your real estate agent will open the escrow for you. As soon as you execute your pur- chase agreement/joint escrow instructions, your agent will place your initial deposit into an escrow account with a closing company such as CalCounties TitleNation. How Will I Know Where My Money Has Gone? Written evidence of your deposit is generally included in your copy of the purchase agreement/joint escrow instructions. Your funds will then be deposited in an escrow or trust account. How Long Is An Escrow? The length of an escrow is determined by the terms of the purchase agreement and can range from a few days to several months.
- 9. New Listing Guide ESCROW PROCESS - CONTINUED What Information Is Needed? Because many people have the same name, the state- - ing date of birth, social security number, etc. The statement form is necessary and the ESCROW PROCESS - CONTINUED Lender information provides the escrow holder with the name, address and phone num- ber of your lender as soon as possible after opening escrow. Hazard/Fire information If you are purchasing a single family, detached home, or in some approved. You should immediately begin looking for an insurance agent; not all compa- name and phone number so that he/she can make sure the policy complies with your lender’s requirements. You must have your insurance in place before the lender will fund money to the title company. Title to Home Page 6 shows common ways of holding title to help you understand the criteria for determining how you wish to hold title to your home. The escrow holder will need this information in order to prepare the grant deed, and your lender will need this information to prepare loan documents. We suggest you consult an attorney, tax consul- 08 What Is Close Of Escrow? - mately three days before the scheduled close of escrow date, the loan documents are documents and then wires the loan funds to the title company. Escrow collects the remainder of the buyer’s down payment and closing costs. When loan funds are wired, and disbursement of any remaining proceeds to all parties.
- 10. New Listing Guide paYment proCedure On these pages, you will find the traditional distribution of expenses associated with a purchase of real estate. However, many of these items can be negotiated by both parties at the time of the offer, excluding some expenses required by the lender to be paid specifically by seller. Buyer Usually pays for: 9. Interest on new loan from date of funding 1. Escrow fees to 30 days prior to first payment date paYment proCedure 2. Document preparation (if applicable) 10. Assumption/Change of Records fees for 3. Notary fees take-over of existing loan 4. Recording charges for all documents in 11. Beneficiary Statement fee for assumption buyer’s name of existing loan 5. Termite inspection (according to contract) 12. Inspection fees (roofing, property inspec- 6. Tax proration (from date of acquisition) tion, geological, etc.) 7. Homeowner’s transfer fee 13. Home Warranty (according to contract) 8. All new loan charges (except those required 14. Lender’s policy by lender for seller to pay) 15. Fire insurance premium for first year Seller Usually pays for: 10. Termite inspection (according to contract) 09 1. Real estate commission 11. Termite work (according to contract) 2. Escrow fees 12. Home warranty (according to contract) 3. County documentary transfer tax (55 cents 13. Any judgments, tax liens, etc., against the per $500 of consideration, exclusive of the seller value of any lien or encumbrances attach- 14. Tax proration (for any taxes unpaid at ing to the property at time of sale) time of transfer of title) 4. Applicable city transfer/conveyance tax 15. Any unpaid homeowner’s dues (according to contract) 16. Recording charges to clear all documents 5. Document preparation fee for deed of record against seller 6. Any loan fees required by buyer’s lender 17. Any bonds or assessments (according to 7. Payoff of all loans in seller’s name (or ex- contract) isting loan balance if being assumed by 18. Any and all delinquent taxes buyer) 19. Notary fees, escrow fee 8. Interest accrued to lender being paid off 20. Title insurance premium: Owner’s policy 9. Statement fees, reconveyance fees and any prepayment penalties
- 11. New Listing Guide INSPECTION - PROCESS Structural pest control inspection Often referred to as a “Termite Report”, the structural pest control inspection is conducted by a licensed inspector. In addition to actual termite damage, the pest report will indicate any type of wood-destroying organisms that may be present, including fungi (sometimes called “dry rot”), that generally results from excessive moisture. Most pest reports classify conditions as Section 1 or Section 2 items. Section 1 conditions Section 1 conditions are those that are “active”, or currently causing damage to the prop- erty. Generally, section 1 items need to be corrected before a lender will make a loan on a INSPECTION - PROCESS home. Section 2 conditions Those that are not currently causing damage, but are likely to if left unattended, are sec- tion 2 items. A typical section 2 item is a plumbing leak where the moisture has not yet caused fungus decay. Who pays? The purchase contract will specify who is responsible for the inspection and making these corrections. This is a negotiable item and should be considered carefully. Physical Inspection The physical inspection clause in your purchase contract, when initialed by both parties, gives permission to have the property thoroughly inspected. This is usually done through a General Home Inspection. While home inspectors are not currently required to have a li- cense, most are, or have been, general contractors. The inspection and the resulting report 10 provide and overall assessment of the present condition of the property. What is Inspected? - ter heater, furnace, electrical service, plumbing, and other visible features of the property. roof and furnace inspections. Further Inspections If conditions warrant, the home inspector may recommend a Structural Engineers Report. Such a report would identify structural failures and detail recommended corrections. Who pays? Typically, this inspection is paid by the buyer. Geological Inspection You may also elect to have a Geological inspection to educate yourselves as to the soil conditions at the home. This inspection is performed by a geological engineer and in- volves not only physically inspecting the property but also researching past geological activity in the area. The primary purpose of a geological inspection is to determine the stability of the ground under and around the home. Who pays? Typically the buyer pays, but as with other inspections, this is negotiable according to the contract. Home Warranty Home protection plans are available for purchase by a buyer or seller. Such plans may provide additional protection of certain systems and appliances in the home.
- 12. NewNew Listing Guide Listing Guide paYment pmoving and paCking - tips roCedure N Moving to a new home can be time consuming and costly. Sorting your belongings and making sure you don’t lose or misplace things is impor- tant in the moving process. Here are 10 tips to go by when moving into a new home. 1. Make a List of your belongings, that way you can keep track of what is left to move. 2. Label your boxes. 3. Buy tape and packing paper. 4. Make sure you use packing paper for your fragile items. 5. Rent a truck or van for hauling items. This could save you money by moving a huge amount of your belongings all at one time. 6. Set placement ahead of time so you have an idea where to place things accordingly. 7. Use a dolly for moving heavy items. 8. If your not using a moving company, ask family members or friends for help. The more help you have the faster you can move in to your new home. 9. Pack your items with other items that match, for instance: Cloths with Cloths, pictures with pictures, etc. 10. Drive carefully... Driving fast and taking fast turns can drop boxes and break your belongings on the way to your new home. moving and paCking - tips 11
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