“It was a difficult task to move after 30+ years and downsize. I avoided it for years. Sebnem made it so easy with her planning tips. She walked through my house, which had 4 bedrooms and I had to downsize to 2 bedrooms. She gave me homework on a weekly basis. 2 months later, she found my perfect retirement cottage. I could not have done this without Sebnem. She is graceful and patient.” – Carol H.
Home Preparation
We have to prepare some homes by pointing out items the seller needs to purge. For some homes, we just need to bring in a contractor to update certain things. We need to make an analysis that if something is fixed, what’s the return on investment? The plan must fit the seller’s budget. We give family members a deadline to come by and pick up items they want from the home. The rest may be donated.
Showing the Home
Showing the home is the most meaningful and personal part of the process to the seller. We want a home to be welcoming and attractive: well lit, clean, and nicely staged. If a home is empty, a staging service can be brought in, which is well worth the money. If you will live in the home during the sale, we’ll show you how to declutter and stage with the furniture you have on hand.
Sebnem says, “Make your bed every morning!”
We don’t want decline a showing request because you went out shopping and forgot to tidy up before you left. We acknowledge how hard it is for a seller to live in this constant state of readiness to receive visitors, but the more exposure the property gets, the greater the likelihood of a sale.
Offers and Negotiation
The seller is the decision maker in everything. Broker’s advisory role and partnership is to educate you on the selling process. Offers need to be reviewed carefully and compared. The financing contingency is extremely important. Your broker will call up the loan officer to inquire additional information about buyer’s pre-qualification or pre-approval letter: Did they look at financial statements? Did they run it through underwriting for preliminary approval? Your broker will also call the buyer’s broker to collect additional information that help the seller to make decisions.
Of course, the buyer’s offer is not a take it or leave it situation. You can push back: counter on points you don’t agree with. Your broker will help you strategize over this.
Sebnem says, “When you list a condo for ten thousand dollars more than any other unit sold in your complex, can you be patient? Can you wait three, four, or six months to get that price? How long does it take you to save ten thousand dollars by any other means?”
Managing the Contract
Your broker’s work does not end once the contract is mutually agreed. There are many crucial deadlines to keep track of:
- Delivery of earnest money.
- Home inspection and maybe septic, sewer line, or well inspections.
- Additional inspections recommended by the home inspector.
- Appraisal by the bank’s representative.
- Removal of the financing contingency.
- All contingencies to be satisfied to secure the earnest money
- Final buyer walk-through.
- Delivery of the key after loan funding and county recording.
- The exact hour of transfer of possession.
- When to activate insurance and utilities.
- And more depending on circumstances.
Sebnem says, “To this day and in the last three years, we have been having a great time with these appraisals. But remember, five years ago? Then I was negotiating appraisals.”
- There are many points of negotiation beyond the initial contract:
- Results of inspections.
- Low appraisal.
- Extension of the closing date.
- Review of repairs.
- Dissatisfaction with final walk-through.
- And even post-closing issues: failure to remove debris, failure to move out!
Your broker will guide you through the process, steer you around pitfalls, and educate you on your responsibilities.
Sebnem says about earnest money, “I am managing literally a chunk of cash in your pocket. That money can be taken away from you. The buyer’s offer comes in with all these – I call them bumps in the road – contingencies. There are cautionary moments when the buyer comes to a halt and considers whether to bail or not.”
Inspection from the Seller’s Perspective
The buyer is returning to the home along with a licensed inspector. Expect the visit to take two to three hours, during which time you need to be away. The buyer’s agent will attend and is responsible for protecting the property. The inspection should be non-invasive – no poking holes in walls, for example.
Sebnem says, “The inspection is another showing. The home needs to be in tip top shape. If the buyer sees a big discrepancy from their previous visit, the sale could be in jeopardy.”
Appraisal from the Seller’s Perspective
The appraiser is sent by the buyer’s bank to ensure that the home will be worth at least the contracted price. Again, the home needs to be clean and presentable as during showings and inspections. Appraisers will stand before every door and take a picture of every room. They take pictures of the outside and the deck. An underwriter will scrutinize the photos and ask for repairs to be made based on what they see.
Financing Contingency
Sebnem says, “Your home is not really sold until that financial contingency is waived. You can go back on the market any time until that financial contingency is waived.”
On the 21st day or as indicated on the financing addendum, your broker will give “notice to perform” requesting the buyer waives the financing contingency. Once the financing contingency satisfied by the buyer’s lender, to move forward to closing guaranteed? Ask Sebnem when you meet with her? If the buyer guesses wrong, their earnest money will be forfeit to you.
Closing Day
The closing day is not so simple as many people assume – even many buyer’s brokers have not read the contract and understand these nuances. Firstly, we want to hear that the buyer’s loan has funded. Once that happens, the escrow officer will submit the deed for recording at the county. We aren’t done yet. Now, we wait for the county to respond with recording numbers, confirming that they have legally recorded the new ownership. Delays by the lender, escrow, or county can bump closing to the next day. Assuming all goes well and we get back recording numbers in the afternoon…but…ah, ah…Dear Buyer, you don’t necessarily get the key yet. The contract gives the seller possession through 9:00pm of the closing day. The seller may need that time for cleaning and moving out.
Sebnem says, “I caution buyers and sellers not to make fixed plans around a particular closing date without being in communication with all parties. At least a quarter of the time, closing will be delayed. I had one client end up homeless for two weeks after giving up his apartment too soon.”