Seller’s steps and timelines for a real estate transaction:
Two parts for a seller’s steps in a real estate transaction: Pre-transaction and transaction.
Pre-transaction
1.Be sure your plans for a replacement home are in good order.
2. Prepare your home for sale – do minor repairs such as torn screens, patio door screens that are difficult to open and close, and state-mandated safety hazards like a raised cement crack in the patio that may cause a visitor to trip and fall. Have your home clean and orderly, and free of pet and other odors. Baking some cookies will help if you hold an open house. Be sure the front door and yard are presentable for good curb appeal. Buyers who see a lot of deferred maintenance will think there will be more physical condition issues. Have your home in as move-in condition as possible. 95% of all buyers want a turnkey home. Most couples work and don’t have time to renovate or repair. Declutter home and garage and clean home. Most buyers want an immaculate move-in condition home. Clean windows (will allow in more natural light). Be sure exterior lights work. Clean mailbox. Make a flyer and list your home’s best features, including the location.
3. Hire a savvy and competent Realtor or prepare to sell by yourself. Establish an accurate asking price by studying and analyzing the comps with your agent. Beware of agents who “buy the listing,” meaning they will promise to get your home sold for x dollars more than what the comps show you can get (aka fair market value). This ploy is legal, but unethical. Mostly, it is an injustice to the owner because usually the price will have to be reduced one or more times to get the home sold. Your Realtor must have a strong and effective marketing program that will attract thousands of buyers and buyers' agents.
4. Have an extra house key for your Realtor so he/she can put it in the lock box.
5. Complete the mandated seller disclosures and give them to the buyer.
6. Be sure your agent has a strong and effective marketing program ready to go, which includes a compelling and convincing description of your home in the MLS property profile sheet, because that (and the internet) is where buyers’ agents and most buyers begin searching for a home. Expound on the desirable location because many potential buyers will be from out-of-the-area. Be sure the listing is entered on the hundreds of real estate portals, websites, and social media sites, and promoted to thousands of real estate agents and brokers.
7. Schedule one or more open houses and promote them. Strategically place at least 15 directional signs and distribute invitation flyers to 100-200 neighbors. Neighbors may have relatives or friends who may want to move into the neighborhood, or they may want to invest in income property.
8. The seller shouldn't allow anyone to preview the home who doesn’t have a lender’s pre-approval letter. Otherwise, the visitor will waste the owner's valuable time. The exception is open houses.
9. Your agent should: 1) explain every paragraph (or at least the most important ones) in the purchase agreement; 2) give you a sample copy of the agreement with a brief written explanation of each paragraph ffor easy reading; and 3) give you a copy of the transaction steps for sellers and buyers. (both should know each other's steps).
10. When an offer is presented to the seller the choices are to accept, counter, or reject. Counteroffers are most common.
11. After an offer is accepted and ratified and escrow has opened, the transaction begins.
The transaction
1. Your agent will give you a contract timeline sheet to check completed items that have deadlines. He/she will follow-up to be sure all deadlines are met. Missing a deadline can void the contract.
2. Your agent will follow-up with escrow to be sure the buyer wired the earnest money deposit (EMD) to the escrow company.
3. Your agent should contact the buyer’s lender every few days to see how the financing is progressing. This will help to avoid a TFT (transaction fell through).
4. Make your home accessible for the buyer’s 17 days investigation rights, which includes a professional property inspection.
5. Be ready to negotiate with the buyer as to who will be responsible for any needed repairs, including termite and dry rot damage (usually in bathroom sub-flooring). Usually there will be fumigating (tenting). The buyer will submit a Request for Repairs (form RR) to the seller. The seller can accept, counter, or refuse the request for repairs. Within the buyer’s 17 days investigation period the buyer will either remove all contingencies (loan, appraisal, and property condition) or negotiate with you (through the agents) regarding any needed repairs.
6. If the buyer is satisfied with the terms and removes all buyer contingencies, he/she will be contractually required to move toward close of escrow (COE).
7. Approximately five days before COE the buyer will do a final walkthrough to determine if your home is in the same condition as when the buyer last saw it. It isn't a contract contingency. Any issues could delay COE or could be settled after or outside of COE.
8. One or two days before COE the buyer will submit the down payment balance and closing costs.
9. One or two days before COE the buyer will sign many documents, including loan documents.
10. The escrow holder (company) disburses funds, including the seller’s proceeds, escrow closes and the transaction is recorded with the county clerk. The new owner receives the keys to the house, and a few days later the owner will receive the grant deed. Usually, the entire process takes 30-45 days.
More to dos:
+ Follow terms and deadlines in the Contract.
+ Order the HOA packet (includes CC&Rs, bylaws, financials, reserves, and more). + Prepare for buyer’s inspection by allowing easy access to all areas.
+ Provide change of address to post office, bank, credit card companies, insurance companies, schools, and friends.
+ Collect house keys, garage door remotes, remote security devices, transferrable warranties for appliances, solar panels, etc.
+ Prepare for termite repairs and fumigation (tenting) if required by Contract. Note: Tenting can be done after COE if proper arrangements are made.
+ Have seller's disclosures ready.
+ Before showings: Put dog in garage or back yard, empty garbage and trash containers, open shades and curtains to allow in natural light, turn on lights.
+ Cancel utility companies, internet, cable, and satellite services, effective at COE.
+ Cancel homeowners insurance.
+ Advise your lender that your home is for sale.
+ For condo and townhouse owners, advise HOA president and HOA mgnt. Co. company that your home is for sale.
+ Advise everyone of the estimated COE date.
+ Get quotes from moving companies.
+ Write down alarm codes and instructions for buyer.
###
Here is a good article: For additional information, refer to paragraphs 4-10 in the following link to know how the buyer proceeds:
https://homesbyflavia.com/blog/real-estate/buyers-guide-to-a-real-estate-transaction
Your questions are always welcome.
Best regards.
Flavia Brown. Realtor