Real Estate - An Information Website

Prepare a Comparative Market Analysis

Your property has many values: one to the tax assessor, another to a lender or insurance company, and yet another value to you, the owner. It also has different values to prospective buyers, depending on their needs, desires and financial resources.

• There are many factors that influence the market value of your property, including location, buyer demand and financing. The purpose of this presentation is to allow the agent and you to work together to set an appropriate listing price.
• Market value is described as “the price at which a willing seller will sell, and a willing buyer will buy, neither being under abnormal pressure.” In setting the listing price, you must consider all relevant factors such as recently sold properties in your area with similar features to those in your home.
• A market evaluation supplies the necessary data to help you establish the best listing price. It does not limit the actual selling price of the property. It does, however, provide a strong foundation upon which you may base your expectations.
• The market data approach is based upon the established concept that a prudent buyer will pay no more for a property than it will cost to secure a comparable substitute.
• The drawbacks of overpricing are numerous and rarely benefit the seller:
• Pricing your property higher than comparable listings may actually help sell another property more quickly than yours.
• Overpricing may attract the wrong buyers.
• Sales Associates will miss showing your property to potentially qualified buyers because your home is out of their clients’ price range.
• Fewer potentially qualified buyers will respond to your ad.
• You may miss out on the buyer who is unwilling to negotiate.
• Take photographs of the house to use for sample brochures to begin the design process.
• Agree to the Exclusive Authorization to Sell contract.
• Begin a communications log for this project.
• Post a sign in your yard when it goes on the MLS
• Place your home on the Multiple Listing Service
• Hold open houses
• Host tours for the realtors
• Prepare a color property flyer
• Negotiate the best offer
• Design a customized marketing plan specifically for you and your property
• Name recognition reaching television and radio
• Advertise in local papers and magazines.
• Advertise with our relocation and referral service
• Talk to our Buyers representing the largest market share in the region
• Display your home in all three of our real estate websites, plus MLS Listings, Cyberhomes, Homes, Homeseekers, and Homefair.
• Use the largest network of real estate professionals in the region to advertise your property.
• Help prepare your property for viewing
• Follow up and communication with you to keep you informed.
• Keep a logbook of all agent and buyer visits and feedback.
• Professional “staging” and preparing property for market-ready presentation
• Photography and descriptive copy writing
• Produce brochure & direct mail materials
• Pre-presentation promotion
• Hold Broker’s open house
• Virtual tours and photos posted on-line
• Assemble a Home Highlights booklet for distribution at open houses
• 70% of home seekers in Northern California begin their real estate search online.  More than 30% of them will actually find the home that they ultimately purchase on a real estate website. Make sure the individual website takes this into consideration.
• Use routing and mapping software to guide the Buyers to the open houses.
• Use software alert systems to automatically notify Buyers of homes that fit their needs the moment the homes hit the Multiple Listing Service.
• Use of the internet to notify agents of new listings, changes in pricing, and open house announcements.

Order and review reports that may be needed for the disclosure package:

• Structural Pest Inspection
• Property Inspection
• Roof inspections
• Chimney Inspections
• Pool/Spa Inspection
• Structural/Foundation Inspection
• Soils/Geological Report
• Heating/Radiant Heating Inspection
• Carpeting, Painting, Repair etc. Estimates
• Environmental Reports
• Asbestos Investigation
• Lead Investigation
• Sewer/septic
• Homeowners Association documents

Enter the required documents into the office inventory by 11:00AM Monday preceding a Sunday open house. Must be done within three days of taking the listing.  

• RE Infolink Profile Sheet (minimum page 3)
• Exclusive Authorization and right to sell
• MLS Translate or Authorization to Exclude
• Agency Disclosure
• Marketing authorization
• Facing Sheet (page 1 and 3 for listing)
• Open escrow with the title company
• Measure the property
• Submit new listing to the MLS
• Meet with sellers to obtain the required disclosures.
• Prepare a Seller’s proceeds statement

• Natural Hazard Disclosure Report for mandatory disclosures:
• Special Flood
• Flood and Inundation
• Earthquake Fault
• Fault Activity
• Wildland Fire
• Very High Fire
• Landslide Inventory
• Liquefaction Susceptibility
• Ground Displacement
• Mello-Roos Community Facilities
• Special Assessments
• Military ordinance
• Industrial Use
• Critical Habitat
• Airport Noise
• Williamson Act
• Ultramafic Rock
• Methane Gas/ Radon
• Mold Addendum
• Environmental Hazards Handouts
• Earthquake Safety Booklet
• Lead-based Paint Handout
• Listing Packet – Review and sign all documents
• Cover sheet for upfront disclosures
• Advisory regarding disclosure law and home security
• Advisory regarding written reports
• Marketing authorization
• ad deadlines and procedures
• Advisory regarding homeowners coverage
• Just Listed/ Sold postcard
• Agency disclosure
• Broker representing more than one principal
• Sample purchase contract
• Environmental Hazard and Earthquake booklet
• Residential earthquake hazards report
• Acknowledge receipt of homeowners guide to earthquake safety
• Affiliated business arrangement disclosure
• Order form for mandatory disclosure report
• Exclusive authorization and right to sell
• Authorization to exclude from MLS
• RE Infolink Listing Form
• Real Estate Transfer Disclosure
• Lead Paint Disclosure
• Supplemental Checklist
• FIRPTA/ Sellers affidavit
• Certification of compliance – water heater, smoke detectors
• Acknowledgement regarding inspections
• Market condition advisory
• Signage form
• Mold disclosure
  
  
  

Prepare the property for showing

• Complete repairs from the home inspection report and the structural pest report that may be required in order to sell the home and close escrow.
• Perform Section 1 work as required by the structural pest report, including fumigation of the property if required.
• Perform upgrades such as painting, new floors, and other upgrades as required to obtain the maximum sales price in the optimal timeframe.
• Arrange for staging
• Check the visibility of your house numbers, repaint or polish if necessary
• Create an inviting walkway. Add color with annuals and a new doormat to brighten your home and welcome buyers
• Open windows everyday to let in fresh air. Appeal to buyer’s sense of smell and create an inviting feeling by lighting candles or baking
• Sharpen the look of your rooms by paying attention to detail. Polish knobs and handles and replace lights in bathrooms and kitchen as necessary Turn on all lights, especially at night, to highlight your home’s amenities
• Create a focal point in your entryway by adding a picture, lamp or plant
• Remove furniture to make room appear larger and allow for a clear traffic pattern
• Unify the accent pieces and details in your home.  Replace old lampshades, bedspreads and bath towels and coordinate matching area rugs, pillows and candles throughout all rooms
• Try to make a child’s room minimally personal and make sure it is safe
• Always test your doorbell to be certain it is in good working order
• Move your best pieces of furniture toward the front of each room and your least attractive pieces toward the back
• Hang all pictures on the low side and hang mirrors across from windows that get a lot of light or have a view
• Set your dining room table for a decorative appeal
• Place plants and fresh flowers in rooms to add vibrancy and freshness.
• Try not to be present when potential buyers are viewing your home. If you are present, keep conversation to a minimum
• Take photos of the finished product
• Arrange advertising
• Arrange website marketing
• Arrange Broker’s tour
• Arrange open house
• Sign and lockbox installed
• Thank you note to the Seller
   

Accepting an offer

• In some circumstances, it may be advisable to set an offer date after one or two weekends of open houses. This is when a highly desirable property hits the market at the perfect price during the perfect market.
• Review the offer(s) that will meet your needs and provide a solid base for negotiating with the buyer
• Carefully review each of the terms of the purchase offer
• •Review and explain each clause and contingency of the contract
• Seller’s Packet – Review and sign all documents
• Cover sheet for upfront disclosures
• Agency Disclosure
• PRDS or CAR Purchase Agreement
• Counter Offer
• Contingency Removal Schedule
• CAR Verification of Property Condition

Make sure the purchase offer reflects your wishes and needs

• Complete purchase contract and all statutory addendums
• Negotiating the Offer/Acceptance - The sellers will have the choice of:
• Accepting the offer as presented
• Rejecting it completely
• Counter offering it
• Your Agent will communicate to you the buyer’s response and, if necessary, suggest further negotiating options
• Your Agent will present your written counter-offer to the sellers and negotiate on your behalf, including any post inspection findings