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We start off by compiling all the information we have about your home. The prospective buyer will know everything they need to about the home. We do this because we believe the more information you can give to a buyer, the more you can solidify your position in the selling process.
Paperwork: You will sign the following: Working with Real Estate Agents Brochure (this brochure explains the agency relationship between agents and their clients), HOA disclosure (if applicable), and an Exclusive Right to Sell Property, Lead addendum (if necessary), NC Property Disclosure, Oil and Gas Rights disclosure, etc.
We will start by compiling as much information about your home as possible. Anything that you would want to know about a new home, a prospective buyer will want to know about your home. We believe that the more information you can give to a buyer the more you can solidify your position in the sales process.
Pre-Listing/Preparatory Phase:
- Paperwork: You will sign the following: Working with Real Estate Agents Brochure (this brochure explains the agency relationship between agents and their clients), HOA disclosure (if applicable), and an Exclusive Right to Sell Property, Lead addendum (if necessary), NC Property Disclosure, Oil and Gas Rights disclosure, etc.
Property Information
- Disclosures
- Utility information
- Make a list of the following services you use: pest/termite contracts, security contracts, phone, internet, cable, garbage collection and other relevant recurring monthly services. Compile a list of costs for: water, garbage, gas, electricity, etc. for the past 12 months
- HOA contact information and access to the HOA website
- What do your HOA fees cover? We need a copy of the financial statements from your HOA (balance sheet and income statement). You will need to request this information from your HOA.
- Are there any known or rumored special assessments from the city/county or HOA?
- Do you have any of the following: recent appraisal, radon mitigation system, home warranty, termite contract, recent survey? List any upgrades to the property and provide contacts for the contractors who completed the work. If you have recently upgraded/replaced the roof, HVAC, water heater, etc. make note of these changes. Make a list of features you like about your home.
- Is there any unpermitted work on the house? Do you have copies of any permits you obtained for construction since completion?
- Supply a copy of your title insurance.
- Do you have polybutylene plumbing, synthetic stucco, masonite siding, stone veneer, etc.
- Is there a community septic system? Do you have a septic tank? Do you have a recent inspection and or last service date?
- Wells: If you have a private well we will need well info (inspection info) with depth/flowrate etc. Is there a community well? If so, who provides service?
- Mortgage companies and estimated payoff amounts
- Is your mortgage secured by FHA or VA and is there a pre-payment penalty? Do you have a second mortgage?
- Are there private roads adjoining your property (is there a written agreement on how they will be maintained)?
- Are there any known encroachments or easements on your property? Does your property encroach on another?
- Are there any lead paint or asbestos issues?
- Do you live in a flood plain? If so, we need a copy of the flood insurance.
- Do you live in the city limits?
- Are there any issues with industrial nuisances (noise, landfill, wastewater treatment plant, road proximity, airport, etc.)
- Are there any community plans that could affect your property that you are aware of?
- Vacant land nearby or adjoining your property?
- Pre-inspecti0on and needed repairs/updates?
Your home is in a competition with other listed properties and you are competing for available buyers. Once listed, we constantly monitor the local market, update you on current conditions and adjust as needed. We will utilize our marketing tools effectively and efficiently to help you find a qualified buyer.
Basic 3-Step Marketing
Home Presentation/Staging: Properly staging your home can have a huge impact on buyer perception of your home. We will help you make your home as warm and inviting as possible.
Home Price: We closely monitor closing prices, pending contracts and listings in your neighborhood/area to help you determine an “in-market” list price. An overpriced home will not sell. Your best opportunity to sell your home will occur within the first few weeks when it is new to the market. If you properly price your home from the beginning your chances of success are much greater. If your home has been on the market more than 1-month or it has accumulated more than 8-10 showings this is a good indicator that a price reduction may be warranted.
- Price positioning: Your list price can have an impact on how many buyers see it online. We will make sure your home is priced for effective market exposure.
- Price reductions: When necessary, price reductions can be an effective marketing tool. Price reductions are uploaded into the system and show up as a change to your listing. This notification will email or notify any buyers and agents who have searches set up that meet your property’s criteria.
MLS and the internet: Our local MLS has syndication agreements with national real estate websites. Your property information will be loaded into the Triangle MLS where participating TMLS companies market to their branded websites.
Standard Marketing Methods
- Coming Soon: A unique way to market your home while you prepare your home for your first showing.
- Yard Sign: A 'for sale' sign will be put in your front yard.
- Property Disclosure: You will complete an NC property disclosure form and it will be available through MLS to prospective buyers and agents when they view your property. It is important to read the property disclosure thoroughly and understand what you are communicating to a potential buyer. Properly filling out this form can prevent potential buyer backlash during and after the sale of your home.
- Openness and Honesty: Gather any information about your home that will be helpful to a potential buyer.
- Showing Availability: Make your home readily available for showings. Your house will show at the most inconvenient times (weekends and evenings).
- Social Media: with a targeted ad campaign we can target audiences who have mentioned that they are in the market looking for a new home. All of our listings get a marketing campaign on social media.
- Open House: May be utilized if market conditions dictate.
- Showing Feedback: When your house is shown by another agent the agent is given the opportunity to submit feedback about your home. We constantly monitor buyer agent feedback.
Enhanced Marketing Methods
- Pre-Listing Inspections: Pre-listing inspections can be utilized as an extremely effective marketing tool, communicating to prospective buyers that your home is in good condition.
- Appraisals: An appraisal can make a buyer feel confident that their offer price has been confirmed within the past several months by a professional appraiser. Appraisals are used on a case by case basis.
- Reverse Prospecting: We can see which agents have searches set up that fit your home’s criteria. This enables us to reach out to directly to prospective agents.
- Incentives: additional ways to make your property more appealing. Paying for or offering closing costs, a home warranty, personal property (refrigerator, washer/dryer), etc.
Showing Process
- Your house will be shown to prospective buyers through a company called Showing Time. Showing Time allows any “member” agent to show any house that is listed in the Triangle MLS.
- Information about your home is loaded into the Showing Time database. Showing Time only allows member real estate agents, appraisers or home inspectors to access your home. You will be contacted by Showing Time when a showing has been requested on your home.
- There are several ways to set up showings for your house. You determine how and when you want your home to be shown/accessed.
- Your home will have a lockbox (with your house key) attached to the door. Showing Time will give the lockbox combination to an agent when requested. The agent/member’s information is logged into the Showing Time database. Showing Time will give the agent specific instructions on your home when they schedule a showing on your house.
- Buyers are always escorted by a member agent of the Triangle MLS but the agent may not follow the buyer around to every room. We have never had anything stolen from any of the houses we have listed but please keep your valuables safely out of view and/or locked away.
- Whenever your house is being shown it is best to leave your home and let the buyers look at their leisure.
- Typically, you will have several hours to 24 hours notice before a showing but there are times that showing requests will be made for an immediate showing. You must always be prepared to show your home on a moment’s notice. Always make sure your home is ready for a showing. Most buyers will not take the time to reschedule a showing if it is denied. Try to avoid denying a showing if possible.
- We will solicit feedback from buyer’s agents who have shown your home and find out what they liked/disliked about your home. This is a good opportunity to find out what is “working” for your home and what is not.
- We will send you a link allowing you access to the Showingtime system to view feedback from showing agents. Please call if you have any questions about accessing the Showingtime website. NOT ALL AGENTS WILL LEAVE FEEDBACK! It is frustrating when showing agents don’t leave feedback, but it happens. Every agent who shows your house is prompted via email (3 times) to leave feedback.
The initial offer is typically submitted in written form. We will also ask the buyer to submit a pre-approval letter from a mortgage officer when an offer is submitted. A pre-approval letter does not mean the loan is approved; it only means the buyer has been “initially vetted” by a mortgage officer.
Typically, there will be some ‘back and forth’, verbal negotiation on price and terms of the sale. Once the verbal terms are reached the buyer will put the revised terms in writing. As soon as we receive the revised form we will sign it and send a ratified copy to the buyer’s agent. There is no contract until all parties have signed the paperwork and any changes have been initialed by all parties. A verbal agreement does not constitute a contract.
The buyer will typically offer a due diligence fee and/or earnest money deposit with their offer. The due diligence fee and earnest money amount are completely negotiable. The due diligence fee is typically viewed as the buyer “compensating” the seller for removing their home from the market while the buyers conduct their due diligence assessments. The earnest money is an additional “good faith” gesture that shows the buyer’s willingness to purchase the home. The earnest money is usually held by the listing/buying firm or the closing attorney. Due diligence and earnest money apply to the purchase price of the home. The exchange of these fees does not usually occur until the contract is signed by both parties. Don't forget to deposit your due diligence check and prepare for the next phase of the transaction.
After the contract is ratified there will be many activities that take place prior to the closing of the transaction. You can expect the buyer to request access to your home at least 4 more times from the point of the initial contract until closing. The buyer will typically need access to inspect the home, conduct an appraisal, verify repairs and conduct a final walk-through. The buyer may not be able to conduct all their inspections in one day. Expect the following inspections to occur: home inspection, termite inspection, radon testing, survey, chimney inspection, etc.
Due Diligence Info.
Once your home is under contract you will begin the due diligence phase. This portion of the transaction may seem stressful. Don't worry..... we will walk you through it. Due Diligence is the "vetting phase" of the transaction. It typically last between 14-28 days (but can be shorter or longer depending on the contract terms).
The Due Diligence date and amount are negotiable. Market forces will dictate the duration and amount. Due diligence terms can vary widely on the same property depending on many variables. The fee can have significant impact on a buyer’s offer. This fee is very significant and needs to be thoughtfully considered. We will keep you informed on what to expect when negotiating these terms.
This is the most difficult part of any real estate transaction. Just because your house is under contract does not mean it is sold.
Escrow: the period of time between the date the contract is signed through the closing date.
Due Diligence Fee: The due diligence fee is written directly to the seller and will apply to the final purchase price. If the buyer elects to withdraw from the contract at any time prior to the expiration of the due diligence period, the seller will typically keep the due diligence fee but must return the earnest money. If the buyer elects to withdraw from the contract after the due diligence period has expired the seller usually keeps the due diligence fee and the earnest money as additional compensation.
Due Diligence period: The Due Diligence process typically lasts between 14-28 days but can be shorter or longer depending on the terms agreed to in the contract. This is the phase of the process where all the work to ensure the home can be transferred to the buyer is conducted. A lot of time is spent in this phase making sure all ‘due diligence’ is completed by the buyer. During this time period the buyer may leave the contract at any time prior the expiration date.
Earnest Money: This fee is typically given as a good faith gesture and is held in a 3rd party trust account. This fee applies to the final purchase price of the home.
Inspections: The buyer will conduct inspections to ensure the property is in saleable condition: house inspection, pest inspection, appraisal, survey, radon, etc. Access to your home will be needed for most inspections/appraisals (approximately 3-6 times).
Loan: The buyer will formally apply for a loan to purchase your property.
Appraisal: For buyer’s who are getting a loan, their bank will appraise your house. This ensures the bank that your house is worth the price the buyer is going to pay for it. Your house must appraise for the contract price or greater or the buyer may leave the contract if they want without forfeiture of earnest money deposits.
Due Diligence Negotiation: Once the buyer has conducted their inspection(s) of the house (home inspection, termite, survey, septic, loan application, appraisal, etc.) the buyer can ask the seller to make repairs or compensate the buyer for items that are not working as intended. Prior to the expiration of the due diligence the buyer can leave the contract and the seller must return the earnest money to the buyer. When negotiating with a buyer to make needed repairs the seller jeopardizes the contract if he/she refuses to work with the buyer to address items of concern. A buyer may ask the seller for anything (even renegotiation of original contract terms) prior to the expiration of the due diligence date. If buyers haven’t completed their “due diligence work” it is not uncommon for the buyer to ask for an extension of the end of the due diligence period.
Closing Attorney/Agent: The buyer will select an attorney to represent them in the closing of the real estate transaction (sellers typically do not have their own attorney in a real estate transaction). The closing attorney will have you complete a “seller information sheet” that details the loan information and any other necessary information they will need to process the sale of your home.
Repairs: repairs to your home will be negotiated during the due diligence process. See “repair negotiation process” below for detailed information.
Reminder: Make sure you contact a moving company early in the due diligence process to reserve a moving date. Many movers are booked weeks and sometimes months in advance.
There are many checklist items to prepare for closing day. You will receive a seller information sheet from the closing attorney. Completion of this document makes it easy for the closing attorney to gather all the information necessary to close the sale of your home.
Things to do in preparation for closing
- Contact all your utility companies at least 1 to 2 weeks prior to closing (Water/Sewer, Electricity, Gas/Propane, Cable, Telephone, Trash pick-up, newspaper etc.). Let your utility companies know that you are moving and the utilities (electricity, gas, water) need to be taken out of your name and shutoff. Always have the utilities cut-off the day after the closing. If the closing is delayed you can call the utilities and have them keep the power/water, etc. on until the closing is complete. It is the buyer’s responsibility to make the actual transfer into their name.
- Contact the Post Office to give them a forwarding address.
- Notify your insurance company that you are selling your house and will be canceling your Home Owner’s coverage. DO NOT cancel your insurance until your house is sold and the deed is recorded.
- You must have all your personal belongings cleaned out of the house and off your property by the final walk through date (unless otherwise agreed to in the contract). The house should be thoroughly cleaned (preferably by a professional cleaning company) and ready for the new owner to move in.
Closing Day
- Closing is typically conducted in an attorney’s office. If we have followed the plan, the closing will be a simple formality
- If married; both the husband and the wife must attend the closing unless prior arrangements have been made for Power of Attorney to be granted.
- If necessary “power of attorney” original documents should be provided to the attorney 5 days prior to close if possible
- Bring your driver’s license as the attorney requires a photo I.D.
- If available, we will send you a closing statement prior to the closing (the closing statement is a record of all the charges and credits that the buyer and the seller incurred during the sale of the house/property). We typically have a chance to review a settlement statement before closing but this is not always the case.
- Bring house keys and garage door openers or bring one key and note where the garage door opener, owner’s manuals for appliances, and other keys are in the house (typically in a kitchen drawer).
- Keys - Make sure that we talk about the disposition of keys so the buyer knows when they can receive the keys to their new home. Keys are often transferred at closing but the seller is not obligated to give the keys to the buyer until the deed is recorded.
- After the closing, ask your Home Owner’s Insurance Company if they will refund you any “unearned portion” of your Homeowner’s Insurance Premium.
- If you have an escrow account on your loan you will be due a refund from the bank for your taxes and insurance. Call your bank to verify the amount and the expected date of payment. You will not be able to get this check until several weeks after the closing has occurred. Call you bank and give them the closing date and ask them to give you the amount they will refund to you
- We can have your closing documents prepared early and bring them to you for signature. This needs to occur the week prior to closing. If we can do this work ahead of time, you will not need to attend closing.
- The attorney will not be able to disburse funds until they have received the money from the lender and after the documents have been recorded with the Register of Deeds office at the courthouse. You will not be able to receive your proceeds at the closing. You may pick up your check or have it wired after the deed is recorded.
Important Note: 1Red Shoe Realty will never send you wiring instructions. Wiring instructions will be sent from the closing attorney and you should verify those instructions via phone with the attorney's office.