SELLING YOUR HOME
EMILY WYSS 360-421-4322 emily@dwellingham.com www.dwellingham.com RE/MAX Whatcom County
Step-by-Step Selling Process
1. Learning About You
2. Deciding on a Price
3. Marketing Your Property
4. Listing Your House
5. Negotiating an Offer
6. Title & Closing
7. Move Out!
1. Learning About You
Motivation First things first, let's talk about why you are selling your home. Is it too small for your growing family? Too far from your new job? Are you relocating soon? Is the yard too difficult to keep? Downsizing? Just plain sick of it? Learning about your motivation to sell gives us insights into the best way to handle your transition.
Timing When do you need to have your home sold? We'll have a certain strategy and plan if you need to sell your home within 30 days. If you don't have a specific time frame for the sale we'll be able to be more flexible in our pricing and marketing strategy.
Pricing Are you leveraged with debt on your home? Is there a possibility of a short sale? Do you need to get a certain price for your home in order to put funds towards something else?
Decision Making Who will be involved in making decisions about the sale? Is this an estate sale? Is there a power of attorney needed? Will everyone involved be present for the closing?
Communication How often would you like updates throughout the sale, and what is the best way to contact you (email, text, phone, mail)?
Condition of Home Is there any deferred maintenance that needs to be taken care of before we list your home for sale? Should we do some updates, painting, or deep cleaning in preparation? We'll help you make choices that will get you the most for your money, and make your home appeal to potential buyers.
What Affects your Home's Value?
2. Deciding on a Price
Your home's market value (what your home will sell for) is affected by more than just the number of bedrooms and bathrooms it has. We'll consider the following things when pricing your property.
Physical Characteristics Your home's location, square footage, lot size, floor plan, architectural design, year built, amenities, quality of finishes and condition have the strongest impacts on the value. Buyers like to see that a home is clean and well taken care of. We'll walk through your home and help you make a plan for any necessary maintenance and make suggestions for how we can make your home shine!
Market Conditions There are some outside factors that also directly impact the value of your home. These factors include current mortgage interest rates, national and regional economic conditions, buyer demand, seasonal demand, availability of competing properties and prices of recently sold properties. If interest rates are high buyer's have less buying power and can't pay as much for your home. If yours is the only home on the market in a desirable neighborhood then buyers may be more likely to pay a higher price. Though we can't control these factors, we can understand them and adjust our strategy to get you the best price possible.
2. Deciding on a Price
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Using a CMA to Guide Pricing
A Comparative Market Analysis (CMA) is the strongest tool we use when estimating the potential selling price for your home. As a member of the Board of REALTORSÂŽ with access to the Northwest Multiple Listing Service, we'll prepare a report that analyzes comparable homes in your neighborhood. With this information we'll help you determine an attractive, yet realistic price for your home. The CMA will include property listings with these statuses: Active: Homes that are actively for sale and currently competing with your home for the attention of buyers. These listings give us information about comparable asking prices, but remember these homes have not yet received an acceptable offer. These could be "pie in the sky" prices. Pending/Pending Inspection: Homes that have received an offer and the sellers and buyers have come to an agreement on terms. These give a good indication of realistic pricing. Sold: Looking at the prices paid for recently sold homes provides the best foundation in determining your home's most accurate market value. Once adjustments are made for square footage and features we can make a qualified recommendation for the asking price of your home. Expired: Homes that have gone through the duration of a listing period, but failed to sell. Many factors could be responsible such as lack of marketing efforts or the home's condition, but most often it is simply because the home was priced too high.
Where do Buyers Find the Home they Purchase?
When deciding on our marketing strategy for your property we always take into account where home buyers are searching for properties. Most buyers these days find the home they purchase online or through their own real estate agent. In fact, 87% of home sales are generated from the marketing efforts of a real estate agent. Since marketing is a major driver of home sales, we put a lot of our efforts into promoting your home.
3. Marketing your Property
Knew Seller 2% Friend/Relative 6% Home Builder 5% Print Ads 2% Yard Sign 9%
How we Spread the Word Postcards Open Houses Signs, Arrows Community Networking Videos Fliers Mailers Agent Networking
Beyond the Basics Property Research Social Media Advertising CCR's & HOA Research Virtual Tours Google Ads Blog Posts Door Knocking Neighborhood Events
Online 43%
Their Agent 33%
3. Marketing your Property
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Presentation of Your Home
A home that is presented at its very best will typically sell faster, at a higher purchase price and with fewer issues during the process. Here are some useful tips for preparing your home for showings. We will also walk through your home together and make suggestions. Every showing counts and you only get one chance to make a first impression. • Remove all clutter, personal objects and unnecessary furniture - less is more. • Do a quick dusting and vacuuming right before showings. • Leave lights on and open all drapes/shades. Be sure windows and blinds are clean. • Be aware of unusual cooking or pet odors. Opening windows can provide fresh air. • Be sure items like laundry, dishes, kids toys, pet items, etc., are put away. • Turn off TV, appliances and other distractions. Soft music can create a positive experience. You only get one chance to make an emotional connection with a potential buyer. An important early step in the marketing process is to have your home photographed professionally. These photos will appear on the MLS listing, in print media and are posted to the top ranked real estate websites. We provide professional photography for all of our listings. Homes with multiple photos get 5x more views than homes with only one or two photos.
Your Home's Information Listed on the MLS 4. Listing your House
The Northwest Multiple Listing Service (NWMLS) is an extensive on-line database that includes all the listings from all the participating local brokerages statewide. It is the single most important tool that brokerages and agents use when searching for available properties for their clients. It contains all the properties that are listed for sale in our market area. The instant a property’s data is listed on our local MLS, 1,000’s of agents have immediate, on-line access to all of the relevant information their buyer clients need. Featured on the 5 Most Popular Real Estate Websites
Nationally, these are continually the top 5 real estate websites. If you Google “Whatcom County Homes for Sale” these are often the first sites to come up. When a buyer selects their search criteria, and gets a set of properties to browse through, our listings stand out on the page - highlighted by descriptive headlines, body text and the inclusion of many high quality photos and virtual tours.
5. Negotiating an Offer
Components of an Offer
When you receive an offer you'll be reviewing a lot of paperwork! Here's a brief description of some of the standard forms you'll encounter. Purchase and Sale Agreement
The purchase and sale agreement (PSA) will outline:
the legal description of your property the purchase price the closing and possession date the identity of the buyers and sellers the included appliances and items the earnest money amount the title company and closing agent The PSA also includes explanations and definitions of the terms of the contract, such as "computation of time", "condition of title", etc. Contingencies
The PSA is the base of the contract, but there will also be a set of addenda outlining the buyers contingencies attached to the PSA. You can think of contingencies as hurtles that need to be jumped in order for the sale to continue. Examples of common contingencies are:
financing contingency inspection contingency buyer's sale of property contingency appraisal contingency well and septic inspection contingencies feasibility contingency title contingency Contingencies are a combination of requirements coupled with a time frame for those requirements to be completed. Generally the buyers earnest money is protected until the contingency's time frame expires. We pay close attention to all timelines so that we make sure the sale stays on track.
Evaluation of an Offer- Does it Meet Your Needs?
5. Negotiating an Offer
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The Purchase and Sale Agreement should be thoroughly read and reviewed before any decisions are made. Once we receive an offer for your home, we will carefully review all terms of the offer with you. All accepted terms of the PSA must be carried through the life of the contract. The signed, accepted PSA (with all addenda & counteroffers) is a legally binding contract. Below are some of the items that we'll pay close attention to: Purchase Price - Be sure to factor in all terms of the offer before getting excited or disappointed. Included Items - What is included - Refrigerator, Washer & Dryer, Hot Tub, Artwork, etc.? Excluded Items - What is excluded - Chandelier, Rose Bush, Furniture, etc.? Water Rights - Do they apply? You may need to employ the services of a Water Rights Attorney. Earnest Money - This is the initial deposit. The importance of this item is often overlooked. Method of Payment - Is this a cash sale, conventional mortgage or seller financing? How much down payment? Special Assessments - Are there any outstanding or upcoming Special or HOA assessments? Who pays, Buyer or Seller? Possession - When does the buyer take possession of the property? May be different than closing. Due Diligence Condition - What "outs" will the Buyer have? Appraisal Condition - Is the sale contingent on the home's appraisal amount? Financing Condition - Is the sale contingent on the Buyer securing financing? Additional Addenda - Are there any additional terms or addenda attached to the offer? Home Warranty - Is the Buyer asking for a home warranty? Are they asking for you to pay for it? Seller Disclosure Deadline - What is the deadline date for you to provide all seller disclosures? Due Diligence Deadline - What is the deadline date for the Buyer to complete due diligence? Financing & Appraisal Deadline - What is the deadline date for the Buyer to cancel based on loan denial? Settlement Deadline - What is the deadline date for you and the Buyer to complete closing? Response Deadline - How long do you have to respond to the offer, or counteroffer? Multiple Offers - Having multiple buyers for your home is great, but we need to negotiate strategically. After considering all terms... Do you Accept, Counteroffer, or Reject the Buyer's Offer?
5. Negotiating an Offer
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After you Accept an Offer
Most timelines start at Mutual Acceptance, so after you decide to accept an offer you and the buyer will complete the following: Providing the Seller's Disclosure
This is the process where you are required to provide information about your home. Seller Property Condition Disclosure - filled out, signed and dated by you Commitment for the policy of Title Insurance, showing easements, encroachments and liens. HOA information, budget, minutes, assessments, CC&R's, and survey, water rights if applicable. Copy of any leases, rental, and property management agreements affecting the property. Notice of any claims and/or conditions relating to environmental problems & building or zoning code violations. Buyer's Due Diligence (Evaluations and Inspections)
The Buyer will carefully review all items provided in the Seller's Disclosures. The Buyer may schedule building inspections, tests and evaluations of the property. The Buyer will review the costs, terms and availability of homeowner's insurance for the property. Buyer's Right to Cancel or Ask for Modifications
No later than the Due Diligence Deadline, if the buyer disapproves of these items they may cancel the contract by written notice to Seller. Or, no later than the Due Diligence Deadline, ask for price modifications, repairs or concessions. Remaining Contingencies and Financing
In the final steps of the transaction we will coordinate and complete any remaining details. Is the sale contingent upon an appraisal? At what amount did the property appraise? How is the Buyer's financing going? Are there any last minute issues securing their mortgage? Was the sale contingent upon the Buyer selling their previous home? Final pre-settlement walk-through inspection.
What is Title Insurance & Who Pays?
6. Title and Closing
The "title" is what gives you ownership of a property. It's important that the title to your home is free and clear, meaning that nothing that happened in the past will affect the transfer of and rights to the property. The title company will research the public records and provide you with a title report outlining the condition of the title including any liens, judgments, easements, or existing loans on the property. Title insurance provides protection for the policy holder against losses incurred from defects in the title. Unlike other types of insurance, title insurance provides protection for past events instead of unforeseen future events. There are two title insurance policies issued for each sale; one protecting the buyer and another protecting the buyer's lender. Typically the seller pays for the buyer's policy and the buyer pays for the lender's policy. Signing & Closing
Once all of the buyer's inspections, contingencies and loan requirements have been satisfied and their loan has funded (loan money delivered) the title/escrow company will schedule your signing appointment, which usually takes place a few days before the closing date set forth in the purchase agreement. You'll be signing a lot of paperwork and transfer documents. These documents will be recorded at the local courthouse on the closing date, officially transferring the property to the buyer. The last thing you'll do is leave the keys and garage door openers, manuals and warranties in the home or with us so we can provide them to the buyer.
What to Bring to the Signing Valid driver's license If you owe funds (unlikely) bring a Cashier's Check, payable to the title company -orBank receipt showing that the funds were wired to the title company All the people who are on the purchase contract or need to transfer ownership interest in the property must attend
7. Move Out!
Congratulations
It's finally moving day! Unless you've made a different agreement with the buyers, you'll be leaving the keys and moving out on the evening of the closing day. During the chaos, don't forget to:
Submit your change of address with the Post Office.
USPS Online Change of Address Let your family and friends know that you moved. Create a free custom e-card using this online tool!
Make & send your moving announcement Stop or transfer your utility services.
Utility provider info on next page
778-8000 384-4302 966-3411 354-2829 966-2531 988-5711 332-8311 371-7100 733-5770 752-9208 734-9224 734-5664 853-8550 466-3933 424-7104 826-3033 293-1900 755-0531 853-8141 455-5785 466-3171 336-6218 855-3500
Garbage & Recycling Whatcom Sanitary Service Co. 734-3490 Nooksack Valley Disp. 354-3400 Blaine Bay Refuse 332-5443 Waste Reduction 676-5723 RDS, Inc. 384-8011 Disposal of Toxics 380-4640 Skagit Anacortes 293-1900 Burlington 755-0531 Concrete 853-8141 Conway 455-5785 La Conner 466-3171 Mount Vernon 336-6218 Sedro Woolley 855-3500
Propane & Natural Gas Whatcom VanderYacht Propane 398-1234 Northwest Propane 354-4471 Propane Gas, Inc. 384-4922 American Propane 3841841 Cenex Propane 354-4595 Cascade Natural Gas 733-5980 Skagit VanderYacht Propane 707-5550 Northwest Propane 424-4471 AmeriGas 424-6119 Skagit Farmers 757-6053 Cory Oil &Propane 499-3222 Cascade Natural Gas 888-522-1130 Television Whatcom Comcast 888-266-2278 Direct TV 800-347-3288 Dish Network 800-722-9957 Skagit Comcast 888-266-2278 Direct TV 360-424-2171 Clear Comm. 360-854-7811 Telephone & Internet Whatcom Quest 800-244-1111 Comcast 888-266-2278 GTE Verizon 800-483-4000 Skagit Comcast 888-266-2278 Frontier Comm. 888-482-7922 Electricity Whatcom & Skagit Puget Sound Energy 888-225-5773
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Water & Sewer Whatcom City of Bellingham City of Ferndale City of Everson City of Lynden City of Nooksack City of Sumas City of Blaine Birch Bay W & S Water District #2 Water District #7 Water District #10 Water District #12 Skagit Concrete Public Works Laconner Public Works Skagit P.U.D #1 City of Lyman Anacortes Burlington Concrete Conway La Conner Mount Vernon Sedro Woolley
EMILY WYSS 360-421-4322 emily@dwellingham.com www.dwellingham.com RE/MAX Whatcom County