THE PROCESS
STEP 4 TRANSACTION & CLOSING
STEP 3 STEP 2 STEP 1
SALES SUPPORT & OFFER
MARKETING
AGREEMENT & PREPARATION
1: AGREEMENTS & PREPARATION
2: MARKETING
Listing presentation
• Professional
• Get
• Installation
to know you, explain our fiduciary duty
• Discuss • Sign
listing contract details
listing agreement
Disclosure packet preparation • Order
property profile from title company
• Order
natural hazards disclosures
• Discuss
disclosure and point-of-sale ordinance requirements, inspection and compliance
• Create
a detailed disclosure packet for distribution
Pricing/marketing strategy • Deep
analysis: comparable sales, price trends and market conditions of your neighborhood
Materials (purchased on your behalf) photography services
of for sale signage
• High-quality
flyers and marketing pieces (printed materials not allowed during COVID)
• Prepare
digital and social media marketing campaign
Digital media exposure • Create
your property’s individual website and link to its unique URL
• Distribute
sites:
your property listing data to the following
– Multiple Listing Service (MLS) – RedOakRealty.com – Realtor.com – Zillow.com / Trulia.com
• Discuss property details for the Multiple Listing Service
– Local news sites including the Bay Area News Group, EastBayTimes.com and Berkeleyside.com featured properties
• Create
– Leading Real Estate Companies of the World (per selection)
• Determine a price and discuss timing and offer process
(MLS) and other real estate portals
a custom digital, social media and print marketing plan and create a process timeline
Property preparation • Identify
possible pre-market improvements
• Recommend
service providers, attend inspections and review the resulting reports with you
• Recommend
and consult with contractors, artisans and stagers as needed
• Install
a lockbox for broker showings
– Facebook, Instagram and Google Network advertising to targeted demographics
Public Relations • PR
company on retainer to pitch property’s story or unique characteristics to real estate media publications
Print • Bi-weekly
company ad in local print publication with large real estate sections (Piedmonter, Montclarion, El Cerrito Journal, Berkeley Voice, etc.)
Tours & Networking • Schedule
relevant
showings and virtual brokers tours when
• Promote
the listing with Red Oak agents, buyers and network of local and national Realtor colleagues virtual open house tours on websites, portals and MLS
4: TRANSACTION & CLOSING Collect and review offers • Discuss
strategy as all offers are reviewed
• Guide you through counter-offers and other contractual
agreements as we negotiate the highest possible price and most favorable terms
• Verify
the buyer’s ability to qualify for the loan
• Advertise
Escrow period • Provide
3: SALES SUPPORT & OFFER
a transaction timeline once escrow is opened with the title company
• Monitor deadlines, contingency removals, and negotiations
Sales support to agents and buyers
• Provide
• Quickly
• Review
respond to interested buyers via digital tools
• Distribute
disclosure packets as requested, tracking the number of agent requests and showings
• Continued
networking with agents and promotion of the property
• Status updates: number of showings, buyers’ feedback,
agent interest level
• Update
on market conditions: new listings, price reductions and recent closings that may impact value
• Discuss
additional repairs, cosmetic improvements and possible price reductions if necessary
timeline updates to keep the process on track
inspection reports and discuss any new issues with the property or neighborhood
• Recommend
additional negotiation should buyer’s inspections or any other issues raise questions
• Guide
you through the paperwork: ensure that all documents are complete, signed, initialed, delivered, filed electronically and stored per Department of Real Estate guidelines
Closing • Accompany
you to the paperwork signing prior to close of escrow
• Ensure
receipt of proceeds from sale
• Provide
a complete file via digital link
WHAT YOU CAN EXPECT FROM US Real estate transactions can be challenging, but we plan on eliminating as many of those challenges as possible. Working with our team, we will provide the following services:
Working with You • Communicate
methods
often using your preferred contact
• Regularly
monitor market activity with Red Oak’s very own database, containing two decades of sales data
• Stay abreast of current lending programs, using preferred
and trusted sources in the lending community
• Encourage,
evaluate and negotiate offers
• Proactively
manage any potential conflicts
Marketing • Position
your property strategically in the marketplace
• Provide
maximum exposure to buyers
• Create • Offer
a strong presence, digitally and in print
weekly virtual open houses and broker tours
• Entice
qualified, active buyers via marketing efforts
• Network
within the Red Oak and the general Realtor community via the MLS, broker tours and scheduled property visits with qualified buyers
Once the Contract Is Ratified • Provide
updates on the escrow process
• Monitor
contingency periods and inspections
• Negotiate
on your behalf as the escrow evolves
Getting Started
• Monitor
the purchaser’s loan status
• Inspect
• Provide
digital copies of all documents at the close of
and advise on improvements that will notably improve the purchase price
escrow
• Ensure
all documents are in order, including title search and property profile
• Provide
recommendations on designers who can stage your home and vendors who can assist in repair and updates that may be needed
We will help manage all of the key details, from premarketing to a smooth, successful close, keeping you informed throughout the process.
• Review
and compile a comprehensive disclosure package
WE WILL TELL YOU THE TRUTH, WE WILL RESPOND TO YOU AS QUICKLY AS POSSIBLE, AND WE WILL BE YOUR FIERCEST NEGOTIATORS
WHO PAYS WHAT THE SELLER CAN GENERALLY BE EXPECTED TO PAY FOR:
THE BUYER CAN GENERALLY BE EXPECTED TO PAY FOR:
• Real
• Title
estate commissions
• Document • County
preparation fee for deed
transfer tax
• Half
of any city transfer/conveyance tax (according to contract)
• Payoff
of all loans secured by the property
• Interest
accrued to old lender, statement fees, reconveyance fees, and any prepayment penalties
• Natural
Hazards Disclosure Report
• Recording
charges to clear all documents of record against seller
• Proration for any property taxes owed at time of transfer • Any
unpaid Homeowner Association dues
• Any
and all judgments, tax liens, delinquent taxes, city fees, or other municipal liens
• Notary • Any
fees
bonds or assessments due and payable
insurance premiums
• Escrow
fee
• Document •
preparation (if applicable)
Half of any city transfer/conveyance tax (according to contract)
• Notary
fees
• Recording • Property
charges for all documents in buyer’s name
tax proration (from date of acquisition)
• Homeowner
Association transfer fee
• All
new loan charges (except those negotiated to be paid by seller)
• Interest
on new loan from date of funding to end of the month
• Assumption/change
of existing loan
of records fees for take over
• Closing
costs usually total 3%-5% of the purchase price, and are in addition to your down payment
• Any other inspections fees (roofing, property inspection,
geological, etc.)
Inspection reports, repairs, and home warranties are negotiable items. Responsibility for these items depends on whether the seller has already had inspections prior to marketing, how extensively you want to investigate the property condition, and whatever is negotiated in the contract.
PRICING
THE FOUR MOST IMPORTANT VARIABLES WHEN PRICING YOUR HOME: • Location • Comps:
price of active and recently sold properties in the area
• Overall
condition of the property: design features, results of inspections, and possible pre-market improvements
• Size
and configuration of the home
KEY OBJECTIVE: ATTRACT THE HIGHEST POSSIBLE PRICE FOR YOUR HOME Properly priced homes sell quickly, may attract multiple offers and could sell for more than the asking price. Pricing your property correctly is one of the most important steps in achieving this goal. Improperly priced properties can sit on the market for weeks, eventually selling for much less than they would have if priced appropriately from the start. We provide you with a thorough analysis of the market and the potential value of your home. Our goal is to help you get the best price and terms for your home under current market conditions.
TESTING THE MARKET: A RISKY ENDEAVOR Sellers who “test the market” and overprice their property tend to sell it far below original expectations. Properties that require no subsequent reduction in list price tend to sell above the original price in the current market. Reductions in list price invite low-ball offers. The longer a home is on the market, the less valuable it becomes in potential buyers’ minds, often reducing the overall purchase price offered.
IN MANY CASES IT IS BETTER TO UNDERPRICE SETTING THE ASKING PRICE The higher your home is priced above market value, the fewer number of buyers will consider your property.
IF THE ASKING PRICE IS:
15% over market value 10% over market value 5% over market value Fair market value 5% below market value
THE PROPERTY APPEALS TO:
20%
of buyers
30%
of buyers
50%
of buyers
95%
of buyers
100%
of buyers
Statistics have shown: • There
is a 95% chance of a sale if a home is priced at the market value
• There
is a 50% chance of a sale if priced 5% over market value
• There
is a 30% chance of a sale if priced 10% over market value
• There
is a 20% chance of a sale if priced 15% over market value
TIME IS OF THE ESSENCE The longer a home is on market, the more likely it will sell below the original list price. The chart below reflects each sale in the East Bay in 2020 and compares its days on market to how far above or below list price it sold.
DAYS ON MARKET VS. HOW FAR ABOVE/BELOW LIST EACH HOME SOLD 100% 100% 90%
-95%
95%
80% 80% 70%
60% 60% 50%
40% 40%
AVERAGE LIST VS. SALE PRICE
30%
20% 20% 10%
0% 0% -10%
-20% -20% -30%
-40% -40% -50%
00
55
10 10
15 15
20 20
25 25
AVERAGE DAYS ON MARKET
30 30
35 35
40 40
45 45
50 50
55 55
60 60
65 65
70 70
SOURCE: Multiple Listing Service, 2020. Non-distressed Single Family Homes in Alameda, Albany, Berkeley, El Cerrito, Emeryville, Kensington, Lafayette, Moraga, Oakland, Orinda, Piedmont, Richmond, San Leandro.
BUYERS
THESE ARE THE FACTORS THAT BUYERS TYPICALLY CONSIDER WHEN LOOKING AT A HOUSE: Tangibles
Intangibles
• Number
and size of bedrooms
• Overall
feel of home
• Number
and condition of bathrooms
• Design,
as it relates to today’s trends
• Presence
of a master bedroom with/without bathroom
• Kitchen
size, condition and features like countertops, cabinets and modern appliances
• Room
sizes
• Presence • Roof
of family room or additional living space
condition
• Exterior
paint condition
• Condition
of electrical components
• Condition
of plumbing system
• Floor
type and condition
• Foundation
type and condition
• Signs
of age, peeling paint, other obvious physical defects
• Pest
report
• Furnace • List
condition
price compared to market rate
• The most recent and relevant comps in the neighborhood • Energy-efficient upgrades including insulation,
weather stripping and water heater
• Window • Overall • Size
condition
cleanliness of the home
of closets
• Fixer
or move-in condition
• Garage,
including number of parking spaces
• Maintenance • Condition • Views,
of garden, landscaping
and size of backyard
decks, outdoor spaces
• Proximity
to schools, parks, walking trails, neighborhood shopping, etc.
• Proximity
to transportation
• Occupancy • Presence • Crime
by tenants
of pets or residual pet odor
• Neighborhood • Natural • “Flow” • Curb
conditions
light
of the home
appeal
• Traffic
and other noise
• Safety
and security
• Privacy
BUYERS ARE IN THE BAY AREA 89% of East Bay buyers are already living in the Bay Area
RED OAK REALTY 2020 BUY-SIDE TRANSACTIONS
EAST BAY BAY AREA EAST COAST OTHER U.S. STATE
6%
4%
21% 68%
SOURCE: Red Oak Realty buy-side transactions, 2020
WHERE BUYERS PURCHASED IN THE EAST BAY BUYERS BY GENERATION
Alameda
9%
35%
57%
MILLENNIAL GEN X BOOMER MATURE
Albany
47%
Berkeley
33%
Emeryville
22%
27%
53%
58%
Piedmont
34%
50%
San Leandro
7%
50%
71%
38%
4%
20%
40%
20%
7%
16%
41%
40%
Oakland
West Contra Costa
24%
33%
44%
El Cerrito
Kensington
29%
17%
33%
24%
13%
5%
Source: Red Oak Realty buy-side transactions 2020
WHAT TOOLS BUYERS ARE USING Today’s homebuyer lives in the digital age.
SOURCES MOST FREQUENTLY USED DURING THE SEARCH PROCESS
Real Estate Agent
64%
Mobile or Tablet Search Device
58%
Online Video Site
Open House
Yard Sign
Home Builder
Print Newspaper Advertisement Home Book or Magazine
Billboard
Relocation Company
Television
23%
23%
18%
15%
8%
7%
FREQUENTLY OCCASIONALLY RARELY OR NOT AT ALL
25%
59%
39%
12%
6%
17%
13%
47%
29%
59%
12%
82%
90%
92%
96%
97%
97%
Source: National Association of Realtors 2020 Profile of Home Buyer and Sellers
STATISTICS HYPER-LOCAL PRICING TECHNOLOGY Red Oak offers exclusive access to neighborhood statistics. Using over two decades of sales data, we can analyze trends on a highly targeted basis. We provide you with unmatched insight into the activity in your neighborhood – as well as cities throughout the Bay Area – helping to establish a pricing strategy that will take advantage of the current market and potentially maximize your return.
PERCENT OF SFRS SOLD ABOVE/AT/UNDER ORIGINAL LIST PRICE BY PRICE RANGE – YTD TO Q4
QUANTITY OF UNITS
PROVIDED BY RED OAK REALTY 100%
33%
59%
65%
PROVIDED BY RED OAK REALTY
69%
72%
85%
81%
89%
89%
59%
900
90% 800 80%
700
70%
13% 60%
600
53%
50%
500 40%
08%
06% 400
30%
34%
33%
34%
04% 27%
04% 300
24%
20%
04% 05%
10%
15% 11%
10%
200
04% 07%
100
$2
M +
$2 – M $1
$9 0 $ 1 0K M –
$8 0 $ 9 0K 00 – K
$7 00 $8 K 00 – K
$6 0 $ 7 0K 00 – K
$5 0 $ 6 0K 00 – K
$4 0 $ 5 0K 00 – K
$3
$3 0 $ 4 0K 00 – K
M
00 Be K lo an w d
0%
0
ABOVE AT BELOW
ACTIVE PENDING
PERCENT CHANGE IN MEDIAN SALE PRICE, SFRS – Q4 2017 VS. Q4 2007
SFR PERCENT APPRECIATION – Q4 2017 VS. Q4 2001
PROVIDED BY RED OAK REALTY
PROVIDED BY RED OAK REALTY ALBANY
BERKELEY
EL CERRITO
KENSINGTON
OAKL AND
PIEDMONT 410.9%
500% 450%
ALBANY BERKELEY EL CERRITO KENSINGTON OAKLAND PIEDMONT
-45%
763%
226.4%
218.1%
20 12 Q4
20 16 Q 4
201 4 Q4
20 10 Q4
2 008 Q4
2 006 Q4
20 16 Q4
200 4 Q4
201 4 Q4
200 2 Q4
20 12 Q4
20 10 Q4
2 008 Q4
-52.2%
140.3%
82.5%
1 79.8%
33.8% -2.7 %
-19.7% 20 16 Q4
200 2 Q4
20 12 Q4
201 4 Q4
20 10 Q4
2 006 Q4
2 008 Q4
20 16 Q4
200 4 Q4
201 4 Q4
200 2 Q4
20 12 Q4
20 10 Q4
2 008 Q4
2 006 Q4
20 16 Q4
200 2 Q4
200 4 Q4
20 12 Q4
201 4 Q4
20 10 Q4
2 008 Q4
200 2 Q4
2 006 Q4
200 4 Q4
20 12 Q4
20 16 Q4
201 4 Q4
20 10 Q4
200 2 Q4
2 006 Q4
2 008 Q4
200 4 Q4
-100%
2 006 Q4
1 01 .9 %
9 2. 2%
114.6%
1 11 .7%
-1.2%
0% -50%
200 4 Q4
50%
54.5%
48.4%
79.4%
80.0%
70.0 %
150% 100%
64.8%
200%
193.2%
196.8%
250%
240.6%
350% 300%
62.3%
% DIFFERENCE IN MEDIAN SOLD PRICE
400%
STRATEGY NEIGHBORHOOD EXPERTISE ATTRACTS BUYERS Red Oak also employs hyper-local strategies to attract as many buyers as possible to our website, where we will feature your home. Our website highlights the benefits of East Bay neighborhoods using targeted search, custom descriptions and artfully produced videos. This not only generates more Google traffic to your listed property, it promotes the attributes of each specific neighborhood for San Francisco residents and those unfamiliar with the area. See photos, descriptions and videos at redoakrealty.com/EastBayNeighborhoods.
P R E PA R I N G TO S E L L
A CHECKLIST To attract the highest possible price for your home, it needs to look its best. Buyers are attracted to homes that display pride in ownership and attention to thoughtful details. This checklist offers quick and inexpensive ways to help ensure buyers see your home in the most positive light.
FIRST IMPRESSIONS MAKE LASTING IMPRESSIONS
REPAIRS MAKE A BIG DIFFERENCE
• Groom
• Repair
• Plant
the yard and clear debris
colorful vegetation to create a welcome feeling
• Remove
and replace overgrown shrubs, if necessary
• Paint
and freshen up fences, gates, doors, and window frames
• Clean
windows and doors
• Paint
the exterior
• Tidy
up the garage, basement, attics and storage spaces
THROUGHOUT THE HOUSE • Make • The
color scheme should feature light, neutral colors
• Walls • Let • A
rooms look bigger by removing clutter and woodwork should be fresh and bright
the sun shine in: brighten the room with sunlight
fresh coat of paint throughout
• Fill
all light sockets with bulbs
• Keep
entryway and steps clear of hazards
• Replace
worn outlet covers and switch plates
• Remove
any personal items, family pictures, awards and mementos
• Freshen
sticking doors and windows, warped or worn cabinet doors, and remove window screens for a clear view
• Make
sure faucets, fixtures and plumbing are in good operating condition with no leaks
• Clean
carpets
• Sweep
chimneys
• Refinish
hardwood floors
KITCHENS ARE CRITICAL • Keep
countertops clear and uncluttered (this makes the area look larger)
• Keep
the stove, refrigerator and sink spotless and uncluttered
ARRANGE BEDROOMS NEATLY • Make
up beds with crisp and modern bedding
• Remove
excess furniture, books, magazines, personal items and clutter
• Keep
all shoes and clothing in closets
• Remove
any items of value
closets and closed spaces
We can recommend several vendors and contractors who can help with these tasks. Let us know if you’d like references.
BATHROOMS HELP SELL HOMES
AVOID LAST-MINUTE SURPRISES
• Make
• Order
these rooms sparkle
• Invest
in new shower curtains, towels and mats
• Check
and repair caulking in bathtubs/showers and faucets
• Replace
chipped or stained tiles, freshen grout joints
WHEN YOUR PROPERTY IS BEING SHOWN • Your
agent will provide catering if appropriate as we welcome buyers and agents to virtual brokers tours and open houses
inspections for expert, up-to-date assessments of particular conditions (general home, pest, sewer lateral) prior to marketing
• Consider obtaining additional reports or bids suggested
by inspectors or your agent: roof, chimney, structural or engineering, electric, HVAC or arborists
• Having
a complete picture of the condition of your home will encourage cleaner offers and reduce negotiations later on. A homeowner can often correct a problem beforehand at a much lower cost than what is quoted in reports.
• Leave
the showing up to us. We understand buyers’ requirements and can best emphasize the positive attributes of your home. Ideally sellers should not be at the property during showings, allowing buyers to talk freely and imagine the property as their future home. – Don’t discuss anything concerning the sale with a potential buyer – Don’t apologize for the home’s appearance – Don’t try to sell furniture to a home buyer before the transaction is negotiated – Keep pets off-site whenever possible – Leave all lights on for evening showings
The savvy buyers of the East Bay will look at your property and analyze the disclosures and reports before presenting an offer. Be prepared in advance. Lack of information can cause a seller to lose leverage. Requiring a buyer to obtain their own inspections, if you have not done so ahead of time, may affect your ultimate selling price. New information or costly repair recommendations can cause a sale to fall through or cause the buyers to negotiate a price reduction based on the new reports.
POINT OF SALE REQUIREMENTS The State of California and several East Bay regulatory and municipal authorities impose health and safety obligations when a property changes hands. The list can be long. We will provide you with appropriate disclosures and addenda that will explain what is required for your home. Typical conditions to be addressed include: • Sewer
repair/replacement
• Automatic
gas shut-off valves
• Energy
conservation measures
• Smoke
alarms
• Carbon
monoxide detectors
• Water
conserving devices and fixtures
• Functional • Water
backflow prevention device
heater strapping
• Additional
compliance conditions based on your city’s requirements
In some cases, responsibility for compliance is negotiable, but the best practice is for the seller to deal with these requirements prior to marketing the property. Curb appeal and the compliance of your home can often help increase value. Buyers can have challenging financial pressures in this competitive market and lenders may often require compliance before funding, delaying the closing date. It is difficult to accurately calculate if early compliance results in a higher price and better terms, but anything that makes the property more attractive to a wider range of qualified buyers contributes to your overall success.
TRANSFER TAXES Both Alameda and Contra Costa counties, and some of our incorporated cities, impose taxes on the transfer of real estate. A few special categories of property transfers are exempt, but the typical real estate sale will trigger these charges. They are calculated, collected, and paid through escrow. The following table is helpful in estimating your closing costs whether you are a buyer or a seller. COUNTY TRANSFER TAXES
ALAMEDA AND CONTRA COSTA
CITY TRANSFER TAXES
USUALLY PAID ENTIRELY BY THE SELLER The official tax rate is set at fifty-five cents ($0.55) for each five hundred dollars ($500.00) or fractional part thereof. But it is more commonly expressed as $1.10 per thousand dollars ($1,000.00) of the sale price. IN ADDITION TO THE COUNTY TAXES AND USUALLY SHARED EQUALLY TO THE BUYER AND SELLER
CITY OF ALAMEDA
$12.00 PER THOUSAND
ALBANY
$15.00 PER THOUSAND
BERKELEY
$15.00 PER THOUSAND UP TO $1.5 MILLION 2.5% OVER $1.5 MILLION
EMERYVILLE AND EL CERRITO
$12.00 PER THOUSAND
HAYWARD
$8.50 PER THOUSAND
OAKLAND
1% UP TO $300,000 1.5% OVER $300,000 TO $2 MILLION 1.75% OVER $2 MILLION TO $5 MILLION 2.5% OVER $5 MILLION
PIEDMONT
$13.00 PER THOUSAND
RICHMOND
0.7% FOR $100 TO $999,999 1.25% FOR $1 MILLION TO UNDER $2.9 MILLION 2.5% FOR $3 MILLION TO UNDER $9.9 MILLION 3% FOR OVER $10 MILLION
SAN LEANDRO
$11.00 PER THOUSAND
Example: Berkeley has the highest transfer tax rate. Using customary terms, the transfer taxes on a $500,000 property in Berkeley would be calculated by your escrow officer as follows: COUNTY AND CITY TRANSFER TAXES ALAMEDA COUNTY
BUYER Buyer does not contribute FULL CITY TAX IS: $15.00 X 500 = $7,500.00
CITY OF BERKELEY
TOTAL TRANSFER TAX PAYMENT
SELLER $1.10 X 500 = $550.00 FULL CITY TAX IS: $15.00 X 500 = $7,500.00
BUYER’S SHARE IS: 50% OF $7,500 = $3,750.00
BUYER’S SHARE IS: 50% OF $7,500 = $3,750.00
$3,750.00
$4,300.00
INSPECTIONS Inspections Play an Important Role Buyers appreciate detailed information. A good buyer’s agent will counsel their client to be thorough and analyze the home’s value before placing an offer on the property. Therefore, we strongly recommend that sellers order inspections before the house goes on the market. • It
provides the opportunity to correct certain conditions before marketing the property
• Educated
buyers are more likely to write a realistic offer
• Confident
agents are more likely to recommend a property that has a detailed disclosure packet complete with reports, inspections and bids
• Offers
will be more reliable and based on facts
• Reducing
the “surprise” factor makes for a smoother closing
The Myth of the “As Is” Offer Many sellers want an “as is” sale – one that closes for the same amount that was offered. “As is” really means “as known” or “as disclosed.” Buyers can renegotiate based on their own inspection discoveries. Each new report ordered by the buyer increases the possibility of a new round of negotiations. Sellers with a wide array of inspections provided in advance expand the scope of what is known, what is disclosed, and what is to be accepted “as is.”
Choosing Inspections and Inspectors We will suggest inspections based on your home, your market, and your budget. Recommendations for inspectors will be based on proven merit, and reputation for integrity in the real estate community. Here is a suggested list for which quotes to perform can be provided: • Pest Inspection:
Checks for damage by wood-destroying pests
• Home Inspection:
investigation
• Roof Inspection:
installed
An overview of all systems, with recommendations for corrective action or further
Even a fairly new roof may have developed problems or may have been improperly
• Sewer Lateral:
Certification of a sound sewer lateral between the house and the main sewer line is now required by law at the time of sale in most of our East Bay communities
• Specialty Inspections and Bids:
This depends on the age, location, configuration, jurisdiction, previous history of your home, and the recommendations of the home inspector. This might include: chimney, electrical, furnace, asbestos, plumbing, structural, drainage, arborist, engineering, soil conditions, and energy conservation/efficiency.
CONTINGENCIES What Is a Contingency? A contingency is a condition that means something must occur in order for another event or obligation to happen. From the buyers’ point of view, contingencies provide a security which will allow them time to inspect the property, investigate neighborhood conditions (including property value) and prepare their financing. Contingencies can allow buyers to cancel the contract and recover their deposit if certain conditions or expectations are not met. Language is included in the standard purchase agreement giving the details of the three main contingencies, but the buyer and seller must agree on which contingencies will be included and what the time period is for each to be resolved before the contract is ratified. From the seller’s perspective, contingencies represent risks that the buyers will cancel or attempt to renegotiate price. Sellers prefer few or no contingencies to secure an offer price, thus shifting most of the risk to the buyers. Typical contingencies are listed below. They may or may not be included in your contract, based on the level of risk the buyer is willing to accept and the seller is willing to tolerate.
Conditions Specific to the Property • Physical
condition of property
• Review
of reports and disclosures from seller
• Review
of HOA documents, if applicable
• Determination • Review
that the property is insurable
and acceptance of the Preliminary Title Report
Appraisal The buyer’s obligation to purchase the property depends on the licensed real estate appraiser, hired by the lender, to determine that fair market value is at least equal to the purchase price.
Financing If buyers are pre-approved for a loan, the entire package must be reviewed by an underwriter before the lender makes the final decision to fund the loan.
Whatever the contingency, the buyers must have a good faith reason for canceling. There are no unrestricted escape clauses for either the buyer or seller in the purchase contract.
DIGITAL TOOLS Leveraging technology enables Red Oak to provide its clients with the most efficient and immediate communication available. The real estate industry has been slow to migrate to the “paperless office,” but Red Oak has put in place many digital tools to expedite the purchase process.
Digital Forms: Fully Customizable • Disclosure Documents:
Disclosure documents often run well over 100 pages. We make it easy for you to read, sign and record all of your contractual and disclosure paperwork
• Digital Signatures:
We use secure electronic signature services to facilitate the signing of documents
• Online Transaction Management: Our team of Transaction Coordinators tracks the details of each document
and the entire process online
• Following Close of Escrow:
Once you close escrow, your documents are accessible via a secure, online link
MARKETING
MARKETING YOUR HOME TO ACHIEVE THE HIGHEST SELLING PRICE FOR YOUR PROPERTY Crafting a strong marketing strategy means: • The
maximum number of potential buyers know the property is available
• Buyers
and agents see the property in the most positive light
We work closely with the Red Oak Marketing Team – using the most progressive and effective techniques available in print, digital and social media – to ensure these goals are being met.
MARKETING TOOLS When you list with us, your home will have the advantage of the following support: • Professional • Dedicated
photography
single-property website
• Featured
on the most trafficked real estate websites in the nation and the Bay Area
• Featured on real estate portals such as Zillow, Trulia and
key local sites such as the Bay Area News Group
• High-quality, professionally printed marketing materials • Bi-weekly
listing advertising in such papers as The Montclarion, Piedmonter, Berkeley Voice and the El Cerrito Journal
• High-quality
targeted digital ads on Facebook, Instagram and the Google Ad Network
• Possible
PR opportunities in digital media for qualifying properties
DIGITAL MARKETING • A
dedicated unique URL (i.e. 123MainStreet.com)
• Mobile
and tablet optimized
• Exponential
exposure via digital platforms: – Facebook – Instagram – Google Ad Network
STAGING: A GOOD RETURN ON YOUR INVESTMENT One of the best tools you can utilize to sell your home quickly – and for the greatest value – is to have it professionally staged. Staging entails removing your personal property then decorating the home so that buyers can envision the ways they could enjoy living there. We strongly recommend it because statistics show: • 53%
of agents state staged homes spend less time on the market than non-staged homes
• Among
Realtors who typically represent the buyer, 92% report most or some of their buyers are affected by home staging
• Buyers
find it is easier to visualize the property as a future home (83%), more willing to walk through a home they viewed online (38%), and it will positively impact the value of the home if it is decorated to the buyer’s tastes (37%)
• 37%
of buyer’s agents said that staging a home increased the dollar value offered between 1% and 10%
Source: NAR Profile of Home Staging, 2019
Professional photos courtesy of Peter Lyons
Enhance can help you sell your home for more - with less work. You can improve your property before coming to market and pay vendors at close of escrow.
Enhance does the work for you. Red Oak Home Services has an exclusive relationship with The Home Co., a respected home design and staging company providing East Bay services since 2007. They will handle all of the design and project facilitation before you sell your home.
The budget can be up to $40,000 and include repairs and improvements - like kitchen and bathroom updates, landscaping and paint - that can have an outsized effect on the sales price of your home. The cost of staging can be included as well.
PROFESSIONAL PHOTOGRAPHY We will hire a professional photographer to capture the best attributes of your home. Not only does this accentuate the property’s most compelling features, it is also proven to enhance the sales process and drive buyers to the property: • Listings with high-quality photos receive 61% more views than competing listings with point-and-shoot photos • Listings
with 15 quality photos get 10 times as many clicks as competing listings with fewer quality photos
And most importantly… • A
well-prepared and staged property, with high-quality photographs (and professional video), command higher prices than those without professional photography
HIGHER QUALITY PHOTOGRAPHS ARE MORE LIKELY TO ATTRACT BUYERS
Professional photos courtesy of Open Homes Photography
DIGITAL LISTING DISTRIBUTION 90% of California buyers consider the internet an important part of the real estate search process. That’s why Red Oak focuses on distributing your listing to the most influential and frequently visited real estate websites.
Listing Distribution Property description and photos will be posted to:
• Featured property on Zillow and Trulia
– Zillow websites and apps reach 236 million monthly viewers (Q3 2020), capturing the vast majority of real estaterelated traffic
• Featured property
on Bay Area News Group websites – Includes EastBayTimes.com (website for Hills papers like the Montclarion and Piedmonter), MercuryNews.com and MarinIJ.com – 20 million unique visitors per month (Q1 2020)
• Realtor.com
– 86 million unique visitors per month (6/2020)
• Featured property
on Berkeleyside - East Bay-focused, with 712,000 unique visitors per month (12/2020)
• The East Bay Multiple Listing Service
around the country, including Redfin
(MLS), which feeds to brokerage websites
Exposure for your home: • Facebook
advertising: Red Oak provides an individual Facebook advertisement for each listing. The ad is thoughtfully created and can run for up to 7 days to a targeted demographic, achieving the most successful ad placement for your property.
advertising: similar targeted demographic as Facebook
• RedOakRealty.com • Additional
individual media outlets
NETWORKING WITH THE AGENT COMMUNITY Red Oak does not limit its marketing outreach just to home buyers. We leverage our professional network – both inside and outside of our brokerage.
Working within the Red Oak agency we leverage: • 160+
active Red Oak agents
• Intra-office • Weekly
pricing consultation, marketing ideas and support
virtual private tours for Red Oak agents to highlight properties
• Five
fully staffed, highly visible offices located in Berkeley and Oakland to attract buyers and give your home greater visibility
• A
stellar 40+ year reputation with buyers, sellers, and brokerages within our community
• The
largest independent brokerage in the East Bay, and among the largest in the country
Networking with the brokerage community we provide: • Promotion
of property on the Multiple Listing Service (MLS)
• Collaboration • Targeted • Virtual
with local agents who know the area and can guide their buyers to a successful close
marketing to select top agents
brokers tour outreach
• Networking
with our Realtor colleagues in other regions to attract out-of-area buyers
WE GENERATE WIDE EXPOSURE FOR YOUR HOME
REFERRALS BEYOND OUR BACKYARD
565 FIRMS
ENCOMPASSING
4,300 OFFICES
130,000
70+
SALES ASSOCIATES
COUNTRIES
Red Oak is a proud member of the Leading Real Estate Companies of the World. That means you have access to the highest caliber of real estate professionals in over 70 countries and across six continents. If you or someone you know is interested in buying or selling property beyond the East Bay, our world-class connections can help. Let us introduce you to a carefully selected sales associate who will provide you with extraordinary service — anywhere your real estate needs take you.
OUR PR OUTREACH Our relationship with LION & ORB, our public relations partner, is focused exclusively on real estate editorial coverage as we actively market your property.
“Publicity is absolutely critical. A good PR story is infinitely more effective than a front page ad.” – Sir Richard Branson We regularly place stories in SFGate, Oakland Magazine, Architectural Digest, The Wall Street Journal, San Francisco Business Times, Curbed, Dwell, Berkeleyside, Inman News, Realtor® Magazine (a real estate industry forum), East Bay Express, and other local and national media outlets.
Dear Sellers, I am pleased to introduce my firm, Lion & Orb, to you. We are a full service real estate public relations firm, specializing in the tasteful promotion of special properties. We work directly with the agents at Red Oak Realty. We discussed your home in the East Bay and I personally wanted to share with you that, beyond their unmatched knowledge, clientele and sphere of influence, Red Oak’s marketing team, which includes my agency Lion & Orb, is excited to embark on a strategic plan for targeted exposure to facilitate the sale of your home. I founded Lion & Orb in 2015 after nearly a decade of experience in the real estate industry, including six years at realtor.com. I saw a gap in the industry and decided to create a luxury real estate PR company, founded on a deep understanding and love for real estate. My team of creative professionals excel in the art of real estate public relations and the global promotion of properties, such as yours. We have an extensive network of allies in the press and regularly place stories in the Wall Street Journal, Architectural Digest, Dwell, Curbed, the Chronicle, and hundreds of media outlets around the world. Red Oak’s dedicated marketing team of designers, copywriters, video producers, and photographers are the best in the East Bay and give every property specialized attention. We believe every property has a unique story to tell and we look forward to bringing your story to the public. While your Red Oak Agent will be your listing agent, your home will benefit from the teamwork of Lion & Orb, Red Oak, and Leverage Global Partners, all aligned to create a one-of-a-kind marketing and sales campaign for your home. We are excited to have the opportunity to work together. Sincerely,
Audie Chamberlain Founder, Lion & Orb Exclusive PR agency for Red Oak Realty
ABOUT R E D OA K
2020’S LARGEST INDEPENDENT BROKERAGE IN THE INNER EAST BAY THE LARGEST INDEPENDENT BROKERAGE
LARGEST OVERALL BY CITY
...AND LARGEST INDEPENDENT BY CITY
MOST LISTINGS BY NEIGHBORHOOD
$1.1+ BILLION IN HOMES SOLD
1,100+ TRANSACTIONS
ALBANY
EL CERRITO
KENSINGTON
BERKELEY
OAKLAND
RICHMOND
ALBANY HILL
ARLINGTON HILLS
BERKELEY COUNTRY
BOULEVARD GARDEN
CALJULIA
CENTRAL ALBANY
CENTRAL BERKELEY
CLAWSON
COLUSA CIRCLE
DEL NORTE
DOGTOWN
EL CERRITO HILLS
FAT APPLES
KENSINGTON CIRCLE
LIVE OAK
MIRA VISTA
NORTH SHATTUCK
NORTHBRAE
NORTHSIDE (ALAMEDA)
OCEANVIEW
OLD OAKLAND
PARADISE PARK
PERALTA HACIENDA
EL CERRITO PLAZA
SHEFFIELD VILLAGE
Source: MLS. Number of single unit sales in Alameda, Albany, Berkeley, El Cerrito, El Sobrante, Kensington, Oakland, Piedmont, Pinole, Richmond, San Leandro and San Pablo, 2020.
WE KNOW EAST BAY REAL ESTATE We passionately support every client with a team of experts, prepared to do what it takes to make your real estate journey successful. • Red • We
Oak has been singularly focused on servicing our East Bay communities since 1976
live in your neighborhoods, we shop at local businesses, we send our children to the local schools
• 89%
of East Bay buyers already live in the Bay Area.* We know where the buyers are coming from and how to reach them.
• Our
agents and our offices are based right here in the East Bay, providing deeper insights and an intimate familiarity which result in a more personalized approach when selling your home
• One
of the few locally owned and independent, full-service brokerages in the East Bay
• More
than 160 agents in 5 offices
• 20+
full-time management/staff members, offering ongoing infrastructure marketing and support to our agents
• Red
Oak is a certified green business, as verified by the Bay Area Green Business Program
* Red Oak Realty buyers, 2020
OUR COMMITMENT IS TO PROVIDE YOU WITH THE BEST RESOURCES, INDUSTRY KNOWLEDGE AND SUPPORT We will protect our clients and agents, guiding them to make the best real estate choices possible. We promise to approach every transaction prepared for whatever should arise.
RED OAK’S HISTORY • 45
years in the East Bay, founded in 1976
• Founded
in a garage in Albany, expanded to its present Berkeley location at 1891 Solano Avenue
• Red
Oak opened an office to Montclair Village in 2012, creating an innovative, open and “green” office for agents and clients to meet
• Acquired
Marvin Gardens in 2019, creating the largest independent brokerage in the East Bay and adding offices in Berkeley, El Cerrito and Oakland
Red Oak has been recognized as: • Among
the largest privately-owned independent in the U.S. (#162, 2020 RealTrends)
• Among
the largest East Bay women-owned companies (#16, 2019 San Francisco Business Times)
• Best
brokerage in the East Bay by readers of Oakland Magazine (2020-2015)
RED OAK MARKET SNAPSHOT
WHEN YOU LIST WITH RED OAK, YOUR HOME IS MORE LIKELY TO SELL
PERCENT OF LISTINGS CANCELED 20% 18% 16% 14%
14.7%
12%
11.1%
10%
11.4%
11.2%
11.5%
8%
8.3% 6%
5.9%
4%
4.2%
3.5%
2%
4.7%
n dfi Re
H ig Pa h la r t nd ne rs
Re
m
ax
s K el W le r ill ia m
Co l B a dw n k el l er
ss pa m Co
. Be t & ter Ga H r d om en e s s
Co b ub Gr
ak O d Re
So
th
eb
ys
0%
Source: MLS. 2020 single family home listings in Alameda, Albany, Berkeley, El Cerrito, El Sobrante, Kensington, Oakland, Piedmont, Pinole, Richmond and San Leandro and San Pablo. Broker size determined by number of single family home listings sold.
RED OAK MARKET SNAPSHOT
WHEN YOU LIST WITH RED OAK, YOUR HOME IS LIKELY TO SELL FURTHER OVER LIST PRICE
AVERAGE PERCENT DIFFERENCE BETWEEN LIST AND SALE PRICE - LARGEST BROKERS 25%
20%
17.2%
15%
14.8% 13.2%
10%
10%
10%
9.6%
5%
8.9% 6.9%
6.4%
4.7%
ax m Re
Co l B a dw n k el l er
t & ter Ga H r d om en e s s
Be
ig Pa h la r t nd ne rs
H
s m K el W le r ill ia
ys eb th So
Re
dfi
n
ss pa m Co
b ub Gr
Re
d
O
ak
Co
.
0%
Source: MLS. 2020 single family home listings in Alameda, Albany, Berkeley, El Cerrito, El Sobrante, Kensington, Oakland, Piedmont, Pinole, Richmond and San Leandro and San Pablo. Broker size determined by number of single family home listings sold.
RED OAK MARKET SNAPSHOT
WHEN YOU LIST WITH RED OAK, YOUR HOME IS LIKELY TO SELL FASTER
40
35 AVERAGE DAYS ON MARKET – LARGEST BROKERS 30
25
26
20
15
13
10
17
16
15
17
17
20
19
18
5
ys eb th So
ax m Re
ig Pa h la r t nd ne rs
n dfi Re
H
s m K el W le r ill ia
Co l B a dw n k el l er
t & ter Ga H r d om en e s s
Be
ss pa m Co
b ub Gr
d
O
ak
Co
.
0
Re
DAYS
Source: MLS. 2020 single family home listings in Alameda, Albany, Berkeley, El Cerrito, El Sobrante, Kensington, Oakland, Piedmont, Pinole, Richmond and San Leandro and San Pablo. Broker size determined by number of single family home listings sold.
OUR TEAM You’ll have access to a dedicated team of full-time real estate professionals who have a personal interest in your success. Our experience allows us to find solutions for the most complex transactions.
NEGOTIATION, MEDIATION & MARKET STRATEGY VANESSA BERGMARK – OWNER & CEO • Over
15 years of experience running residential brokerage sales teams in the East Bay
• Consistently
and T3 Sixty
• Featured
and more
named among top real estate professionals in the country by Inman News, RISMedia
industry speaker for the National Association of Realtors, California Association of Realtors
MELISSA BUSH – SR VP OF SALES • Provides • Over
agents and clients with expert guidance in complex transactions
10 years of real estate industry experience in Contra Costa and Alameda counties
• Led
sales management effort locally since 2015; was CEO of the Oakland Association of Realtors, 2011-2014
MARION HENON – SALES MANAGER • Co-founder • Over
of Marvin Gardens
30 years of East Bay real estate knowledge and transactional experience
• Extensively
involved in managing the local real estate association and crafting documentation
AMAN DARO – CHIEF OPERATING OFFICER • Leverages data and marketing strategy to help agents and company innovate and grow • Over 15 years of experience with Bay Area boutique real estate brokerages. Additional 10 years
managing strategy at J. Walter Thompson and Saatchi & Saatchi for Procter & Gamble and Clorox.
• Featured speaker at Luxury Portfolio, Inman, Women’s Council of Realtors and Who’s Who in Luxury
Real Estate conferences
DEDICATED MARKETING TEAM • Custom-designs • Manages
advertising collateral for property listings
media and public relations presence
• Creates
materials by leveraging the most effective technological and print resources to market your property for a successful sale
• Provides • Collects
in-house creative, editorial and brand development
statistical research on neighborhoods
• Manages
social media and digital marketing, including advertising
COMPLIANCE & TRANSACTION TEAM • Coordinates • Ensures • Works
each transaction, from the initial listing to the successful close of escrow
documentation is in compliance with the ever-changing regulatory environment
in tandem with the larger team, using an online transaction management system to ensure that documents are managed efficiently, securely and professionally while in accordance with the standards set by the California Department of Real Estate
FIERCELY INDEPENDENT Red Oak is a fierce believer in “We answer to you.” We have specifically chosen to stay independent and locally owned rather than to join a franchise. Why? We live here. And as residents in Berkeley, Oakland and surrounding cities, we don’t believe in following the status quo, and taking strategic advice on our local market from corporate headquarters in another state. There are advantages to being independent: we are more nimble and more flexible than franchised brands. When market conditions change we can adjust swiftly and our ties with the local community keep us informed, offering you the most accurate and beneficial strategy when selling your home.
OUR BRAND In late 2017 Red Oak embarked on a brand refresh. The new Red Oak brand communicates more precisely the core beliefs we’ve carried all along.
The 3 Pillars of Our Brand
ENGAGED LEADERSHIP
EAST BAY MASTERY
PROFESSIONAL CANDOR
Red Oak agents do not fly solo in their work; they are supported along the way by a team of experienced professionals who are engaged and provide additional marketing, legal and contractual expertise.
Red Oak agents know the East Bay and deliberately focus on the local market rather than expanding the footprint to other territories, diluting our attention locally.
Red Oak values honesty and transparency - especially when it comes to how our agents guide their clients through transactions. Done professionally, this type of candor has proven to be an essential ingredient to our clients’ success.
THE EAST BAY SPECIALIST Our 160+ agents closed over 1,100 transactions worth over $1.1 billion in 2020. In today’s competitive East Bay real estate market, it pays to work with agents who are supported by a team that has mastered its complexities and is ready to take on any challenge.
RED OAK TRANSACTIONS
2020 2019 2018
WE CONTRIBUTE TO OUR COMMUNITIES
In 1985, the owners of Red Oak Realty sought a way to give back a portion of business earnings to the communities they serve. The Red Oak Opportunity Foundation (ROOF), a 501(c)3 nonprofit charitable organization, was formed. • ROOF
has donated over $1,400,000 to local charities since inception
• In
its early years, ROOF was funded exclusively by voluntary contributions from agents’ commissions, which then were matched by the owners of Red Oak Realty
• In recent years, contributions have also been received from Red Oak Realty clients and others in the community • Grants
are awarded annually and are based on need, service to the community, and are in alignment with ROOF’s goals to support the local community
Here are just a few of the recent grant recipients:
RED OAK REALTY IN THE NEWS “[Red Oak is] repositioning itself as ‘a straight-talking, data-driven brokerage that lives and works in the community they serve while backing the agent on all fronts,’ said broker owner Vanessa Bergmark. ‘A David and Goliath approach in the world of big brokerages and Wall Street.’” – Inman News
Featured in:
ARCHITECTURAL DIGEST
Read more at www.rore.me/redoakpress
WE ARE A GREEN BUSINESS We care deeply about where we live. In 2012, Red Oak Realty became a certified green business, as verified by the Bay Area Green Business Program. Our business now complies with environmental regulations in the areas of waste, energy, water, pollution prevention and air quality.
redoakrealty.com