The Buying &
SellingProcess
It
is important to know what to expect as you navigate through the
process of purchasing and or selling your home. These basic guidelines
will help give you an idea of the process, though your agent should
be guiding you through these - and much more.
Why Buy
Houses
in Alameda County have appreciated approximately 6% annually over
the last 20 yrs. This figure varies from neighborhood to neighborhood,
but used as a frame of reference, in 5 yrs a $500,000 house could
be worth $670,000. Your investment of $100,000, 20% down, has
the potential to reap an annual return rate of 30%.
Interest
and property tax is deductible. Those payments come off the top
of your tax return, lowering your effective monthly payments significantly.
Pre-approval
Get
pre-approved for a home loan. The lender will require documentation
of your salary, copies of bank statements and will run a credit
report. It takes a few days.
Pre-approval
is different than pre-qualification. The approval carries more
weight and is essentially required to get an offer accepted in
our competitive marketplace. Find a real estate agent you like
and trust
Find a Real Estate
Agent
Find
an agent with whom you connect. It is a very personal, emotional
and detailed process. You must be very comfortable and very confident
with your representation.
The buyer doesn't pay the commission, the seller does, so let
someone advocate for you.
Don't
delay. Should you happen upon the right home, you want to be in
a position to make an offer without scrambling to find an agent
to represent you at the last minute.
Outline
Your Needs
Previewing homes clarifies features you desire. A good agent will
effectively plot your course.
Listen
to yourself. Paying attention to your gut reactions to various
characteristics of a home or neighborhood prove quite valuable.
Your answers are often right there!
Prioritize
what is actually important to you. This is a competitive market
and you will have the upper hand by knowing what is paramount
in your home purchase.
Try
not to get overwhelmed. Count on your agent's objectivity and
guidance.
Making an Offer
Offers
are typically heard on a specific day, sometimes at a particular
hour. Multiple offers are not uncommon. Your agent should thoughtfully
walk you through your offer.
Delivering
a competitive offer requires your checkbook for a good faith deposit,
pre-approval documentation and proof of funds for your down payment.
If
accepted, your offer is the contract.
Escrow
Understand
the framework, but rely on your agent to execute items to a timely
close.
Fulfill
responsibilities associated with contingencies in the contract.
Examples: getting a home inspection, insuring the home, getting
a pest report, having the drainage system evaluated and so forth.
A reputable agent will provide you with superb service vendors.
Negotiate
repairs and remove contingencies. This is where your agent's skills
are vital.
Complete
the final walk-through just before closing.
Sign
the grant deed, the bank funds your loan and the house is yours.
The motives behind selling our homes vary. It is often an indication
of something exciting on the horizon, and unfortunately it is
sometimes a result of hitting a crossroads in life. Regardless
of the reason for your move, you want it handled with great care,
skill and understanding. Outlined below are some of the steps
of the sale to get you thinking about what it entails and to in
turn assist you in facilitating the process.
For
Consideration
Are
you buying another home? Do you need to sell your home before
buying another?
Discuss
tax breaks associated with the timing of your sale with your accountant.
Confer
with your agent about the optimal week to list your home given
market trends.
Familiarize
yourself current trends in your neighborhood. Your agent should
provide you with recent comparable sales in your market.
Consider
a pre-emptive home inspection and pest report.
Preparing
Your Home
Know
what you can and cannot change about your house. This allows you
to concentrate on those items that bring the highest rewards.
Talk
to your agent about options associated with presenting your home.
Cleaning out the clutter, painting, landscaping, staging... Many
of these simple projects can result in a top dollar return as
your house is more desirable to more prospective buyers.
Prepare
a list of all improvements completed since owning your home.
Market
Ready
Marketing
is not only desirably conveying the product, your home, but it
is also reaching true potential buyers. Your agent should outline
their marketing plan with you.
Holding
your house open is your agent's responsibility. Open homes draw
upwards of a hundred soon-to-be buyers through your home. The
broker's open brings the agents in who in turn sell their clients
on your home.
Negotiate
& Close
Evaluate
offers. Your agent will walk you through the details of each contract
and help you to weigh the strengths and weaknesses of each offer.
Removing
contingencies can require a firm but gentle hand. Your agent will
guide you through the process and look out for your best interests.
The
timeline to close approaches quickly. Don't forget to prepare
for movers.
Stay
informed and know your timeline. Your agent should be on top of
all the details and provide you with frequent updates.
Closing
and settlement.
