There are many different steps in a successful real estate transaction!
Setting a Price
When setting a price, the important thing is to be realistic. If
the price is too high, you may not find a buyer. Too low, and you
cheat yourself out of money.
Appraisal
Regardless of what you originally paid for your home and the cost
of improvements you have made, the only price that matters is what
the market will bear at the time you decide to sell. You may
consider hiring an independent real estate appraiser with
specialized training and experience. Don't rely on assessed
valuations made for tax purposes. Such valuations may not be
reliable indicators of value, as they are  usually made using
mass appraisal techniques.
Whether or not you get an appraisal,
The Manzo Team can develop a comparative market analysis. This
analysis will describe homes in your area that have recently
withdrawn from the market and may compare specific features of your
home to others--the value of a corner lot, a city view, or an extra
bedroom, for example. The analysis may also point out market
fluctuations caused by the opening of a new school or business, as
well as long-term trends.
Net proceeds
Once you've decided on a price
range, The Manzo Team can help you calculate an estimated amount
you might net from the sale. If you have owned your home for
several years, you may have built up sizable equity. Equity is the
difference between the value of your home and the balance on your
mortgage. After subtracting what you owe on your mortgage, ask The
Manzo Team what costs you will incur in closing. These may include
title fees, taxes, a penalty for prepaying your mortgage, brokerage
commission and charges for preparing and recording documents.
Finally, ask your tax
adviser or attorney about the tax implications of your
proposed sale.
Preparing your home
In preparing your home for viewing
by prospective
buyers, remember that people buy on emotions. Your
home has to feel right, or buyers will look elsewhere. Ask The
Manzo Team and some honest friends to look at your home objectively
and suggest ways to make your home more inviting and sellable.
Consider both the exterior and interior. Since you will be
appealing to buyers' feelings, you need to pay attention to detail.
An extra $50 you spend on red geraniums or new bath towels might
mean a significant increase in a buyer's offer.
Clean your home thoroughly and make
minor repairs such as tightening towel racks and gluing wallpaper
edges. For larger repairs, consult The Manzo Team as to whether
repairing the item will generate a good  return on the sale.
Repainting the woodwork may be worth it, but replacing the carpet
may not. Hire a professional inspector to examine your house for
structural and mechanical defects. Get an inspection early, and you
can avoid surprises.
Honesty and candor
If your home has a major problem you
don't intend to correct be candid about it. Don't paint over the
water marks on the ceiling to hide a leaky roof. Buyers will find
out about the problems anyway, especially if they are smart
shoppers and hire a professional to inspect your home. In an age
when lawsuits are as common as family sit-down dinners, it pays to
be open about everything.
You should consider including a
one-year residential service contract with the sale of your home.
This buyer perk is a common practice and helps ease concerns.
Typically, after the first year, the buyer has the option of
renewing the coverage at his or her expense. A residential service
contract is simply an agreement with a company to repair certain
items on the property if such items fail to function or are in need
of repair (for example, air conditioning unit, heating equipment,
plumbing system, etc.).
Attracting and screening
buyers
As part of the overall marketing
strategy, The Manzo Team may arrange a tour of your home for local REALTORS® and perhaps
schedule an open house for the public. The Manzo Team may also run
ads in local newspapers, Web sites, and other publications tailored
specifically for the type of home you are selling. As responses
come in, The Manzo Team will screen out sightseers and half-hearted
inquirers and make appointments with the serious prospects.
When the showings begin, keep your
home clean and ready. The Manzo Team will try to give you advance
warning before showing your home but be prepared anyway. If people
drop by and are not with a REALTOR®, it's best not to show them
your home. Ask for their names and phone numbers and refer them to
The Manzo Team at 626 296-2900.
Purposeful absence
When a REALTOR® comes to show your
home, its best if you are not there. Many buyers feel like
intruders when the owner is present; they tend to hurry away.
Letting the buyers walk through your property at their own pace
will help put them at ease. They will feel free to look around and
ask questions. If you must be there, let the REALTOR® handle the
showing. Sit quietly and be courteous, but avoid engaging the buyer
in conversation. The REALTOR® needs the buyer's complete attention
to show your home properly.
REALTORS® are required by law to
make your property available to all persons without regard to race,  color, religion, national origin, sex, disability, or
familial status. The Manzo Team will not discuss any matter that
may potentially discriminate against any person.
The offer
When a buyer makes an offer on your
home, The Manzo Team will contact you promptly. The Manzo Team will
scrutinize the document, review it with you carefully, and answer
your questions. The written offer lays out all the terms of the
proposed transaction--the price the buyer is willing to pay and the
financing terms--and becomes a binding contract if you sign it.
The offer may be contingent on the
buyer selling a home first or obtaining an inspection. The
Manzo Team will show how these terms affect you and
whether the offer is in line with the market. The offer describes
the property, states who pays for which closing costs, and
specifies dates of closing and possession. Along with making the
offer, the buyer may place some earnest money with the escrow agent
as a sign of good faith. The earnest money will be kept in an
escrow account and applied to the buyer's down payment or closing
costs when the sale closes.
Your options
In reviewing the offer, you have
three options: accept, reject, or make a counteroffer. A
counteroffer is a rejection of a buyer's offer with a simultaneous
offer from you to the buyer. Carefully review the figures compiled
earlier to determine your net proceeds--closing costs may be quite
different from earlier calculations. Discuss the possibilities with
The Manzo Team and a tax adviser.
Seller's disclosure
This document provides important
information about the seller's knowledge of the condition of the
property. Complete the notice to the best of your knowledge and belief. The
Manzo Team will most likely ask that you complete the notice at the
time the listing is first taken. Copies of the completed notice
will be made available to those looking at your property.
Lead-based paint disclosure
If your property was built before
1978, federal law requires that before a buyer is obligated under a
contract to buy the property, the seller shall: 1) provide the
buyer with a lead hazard information pamphlet (as prescribed by
EPA); 2) disclose the presence of any known lead-based paint or
hazard; 3) provide the buyer with a lead hazard evaluation report
or records available to the seller; and 4) permit the buyer to
conduct a risk assessment or inspection for the presence of
lead-based paint or hazards. A contract for the sale of property
built before 1978 must contain a statutorily prescribed Lead
Warning Statement to the buyer. Your REALTOR® will provide you with
the forms necessary to comply with the law and will suggest
procedures to follow in order to comply.
Accepting the offer
Once you and the buyer agree on
terms and sign the contract, the buyer will generally have to find
a lender and apply for a loan. Your REALTOR® may monitor the loan
process, which could last several weeks. During this time, your
REALTOR® will also be busy coordinating other arrangements to
prepare for the final sale.
As part of the process, the title
company may order a survey of your property and research the title
to your home, making sure the chain of title is clear. Clearing the
title may require paying off liens--that is, any monetary claims
against your property. Examples are: mechanic's liens, unpaid state
and federal tax liens, court judgments, and probate considerations
(if a co-owner has died). The product of the title search can be in
the form of title insurance, abstract of title, or certificate of
title, depending on what is commonly used in your area.
Inspection and repairs
If the buyer requires it, your
REALTOR® can coordinate an inspection of your home. A buyer may
hire an inspector to review many items in the property such as the
structural components, mechanical items, electrical systems, and
plumbing systems. The inspector will report to the buyer the items
that the inspector finds to be in need of repair. Most likely, the
buyer will provide a copy of the inspection report to you and may
ask you to complete certain repairs. Don't be surprised if the
inspection notes some items in need of repair. An inspector is
trained to see items and defects that are not obvious to you and
your REALTOR®. No matter how new or well-maintained a home is, an
inspector may find some items in need of repair.
Closing
The sale formally ends when the sale
gets recorded at the county recorders office escroe will notify
all parties involved.
Basic documents
The sale actually consists of two
transactions: 1) transferring the property to the buyer, and 2)
paying off the existing mortgage on your home (or allowing the
buyer to assume your mortgage). To transfer the property, the title
company will present documents proving that you have the title.
Proceeds of the sale may be disbursed at closing or shortly
thereafter, once all the paperwork and verifications have been
processed. When you give your house key to the new owners, the sale
is complete
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