Rene David Martinez - INSIDER HOME SELLING TIPS

INSIDER HOME SELLING TIPS

Rene David Martinez vid Martinez

Table Of Contents

Introduction

Put a Plan Together

Common Steps in the Home Sales Process

Frequently Asked Questions by Home Sellers 8

List Price / Sales Price

Home Preparation For Sale

To Stage or Not to Stage

Marketing

Finding Home Buyers for Your Home

10. Showing Your Home

11. The Purchase Offer Contract Process

12. Negotiating a Purchase Offer

13. Home Seller Tips

14. Why Some Homes Don't Sell or are Taken Off the Market

15. Listing Agreement & Getting Started

CHAPTER 1 Introduction

For most people selling a home is the single largest, most complex transaction a person will ever undertake. The sales process involves new terms and concepts, financial acumen, and larger figures than normally dealt with and can feel a bit overwhelming. This book is intended to help home sellers familiarize themselves with the home sales process and to provide tips and a starting point for a smoother and successful transaction. Every sale is unique because home sellers have different real estate wants and needs, no two homes are the same and there are different types of sales. This book just covers a traditional single family residential sale. If you are doing a 1031 exchange, selling a second home, a short sale, multi-unit, or are a successor trustee selling an inherited home simply send me an email request for further information on the necessary steps needed for these types of sales.

Author,

Rene David Martinez CA Real Estate Broker / Realtor License#01250176

Broker Associate with Compass rene.martinez@compass.com renedavidhomes.com Serving the Silicon Valley Real Estate Market Since 2002

About Rene David Martinez

CHAPTER 2 Put a Plan Together ogether

So, you have made the decision to sell your home or property, now what. Regardless of whether you need to sell as soon as possible or months from now, now is the time to put a sales plan together. What needs to be done and when and by whom. If you are using a realtor, then a consultation with your realtor is a good first step. A consultation is best done at the subject property but if that is not possible then phone or zoom consultations are options and can work for a consultation. Every transaction is different and may have different steps or requirements so items covered during a consultation may vary but below are some typical items covered in an initial consultation with a realtor. - Review Sellers Real Estate Wants, Needs & Concerns - Confirm the Type of Sale and Ownership - Review Market Analysis - Homes Current Value - Review Estimated Sellers Net Proceeds - Review Timeline - Review Home Prep for Sale Options - Review Personal Property Included or Excluded in the Sale - Review Sales Process for your Type of Sale - Review Who Does What in the Sales Process (Realtor / Seller) - Review What the Realtor/Broker is Offering Putting a detailed plan together is must in order to help increase your odds of a smoother transaction and maximizing your net proceeds. Implementing the plan typically takes time so it is

recommended to put the plan together as soon as possible. The premarket step that may take the most time is executing the home preparation for sale items.

Legal & Tax Advice

On occasion home sellers may need to consult with tax consultant or get legal advice regarding the sale. Real Estate Brokerage companies and realtors do not provide legal or tax advice. Tax Advice: Any tax question that you may have should be addressed to the appropriate tax professional. For example, if you are not clear on determining the cost basis numbers and verifying the capital gains tax amount if any from the sale of your home then a consultation with your tax advisor is advised. Legal Advice: Real estate legal advice questions should be addressed to the appropriate legal professional. For example, tenant evictions, title issues, contractual disputes with the buyer or broker, boundary disputes etc...

CHAPTER 3 Common Steps in the Home Sales eps in the Home Sales Process Below are some common steps in a typical sales transaction. Steps will vary depending on the type of transaction and the negotiated purchase contract. Some items will be done by the realtor, some by the home seller and some by both. Who does what should be discussed during the initial consultation with your realtor.

Below is shown who typically does what. (A= Agent S= Seller)

- Consultation with your Realtor (A/S) - Get legal and tax advice if necessary. (S)

- Review possible home prep for sale items (A/S) - Get quotes for any home prep for sale items (A/S) - Order Preliminary Title Report (A) - Order NHD Report (A) - Supply Title Company with any necessary Documents (A/S) - Order Home Inspections (A) - Review Home Inspections & Title Report (A/S)

- Review and Sign Advisories (A/S) - Fill out and sign disclosures (A/S) - Put together a disclosure package for buyers (A) - Do home preparation for sale items. (A/S) - Do any point-of-sale requirements (A/S) - Stage the Home and Property (A/S) - Order Professional Photos / Virtual Tour (A) - Write Verbiage for MLS & Flyers (A) - Order Flyers (A) - Coming soon / Members Only Entry (A)

- Order Yard Sign (A) - Put Listing on the MLS / Major Real Estate Websites (A) - Direct Marketing to Brokers / Agents (A) - Active Public Marketing Work (A) - Brokers Tour (A) - Open house (A) - Private Showings (A) - Send Disclosure Package to Potential Buyers Agent (A) - Review Offers & Estimated Sellers Proceeds (A/S) - Respond to Offers (counteroffer, acceptance or rejection) (A) - Send Accepted Purchase Contract to the Title Company (A) - Perform Sellers Duties Per Purchase Contract (A/S) - Contact Escrow Officer (oversee escrow) (A) - Meet the appraiser at the home (A) - Contact Buyers Agent (inform & question) (A) - Contingency Removals (A) - Schedule Moving Date (S) - Set cancellation dates for home services, utilities’, mail, etc.. (S) - Buyers final Walkthrough (A) - Sign Final Paperwork and wiring instructions at the Title Company (A/S) - Remove all personal property items & Clean Home (A/S) - Verify Closing & Funds (A/S) - Provide Keys to Buyers Agent (A)

CHAPTER 4 Frequently Asked Questions b ed Questions by Home Sellers Below are brief answers to frequently asked questions, these questions should be gone into greater detail with your realtor prior to signing a listing agreement. • What is the current market value of my home? Realtors will provide a market analysis of the home to determine the current value of the home in its current condition. What the seller is really asking is how much do you think the house will sell for in its current condition. • How much will we have to pay in Captial Gains taxes? Never rely on a realtor to answer tax questions, get tax advice from tax professionals. What the realtor can provide is an estimated sellers statement which will estimate the sales price and closing costs which you can provide to your tax advisor. Your tax advisor can use this statement along with the cost basis and exclusions to give you a general estimate on possible capital gains. • How much will we have to pay in closing costs? Closing costs will be largely determined by the accepted purchase contract. Who pays what is negotiated between the buyer and seller in the purchase contract. A realtor should be able to give a seller a general estimate of what the seller may pay in closing costs before entering into a purchase contract based on an estimated sales price and who pays

what customarily in a sales transaction in your area. Keep in mind this is a general estimate. Once you receive a purchase offer you can then review what the closing costs will be for the seller. • I have inherited a home and am named the successor trustee; do I have to provide a copy of the trust? In the bay area the realtor will order a preliminary title report from the title company and if the home is in a trust and is to be sold by the successor trustee then a copy of the trust will need to be provided to the title company before putting the home on the market. • Is this a good time to sell our home? What are the current market conditions? Sometimes homeowners must sell for whatever reason and sometimes homeowners want to sell but selling is not a must. Market conditions are continually changing so today may be a "seller's market" but can change quickly. So, all we can do is tell you what the market conditions are on the day the question is asked and give an educated guess on what the market condition may be like on the day the home goes on the market. • What do you recommend for the list price? A list price is a strategic price decision that the seller will have to make after discussing list price options with their realtor. Typically, a realtor will give a recommended list price after taking into consideration the seller needs, estimated market value of the home and market conditions. Usually, the goal is to sell the home in the time frame and for the terms that works for the seller and to get the highest price possible. Making the right list price decision will have a big impact on the final results, ultimately the list price

decision is the seller's decision. • How long will it take to sell our home? This is typically determined by market conditions, property condition, list price, marketing and the negotiated contract. In a hot seller's market, the home could sell in days and close within 30-45 days. In a neutral market it could take 2-3 weeks to sell and close 30-45 days after that. In a slow market it could take months to sell and close 30-45 days after that. Keep in mind that homes that are in better condition, presented and priced properly typically sell quicker. • What is included in the sale: Discuss with your realtor what you would like to include or exclude in the sale. What is included and what is excluded in the sale will be determined by the accepted purchase contract. The decision on what is included and excluded in the sale needs to be made before the home goes on the market so that before an offer is written on the property the listing agent can relay to the buyer's agent what the expectations the seller has on included and excluded items. • How will you market our home? Quality professional photos and video along with the proper verbiage is essential in the home selling process. Massive and continuous marketing to your target market through various media is also essential. Your realtor should also go over the pre-market and active listing marketing options. Before signing a listing agreement, you should be provided a comprehensive marketing plan. • How do commissions work? First of all, commissions are negotiable. Commissions paid by the seller to the listing broker are agreed upon in the listing agreement and who

pays the buyers broker commission will be determined by the accepted purchase agreement. Home buyers sign their own agreement with the buyer's broker stating the buyer broker's commission agreement among other items before starting the home buying process. The buyer is responsible for the buyer broker commission but may ask in the purchase offer for the seller to pay for some or all of the buyer's broker commission. This answer is a simplified answer on how the commissions work and needs to be discussed thoroughly between the seller and realtor before signing a listing agreement. • Do we have to have home inspections done on our home before we put the home on the market? Sellers are not required to provide home inspections (home, pest, pool, septic, roof, etc.) to home buyers but it is highly recommended that home sellers do home inspections before putting the home on the market and provide them to potential buyers along with the seller's disclosure package prior to buyers writing an offer. Doing upfront inspections will increase the odds of receiving an offer, help prep and price the property with confidence, greatly reduce the odds of the buyer asking for repairs or a price reduction or backing out of the sale for a property contingency during the contingency period of the escrow • Will buyers do their own inspections on the home? The buyers may exercise their right to inspect the property during the escrow period but if the seller have already provided the buyers with thorough home inspections, then the sellers are in a much stronger position than they would be if they have not provided the inspections up front. Home sellers often say they are not going to do

inspections because buyers are going to do their own anyway, but this is in my opinion is a major mistake that usually comes back to bite the sellers later in the transaction. • What cosmetic touch ups, repairs or renovations do you recommend we do before we put the home on the market? A home prep for sale analysis report along the home inspections will provide the home seller with items that the seller may want to address before putting the home on the market. Main items to consider when doing home prep for sale items will be time needed to get the work done, costs involved and return on investment. • Do you recommend that we professionally stage the home? Vacant homes usually show better and perform better after professionally staging and usually is recommended. Owner occupied homes will have to be analyzed on a case-by-case basis. Home presentation is another key item that the home seller has control over that will definitely have an impact on the sale. • What are we required to disclose to buyers? Home sellers will be asked to provide numerous disclosures, reports and advisories to the home buyer. There are mandatory disclosures, customary disclosures and contractually required disclosures that are supplied to the buyer ideally before the buyer writes an offer. Your realtor will discuss with you the different type of disclosures that need to be provided in the sale. Disclosures and reports are intended to provide the buyers material facts to the buyer that may affect sale and the buyer's decision to purchase the home;

among them are items that affect the desirability, enjoyment, usage and the value of the home.

• How do showings work? It can be inconvenient at times for home sellers to make their home available for home buyers to view but home showings are a necessary part of the process. Typically, showings go like this; Brokers Tour (a day for local realtors and brokers to view the home), Open House (usually on the weekend for a few hours each day of the weekend), viewing appointments for owner occupied homes (buyer's agent will contact the listing agent to coordinate a viewing appointment). Having said that, it is up to the seller how and when the home will be available to be shown. Also, your realtor will go over safety issues during home showings. • How does the purchase offer process work? Here is a typical offer process; Buyer's agent requests a disclosure package from the listing agent, buyer's agent contacts listing agent that an offer will be coming, offer comes into the listing agent, listing agent reviews offer with sellers, sellers either accept, counter or reject the offer. • Should we set an offer date? Offer dates are sometimes set so as to give time for potential home buyers time to view the property, sometimes offer dates are set to motivate buyers to write an offer and other times offer dates are set with hopes of increasing the odds of receiving multiple offers. Offer date or no offer date will be determined on a case-by-case basis. • What are required to do during the escrow period? The accepted purchase contract will dictate what are the responsibilities of the buyers and sellers during the escrow period. Sellers should be given a timeline of what needs to be done and when it needs to be done during the escrow period.

• When should we contact the movers? You should be getting moving quotes early in the process before you are in contract and then you can set a tentative date after you are in contract. • When will we get our money? The title company records the sale with the county and disperses (wires funds) the funds on the close of escrow date if all responsibilities according to the purchase contract are met by that date.

CHAPTER 5 List Price / Sales Price

A list price of a home is a strategic price chosen by the seller after reviewing a comprehensive market analysis to maximize the odds of the seller receiving the highest possible offer, a quicker offer and the deal closing. Choosing the right list price is one of the most important decisions in the sales process.

Determining the List Price

First step in determining the list price is to do a comparative market analysis of your home to see its current value in its current condition. Second step is to do a home preparation analysis, what are some items to consider doing to the home and property to present the home better and increase the odds of receiving higher net proceeds. Third step is positioning the home against other homes on the market. The question then becomes do we want to price the home right at we believe the current market value of the home is or do we want to price it a bit below market or price it a bit above market value. Being familiar and up to date with what is currently active on the market will help determine how we should position the home price wise on the market.

WHAT IS YOUR HOME WORTH NOW?

You probably have a general idea of what your home value is currently but doing a market analysis will help refine that number. A detailed 3 viewpoint (seller, buyer, appraiser viewpoints) market analysis to refine the current market value in its current condition before any home improvements have been 16

done.

Home Preparation for Sale Analysis

Determining what items to do or not to do to the home prior to putting your home on the market will have a big impact on the home seller net proceeds. A thorough home prep for sale analysis should be done to determine what makes sense to do or not do to increase the odds of the home seller selling the home quicker and receiving higher net proceeds. Ideally home inspections will be done in time to aid in the home prep analysis report. Market conditions, time to do the home prep items and estimated return on investment are the primary items to consider when deciding which improvements should be done before going on the market. The goal is to present the home well and at the same keeping in mind the return on investment with regards to improvements.

Positioning the Home for Sale

Market conditions are constantly changing; therefore, home sellers may have to adjust to changing market conditions. When determining the list price, a close look at the current market conditions and recent market sales in your area is a must. Are prices trending up or down? How fast are comparable listings in your area selling? The day that you put your home on the market you need to know what other comparable properties to your property that buyers will be considering. You need to position your property so that buyers will strongly consider your property over the other homes on the market without underpricing your listing.

Sales Price

Ultimately the sales price will be determined by an agreement between the buyer and the seller. Of course, sellers are typically trying to get the highest possible price with favorable terms and

buyers are hoping to get the property at a lower price with favorable terms. List price is always looked at first when buyers are determining what to offer on the purchase contract, but buyers will also look at disclosures, possible repair costs and desired improvements, how many other offers are being presented and the current market conditions as part of the equation. A higher list price does not always equal a higher sales price. Conversely a low list price does not always guarantee receiving multiple offers and a higher sales price. Sales price is only part of the equation in what the seller's net proceeds will be at the close of the sale. Upfront costs negotiated terms in the purchase contract, closing costs and tax consequences all are part of the equation.

CHAPTER 6 Home Preparation For Sale

Should we consider doing improvements, repairs, cosmetic touch ups or staging before putting the home on the market? What will make the property more appealing to the buyers, what makes the most sense financially to the seller to do (return on investment), do we have the time to get the home ready?

There is an order to the home prep for sale analysis and process.

1.) Walkthrough: First is to do a walkthrough of the property, are there systems that are not working (faucets, outlets, etc) As the homeowner do you have thoughts on improvements or cosmetic touch ups that you were considering doing. It’s best to do the walkthrough with your realtor to get his or her ideas on what might make sense to do. After doing a walkthrough, make a list of the possible to do items. From there you can get some general cost quotes and time frames of the possible to do items. 2.) Inspections: Ideally it is best to get home inspections done before we start doing any major home improvements. One to see if there are any items on the inspection reports that we may consider doing or two to prevent us from doing unnecessary work. Let’s say you replace the bathroom floor as a home prep for sale job before you have the inspections done and the on the inspection report they find significant dry rot or severe termite infestation under the bathroom floor, and they recommend that the floor be taken off and the damage repaired. Well either you or the buyers will have to that floor over again. That is just one example of why we like to see the inspection reports before doing anything that may have to be redone.

3.) Quotes: There are home preparation items that may require a professional to do so quotes are necessary. Keep in mind these professionals may be booked for a while so the sooner you get the quotes the better. If you feel that you need more than 1 quote for a specific job, then maybe get 2 or 3 quotes from reputable contractors. Ask for written quotes. 4.) Doing the Math & Review: What do we estimate the home may sell for now in its current condition versus what do we think the home may sell for after doing the improvements. Always consider the time it takes to make the improvements and the current market conditions when deciding what improvements to make. Also, I recommend that when considering doing items that have a larger dollar amount (example: bath or kitchen remodel) to add 15-20% to the quote when doing the math. Itemize all the possible home preparation for sale items and then estimate the return on investment and the time it will take to complete the improvements and finally check the market conditions. 5.) Doing the work: When hiring someone make sure there are no ambiguities in what is expected to be done. When using contractors make sure their license is current, you can do this online with the contractor's state license board. Keep paid invoices paid to contractors and paid material receipts.

CHAPTER 7 To Stage or Not to Stage

Staging is the act of sprucing up and setting up a home's interior and exterior to make it as visually appealing as possible to a prospective buyer. Creating an appealing home one that potential buyers can envision themselves living in. Sellers often fail to take full advantage in this regard, as it may take considerable time and work. Whether you have the home professionally staged or do the staging yourself there is always something that can be done to make the home more appealing to the buyers. Proper staging will definitely make the home more appealing to home buyers, the question sellers have is will I net more money if we professional stage the home. The answer is usually yes, because a well staged home will aid in encouraging offers and make for a quicker sale which increases the odds of a higher offer. But can you say for sure a professionally staged home will pay for itself? No, but we are basing our answer on past personal 22

experiences and experiences shared in our real estate market community. Staging the home: • Enables the buyer to visualize what can fit in each room. • Provides a visual edge over the competition. • Increases the odds of selling the home quicker. • Increases the odds of selling the home for more money. What does it cost to professionally stage a home with furniture in Silicon Valley? The cost to fully stage a home using a professional staging service in Silicon Valley will vary depending on the size, type of staging and season. A typical 3-bedroom 2 bath 1,500 SF home will typically cost about $7,000. This number is just to give you a general idea of staging costs for a vacant home in 2025. This cost does not include cosmetic touch ups like painting and new flooring; the $7,000 cost estimate refers to staging with furniture and accessories. Most homes that we sell do not require full staging but if they do in my experience, it is well worth the investment. Full staging refers to staging each room and exterior (porch, patio, etc.) with furniture and accessories. Some Staging Tips • Furniture pieces and style should fit the space. Too many pieces of furniture in a space can make the area feel cluttered and smaller. • Style should be somewhat consistent. You do not want to have a home feel disjointed. The style does not have to be exactly the same from room to room, but it should have a pleasant flow. • Keep the home clean, less clutter on shelves and countertops, beds made, personal items put away.

• Paint colors do not need to be all neutral colors although it is a safe way to go. Actually, sometimes we choose a color to aid in an areas appearance. However, the paint chosen should fit the space and decor and aid in brightening up an area. It is rare that we choose darker wall colors for staging purposes. • It helps if each room shows a purpose. It gives the illusion that the home offers more amenities. • Do not forget to stage or make the exterior equally appealing. • Well placed plants or flowers and stylish wall hangings in a room can provide a welcoming feeling.

CHAPTER 8 Marketing

Who to market to?

A condominium has a different target market than a duplex or a larger high-end home. Do not exclusively market to your target market, but more energy should be put into marketing to your target market. Defining your target is an important step in effective marketing.

How do you get the message out that you home is for sale?

Putting your home on the MLS will get your listing out to the masses. From the MLS it will go out to numerous real estate websites, like realtor.com, Zillow.com, homes.com and many more. Your realtor should at the same time contact local brokers and realtors via email or the phone with information on your listing and a broker's tour date. Make the local neighborhood aware of the sale through mailings and a yard sign with a flier box. Social media is also being used more and more and is another tool used to expose your listing.

What do you say in your marketing?

Buyers want to know if your home may be their next home and fits their search criteria. Not only do they want to know the basics (locations, size, amenities, schools, etc.) they also want to learn more about the property from the verbal description, still photos and virtual tours of the property. It is rare that a buyer will purchase a home without seeing it in person, although it is done on occasion, so the goal is to get the buyers excited about

seeing your home. It is highly recommended that a quality professional photographer does a minimum of a photo shoot of still photos and a virtual tour of your property that can be used in the marketing of your property. The right verbiage can also make a big difference, but it is a big mistake to puff a property and to misrepresent what the property offers. Puffing or overstating is not only unethical, but it may also cause mistrust. So, the right verbiage must relay to buyer all the positives and benefits the property offers to potential buyers accurately. Fair housing laws should be kept in mind when marketing a home

When to market?

There are rules that realtors must follow as to when and what they can market to the public depending on the local MLS rules. It is advised that you discuss this with your realtor. In general, it may be helpful to build some momentum before the home goes on the active public MLS with exclusive or members only exposure. Discuss with your realtor as to what marketing options that are available to you. Your realtor should also present a marketing plan prior to signing the listing agreement. The cost to market a home and the marketing assistance that a realtor and brokerage offer is one reason that home sellers hire a realtor.

CHAPTER 9 Finding Home Buyers for Your Home

How do you find buyers? Reaching buyers is primarily done by massive online marketing, social marketing and marketing to brokers since most buyers are represented by agents. Most serious buyers are continually looking online for new listings so reaching buyers is not difficult, its convincing them to put your home on the must-see list that is an art. According to recent National Association of Realtors® surveys, 95% of buyers used online tools in the home search process, and 87% recently bought their home through a real estate agent or broker.

The Importance of Photos and Virtual Tours

When you put your home on the MLS your listing will automatically be picked up by many popular real estate websites such as realtor.com, zillow.com, homes.com, etc. And on these websites, they will show the listing details and photos and videos if any. A picture is worth a thousand words, that is why listings with quality photos and videos get a lot more views than those they do not. Not only should these photos and videos be on the MLS and real estate websites, but a good realtor will distribute these directly on to social media, direct to brokers and realtors. Again, most buyers start and continue their search for that right home online, so the first impression is so important. Your best option is to discuss aggressive online marketing with a real estate agent who would like to list your home. You want to assure yourself that the agent has modern social media plans and outlets. You want to maximize your exposure, as well as generate interest from your target market. Along with property details, description and photos one of the first items that catches home buyers attention is the list price. So strategic pricing is also a key part of the marketing process.

CHAPTER 10 Showing Your Home our Home

How will your home or property be shown to potential buyers?

It is up to you as a home seller to determine how and when buyers will have access to view your home and property. Here are some of the more common ways buyers and realtors view properties: - Brokers Tour: Allows local realtors to view properties on a day set aside for agents to preview properties for their clients. - Open House: Allows the public to view properties on a given day hosted by a realtor usually on the weekend for a few hours for both Saturday & Sunday. - Private Showings: Appointments are made for a realtor and their client for a private showing of the home.

Safety during showings

Sellers should take steps to protect their personal property and to make the home as safe as possible for showings. Items such as medications, valuables, money and weapons should not be left out while the home is on the market. Items should not be left on the ground to eliminate possible trip hazards. Sellers typically are not home when buyers and or agents visit but if you will be home during a private showing it is advised that you never be home alone with the only the buyer, the agent should be accompanying them for the showings.

Keep the home clean during showings.

If the seller is living in the home keeping the home show ready is a chore, but the home should be kept as tidy as possible both inside and outside during showings. The home will show better and is safer when kept clean and tidy.

CHAPTER 11 The Purchase Off chase Offer Contr er Contract Process

It used to be fairly common that the buyer's agent would come into the listing agent's office to present the buyers offer in person to both the listing agent and the seller. The buyer's agent would present the offer then the listing agent would ask some questions if there were some clarifications needed. Questions like "why do you need 15 days to remove a property contingency or why do you need 28 days to remove a loan contingency?". After the questions then the buyer's agent would leave, and the listing agent would discuss with the seller how to respond to the offer. Typically, now the contract is delivered by email, listing agent discusses the offer with the seller, listing agent calls or emails buyer's agent if there are any questions then a response is sent to the buyer's agent via email. The listing agent will typically go over the purchase contract before receiving any offers to determine what are acceptable terms to the seller. Some of the terms can be relayed to the buyer's agent before they write an offer and some terms should not be relayed for negotiating purposes. For example, if the seller absolutely needs a rent back, then that should be relayed before the buyer writes an offer. At times purchase offers will require a counteroffer by the seller and sometimes multiple counteroffers go back and forth before acceptance or rejection. This negotiating process may take multiple days. So be prepared and let the process work, all you can do is negotiate smart and in good faith.

CHAPTER 12 Negotiating a Purchase Off chase Offer

Negotiating your home sale does not have to be intimidating. Simply put, fully understand what the buyers are offering, what it is that you want and then either accept, counter or reject the offer.

Is the offer reasonable?

What will make the negotiations difficult are unreasonable buyers or sellers. An unreasonable party is primarily due to not being educated or knowledgeable of the market and the sales process or greed. As realtors it is our job to make our clients aware of the market conditions, approximate home values, terms of the contract and the way deals are customarily handled. Having said that the deal is between the buyer and the seller, it us up to these two parties to determine what is reasonable and acceptable. • A motivated buyer wants the best deal, and you, the seller, want the best price and terms. • We are talking about large dollar amounts in a home sale making the negotiation part of the transaction a bit stressful. Emotions are always there during negotiations 34

so try to not let them cloud your decision on how to respond to an offer. Always keep focused on what you want and what is the best way to get it. • Market conditions will sometimes be favorable to you and sometimes not. Be up to date on market conditions and current home values when responding to an offer. Purchase Offer Contracts Home sellers are not expected to be familiar with real estate purchase contracts so usually home sellers rely heavily on the listing agent to help them negotiate a favorable contract and a contract that has a strong likelihood of closing. It is advised that sellers get as familiar with the purchase contract as much as possible before looking at offers, but in the real world I know that most sellers will not study the contract too hard before receiving an offer. Whether a seller is familiar with the purchase contract or not it is a realtor's duty to carefully go over the purchase offer with the seller before responding to it. Price is not the only item on the contract to accept, counter or reject, there are terms in the contract that may have a significant impact on how you respond to the offer.

Giving information to the buyer or buyer's agent.

Usually, home sellers and home buyers or buyer's agent do not communicate to each other before a purchase offer is presented. If by chance you do communicate with the buyer or buyer's agent be cautious in what you say. Something may be said that can affect the negotiation of the purchase contract. Be courteous and kind of course but if they start asking questions about the property or personal questions be cautious in your response. It is best to politely excuse yourself from the conversation and to let them know if they have any questions to refer them to your realtor.

On a side note, some real estate agents will want information from the listing agent. There is nothing wrong with a buyer's agent contacting the listing agent prior to writing an offer, matter of fact it is a good to communicate to see if there is something the buyers should know before writing an offer. A realtor for the seller should never tell a buyer or buyer's agent prior to acceptance what price a seller is willing to accept or something that will harm the seller in negotiating the purchase contract, that is against the code of ethics. Have a discussion with your agent so you can trust him or her on what should and should not be said to the buyer's agent prior to receiving an offer.

CHAPTER 13 Home Seller Tips A discussion of the items listed below should be had with your realtor prior to putting your home on the market.

Some Basic Home Seller Tips

- During the initial consultation with your realtor express your real estate wants, needs and concerns. - Do not wait until the last minute to get the home selling process started. Getting the home ready for the market may take longer than expected. Rushing may lead to mistakes and make the process more stressful. - Carefully review a home prep analysis report with your realtor. The decisions that you make on home prep items will greatly affect the sale and what you may net from the sale of the home. Review your staging options. - Carefully review the market analysis report with your realtor. The list price decision is one of the most important decisions in the home sales process. - Discuss with your realtor your disclosure obligations. Disclose material facts to the buyer. Disclose facts that will affect the desirability, enjoyment, usage and value of the home. Your realtor will go over the disclosure process. - Get property inspections done up front before going on the market. - Review the purchase agreement with your realtor prior to receiving an offer. - If selling your primary home thoroughly investigate your move to destination. Get mover estimates early in the process. - Set up your preferred method of communication with your

realtor.

CHAPTER 14 Why Some Homes Don't Sell or ar 't Sell or are Taken Off the Market Any home in any condition can sell for the right price and for the right terms. Homes do not sell for a variety of reasons, below are some common reasons why home do not sell or are taken off the market. • Price: A listing can be overpriced, and the home can still sell if the seller receives an offer and comes to terms with the fact that the home is overpriced and is willing to negotiate with the buyers. The home will not sell if the seller is unreasonable with the price. If the list price is way too high, there is a possibility that the seller will not get an offer at all. • Presentation: If the home shows poorly and is not priced appropriately to reflect the condition then the odds of receiving an offer is greatly reduced. There are some buyers who shy away from homes that "need work" period and some will consider a home that need work but not if the price seems unreasonable. Homes in poor condition decrease the buyer pool or demand. • Showings: The homeowner is not flexible with showings. Making showings difficult for buyers to view the home goes against all the work of presenting the home and pricing the home properly. If they can't see the home, they won't buy it.

• Marketing: Getting listing views online or other media to serious buyers is usually not the issue, it is how it is presented. Well-presented listings will get much more attention than poorly presented listings. Poorly priced and poorly presented listings may stay on the market longer and give the impression to buyers that there may be something wrong with the property. • Contingency: Inability to remove a buyer contingency (property, loan, insurance, etc.) may make a buyer back out of a deal and put a property back on the market. In this case the listing is usually put right back on the market. • Unreasonable Seller: Seller unwilling to negotiate reasonable terms and or price. • Meeting Price Goal: Sometimes home sellers will attempt to sell but if they do not get the price they want, they will take it off the market. Purely a money decision. • Life Circumstances: Sometimes circumstances change, and the sellers no longer can or want to sell their home and take the home off of the market. • Legal or Title Issues: Sometimes a legal or title issues arises to the point that the listing may have to be paused or come off the market. • Location: Sometimes a location makes a home less desirable thus limiting the buyer pool. Sellers should be aware of this and price it accordingly. • Market Shift: A significant market shift can reduce buyer demand and take longer for the home to sell. Some home sellers will take the home off the market and will wait for a more favorable market in which to sell.

CHAPTER 15 Listing Agreement eement& Getting Start & Getting Started Before Signing a Listing Agreement Below is a list of items that may pertain to your sale and are topics that you should discuss with your realtor before signing a listing agreement. Realtors do not give tax or legal advice but can advise you to seek legal or tax advise if they see something that may be or may lead to a tax or legal issue. If you have inherited a property that you are selling, doing a 1031 exchange sale, a short or a trust sale then there are additional steps that need to be taken and discussed. 1.) Tax Consequences of the Sale of your Home or Property. 2.) Title or Legal Issues Affecting the Transfer of the Property. 3.) 1031 Exchange Process / Investment Options if Selling Income Property 4.) Current Market Value of Your Property / Current Market Conditions 5.) Home Preparation for Sale Options & Cost Estimates / Staging Option Costs 6.) Strategic List Price Options 7.) Estimated Seller Net Proceeds / Estimated Closing Costs Including Commissions 8.) Pre-Marketing and Marketing of Your Property 9.) Listing Agreement & Purchase Agreement Contracts 10.) Basic Home Seller Rights & Duties, Broker/Realtor Duties and Responsibilities 11.) On & Off Market Sales Options 12.) Property Showing Options 13.) Safety Issues Associated with the Sale 42

14.) Personal Property Items to Include or Exclude from the Sale 15.) Basics of the Purchase Contract, Receiving & Negotiating the Purchase Contract 16.) Basic Sales & Escrow Process for Your Type of Sale 17.) Common Home Seller & Realtor Mistakes 18.) Disclosures, Inspections, Reports & Advisories 19.) Move to Destination if Selling Primary Home 20.) Estimated Time from Preparation to Close

The listing Agreement:

The listing agreement is an agreement between the home seller and the listing broker in which list price, start and end date of the listing, commissions, cancellation and modification rights among other terms and items are agreed upon. The listing agreement is what gives the green light to your realtor to start working on your sale.

Taking Action

-- We are here to assist further with your real estate needs. Simply call or email me if you simply have real estate questions or would like a consultation. You may also may a request via the QR code below. We have experienced and quality professionals and resources ready to assist you and would love to help.

Home Seller Request Form

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Rene David Martinez CA Real Estate Broker / Realtor License #01250176 Broker Associate with Compass

408-410-6645 (Cell Phone) rene.martinez@compass.com www.renedavidhomes.com Serving the Silicon Valley Real Estate Market Since 2002

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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. DISCLAIMER AND/OR LEGAL NOTICES: While all attempts have been made to verify information provided in this publication, neither the Author nor the Publisher assumes any responsibility for errors, inaccuracies, or omissions. Any slights of people or organizations are unintentional. This publication is not intended for use as a source of legal or accounting advice. The Publisher wants to stress that the information contained herein may be subject to varying state and/ or local laws or regulations. The reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, including advertising and all other aspects of doing business in the United States or any other jurisdiction is the sole responsibility of the reader. The Author and publisher assume no responsibility or liability whatsoever on behalf of any reader of these materials. If your property is currently listed with a Realtor, please disregard this notice. It is not our intention to solicit the offerings of other brokers. Printed in the United States of America

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