An informational source for people who are relocating, with a particular focus on moving to the Carlsbad area of North County San Diego, with advice, guidance and true stories to help you on your way and make it a great journey, from a REALTOR® with plenty of personal (4 major moves, most recently from Boston to Carlsbad, California) and professional relocation experience. Are you running into problems selling your home? Need to find a new one quickly? Never moved before and haven't a clue? You'll find some great tips on how to solve your relocation issues here. Or ask me a question any time and I'll share some solutions or tell you where to get more information.
First Time Home Sellers - Are You Worried About Security and Your Possessions?
A common concern of sellers when they list their home, especially if it is for the first time, is security.
Sellers worry that something may get taken, or damaged, during an open house. Or when the home is being shown by another agent. This is a normal concern and is to be expected.
Buyers will not see your home on their own (except during an open house, but your agent will be there) and will need to be accompanied by a licensed agent who can access the lockbox. So this adds some measure of security. While I do not believe it happens often, there are times when a homeowner has had an item taken or damaged.
The best way around this is to make sure that any items that are valuable, precious, easily broken, personally meaningful, or irreplaceable are packed away.
Since you should de-clutter or de-personalize your home in order to have it show its best (even if it makes it feel that it is NOT your home anymore), putting away those things that are important to you will give you the best measure of security.
First Time Home Sellers - What IS a Lockbox For and How Does it Work?
Once you have hired an agent, made the big decisions about pricing, got your home de-cluttered and neatened up, you are ready the big time - showings.
We talked about showings in a previous article (see Article 5 below). But what ARE lockboxes for and how do they work?
Lock boxes are very common in some parts of the country, but not in others, so this may not be relevant to your market.
Here in my area of California we use electronic lock boxes provided by Sentrilock. The boxes hold a key to the house and are attached to the front door, the hose bib or some other place where they are easily accessible. The advantage is that the keys are kept safe and can only be accessed by a license agent who possesses a key card (with their personal pin). The card is inserted in the box, the agent's code must be entered, and the lock box opens so the key can be accessed.
The advantage is that maximum flexibility for showings is allowed since the key is available to a licensed agent. You can, of course, request that agents call ahead and/or make appointments, but you do not need to be home for them to show the property.
The other advantage is that the lock box electronically records who has accessed the property and when, so your agent can keep track of who has shown the property.
First Time Home Sellers - Need to De-Clutter? (Part 15)
We're going to step back a bit and talk about some things that should occur early in the process of selling your home, or preparing to sell your home.
If you have been in your home for any length of time, and especially if you have a hard time throwing out things, you likely have a bit of personal stuff...some of which you want, but possibly some you don't. One of the biggest enemies to selling your home is CLUTTER. That does not necessarily mean JUNK. But so often people have lots of stuff around that is part of their daily living - collections, papers, magazines, kids toys, personal photos, and so on. And this makes it hard for prospective buyers to look at your home from an impersonal perspective and consider it for themselves. The stuff needs to go somewhere.
Having lots of stuff littering your counter tops in the kitchen and baths, and on tables, also contributes to a feeling of less space. And since kitchens are so important to buyers, you want this area to be the center of attention for the right reasons, not the wrong ones.
Another good reason to rid yourself of all the personal trappings of living is that your agent, or a professional photographer, will be taking pictures for the MLS, ads and marketing. Clutter in the photos will NOT impress buyers and may make your photos look even worse, since photos tend to make rooms look smaller anyhow.
Here are a few thoughts on how to deal with your stuff:
Pack it up and put it away - in your garage (unless it, too, is cluttered). You are moving anyway, so why not get started on your packing early?
Rent a storage unit for boxes, books, extra furniture, etc.
Rent a PODS (portable on-demand storage) - load it up and keep in your drive (but this adds to a cluttered look in front) or have it taken away for storage
Call 1-800-GOT-JUNK? to take away all the stuff that you don't want any more but which can't go out in the trash. They will come in, give you an estimate, and take just about anything. It's a great service.
Have a garage sale - this can work, and maybe make you some money. But consider how much time it takes for the return. And unless you sell everything you STILL have all the stuff
Donate to the Salvation Army, Goodwill, a local church or community center - clothing, small appliances, and household goods are especially prized
First Time Home Sellers - Take it or Leave It? (Part 14)
The time for your move has come, finally. The contract was signed, the inspection completed, the repairs request negotiated, the repairs taken care of, the buyer's loan was approved and closing is next week. The process has gone well and you are excited about your move.
An issue that can create problems is the matter of the sellers personal belongings vs. fixtures in the home. The question is...Do I take it or leave it?
In general, PERSONAL PROPERTY are those things that are NOT ATTACHED and which you are expected to take with you when you move. REAL PROPERTY, which is land, trees and plantings, and the house (i.e., in general things that are not movable), and includes items that are attached to "real property" and which, normally, remain with the house for the buyer. If is not uncommon for issues to arise with regard to these items, since sometimes sellers want to take things that really should be left, or vice versa.
When you are establishing the listing contract, one matter that should be discussed is if there are any items that are to be excluded, such as that custom chandelier that you had made which will look great in your new home. I you want to take the washer and dryer then you need to communicate in the listing that these will not remain (appliances are often a point of contention between buyers and sellers, and protocol varies from area to area as to what normally stays - in some places it is common that sellers take the refrigerator, in others the opposite is true).
Any points of contention should be agreed on up front in writing with the contract. If you planned to take the washer and dryer but the buyer wants them, this should be agreed on. And if you agree to leave them, then you need to do so. Don't take something that was agreed to be left, or which rightful should stay with the property. Doing so is a discourtesy to the buyer and could cause you some legal problems. And I have heard of cases where the seller took items that they had agreed to leave, and the buyer refused to close unless the items were returned or replaced.
So what do you take or leave? Those things that are rightfully yours, as personal property, should go. And further, as a courtesy, make sure the house is in broom clean condition and the trash is all removed. Remember what it felt like it felt like to you when YOU were the buyer?
First Time Home Sellers - Take Care of Those Repairs (Part 13)
As things move along in your first home sale transaction, you will need to think about the repairs that you agreed to do (if you didn’t, well, you can ignore the rest of this).
If you agreed with the buyer that you would take care of some repairs, you likely said this would be done before closing (and probably BEFORE the final walk-through). The buyer will want to evaluate what was done to make sure everything has been completed to their satisfaction (as they have a right to do).
Don’t waste any time, since getting in the appropriate repair person can take time. You might even want to get several estimates so you can pick the one that works best for your budget. There may be minor things you can fix yourself (unless you agreed it would be done by a professional, which buyers generally will request) but other repairs should be taken care of professionally – plumbing, electrical, etc. You will want to do this so you have documentation from a licensed tradesman and there is less room to quibble about whether the work was done correctly.
Make sure you take care of everything you agreed to, and have it done by the time the buyer schedules the walk-through. If this is impossible due to a short time frame, or the inability to arrange the work to be completed in time (some tradesman are VERY busy), etc., you will need to negotiate the work with the buyers. They may be willing to wait until after closing if absolutely necessary (but expect that they will want to withhold some funds). However, it is far better to have all the work done so the buyers can inspect it and sign off that everything has been done to their satisfaction.
Document everything that was done, including your phone calls to arrange for estimates, the estimates themselves, etc. Keep a copy for your records and make sure the buyers get copies of invoices.
First Time Home Sellers - Keep an Eye on Those Dates (Part 12)
As a first time home seller it’s important to pay attention to the dates in your transaction (and if you are relocating, dates probably become even MORE critical).
So why keep an eye on those dates?
In typical contracts, dates are used to define when certain things are to take place. And both parties to the transaction are expected to adhere to them. Often there can be repercussions if you do NOT follow the dates; in fact the buyer could then have the right to walk away from the deal.
The other practical matter is allowing dates to slip by just delays the transaction itself, a problem for both buyers and sellers.
Also, it's just plain courteous to respect the dates that have been set, apart from any legal requirements in the contract. You should do what you say you are going to do, when you say you are going to do it.
I expect you recall all the dates that came up when you bought your first home, so none of this should surprise you. But in case you have forgotten, here are some dates that you should keep in mind (and your agent will be there to help keep you on track as well). These may vary depending on where you live and the nature of your particular contract, but most of these are applicable to California:
Offer expiration
Date of home inspection (may simply be during the due diligence period)
Date by which buyers must apply for a loan
Date to provide proof of funds for the purchase
Date to complete due diligence
Date to receive loan commitment
Dates of any counteroffers and responses (may not be defined)
Dates of repairs requests from buyer (again, may not be defined in your transaction)
Closing date
Other dates may apply, so be sure you are aware of what they are. A CALENDAR with all the dates on it is a good way to keep track visually. Put them into your Palm, your Blackberry, Outlook, or elsewhere to keep them top of mind (and use the alarms!).
First Time Home Sellers - Look out for Sabotage (Part 11)
Sellers - especially first time home sellers but certainly applicable to ALL:
I did a follow-up on my recent post here about my warning to sellers and wanted to bring that to your attention. Some of my recent experiences showing homes has made it clear to me that there may be some SABOTAGE happening to some sellers, without them knowing it.
Take a look at my post Is Your Home Sale Being Sabotaged to learn more about some things to watch for. Not to scare you, but to make you aware, as a consumer, of issues that may arise and impact your ability to sell your home quickly.
First Time Home Sellers - Repairs Requests (Part 10)
In my latest post I talked about the due diligence period, during which the buyer (under most circumstances) will have a home inspection done. This tends to cause some anxiety on the part of not only the buyers, but the sellers as well.
You probably had your own inspection when you bought the home so you will recall what this was like
And you will also likely remember what issues came up in the inspection. Some may have been taken care of by the seller, or yourself after you moved in. But you will probably have some concern about either the same issues or possibly new ones arising.
Or perhaps you know of other things that have become issues for YOU through wear and tear, deterioration, or simply aging (a leaky sink, an old roof).
And what about new issues being discovered that YOUR inspector did not find? The fear of the unknown can cause you some anxiety.
As I have said repeatedly, there will also be some sort of defects or repair issues that arise in a home inspection, so prepare yourself for this. Don't angst over it for too long, but expect there will be problems.
Secondly, the issues may be minor and the buyers may be fine with everything as it stands. You can breathe a sigh of relief.
But often the next hurdle in the sale of your home is the request for repairs:
Buyers commonly will ask for certain defects to be corrected by the sellers during the transaction
This may be submitted on an actual form (here in CA the Request for Repairs or RR) or simply in writing, depending on state requirements
They may request that all the problems be fixed (unrealistic) or just the more serious ones (such as appliances that do not work, electrical plugs that are wired backwards)
Buyers may ask for a price reduction in lieu of repairs, in an amount they feel is equivalent to the cost of the repairs (this may be based on estimates from professionals - it SHOULD be - or simply a number they are pulling out of a hat)
You may find some buyers asking you to take care of what YOU consider to be the most minor issues (a small hole in a screen, a cabinet door that does not stay shut). Don't be offended by this, if you can help it, but consider the dynamics of the situation - buyers want your home but have learned it has defects. Like anyone buying a product, they want it to be defect-free. While this is NOT reasonable, it IS often how buyers respond. Think back to YOUR inspection and how you felt when the inspector told you about all the defects and repairs. IN a buyers market it is far more common for buyers to be very picky simply because they can.
As in the offer, Request for Repairs are negotiable, and you have several options:
1. You can agree to the requests by the buyers and fix the problems (best to have this done professionally and to provide documentation, particularly for plumbing, electrical or similar matters where a licensed person should do the work)
2. You can agree to the price reduction or credit back at closing, or YOU can propose this in lieu of taking care of repairs (if you are in the midst of relocation this may be easier for you instead of arranging to have things repaired)
3. You can negotiate WHICH repairs you will fix, OR a different dollar amount than that suggested by the buyers
4. You can decide to fix nothing, or to not provide a credit or a reduction in price
Discussion continues until the parties agree. Some buyers will decide to walk away if they don't get what they want, or in the case of serious flaws. You will need to consider whether some things really ARE problematic and worth fixing in order to sell your home. The goal is to reach a happy medium where both parties are happy about the negotiations.
Congratulations, you made it through the negotiations, have agreed on a selling price, terms and conditions, and the closing date with the buyers and now have a signed, and binding, legal contract. So what happens next?
The next phase is one of due diligence on the part of the buyers. This may vary from state to state, in terms of the issues the buyers investigate and the timing (here in CA, for example, the default time frame is 17 days, but this is negotiable; in MA there is a range of time before the Purchase and Sale, or P and S, is signed). A critical piece here is the home inspection by the buyer (assuming they do one), which may include other inspections as well - structure, chimney, pest, water, lead paint, and so on. As a seller you MAY be required to provide a number of disclosures to the buyers to review during this period, as is true here in CA (e.g., the Transfer Disclosure Statement or TDS that you complete about your home). The buyer may also investigate insurability of the home and natural hazards, and a home appraisal may occur in order for the loan to get approved.
No matter what is required, make sure you do what is necessary within the time limits so you do not hold up the progress on your transaction - failure to adhere to the time frames that are agreed on CAN put the transaction in jeopardy. Your agent will assist you in this process, but some of the documents may be provided by other sources (again, depending on the state requirements). Make sure you inquire about any forms you do not understand before you sign them, and keep copies of everything.
Perhaps the biggest issue that may arise during the due diligence period results from the home inspection (you remember doing that, don't you?). Because this is a significant part of many transactions, and a time where some deals fall apart, let's address this is a separate post. Stay tuned.
First Time Home Sellers - Responding to Offers (Part 8)
You've received your first offer on your home (woo hoo!!) and now you need to respond to the buyers. What are you going to do?
I won't tell you what to do since each situation is unique, as is each offer, so you need to ponder the points in the offer that are most important to you. What is acceptable? What is not? Is there a way to find a common ground on which to agree?
Here in California there is a form (Counter Offer No. ___, or C.A.R. Form CO) used to communicate a counter offer. There may be one in your state, too, or it might be done verbally, as it often was in MA. If there is no form or requirement to put it in writing, putting YOUR response to the buyer in writing is smart, even if you make a copy of the offer, make the changes and use that.
Here is what you can do:
1. You can accept the offer as it is (in a sellers market you might get a full price or better offer; in today's market this is unlikely). But the offer MIGHT be good enough for you to accept ALL the terms and condition.
2. You can accept some of the terms and conditions, but not all, and so you make a counter offer with the terms YOU are proposing (say a different price). I generally advocate making a counter, even if the offer is so low it is laughable. Who knows what the buyer's might do?
3. You may reject the offer. Some people just don't respond, as the offer expires after a certain time (either set by the buyer or by default - in CA it is 3 days). Personally, I think this is just plain rude - the buyers made their offer in writing, even though it might be ridiculous, and they deserve a response. I recommend you put your rejection in writing - the bottom of Page 8 of the CA form allows you to do this.
The process of responding is pretty easy. Just make sure you are clear as to what terms and conditions have changed. But you will find, as first time sellers, that making the decision of HOW to respond is not so easy. Just another reminder - DON'T TAKE IT PERSONALLY.
Your agent will provide the counter offer in writing to the buyers' agent. The buyers can then respond to YOUR COUNTER, with the same choices that you had. The process continues until there is a meeting of the minds and everyone agrees on final offer terms and signs the contract. [I have seen some negotiations over in a few hours, or less. Others can take days or even a couple of weeks.]
First Time Home Sellers - It's Offer Time (Part 7)
Great news! Your REALTOR called to tell you that an offer has come in and needs to be presented to you.
Some Listing agents will do this in person, others may simply call you, email you the highlights (price, closing date, down payment, etc.) or fax you a copy of the offer. However it happens (and don't be afraid to let YOUR agent know how you would prefer the discussion to occur), you should be pleased to have your first offer, especially if the property has been out there a while or you have timing issues with a relocation.
What next? Well, the agent will review the offer with you and you must make a response (this might be done verbally but oftentimes the response is written).
Let me caution you on a few things (I will assume you are in the market most folks are...a buyer's market):
1. Be prepared that the offer will NOT be full price and may be a lot lower than you would like or would be able to accept.
2. Be pleased to have an offer and prepare to discuss the terms and conditions that have been outlined (price, closing date, financing, any concessions, dates)
3. Keep your emotions in check. It is NOT the time to get angry, depressed, or insulted. The buyers have made you a proposal and you get to decide how to respond. You need to be objective and focus on the ISSUES not the EMOTIONS (remember how YOU felt as a buyer submitting YOUR offer, and how you hoped to get a response?)
4. Consider the issues that are most important. Is it price? The date of closing? Are there things you can accept if other concessions are made?
5. I would NOT reject the offer, even if it is low. Make a counter, even at or close to full price. You never know what the buyers might do. And don't be discourteous like some sellers and not respond at all (remember being a buyer yourself?)
6. Some sellers decide to wait and see if they get a better offer. Well....could happen, but so many times the first offer IS the best. And the longer the property sits on the market the more likely any other offers will be lower.
You probably have time to consider the terms and decide how you want to respond (check the date of the offer expiration so you don't miss this). The buyers will likely appreciate a response fairly quickly. Dawdling over it does not do anyone any good. It's YOUR decision but discuss this with your agent. Keep in mind that you and the buyers want to meet on happy grounds...there is no winner or loser.
First Time Home Sellers - Make Yourself Scarce (Part 6)
A couple of other points about showings. This may not be obvious to you now, but if you think back to the time you spent as a buyer, you will likely agree.
PLEASE, make yourself scarce when a showing is taking place. And I don't mean sitting in a corner of the room or hanging around outside on the patio. In order to maximize the opportunity for the potential buyers, you need to NOT BE PRESENT at showings.
I know you will be anxious to hear what buyers have to say
And want to share information about your wonderful home
And feel a need to answer questions
Or provide details about all your improvements
And perhaps you are nervous about them walking around your home even though they ARE with an agent (BTW if you are working with an agent do NOT allow unaccompanied buyers in the home - call your agent right away if someone stops by).
Remember how YOU felt when you wanted to tour a home and the sellers were there? Didn't you feel uncomfortable? Weren't you uneasy about walking around, opening closets, peaking behind closed doors, and making comments about the home, the decor, the yard? Didn't you sometimes just decide to leave?
Please allows buyers to take their time looking at your home and imagining themselves living there. They can't do that when YOU are there. And any questions they have can be relayed to YOUR agent through THEIR agent.
The OTHER REASON to not be present is that you may say something, unwittingly, that may jeopardize your ability to negotiate the best deal possible. Let your agent handle the sharing of information so that everyone gets the same message.
First Time Home Sellers - Don't Forget These Questions (Part 3)
Now that you are going to be a First Time Seller, there are some important questions to ask at the beginning of the process, perhaps before you make the final decision on who to hire.
If the agent you are talking to does not bring these up, I recommend YOU do. This is NOT an all-inlcusive listm but some important issues to discuss and understand.
How will showings be handled? There are a number of options, depending on your preferences, the agent, and local protocol.
There may be a lockbox with a key, allowing acess to any agent with a buyer (easiest)
Appointments may be required with a call to you and/or the agent (even if there is a lockbox), or at least some sort of advanced notice (1 hour for example)
The listing agent may accompany all showings
Agents who want to show the property must pick up a key at the brokerage first (most restrictive)
Should I leave the house for showings?
Should hours for showings be restricted and if so, to what and when?
Being too restrictive in the availability of your home for showings, no matter what the reason, may frustrate agents and buyers and you might lose them.
This is especially true if buyers are relocating and are not from the area, and thus have limited time to look at homes.
In a buyer's market, and with lots of competition, you cannot aford to make this difficult. Remember what it was like when YOU were a buyer?
What type of signage will there be? Will there be a brochure box on the sign?
How will my home be marketed, in print AND on the Internet?
Will you hold Open Houses, for the public AND for the local agents? When will these be? How often? What hours?
How long a listing agreement do you want (be reasonable on this, especially given the average marketing time, but don't allow one that lasts for an extended period - you can always renew if needed)
What happens if I want or need to cancel my listng contract?
What is your expected commission? Know that COMMISSIONS ARE NEGOTIABLE. Undertsand what you are getting for the fee you willl be paying - the knowledge, training, experience, and the services you will be receiving. A good agent is well worth the money, but a bad agent is not.
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Sellers worry that something may get taken, or damaged, during an open house. Or when the home is being shown by another agent. This is a normal concern and is to be expected.
We're going to step back a bit and talk about some things that should occur early in the process of selling your home, or preparing to sell your home.
As things move along in your first home sale transaction, you will need to think about the repairs that you agreed to do (if you didn’t, well, you can ignore the rest of this).
Great news! Your REALTOR called to tell you that an offer has come in and needs to be presented to you.
Now that you are going to be a First Time Seller, there are some important questions to ask at the beginning of the process, perhaps before you make the final decision on who to hire.