- What Marketing Matters?
- Step by Step time line
- Seller Closing Costs
- Staging To Sell
- What Is A Short Sale?
What Marketing Actually Matters?
Most sellers and real estate agents never stop to ask: “What marketing actually matters?” As it turns out, there’s a very specific answer!
Step by Step time line
Day 0 – Offer Accepted – This is when you’ve finally got a deal! The Buyers and Sellers have both agreed to the terms of an offer.
Day 1 – Escrow Opened – The earnest deposit is sent to the title company along with a copy of the fully signed contract. This should be done within 1 business day.
Days 1 – 10 – Due Diligence & Inspections – The due diligence period begins the day AFTER the contract has been signed by all parties. It lasts 10 days OR until the Buyer Inspection Notice & Seller’s Response form has been submitted. This Due Diligence Period is the time for home inspections, termite inspections, reviewing HOA CCR’s, commitment for title insurance, and learning anything else of interest regarding the suitability of the property.
For a traditional sale, the Buyers may request that certain repairs be made. This request for repairs must be submitted before the end of the 10 day Due Diligence Period. The Sellers then have up to 5 days to respond – either to agree, decline, or some alternative solution.
Appraisal – The contract includes a built-in safeguard that the property must appraise for at least the offer price or the Buyer has 5 days to cancel the contract. It is good practice to have the appraisal completed during the inspection period so all key contingencies can be removed as soon as possible.
Days 10 – 25 – Loan Processing – The final body of work is usually the completion of loan processing, underwriting, and then preparing the loan documents for signatures. Loan docs are to be at the title company AND signed 3 full days prior to closing (ie – loan docs need to be completed on Monday if the closing is scheduled for Friday).
Day 25 – Signing at Title Company – Buyers are to sign loan documents 3 full days prior to the scheduled closing date. This is also the time for Buyer down payment funds to be brought in either by cashier’s check or wire transfer. Cash buyers may wait until later. Sellers may sign as soon as the final HUD (settlement statement) has been prepared.
Day 30 – Recording – This is the finish line! After all documents have been signed and all funds received, the title company records the sale with the appropriate county and it is officially done! Possession and keys are delivered following the recording of the sale.
Seller Closing Costs
The whole list is spelled out below… A quick rule of thumb is to plan for closing costs to total about 7% of the sales price, or 10% if you’re giving 3% toward Buyer closing costs.
Brokerage Fee – My fee is 6% of the sales price – 3% for the other agent and 3% for my work. Additional savings may be available with FairFlex CommissionsSM. Whether you choose me or another pro, you’ll add thousands of dollars to your bottom line by paying a professional agent for top notch work versus mediocre results with a discount agent.
Owner’s Title Policy – This is a required title insurance policy purchase to insure good, clear title is being given to the new owners.
Escrow Fee – This is the title company’s fee for handling the sale. This fee is split 50/50 by Buyer and Seller.
Interest Through Closing – Loan payments are made in arrears (meaning the payment you make February 1st pays for owning the home in January). If you close on January 31, the title company will collect the interest for the number of days you owned the property in January as part of the proceeds going to the bank.
Taxes Through Closing – Property taxes are only paid twice a year (April and October). The title company will collect a pro-rated amount for taxes through closing. If the bank was collecting money every month to pay your taxes and insurance, you will receive a refund of whatever amount was in that impound account after closing (except in a short sale). They typically mail you a check a few weeks after closing. Remember to cancel your homeowner’s policy to get a refund for any remaining time on that policy, too.
HOA Fees – HOA fees can be paid by either party as negotiated. My experience is that HOA fees are most often paid for by the Seller, particularly when they are high.
In addition to normal HOA dues, there are three HOA fees commonly collected at closing. All three are appropriately called “transfer fees.” The first is a Disclosure/Documentation fee for sending the CCR’s to the title company. The second is a transfer fee payable to the HOA itself. The third is a transfer fee payable to the HOA management company (ie – the attorney’s office that runs the HOA).
HOA fees vary widely. Two examples: Cortina HOA has all three transfer fees named above, and they total $650 ($250,$225, and $175 in the order above as of 2013). Montelena HOA charges $275 Disclosure, $2500 for the HOA, $225 for the HOA management company, plus $151 Reserve contribution to bolster HOA funds – totaling $3151 in HOA fees for a sale!
Buyer Assistance – Many Buyers ask for (and need) Seller help to pay their closing costs. Depending on the type of loan they’re using, Buyer closing costs can easily add up to 5% of the purchase price. Most Buyers who need the help ask for 3% to help them, and most Sellers find that it makes sense to cooperate, particularly if the Buyers offer close to the full asking price.
Home Warranty – This fee is also negotiable, but Buyers often ask the Sellers to pay for it.
Miscellaneous – There are a number of other little fees such as Recording Fee to the county, Reconveyance/Tracking Fee to ensure that the bank releases your note, courier fees, etc. They’re typically less than $250 all together.
Staging To Sell
Staging To Sell: how to stage your home to sell fast and for top dollar!
What Is A Short Sale?
