Do you want to sell Real Estate in Souther CA? I have cash buyers and investors to buy your home today as well as dozens of eager pre-qualified buyers looking for real estate in Southern CA. All price ranges, areas, condition and types of homes including condos, townhouses, single family houses, income, fixers or land. I can sell it. And, I'll list and sell your Real Estate for a lower commission than you might think. Call 310 975 5139 for details.
Short escrows, fixers, as-is, probate, I'll sell it. No equity - no problem. Behind in your payments? I have short sale negotiators and experience dealing with the foreclosure process. Need a lease back after close of escrow? Can do. I'll make sure your home sale transaction goes smoothly and handle whatever comes up including repairs, disclosures, and inspections. No Surprises - No hassles.
Make sure that you also sign up for my free "Real Estate Market Snapshot" interactive on line report. You'll be able to see recent home sales in your neighborhood, current listings, price reductions, days on market, MLS info and more information that you will find helpful. Follow the pricing tips below, read our overview of what the process is when you sell real estate in Southern CA and take a look at our special programs and save money on commissions. Keep your equity dollars in your pocket!
It takes more than a yard sign and an open house to sell your home today. Buyers are armed with more data than ever before and they all want a "deal". Any defects in a home will be exploited by savvy agents to drive the price down. Standard equity sellers are competing with short sales and bank owned foreclosures. Deep pocket flippers have entered the market and are purchasing homes with deferred maintenance or needing rehab and are offering turn key ready properties.
The good news is that while prices are down, home values are now holding steady and desirable homes that show well and are priced right are selling quickly, often with multiple offers. Here's our guide for homeowners. We hope to cover everything you need to know to sell Real Estate. Please call 310 975 5139 with any Real Estate questions or to buy or sell. Scroll down further on this page for our special offers for sellers and to save money on commissions. As there's a lot of paperwork involved in the selling process, let's start there. Following the over view of the paperwork, you'll find a discussion of marketing, pricing and other information you'll need to know to sell your home.
THE LISTING AGREEMENT AND AGENCY DISCLOSURE
In order to "list" your property with a Real Estate Broker, you will have to sign a listing agreement. There is really no such thing in CA as a verbal agreement to sell Real Estate. The agreement or contract must be in writing. The agreement will cover the listing price, the beginning and ending dates, whether there will be a lock box, a yard sign, the commission, whether the property can be placed in the MLS, and other terms such as what is included in the sale (refrigerator, washer dryer) and what is not. (Items attached to the home such as the oven and fixtures are deemed to be included.) Part of the listing agreement is the Seller Advisory which informs sellers as to various items to be aware of.
Commissions are 100% negotiable and are not set by law. The commission you agree to pay the listing agent will be split with the agent representing the buyer (called the selling agent) per the amount stipulated in the listing agreement. Many sellers will negotiate a lower total commission if the listing agent also represent the buyer (which is allowed in CA if it is disclosed in writing to all parties).
Another common question sellers have is whether they can cancel the listing agreement without any penalty. Although most reputable real estate brokerages will allow clients to cancel under certain circumstances if they change their mind, it is nest to get that in writing. Otherwise, you may have a disgruntled new agent or desperate broker trying to receive compensation if you choose to cancel.
As part of the listing process, sellers will also be asked to sign an Agency Disclosure. The AD states that a broker may represent a buyer, a seller, or both. When you receive an offer from a buyer, the agent representing the buyer will also present their own AD from.
THE OFFER, COUNTER OFFER, AND PURCHASE CONTRACT
Once your home is officially on the market for sale, typically meaning that the home listing is active in the MLS, you may start to receive "offers". As with all things Real Estate in CA, the offer must be in writing. Almost 100% of the time the offer will come in on the CA RPA form but that is not a requirement although it is highly recommended as this is the format that the buyer's lender will be most comfortable and familiar with.
As a seller, you will most likely be most fixated on the offer or purchase price. While that is extremely important, your agent should also draw your attention to other relevant terms such as repairs requested, possession, financing terms, seller concessions, arbitration, liquidated damages and many other points.
As a seller, you will have the opportunity to counter any offer you receive. Sometimes your counter may be on price or terms or both. Just as the seller does not have to respond to an offer, the buyer does not have to reply to a counter offer. There is no limit to the number of offers and counters that can go back and forth. Each principal has their own negotiating style. As a seller, you may also receive multiple offers. You do not have to respond to multiple offers on the same terms.
Once all the parties have agreed to price and terms, you have "acceptance" and the RPA or contract will be forwarded to the escrow holder.
ESCROW
Typically the listing agent will select the escrow holder. Escrow is supposed to be a neutral third party - and they usually - are, but agents like working with the escrow officers they know. Escrow is typically a source of revenue for the Brokerage. Many brokers own their own escrow companies and typically they operate as a separate but affiliated business to the brokerage. That relationship will need to be disclosed as part of the transaction and you may even see it as part of the escrow instructions.
With the increased demands from lenders, investors (authorizing short sales), and REO asset managers as well as RESPA stipulations regarding HUD -1 statements, it is increasingly important to utilize the services of experienced escrow officers and not be searching for the lowest priced.
TITLE
As with escrow, the seller and listing agent usually select the Title Company. (Please note - in Northern CA, the title company is often the escrow holder while in Southern CA, they might more typically be separated entities.) In addition to providing the Title Insurance, which the buyer's lender will require, the title company will work with escrow on the legal description, preparation of the deed, other issues regarding the granting of clean title, and the actual recording of the deed.
INSPECTIONS
Even if you are selling you home "as-is", or if your RPA stipulates no repairs, the buyer still retains the right to do inspections and even to cancel the purchase contract based on what those inspections reveal. The buyer will almost always have a home inspection which will provide them a written report of major systems. If the purchase contract stipulates a termite inspection or of the buyer pays for it, there will be a termite inspection. Some buyers these days may also have tests for radon, asbestos, lead based paint, mold, soil, sewer lines, or other potential hazards and defects. The buyer in most instances will provide the written reports to the buyers. If the property is not being purchased "as-is" the buyer may make a "request for repair" or ask for a credit.
Sellers are required to provide a number of disclosures as part of a Real Estate transaction. Your agent should be well aware of these and advise you accordingly. Please take these disclosures very seriously. If there is a defect that you are aware of and do not disclose, you may have future liability. We always advise sellers to be truthful, careful, and over disclose but do not speculate. For example, if your home was built before 1978, while it may very well have had lead paint, unless you specifically know it does, don't guess and say yes it does. On the other hand, if you had the older paint tested at any point and are aware that there is lead paint, by all means disclose, disclose, disclose. The same also goes for asbestos, mold, radon, leaks and just about any defect you can think of.
As a seller, you will be required to fill out a Transfer Disclosure Statement (TDS), Seller Property Questionnaire (SPQ), Lead Paint Disclosure (FLD), Water Heater and Smoke Detector (WHSD), and other forms as deemed appropriate by your agent. If the property you are selling is a condo or townhouse or covered by CC&Rs, you will also have to disclose that fact plus provide any relative documents to the buyer. The buyer will also receive other disclosures and reports that will come from third parties. These include the Preliminary Title Report (Title Prelim) and Natural Hazard Report (Zone report). In Redondo Beach, the buyer will also receive a building report. The buyer may also ask you to cooperate with providing a CLUE report which covers insurance claims. Lastly, the brokerage representing you may have their own disclosures for you to sign. Don't despair - this is all a lot easier than putting together your tax returns and your agent can help you with the process. Just make sure you disclose everything.
REMOVING CONTINGENCIES AND CLOSING
After approximately 17 days (sometimes longer, sometimes shorter), the buyer will have to remove their contingencies. That means that they have to commit that they have concluded all investigations and inspections, appraisal, and that their loan has been approved. Once a buyer removes contingencies, the buyer may lose their earnest money deposit if they default. As such, it is often difficult to obtain the contingency removal. Your agent's skill in negotiating will play a huge role in that endeavor. Once the contingencies are removed, almost all sales go through.
After the buyer has removed contingencies, their lender will prepare the loan documents and forward them to escrow. The buyer will sign the loan documents and wire their money to escrow at which point the lender will also wire funds. Once escrow has all the money, they will coordinate recording with title. Once the deed is recorded, and depending on what was negotiated in the RPA relative to possession, the buyer will receive their keys and be able to move in.
CHOOSE YOUR AGENT WITH CARE
The single biggest mistake most sellers (and buyers) make is not selecting the right agent for their situation. Often we see homeowners gravitate to the big name "top producer" or at the other extreme a family friend or relative. In some instances those are great choices. In others, that decision may lead to costly mistakes, poor real estate practice and in the worst case litigation after the close of escrow.
The agent you choose should be a good fit for your situation. That means someone who understands and can support your goals in the sale, who knows your neighborhood and who can reflect your values while getting the job done. This is different for everyone.
SAVE MONEY ON COMMISSIONS
If your house looks great right now or is too far gone to refresh and you are willing to price it to sell now, I'll reduce the commission listing rate to 4.5% or as low as 4% if I represent buyer and seller. Why try to FSBO or waste money on higher priced agents? (Offer is for standard equity sales only. Short sale commissions are set by the bank.)
PRICE YOUR HOME TO SELL QUICKLY
Here's the information you'll need to price your home to sell quickly. You don't want your home lingering on the market. There's no upside - a foreclosure or desperate seller can ruin the comps and cost you tens of thousands of dollars or more. Price your home to sell fast, like in ten days or less and don't chase the market down. While you can research most of this yourself, realistically you will need a real estate agent to pull some of it together for you. These tips relate to pricing your home to sell now and are not offered as a substitute for the work of a licensed real estate appraiser.
1) Home Price per square foot of recent closed sales in your neighborhood - all property types.
2) Home Price per square foot of homes currently in escrow (MLS status: pending/backup).
3) Home Price per square foot of current active listings in the MLS in your neighborhood.
4) Recent sales price of the most similar homes to yours for the last 6 months. What you really want here is the MLS printout from a real estate agent for the comparable homes. The reason you'll need the MLS printout from a real estate agent is because you want to see if there were any seller concessions (which affect the selling price), the type of financing used to buy (will be covered in a future blog post) and other pertinent information to the sale.
5) Average and median sales prices for homes sold or for sale in the above categories.
Once you have the information indicated above, you or your real estate agent should calculate the absorption rate for homes for sale similar to yours. In other words, if there are 2 similar homes sold per month and there are 10 similar properties on the market, there is what real estate agents consider to be 10 months of inventory and the absorption rate is 2 homes per month.
The next step is to list the compensating factors that may make your home more valuable when you sell. Examples of compensating factors would be 2 fireplaces (family room and master bedroom), rather than just one; recently remodeled kitchen with stainless appliances and granite counter tops; new hardwood floors; view; large lot. These are factors that will add to the value of your home and the selling price.
That part of the exercise may have felt good, here's the hard part in putting a price on your home. What didn't you like about it when you bought and what needs to be fixed? Examples would be busy street; original roof needs replacing; high HOA dues (condos and townhomes); non permitted additions; small family room, etc. Items that are not fixable, such as a small room will definitely affect the sales price of your home more than repairs or updates that can be made.
Both parts of this exercise are highly subjective as to home prices and there are no absolutes. An experienced real estate agent can help you determine how much to add or subtract to what your home may sell for based on compensating factors.
Lastly, you should review the price reduction history of homes currently for sale, recently sold, and currently active. Again, you may need the help of a real estate agent to put this information together.
If you or your agent do this exercise diligently, you may notice some trends such as:
- many homes have only sold after (multiple) price reductions.
- in a soft market, the price per sq ft for pending/backing MLS listings is often less than the sold price per sq ft.
- there are fewer homes going into escrow than are coming on the market.
- after reductions, homes are selling for 1-3% below the last MLS list price.
- homes priced below the market may sell for above the MLS list price and in fewer days.
We have also observed that when buyers feel the home is priced right, whether after a reduction or initially, they will make offers closer to the listing price in the MLS. Additionally, if a buyer feels that a certain property is a "deal", they will be more likely to hang in through the escrow. Want proof? Talk to anyone who has bought or sold a short sale.
Remember, whether you want to buy or sell a home in Hermosa Beach, our "Market Snapshot" report will provide a lot of the information we have suggested you gather. Click here to get started on gathering home pricing info and home values.
LISTINGS LAUNCH - HERE'S WHAT WE DO TO SELL YOUR HOME
Recent studies by both the National Association of Realtors (NAR) and the California Association of Realtors (CAR) have concluded that almost 90% of buyers primarily search online for their new home. Very few rely on newspaper ads, yard signs, open houses or even their Realtor to find the property they will buy. In other words, the buyers do their research independently and use the agent to write up the offer and guide them through the transaction.
In this environment, it is very important to be certain that your home will prominently stand out and be found when your buyer is doing their online search.
As soon as I launch your listing, it will be featured on the following sites:
www.realtor.com
www.trulia.com
www.craigslist.com
www.zillow.com
www.socalistings.com
www.redfin.com
www.ziprealty.com
www.listingbook.com
Additionally, my "tweets" (www.twitter.com/) go out to the twitter community with real estate updates daily. You can follow "socalistings" on Twitter or become a fan on Facebook.
YouTube
But it takes more than just featuring your listing on the above site to really make your home stand out from the crowd. I also feature a video of the home (searchable through Google) on YouTube. Here's an example: Go to www.youtube.com and do a search for 18425 Mansel. You should find the video we did for that listing. Buyers did and I received 6 offers for that property. (Previously, it was listed with another agent who couldn't sell it.)
YOUR HOME'S UNIQUE WEBSITE!
Your home has its own street address, why shouldn't it have its own web address too?
We create unique URL websites for each listing. Check out an example: www.1046palm.com.
While you may see other Realtors do this, we have never seen anyone else drive traffic to those sites by having them displayed next to Google search results for Real Estate in the general area.
In other words when we have a listing in Hermosa Beach, your house's website will be a search result for anyone looking for Hermosa Beach Real Estate or dozens of similar search terms. This happens whether the person is on Google's site or just using the Google toolbar for search in their browser.
Reverse Prospecting
There are dozens of qualified Buyers working with other agents have logged their home search on hundreds of web sites and we have a way to reach them INSTANTLY when your home is placed on the market. The technique is called reverse prospecting, but the specific way we use technology to do it is unique. Think of the result this way: if you were selling your car, wouldn't you like to have immediate access to hundreds of buyers who were looking for one just like yours?
In addition to what I've described above, I provide all the traditional Realtor services including:
MLS listing
Lockbox
Print Advertising
Yard Sign w/flyers
Open House (Brokers and Public)
Neighborhood Postcards
Lockbox
And, most importantly, you will get a level of personal service that we know is far beyond what other Realtors offer. I will be with you every step of the way through the selling process and make sure that the transaction closes on time and smoothly.
REFRESH AND RESELL
If your home is eligible for my Refresh & Resell program, we will bring a team of contractors in and have your home looking better than you thought possible. In fact, you might like the way it looks so much, you decide not to sell. Based on the budget we agree on, we will do projects such as painting, carpets or wood floor, smooth ceilings, minor repairs including plumbing, landscaping and a host of other updates at NO upfront cost to you. Why would we do this? Because we're confident that we can sell the house for more and recoup the investment. There's a lot more to the program than we can write in this space - call or email for more details. (Not every home is eligible.)
When it's time to buy or sell Redondo Beach Real Estate use a Top local Agent!
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If you want to buy or sell Redondo Beach Real Estate, knowing the market trends and having the most updated Real Estate data can only help. An interactive "Market Snapshot" will show you all the recent sales, current homes for sale, price reductions, days on market and other information previously only available if you were a Real Estate agent. Click here for your report.
VIEW ELLIS POSNER'S PROFILE ON ZILLOW
