Selling a Home 101

If your primary goal is top dollar, you owe it to yourself to get the most bang for your buck when it comes to getting your home ready for sale. No one wants to do a bunch of repairs and painting, but it is better to spend a little money and get a lot in return. Spend no time and money and you could lose thousands.

A Comparative Market Analysis (CMA) is a process of comparing and contrasting other homes that have sold in the area. A CMA is basically an unofficial mini-appraisal. In very simplified terms, a Realtor/Broker is to a Nurse as an Appraiser is to a Doctor.

When you price a home too high, you may as well price it way too low. Everyone pays attention!! If your home is overpriced you'll eventually have to lower the price. When you lower the price you show your cards. It is much more effective to price the home right from the start.

Pricing a home too low can send the wrong signal. It is better to spend the time and effort getting your home ready to sell than it is to price it for a quick sale. No one wants to do the repairs that you've been neglecting for the past several years. Buyers will expect a heavily discounted price to get the home up to "move in" condition.

When you get a home ready to sell and price it right, the market responds. What you want is the choice of the best buyer available.

Confidentiality is something many consumers worry about and with good cause. A real estate agent is not a doctor or an attorney but we do keep your information confidential. Anything a homeowner must disclose about a property by law, an agent must also disclose. Personal conversations, when or why you are selling a property or anything else not required will never be discussed with the other agent or a consumer without your permission.

A listing agreement is a form outlining terms and conditions for a real estate agent to sell a property.

Unless it is not agreed to in the listing agreement, a lockbox will be placed on your property so other agents can have easy access to show your property to potential buyers. Modern lockboxes are very high tech and track and log every agent that comes through the door.

An appropriate sign will be placed in your yard with contact information for The Melton Team and RE/MAX Peninsula.

Sign Types:

• Hanging Sign and Post (Medium and Large Properties)
• H-Frame Sign (Small Properties)
• Window Sign (some townhomes and condos)
• Custom Sign (some neighborhoods require a specific sign)

The Multiple Listing Service (MLS) is a company that is used by cooperating agents to market properties to all of the other members (agents) of that particular MLS. Homes are consistently displayed in the same format.

When we started this business in 2001, we advertised that 20% of potential homebuyers use the internet to start their home search. Today that figure is 98%. Having a real estate agent that can advertise your property online is imperative. The Melton Team is unmatched in this area.

Print advertising and marketing isn't completely dead, but it is a dying medium. Print advertising is great for a special property in a certain niche. Flyers are still heavily used. It's nice to hold something in your hand that you can write on and keep as a reminder of the home of your dreams!

Cooperating, licensed real estate agents will be instructed to notify the listing agent of their intent to show the property to a potential buyer. The lockbox allows them access to the property. Modern lockboxes are very high tech and track and log every agent that comes through the door.

A purchase agreement is submitted by a potential buyer; otherwise known as an offer to purchase. Terms of the agreement will be presented and explained by your real estate agent.

Offer, counteroffers, verbal and written; at the end of it all there is a meeting of the minds between a buyer and seller.

For a purchase agreement to become ratified, everything must be written in or attached to the purchase agreement. Until every speck is signed and initialed, you have nothing. Either party may rescind or reject any offer or counteroffer at any time prior to ratification.

1. Agree to make all requested repairs
2. Agree to make some requested repairs and cross through others.
3. Agree to do none of the requested repairs.
4. Offering a concession in lieu of repairs.

A termite inspection is conducted at the seller's expense (unless otherwise negotiated).

REIN Agreement (Hampton Roads): There will also be a moisture inspection. Treatments or repairs are at the seller's expense up to a cap of 1% of the purchase price.
VR Agreement (Williamsburg):   Treatments or repairs are at the seller's expense up to a cap of $1,000.

Appraisal Contingency: An appraisal is ordered by the lender at the buyer's expense. An appraisal is not disclosed unless it appraises for less than the sales price or there are certain repairs that need to be made. If there are appraisal required repairs, they would be at the seller's expense and are included in the cap. If the home appraises for less than the sales price, we go back into negotiations. If no agreement can be made, a release is signed and home goes back on the market.

A title search at the buyer's expense (included in buyer's closing cost estimates) is conducted by the buyer's closing attorney (title company). If there are any issues with the title of the home, those have to be cleared before the home can sell.

• Buyer to receive the clear to close from the Lender.
• Seller to sign closing (seller) documents (including deed) at the title company.
  • Delivered or overnighted to the buyer's title company.
• Final walk through: Typically conducted about 24-48 hours before closing.
  • Buyer's agent and buyers.
  • Seller shall have the utilities on at their expense.
  • All agreed upon repairs must be completed and receipts made available to the buyers (take photos of receipts for your records).
  • The property needs to be in the same if not better condition than it was at the time of inspection.
  • If there are major systems that aren't working (plumbing, electric, HVAC, etc.), the seller must correct them prior to walk through (subject to cap).
• Buyer's title company gives "green light" to close.

The keys, garage remotes and any other portable devices are handed over to the buyer(s).

The lockbox will be removed from the property on or around the time of closing.

The for sale sign will be removed from the property on or around the closing date.

• The buyer will sit down with the title company and sign all of the paperwork necessary to close.
• Several options are available (specific power of attorney) when one or more buyers are not available to sign.
•  Attendees:
  • Buyer(s) and a closing representative (attorney, paralegal, etc) or notary.
    • Note: The buyer's agent may be present at the buyer's request, but does not have a role at closing. They are mainly there for high fives, hugs and fist-bumps!
• Non-attendees:
  • Sellers, seller's agent, lender, inspectors, etc.