The selling process
If you have made the decision to sell your home or are considering selling, the first thing you need to do is select a Realtor. By choosing your Realtor early on, you will have simplified the selling process greatly and alleviated a tremendous amount of stress. Most all agents are capable of marketing your home, but how they go about it will dictate whether you get the best price possible for your property or, perhaps, whether you sell at all. You want an individual that truly has your best interests in mind and one that you believe is committed to providing you quality services in order to market your home effectively to obtain the best price possible.
After you have selected your Realtor, you can then focus on preparing your home for sale. We at KBay Properties provide our clients many value services to assist them in getting their home ready to sell.
Our premarketing program will assure you have a smoother transaction once in escrow, and also prevent unnecessary credits being requested, which will provide a larger net profit to you.
Once your home is ready to market and has been entered into the MLS, your agent will then schedule a broker’s open, which is an invitation to agents to come and preview your home for clients they may have and for agents in general to see new listings on the market. Depending upon the situation, you may or may not allow open houses. Preferably, there will be several open houses as a means to promote your property within the area.
Your Realtor will receive calls from agents who have clients requesting an appointment to view your property. It is critical that the home is clean and looking as best it can. It’s important to note, how we live is not how we sell. Despite the inconvenience in making sure your home is presentable day after day, it is a major contributing factor when a buyer is viewing your home. First impressions do matter, and you have only one chance to make this impression.
Hopefully, sooner rather than later, you will receive an offer for your property. You can either accept the offer, counter it or reject it. Your agent will be able to offer advice, but ultimately it is your decision as to how you wish to proceed with an offer. Upon acceptance of an offer, both the buyer and seller will open escrow. A timeline will be provided, which will outline the terms and conditions within the Purchase Contract, the contingency deadlines and the obligations to buyer and seller.
If you have not completed the Seller’s Real Property Disclosure Statement, then you will be required to do so at this time. This statement must be provided to the buyer within so many days after acceptance, and usually before the home inspection is performed. We at KBay Properties prefer our clients to complete the Seller’s Disclosure at the time of premarketing. This enables us to address issues that may be on the disclosure and to remedy them before any offers come in. No one likes surprises, and we want to limit your exposure. The Seller’s Disclosure Statement is also a mechanism that gives us at KBay Properties much insight into your home and allows us to better promote it to prospective buyers.
The first major contingency in the Purchase Contract is the buyer’s home inspection. The buyer will have a certain number of days within which to perform an inspection of your home. A professional home inspector will be hired at the buyer’s expense to perform the inspection. The inspection normally lasts approximately 3 to 5 hours, depending upon the size of the home. After the completion of the inspection, a report is generated, and the buyer will either approve the inspection contingency, request that repairs be made to certain items, or may simply decide to cancel the Purchase Contract should the home have issues that the buyer is unwilling to accept. Should the buyer elect to cancel, they buyer’s agent will draft a cancellation document. Should the buyer request repairs and/or remedies, these items may be negotiated and the transaction will proceed.
The buyer approving the home inspection is a major hurdle, and one you can feel very good about.
The escrow period typically is 45 days. In most instances, upon approval of the home inspection, this is the time when you should start scheduling and making arrangements for your move. KBay Properties provides a full service concierge program and works with many trust vendors that will assist you.
At this point, the buyer will be working with his or her lender to put in place a loan.
The lender will order an appraisal of the property, at the buyer’s expense. This normally occurs after the home inspection approval. If the property should not appraise for the purchase price amount, then the buyer may request you to lower the amount of the purchase price to the amount of the appraisal. The lender, in most instances, will not lend for an amount higher than the appraised value of the property. Either the buyer will need to bring in additional funds or, as mentioned, you may be requested to reduce the purchase price. This potentially could be a deal-breaker, as the buyer may not have additional funds to bring to the table. In today’s market, it is very important to develop a pricing strategy that takes into account appraisal issues.
Simultaneously, while the appraisal report is being generated, the seller is responsible for providing a termite report and having a survey performed. These are seller expenses. The termite report is required by both the State of Hawaii and the lender. Unless a survey has been performed recently and there have been no changes to the property, a seller is required to order a survey and address encroachments, if any. In Hawaii, encroachments are fairly commonplace and there are allowances made. We at KBay Properties will coordinate and schedule the termite inspection and survey.
The buyer’s lender during this period will be keeping your agent informed as to the status of the buyer’s loan approval and meeting the required deadlines per the contract regarding financing contingencies.
Once all contingencies have been met and the parties have satisfactorily performed their obligations per the Purchase Contract, the next step will be signing documents at escrow. This is normally an appointment that will take place at the escrow office in which you will be executing the appropriate documents in order to finalize the sale. The documents are required to be notarized; so you will need to provide a current form of ID.
We at KBay Properties will protect your interests at all times during the transaction. We will continually monitor all contingencies and deadlines, all the while assisting you in performing your obligations under the contract. Our impeccable attention to detail and paperwork will provide much comfort during a time that can be quite stressful. We realize you have many other priorities while your transaction is moving through the escrow period, and we are committed to helping you every step of the way.
This is a brief and generic outline of what you can expect during the selling process. We will provide a detailed and all-inclusive understanding during our listing presentation appointment with you.