How to Sell Your Home in Today's Buyer Market, part 2 of 2

How to Sell Your Home in Today's Buyer Market, part 2 of 2
by John Occhi, Hemet Realtor

Third Party Inspections: The Key to Setting Yourself Apart from the Pack

Every bona-fide real estate transaction in California is required to have disclosures completed and inspections of the property integrated into the terms and conditions of the purchase agreement. Some of these are state laws while many are lender requirements. It really doesn't matter who says to do it, if it needs to be done, it needs to be done.

A disclosure is simply letting the buyer know what you know about the property. There are more law suits filed for non-disclosure issues. More often than not, they are innocent oversights, forgetting about the little inconveniences and nuances of our Hemet home. Typically, we all learn to live with something and never give it a second thought once we become accustomed to it. Please spend the necessary time considering every aspect of your home and read through the questionnaires on the disclosure forms very carefully.

A very powerful tool when selling a Hemet home is to have the inspections done prior to placing it on the market. This may cost you several hundred dollars up front, but promises to comeback to you many times over at the close of the sale.

At a minimum, your home should be inspected by a member of the "American Society of Home Inspectors" (ASHI). Your Hemet Realtor undoubtedly has several choices of local professionals that works well with your Realtor. This inspection will avoid surprises when it comes time to close escrow. By having a trained professional put his reputation on the line, a prospective buyer will feel much more comfortable placing an offer on the table, knowing the condition of the home for sale. Coming from an independent 3rd party, some buyers will accept this report at face value, while others will want to go ahead and hire their own inspector. Either way, you have identified each potential problem and how you choose to handle it is your business.

Small repairs are often completed, prior to marketing the home, while others are merely disclosed to the buyer and allowing the buyer to make the repairs.

Another common inspection made prior to the actual marketing of the Hemet home for sale is the termite or pest control inspection. This will eliminate any question about the soundness of the structure of your home and identify any potential termite problems. Again, if there are issues, you have the opportunity to get it right before the buyers ever come to your home or wait and fix it before the close of escrow. Typically, a lender will never fund a loan until the property has been certified by a pest control inspector.

It is also recommended that you have the home appraised prior to marketing. Not only will this solidify your asking price, in your own mind but in the mind of every REALTOR who previews the property and shows it to their buyer clients.

Both the Home Inspection and Appraisal are costs that the buyer typically pays. By completing these in advance, it helps the buyer with closing costs that they don't have to pay.

Other inspections that may or may not be relevant to your Hemet property could be a well certification, a septic tank certification, a roof certification or anything else that relates to unique characteristics of your property. Remember, the more that is disclosed to the potential buyer about the condition and soundness of your property the more questions are being eliminated and thus the value increases.

ASKING PRICE: Be Real - Remember, this is a Buyers Market

This is such an important topic that I just recently wrote a whole article with extensive discussion to the many principals of pricing a home so it will sell. Please read my article here, so that you will have a clear understanding of the concept.

NEGOTIATE - Never Be the Party to Reject an Offer, Always Counter-Offer

You'd be surprised how many times an offer comes in that may appear to be ridiculous to every one involved, including the buyer's agent. Please don't be insulted and don't say something like, "I'm not playing that game".

Every offer is an opportunity to negotiate. You now have the opportunity to counter-offer and negotiate on all of the terms of the contract. Remember, money is not the only issue on the table. Perhaps, you lower the price in exchange for additional time at the close of escrow, if it's needed. Maybe, in exchange for a price concession, the buyer will waive a contingency or two.

Of course price is critical to the process. Negotiations can last w\for a week or two between the parties. With each counter offer, the other side will typically have 3 days to respond; so each full round can take up to 6 days. Remember, every time you counter an offer, you are rejecting the offer on the table and if it is not responded to in a reasonable time frame (3 days) the entire process typically breaks down. My advice is to always counter offer while you continue to look for a new buyer. An open house in the midst of negotiating is a great way to gauge a buyer's true interest.

Once the deal has been negotiated and the ink on the contracts is dry does not mean the sale is over. Up to now, everything has been fun. It's all been about sales and marketing and if your Realtor does not find these two activities fun, then find one who does.

Now we have to close escrow. We have to keep an eye on the buyer and make sure they don't suffer from ‘buyer's remorse'. Your Hemet agent has to keep on top of the situation and make sure that all of the money is put into escrow as soon as the contract calls. You want to see the buyer conducting inspections and getting involved in the buying process. The buyer will have to perform certain tasks by certain dates and it is your Realtors responsibility to track these events and coordinate with the buyer's real estate agent and make sure they happen, as agreed so the sale will successfully close escrow on schedule

Now have a Blessed Day,

John Occhi, Hemet REALTOR
www.JohnOcchi.Com