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Guide to help home sellers, questions, answers, from Cal Counties Title Nation Division Manager Sara Forkel

Guide to help home sellers, questions, answers, from Cal Counties Title Nation Division Manager Sara Forkel

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  • 1. S Guide.
  • 2. S Page 1: Choosing a Real Estate Agent Page 2: The Lender Page 3: Home Seller’s Process Page 4: What is Escrow Page 5: Escrow Process Page 6: Escrow Q&A Page 7: Escrow Q&A - Continued Page 8: Life of an Escrow Page 9: Title Insurance Process Page 10: Holding Title Page 11: Payment Procedure Page 12: Seller’s Cost Sheet Page 13: 7 Tips before Selling your Home Home Buyers Table of Content Guide Page 14: 15 Home Selling tips Page 15: 15 Home Selling tips - Continued Page 16: Presenting your home Page 17: Maintenance and Repair Page 18: Moving and Packing Tips Page 19: Moving Checklist Page 20 & 21: Glossary Personal NotesCalCounties TitleNation Company - is a registered trademark of CalCounties TitleNation Company. All Rights Reserved ©All information contained in this book is for informational purposes and is not intended to offer advice - legal, financial or otherwise - about specific situations or problems. This information is a general guideline only, consumers areurged to consult legal councel regarding their rights and responsibilities under state and federal law. The information contained is deemd reliable but not guaranteed.
  • 3. Home Seller’s GuideChoosing A - ReAl estAte Agent Choosing A - ReAl estAte AgentListing your home with a qualified agent can make all the difference in theworld when it comes to selling your home. Selling a home is a lot of work,therefore having an agent is very helpful.Here are a few reasons why you should use an agent when selling your home:-> An agent will assist you with negotiations with the buyer-> An agent know the market and can help you set a reasonable price-> An agent has better resources for locating buyers and information on recent sale prices of homes around you-> An agent has a broader range of advertising options 01-> An agent can screen for buyers who are financially able to purchase your home-> An agent will save you time!
  • 4. Home Seller’s Guidethe lendeRThere are many advantages of working with a reliable, professional lender.Some of their very importat services are as follows:Pre-Qualification of all Prospective Buyers:Your lending professional should pre-qualify each potential buyer to ensurethat they are sufficiently qualified by thorough examination of their creditstatus and current financial situation. This is extremely important toeliminate wasted time negotiating with unqualified buyers.Ability to find the right Loan at Competitive Prices:A reliable lending professional will shop for the best loan and the best the lendeRpossible price. This affords the borrower the freedom to select the loan bestsuited for their needs at the best pricing, without having to shop all overtown.Efficient Follow-up and Teamwork:Once the transaction has been negotiated, the lender works hand in handwith the other support team members to ensure that the loan is approvedand funded in a timely manner. They locate and handle any unforeseen 02situations before it becomes a problem, and keeps you informed of all important details along the way. A Good Lender will Handle Potential Buyers with Care and Confidentiality!
  • 5. Home Seller’s Guidehome selleR’s PRoCess Home Seller’s Chose Realtor List your Home Schedule an open Review Offers Accept Purchase House Agreement home selleR’s PRoCess Open Escrow Chose Escrow Deposit Ernest Seller’s Transfer Preliminary Secure Lender and Title Money Disclosure Title report Company Statement Begin Loan Property Property Purchase Loan Approval Process Inspection Appraisal Home Owners Insurance 03 Remove Financial Contigencies Closing Escrow Deposit Sign Closing Loan Funding Record Escrow Closed Balance of and Loan Paper Documents Down Payment Work to Escrow
  • 6. Home Seller’s GuideWhAt is - esCRoWEscrow is a way of transferring or exchanging property and/or money using aneutral third party. In many jurisdictions, escrow agents constitute a distinctprofession with its own training and accreditation requirements. In otherjurisdictions, such as Canada, escrow functions may be performed by attorneys.In either case, the escrow process is covered by significant regulation andprotection through the use of licensing and/or bonding.Escrow is most commonly associated with real estate transactions. When a homeor property changes hands, the seller of the property transfers the property titleto the escrow agent. Similarly, the buyer either transfers funds or has a banktransfer mortgage proceeds to the escrow agent. When all conditions of the WhAt is - esCRoWpurchase agreement are met, the escrow agent assigns the property title to thepurchaser and distributes the funds to the seller.An escrow is created when money and/or documents are deposited with theescrow agent. The escrow agent’s authority is strictly governed by writteninstructions, mutually agreed upon by the parties involved. The instructionsdirect the escrow holder to perform duties necessary to complete thetransaction. A few of the tasks which may be required are: -> Receive and deposit earnest money -> Order information for payoff of existing liens 04 -> Calculate and/or prorate taxes, liens, interest, rents, and insurance policies -> Make arrangements for title insurance protection for the buyer and lender -> Prepare and/or receive documents relating to the escrow -> Request and receive funding from new lender when conditions have been satisfied -> Arrange for recording of the conveyance documents and any other legal instruments required to transfer title to the property pursuant to the terms of the purchase agreement -> Close the escrow and disburse funds as agreed upon in the instructions -> Prepare a closing statement for the parties showing disposition of funds
  • 7. Home Seller’s GuideesCRoW PRoCessWhat Information is Needed?Confidential Statement of Identity Because many people have the same name, thestatement of identity is used to identify the specific person in the transaction bydetermining date of birth, social security number, etc. The statement form isnecessary and the information is kept confidential.Provide the escrow holder with the name, address and phone number of your lenderas soon as possible after opening escrow.Hazard/Fire Information If you are purchasing a single family, detached home, or in esCRoW PRoCesssome cases, a town home, be sure to order your fire/hazard insurance once your loanhas been approved. You should immediately begin looking for an insurance agent;not all companies can write fire hazard insurance. Call your escrow holder with theinsurance agent’s name and phone number so that he/she can make sure the policycomplies with your lender’s requirements. You must have your insurance in placebefore the lender will fund money to the title company.Holding Title Page 10 shows common ways of holding title to help you understandthe criteria for determining how you wish to hold title to your home. The escrowholder will need this information in order to prepare the grant deed, and your lenderwill need this information to prepare loan documents. We suggest you consult anattorney, tax consultant, or other qualified title professional before you decide. 05What is Close of Escrow?The close of escrow signifies legal transfer of title from the seller to the buyer.Approximately three days before the scheduled close of escrow date, the loandocuments are executed by the buyer. The new lender takes 24 to 72 hours to reviewthe final executed documents and then wires the loan funds to the title company.Escrow collects the remainder of the buyer’s down payment and closing costs. Whenloan funds are wired, the file is then set up to record (a legal transfer of title from theseller to the buyer). The escrow holder then handles all final accounting, issuance ofofficial closing statements and disbursement of any remaining proceeds to allparties.
  • 8. Home Seller’s GuideesCRoW - Q&AQ) How do I Open an Escrow?A) Generally the buyer’s Real Estate Agent will open the escrow. As soon as you execute thepurchase agreement, the selling agent will place the buyer’s initial deposit, if any, into theescrow account or into the Real Estate Broker’s trust account.Q) What Information will I Need to Provide?A) You will be asked to complete a Statement of Identity (SI) as part of the necessarypaperwork. Because many people have the same name, the SI is used to correctly identifythe specific person in the transaction through such information as date of birth, social secu-rity number, previous addresses, etc. This information is kept confidential and is required toprovide title insurance.Q) What do I Need to do Before my Appointment to Sign Escrow Papers? esCRoW - Q&AA) All parties signing the documents must bring proper identification: either a valid driver’slicense, identification card, or current passport. This is needed to verify your identity by thenotary public. It is routine, but necessary step, for your protection.Q) When and Where do I Sign Escrow Instructions?A) Your Escrow Officer or Real Estate Agent will contact you to make the appointment foryou to sign your escrow instructions, Grant Deed and final papers. At this time, the EscrowOfficer will also tell you the approximate amount of proceeds you will receive for the sale ofyour home. 06Q) What’s the Next Step after I’ve Signed the Closing Escrow Papers?A) After both parties have signed all the necessary instructions and documents, the EscrowOfficer will return the buyer’s loan documents to the lender for a final review. This reviewusually occurs within a few days of execution of the documents. After the review iscompleted the lender is ready to fund the buyer’s loan and inform the Escrow Officer.Q) How Long is an Escrow?A) The length of an escrow is determined by the terms of the purchase agreement and canrange from a few days to several months. An escrow often averages 30 to 45 days.Q) What is an Escrow Closing?A) An Escrow closing is the culmination of the transaction. It signifies legal transfer of titlefrom the seller to the buyer. Generally the Grant Deed and Deed of Trust are recorded withinone working day of the escrow holder’s receipt of loan funds. This completes the transactionand signifies the “close of escrow”. Once all the conditions of the escrow have been satisfied,the Escrow Officer informs you or your Agent of the date escrow will close and takes care ofthe technical and financial details.
  • 9. Home Seller’s GuideesCRoW - Q&A ContinuedQ) Do I Continue to Pay my Monthly Mortgage Payment?A) Yes, your mortgage payment(s) must be kept current throughout the course of theescrow transaction. If the payment(s) are not kept current, the lender(s) can/will assess andcollect late charge(s).Q) When are my Existing Loans Paid Off?A) Unless the buyer takes over your existing loan(s) on the property, the loan(s) will be paidoff at the close of Escrow. You will need to furnish complete information to your Escrow esCRoW - Q&A ContinuedOfficer and Real Estate Agent on each loan against your property. Please be prepared toprovide the name of each lender. Your Escrow Officer will need this information to order theloan payoff demands so the loan(s) may be paid off correctly at the close of Escrow.Homeowners Association information may also be required if you are selling acondominium, townhouse or property located in a planned unit development. All of thisinformation will help to ensure the timely closing of your Escrow.Q) What are Disclosures and Contigencies?A) During the process of selling your property, you will be asked to fill out a propertydisclosure form which is now required by law. In this document you will inform the buyerof any significant facts you have about the conditions of the property. If you are moving toCalifornia, other disclosures may be necessary. Your Real Estate Agent or Escrow Officer willassist you with these.Q) When and Where do I get my Final Proceeds Check?A) The proceeds check is disbursed upon close of Escrow, when the Escrow Officer is able 07to verify with the county records office that the documents have recorded and legal transferhas occurred. The proceeds check is usually delivered to your Real Estate Agent.Q) What Happens to Funds eld in Escrow?A) In some cases the Escrow company will be instructed to hold funds in escrow to pay-offobligations which may not have been completed yet, even after the close of Escrow. Anexample might be to set aside funds to correct a structural problem, remodeling or termiterepair work. Upon completion of the project and receipt of the proper documentation and/or releases, the Escrow Officer will disburse the reserved funds to you.
  • 10. Home Seller’s Guide life of An esCRoW Prepare Escrow Instructions and Documentation. Obtain Signatures Process Financing Order Title SearchRequest Information for Request Benificiary Review and Receive Preliminary title Report life of An esCRoW New Loan Statement ApplicationObtain Loan Approval Review Transfer Terms and current Payment esCRoW Request Demands and Liens. Review Tax Repor and Determine that Request Loan terms are correct Documentation Receive Demands and file them Review File and Determine all Conditions have been Met and all Documents are Prepared for Signatures 08 Return Loan Send Documents to Documents Title Company Configure File And Obtain Signatures for all Remaining Documents Obtain Funds from Buyer Request Loan Funds Once Funds are Received order Recording Close File. Prepare Statements and Disburse Funds Complete Escrow Closing and Foward files to all Parties
  • 11. Home Seller’s Guide title insuRAnCe - PRoCess Most mortgage loans are made by savings and loan associations, mortgage companies, savings banks, commercial banks, credit unions, and insurance companies. These organizations invest money that belongs to their customers or policy holders, therefore they must be concerned with the safety of their mortgage investments. This is why a policy of title insurance is required by most lenders on most mortgage loans. title insuRAnCe - PRoCess The lender’s title insurance policy guarantees the lending institution that the person to whom it is making a mortgage loan has title to the real estate that is pledged as security. The lender also needs assurance that it has a valid and enforceable lien, that no other claimant (other than those specifically noted in the policy) has a prior claim. CalCounties TitleNation offers competitive rates on lender’s title insurance policies, and our escrow and title officers are well acquainted with the product and what lenders typically require. CalCounties TitleNation also offers your lender a high degree of safety. Be assured that, as always, CalCounties TitleNation will make it easy for you.Title Insurance - Step by Step 09Step 1: Customer Service Verifies Legal Property Step 8: The New Documents, Demands & Statement of Description & How Title to Real Property Is Held Information Submitted to CalCounties TitleNation.Step 2: Preliminary Order & Title Search Are Opened Step 9: Escrow Authorizes Recording of New Documents inStep 3: Preliminary Search of Real Property Is Done the TransactionStep 4: Title Search Examines Real Property Records, Step 10: Documents Are Recorded, Confirmation of General Index Records & Tax Record Recording Is Received & Liens of Record AreStep 5: Examiner Reviews Complete Search Package Paid Off & Writes Preliminary Report Step 11: Title Officer Writes Title PoliciesStep 6: Data Processor Enters the Preliminary Title Step 12: Data Processor Prepares Final Title Policies Information into Computer & Prepares Preliminary Step 13: Title Policies Released to Client ReportStep 7: Messenger Service Delivers Prelims to Escrow & Lenders
  • 12. Home Seller’s Guide holding titleTenancy in Common Joint Tenancy Community Property Community Property with rights of survivorshipParties - Parties - Parties - Parties -Any number of persons. Any number of persons. Only husband and wife. Only husband and wife.(Can be husband & wife) (Can be husband & wife)Division - Division - Division - Division -Ownership can be divided into Owner interests Ownership & managerial inter- Ownership & managerial inter-any number of interests, equal must be equal. ests are equal. ests are equal.or unequal.Title - Title - Title - Title -Each co-owner has a There must be unity of title Title is in the “community.” Title is in the “community.”Eachseparate legal title to his andtime (created in one docu- Each interest is separate but interest is separate butor her undivided interest. ment). management is unified. management is unified. Title must state community property with right to survivorship.Possession - Possession - Possession - Possession -Equal rights of Equal rights of Both co-owners have equl Both co-owners have equlpossession. possession. management and control management and control holding titleConveyance - Conveyance - Conveyance - Conveyance -Each co-owner’s by one co-owner Written consent of other Written consent of otherinterest may be without the others will ter- spouse is required, and spouse is required, andconveyed separately minate that individual’s joint separate interest cannot be separate interest cannot beby its individual owner. tenancy. conveyed except upon death. conveyed except upon death.Purchaser’s - Purchaser’s - Purchaser - Purchaser -will become a tenant-in will become a tenant-in can acquire title from the can acquire title from the-common with the other -common with the other community with written community with writtenproperty co-owners. property co-owners. consent or joinder of both spouses. consent or joinder of both spouses. 10Death - Death - Death - Death -On co-owner’s death, his or On co-owner’s death, his Upon death of one spouse, Upon death of one spouse, hisher interest passes by will or her interest ends and 50%belongs to surviving or her interest ends and cannotto that person’s devisees or cannot be disposed of by spouse, 50% goes by will to be disposed of by will. Survivorheirs. No survivorship right. will. Survivor(s) own(s) the descendent’s devisees or by owns the property 100%. property. succession to surviving spouse.Successor - Successor - Successor - Successor -Devisees or heirs become Last survivor owns If passing by will, tenancy- Purchaser can only acquiretenant-in-common. property 100%. incommon between whole title of community; devisees and survivor results. cannot acquire a part of it.Creditor’s - Creditor’s - Creditor’s - Creditor’s -Co-owner’s interest may Co-owner’s interest may Property of community is liable Property of community is liablebe sold on execution sale be sold on execution sale for contracts of either spouse for contracts of either spouseto satisfy his or her creditor. to satisfy his or her creditor. which were made after marriage which were made after marriageThe creditor becomes a The creditor becomes a and prior to or after Jan. 1, and prior to or after Jan. 1,tenant-in-common. tenant-in-common. 1975. Co-owner’s interest can- 1975. Co-owner’s interest can- not be sold separately; whole not be sold separately; whole property may be sold on execu- property may be sold on execu- tion to satisfy creditor. tion to satisfy creditor.Presumption - Presumption - Presumption - Presumption -Favored in doubtful Must be expressly stated. The legal presumption is After July 1, 2001, there is nocases, except in husband Not favored. that property which has presumption. The code readsand wife case. been acquired during the that deeds must state course of the marriage is “community property with community property. the right of survivorship.”
  • 13. Home Seller’s GuidePAyment PRoCeduReOn these pages, you will find the traditional distribution of expensesassociated with a purchase of real estate. However, many of these items canbe negotiated by both parties at the time of the offer, excluding someexpenses required by the lender to be paid specifically by seller.Buyer Usually pays for:1. Escrow fees2. Document preparation (if applicable)3. Notary fees PAyment PRoCeduRe4. Recording charges for all documents in buyer’s name5. Termite inspection (according to contract)6. Tax proration (from date of acquisition)7. Homeowner’s transfer fee8. All new loan charges (except those required by lender for seller to pay)9. Interest on new loan from date of funding to 30 days prior to first payment date10. Assumption/Change of Records fees for take-over of existing loan11. Beneficiary Statement fee for assumption of existing loan12. Inspection fees (roofing, property inspection, geological, etc.)13. Home Warranty (according to contract)14. Lender’s policy15. Fire insurance premium for first yearSeller Usually pays for:1. Real estate commission 112. Escrow fees3. County documentary transfer tax (55 cents per $500 of consideration, exclusive of the value of any lien or encumbrances attaching to the property at time of sale)4. Applicable city transfer/conveyance tax (according to contract)5. Document preparation fee for deed6. Any loan fees required by buyer’s lender Payoff of all loans in seller’s name (or existing loan balance if being assumed by buyer)7. Interest accrued to lender being paid off8. Statement fees, reconveyance fees and any prepayment penalties9. Termite inspection (according to contract)10. Termite work (according to contract)11. Home warranty12. Any judgments, tax liens, etc., against the seller13. Tax proration (for any taxes unpaid at time of transfer of title)14. Any unpaid homeowner’s dues15. Recording charges to clear all documents of record against seller16. Any bonds or assessments (according to contract)17. Any and all delinquent taxes18. Notary fees - escrow fee19. Title insurance premium: Owner’s policy
  • 14. Home Seller’s GuideselleR’s Cost sheetSales Price: ................................................ $______________________________Est. Balance 1st Loan: ............................. $______________________________Interest: ...................................................... $______________________________Prepayment Penalty: ............................... $______________________________Est. Balance 2nd Loan: ........................... $______________________________ selleR’s Cost sheetInterest: ...................................................... $______________________________Prepayment Penalty: ............................... $______________________________Termite Inspection (+ repairs if any): . $______________________________Recon. Fees: ............................................... $______________________________Drawing, Recording & Notary Fees: ..... $______________________________Document Preparation Fees: ................. $______________________________Homeowners Assoc. Dues (if any): ....... $______________________________ 12Loan Discount Points (if any): .............. $______________________________Buyer’s Closing Cost (if any): ................ $______________________________Taxes: .......................................................... $______________________________Selling Commission: ................................ $______________________________Miscellaneous: .......................................... $______________________________Total Charges: ........................................... $______________________________Est. Total Net: ........................................... $______________________________ $
  • 15. Home Seller’s Guide7 tiPs befoRe selling youR homeSome vital steps need to be taken before selling a home. These steps saveyou time and money as well as eliminating the rush of doing things lastminute. Here are 7 tips you can use to help you prepare before you sell 7 tiPs befoRe selling youR homeyour home.1. Get Pre-Approval for a New Home Loan.Before selling you should get pre-approved for a home loan on your new home you willbe moving into.2. Contact CalCounties TitleNation Company for Comparable Sales.Getting comparable sales in your area for your home is vital to gaining the most marketvalue out of your home when selling.3. Estimate your Selling Costs.- Real estate commission if you use an agent to sell.- Advertising costs, such as signs and other fees if you plan to sell your home on your own.- Attorney, closing agent and other professional fees.- Excise tax for the sale.- Prorated costs for your share of annual expenses taxes, home owner association fees, and fuel tank rentals.- Any other fees typically paid by the seller in your area (surveys, inspections, etc.). 134. Estimate your New Home Costs.Estimate the costs of your new homes down payment, moving costs, association fees,utilities, taxes etc.5. Create a Moving Plan Ahead of Time.This can save you time when arranging your items to be moved. On page 18 you will find10 tips that can help you get ready to move to a new home.6. Market your Home.Whether your selling as a For Sale By Owner or through a real estate agent, it is vital youmarket your home properly. Marketing your home can greatly boost the amount of offerson your home you will receive.7. Touch up your Home.Fixing your faucets, cracks, paint and lighting can help boost the amount you will gainout of selling your home. The more appeal your house has to the buyer the betterchances you have at selling at maximum market value.
  • 16. Home Seller’s Guide15 home listing tiPs1. Pricing your Home-> Your agent can research comparable sales in your area and advise you of the appropriate price range for your property.2. Flexibility on Financing-> Have your agent explain what financing options are available. Flexibility on financing terms may secure a better selling price. 15 home listing tiPs3. Market Timing-> Ask a real estate professional to determine whether the market cycle is poised to net the most money.4. Property Accessibility for Potential Buyers-> Lock boxes are a great way to make your home the most accessible to agents for showing. Appointment-only showings are the most restrictive. If your lifestyle is not compatible with frequent showings, your agent will help you determine a solution to suit your needs. Remember, the easier a home is to show, the better the odds are of getting the deal you want.5. Latest Marketing Technology-> Make sure your agent utilizes the latest technology, such as internet sites that cater to home buyers. In some areas, cable access advertising is popular. Others use 800-number interactive voice response systems. A good agent will know where you can get the best 14 exposure.6. Present your Property Correctly-> Put some items in storage, create more light, play music, or otherwise improve the ambiance. Your agent can offer helpful advice to create the right first impression.7. Seasonal Property Sale’s-> Don’t base selling decisions on the season. Property sells year-round.8. Re-evaluate the Marketing Plan-> Re-evaluate your agent’s marketing plan every 10 days. Make needed adjustments based on the current market and buyers.9. Analyze Low Offers-> Eighty percent of all buyer activity comes from signs and MLS listings. So if you aren’t getting any offers and are flexible with showing your home, it may be time to re-evaluate your price, not necessarily your agent.
  • 17. Home Seller’s Guide15 home listing tiPs - Continued10. First Impressions are Golden-> Sales have gone south thanks to unkept lawns, cluttered closets, unpainted front doors, hard to work locks, blown light bulbs, bad colors, stains, unlit areas and foul smells. Spend 15 home listing tiPs - Continued time on the little things. Double up on your gardening. Keep things cleaner than usual. Take serious control of your pets during this time period.11. Make the Right Kind of Repairs-> Before making improvements prior to listing, consult a real estate professional. Some upgrades will not yield any real increase in value, while others may increase property value substantially. Ask for low-cost solutions to minor repairs that will yield the best profits.12. Give the Sales Process Enough Time-> Homes may take 3-6 months to sell in any market. Estimate how much time you have before you need to sell and then plan ahead to allow extra time. You don’t want to be forced to accept a disappointing offer.13. Screen Prospects Adequately-> One of the best reasons for hiring a realtor is his or her ability to pre-qualify a prospect financially so that you don’t loose valuable negotiation time. Your agent may discover when a prospect has an ulterior motive for shopping homes, other than purchasing.14. Believe that you can Make a Difference 15-> The top agents in the industry report that their sellers are responsible for at least one out of 10 sales. You can network your business and personal friends, hand out flyers and keep your house in move-in condition. Your realtor should be ready to hand you all sorts of assignments to make the team effort successful.15. Test the Market-> Never put your property on the market unless you really want a sale! Get ready for a professional sales push when you list with a great agent. If your plan harbors some indecision, resolve it before you list because success is every great realtor’s objective!
  • 18. Home Seller’s GuidePResenting youR homeEnhancing how your home shows to potential buyers cannot onlyhelp to sell it more quickly but can often improve the selling price.Stand out in your Neighborhood-> A well kept, neatly landscaped property can be very inviting to the potential buyer interested in viewing your home. Refuse containers should be out of view, and the lawn should be freshly trimmed. Fertilizing a few weeks prior to listing will help your lawn look PResenting youR home lush and green. Woodwork should be free of chipped or cracked paint.Fresh Look-> The front door should be clean or freshly painted. Brass knobs should be polished. Consider placing a planter of fresh flowers on your front porch.Small Repair Details-> Repair all loose doorknobs and cupboard hinges, dripping faucets, stained sinks, loose or missing caulking, sticking doors and windows, and damaged or missing window screens.Tidy up-> Tidiness makes a room look larger and helps the buyer visualize his/her décor in your home. Workout rooms, sewing rooms, laundry rooms, and home offices should be as organized and clutter-free as the main living space in your home. 16Light up your Home-> An open, airy feeling generates comfort and welcomes the potential buyer into your home. Drapes, curtains and mini blinds should be open to allow plenty of light in your home. Turn on all the lights when showing your home at night.Clean Closet-> Neat, well-organized closets appear larger. Larger closets help sell homes.Squeaky Clean-> Remove stains from sinks, toilets and bathtubs, including hard water spots on shower enclosure doors. If drains run slowly, unclog them. Hang fresh towels on towel rack.Clean Kitchen-> Make the most important room in the house appear larger by cleaning clutter from the counter tops. Avoid dirty dishes in the sink. All counter top appliances should be kept out of view. Replace or repair worn out flooring. Clean the ventilation hood over your stove. A brighter kitchen is always more attractive.
  • 19. Home Seller’s GuidemAintenAnCe And RePAiR - QuestionsWhen selling a home, whether it be new or used is a big responsibility. That’s whymaking sure you check for any errors and inaccuracies inside and outside of your mAintenAnCe And RePAiR - Questionshome is very important. A make over of your home is needed in making sure youget the full market value worth of your homeQuestions to ask your Real Estate Agent1. Has the home been fumigated?2. Has the plumbing and drainage system been inspected by a Plumber?3. Are the sprinklers and lights in full working condition?4. Has the carpet been updated?5. Has the paint been updated?6. Has the roof been updated for rainy weather conditions?7. Has the electrical system in the home been inspected by an Electrician?8. Is the heating and air conditioning system In full working condition?9. Are the windows in full working condition?10. Are all appliances in full working condition?New Home UpdatesWhen buying a new home many developers offer bonus or Add-On 17options to customize your home. Making sure you choose the option orfixture to your liking is another step into securing your investment.Used Home UpdatesAs provided by your Agent, the updates and improvement to your home shouldalso be reviewed by yourself. Not looking for errors can be a huge headache inthe future, as things like plumbing, Heating, Cooling and Fixtures can bring fortha costly problem if not examined properly.Maintain your HomeMaintaining your home is a very important part in your investment. Notmaintaining your lawn, drainage, heating, cooling and electrical wiring candrastically bring the overall equity of your home down when selling. Theseshould be maintained in order to secure the equity that your property willgain in the years to come.
  • 20. Home Seller’s Guidemoving And PACking - tiPsMoving to a new home can be time consuming and costly. Sortingyour belongings and making sure you don’t lose or misplace thingsis important in the moving process. Here are 10 tips to go by whenmoving into a new home. moving And PACking - tiPs 1. Make a List of your belongings, that way you can keep track of what is left to move. 2. Label your boxes. 3. Buy tape and packing paper. 4. Make sure you use packing paper for your fragile items. 5. Rent a truck or van for hauling items. This could save you money by moving a huge amount of your belongings all at one time. 6. Set placement ahead of time so you have an idea where to place things accordingly. 7. Use a dolly for moving heavy items. 8. If your not using a moving company, ask family members or friends for 18 help moving. The more help you have the faster you can move in to your new home. 9. Pack your items with other items that match, for instance: Cloths with Cloths, pictures with pictures, etc.10. Drive carefully, driving fast and taking fast turns can drop boxes and break your belongings on the way to your new home.
  • 21. Home Seller’s Guide moving CheCklistBefore you move.. At your new home..Always make sure when moving to double check everything Make placement plans for your items to 10 tiPs befoRe selling youR homein your home before leaving and Transfer all keys to the save time. Unpack and make sure yournew owner. utilities are scheduled to turn on in time of your arrival to your new home.General Checklist Item Checklist Create a List of everything Buy boxes, tape and labels Review your list and go that will be moved. to keep things in order. through your belongings. Set a time and day and let Clean your refrigerator, Move and place heavy items your employer know before oven, microwave and lawn and assemble heavy items hand. mowers before packing. before unpacking. Order new checks with new Pack cloths with cloths and Apply for a new state license, address and transfer funds wrap fragile items with and register your car with if using a new bank. packing paper the local DMV. Discontinue utilities, and inspect your gas and Turn off any lights or sprin- Confirm arrangements with electrical wiring. klers timers off and close your referred doctor, dentist the gas line before moving and veterinarian. Arrange your new home your oven Check your utilities and utilities to be turned on Ask your doctor, dentist for Clean out your washer and dryer, and close the water make sure they are in working order. 19 referrals in your new line to your washer. Review your items for any neighborhood Carry jewelry and important missing or lost items, and Check new state or city documents with yourself or contact moving company if regulations regarding ani- in a safe deposit box. missing items. mal vaccinations, transfers, Greet your new neighbors records etc. and visit local services. Contact several moving Register your children at a companies for estimates new school. If your not using a moving company, contact relatives or friends. Confirm time of arrival, insurance and charges with your moving company.
  • 22. Home Seller’s GuideselleR’s glossARyThese definitions are to acquaint the seller with the terms commonly used in real estatetransactions. These terms are intended to be general and brief and are not complete and fullyaccurate when applied to all possible uses of the terms. Please consult your Real Estate Agentfor more information regarding these terms.Agent-One who is authorized to act for or represent another (principal), usually in business matters. Authority may beexpressed or implied.Amortization- selleR’s glossARyPayment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments.Appraisal Report-A written report by an Appraiser containing his/her opinion as to value of the property and the reasoning leadingto this opinion. The factual data supporting the opinion, such as comparables, appraisal formulas and qualifica-tions of the appraiser, will also be set forth.“As-Is” Condition-Premises accepted by buyer of the condition existing at the time of sale, including all physical defects.Asking Price- 20The price at which the Seller is offering the property for sale. The eventual selling price may be less afternegotiation with the buyer.Assumption of Mortgage-A Buyer’s agreement to assume the liability under an existing note that is secured by a Mortgage or Deed of Trust.The Lender must approve the Buyer in order to assume the loan.Beneficiary’s Demand-Written instructions by a beneficiary under Deed of Trust stating and demanding the amount necessary forissuance of reconveyance, whether a full or partial amount.Closing Statement-The Statement which lists the final financial settlement between Buyer and Seller the costs each must pay. Aseparate statement for Buyer and Seller are generally prepared.Commission-An amount, usually as a percentage, paid to an Agent (Real Estate Broker) as compensation for his/her services.The amount to a Real Estate Broker is generally a percentage of the sale price.
  • 23. Home Seller’s GuideselleR’s glossARy - ContinuedEarnest Money-The portion of the down payment provided by the Buyer, delivered to the Seller or Escrow Agent with awritten offer as evidence of good faith.Grant Deed- selleR’s glossARy - ContinuedOne of the many types of deeds used to transfer real property. Contains warranties against prior convey-ances or encumbrances. When title insurance is purchased, warranties in a deed are little practical signifi-cance.Listing-An agreement between an Owner of real property and a Real Estate Agent, whereby the Agent agrees tosecure a Buyer for specific property at a certain price and terms in return for a fee or commission.Listing Agent-A Real Estate Agent obtaining a listing as opposed to the Selling Agent.Owner Will Carry Mortgage-A term used to indicate that the Seller is willing to take back a purchase money mortgage.(Can also be called a Seller Carry Back).Pro Rate-To divide in proportionate shares, such as taxes, insurance, rent or other items, which Buyer and Seller 21share at the time of closing or other agreed upon time.Purchase Agreement-A written document whereby the Purchaser agrees to buy certain real estate and the Seller agrees to sellunder stated terms and conditions. Also called Sales Contract, Earnest Money Contract or Agreement forSale.Realtor-A designation given to a Real Estate Broker or Sales-Associate who is a member of a board associated withthe National Association of Real Estate Boards.Reconveyance-An instrument used to transfer title from a Trustee to the equitable Owner of real estate, When title is heldas collateral security for a debt. Most commonly used upon payment in full of a Trust Deed, also calledDeed of Reconveyance or Release.Selling Agent-The Real Estate Agent Obtaining the Buyer rather than listing the property. The Listing and Selling Agentmay be the same person or company.
  • 24. Home Seller’s Guidenotes
  • 25. Home Seller’s Guidenotes
  • 26. Home Seller’s Guidenotes
  • 27. Home Seller’s Guidenotes
  • 28. Orange County4667 MacArthur Blvd., Suite 150 Newport Beach, CA 92660 Phone: 877-727-3900 Los Angeles County790 E. Colorado Blvd, 4th Floor Pasadena, CA 91101 Phone: 888-282-5885