Price:

Pricing is everything in today’s market. Gone are the days when you could list your house and buyers would scramble to make an offer. Overpriced homes typically stay on the market a long time and end up selling for less than the house below its value. Also, homes sitting on the market are perceived as having problems. Houses priced attractively sometimes receive multiple offers and sell for over the asking price.

Your real estate agent agent will help you look at the comparable properties (comps) that have sold in the area, the only worthwhile comps which should be considered. Another property on the market and sitting unsold is not a comp.

Prepare your home: Remodeling your home to encourage a higher price is not advisable. Your taste may not be a buyer’s and all you will hopefully recoup is the money you put into the remodeling. Simply presenting an uncluttered, clean home, maybe a freshly-painted outside, and nice landscaping to provide a good first impression is all that is needed in an older house.

Put it on the market: and be ready for those open houses. You should not be home during open houses. It is also advisable to accommodate buyers as much as possible for private showings with your agent.

Review Offers. Make sure you are available during the course of a listing to review offers. They are usually time-sensitive. Your agent will request paperwork to ensure that the buyer is financially able to purchase the house and go over the purchase contract. Main contingencies to consider will be:

1. Amount of down payment
2. Contingency removal dates – loan and appraisal are usually 17 days, although in this market this may be extended
3. Length of escrow period – the standard is 30 days, but again, in this market this may need to be extended
4. Length of inspection period. The standard is 17 days, but this should be shortened to a maximum of 7-10 days. It is easy for a buyer to get all inspections done within that time period. If they need an extension for a reasonable cause this can be granted
5. Make sure that the Buyer does not have to sell their home in order to purchase yours. This can hold up your sale with no guarantee that they Buyer will ever perform.
6. Check for any other unusual requests that may delay the sale.

Remember that the first offer is usually the best. If it is a reasonable offer beware of thinking that you may get a better one. You probably won’t.

Also, make sure you understand what you will net from the sale after closing costs, including the agent’s commission.

Seller is responsible for paying – Title. Your portion of escrow fees. Generally a home warranty for the Buyer. The following is an example of some of the requirements for the City of Los Angeles – each city has its own – City Report, Natural Hazard Report, etc. Termite Inspection and paying for work required under Section 1 of that report. Retrofitting Inspection and any corrections required after inspection.

Prepare for the escrow period: The Seller also has to abide by various contingency periods. Make yourself available to sign the mass of paperwork that will be thrown at you. Most of it is standard, but if you need an explanation, don’t be afraid to ask your agent. You will need to have the property inspected by a licensed pest control company for termites and also a licensed retrofitting company to ensure that the home meets the required standards. These inspections are time-sensitive. The corrective work, needed, has to be completed before the close of escrow.

Once all the contingencies are addressed and, where needed, removed, the property is in solid escrow and the Buyer has basically “purchased” the home.

Close the deal. The Seller needs to be out of the home by the time stated on the day of close of escrow, usually 5:00 p.m. Everything should be in place to hand the property over to the new owners. Here is a checklist to get you started. Cancel electricity, gas, lawn care, cable and other routine services. If the new owner is using the same services he/she will change the name on the account on the same day in order not to lose those services. Gather owner’s manuals and warranties for all conveying appliances.

The most lawsuits arising after close of escrow would seem to be directed at agents who do not disclose known issues affecting the condition of the property in question.

Water intrusion leading to mold are high on the list, followed by sewage systems, whether septic tanks or city sewer lines.  Also misstated square footage can lead to legal problems.

Foreclosure sales, i.e. bank-owned properties, are frequently involved in these kinds of suits, as the property often has not been maintained. Unfortunately, neither the bank nor the agent representing them would necessarily have knowledge of such problems. A Buyer needs to be extra diligent in these cases.

What is known, possibly from a previous buyer’s inspection needs to be disclosed.  What an agent may suspect through a visual inspection, needs to be disclosed,  in this case as a suspicion, for further investigation.

And, above all, the buyer must do his or her own due diligence through the Buyer’s Inspection and subsequent inspections recommended by the Inspector. If there is any doubt inspect, inspect, inspect.

With regards to square footage, In Los Angeles as agents we rely on the information received from Public Records, and make no claim to its accuracy.  If exact square footage is an issue for a Buyer then maybe they should hire and Appraiser.

If you find the section about area schools blank or filled with “Check with City”, this is because the agent cannot be responsible should the house in question fall outside a particular school district.

When representing the Seller in a multiple-offer transaction, care needs to be taken to treat each offer equally.  Present them, give an educated opinion of each offer, such as credit-worthiness, reasonableness of the offer, etc. and let the Seller decide.  Do not play offers against each other in order to increase Buyer competition. And absolutely do not let a Buyer’s agent know the terms of a competing offer.

Dual Agency, representing both the Seller and a Buyer, needs to be handled with special care.  The agent’s fiduciary duty is to both parties and he or she must remain neutral.  Some agencies prohibit dual agency.

RESPA, the Real Estate Settlement Procedures Act, is there to protect Borrowers from unfair loan settlement fees.  Agents should be careful when recommending lenders as this is an area where they can be accused of taking referral fees and thus having a financial interest in the transaction.

As agents we owe a fiduciary duty (a relationship of confidence or trust) to our clients, and every effort should be made to maintain that trust.