Is Real Estate Market Changing at California?

Recently, I had a conversation with a seller, “A for sale by owner” seller. I explained to him since all real estate agents are using the same data, same source and same MLS, we present you with the same price with 1%-2% variation. By the way,  you can see all this information in Vylla, Zillow, Redfin, and all other sites offering for free. You can guess or know the value of your home.

What makes the agents apart is their marketing, experience, and negotiation skill. Since, now, we are in a very different, slower market, selling your home for a maximum dollar amount possible, I offer my sellers three strategies. The seller will choose which one suits him or her because a seller’s reason to sell is different, so their marketing plans must be changed.

Stratgy#1: Go for a higher price and see if we can find a buyer who falls in love with your house willing to pay more for your home. "not recommended in this current market."

Strategy #2: List it at what Comparable Market Analysis “CMA” suggests and market it to the prospective buyers and agents.

Startegy#3: Lets listed slightly lower than fair market value and lets the bidding war started. I grantee we end up to sell your property over your asking price.

Here is my step by step marketing plan to tailor for each strategy:

MARKET ANALYSIS
Thoroughly inspect your home and outline all the essential features and upgrades
Determine the Fair Market Value of your property by doing a detailed written market analysis
Provide an estimate of the selling expenses to show your net proceeds
Execute a listing agreement authorizing us to market your property
Provide you with helpful information to make your property as marketable as possible
Recommend repairs and improvements to sell your property for the highest price
Schedule and supervise the home enhancement program, with your approval
Suggest additional enhancement and fixes based on buyer feedback

HOME MARKETING PLAN
Prepare and submit accurate information to the Multiple Listing Service (MLS) and other web-based marketing websites
Schedule a professional photographer to take “perfect” digital photos and virtual tour of your property for the MLS and Internet web sites
Color correct and enhance photographs of your property to maximize the impact of images on the internet and in print media
Install a high-security, computerized lock box to facilitate showings and track showings at your property
Display your home to our sales staff and other agents before listing for the most exposure
Immediately upon the listing, market, and display your home to hundreds of websites and buyer prospects
Promote your property by networking with Top Network Companies, salespeople, and active agents from other companies
Deliver your property information to top local and national agents the moment it hits the multiple listing service.
Promote your listing to over 2000 buyers that are actively searching on our customized buyer web platforms.
Install “For Sale” sign with personalized web page information specific to your property
Distribute a custom flyer outlining the key property features (optional)
Mail just listed letters to your neighbors
Reach more than 40 million potential buyers online monthly through property listing syndication, Search Engine Optimization, and Search Engine Marketing. Your listing will be showcased on thousands of consumer real estate websites. The following are just a few examples: Vylla.com, Homeseekers.com, Yahoo.com, Google.com, Trulia.com, Realtor.com, Zillow.com, and many others
Submit property listing for “Featured Home” position on Realtor.com – the #1 consumer real estate website with 7 million unique monthly visitors
Create and host a video of your property to be featured on Facebook, Utube
Advertise and host consumer Open Houses at the property (at seller’s convenience, optional)
Create buyer specific marketing in a specialized format

COMMUNICATION
Send you a printed copy and a link to the MLS presentation for your approval
E-mail you links to all the Internet presentations for your consent
E-mail you direct feedback from other agents on all showings
Call or meet with you weekly or bi-weekly to report on the activity and review market conditions
Provide regular updated written market reports showing the latest market activity
Continually review our marketing strategy and adjust as needed to get your home sold
Carefully review and present all offers for your consideration
Use unique and specialized sales approach in negotiations to optimize the overall outcome of your sale
Qualify the prospective buyers to be sure they can purchase your property.
Qualify potential buyers (if they are working with our office or team) before any written offer
Prepare a strong response or acceptance to create a reliable transaction that will close on time with no surprises

TRANSACTION MANAGEMENT

Manage all the details of your real estate transaction
Open escrow and review the escrow instructions
Arrange for the property, termite and other inspections
Supervise any agreed-upon home repairs.
Assist with all disclosures, including the seller’s TDS, supplemental

disclosures, smoke detector, water heater, and environmental hazard disclosures
Oversee the loan approval process to be sure your transaction closes on time
Coordinate and supervise the appraisal process to ensure the proper value.
Order the preliminary title report and review the condition of title
Order the HOA documents including the CC and Rs, budgets, by-laws and minutes of board meetings
Provide updated initial closing statements for your review
Stay on top of all other matters to be sure your real estate transaction closes on time and is hassle-free

SERVICE AFTER THE SALE
Arrange for your net proceeds to be wired into your bank account, (if you prefer)
Review the final closing statement for accuracy

What Is a California Transfer Disclosure Statement?

Please note, all forms in real-estate are important, but this one you may end up to defend it in court. My advice to you the seller is three things: Disclose, Disclose and Disclose. Experience shows, better to disclose even a minor thing then not to disclose. 

A three-page form is often used as supporting evidence in court when a buyer decides to sue a seller for non-disclosure. That's why it's very important that sellers fill it out correctly and disclose pertinent information, which may affect the buyer's decision to move forward with the purchase.

This form is self-explanatory, but there are a few tricky areas that some real estate agents do not fully understand. First, this form must be completed by the seller. An agent cannot complete this form for a seller under any circumstance. If you are unable to fill it out, ask a close relative to do it for you, but do not ask your agent.

Important Disclosures items

(see a blank copy of TDS here)

Date of the Disclosure: This is the date on which sellers complete the disclosure. If something changes between the date the TDS is completed and the property sells, prudent sellers will update the transfer disclosure statement.

Additional Disclosures: Sellers may want to make the buyer's future home inspection part of this disclosure by checking the appropriate box, in addition to including pest reports or any other type of inspection.

Occupancy: Sellers should indicate whether they are presently living in the property.

Section A- Systems, Appliances, and Other Items: The main thing you need to know about the transfer disclosure statement is that sellers are not warranting the condition of the home; sellers are simply disclosing its condition.

Section A is read across, not down, because some items to the right are associated with boxes to the left.

Sellers should check only the items that pertain to the home. For example, if your home does not have a sump pump or a gazebo, you would not check those boxes.

This section asks whether the home has a range, dishwasher, smoke detectors, rain gutters, pool, among other items. It also asks whether water is supplied by the city, a well, private utility, or another source. Check each box that applies. If you disclose that the home has window screens, for example, and there are no screens, the buyer might demand that you buy all new screens.

Moreover, if you do not know the age of your roof, do not make up a number. Also, do not say the home has 220-volt wiring if you are uncertain. If a buyer cannot connect a dryer because there is no 220 wiring, guess what the buyer may demand from you?

Remember to initial the first page.

Section B- Defects or Malfunctions: If you check "yes" to the question that asks if you are aware of any significant defects or malfunctions in any of the following items in Section B, you will need to describe them. Even if you do not think the defect is significant, you should probably disclose it anyway, especially if you have knowledge about it. Section B also puts the parties on notice that the home might not comply with government-mandated requirements.

Section C- Material facts and Special Questions: These 16 questions ask for a lot of information. Therefore, you should read each question carefully and think before answering.

For example, question 2 asks if there are features of the property that are shared in common. For instance, a fence is most likely a shared feature between you and your neighbor. If the fence was the subject of prior boundary disputes with your neighbors, you may also want to consider checking question 3 as "yes."

Question 8 asks about flooding or drainage. If rainwater puddles near your home, you should disclose that fact.

If you live on a busy street or your neighbor's dog barks, consider answering "yes" to question 11.

Buyers aren't likely to walk away from purchasing your home if they read that a dog barks or early morning trash collection trucks cause an occasional disturbance; they get upset, though, if those nuisances have not been disclosed.

Remember to initial and sign page 2 of the transfer disclosure statement.

Section D- Certification: From the seller, this certifies that smoke detectors are installed in accordance with regulations and that the water heater complies with applicable law.

Agent's Inspection Disclosure: If you are represented by a real estate agent, your listing agent will complete the agent's inspection disclosure. A buyer's agent will complete a separate section. Under no circumstance should an agent ever check the box that says there are no items for disclosure. There are always items to disclose.

Agents are often advised not to diagnose the problem or deficiency but should state it in simple terms. For example, if there are black spots in a shower, the agent does not know for certain if it is mold; therefore, it should be disclosed as black spots.

Note that real estate agents should disclose only what they observe. Agents are required by law to walk the property and note everything they see, even if it's a crack in the sidewalk.

Sellers sign page 3. Listing and buyer agents sign page 3. Buyers initial and sign the receipt.

Agents often try to submit additional disclosures near closing that are not required. The most common are the Water Heater and Smoke Detector Statement of Compliance and the Carbon Monoxide Detector Notice, which are included in the TDS on page 2 and are, therefore, redundant.

Call me anytime with your questions. 

562-715-8622