The Selling Process

When you list your home for sale with Harley L. Fisher,
you receive a 100% Satisfaction Guarantee and a commitment to 30 Action Steps
to get your home sold at the highest price in the shortest possible time.
Please be sure to visit both pages to understand the level of service that Harley provides his clients.

I. THE FIRST STEP: DETERMINING MARKET VALUE
The first step in selling your home is determining what it is worth in today’s market. Accurately valuing your home is a critical component of the selling process because if your home is overvalued it may not sell for a long time — if at all — even in a “hot” market. A Market Evaluation is not the same as an Appraisal. An appraiser generally looks at a more “static” value. Your Broker’s Opinion of Value is much more dynamic and should reflect current trends in the market and in your area in particular, as well as the current supply, demand and pricing of comparable properties. This usually results in a more accurate determination of market value than an appraisal.

In determining market value, comparable sales are reviewed, examined, analyzed and compared to your house in an objective manner. Adjustments for size, number of rooms, condition and special amenities or features are made with an eye to how current buyers in the market will compare your home to others. Remember, today’s buyers are well educated: they can readily see what is available and what has sold from a variety of sources including the Internet, their Broker and from their own house hunting experience.

If your home is overvalued it may not sell for a long time – even in a good market. In fact, it will probably sell for less than true market value had the price been right from the beginning. Why? Buyers know how long your house has been for sale and tend to offer less the longer a home has been on the market. Therefore, establishing an accurate market value and pricing your home right from the beginning is the first step in a successful and satisfying sale.

II. TERMS OF SALE
Once the market value has been established, the terms under which you agree to sell must be carefully considered. Common terms offered are cash (cash sales are very rare) and conventional financing (which means the Buyer obtains a conventional mortgage). Although the closing costs to a seller may be slightly higher, you may want to offer VA or FHA terms (often referred to as “government terms”), especially if competing properties are offering these options. Seller financing for a portion of the sale may also be something to discuss with your broker.

III. TIME FRAMES AND EXPECTATIONS
Your broker should be able to give you an idea how long similar and reasonably-priced homes were on the market before they sold and if there are any notable trends. “Days on Market” statistics are available for comparable properties in your area to help you and your broker determine a realistic time frame for getting your home sold.

V. LISTED FOR SALE
The work begins for you and your broker once your property has been listed for sale and all the paperwork has been signed. My job as your broker is detailed in my exclusive 30-Point Action Plan. Your job is outlined in our Tips for a Good Showing. Working together we can get your home sold quickly and well.

VI. CONTRACT NEGOTIATION
When someone makes an Offer on your home they do so in the form of a Contract. Your broker is obligated by law to present every Contract to you no matter how ridiculous it may seem. When you receive a contract you can: 1) Accept it “as is”, 2) Reject it completely, or 3) Negotiate modifications in the form of a “Counterproposal”.

The Counterproposal process is where the terms and conditions of the sale are negotiated, including price, possession dates, inclusions and exclusions, inspection time frames, closing date, etc. You are not Under Contract while a Counterproposal is being negotiated and can still entertain other offers. The Counterproposal process may require going back and forth a few times. You can choose to reject the offer at any time during this process and walk away without penalty — as can the Buyer. You will officially be “Under Contract” when you and the Buyer come to terms . . . but even then a few steps still remain.

VII. UNDER CONTRACT: INSPECTIONS & DUE DILIGENCE
Once you are under contract, the “Due Diligence Period” begins. This is where the Buyer will have the property inspected to make sure that the home is sound and that all the systems (plumbing, electrical, heating, cooling, mechanical, roofing), appliances and any other critical elements are in good working order. The Buyer can include anything in the inspection, from crime rates to environmental conditions, and can decide for any reason to reject the property based on any subjective criteria. The Buyer can choose to reject the property altogether or request certain repairs if there are any problems or defects in the property. As the Seller, you may accept or reject all or parts of the request and/or offer credits against the purchase price in lieu of some or all of the repairs. The Buyer will also inspect the title work (called a “Title Commitment”) during the due diligence period. Once the inspection and other due diligence issues are resolved, there are still a few other contingencies to be met such as the appraisal and loan approval.

VIII. APPRAISAL
An appraisal of value is a requirement of every lender. The lender’s appraiser will physically inspect and measure the property, then, by comparing it to similar sales in the immediate area, will determine its “Fair Market Value”. If the Appraised Value is less than the purchase price, then the Buyer is not obligated to pay more than the appraised value and can walk away from the sale if a compromise is not negotiated. If there are any “conditions” to the appraisal, i.e., the appraiser requires certain items be repaired for the loan to be made, the Seller will have to comply with the appraiser’s conditions prior to closing in order to complete the sale.

IX. THE BUYER’S LOAN APPROVAL
Once the inspection issues are satisfied and the appraisal is completed, the Buyer’s loan package is submitted for final approval. If the Buyer’s loan is not approved or they are unable to obtain the rate and terms specified in the Contract, they can still walk away without penalty. If the Buyer’s loan is approved, their lender submits the final figures to the closing agent. The closing agent is usually the title company who is providing the title insurance. The title company will tabulate all the figures and will provide the Buyer and the Seller with settlement sheets setting forth the debits and credits as well as other closing documents. As your broker, I will carefully review all documents and figures to ensure a smooth and accurate closing.

X. CLOSING
The closing is where all the documents are signed, money is exchanged and title is transferred from you to the Buyer. Closing usually takes about an hour. You can choose how you wish to receive your net proceeds: cashier’s check, money wired into your account, or a title company trustee account check. (A cashier’s check or having the money wired to your account is safest, but there is a charge for the service, usually around $25.00.)

XI. SOLD!!
Congratulations: You have just completed the sale of your property!

For more information about our approach to selling your home, please call or e-mail us today: 303-759-8811