sellers guide

CHAPTER ONE

Selling Your Home
Whether this is the first home you've thought about selling or the twentieth, the decision is a complicated one. Homes are often a great investment and choosing the right time to sell, negotiating the best price, and managing the process are all critically important to the ultimate return on your investment.

After working with hundreds of sellers, we can tell you that two issues are the most important throughout the entire process.

Organization
Real estate transactions involve many people and many pieces of paper! The ability to keep all your paperwork organized can help take a lot of stress out of the transaction. Keep the names and phone numbers of EVERYONE in a location that is easy to remember. Keep all your business cards and notes. These may include your bank, REALTOR®, title company, loan officer, contractors, suppliers, etc.

Write down as much as possible. This will help you to later remember conversations or events that happened.

Trust
It is virtually guaranteed that at some point during the selling process something will happen that will make your heart skip a beat. In nearly every circumstance it turns out to be a completely normal. Always talk to us before panicking.

Remember that every person involved has a vested interest in getting your home sold. If you ever doubt the integrity of someone immediately talk to us about it.

Objectives
In this early stage of the process, it is extremely important to think about your objectives. Why are you thinking about selling your home? Has your family grown or are there fewer people in the home? Did you take a new job in a different part of town? You probably have been thinking about the reasons and now is the time to write them down. Goals take on a new and more important level of meaning when you put them to paper.

CHAPTER TWO: Pricing Your Home

The first step in selling your home is determining its market value. As a general rule, the value of your home will be based upon the sales prices of the comparable homes sold in your neighborhood. We will work with you to show you what homes in your area have sold for, how fast they sold, and how they compare to your home. We will also discuss what homes are currently on the market and how they are priced. In setting your price, you should consider the following:

Recent "Comp" Sales:
The sales price of homes sold in your neighborhood during the past six months will determine your home's value in the eyes of appraisers and lenders. Almost every transaction depends upon lender financing in some way, and bank financing is always contingent upon an independent appraisal. In the appraisal process, the bank will look at recently closed sales in your neighborhood taking into account differences in square footage, lot size, and other amenities such as pools, tile, and other upgrades. Marketing, advertising, and staging tactics such as clutter removal, cleanliness, landscaping, and decorations are very important to drive traffic of interested buyers and convince someone to make an offer. However these actions have minimal impact on the appraised value of the home. Good sales tactics can often get you an offer for a high price, but if the house doesn't "appraise" well, the buyer may back out of the deal. Recent comps should be your most important consideration in setting your sales price.

Condition of Your Home
In Arizona buyers have high expectations! Many potential buyers are accustomed to viewing model homes and their decision on whether or not to make an offer are impacted by the feeling they get when they walk through the home. In a competitive bidding situation, the emotional impact your home has on a potential buyer will often determine whether they wish to make an offer and how much they may be willing to pay.

Expected Time on Market
In general, the lower you price your home, the quicker it will sell. Pricing high relative to other homes in your neighborhood can mean a longer time on the market. However, we can usually help you prepare your home with staging and marketing to maximize its visual impact and minimize the time on market. The longer your home sits on the market the lower its value. The buyers will be saying to themselves, "There must be something wrong with this house" and will either buy a different house or make a low offer on yours. A seller only has the advantage in negotiations for the first 30 days after a home is placed on the market.

CHAPTER THREE: Preparing Your Home For Sale

At Hahn-Lowry and Associates, we pride ourselves on our ability to help you prepare your home for sale! Your best offers are likely to come soon after the house his the market, so it is important to make sure your house looks its best before you list it.

A well prepared home inspires the buyer's confidence even after you accept their offer. It helps them feel good about their decision to purchase your home. Confident buyers are proud of their decision and are easier to work with during the inspection period. They are much less likely to request repairs or price concessions later in the process. This means a smoother, more hassle-free inspection period for your buyer and a better likelihood that your transaction will close on time.

We are often asked what types of home improvements yield the best return-on-investment. This is difficult to determine because your home's value is based less on how much you put into it and more on how it compares with others in the neighborhood. The following table can help give you an idea of how home improvements might impact the sales price of your home. While these figures are only estimates, they are based upon years of experience with hundreds of buyers. We'll go into each of these in detail on the following pages.

IMPORTANT THINGS TO CONSIDER IN PREPARING YOUR HOME FOR SALE:

Complete All Remodeling and Any Repairs: It is very important that your home appear finished and "move-in ready." Now is the time to repair all drywall damage, finish that bathroom-tiling project, or replace the leaky faucet. The more perfect your house appears in the beginning the less likely a buyer will be to suspect hidden problems. Even one or two small surface problems can lead a buyer to intensify their inspection efforts and demand major price concessions or repairs later in the escrow process. Everything in your home should be in excellent working order when the home is listed and must remain that way until the transaction closes.

Freshen Paint and Other Finishes: It is usually not necessary to repaint your entire home, however, any dirty or damaged areas should be touched up. Additionally, accent walls painted with a striking color may look out of place in an empty house. Everything should look clean and fresh.

Professionally Clean Your Carpets and Tile Grout: This is one of those things that can make a big difference in the appearance and smell of your home.

Remove All Household Clutter: Many sellers decide to put extra furniture and household items into storage while their house is on the market. You want to show off the home and its space, not your personal belongings.

Plan for Your Pets: If you have pets, make plans for them. Be considerate of the visitors coming in and out of the house. Many people are allergic to animals, and it's tough to enjoy a home with a barking dog.

Professionally Update Your Landscaping: All trees should be trimmed, weeds eliminated, and yard debris completely removed. Grass should be green and inviting while flowers should be bright and healthy.

Consider a Home and Termite Inspection: It is very likely that the buyer will hire both a home and termite inspector, so it makes sense for you to know ahead of time if your home will have any issues. Also, it gives you a chance to fix any problems before a buyer ever sees your house. If you already had a recent professional inspection completed, the buyer may waive the inspection period.

CHAPTER FOUR: Staging Your Home

What is Staging?
Staging a home is very different than decorating it. When you decorate your home, your goal is to reflect your personal style in a space where you and your family live comfortably every day.

Staging, on the other hand, is all about neutralizing any of your personal style, removing from view most objects your use in your everyday life, and showcasing the home's many possibilities. The goal is to enable a random visitor to picture the house as theirs, not yours!

The best arrangement of furniture for living in a house is usually quite different than the best arrangement for showing it to buyers. It is also important to minimize or remove from view many of your personal mementos and household items.

According to a recent article in The Arizona Republic, the typical cost of independent professional staging is $1,500 to $10,000, depending on the size of the home and the amount of furniture needed. At Hahn-Lowry and Associates, we believe strongly that staging is one of the most practical and important ways to sell your home quickly and bring the highest price for you. That's why we professionally stage every house we list for no additional charge.

Our goal is to make it easy for a potential buyer to visualize your space as their home. Rearranging furniture and storing personal items can be uncomfortable, but the payoff is huge. Remember, if your house still feels like your home, the odds are that the buyers won't be able to imagine it as theirs.

What to Expect
We will set up a time with you to have our professional stager visit your home and develop a plan to get your house ready to sell. It is likely that we will make recommendations on re-arranging your furniture, putting away personal family items like toys or hobby items, and packing up and storing certain other items, We will even provide you with packing boxes to help! We may make suggestions on household repairs or re-painting if necessary. We often recommend professional carpet cleaning and landscape trim ups, too. Of course, we will help you schedule and arrange anything that needs to be done. We want to make this process as smooth as possible for you and your family.

Finally, we may also bring into your home certain furniture, decorative items, and wall art. Our goal is not to decorate your home, but only to draw the buyer's attention to certain spaces or highlight features that might otherwise go unnoticed. We may leave certain spaces totally clean and open. Remember, we want the buyer to "imagine the possibilities!"











HERE ARE SOME EXAMPLES OF THE IDEAL END RESULT WE HELPED











OUR SELLERS CREATE:
Notice how the furniture placement in this room is clean, simple, traditional and almost impersonal. All of the family's personal items such as magazines, electronics, family photos and craft items have been removed from view. Most importantly, the staging clearly demonstrates to a buyer how to optimize the functionality of the space.

Good bathroom staging is all about removing any trace of personal hygiene items such as toothbrushes, razors, creams, make-up, etc. Replace these with two or three purely decorative items that help the bathroom appear clean, up-to-date and fresh. In the picture to the right, we added some nicely scented potpourri and fresh, new and unused towels. We often add a new shower curtain to give the home a fresher look.

In this kitchen, we helped the owners put away their small appliances and other cooking items and replaced them with a vase of flowers, a stereo playing nice background music, and marketing information. With the counters so uncluttered and open, it's easy for potential buyers to appreciate the beauty of the kitchen.

This staging is intended to help potential buyers notice the great space available in the loft. The small scale and neutral style of the furniture highlights the size and potential of the space, and the lack of clutter helps the area look fresh and clean.

This very simple patio staging highlights the size and possibilities of the space. The look is very clean with the bushes trimmed, the weeds pulled, and the gravel freshly cleaned.

This room tended to be a bit dark, so our goal was to brighten its appearance. Notice how the pillows and lamp add accents and life to the area. We also brought in some flowers and artwork to add a warm, comfortable feel.

MAINTAINING THE LOOK THROUGHOUT THE LISTING PERIOD
One of the hardest aspects of selling a home for most people is maintaining that "just staged look" for the many weeks that their home is listed. Here are some ways for you to keep your staging fresh while your home is on the market.

Lighting: We will help you stage your home and show you which lights should be kept on during the day. Be sure to replace any burned out light bulbs. Drapes, blinds, or curtains should let in as much natural light as possible.

Temperature: The temperature should be kept comfortable all day - no warmer than 78 degrees in the summer and no cooler than 68 degrees in the winter.

Smell: We may provide fresh flowers or potpourri for the information table along with strategically placed air fresheners.

Sound: Music from your sound system or our CD player will help your home feel more welcome to REALTORS® and potential buyers.

Pets: Pet food and supplies should be kept completely out of view. In particular, pet hair must be scrupulously cleaned off furniture and carpets everyday while the house is on the market. Also, a dirty litter box and /or droppings in the yard are major turn-off for potential buyers.

Personal Items: It is important to have empty cupboards, closets and bins in the house that will allow you to quickly pick up and hide toys, clothing, supplies and other items. Check for toothbrushes and other personal items in the bathroom then put out fresh towels and decorative accessories that will transform your everyday bathroom into a "wow" room!

Roll Out the Red Carpet: You should keep your house clean and clutter free at all times. It is particularly important to keep dishes and laundry put away. We understand how stressful it can be keeping your house "ready for company" at all times. It's tough to live in a house and show it off at the same time! Rest assured, it's worth it -- the cleaner you keep your house, the quicker you will be rewarded by a great offer and a smooth close.

CHAPTER FIVE: Listing Your Home

Once your home is ready, we will work with you to prepare all the paperwork to put it onto the market. Some of the paperwork you will review and sign during the listing process includes:

Listing Agreement/Exclusive Right to Sell: This is the document you use to hire us to sell your home.

Agency Disclosure: This explains how we legally represent you as the seller.

MLS Profile Sheet: This contains all the information that will be used to advertise your home on the Arizona Multiple Listing Service, the tool most used by buyers to find a new home.

Lead-Based Paint Disclosure: This must be completed if your home was built before 1978.

Seller Property Disclosure Statement (SPDS): You are required by law to disclose to potential buyers all information you know about your home which would reasonably impact a buyer's decision to purchase or the price they would pay. This form provides a convenient format to disclose what you know about your home. It will be provided to a buyer after you accept their offer. You are required to continue to disclose any material facts to the buyer throughout the escrow process up to the closing date.

After the paper work is completed, we will list your house, put a sign in the yard, put a lockbox on your door, and begin marketing your property!

CHAPTER SIX: Marketing Your Home

Your home will appear on the Arizona Regional Multiple Listing Service (MLS), the tool used by most buyers to find their new home. Your home will be advertised on our website, on Realtor.com, and on many other websites with links to the MLS. As part of the process, we will take many pictures of your home, some of which will be used in a "virtual tour" on the listing website. In addition, we will provide full color Listing Flyers to all potential buyers during this phase and Silent Sellers during the walkthrough phase (samples of both are shown).

We may set up information tables that include a place for REALTORS® to leave their business cards. We will also proved bottled water and wrapped candy treats as a courtesy. In general, we want potential buyers to feel as comfortable and welcome as possible.

We will stay in touch with you as REALTORS® show your house, providing feedback on price, features, and anything else we learn.

CHAPTER SEVEN: Showing Your Home

You may start to get calls from REALTORS® as soon as your home is listed on the MLS. They will want to show it to their prospective buyers. You should be as accommodating as possible and provide times for them to show the house. While other REALTORS® and their clients are in your home, you should give them as much space and privacy as possible. And remember, it's common to receive only ten or fifteen minutes notice from a REALTOR® who wants to show your house, so refer to our Emergency Checklist below for great tips on quickly staging your home at the last minute.

EMERGENCY CHECKLIST

Last minute things to take care of

Hide all clutter and personal items: Use large plastic storage bins or bags.

Open all window blinds and curtains: You want your house to feel as bright as possible.

Turn on all lights: A dim room or space appears smaller than a bright one.

Make sure soft music is playing: Acoustic is best and will make their tour more pleasant.

Ensure that pets are out of view and not a distraction: Many people feel uneasy around animals or have allergies.

Light a mildly scented candle: A candle may help cover up recent cooking odors, etc.

Grab the extra set of house keys: If the REALTOR® leaves before you return, you may get locked out.

Should the REALTOR® or buyer have any questions about the house, ask them to contact us. Every piece of information you give out may give the buyer a reason to lower his offer, or possibly, a reason no to buy at all. Direct all questions to your agent. The best thing to do is to go for a short walk when the buyers arrive to avoid having to answer any questions. Just be sure to take a key so the REALTOR® doesn’t lock you out.

CHAPTER EIGHT: Accepting an Offer

When a potential buyer decides to make an offer, their REALTOR® will usually fax it to our office. We will call you right away and arrange a time to review it with you in detail.

In Arizona, the form of the buyer's offer is actually an entire purchase contract signed by the buyer. If you sign it and send it back, the document becomes the binding contract. Therefore, it is critically important to review all the terms and conditions of the offer. Particularly important to consider are the following:

Purchase Price and Financing Terms: The Buyer will specify the total price they are willing to pay and the financing they need in order to complete the transaction.

Earnest Money: The buyer will usually provide to their REALTOR® a check intended to show their "seriousness" in purchasing the home. The REALTOR® will hold the check until you accept the contract, at which time it will be deposited with a title company as a deposit toward the purchase price. This earnest money is refundable to the buyer if any of the contingencies are not met or if the seller does not perform to the terms of the contract. However, if all contingencies are met and the buyer breeches the term of contract, the title company may refund the earnest money to the seller in the form of liquidated damages.

Contingencies: All sales are contingent on the inspection process and most are also contingent on the buyer qualifying for financing. However, sometimes the buyer will specify that the sale is also contingent on the sale of their existing home, or on the seller providing special financing consideration.

Fees: There are many closing costs involved in a real estate transaction and most of these are negotiable between the buyer and seller. In the offer, the potential buyer will propose who will pay the various fees.

Closing Date: The buyer will propose a close of escrow date.

Inclusion of Personal Property: Any items attached to the home are automatically considered part of the house. This includes light fixtures, curtains and curtain rods, stoves and dishwashers, bathroom mirrors, and built-in grills unless otherwise noted in the contract. The buyer may specify other items they want included such as the washer and dryer, refrigerator, sound system, patio set, etc.

Offer Expiration Date: The buyer will indicate an expiration date and time for the offer, this is typically about 24 hours after which the offer is no longer valid.

Loan Status Report: The buyer may provide a document from their financial lender that states that the buyer has been conditionally approved for a loan. This can be useful information, but it does not necessarily guarantee that the buyer can and will get the financing.

There are many other important terms and conditions in the contract, and you should take your time to review everything in detail. We will answer as many questions as we can, and if you are unsure about anything, you should not hesitate to contact a real estate attorney. We can provide names and numbers of attorneys who can provide legal advice with quick turnaround times at reasonable prices.

It is possible that you may receive multiple offers at the same time. We will help you compare the terms of each offer, the qualifications of the buyers, and think through your options. You may want to counter-offer one or more of the offers, which means sending a response in writing back to the buyer with changes to one or more of the terms of the offer. The buyer may then accept your counter, or counter-offer you again. It can be a hectic process, however, our goal in the end is for you to accept a contract that you are comfortable with.

CHAPTER NINE: Inspection Period

Most purchase contracts in Arizona specify a ten-day inspection period to begin the day after contract acceptance during which time the buyer can inspect the property. Most buyers hire professional, licensed home inspectors to go into the house and inspect all the major systems. The inspector provides a written report outlining his or her findings. The buyer will also arrange for a termite inspection. Some buyers will also hire roof inspectors, air conditioning inspectors, pool inspectors, or other specialized inspectors. After these inspections, but within ten days, the buyer has the right to provide the seller a list, in writing, of items they want the seller to repair or replace. The seller then has up to five days to respond, in writing, indicating which items they will or will not fix. The buyer then has up to five days to either accept this or cancel the contract.

Properly preparing a house before listing it can help make this process go smoothly. As you can imagine, if the buyer finds a lot of things to repair or replace, it can become a rather expensive proposition for the seller. Many times the buyer will ask for items to be repaired by licensed professionals and the cost may be higher than it would have been if you had done it yourself ahead of time. In the end, you must weigh the cost of repairs versus the possibility the buyer may back out of the contract.

After the buyer and seller have agreed on the repairs to be done, the inspection period is over and the escrow period continues until the close date.

CHAPTER TEN: Closing and Moving Out

As the close date approaches, you will be contacted by the title company and asked to provide your mortgage information so that your current mortgage can be paid off at the close of escrow. By completing the Request For Loan Information form, we can have this information on file ahead of time so you won't have to later dig through your moving boxes to find it. The title company will also contact your to schedule a time to sign your closing documents. Many people believe that simply signing the closing documents means the transaction is closed, but this is not true. Your home isn't officially sold until the buyers have signed all their documents, their lender funds the loan, the title officer distributes those funds to the appropriate parties, and the title officer officially records the deed that transfers title.

You will also need to begin preparations to move out, either into a temporary housing or into your next home. If the house closes on time, the buyers will usually be entitled to receive their keys and move into the house the same day. Keeping that in mind, here are some things to consider as your close date approaches:

Scheduling Movers: You should plan to be out of the home and have it reasonably cleans no later than the night before the scheduled close day.

Turning Off Utilities: Utilities, water and trash, electricity, gas, etc., must remain on up to and including the day of close. You can schedule to have your name taken off of them beginning the day after close.

Services to be Discontinued: Notify the post office, telephone company, the cable company, the gardener and pool services of your move. You will also need to have your driver's license address corrected.

Transferring Keys: You should arrange with us ahead of time how you would like to transfer keys to the new owners. Some sellers leave the keys with the title company, others with the REALTORS®.