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Seller’s GuideIs it time to sell?Walking you through the process.
Tammy Russell Broker, [email protected] Realty & Construction4826 N. Croatan Hwy.Kitty Hawk, NC 27949
Table of Contents
• First Steps
• Is Now the Time?
• Determining a Price
• Selling Process
• Evaluating an Offer
• Negotiation Tips
• Due Diligence
• Home Inspections
• Closing Costs
• Walk Through
• Utilities
• Working with Real Estate Agents
The first steps to getting started
• Deciding if now is the right time to sell.
• Deciding how you would like to sell your home. Are you going to try to sell the home yourself or with an agent?
• Finding the best agent for the job.
• Deciding on a marketing plan.
• Preparing your home to sell.
• Find a REALTOR who knows the area, one with whom you feel comfortable with and one whom works full time and has experience in the area.
• Ask your REALTOR to set you up with automatic email service for new listings and price reductions based on your criteria. This way you will never miss a listing and stay ahead of the market.
Is the time to sell now?
There are many things to consider when deciding if now is the right time to sell. Market conditions and carrying costs for the home are two of the largest considerations.
The Outer Banks market has remained steady for the last two years. We do not expect any significant changes in the near future.
Carrying costs to consider.
Taxes Utilities Pool/Hot Tub Upkeep
Insurance Mortgage Yearly Upkeep
Any major projects that will need to be done soon. New HVAC, roof, paint etc…
Determining List Price
List Price
Sold Homes
Active Listings
How Quickly
You want to
Sell
There are many factors that go into your agents price recommendation. Your agent will look at what has recently sold, all similar homes currently on the market and how quickly you would like the home to sell.
The average home on the Outer Banks, as reported by the OBX Association of Realtors, takes 206 days on the market before it sells. This time reflects the firs day it is listed to the day it closes.
It is crucial to price the home accurately from the beginning.
Selling Process
Close and collect your
check!
Work through any home inspection
issues
Accept an offer
Price the home
accurately
Make any known repairs needed before
listing
Get a market value for your
home and marketing
plan.
Call an experienced
agent.
Evaluating an Offer
• The market is always changing. I will keep you informed of new listings and recent sales.• All offers should be made in writing and accompanied by a prequalification letter.• The offer will include the following: legal description and address of the property, offer price, earnest money,
due diligence date and closing date, any applicable addendums.• Once the offer is presented we will often negotiate counter offers verbally and then commit the final terms in
writing.• Once under contract the buyer will have a ‘DUE DILIGENCE’ period. This date should allow enough time for
them to complete any and all inspections that they may want to do on the home, review association documents, obtain a survey and elevation certificate, complete pest inspection and allow time for appraisal and final loan commitment. While in Due Diligence they can cancel the Offer to Purchase and Contract for any reason or no reason and receive their earnest money back in full. For this reason a long due diligence period is not in your best interest. A normal time frame is no more than 30 days.
• The most common addendums that could be included in an offer are Vacation Rental Addendum and Bill of Sale (if applicable) most homes, are sold furnished with a separate bill of sale.
Negotiating Tips
1. No emotion allowed in real estate. Once emotion enters the process either by multiple offers or an unreasonable buyer, you loose when you allow emotion to take over your decision making.
2. Cash Offers– Allows a buyer to close in a shorter time frame.3. If a buyer is obtaining a loan, be sure they have a prequalification letter to present with their offer.4. Make sure their offer is not contingent upon them selling a home first. 5. If they are asking for an extended due diligence period then asking them to offer a due diligence fee is
may be a good idea. Note: Due Diligence Fee is paid directly to the seller and IS NOT refundable. They are paying you to keep your property off the market for an extended time.
6. Be cautious of an offer presented without earnest money or a very low amount . Earnest money is deposited into a trust account and is credited towards the buyer’s purchase at closing. If they are a serious qualified buyer they should not have a problem offering a typical earnest money deposit.
Due Diligence
Now What?
Everything!
Things done during Due Diligence:
• Loan processing and final approval
• Lender Completes Appraisal
• Hiring an Attorney & Title Search
• Home Inspection & Mechanical Inspections
• Buyer Obtains Insurance and Determines Insurability
Due Diligence is a period of time that is defined in the NC Offer to Purchase and Contract, that allows the buyer time to fully investigate a property and decide whether or not to proceed with the purchase. They can cancel for any reason or no reason during this time and receive their earnest money deposit back in full.
What is a Home Inspection?
The purpose of professional home inspection is to provide information to the buyer concerning any major structural or mechanical problems that may exist with a particular home.
In addition to a home inspection, a buyer may opt to have a complete inspection of the HVAC system, pool and hot tub. Sometimes, a home inspector will advise a buyer to have additional mechanical inspections.
During Due Diligence the Seller will make the home accessible to the buyer’s inspectors.
All of this is designed to give the buyer, peace of mind. If any major issues are uncovered during the home inspection they can choose to accept the home as is, walk away and retain their earnest money or ask the seller for the issues to be repaired or give a credit at closing. It is important that a buyer understand that little things will always come up on a home inspection. They are to be expected. It is not a sellers responsibility to bring a home up to current building codes. The home inspection is to uncover major defects that the average person would not be aware of by simply walking through the home.
Closing Costs: Attorney: $500 - $700
Commission: Range based on type of
property.
Land Transfer: 1% of Sales Price
Revenue Stamps: $2.00 per $1000
Pro-rated property tax: Determined by closing date.
Loan Payoff:
Your agent can prepare an accurate net sheet.
Walk-Through & Closing:Walk-Through
Many buyer’s are from out of state and do not come to closing. If they are not coming to closing their agent may perform the walk through for them on the day of closing. This is to insure the buyer that the home is in the same general condition and that all items that are supposed to convey are indeed there.
Closing
Most closings involve at least one, if not two, out of town parties.
Closings in this area are not done with all parties sitting around a closing table. All negotiations are done prior to closing. It is not uncommon for both the buyer and seller to review and sign their documents in advance and overnight them back to the attorney for the scheduled closing date. This is normal in our market.
It is important to remember that in NC the sell is not complete until RECORDATION at the Register of Deeds has taken place. Funds will not be able to be dispersed until the deed has been recorded.
Utilities Accounts will normally be transferred from Seller to Buyer Effective the date of Closing. Utilities have to be on for the final walk through.
Local Utility & Service Providers:
Power:
NC Dominion Power – 866-366-4357
Water / Sewer:
Currituck County (Most areas are serviced by private septic tanks)
Water - Currituck County - 252.232.2769
Sewer - Enviro-Tech - 252.491.5277 (Pine Island, Currituck Club & Villages at Ocean Hill ONLY)
Dare County (Most areas are serviced by private septic tanks)
Water - Dare County Water Department - 252.441.7788 (Avon, Buxton, Colington, Duck, Frisco, Hatteras, Kitty Hawk, Roanoke Island, Rodanthe, Salvo, Southern Shores, Stumpy Point, and Waves.)
Water - Town of Kill Devil Hills - 252.480.4080
Water - Town of Nags Head - 252.441.1122
Water - Manteo - 252.473.2133
Telephone:
Both Charter and CenturyLink will Bundle Phone, Internet & TV.
Centurylink - 800.732.8010 or www.CenturyLink.comCharter Communications - 877.906.9121 or www.Charter.com
Television:
Charter Communications (Dare & Currituck Beaches) - 877.906.9121 or www.Charter.comCenturylink - 800.732.8010 or www.CenturyLink.comDirecTV - 800.347.3288Dish Network - 888.656.2451Medicom (Currituck Mainland) – 800-946-5388
Internet:
Centurylink - 800.732.8010 or www.CenturyLink.com (DSL)Charter Communications - 877.906.9121 or www.Charter.com (Cable)
WORKING WITH REAL ESTATE AGENTS
When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work for the seller. In others, the seller and buyer may each have agents. And some - times the same agents work for both the buyer and the seller. It is important for you to know whether an agent is representing you as your agent or simply assisting you while acting as an agent of the other party. This brochure addresses the various types of agency relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid.
SellersSeller's AgentIf you are selling real estate, you may want to “list” your property for sale with a real estate firm. If so, you will sign a “listing agreement” authorizing the firm and its agents to represent you in your dealings with buyers as your seller’s agent. You may also be asked to allow agents from other firms to help find a buyer for your property.Be sure to read and understand the listing agreement before you sign it. Your agent must give you a copy of the listing agreement after you sign it.
Duties to Seller: The listing firm and its agents must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission so long as they represent you. But until you sign the listing agreement, you should avoid telling the listing agent anything you would not want a buyer to know.
Services and Compensation: To help you sell your property, the listing firm and its agents will offer to perform a number of services for you. These mayinclude • helping you price your property • advertising and marketing your property • giving you all required property disclosure forms for you to complete • negotiating for you the best possible price and terms • reviewing all written offers with you and • otherwise promoting your interests.For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the sales commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.
Dual Agent: You may even permit the listing firm and its agents to represent you and a buyer at the same time. This “dual agency relationship” is most likely to
happen if an agent with your listing firm is working as a buyer’s agent with someone who wants to purchase your property. If this occurs and you have not
already agreed to a dual agency relationship in your listing agreement, your listing agent will ask you to amend your listing agreement to permit the agent to act
as agent for both you and the buyer. It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat
buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain
confidential information about them to the other party.
Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer.
This option (when available) may allow each “designated agent” to more fully represent each party.
If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important
that you have a clear understanding of • what your relationship is with the dual agent and • what the agent will be doing for you in the transaction.
WORKING WITH REAL ESTATE AGENTS
Buyers: When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them
to represent only you (as a buyer’s agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree
to let them represent only the seller (seller’s agent or subagent). Some agents will offer you a choice of these services. Others may not.
WORKING WITH REAL ESTATE AGENTS
Buyer's Agent
Duties to Buyer: If the real estate firm and its agents represent you, they must • promote your best interests • be loyal to you • follow your lawful instructions •
provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for
you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer’s agent, they may not give any confidential information
about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer’s agent, you
should avoid telling the agent anything you would not want a seller to know.
Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do
for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer’s agent without a
written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement before writing the
offer. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Be sure to
read and understand any agency agreement before you sign it. Once you sign it, the agent must give you a copy of it.
Services and Compensation: Whether you have a written or unwritten agreement, a buyer’s agent will perform a number of services for you. These may
include helping you • find a suitable property • arrange financing • learn more about the property and • otherwise promote your best interests. If you have a
written agency agreement, the agent can also help you prepare and submit a written offer to the seller.
A buyer’s agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from
the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer’s
agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation
provision.
Please feel free to contact me anytime with additional questions you may have or to get a customized market analysis for your home.
Tammy RussellBroker, RSPS
Beach Realty & ConstructionMobile: 252-489-8054Email: [email protected]: shopOBXhomes.comFacebook: Shop OBX Homes
