The Selling Process

"I am interested in selling my home or land in Carteret County or any of the surrounding cities here in Eastern North Carolina. What do I need to know in order to sell Real Estate in this area?"

Our selling guide will help set your mind at ease as we will cover the process from start to finish and touch on many of the questions and expectations in today's Real Estate market. This guide will address the current trends in financing, buyer's thoughts, market conditions, and helpful tips that will maximum your chance to sell your Real Estate and achieve your goals.

• Understand your situation and motivation
• Interview or select your Realtor
• Determine Market Price
• Preparing your home for selling
• Listing Paperwork
• Property Marketing
• Feedback
• Receiving an offer
• Inspections & Repairs
• Moving Checklist and Utilities
• Packing and Cleaning
• Closing Procedure
• Tips for a successful showing
• Safety Hazards

Step One -- Understand your situation and motivation

These are the most important questions to ask yourself when selling your property.

• Exactly why am I selling? Examples are job transfer, health, finances, closer to family (grandchildren), need more/less space, lifestyle change
• What is my timeframe for selling?
• What is my loan payoff amount? This includes primary mortgage and any additional mortgages or liens on the property
• Rate the overall condition of your home and highlight any areas that may need attention. Examples may be that the walls are scuffed, a window is stuck, loose bricks on the porch, or the siding needs repair.

Step Two -- Interview or select your Realtor

This is a very important decision because you are hiring a Real Estate Firm to represent your best interests and creating a business relationship with agents as well. There are many types and sizes of offices to choose from. There are independent agents, small independent agencies, regional and national franchises. All of the agents within these companies are members of their local Real Estate Board and Association and should focus their marketing efforts on Real Estate in these areas. You may contact the local board office (Carteret County Board of Realtors) to ensure that the agents you are considering are in fact active members. You may also want to contact the NC Real Estate Commission to see whether or not the agents you are considering have a background of complaints with the State.

Licensed Real Estate agents do not all practice and market Real Estate the same way. Each has their own marketing plan and objective for selling your property. There are full time agents, part time agents, and retired professionals with licenses to help friends and family, and more. Also, some agents work in teams and some work as individuals. When considering a team, make sure you understand who the team leader is and also, if you are not dealing directly with a team leader, make sure you receive the statistics for the individual agent you are dealing with. Team statistics can be misleading as there are typically heavier producers within the team than others.

Of course we feel that RE/MAX Ocean Properties gives any seller the best advantage to a successful sale in this coastal region. We are happy to sit down with you and explain our marketing strategy and the advantages we offer our clients when selling homes, land, or investment property.

Contact us now.

Step Three -- Determine Market Price

Well it's not quite that easy but that is the basic concept. Matt & Meredith will create a comparable market analysis (CMA) showing you all of the recently sold homes in your area that are comparable to the home you are selling. We will focus on the location, style, age, number of bedrooms and bathrooms, sq/ft, and other similarities to get you the most accurate market price for your home. We will access detailed sales stats and reports that will give a clear starting point for valuating your home. We will also study current active listings to see exactly how you compare with the competition. This is the basic work to establishing a marketing price. We will take into consideration all your answers from #1 (Understand your situation and motivation) before settling on the final listing price.

Step Four -- Preparing your home for selling

This is of course our most popular section of the selling process along with our "Additional Tips for Selling" guide. The number one mistake sellers make is getting overly anxious to sell before the home is "market ready". Here are the most important rules to follow when getting your home in shape to sell. Keep in mind that this is a competition between your house and many others. Buyers tend to choose those homes that require less or little maintenance at the time of purchase and are willing to pay a premium in many cases.

• Curb Appeal - This is your first impression when buyers pull in the driveway or ride by your property. If you have a yard, manicure it like you are preparing for a wedding party with 300 guests. Mow, edge, weed eat, remove all weeds, lay new mulch or pine straw, and trim back any over grown scrubs or bushes. Pressure-wash the exterior, clean your gutters, repaint your window trim and front door. Stay neutral to appeal to the masses. Tighten any loose hand rails, touch up paint on the porches and repair any rotten wood around exterior doors and windows. Matt and Meredith will be happy to help you make a list of items or refer companies to perform these tasks for you. Remember, clean sells before dirty, and modern sells before dated
• MAXIMIZE YOUR SPACE -- You have heard the term de-clutter and that is a great term to use, however understanding what to de-clutter and where to put the clutter is the real key. Here is a quick guide to use:
• Kitchen - go cabinet to cabinet and remove everything you don't use on a day to day basis. Pack up non essential items such as rarely used pots and pans, cups, silverware, dishes, spices, medicines, or anything else that is not mandatory for getting by in the kitchen. Put these items in sturdy boxes and label the boxes after taping them shut. This also helps put you in the mindset of a seller, that you are moving on and this is a jump start of what is to come once the house is sold. Next, clear the counters. You should have enough room in your cabinets now to put away your coffee maker, toaster, and decorations. Remove anything from the refrigerator door or top. This includes magnets, pictures, etc.
• Bedrooms - Remove personal photographs and pictures from the room and clear any furniture of collectibles that are not neutral in style or taste. Make sure the floor is clean and free from debris. If the walls or ceiling are painted in non neutral colors, you will want to repaint them as well. Replace any personalized wall art with neutral art that is conforming to the area. Your closets are the most important part of your rooms. Remove all belongings from your closet floors and remove anything that is unseasonal or has not been worn for some time. We have a tendency to save clothing which inturn makes our closets look "stuffed". Nobody wants to buy a house with a "stuffed" closet as they will be concerned that their own clothes will not fit. This is a good time to say goodbye to old clothes by donating them or holding a yard sale.
• Bathrooms - Give your bathrooms a very nice cleaning and remove any clutter from the countertops. Make sure you keep your bath items in a cabinet and out of plain site. Set out or hang fresh new hand towels that add some color to the room.
• Living Areas - The idea for the living areas is similar to the rest of the home. Remove personal photographs and pictures from the room and clear any furniture of collectibles that are not neutral in style or taste. Make sure the floor is clean and free from debris. If the walls or ceiling are painted in non neutral colors, you will want to repaint them as well. Replace any personalized wall art with neutral art that is conforming to the area. Again, your goal to is transform your home back into a house and give a potential buyer the ability to vision themselves here and their personal items in your space. You also want to maximize your floor space so you may want to consider rearranging your furniture or removing extra sofas or chairs that are not essential. There are wonderful "home staging" professionals that can help you with this task. Take all of your personal and none essential items and pack them away in boxes.
• General areas and interior tips - Go window to window making sure each one opens and closes smoothly and clean the windows and screens as you go. Do the same for each exterior and interior door. Check each lock for functionality and repair anything that is not working properly.
• Garage - Oh boy! This area can be challenging as garages are a great place for spillover items. Your goal here is to again show a maximum amount of floor space and storage as possible. Make sure the floors are swept clean and the windows are also clean and operational. Remove any non essential items from the garage or storage sheds.
• STORE & CLEAN! - Depending on the amount of items you have packed away and determined are non essential to day to day living, you may need to rent a storage unit while the home is on the market. There are a variety of climate controlled and secured sites that are available in the area. Many of these sites also have moving trucks available or can put you in touch with a truck rental service. Once your house is free from these items go ahead and give it the best cleaning you can. You may want to consider a professional cleaning service and carpet cleaning as well.

Step Five -- Listing Paperwork

There are several forms that you will sign during the listing process. These forms are available for download below. Your listing agreement will cover price, commissions, listing timeframe, incentives, any personal property that may be staying with the homes, and any fixtures you may plan on taking out during the sale. Several other questions are covered as well, but these are the most discussed by our clients. We will take you through each form making sure you understand exactly what you are signing.

Download - Listing Agreement for Residential Homes
Download - Residential Property Disclosure Form
Download - Working With Real Estate Agents Form

Step Six -- Property Marketing

Your home is now ready to market and Matt & Meredith will begin the photographing of your house. Pictures speak a thousand words and these photos will be posted all over the Internet for marketing purposes. By completing the items in our "Maximizing your space" section, your house will be more appealing to online shoppers than houses that have not taken these steps. Because nearly 80% of home buyer's use the Internet for home shopping, you want to make sure your house appeals to them to the point they are interested in making a personal visit. Sellers rarely realize how many homes are eliminated from a buyer's list simply from the online photos and virtual tours. We will continue with our full marketing approach from this point forward which includes placing a RE/MAX for sale sign in the yard and an electronic key box on the door or fixture. It takes 48-72 hours for the entire marketing plan to be in effect for your home.

Step Seven -- Showing your Home

During the process of signing your listing paperwork, we will go over the "showing instructions" for your home. These instructions will include time for access, special instructions for pets, who to notify for showings and additional phone numbers. All showings are issued through RE/MAX Ocean Properties and each agent is aware of your showing instructions. Monday through Friday 8:30 - 5:30pm, RE/MAX Ocean Properties has a dedicated staff member answering the phone to assist in scheduling these showings. During the weekend and after hours, our agent on duty or Matt & Meredith will contact you for scheduling. The agent showing the home will request a specific timeframe for the home to be available. We only allow licensed Real Estate agents who are members of our local board to assist a buyer interested in viewing your home. They will utilize the key inside the electronic lockbox to access the home. It is common for an agent to leave their business card behind as a courtesy to let you know that they have been inside the home. No one is authorized to access your home without proper notification and permission. Also read "Tips for a successful Showing."

Step Eight -- Feedback

Feedback is the direct information we receive from a potential buyer that has visited your home. We ask for positives and negatives and any suggestions that may improve our ability to receive and offer for purchase. You need to understand that everyone has an opinion and we do not all like the same things. The goal of feedback is to gain useful information that can help sell the home. There are many software programs available for obtaining quality feedback from your showings, however we choose the old fashion way of picking up the phone and asking for it. In our experience, direct contact yields more substantial information than a fax or e-mailed questionnaire.

Step Nine -- Receiving an offer

We just received an offer from a buyer.. In North Carolina, most offers are presented using the "Offer to Purchase and Contract Forms," provided by the NC Real Estate Commission. As we review the offer, we will discuss the following items:

• Offer Price - Initial offer price for the home - this offer may be accepted, or it may be counter-offered several times before reaching an agreement on price and terms.
• Amount of earnest money offered. Earnest money is "good faith" money presented to the seller which shows the buyers intent to complete the purchase once all the conditions of the offer are completed. This money is deposited only when an offer is accepted. This money is applied to the total purchase price of the home at the time of closing. We will explain to you how earnest money may be distributed in the event the transaction is not completed.
• Type of loan - conventional 15 year or 30 year, cash, VA loan, FHA loan, USDA loan, owner financing, etc. Loan rate and percentage of down payment.
• Type and dates of inspections - Most buyers will make the purchase contingent on a Home Inspection to be performed by a licensed home inspector. The report provides the buyer with a detailed report on the working conditions and maintenance of the home. This report will be used to negotiate repairs that may be necessary before purchasing. A wood destroying insect inspection may also be recommended. A home inspection report may range from $250.00-$500.00 and a pest inspection around $80.00. These are usually paid by the buyer at the time of the service.
• Negotiated furnishing, appliances, and other household items
• Closing Date - this is when the buyer wants possession of the home and when the money is exchanged.
• There will be other items to discuss depending on the age, location, and type of homes.

Matt & Meredith will present the terms of the offer and communicate any negotiations on your behalf. Once the buyer and seller agree on all pricing and terms, sign and date all relevant paperwork, you will be "under contract" and the contract to closing process begins.

STEP TEN - Inspections & Repairs

There is a time period between the date of the executed contract and the actual closing date. This can vary between type of property, financing, and other personal factors. In most cases, the first item to address is the home inspection. We will coordinate a licensed home inspector to visit your home on a particular time and date. They will be performing a variety of tests and completing a report for the buyer. For a better understanding of this process, please download (Questions and Answers on Home Inspections). In the event there are items from the inspection report that the buyer would like to address with you, they will submit a request for repair detailing the findings and their desired outcome. At this point we will explain to you the options and timeframe you have to respond to the request. Depending on the buyer or loan type, there may be additional inspections to the water or septic system. They buyer may also perform a WDIR (wood destroying insect report) completed by a licensed inspector. These repairs, if any, would also be delivered via a formal request. It has become increasingly popular for seller's to have their own home inspection done prior to listing the home in order to be more prepared.

STEP ELEVEN - MOVING CHECKLIST & UTILITIES

Review your moving checklist and be prepared to forward your mail, cancel utilities, and inform all necessary people and businesses of your pending move.

Click here to view Moving Checklist .pdf

STEP TWELVE - PACKING AND CLEANING

Prior to the closing of your house, the buyer will typically request a final walk through of the property to ensure that the condition of the home is comparable to the condition as when is what originally shown. This walk through normally takes place a couple days prior to the closing, or in some cases, just before the closing. To ensure a successful walk through, we recommend that all packing be completed at least 3 days before the set closing date. FYI - in today's Real Estate lending conditions, closing dates can be delayed for a variety or reasons, therefore Matt and Meredith will be speaking with you frequently during this period with updates on the closing status. Final cleaning needs to include the following items:

• Clean refrigerator and freezer (if applicable)
• Clean Oven and Stove
• Change all air filters
• Wipe down base boards and window sills
• Vacuum all carpeting and mop all solid surface flooring
• Wipe empty cabinet drawers
• Wipe clean all counter tops
• Clean Toilets and Bath Tubs

Closing Procedure - (click here to see a sample HUD-1 statement)

The process of the closing is to transfer the title (deed) to the new owner's, exchange compensation, and actually record the deed in the new owner's name. As a seller, you are going to be responsible for signing the deed transfer, the HUD-1 settlement statement, and occasionally a couple of additional waiver's depending on the type of loan the buyer is using. The closing time for a seller usually takes 15-60 minutes depending on the amount of questions you have for the closing attorney. In some cases, the seller chooses to have a separate attorney handle their side of the transaction instead of using the same attorney preparing the buyer's documents. In that event, the seller's attorney will transfer the signed documents to the buyer's attorney for final closing. It is certainly more common for the buyer and seller to use the same attorney. The fee to the seller typically ranges from $100.00-$200.00 for this service. The attorney selection will take place several weeks prior to closing and is not a last minute selection. The attorney will contact your lender and get all payoff information for your loans or any additional liens on the property. They will also handle the transfer of funds to those lenders. Finally, they will prepare and record the deed transfer paperwork and handle the recording at the courthouse. Your proceeds are usually dispersed within 24 hours of closing. The following items will be deducted from your proceeds at closing: (Not all closings are the same, therefore you may have additional fees or fewer fees than what is shown below)

• Attorney Fees
• Real Estate Commissions
• Deed Preparation Fees
• Document Transfer Fees to your Lenders
• Excise Tax (divide total sales price by 500, Ex: Sales price is $200,000.00 / 500 = $400.00)
• Prorated County & City Taxes

Tips for a successful showing:

• Maintain a very comfortable air temperature. 72 degrees is an ideal showing temperature.
• Clean the home
• Put toilet lids down
• Empty trash cans
• Fresh baked goods or any other attractive fragrances are a plus
• Turn on all your lights
• Play soft, neutral music
• Keep cookies or candies on the counter in an obvious dish or location to make sure the buyer and agent recognize the gesture
• Coffee, lemonade, or iced tea are also welcome
• Open blinds to allow as much natural light in the home as possible

Safety Hazards:

• Store away any medicine or prescriptions
• Put away all valuables or store in a safety deposit box
• Remove or lock away and weapons in the home
• Refer any knocks on the door to Matt & Meredith.