Selling Process
The first step to a successful closing is understanding who is actually involved.
Sellers and Buyers : the party involved in selling the property and the party involved in buying the property.
Mortgage lenders: The mortgage lender, who provides financing to the buyer and may or may not attend the closing.
The Title
What is a title?
A title to a piece of property is essentially the evidence that the owner is in the lawful possession of that property.
Who needs title insurance?
Buyers and lenders both need title insurance in order to be insured against those possible title defects such as another person claiming to own the property, improperly recorded documents with the county, and other things such as fraud, forgery, liens, encroachments and any defects.
Who pays for the policy?
State laws and customs vary on who pays for the title insurance, but home buyers typically cover the costs for the lender's title insurance as they are the one who is taking the loan from the lender.
Common Home Inspections
Roof, pest, (Dry rot & termites). Sewer, chimney, and whole house inspections. Depending on the property you can also have a pool, foundation, well, or heating and air inspection.
Escrow
What is escrow?
Escrow is a neutral third party or attorney that handles the exchange of money and documents during a home sale. This third party's responsibility is to oversee the transfer of ownership from seller to buyer. Escrow starts when a homebuyer submits an offer and ends when they close on the home. The second escrow period kicks in after the buyer closes on the home and ends once they've paid off their mortgage or refinance with another lender .
Why is escrow important?
Escrow is a service that protects the public and minimizes the potential risk involved in any real estate transaction.
Who can perform escrow services?
In order to perform escrow services in California, the escrow law states that an escrow must be a corporation in the business of receiving escrows for deposit or delivery and be licensed by the California Corporations Commissioner. However, there are some exceptions.
Who chooses the escrow holder?
The buyer may have a preference and so may the seller, but ultimately they must come to an agreement.
When does escrow open?
In the case of a real estate sale or purchase, escrow usually opens when a fully executed purchase agreement has been delivered to an escrow holder.
When does escrow close?
Escrow is said to have closed when ownership transfers from the seller to the buyer, which is when title is recorded with the county.
Benefits of Escrow
Escrow benefits the homebuyer by making sure the seller fulfilled all the conditions of the sale, such as repairs they agreed to make. It also benefits the seller in case the buyer pulls out of a deal without a contractual basis to do so, in which case the seller would get to keep the earnest money.
Escrow: closing a property
When the home closes, the escrow agent will transfer the deed to the buyer, while the purchase money is transferred to the seller, completing the purchase of the home.
Cost of Escrow
The cost of escrow, including the lender closing fees and title insurance, will typically be about 1-2% of the value of the home.
Seller Commonly Asked Questions
How will you market our home?
I hired a professional photographer to get the best image quality and post it on the MLS. The MLS is a database where all agents in California will see your home listed with good images and a good description of your home. I aslo host open houses and post the listing on social media causing more people to be interested in your beautiful home!
How are showings scheduled?
I will get together with (YOU) the owner and see what schedule or showing times you prefer. I follow your schedule and rules when it comes to showing your home.
How do I get my home ready to sell?
De personalize your home (family photos) Buyers want to see themselves living there not your family pictures
Organize and declutter! The more organized your home is the more it opens up space making it look more appealing to potential buyers.
Deep Clean Windows, baseboards, and cabinets for a much better presentation
Curb appeal such as landscaping, paint, or anything that will affect the buyers first impression
Make any necessary repairs
Be ready for a quick move!
Is there a possibility that my realtor will represent both me and the buyer?
There is a possibility I can represent the buyer, however before doing so I will disclose with you to make sure it's okay to continue.
What are the costs of selling?
some common expense when selling your home are:
Escrow fees
Title insurance fees
Home warranty
County transfer tax
HOA document & transfer fee
Realtor commissions
How often will I be communicating?
Often and especially after any major showing, buyer offers, or other important information!