© 2008 West of the Five | Travis Houston | First Capital Realty

First Capital Realty is a division of Fitzpatrick Capital, DRE #01807122

Moving Tips

The key survival tactic to moving out is getting an early start. When you have a deadline, everything has a domino effect. If you don’t allow some leeway, you can end up behind schedule even before packing a single box. There is a lot to be done, and to make sure you have enough time for the important things – like saying good-bye to friends and family – start early.

Post Office Address Change

Don’t forget to make a change of address with the postmaster. Use this link to do it online or stop by your local post office and get a movers guide. USPS Address Change Form.

Find Local Moving Companies

Start at Google Local. Then Type in “Moving Company” and your zip code.

Final Walk-Through Inspection

Generally a week before closing escrow the buyer and buyer’s agent will take their final walk through inspection of your property. This final inspection is to sign off that the property is in essentially the same condition as it was when your listing went into escrow. Any of the repairs you agreed to in the buyer’s request for repairs will also be checked for completion. This is not a condition to close escrow.

Cancel Utilities

Within a week to close of escrow you will want to begin the process of canceling all the utility company accounts you have on your home. We can provide you with a list of local San Diego contact numbers to facilitate this process.

Closing Costs

The seller can generally be expected to pay for:

* Real Estate Commission
* Document preparation fee for Deed
* Documentary transfer tax ($1.10 per $1,000.00 of sales price)
* Payoff of all loans in seller’s name (or existing loan balance if being assumed by buyer)
* Interest accrued to lender being paid off, Statement Fees, Reconveyance
* Fees and any prepayment penalties.
* Termite inspection (according to contract)
* Termite Work (according to contract)
* Any judgments, tax liens, etc., against the seller.
* Tax proration (for any taxes unpaid at time of transfer of title)
* Any unpaid Homeowners dues
* Recording charges to clear all documents of record against seller
* Any bonds or assessments (according to contract)
* Any and all delinquent taxes
* Notary Fees
* Escrow Fee (one half)
* Title Insurance Premium for Owner’s Policy

Closing Escrow

When the buyer has signed all loan documents, they are then sent to the lender with a request that the loan funds be released (”funding”). Your escrow has not yet closed at this point; “recording” of the grant deed is the trigger. Lenders have different time schedules. Some fund their loans locally and need only one days notice, while others will need up to two full days to review the loan package and fund.

When the lender verifies that they are in a position to release the loan funds, the Escrow Officer calls the title company to “set-up” the recording. Insured documents in San Diego County record at 8:00am. The title company rechecks public county records prior to having the documents recorded, to assure that no liens have been recorded. Occasionally, a new lien will appear and the recording is “pulled” until a clearance of the new lien is obtained.

Between 10:30 am and 12:00 pm, the title company will call to “confirm” that all documents have been recorded and give escrow the final title and payoff of existing lender costs. Escrow will then balance your file, type closing statements and disburse funds.

Keys

We will coordinate the delivery of your keys, garage door opener, and any other agreed upon items such as HOA items to the buyer once the deed has been recorded at the San Diego County Assessor’s Office or according to any other contractual agreements you’ve made.

Opening Escrow

Once you accept an offer from the buyer it’s time for us to open the escrow. The purchase contract is used to establish the terms and conditions for the transfer of ownership of your property. These specific terms and conditions are given to a neutral third party known as Escrow. The escrow officer, in turn, has the responsibility of seeing that the terms of the escrow are carried out precisely. The escrow is an independent neutral account and the vehicle by which the mutual instructions of all parties to the transaction are complied with. Upon opening escrow, we will give you a copy of the timeline we will be using to track the transaction, so you will always know the milestones ahead.

Buyer’s Inspections

As stated in the purchase contract and escrow instructions the buyer now has a specific time period in which to perform their due diligence and physically inspect the property (at their expense). Which inspections to order is usually a matter of observation and knowledge of what is critical to our local area. Generally, the time frame for the inspection contingency in San Diego is 17 days, however it’s negotiable. The most common inspection is the Physical Inspection. Other inspections include Well and Septic, Zoning, Heating and A/C, Soil Test, etc.

The Home Inspection

Nearly all home buyers hire a professional home inspector to take a close look at their prospective home during escrow. You can speed things along by analyzing the condition of your home and making necessary repairs early, before the house is under contract. Don’t be discouraged if the inspection report contains a few negative statements. Home inspectors make note of everything they see. Some buyers use their home inspection as a means of re-negotiating the purchase price of the home, asking for a credit, or have you make any repairs they deem necessary. This is, of course, negotiable.

Seller’s Disclosures

During escrow the buyer will read and review the disclosures you’ve made. Again, it is imperative to disclose all known material issues about your property.

Appraisal

Final approval of the buyer’s home loan will likely depend on a satisfactory appraisal of the real estate you are selling. The buyer’s lender will order the appraisal.

Contingencies

The California purchase agreement provides the buyer with a specific time frame to inspect your property, review the preliminary title report and all disclosure documents and obtain financing and insurance before they must actually complete their purchase of the home. With the successful completion of each of these milestones, the buyer will remove that contingency of their purchase and move one step closer to the close. Or, the buyer may use information they have learned to request a renegotiation of the terms of the contract (often the price). This is when an objective, experienced listing agent can really make a difference by helping you make an informed decision on how to respond to the buyer.

Staying Focused

Being in escrow creates a series of time sensitive deadlines for both the buyer and you, the seller. Keeping this chain of events focused and on schedule is what our team does and ensures a timely and successful close of escrow.

Price & Terms

Price is not always the deciding factor when assessing which offer to accept. Our purpose at this stage is to carefully decipher the incoming offers. We will then present you the price, terms and conditions of the offers. You are free to accept, counter or reject the offers. We will explain why, at times, the highest priced offer is not always the best offer. Taking a hard look at the buyer’s financial ability to close escrow is a good first place to start.

Negotiating & Counter Offers

In general, it’s wise to counter any offer from a well-qualified buyer, even if it’s for less than the asking price range. Verbal negotiations can bare fruit. However, verbal agreements to sell real estate are not binding. We recommend putting all commitments into writing, having both parties sign off and leave nothing to chance. Our experience will benefit you in situations that involve multiple counter offers, numerous conditions, rent-backs, lease-options and other such complicated contractual issues.

Earnest Money Deposit

In San Diego it is common for buyers to have a deposit of 1% to 3% of the purchase price upon entering into escrow. This deposit is held by the escrow company. The deposit will be disbursed according to the purchase contract. Ask us how we can help protect your best interest when it comes to the earnest deposit.

Pre-Approval

Before you accept any offer, no matter how good the price may be, we will want to make sure the buyers are financially qualified. Ideally, you want to sell to buyers who have been pre-approved for your sale price. This means that a lender has approved them for the mortgage they need to close the sale. We will also want to call the lender directly and find out if there are any conditions the buyer has before the lender will approve their loan amount. If need be we can always ask the buyer to double-app, which means we ask them to be pre-approved with one of our West of the Five partner lenders to be assured of their financial ability to close the escrow.

Market Conditions

It is a good idea to once again take the pulse of the market before accepting an offer. Are interest rates on the rise? If so more buyers are being knocked out of the market and unable to qualify for a mortgage. Ask your REALTOR to give you an update of current market conditions and use this assessment to help make your decision before going into escrow.

Disclose, Disclose, Disclose

One of your primary duties as a seller is to make a list of anything and everything that should be disclosed to potential buyers since you have lived in the home. When in doubt, disclose. Disclosure forms are now required by law. We are familiar with up to date legal issues surrounding disclosures and attend yearly classes to keep current. It is crucial to be very detailed with your disclosure documents. These disclosures will serve both you and the buyer in creating a sound and seamless transaction. We will leave no detail to chance and answer any of your questions pertaining to disclosures.

Termite and Pest Control

Depending on the condition and age of your home you may have some termite damage. We often recommend that you have a termite and pest inspection done before placing your home on the market. This helps avoid expensive surprises for you and the buyer down the road. We can recommend various vendors who will come to your home and supply you with a free estimate of the work to be done to get your home into saleable condition as it relates to the buyer’s lender or bank.

Receipts and Warranties

Begin a file that encompasses all the receipts, warranties and documentation for any and all work you’ve performed or had contracted on your home. This will be used in the disclosure process as well. Some warranties may be transferable thus creating more value to potential buyers.

As-Is Sales

As-is sales have nothing to do with non-disclosure of known defects. It simply means you the seller are not providing any guarantees or warranties to the buyer as to the condition of the property and will not make further allowances, credits, or price reductions for any problems with your property. As a wise seller, however, spend some of your expected as-is windfall going over the home with a magnifying glass to smoke out and disclose its true “as-is” condition. That could include hiring a professional general home inspector and others as needed. If a buyer finds defects and does not back out, but demands that you do the repairs, you are not obligated to do any repairs and can cancel the contract and find another buyer.

Internet

Make sure that your home will receive Internet exposure. Over 70 percent of today’s buyers start their home searches on the Internet. However, just an ad on the Internet isn’t enough. The ad must have high quality photos marketing the best features of your property. Buyers rarely look at listings that don’t have photos. We will help you gain an edge on the competition by having the photos of your home on the Internet as soon as the listing comes on the MLS. This exposure maximizes buyer interest. Your listing will be placed on the San Diego MLS, Realtor.com, PrudentialCal.com, Craigslist.org, SignOnSanDiego.com and other real estate related sites.

Traditional Media

In addition to the MLS and the Internet we also use a mix of traditional media to advertise, market and promote your listing. Depending on the individual plan we create for you we’ll utilize the San Diego Union Tribune, Dream Homes, Harmon Homes, Home Buyers Guide, The Beach and Bay Press, The La Jolla Light, The Beacon, and other pertinent local newspapers and publications.

Brokers Caravan

Marketing your property to other real estate agents in the community is just as important as marketing it to the public. We cater lunch for the for the caravan, because who can pass up a free lunch, and promote your listing to the agents and then follow up for feedback. Ask your listing agent which day of the week the broker’s caravan is held in your neighborhood.

Open Houses

It’s rare that an open house alone will sell your listing. However, they are a great tool to promoting your property to the neighborhood and prospective buyers. If you wish for us to market your home using this technique, we put out a minimum of 12 signs to drive traffic to your home as well as advertise the open house in the San Diego Union Tribune, on Craigslist.org, with flyers, an email blast and other styles of marketing.

Direct Response Marketing

In conjunction with every piece of marketing we create we utilize direct response marketing. How we do this is somewhat of a trade secret and we’ll be happy to explain it in detail to you during the listing presentation. This is a very successful tool in finding and following up with potential buyers for your home.

Print Marketing

You will be proud to have your property prominently featured in our print marketing materials. We have painstakingly developed each piece of marketing to maximize the exposure and return on your investment. You won’t find any cookie cutter templates with West of the Five. Hundreds of hours of research and development have gone into creating materials that get proven results time and again. Nothing is left to chance. During our initial consultation we will show you the arsenal of print marketing available to get your property sold in the least amount of time while maximizing your sale price and doing so with style and expertise.

Comparable Market Analysis

Pricing your property to obtain the optimal selling point depends on an unbiased analysis of the comparable sales data for your neighborhood. Although tempting, it usually doesn’t make sense to select a list price for your home based on the one stupendous sale in your neighborhood. The most accurate way to determine the estimated selling price for a property is to compare all the attributes of that property with similar properties that have just sold, not just the price per square foot. Features like lot size and utility, the view, the location, school districts and the quality of the finishes all have an effect on value.

Market Conditions

The market forces of supply and demand determine whether the market favors you the seller or buyers. Again, we recommend taking the pulse of the market at regular intervals. In a buyer’s market the inventory of homes in our local area rises, buyer demand becomes diluted and prices stay flat or fall. Buyers have more homes to choose from, so their sense of urgency tends to diminish. In a seller’s market with a limited supply of homes for sale, sellers often have the upper hand with price and terms. Buyers can find themselves in multiple offer situations, which creates up trending pressure on your home price. The fuel for the fire is interest rates. They serve as the tool that keeps the motor running. High rates can diminish demand, just as low rates create demand.

Benefits Of Proper Pricing

Faster Sale: When your property sells faster, you save carrying costs, mortgage payments, taxes, insurance, and other ownership costs. Also, a home that is new or “fresh” on the market usually commands more interest which translates to a higher sale price.

Less Inconvenience: If you have moved before, you know the energy it takes to prepare your home for showings, keep the property clean, make child care arrangements, and generally alter your lifestyle. Proper pricing shortens market time.

Exposure To More Prospects: Pricing at market value rather than market value plus, you expose your home to more people who can afford to buy it.
Increased Salesperson Response: When salespeople are excited about a property and its price, they make special efforts to contact all their potential buyers to tell them about it.

Better Response From Advertising And Sign Calls: Ad calls and sign calls more readily turn into showings when price it not a deterrent.
Higher Offers: When a property is priced right, buyers are less likely to make low offers, for fear of losing a good property.
More Money To Sellers: If a property is priced right, the excitement of the market produces higher sales prices. You net more in terms of actual sales price and lower carrying costs.

Variable Range Marketing

When a new idea sells homes up to 50 percent faster and leaves both sellers and buyers completely satisfied, it changes real estate forever. With Value Range Marketing (VRM), your home can be listed and marketed within a price range instead of at a fixed price. The most immediate benefit of VRM is that it increases the number of buyers who will see your home. And, with more buyers looking at your home, there’s more chance of an early offer or multiple offers.

The top end of the range allows you the opportunity to achieve a premium price for the property, while the bottom of the range ensures the property remains competitive in the marketplace. VRM is designed to attract offers, open negotiations and reach the maximum sales price for your property. The option to choose a single price listing or a Value Price Range is yours.

Market Watch Program

To keep current on comparable homes in and around your neighborhood and what they are selling for sign up for our free Market Watch email service. Each night, our Market Watch computers access the San Diego Area Multiple Listing Service and search through ALL the information on every home listed in the county by every real estate company. Next, the computers sift and sort through every comparable sold listing in and around your neighborhood. Then, the Market Watch system automatically sends you these sold listings to your inbox. If you like, we can also program the computer to let you know when the neighborhood properties go into escrow as well. This is a free service we offer and it is without obligation. Click here to sign up for the West of the Five Market Watch program.

Over Priced Listings

Watch out for the listing agent who recommends a high list price for your home just to get the listing. In the real estate business this practice is referred to as buying a listing. To guard against this, ask the agent to give you an approximate selling price range for your home. The agent should back this up with current comparable sales information. If an agent insists he or she can get you a higher price than anyone else can, ask how the agent plans to accomplish this feat. Even if your home is unique, an agent should attempt to justify the price. After all, if a listing sells for that price, an appraiser is going to have to justify the price for the buyer’s lender. Your home might not appraise at such a high price unless there are comparable sales to support the price. This could jeopardize a sale. The agent you select will be your personal representative to the outside world. Keep this in mind when you’re making your choice.

First Impressions

As you initially begin preparations to sell we urge you to start thinking like a buyer, not a seller. Be objective and critical. Together, our goal is to get the highest sale price in the least amount of time. In today’s competitive market you rarely get a second chance to make that crucial first impression. Also, your listing is most salable when it’s new to the market. To maximize your sale price the home should be properly prepared for sale.

Curb Appeal

Speaking of first impressions, if a prospective buyer doesn’t like the cover they many not read the book. This principle rings true with selling your home. You’ve become accustomed to the way your property looks and feels. Get a second and even a third opinion from friends, family and your agent. Does the home and yard look good from across the street? How does it look as you walk toward the front door? What are some critical improvements you can do to make a winning first impression? Do you need to add design and landscape elements or take some away? Remember, it doesn’t have to be expensive or time consuming. Keep it simple.

Making Repairs

Usually it’s worthwhile for you to fix-up your home before putting it on the market. It’s also a good idea to meet with your real estate agent before you start your fix-up work to find out what projects make sense from a cost vs. value standpoint. This way you won’t spend time and money in vain. A common mistake homeowners make is assuming that when they sell they will recoup the money they invest in remodeling their home. How much you can recoup will vary depending on our local real estate market conditions, the type of remodel project, and the length of time between the project completion and the sale of the property. Generally, it doesn’t make sense to tackle a major renovation if you plan to sell in the near future. Also, keep any and all receipts, documentation and warranties pertaining to repairs, renovations and remodeling. These receipts will be used in conjunction with your disclosures.

Pre-Inspection

More and more, sellers are obtaining inspection reports before putting their home on the market. Buyers can then take this information into account when making an offer. By so doing, the sellers minimize the chance that they’ll have to renegotiate the price after the buyers complete their inspections. Further inspections are often recommended in pre-sale inspection reports. This is particularly the case with older homes that have settled, or lack modern drainage systems, or have outdated foundations. However, many sellers fail to order further inspections, either because of the expense, or because they can’t bear the thought of uncovering a problem. This knowledge will give you an edge and show good faith to prospective buyers.

Clutter’s Last Stand
It’s a given that sellers who expect to sell for top dollar need to have their homes in prime condition.

How To Select Your Agent

It’s in your best interest to pick your listing agent carefully. Mutual respect and good rapport are elements of a good working relationship with your real estate agent. If the chemistry isn’t there, find an agent with whom you feel comfortable and trust. An average real estate transaction will require over a hundred points of contact including face time, phone calls, emails and faxes. Good agents will return your calls and emails quickly. You should hear back from an agent within 24 hours or sooner. Your real estate agent is your lifeline to the other key players in the real estate transaction: the other real estate agent, the loan officer, the appraiser, escrow officer, etc. You’ll rely on your agent to communicate effectively with everyone involved in the transaction. An agent who doesn’t consider prompt communication a high priority can cause you a lot of problems.

Good agents strive to continuously improve themselves. Ask about their credentials and education. Only agents who are members of the National Association of Realtors can call themselves a REALTOR®. Also, ask if the agent is an e-PRO® Certified Internet Real Estate Professional. Today, real estate is moving at internet speed.

Furthermore the prospective listing agent should provide you with a solid marketing plan. Ask to see samples of the marketing materials that will be used to promote your home. Unprofessional and inconsistent marketing will cost you time and money in the end. We’ve spent thousands developing the West of the Five marketing materials with the best designers in the industry to create superior advertising and promotion for our clients. We believe our business is all about you and getting what you want.

What’s A Fiduciary Duty?

A fiduciary duty as it applies to a REALTOR is the highest standard of care imposed. A fiduciary is expected to be extremely loyal to the person they owe the duty (the “principal”), you: they must not put their personal interests before the duty. The fiduciary relationship is highlighted by good faith, loyalty and trust, and the word itself originally comes from the Latin fides, meaning faith, and fiducia.

Working With West of the Five Is Different

All West of the Five team members genuinely care Before, During & After your transaction. Our unique model of intelligent, thought provoking questions inspire values based decisions. Each client is treated like close family; each transaction is treated like our own. Integrity, world-class service and communication create the basis for a life long relationship with your West of the Five team.

Why Caring Matters

Caring Before your transaction ensures you 3 essential steps;

1. Together, a crystal clear outcome is agreed upon beforehand.
2. Motivation, purpose and expectations are clearly articulated and set.
3. A detailed and personalized plan to achieve your outcome as a Team is devised.

Caring During your transaction means our team supports you in making the best long term decisions and we serve your needs before our own.

Caring After your transaction creates an open line of communication and gives life time access to our West of the Five community, our professional resources and expertise.