Real Estate 202 – Highlights of the Process (Alabama Version)
As a seller, you should be aware that there are a number of things that can happen even from the very beginning of the process. We are here to help through the bumps. Perhaps we won’t have any bumps, but either way – we are here to help smooth out the ride. Everyone from you to the closing attorney has a part in this trip. If any one person stumbles, it will affect the whole group. It is important that you take the time to read this course material fully, as it will help you prepare!
I would like to take a moment to discuss etiquette.
Before you start reading this, be sure to keep an open mind and see it from both sides. This section is not meant to offend anyone, but rather to inform you up front of how transactions typically play out and some things that can help us help you better. We are all on the same team as our ultimate goal is to get you to the closing table with the best deal you possibly can get. We are up front and honest agents, and some people think that is a bad thing at first. We are wanting to protect your interests and do our absolute best for you, so transparency is important. Sometimes you might not want to hear what we have to say, but I assure you...
Your agent does not like to give you bad news. Your agent does not get paid unless your home successfully closes. There are licensure boards that oversee agents and their paperwork to ensure the protection of the public during these transactions. No agent wants to intentionally ruin your home sale, nor lose their license over your transaction. Agents try their best to maintain professional attitudes throughout. We will treat our clients with respect, and expect the same of our clients. We do not mind questions, but please keep in mind there are very rarely true emergencies in real estate. Your agent has a life outside of work. We are readily available thanks to technology, but please note that we might not be immediately available at any given point. Some of us go to sleep early due to spouses, some of us have ball practices at nights or weekends. Our team has three members to try to pick up the between times, but there are times that we will all three be busy with family or clients. We do not purposely keep you waiting, but if you call us at 10pm there is a very likely chance you will not get a returned call until the following day. Texting at any point is fine, but please keep in mind that we might not return texts until the following day if it is a late night or weekend where we have activities. Life happens and we try to balance it as best we can. Of course, if you work night shift or overseas, we do our best to accommodate your situation. We have worked with buyers and sellers overseas or that work night shifts. This is also why it is important for buyers/sellers that are able to communicate through normal business hours do so. That way it is easier for us to accommodate our other clients with these special requirements and keep a balanced family life ourselves.
There will likely be days where you don't speak to us, and that is perfectly normal. If nothing is happening or we are in a waiting stage, we will update you as soon as we hit a new milestone or if you need to be informed of something. Asking the same question every day does not make us be able to get the answer any faster. We do our best to keep you informed of what you need to know, when you need to know. This doesn't mean you're not allowed to ask us questions if you have them, please do! Just know if you haven't heard back on an answer to a question (especially over a weekend), then we likely do not have an answer yet. Some things take a day or two (or longer) to get cleared up or answers from lenders/title/etc.
Long story short, please be patient and kind to your agent. There's a lot of stressful behind the scenes situations they are dealing with so you don't ever have to think about them.
Let's talk about the overall big picture of the process.
Of course, we will get into specific and more detailed topics later, but it's important for you to have a solid foundation in the basic knowledge of the steps.
Step 1: Pre-listing
You might be thinking "list my house should be step 1!" If you think that, then you're wrong. There are a lot of things that need to happen before listing your house. Finding the right agent, coming up with the best strategy, figuring out if your home needs any repairs that would scare off potential buyers, finding your target buyer audience, preparing to move out (if you still live there), ensuring there is nothing that might cause issues down the line (liens, encumbrances, encroachments, bad legal descriptions, etc.). Your agent should be able to get you through everything and make sure you are 100% ready for your home to go on the market before you advertise your home for sale. Discussing commission rates, listing price, scheduling photos/videos/360 Tours, etc. all are a part of this stage. We will get deeper into this later.
Step 2: Active – On the Market
Once all of the hard work is done from step 1, it is time for your home to be advertised for sale to the public! Please be sure to keep your house show ready at any given point. We understand you might still be living there, but there are always out of town clients that call and are only available that one day to look at homes. As agents, we try our best to give you at least 24-hours' notice, but we cannot always guarantee we will have that much notice. A clean and decluttered home always shows best. People do understand you still live in the home, so do not overthink the various items you have in your house. Just try to put away as many items as possible. Too many items in a room can make buyers feel like the house is too small for their needs when in reality it might not be.
Step 3: Offers
During the COVID boom, prices sky rocketed and interest rates bottomed out. The market has since shifted. Where you may have gotten 15 offers during that boom for more than list price, today's market is settling back to what we in the industry considered the norm prior to COVID. The average sales price is still higher than it was pre-COVID, but interest rates are much higher today versus pre-COVID.
With that said, once you receive an offer there are things you need to know before you sign. Your agent will do an estimated closing/net sheet to show you the costs associated with the offer. This may not include every contingency in the contract since some items aren't monetary values (closing date, loan types, home sale contingencies, inspections, etc.), so keep those other items in mind when determining whether or not an offer is the right one for you. Your agent will be a great resource when you are deciding whether or not to accept an offer.
Step 4: Contract Period
Once all parties have agreed to the terms (including any changes being initialed by all parties), you are now under contract! The actual contract part is where you get to sit and overthink and overanalyze every little thing that happens. It is best to not do that! Your agent will be working behind the scenes and letting you know if there is something you truly need to worry about. Inspections, appraisals, more inspections, walk through, waiting on lenders, clearing up any issues with title searches – these are all things that will happen during this time. If your buyer is getting a loan, do not expect to know for sure they are closing until you sign the papers at the attorney's office. ANYTHING can happen. There is a very high chance that if you make it through the first three weeks and all inspections and appraisals are completed and no issues, the closing is very likely to be successful. After many years in this industry, there is absolutely no guarantee until everything is signed and your check is deposited. We know this can be stressful, and we try to navigate the major concerns in the initial contract period to minimize the chances of the deal falling apart at the very end.
If you're buying another home and the home you are selling has to close before you can complete the purchase of the new one, please tell your real estate agent to include that in your contract for your purchase. If not, you could potentially cause a lot of problems down the line in both transactions.
We have more to discuss, but we will save that for later.
Step 5: Closing
Anyone on the deed, or any spouse that has claimed the home as their domicile address during the marriage period has to come to closing to sign the new deed transferring ownership. Just because your spouse didn't sign the original deed doesn't mean they don't have to sign once it sells.
You're ready to move on to Real Estate 203! Continue now or be on the lookout for the next email.