The ROI of Renovations: Explaining the Financial Potential of Renovating Before Selling

 Low listing inventory is a common challenge that agents (and brokerages) are facing in 2023, and one big reason is because homeowners who live in properties that could use a little TLC before going to market are unable to fund those renovations. It's hard for a homeowner to list their most valuable asset knowing that they could be asking for more money if they made a few small changes upfront!

Presale renovations are one way that homeowners can realize the full potential of their home's value without having to pay out-of-pocket for the upgrades. 

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Last year, homeowners invested more than $500 billion in home renovations. According to researchers, home remodeling will continue to grow, fueled by the rising disposable income of homeowners and the shift toward aesthetic upgrades.

Also adding to the massive explosion in the popularity of the home renovation market is the rapidly expanding trend where real estate agents recommend homeowners make vital improvements to their homes just before selling. This new, modern approach to selling a home enlists the skills, capital, and expertise of pre-sale renovation firms specializing in making the right home improvements for the maximum final sales price.

The leading pre-sale renovation firms work with real estate agents to help homeowners achieve one primary goal: maximizing their investment return or ROI.

Why renovate before selling?

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Currently, most homeowners sell their homes as-is. But research shows that leaves 15-20% of potential profits on the table. This creates a $300 billion annual opportunity for agents and their sellers, as that's the total estimated potential proceeds if homeowners made the right improvements before listing their homes for sale.

The amount of money involved for homeowners can be life-changing. Other industry research shows that home sellers gained an average of $186,000 more in profit when selling their renovated homes, with the average ROI north of 250%.

Moreover, when agents help their sellers use a pre-sale renovation to help their homeowners increase their ROI, agents benefit too, as it can increase their GCI significantly.

How does pre-sale renovation work?

Until recently, the speed of a sale drove the real estate business. Real estate agents often rushed to get a home on the market. However, it turns out that getting a home quickly listed for sale doesn't always result in the best ROI for the property.

Home flippers understand this better than perhaps anyone. When purchasing a property, their entire focus is to determine which homes with the right improvements will have the best return on their investment.

Pre-sale renovation firms borrow the business model of the best house flippers, looking for ways to help homeowners make the right improvements for the top sales price. The process is straightforward and typically includes:

• Initial consultation: The leading pre-sale renovation firms begin with an initial consultation. This also may be automated by a real estate agent using an AI-powered app. The process determines the potential homeowner's ROI if they take the pre-sale route. While pre-sale renovations may not be the best path for every homeowner, the most important thing is to find out and avoid leaving money at the closing table.

• Budgeting and planning: A pre-sale renovation firm typically assigns an individual or a team that works with real estate agents and their clients to guide them through the renovation process. Pre-sale renovation firms do the heavy lifting and provide the funds for the strategic renovations recommended, reviewed, and approved by the homeowner. The homeowner does not pay a single dime out-of-pocket as all these expenses are paid at closing.

• Design: Crucial to a pre-sale renovation delivering a maximum ROI is making the right improvements. That includes making sure the design matches the local market demand. A pre-sale renovation firm that excels in design is crucial to obtaining the best final sales price for the home.

• Quality and on-time improvements: Pre-sale renovation firms reduce the risks of a DIY approach by homeowners and/or their agents by ensuring vetted contractors work to deliver quality improvements on time and within budget.

• Finalizing the sale: After the improvements are made – typically around nine weeks or fewer for most projects – the agent lists the home for sale at the post-renovation sales price. This maximizes the ROI, and at the closing, the pre-sale renovation firm is reimbursed for its costs, and the higher proceeds are delivered to the homeowner.

Not for every seller

Not every seller should go the renovate first route because the estimated post-renovation ROI shows it may not be worth the effort. This is particularly true of well-maintained homes and homes that have recently made significant improvements. Moreover, local market conditions could also influence if this path makes sense.

A trusted pre-sale renovation firm will help provide the information for agents and their sellers to determine this. And that's the key: real estate agents need to explore the potential outcome of taking the pre-sale renovation path with every seller.

The only way to determine if the ROI for a pre-sale renovation will work is to go through the process. Fortunately, there are new ways to help agents show homeowners exploring a sale what the ROI could be with new technology upfront, even during their listing presentation.

A better way to sell

For most homeowners considering a sale, agents will discover that walking them through the benefits of a pre-sale renovation can be a win-win.

Pre-sale renovated homes provide a higher ROI to owners and sell faster once they are on the market. Homeowners don't have to worry about the stress, time, and energy it takes when using a pre-sale renovation firm. From the beginning, homeowners know they are making the right improvements.

It's all about what today's buyers want. Millennial home buyers, the largest generation and often the number one buyers of homes, want move-in ready homes. Research shows that 70% of Millennial home buyers would choose a smaller home, giving up the need for more space to secure a move-in-ready home.

Homeowners don't have to front the money needed for the remodeling as pre-sale renovation firms provide the capital for all the improvements, which are reimbursed when the home is sold. The amount of funding supplied can range from tens to hundreds of thousands of dollars, depending on the house and the ROI goal.

By improving their ROI through a pre-sale renovation, homeowners will maximize the value of their property, minimize potential obstacles to a sale, and experience a streamlined process that results in financial gain that can help change their lives for what they want to do next.

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100 Things Buyer's Agents Do for Their Clients

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It's been a rough couple weeks for buyer's agents — and for how they're being portrayed in the media. Since the NAR settlement, comments sections of news articles have been rife with remarks like "What do real estate agents even do anyway?" that imply that agents don't deserve their commissions.

While we advise that you stay away from these online discussions — which quickly turn toxic — you may need to offer answers to the question of what you do to clients and prospects at some point.

Fortunately, as any buyer's agent knows, you do a whole lot! We want to hype you up during this challenging time and help you be ready to list all the wonderful ways you help your clients the next time you get that question. That's why we've rounded up this list of 100 things that real estate buyer's agents do for their clients.

The list is written as if buyers are reading it, so please feel free to copy and paste this anywhere that it's helpful — on your website, into presentations, your email newsletter, and beyond!

Before Your Search Begins

1. Understand your needs and wants as a buyer (e.g., number of bedrooms, desired school district, commute time)
2. Discuss your budget and pre-qualification options (explain pre-qualification vs. pre-approval)
3. Educate you about the current real estate market (local trends, market conditions)
4. Explain the buying process (steps involved, timeline)
5. Provide a buyer's agency agreement outlining their responsibilities, compensation, and fiduciary duty to represent your best interests
6. Discuss financing options (conventional loans, FHA loans, VA loans)
7. Help you get pre-approved for a mortgage (connect you with lenders, understand loan terms)
8. Explain the role of different parties involved (seller's agent, escrow officer, title company)
9. Advise on homeowner's insurance considerations (types of coverage, estimated costs)
10. Discuss potential tax implications of buying a home

During Your Search

11. Set up a personalized MLS search based on your criteria (location, price range, property type)
12. Recommend properties that meet your criteria and highlight key features
13. Schedule appointments to view properties and manage your showing itinerary
14. Provide virtual tours if available and conduct virtual consultations if needed
15. Research the neighborhoods you're interested in (schools, amenities, crime rates)
16. Point out pros and cons of each property during showings
17. Offer honest and unbiased opinions based on your needs and market knowledge
18. Identify potential problems with properties (structural issues, outdated features, renovation needs)
19. Help you stay organized with property information (create spreadsheets, share notes)
20. Track new listings that hit the market and notify you of potential matches
21. Schedule follow-up appointments for properties you'd like to see again
22. Answer questions about open houses and how to best approach them
23. Explain the role of "coming soon" listings and pre-market opportunities
24. Advise on strategies for attending competitive open houses
25. Help you understand the concept of "pocket listings" (unlisted properties)
26. Offer guidance on making low-ball offers (weighing risks and benefits)
27. Explain the concept of escalation clauses in competitive offers
28. Discuss the importance of earnest money deposits and potential holding fees
29. Advise on timelines for submitting offers and response expectations
30. Help you prioritize properties based on your evolving needs and preferences

Making an Offer

31. Explain different offer strategies based on market conditions (fixed price, escalation clauses)
32. Help you determine a competitive offer price considering comps (comparable properties) and market analysis
33. Draft and submit a formal offer following standard real estate contract formats
34. Negotiate on your behalf with the seller's agent to get the best possible terms
35. Present counteroffers strategically to improve your offer's position
36. Recommend concessions you can request beyond price (closing costs, repairs, warranties)
37. Advise on closing costs and help you estimate associated fees
38. Ensure all contingencies are included in the offer to protect your interests (financing, inspections, appraisals)
39. Explain the concept of "due diligence" period and your rights during that time
40. Keep you informed of the negotiation process and provide timely updates

Under Contract

41. Schedule and coordinate the home inspection with a qualified inspector
42. Accompany you to the home inspection to ask questions and take notes
43. Review the home inspection report with you, explaining findings and potential repair needs
44. Negotiate repairs with the seller based on the inspection report
45. Help you understand the process of scheduling and attending additional inspections (e.g., radon, pest)
46. Facilitate communication between you and the lender to ensure smooth loan processing
47. Recommend reputable mortgage lenders if you haven't already secured pre-approval
48. Help you gather necessary documents for loan approval (tax returns, bank statements)
49. Schedule and attend the appraisal (if required by your lender)
50. Review the appraisal report and explain its impact on
51. Advise on potential challenges with loan approval and suggest solutions
52. Explain the role of private mortgage insurance (PMI) if applicable
53. Help you understand the escrow process and communicate with the escrow officer

Before Closing

54. Order title search to identify any ownership or lien issues
55. Review the title commitment and explain its implications
56. Advise on homeowner's insurance options and help you get quotes
57. Schedule the final walk-through to ensure the property's condition aligns with the contract
58. Ensure all repairs agreed upon are completed before closing
59. Review closing documents thoroughly and explain each section
60. Answer any questions you have about closing and prepare you for the process

After Closing

61. Provide recommendations for reputable movers based on your needs and budget
62. Help you connect with home warranty companies to explore coverage options
63. Offer recommendations for home improvement contractors for post-purchase renovations
64. Stay in touch and answer any questions you have after closing
65. Provide resources for navigating homeownership, including maintenance tips and homeowner associations (HOAs)

Additional Services

66. Provide resources for school information and district ratings
67. Help you understand local property taxes and potential exemptions
68. Advise on homeowner association (HOA) fees and explain HOA rules
69. Explain the benefits and drawbacks of different property types (single-family home, condo, townhouse)
70. Help you understand lead paint disclosures and potential remediation requirements
71. Assist with navigating historical property reports to understand the property's background
72. Recommend resources for obtaining permits and inspections for renovations
73. Connect you with property management companies if you plan to rent out the property
74. Help you understand the process of obtaining homeowners' insurance
75. Offer guidance on budgeting for ongoing homeowner expenses (maintenance, utilities)

Client Communication

76. Be available to answer your questions by phone, email, text, or preferred method
77. Communicate promptly and effectively, keeping you informed throughout the process
78. Advocate for your best interests during negotiations and throughout the transaction
79. Provide you with clear and concise explanations, avoiding technical jargon
80. Be patient and understanding, acknowledging the stress involved in buying a home

Market Knowledge

81. Stay up-to-date on current market trends (inventory levels, interest rates, price fluctuations)
82. Analyze local market data to identify buying opportunities
83. Provide insights into specific neighborhoods, highlighting pros, cons, and future development plans
84. Offer comps (comparable properties) for reference during your search
85. Help you understand seller motivations to inform your offer strategy

Technology

86. Utilize technology to streamline the buying process (electronic signatures, online portals)
87. Use digital tools for property searches with interactive features and filters
88. Offer electronic document signing for added convenience and efficiency
89. Provide online communication platforms for easy information exchange and updates
90. Use marketing tools to target potential properties that meet your criteria

Negotiation Skills

91. Negotiate effectively on your behalf to secure the best possible terms
92. Present your offer in the best light, highlighting your strengths as a buyer
93. Counteract seller's arguments strategically to improve your offer's position
94. Advocate for repairs without jeopardizing the deal by finding common ground
95. Help you achieve a win-win outcome that satisfies both parties
96. Maintain a high level of professionalism throughout your interactions
97. Dress appropriately for appointments and meetings, projecting a positive image
98. Be respectful of all parties involved (sellers, agents, inspectors)
99. Adhere to a strict code of ethics, ensuring fair and honest representation
100. Conduct business with integrity and transparency, building trust with your clients

There you have it — 100 things buyer's agents do for their clients.

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Things To Research Before Buying

When it comes to buying a home, research is paramount. This ensures you don't run into any surprises later in the process. Hiring an experienced agent can help you better understand market trends, pricing, and potential future developments in the area. Questions about the buying process? Send me a message!

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100 Things Listing Agents Do for Their Clients

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In the wake of the NAR settlement announcement, last month we published an article detailing 100 of the many things that buyer's agents do for their clients. The idea was to hype up buyer's agents during a challenging time and help them navigate conversations when faced with remarks like, "What do real estate agents even do anyway?"

But buyer's agents aren't the only ones who get asked that question. So today, we've rounded up a list of 100 things that listing agents do for their clients.

Like the original article, this list is written as if consumers are reading it, so please feel free to copy and paste this anywhere that it's helpful — on your website, into presentations, your email newsletter, and beyond!

Pre-Listing Activities

1. Schedule an initial consultation to understand seller's goals and timeline
2. Conduct a Comparative Market Analysis (CMA) to determine competitive listing price
3. Research recent sales of similar properties in the area
4. Analyze current market trends and adjust pricing strategy accordingly
5. Provide recommendations for improvements to enhance curb appeal and marketability
6. Stage the property to showcase its best features and maximize appeal to buyers
7. Advise on decluttering and depersonalization to create a neutral space
8. Coordinate professional photography and potentially virtual tours with high-quality visuals
9. Draft a compelling property description highlighting key features, benefits, and lifestyle factors
10. Prepare marketing materials, including flyers, brochures, social media posts, and targeted online advertisements
11. Review and finalize listing agreements, explaining terms and agent compensation
12. Schedule open houses and manage logistics (signage, refreshments, crowd control)
13. Market the property through MLS (Multiple Listing Service) and various online platforms
14. Target marketing efforts to reach qualified buyers in the right demographic
15. Network with other agents to generate interest and potential buyer leads
16. Pre-screen potential buyers to ensure they are qualified and serious
17. Conduct property showings and manage scheduling efficiently
18. Accompany buyers during showings, answering questions and highlighting property features
19. Provide feedback to sellers after showings and keep them informed of buyer interest
20. Obtain feedback from buyers to understand their perspectives and adjust marketing strategy if needed
21. Research and suggest comparable properties for buyers considering your seller's listing
22. Advise sellers on the pros and cons of different pricing strategies (fixed price vs. open bidding)
23. Help sellers understand the role of disclosures required by law in different areas
24. Coordinate staging consultations with professional stagers if needed
25. Advise on cost-effective repairs or upgrades that can significantly improve marketability
26. Help sellers understand tax implications of selling a property (capital gains tax)
27. Connect sellers with reputable lawyers and tax professionals if needed
28. Advise on potential closing costs sellers may incur
29. Explain the role of title companies and the title search process
30. Help sellers understand homeowner's association (HOA) fees and disclosures they need to provide to the buyer
31. Assist sellers in gathering pre-listing documents (property deeds, surveys, etc.)
32. Advise sellers on homeowner's insurance considerations (coverage options, potential changes)
33. Help sellers with budgeting for pre-listing repairs and improvements
34. Connect sellers with reliable moving companies for potential post-sale relocation
35. Provide referrals for home warranty companies for post-sale coverage options
36. Offer guidance on navigating the emotional aspects of selling a home
37. Help sellers stage specific rooms to maximize their appeal (kitchen, bathrooms)
38. Advise on landscaping improvements to enhance curb appeal and outdoor space
39. Coordinate minor touch-up repairs to address cosmetic issues
40. Help sellers declutter efficiently and find storage solutions if needed
41. Provide tips on preparing the home for professional photography
42. Advise on staging techniques to create a welcoming and spacious feel
43. Help sellers identify target buyers to tailor marketing efforts
44. Utilize social media platforms effectively to reach potential buyers
45. Respond promptly to online inquiries and buyer agent communication
46. Track online listing performance and adjust marketing strategies as needed
47. Provide sellers with market updates and ongoing industry insights
48. Maintain clear and consistent communication with sellers throughout the process
49. Be available to answer seller questions and address concerns promptly
50. Hold pre-listing meetings to discuss expectations and answer any last-minute questions

Offer Negotiation

51. Review all offers with sellers and explain the strengths and weaknesses of each
52. Negotiate on behalf of the seller to achieve the best possible price and terms
53. Counter offers strategically to improve the seller's position
54. Advise on counteroffer terms such as closing date, repairs, concessions, and financing contingencies
55. Communicate effectively with the buyer's agent to bridge the gap and reach an agreement
56. Manage communication and expectations between seller and buyer throughout negotiations
57. Explain the concept of "highest and best" offers and advise sellers on responding strategically
58. Help sellers understand financing contingencies and potential delays in the closing process
59. Negotiate on repairs requested by the buyer based on the inspection report
60. Advise on inspection negotiation strategies to protect the seller's interests
61. Advocate for the seller's best interests while maintaining a professional and ethical approach
62. Keep the negotiation process moving forward efficiently
63. Help sellers understand the concept of "escalation clauses" and their implications
64. Advise sellers on when to walk away from negotiations if terms are not favorable
65. Celebrate a successful offer acceptance with the seller!
66. Review the purchase agreement thoroughly with the seller and explain each clause
67. Advise on potential counter-offers from other buyers if the initial offer has contingencies
68. Help sellers navigate the process of withdrawing acceptance if needed due to unforeseen circumstances
69. Liaise with the escrow officer to ensure a smooth transition into escrow
70. Coordinate with the buyer's agent on deadlines and document exchange
71. Advise sellers on potential challenges with financing contingencies and suggest solutions
72. Help sellers understand homeowner's insurance requirements and navigate obtaining coverage
73. Advise on potential appraisal gaps and strategies to address them
74. Negotiate with the buyer's agent on behalf of the seller if the appraisal comes in lower than expected
75. Keep all parties informed and manage expectations throughout the under-contract phase

Under Contract and Closing

76. Coordinate with the buyer's agent to schedule inspections (home, pest, radon, etc.)
77. Assist sellers in gathering necessary documents for closing (title, permits, occupancy certificates)
78. Liaise with the escrow officer to ensure a smooth closing process
79. Advise sellers on potential challenges with appraisals and suggest solutions
80. Help sellers understand the timeline and milestones leading up to closing
81. Answer seller questions and concerns regarding the contract and closing process
82. Coordinate any necessary repairs identified during inspections with qualified contractors
83. Manage communication with all parties involved (buyer, buyer's agent, escrow, title company)
84. Review closing documents with the seller and explain each section thoroughly
85. Advise on potential homeowner's association (HOA) move-in/move-out procedures
86. Help sellers understand homeowner's insurance policy changes and potential costs
87. Coordinate the transfer of utilities and services to the buyer
88. Advise on prorating property taxes, homeowner's insurance, and other closing costs
89. Attend the closing and ensure all paperwork is signed correctly on behalf of the seller
90. Help sellers navigate the process of forwarding mail and updating relevant accounts
91. Connect sellers with moving companies or provide recommendations for relocation services
92. Assist sellers with the final walkthrough of the property before closing
93. Provide guidance on post-closing tasks such as transferring warranties and registrations
94. Offer continued support and answer questions even after the closing
95. Maintain a positive relationship with the seller and potentially represent them in future transactions
96. Follow up with the seller after closing to ensure a smooth transition
97. Request feedback from the seller to improve future client experiences
98. Utilize the successful closing as a marketing tool to showcase expertise
99. Stay updated on market trends and legal changes to provide the best service to future clients
100. Continually develop professional skills and knowledge to stay ahead of the curve in the real estate industry

And there it is — 100 things listing agents do for their clients. If you share this list, feel free to edit as needed. After all, you may not do everything on this list, and there are probably several things you do do that aren't listed.

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What To Expect if You Buy or Sell a Home This June

 

June is a busy month in the housing market because a lot of people buy and sell this time of year. So, if you’ve got a move on your mind and you’re looking to make it happen this month, here’s a snapshot of what you need to know to make sure you’re ready.

If You’re Buying This June

A lot of homebuyers with children like to move after one school year ends and before the next one begins. That’s one reason why late spring into summer is a popular time for homes to change hands. And whether that’s a motivator for you or not, it’s important to realize more buyers are going to be looking right now – and that means you’ll want to be ready for a bit more competition. But there is a silver lining to a move this time of year. This is also when more sellers will list – so you should find you have more options. As an article from Bankrate says:

“Late spring and early summer are the busiest and most competitive time of year for the real estate market. There’s usually more inventory listed for sale than other times of year . . . This is a double-edged sword for a buyer, as you will be met with more opportunities but [also] much more competition.”

During this busy season, it’s extra important to work with a trusted real estate agent. Your agent will help you stay on top of the latest listings, share expertise on how to make a strong offer in a competitive market, and give you insight into things like what the home is actually worth so you can make an informed decision when you buy. As Forbes says:

“Approaching the market confidently, armed with good information and grounded expectations will take you far. Don’t let the hustle of the market convince you to buy something that’s not in your budget, or not right for your lifestyle.”

If You’re Selling This June

Because there are more buyers this time of year, you’re in a great spot as a seller. Many of those buyers are highly motivated to make their move happen before the next school year kicks off – so they’ll likely put in strong offers to try to make that possible. That means, if your house shows well and is listed at market value, you could see your house sell faster or for a higher price. According to the National Association of Realtors (NAR):

“Warmer weather and the end of the school year encourage more people to buy and sell, respectively. Buyers are looking to move and settle before the new school year begins, contributing to increased competition and, consequently, higher prices.”

You want to be sure you’ve got a great agent on your side to help you with the contingencies on those offers and any negotiations that take place so you can pick the best offer. Make sure you go over closing dates with your agent. Buyers trying to time their move with the school year may need to delay a bit or move faster. This can depend on the school calendar where you live. As U.S. News Real Estate explains:

“ . . if your house goes under contract in early summer, the buyer may ask for a delay in closing or move-in until the school year finishes or their current home has sold. Alternatively, a buyer later in summer may be looking to close quickly and move in under a month. Remain flexible to keep the deal running smoothly, and your buyer may be willing to throw in concessions, like covering some of your closing costs or overlooking the old roof.”

Bottom Line

If you’re looking to make a move this June, connect with us so you know what to expect and how to plan for current market conditions.

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Top 4 Considerations When Choosing a Neighborhood

 

Relocating, even locally, is a major decision. Where you live has a profound effect on your lifestyle, so it is important to ask yourself “What do I want out of my next neighborhood?” Researching neighborhoods can help you narrow down choices and streamline the property search for your real estate agent. In this article, we’ve gathered some of the top considerations of choosing a neighborhood during your real estate journey.

1. Safety First: Peace of Mind in a New Neighborhood

The safety of your prospective neighborhood is of utmost importance during your home search. While there are many factors that can contribute to safety, there are a few key measures that can help you evaluate your decision:

• Crime Rates: Use resources like local law enforcement offices or online databases to examine crime rates. This will give you a clear idea about the safety of the neighborhood.
• Community Watch Programs: These programs are an effort for law enforcement and residents of a community to work together to help increase safety. Whether it’s watching for and reporting crime or having a plan in place during natural disasters, being in a neighborhood with this type of program can help residents feel safer.
• Infrastructure and Safety Measures: Inspect the condition of infrastructure like accessible sidewalks, roads, streetlights and security systems. Also, consider the closeness of emergency services like hospitals and police stations. These factors contribute to a safer living environment.

2. Convenience & Amenities: Quality of Life in Your New Neighborhood

The availability of amenities and conveniences can significantly affect the quality of life in a neighborhood. Easy access to grocery stores, pharmacies, hospitals and other crucial services is essential. It can save you time, add convenience to your daily routine and may be critical in an emergency. Finding neighborhoods with parks, community centers or sports facilities also offer opportunities for outdoor activities, exercise and socializing, especially for young or multi-generational families.

Good public transportation options can help simplify commuting and reduce the need for a car, saving you money on costs like gas and maintenance. Walkable neighborhoods also indicate an increased perception of safety (which helps discourage crime), reduced air and noise pollution and overall may help improve quality of life for you and your family.

3. Education and Opportunities: A Paramount Factor for Your Family

Education is a significant consideration, especially for families with children. Research the area's schools or school district, noting graduation rates, academic performance, and parent and student reviews. Websites like GreatSchools.org can provide valuable insights and help you decide whether a public or private school is best for your family. Evaluate the availability, reputation and cost of both private and public schools in the area based on your preference.

While the school your child or children attend is important, extracurricular activities should also be factored in. A neighborhood that offers various extracurricular opportunities can enrich your child's education beyond academics. Look for sports teams, arts programs and community organizations in the areas you are conducting your home search.

4. Commute and Transportation: Convenience as a Deciding Factor

They say time is money and how you spend it can affect your routine and home life. Whether you’re a remote worker with a busy social and family schedule or spend much of your time in the office, commuting times and transportation options can greatly impact your daily routine. Average commute times can indicate the convenience of a neighborhood. Shorter commutes can save time and lower stress levels, but this can also impact real estate price points depending on the region or city you are buying in. Research these times for your potential neighborhoods to ensure they align with your lifestyle.

Easy access to major highways, toll roads or public transportation can make commuting or traveling more convenient. In addition, consider the availability of bike lanes or walking paths for eco-friendly commuting options.

Whether it’s low crime rates or proximity to green spaces, there are many reasons to choose a neighborhood. Prioritize your and your family’s needs and share these with your real estate agent. Choosing the right neighborhood and community is just as important as your minimum square footage requirements. We hope you find this list helpful in your search

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Listing Checklist for Home Sellers

 

A lot goes in to selling a home.  Here is a comprehensive home seller checklist to keep you on track through each different phase of the home selling process.

Pre-Listing Checklist

• Pricing Analysis: Pricing is paramount to a successful sale.  Really look in to the neighborhood market activity.  Use our Market Compare tool to see what’s been selling in your neighborhood.
• Know your finances: Once you have determined your price, you can start to calculate what your final take home will be.  There are many great net sheets available online for sellers to calculate listing expenses.   Some of the expenses you can expect as a seller in Texas are.
  • Commissions
  • Title Insurance Policy
  • HOA Fees: It’s a good idea to call your HOA to find out what expenses are incurred by the seller in your neighborhood
  • Home Warranty
  • Survey (if you don’t have your existing one)
  • Misc. Title fees
• Finish all those small projects you’ve been talking about for five years.  Or better yet, hire a handyman to do it right.  The buyer’s inspector will be looking through every nook and cranny so it’s a good idea to knock out any issues likely to show up on an inspection
• Collect all of your documentation so you have it ready to go when the buyers ask for it.
  • Survey
  • Seller’s Disclosure Notice
  • Warranties/Service Paperwork (For recent upgrades like HVAC, water heater, roof, pest control treatments, foundation, etc). Showing you have taken great care of your home goes over very well with potential buyers.
  • You will need additional documents if your home was built prior to 1978, if you have a septic system or well and are located in a MUD.
• De-Clutter: If you don’t NEED it, get it out of the house.
  • Many stagers will offer a reasonable rate for a consultation to stage your home with the furnishings you have and re-arrange everything to look as good  as possible.
• Clean up inside and out.  You have likely gone “nose blind” to your own home so take a hard, honest look.  It’s recommended to have a professional come in and deep clean the house and carpets as well.

Listing Checklist

Loving our list? Save a copy to follow along during your home-selling journey!

• Keep the house clean and show ready
• Open the blinds.  A home that is too dark that appears to lack natural light can be a big turn off.
• Make showings easy without requiring too much prior notice. Some buyers are searching/looking on the fly and if you turn them away, they may not come back.
• Give buyers plenty of information on the house and the neighborhood.  A good idea is to prepare a binder near the front door with following information. 
• 
  
  • Seller’s Disclosure Notice
  • Survey
  • Neighborhood info discussing parks, pools, hike/bike trails, etc.
  • List of upgrades
• Don’t let the landscaping get overgrown.  Make sure to keep the yard mowed and in good shape and keep watering during the summer.
• Keep the A/C running when it’s warm out.  Buyers are much more likely to hurry out of a house if it is too hot and uncomfortable and that is the feeling that sticks in their mind

During Contract Negotiations

• Make sure you as the seller can hit all deadlines set forth in the contract
• Update the netsheet you did in the beginning to reflect the terms of the offer your are considering so you know everything you are paying for as the seller
• Make sure your contact information is on the contract so the title company can send you all documents and correspondence
• Double check all fields are completed and there are no blanks that should be filled in
• Make sure the buyer has received any required documentation prior to contract execution
  • MUD, PUD or PID notices must be presented to the buyer prior to executing a contract:  If you are a part of a Municipal or Public Utility District or part of a public improvement district, there is a specialized form that MUST be presented and receipt acknowledged by the buyer before the final signatures and contract execution are complete.  You can contact the title company to obtain these forms
  • You will be on the clock to deliver the Seller’s Disclosure Notice so it is a good idea to deliver it prior to execution of the contract and have the buyer sign off in advance to ensure that you have performed on that section of the contract
    • It’s also a good idea to look through the seller’s disclosure one more time.  You may have rushed through it at the beginning of your listing, and it is important to make sure this is up to date and accurate
• Make sure all utilities are on, the contract will require this for the buyer’s inspections

Contract to Close

During Buyer’s Option Period

• Make sure all contracts, addenda and documents are sent to title with the final execution date on the contract
  • The execution date is day 0 so the every critical date begins the day following the execution date.  So if you execute a contract on the 1st the 2nd will be the first day of the buyers option period, financing contingency period as well as other critical dates
• Deliver your existing survey (if you have one) and T-47 affidavit (which will need to be notarized) to the title company
• If you are in an HOA, make sure the title company has their contact information and instruct them to order the HOA documents in accordance with the contract so there is no delay in delivery to the buyer
  • Typical turn around time for HOA document delivery is 7-10 days
• Be ready for inspections
  • The buyer will likely have the house inspected within the first 1-4 days
• If you are in the city of Austin and your home is older than 10 years, you will be required to furnish an energy audit to the buyer prior to their option period expiring. Here is the link to a good company that has a quick turn around time: http://www.austinauditors.com/
• If you negotiate any repairs or credits with a contract amendment, make sure to send the executed amendment to the title company

Outside of Option

• Check with buyer or their agent regarding when the appraisal is scheduled
  • Have a list of upgrades and other important information in regards to your homes value ready to give to the appraiser
• Ensure the title company has delivered the HOA documents to the buyer
• Check in with title to make sure they are not waiting on any information or documentation from you
• Schedule your closing time.  Closings should take place as early in the day as possible to ensure funding happens same day

Week of Closing

• Make sure any required repairs are complete and invoices/receipts have been sent to the buyer
• Contact your lender to notify them of the closing and make sure they have your forwarding address to send your tax and insurance escrow refund to
• Contact your utility providers to schedule the utilities to be shut off.  Do not shut utilities off prior to closing.  Let the buyer know the shutoff date for utilities so they can get them transferred
• Have a plan to get the buyer(s) keys, garage door openers, remotes, codes etc
• Contact the buyers agent 4 business days prior to closing to make sure the lender has sent the buyer the required closing disclosures
  • If the buyer does not receive these at least 3 business days (counting Saturday), you will not close on time.  This is now a lending requirement.
• Review the final closing settlement statement to ensure all figures are accurate
• Ensure all furnishings, trash and debris are removed prior to closing and the home is left broom swept and clean
  • If you plan on leaving anything behind including paint, shelving, etc it always a good idea to let the buyer know in case they do not want them
  • Once you close, you MUST be completely out of the house because the buyers take possession and ownership as soon as the house closes and funds
• Make sure you have your drivers license at the closing
• Finally……..Celebrate!

PATTI LEE PROPERTIES
Results that Move You!