• Online Property Market Analysis
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  Denver metro area.

• Recommended Books

• Preparing Your Home to Sell

• The Steps to Selling Your Home
  • Decide on  the Asking  Price
  • The Listing Agreement and Agency Relationships
  • The Marketing Plan
  • Getting an Offer to Purchase
  • Selling Expenses
  • Title Policy
  • Home Inspection
  • Survey
  • The Appraisal
  • Loan Approval
  • Preparing to Move
  • A Final Inspection
  • Closing and Timing Your Move
  • Contact us About Selling Your Home 

The Selling Steps

Selling a home can be very stressful because it gets you out of your routine and for most of us, keeping a clean house is difficult. When the time comes for you to sell, it is important to be prepared and to make knowledgeable decisions. If you read the brief report below, you'll be better informed and hopefully feel better, knowing what lies ahead:

How to Decide on the Asking Price  (List Price)

We will provide you with a "Comparable Market Analysis" most likely at our first meeting.  This report will show you homes in your area that are similar to yours that have sold or are currently on the market.  Before you determine a price, decide first how long you are willing to wait before you get an offer to purchase from a buyer.  

The price you pick will strongly influence how long your home is on the market.  In our report you will see the average number of days that a home takes to sell in your area.  If you set a price that is too high then the "Law of Diminishing  Returns" states that : After your home has been on the market too long, home buyers will assume that something is wrong with your home or your price and you will usually receive less than what you would have received, if you priced it correctly to begin with..  The first question a buyer should ask prior to making an offer is, "How long has it been on the market"?   Your home can be overpriced even in a hot market.  The other issue is that you don't want to put yourself in a position of needing to sell.  Also, approximately 80 percent of your showings will be during the first 3 weeks on the market.  So, as we have overstated, pricing is very important and you should base it on the following:

• Current Overall Market Conditions
  • Are prices moving up or down?
  • How many homes are for sale in your area?
  • What is the average time to sell?
• Your Competition
  • How does your home compare in terms of condition, location & features
  • What are your competitor's listing prices?
• Recent Sales
  • What have homes similar to yours sold for within the last 60-180 days?
  • What were the asking prices versus the actual sold prices?
  • How long were they on the market?
• Your Motivation
  • How soon do you need to sell?

We will give you our opinion of value but ultimately the price is your decision.  The next step is the paperwork (The Listing Agreement)

The Listing Agreement and Agency Disclosure

The Listing Agreement is an agreement between you and our company which allows us to represent you as your exclusive real estate agent.  It primarily covers the services we will perform, our fiduciary duties, the length of the agreement, the listing price and terms, inclusions, exclusions and our agency relationship.

We prefer to represent you as a Seller's agent..  We will discuss other types of agency relationships at our first meeting.   Now it's time to get the ball rolling.  See the "Tips for Preparing Your Home to Sell" page.

The Marketing Plan

Our marketing objectives should be to sell your home for the highest price in the shortest possible time.   In order to achieve these objectives we should work together to do the following:

• Establish a realistic listing price for your property based on the Comparable Market Analysis.
• Prepare your home for showing - do any repairs, replace, paint and clean if necessary
• Gain maximum exposure by placing your home in the  Multiple Listing Service
• Determine all possible avenues of advertising to gain maximum exposure locally, regionally, nationally and worldwide: news paper, magazine, open houses, the World Wide Web, etc.

At our first meeting, we will give you a marketing plan which we believe best suits your house.  We will make some adjustments if necessary,  based on your input.

Getting an Offer & Negotiation

The time will come when a buyer will fall in love with your home and wish to make an Offer to Purchase.  The Colorado Real Estate Commission provides standard Purchase and Sale forms that Realtors must use to write an offer.  The Buyer's Realtor will then bring the offer to us and we will present it to you.  We will inquire about the current status of the Purchaser's loan and other financial information to help you make a decision.  You can either accept, reject or counter the offer.  Once you and the Buyer have agreed in writing, the agreement becomes a binding contract.  We will then put your home "under-contract".  You may continue to show the house if you wish and take backup offers. 

Selling Expenses

At our first meeting, we will provide you with an estimate of your net proceeds upon the sale of your home.  We will do the same when you receive an Offer to Purchase.  Some of the costs to sell are:

• Payoff of the existing mortgage plus prorated interest
• Prorating of taxes until the date of closing plus a Certificate of Taxes from the county
• Points & Buyers Costs (if any)
• Title charges - Title insurance policy
• Closing fee - Customarily split with Buyer
• Recording the release of Deed of Trust
• Colorado State Tax Stamp
• Prorated Homeowners Association Dues
• Brokerage fee
• Attorney Fees (if any)

The Title Policy

The contract states that you agree to provide the Buyer with a title policy to insure the good condition of the title.  We will provide you with information on local title companies and their prices.  Once you have decided on a title company, we will order the title policy.  The title company will then provide us with a commitment to insure based on the condition of the title.  We will review the commitment You should have an attorney review the commitment if there are any problems that arise regarding the condition of title.

Home Inspection

The buyer of your home will probably want to hire a property inspector to inspect the condition of your home.  The contract will state how long the Buyer has to complete the inspection and inform you of any unsatisfactory conditions.  Allow about 2 hours for the inspection.  It's better if you leave while the inspection is taking place.  The buyers agent will assure that your home is secured after the inspection  There are usually some items that come up during the inspection that the Buyer will request you take care of prior to closing.  Each Buyer is different.  Some are picky and some are not.  You will have to come to an agreement with the Buyer to keep the contract in force.  Once you have agreed, you can breathe a sigh of relief.  The inspection is usually the highest hurdle.

The Survey

All mortgage lenders require a survey of the property prior to closing.   The survey will confirm that the property's boundaries are as described in the purchase and sales agreement.  A surveyor probably will not come to your home unless you have acreage.  The surveyor may issue a certificate based on a previous plat survey after verifying that there have not been any changes to the boundaries.  The survey is customarily paid by the Buyer.

The Appraisal

The Buyer's lender will order an appraisal to determine the value of your home.  We will call you to set up a time that the appraiser can come by.  The appraiser will measure your home and take pictures of the exterior, front and back.  The appraiser need to come inside to measure rooms and will look at the condition of your home.  You should allow 20-30 minutes for the appraisers inspection.  You should prepare your home like you would for a buyer prior to the appraisers arrival.  It will take about 1-2 weeks for the appraiser to complete the appraisal.  We will call you once we know if your home appraised for at least the contract price. It is customary for the buyer to pay for the appraisal.

Loan Approval

The Buyer must notify you of their lenders final loan approval, in writing by the specified date in the contract.  We will be paying close attention to this.

Preparing to Move

In addition to packing and lining up movers or friends, you will need to contact the utility companies for electric, gas, telephone, cable tv and trash.  You will also need to file a change of address form with the postal service.

The Final Walk-Through & Maintaining Your Home

A day or so prior to closing the Buyer's Realtor will schedule a final walk-through of the property to make sure that everything is in working order and in the same condition as when the contract was signed.

The Closing and Timing Your Move

We will call to schedule the closing and final settlement of your home between you and the buyer.  A day or two prior to closing, we will call you with the amount of the check you will receive at closing, go over individual figures and request changes, if necessary.  Typically at the closing are you, the closing escrow officer, the buyer and the Realtors.  Be prepared for writer's cramp.  At closing, the closing agent will:

• Receive & Disburse Funds
• Prepare and Deliver Documents
• Notarize and Record Documents
• Mail Your Mortgage Payoff & Updated Address

After closing you can work out any timing or other final details with the buyer.  It is customary to provide the buyer with one key at closing and leave the rest in the house

There it is!  Your done unless you have to go to another closing on your next home.  Now the real work begins.   Hopefully you have movers or some good friends...