What does the seller have to do after an offer has been accepted?

Congratulations! You've just accepted an offer on your home, and signed the binder. Now what?
First things first, your agent should let you know what you need to do at this point. Your agent and your attprney take it from here, and call you when they need you, or to give you updates on what is going on behind the scenes on your behalf.

Here's what occurs behind the scenes when I represent a seller whose property has just gone under deposit.  I suppose (and hope) it's the same for the agent that is representing you.

The Listing Agent makes sure that everyone involved in the transaction haas a copy of the fully executed and properly filled out binder paperwork, along with the necessary disclosures. That includes you as the seller,  your attorney, and the buyers agent representative.

If you have been making the appointments for agents to show your home, your agent should advise you the moment you have accepted an offer as to how to proceed  with making further appointments. You should not be fielding any calls from Realtors now.  Let your agent handle that. This is a bone of contention with me -personally, I do not believe in homeowners making their own appointments with other agents to show the property. I consider that as part of my services, and one less burden for the homeowner to bear while their home is on the market. Additionally, I always know how many showings there are at any given time, I can talk up the property to the agents before they show it, and build a rapport with the showing agent, if I don't already know them.  NOT ALL Listing agents will make  appointments, so ask when you hire that agent.

The listing agent reports your property's status to the MLS.  Most Multiple Listing Services have rules as to when the property must be reported as under deposit, or the agent will get fined. Our area MLS requires a status change to CTS within 48 hours of an accepted, fully executed offer.

For the sake of this article. I am assuming that you have already chosen your new home, and know where you are going.  At this time, you should be getting moving estimates, and start packing.  Go ahead, get at least four or five estimates, They can vary greatly.

The buyers agent contacts the listing agent to coordinate the building inspection's date and time.Your agent will call you  as soon as an appointment has been set to confirm it with you. Now, there is something to do! Make sure that the inspector can get to the major components of your house, and they are not blocked by furniture or various stored items. For example, if your  electrical panel, furnace, or attic has access blocked by any items, you should move them prior to the inspectors arrival.

Also, if your home is going to have a radon test, your windows and doors should remain closed for 48 hours prior to the test, and another 48 hours while the test is underway. Entering your home and leaving your home like you normally do is no problem, but the windows will need to remain closed. If you like to leave the front door or back door open, you will have to remember to leave both of those doors closed during this period.

If you have any manuals for any appliances or components that are remaining with the house, leave them out for the inspector.  If you have a record book of any work performed on your home, leave it somewhere where your agent ONLY can see it, and refer to it if necessary.

Last but not least regarding the inspection,  vacate the premises, but be available by phone to your agent if the buyers, buyers agent, or building inspector has any questions.

As a listing agent, I expect that the buyers agent will remain in the house during the entire inspection,  and I tell them so. Believe it or not, it's not always a given. I also stop by during the inspection to introduce myself to the buyers on your behalf, and to  get a "read" on the buyers, and how the inspection is going. I do respect the buyer's and the buyers agent privacy, so it will only be for a few minutes. I will be in touch with the buyers agent later in the day to see if there were any concerns that we should know about, if I haven't already found out about anything during my visit.

Remember, the inspector will still have to pick up the radon test if you are having one, so your agent will call you to set up that appointment.

The listing agent follows up with your attorney to make sure that contracts went out, and then follows up with the buyers agent to make sure that they are signed. Deadlines are outlined in your offer to purchase. You sign the formal contracts AFTER the buyers signs them, and they give the balance of their deposit.

Your agent follows up with the buyers agent to find out about the mortgage application,  and  you can expect a call from your agent to make an appointment with you for  the appraiser for the bank to make a visit to your home.  It's one of the last things that happen prior to the buyer obtaining their loan.

Wait to hear from your agent or your attorney that the mortgage is approved.

Call the utility companies to disconnect service on the date of your closing. If you have automatic oil delivery, check your tank now, and if you have enough to last you, call the company and stop the automatic fill. Your attorney handles the water company, so that's onle less phone call for you to make.  Don't forget to get change of address forms from the Post Office. Call any creditors and let them know about your pending move, (or advise them in the space usually allotted when you send in your remittance) Give at least a three week lead time

Attending the closing is a personal choice. About 65-70 percent of my seller clients attend the closing with the buyers present. Its not mandatory, and in some instances you won't want to, or cannot go.

Sure, there can be setbacks, glitches, and maybe even delays, but you have professionals working on your team to handle that. As long as you are in capable hands, relax. The process is a lot easier for you than it is for the buyer who has MUCH more to do, and is a lot smoother  than you might think!

The Importance of Pre-Listing Building Inspections

Seller's Pre-Listing Inspections - a very relevant  article contributed by Nick Gromicko, FOUNDER. www.nachi.org International Association of Certified Home Inspectors.

Eventually, your buyers are going to conduct an inspection. You may as well know what they are going to find by getting there first.  Having an inspection performed ahead of time helps in many other ways:

    It allows you to see your home through the eyes of a critical third party.
    It helps you to price your home realistically.
    It permits you to make repairs ahead of time so that ...
    Defects won't become negotiating stumbling blocks later.
    There is no delay in obtaining the Use and Occupancy Permit.
    You have the time to get reasonably priced contractors or make the repairs yourself, if qualified.
    It may encourage the buyer to waive the inspection contingency.
    It may alert you to items of immediate concern, such as radon gas or active termite infestation.
    It may relieve prospects' concerns and suspicions.
    It reduces your liability by adding professional supporting documentation to your disclosure statement.

    It alerts you to immediate safety issues before agents and visitors tour your home.

Never hire an inspector who is not a member of InterNACHI, which provides the most trusted and rigorous training for inspectors in the industry.
 
Copies of the inspection report, along with receipts for any repairs, should be made available to potential buyers.

Nick Gromicko, FOUNDER. www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  www.NACHI.TV

What is a Walk Score?

What is a Walk Score?

In the past year or so , you may have noticed  that more and more properties for sale are featuring a WalkScore. The company defines it as the walkability factor  to area shops, destinations, schools, and amenities of any given location. If you use the drop down menu when you check your walk score, you will see a list of those destinations and exactly how far they area away from the property you are inquiring about.

Keep in mind that this is a subjective number. Someone from a big city who is accustomed to having everything extremely close will want a higher number, and someone from a small town probably would be more comfortable with a lower number.And remember, what some people deem walkable, others do not.

Additionally, a lower walk score is not necessarily bad- some buyers want more privacy, which would mean that walkable amenities are not close.  If you don't want to be so close to your neighbor, a lower walk score would probably be a prerequisite. It all depends on your level of comfort with the housing density and the importance of nearby amenities. This is just another tool, and a very helpful one at that. Find the "walk score" range that fits your needs as best as possible. There is no wrong Walk Score- just one that is right for you.

Click here to determine the walk score for your home.

Today's Mortgage Rates and Financing update 6/17/11

Another Mortgage rate and financing update courtesy of Jennifer Buchanan of MetLife Loans.

After experiencing a scary setback earlier in the week, home loan borrowing costs improved again today as a "flight to safety" continued to benefit bond yields.

A "flight to safety" happens when investors are nervous about owning risky assets like stocks, but do not want to miss out on earning a return on their funds, so they allocate their money into risk-free government guaranteed U.S Treasury debt to provide a safe-haven and an investment return. As benchmark Treasury yields fall on "flight to safety" buyer demand, prices of mortgage-backed securities move higher in unison. This allows lenders to reprice their rate sheets for the better and gives originators an opportunity to offer fence-sitting borrowers lower mortgage rates or more competitive closing costs.  

 The "Best Execution" conventional 30-year fixed mortgage rate is 4.50%. Some lenders may be quoting 4.50% with increased closing costs in the form of origination fees. Some lenders may also be quoting 4.375%, but those offers will definitely carry additional closing costs.  These costs could be worth it to applicants who plan to keep their new mortgage outstanding for long enough to break even on the extra up front costs. 

30 year fixed - 4.50% - 0 points for rate
20 year fixed - 4.250% - 0 points for rate
15 year fixed - 3.625% 0 points for rate
10 year fixed - 3.250%
5/1 ARM - 2.75% - 0 points for rate
7/1 ARM - 3.250% - 0 -points for rate
Jumbo - over 729,000
30 year fixed - 4.99% 0 points  for rate
15 year fixed - 4.50% - 0 points for rate
5/1 ARM - 3.50% - 0 points for rate
7/1 ARM - 4.00% - 0 points for rate

About Jennifer Buchanan:

    Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

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A detailed market analysis in today's real estate market is NECESSARY!

It's time.... You've contacted an agent to do a price analysis of your home, and they bring you a nice little "fluffy" CMA  that has a few homes that are on the market, a few that are under deposit, and a few more more that sold, all spiral bound, in full color, with the marketing plan built right into it.

All great, but is it enough information to price your home correctly? Probably not. First of all, those pre-packaged market analyses are completed at the touch of a few buttons on a computer program without a lot of thought process going into it. Furthermore, some of thesse programs only allow three to six comparables per listing status.  (active, pending, and sold)

Even if the agent hand picks the comparables for you, the program itself has its limitations. The whole presentation might look lovely, but the accuracy of pricing may be a whole other ball game- and then there's the standard marketing plan that will sell every house in town which is nicely included in your presentation with pretty graphics.  Even a novice knows that the marketing plan that is used to sell the house next door cannot be correct for your home, too.

A market analysis that shows just five or so listings in different status categories does not indicate a price for your home. Rather, it indicates some kind of average for the listings chosen.  I do not consider those a real pricing analysis, sorry.

Real CMA's are kind of boring, face it- unless it's my animated self going over all of the information for you!  If you happen to have an agent come over who gives you one of these fluffy CMA's, use it as a placemat. It's not worth anything else.

A market analysis should be so detailed  that even YOU don't have to guess as to what the price of your home should be. It will be inherently obvious- no guessing required. If you want to know the true price of your home in today's market, contact me. No fluff unless you want it, no hard sales tactics, just correct information. :)

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