First, I would like to say that I do not consider myself a salesperson. I consider myself a consultant, advisor, advocate and negotiator. And when representing sellers, a marketer as well. These being the bare minimum.
COMMUNICATION
Open, honest and free flowing communication is key in any relationship, and the intimate relationship between seller and agent is no different. During business hours I will make myself available by phone, email or in person. Additionally, I often follow up phone calls and in-person meetings with an email recapping our discussions to confirm we all have the same understanding and so that we all have it in writing with a date and time stamp.
PREPARATION
YOU ONLY HAVE ONE CHANCE TO MAKE A FIRST IMPRESSION.
Once you have signed a listing agreement with me, we will prepare the property for market. This can take several weeks or even months, depending on the property.
One of the first steps in preparation is the landscaping, as that can take some time to mature.
Preparing the property also includes decluttering and depersonalizing the property. Depending on the existing contents of the home, a few items might be left behind for staging. But we want it to be sparse so buyers can focus on the land and structure and not your personal belongings. Additionally, inspectors will not move your personal belongings, so we want a clear property for the most meaningful inspections and easy access.
One of the easiest ways for a buyer to envision themselves in the property is to see the seller out of it. If at all possible, the property should be vacant. There are a few main reasons for that:
- A property that is easy to show is easier to sell. We want to make viewing and buying the property EASY for potential buyers.
- It is not at all enjoyable to have to keep your home looking, smelling and sounding pristine.
- People, even if you make it clear that it is by appointment only with 24 hours notice (or whatever), will come up to your door and ask if they can come in, or just look right in your windows. Yes, that is trespassing, but people do strange things—especially when a home is on the market (and advertised all over the world on the internet) and there is a For Sale sign out front.
- You, or your tenants, are most likely going to have move out at the close of escrow and it is much easier to vacate on your own schedule than to have to rush things on the buyer’s timetable. For example, what if they want to close in 7 days? Sure there is a possibility that they might let you rent back from them, but vacating prior to going on the market is far less stressful.
DISCLOSURES AND LIABILITY
Perhaps the most important part of the preparation is disclosures. And I feel one of the most important roles as your consultant is to eliminate, or minimize, any liability for my clients. Far too many lawsuits result from failure to disclose, or fully disclose. According to Wolff Law Office, based in San Francisco:
In California, the seller of a residence has both a common law and statutory duty of disclosure to the buyer, and even full compliance with the statutory duty does not excuse the common law duty. 1 Miller & Starr, California Real Estate (3d ed. 2005) § 1:140.
Under the Common Law, “where the seller knows of facts materially affecting the value or desirability of the property which are known or accessible only to him and also knows that such facts are not known to, or within the reach of the diligent attention and observation of the buyer, the seller is under a duty to disclose them to the buyer.” Lingsch v. Savage, supra, 213 Cal. App. 2d at 735.
“A breach of this duty of disclosure will give rise to a cause of action for both rescission and damages. [Citation.]”’. Shapiro v. Sutherland, supra, 64 Cal.App.4th at p.1544; Karoutas v. HomeFed Bank (1991) 232 Cal. App. 3d 767, 771.
“A duty to disclose may also arise in the so-called `half-truth’ context–that is, when a speaker makes a representation which, though not false, he knows will be misleading absent full disclosure of additional facts known to him which qualify the initial representation.” San Diego Hospice v. County of San Diego (1995) 31 Cal.App.4th 1048, 1055, fn. 4.
Where one undertakes to speak to a matter, he must not only state the truth, he also must not suppress or conceal facts within his knowledge that materially affect those stated. Marketing West, Inc. v. Sanyo Fisher (USA) Corp. (1992) 6 Cal.App.4th 603, 613.
In other words, when one speaks at all, he must make a full disclosure on the subject. Jacobs v. Freeman (1980) 104 Cal.App.3d 177, 192.
Thus, a duty to fully disclose may arise from a partial disclosure that is likely to mislead, if other material facts are not also disclosed. Marketing West, Inc. v. Sanyo Fisher (USA) Corp., supra, 6 Cal.App.4th at 613; Lacher v. Superior Court (1991) 230 Cal. App. 3d 1038, 1046-1047.
Neither an “as is” sale nor the buyer’s independent inspection exonerates a seller or the seller’s agent from fraudulent misrepresentations concerning known defects not otherwise visible or observable to the buyer. Loughrin v. Superior Court (1993) 15 Cal.App.4th 1188, 1195; Shapiro v. Hu (1986) 188 Cal. App. 3d 324, 333-334, 233 Cal. Rptr. 470; Lingsch v. Savage (1963) 213 Cal. App. 2d 729,740-742,29 Cal. Rptr. 201; Greenwald & Asimow, Cal. Practice Guide: Real Property Transactions (The Rutter Group 2005) § 4:3 52, p. 4-86.10; 1 Miller & Starr, California Real Estate supra, §1:154.
“[W]here the seller actively misrepresents the then condition of the property or fails to disclose the true facts of its condition not within the buyer’s reach and affecting the value or desirability of the property, an ‘as is’ provision is ineffective to relieve the seller of liability arising from the concealed condition.” Lingsch v. Savage, supra, 213 Cal. App. 2d at 742; Galen v. Mobil Oil Corp., 922 F. Supp. 318, 324 (C.D. Cal. 1996)
In other words, whether you are asked or not, tell the WHOLE TRUTH and NOTHING BUT THE TRUTH. Or you may be facing a very unpleasant lawsuit.
We will want to have, at the very least, a home and pest inspection, for full disclosure, and also to determine if you want to make any pre-market fixes and/or improvements. We may want more inspections, depending on the findings of those initial inspections, as well as the age of the home and local issues. Additionally, some jurisdictions have other requirements for disclosures, sewer laterals, fire hazard inspections, etc. Curing any issues may require reinspection, or thoroughly documented receipts.
NOTE: Providing all the information that any potential buyer may want to know in advance of them writing an offer, will take a lot of the emotional charge out of buying your property. There is NO point in leaving this up to chance and surprising the buyers, often unpleasantly, with issues surrounding the property.
Depending on the condition, there is a myriad of other things we might do during the preparation period. This always varies from property to property. Commonly, but not necessarily: painting, flooring and general brightening up and buttoning down. Light staging? Full staging? No staging? Depends on the property.
Once the look and feel are complete we will want to make sure that it is squeaky clean, including the windows—inside and outside.
Photography, videos, floor plan and pricing are next.
PRICING
I will always be honest with you about the price and condition of the property.
Let’s face it: Time is MONEY. Overpricing your home can cost you dearly.
We should be pricing based on recent SOLD comparables. Active listing prices can often be a potential seller’s dream, not based in reality. We want to base our price on reality.
So now we have the 3 P’s:
– Preparation (which include the full disclosure package)
– Photography
– Price
Once the listing goes live on the internet, every single thing that we do related to the listing will be public knowledge. So we want to make sure that we have all our I’s dotted and T’s crossed BEFORE we go on the market. We do not go on the market until we are ready. Remember: We only get one chance to make a first impression.
Once on the market, there are Broker Tours, the days of which vary from area to area. This is where we get to introduce the property in person to interested agents.
Then there are Saturday and Sunday Open Houses, where we get to introduce the property in person to potential buyers (and, yes, neighbors will come look as well).
We will know if we got our 3 P’s right if we get an offer in the first two weeks. If we don’t get an offer in the first two weeks, that means that at least 1 of the P’s is not right, and that is usually the Price. Remember: Price overcomes all objections.
After the first two weeks, interest diminishes and people move on—to all the new listings that came on the market since then.
We must get everything right the first time.
And, hopefully, we get it so right that we have multiple offers. Offers received in multiple offer situations are stronger offers because the buyers know they are competing for the property. If the listing sits for weeks, or months, then the likelihood of a buyer coming along and asking for concessions is much higher, because they know they are the only offer on the table—which makes them the best offer.
We don’t want that.
OFFERS
Once an offer is accepted, depending on how it is structured, the buyer may have several contingencies that will allow them to back out—without losing their deposit. However, it can be difficult for a seller to back out. So we will want to carefully review all the details, not just the offering price. Sometimes the terms can be sticking points, so we will want to carefully negotiate each item of concern.
Because we have been so careful with everything prior to going on the market, once the purchase contract has been ratified, as the sellers you should not have much to do while the buyer does their own due diligence (which will vary from person to person). Then, if applicable, the appraisal and financing (which I will have vetted for you prior to accepting the offer).
Hopefully there are no new discoveries during escrow and everything closes smoothly so you can move on to the next chapter of your life.
Thank you for considering choosing me to help you navigate and negotiate one of the most important decisions in your life. You will not regret it.
Kelley@KelleyEling.com
415.308.1182
NOTE: If, for some reason—before an offer is ratified—you decide not to sell your property we can cancel the listing agreement. If an agent tells you differently, you are talking to the wrong agent.
Representing The Best Interests Of Sellers and Buyers Of Residential Real Estate Since 2002.
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