Serving the greater Houston area, with particular concentration in The Woodlands, Spring, Tomball and Cypress areas.
1. Have a detail discussion together so that I understand exactly what your selling goals are in relation to price, timing, type of financing you will accept from the buyer, any potential leaseback situation (if needed), etc.
2. You ask any questions of me, including my experience, approach to business, marketing plan, my fees, etc. Confirm I am the right real estate broker for you and together we sign representation papers. However, I still operate on a handshake basis. If you think at any time I am not serving your needs (that won’t happen!), you can seek other representation.
3. I will perform a search in MLS (Multiple Listing Service) in your subdivision of recent sales and active homes on the market to determine a proper listing price. We will discuss this together to agree on a listing (asking) price.
4. We will walk your home together to determine if there is anything prohibiting maximum value for your home (e.g., needed repairs, decluttering) and suggest/agree on action items and timing. Agree on a targeted listing date after this.
5. Much data is needed to input into MLS to properly list the home. You and I will work together to gather this data. This can be done in a day, but sometimes takes several days due to competing priorities of the seller.
6. I will suggest a professional photographer to you for pictures of the home that will be posted in MLS. We will also discuss any photography options you would like to employ such as a virtual tour, aerial photos via drone and night photography. I will pay for this photography. I will then schedule the photo shoot. You will need to prepare the home (clean, de-clutter) immediately prior to the shoot. Suggest you are home during the shoot in case the photographer needs anything moved.
7. We will work together to determine “showing rules.” We will need to discuss such things as hours during the day showings can occur, the amount of advance warning you require, how a home alarm will be handled, what to do with pets during showings, etc. I will then communicate this to the company, “Showing Time.” All showings will be requested through this company by buyers’ agents. Showing Time will provide notifications to you and request approvals from you (via text, e-mail or voice – as you prefer) prior to a showing.
8. I will complete the input into MLS of all data collected, along with the pictures received from the photographer. Your house is now ready to go live in MLS and Showing Time, which I will execute.
9. Simultaneous to Item 8, I will place a “Supra” box on your front door, with your house key inside, so that only buyers’ realtors can access the box and gain entry into your home to show. Through the Supra software, I am able to see what realtor entered your home, the time they entered and the time they left. You should plan on leaving the home during all showings, to the extent that is possible. Suggest you declutter, open window shades, turn on lights, play some light music (if possible) and spray light air freshener before leaving the home for a showing.
10. Also simultaneous to Item 8, I will place a “For Sale” sign in your front yard with my contact information, to capture any drive-by home buyers. This will be done by a professional sign company that I have an agreement with.
11. Most sales are generated simply by putting the home on MLS. Realtors can search MLS based on their clients’ parameters to find homes they are looking for. It is an efficient means to both buy and sell.
12. In addition, marketing efforts which I typically engage in consist of Facebook Ads and posts, my website, separate mass e-mail notification to all realtors within a radius of the home, and Open Houses. All of this will be discussed with you along the way and will be agreed to. I pay for all of these marketing efforts.
13. Once an offer is received from the buyer’s agent (see Buyer’s Checklist for a discussion of contract forms), I will present to you for your consideration to accept, negotiate or decline (I am required by the Texas Real Estate Commission to present all offers to you, even if they appear to be clearly unacceptable.) I will perform all communications/negotiations with the buyer’s agent, at your direction, representing your best interests ethically. If there are multiple offers that are similar in strength, I may conduct a Best and Final process, with your agreement, asking agents to deliver their clients’ best and final offers by a certain deadline (usually no more than 48 hours.) If there are changes to the offer that come about through negotiations, the buyer’s agent will make those changes to the contract and resubmit to me for your final approval and initials/signatures. Initials/signatures will be done electronically via Docu-Sign. Finally, I will date the contract indicating contract execution and the existence of a legal contract.
14. At this point, buyer’s due diligence begins, as they will likely ask for an inspection of the home for the possible negotiation of repairs. Typically, the period to inspect the home and negotiate any repairs is 7 or 10 days, depending on the Option Period agreed to in the contract.
15. A real estate contract in Texas requires the buyer to deposit earnest and option money with a selected Title company within three days of contract execution. The buyer’s agent can select a Title Company of their choosing, though I can recommend a Title company to the buyer’s agent that I prefer to work with. A title search is then “opened” on the property. The Title company will provide a Title commitment to the buyer, typically at the expense of the seller (though negotiable) and within 15-20 days of contract execution, to ensure there are no issues with transferring title to the buyer.
16. Option money is typically $100, though it can be more. The option money gives the buyer the right to terminate the contract for any reason within a set time period (“Option Period”) designated in the contract (typically 7 or 10 days), and is not refundable. Earnest money is typically 1% of the sales price and is refundable if the contract is rightly terminated, typically during the Option Period if negotiated repairs are not agreed to with the buyer, or if the lender does not finally approve the buyer’s loan – which is often designated in the contract as a 20 day period, post contract execution.
17. If repairs are agreed to, a standard contract Amendment will be prepared by the buyer’s agent signed by both parties and Title and the buyer’s Lender will continue their processes. Once the option period ends and contract Amendment(s) are signed, the earnest money then goes “hard” and is not refundable, unless the lender does not finally approve the buyer’s loan. If repairs cannot be agreed to, the contract can be terminated (by the buyer’s agent informing me via a standard contract form), and the earnest money is returned to the buyer by the Title company.
18. The contract will have a targeted closing date in it. Assuming the buyer’s loan is approved, and Title has completed their work, buyer and seller will close on the targeted close date at the Title company. Buyer and Seller don’t have to close at the same time, but both processes must be complete for closing to be final. Also, closing can be done remotely, typically through a remote notary. Close process for the buyer takes 30-45 minutes and for seller 15-30 minutes. Buyer’s process is longer if the transaction is financed because loan papers must be signed at closing.
19. Just before closing, and usually the day before, the buyer will conduct a walk-through with the buyer’s agent, to ensure the home is ready to close and no surprises will exist at closing.
20. Closing is considered final when funding has been completed - including the bank funding the buyer’s loan and the seller receiving proceeds – and possession can then be taken by the buyer. I will arrange in advance for you to hand over keys, garage door openers, warranties, appliance instructions, etc. to the buyer at closing. In addition, the buyer should pre-arrange to have all utilities put in their name on the closing date, but you should ensure that has been done by contacting the utility companies yourself and/or coordinating with the buyer.
21. Congratulations on the sale!