The Sales Process Made Simple

A real estate agent helps you sell your home, negotiate a successful offer and generally represents your interests throughout the real estate sales process. An agent with good knowledge of the market is key. We are happy to give you advice on finding a realtor, or to work with your existing realtor.

Your real estate agent will discuss valuation of your home and market trends. You may decide this is the right time to sell, you may find it best to hold out, everyone has a different situation. You may want to sell quickly, or you may decide to take your time. Your realtor can help you weigh out your options. 

Once you agree to a sale price based on a comparative market analysis and other factors discussed with your realtor, you will begin receiving offers from qualified buyers.

Your realtor will help you list your home on digital platforms. They will make recommendations to improve the aesthetics and general appeal of your home for your local market. The exterior and interior of your home will be photographed, documented and listed on platforms like Zillow.com, RedFin and other Realtor Platforms.

Serious buyers may inquire about touring the property. Realtors may assist you in organizing an open house.

Even if you receive multiple offers at your asking price, you don’t have to accept any of them. 

Negotiating and going back and forth with counteroffers is part of the process.

Know that even if a buyer won’t budge on their sales price, there are other aspects of the sale you can negotiate to ensure you get a better deal. Your realtor can let you know if making fewer repair concessions or agreeing to an inspection contingency would be beneficial in your situation.

Once all the details are ironed out, you and the buyer will sign a purchase agreement, taking you one step closer to closing the sale.

The California purchase agreement is an official legal form that is employed when an individual would like to sell their property to another party. 

The seller (or their agent) will provide a copy of the document to the buyer that includes all the essential provisions, disclosures, and general information needed to secure a binding contract. Usually, an earnest money deposit will be made on the buyer’s behalf as a sign of good faith before the actual closing. 

In most cases, after signing a purchase agreement, the buyer will need an appraisal of the house. 

Most lenders require that the home is appraised before they agree to give out a loan; they want to make sure the home is worth as much as the mortgage so it can act as sufficient collateral.

Following the appraisal, the buyer has the right to hire an inspector to see what could be wrong with the home that’s gone unnoticed. The appraiser will look at the roof, the foundation, the electrical wiring, the HVAC system, and the plumbing, among other things.

If there are major issues uncovered, expect more negotiations. 

The buyer is going to use the potential cost of repairs to ask for a lower price (if the purchase agreement has relevant contingencies).

Day 1: Pre Escrow

Pre-escrow is marked by document review, questionnaires, paperwork, negotiations, an offer, and purchase agreement.

Day 2-5: Funding Escrow

Earnest money deposit (down payment) is made by the buyer to fund the escrow account. As part of this process notarization of the grant deed, tax forms, payout documentation, statement of information and more are filled out and agreed upon (or not) by you the seller.

Day 3-20: Inspections and Disclosures

During this time buyers will perform their due diligence on the property, including but not limited to conducting a professional inspection of the home. As a seller, it is at this time when you will likely be providing a list of disclosures regarding the property and as required by federal, state and local laws.

Day 20+: Negotiations Based on Findings from Inspection

Post-inspection, buyers may submit a “Request for Repairs”. A “request for repairs” is generally covered under the “inspection contingency” in the purchase offer.

This request may ask for one of two concessions:

1. Reduction in price based upon necessary estimates for needed repairs
2. Request for the repair of items prior to closing

In the event that the offer incorporates an “appraisal contingency” as well, an appraiser will inspect the property to assess its fair value. The appraiser will also ensure other aspects of California Law are followed including proper outfitting with smoke and carbon monoxide detectors, as well as a double-strapped water heater.

Day 24+: Buyer Secures Financing

From this point forward, the majority of work and obligations land solely on the buyer. They secure approved funding from the lender, purchase homeowner’s insurance and finalize appraisals.

1. Title Search: If one has not already been conducted, either the title company or a hired attorney will perform a title search in order to confirm that no assessments or liens exist on the title. Presuming the title is “clear” the closing will proceed as scheduled and a “title commitment” will be issued by the title company or attorney handling the proceeding.
2. Title Insurance: Purchased by the buyer as well as a final title search.
3. Loan Documents: Buyer’s lender finalizes and sends the loan documents to the escrow agent or seller attorney.
4. Final walkthrough: The final walkthrough is usually conducted anytime between this point and up to the day prior to the actual closing. This is to confirm that the property is in fact in the same condition it was at the start of the process and as agreed upon in the contract.
5. Signatures: Signature of the final “Verification of Property” form by both parties.
6. Buyer finalizes down payment: The remaining money owed for the down payment is paid by the buyer to a representative of the title company or attorney who is acting as the settlement agent for the transaction., closing costs and other associated expenses with the escrow agent.
7. Deed is recorded: Funds are disbursed and the closing reaches completion.

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