Common questions and answers for Homeowners

• What's my home worth? The short answer is "what someone is willing to pay for it". Really it depends on the location and condition of the home. As well as the lot size, livable square footage and number of rooms. Every home is different. There is no definite answer, even an appraisal is just an "opinion of value". As a real estate professional it is my duty to provide a comparable market analysis report. When I run a CMA, I compare your property to other recently sold properties in your neighborhood. Using the data I have, I adjust the potential value based on the specifics and market conditions. I will let you know what I feel the property is worth and recommend a listing price that will entice home buyers.

• How to sell a home? It is easy, just contact me and sign a listing agreement. I will walk you through all the steps. I will help you with everything from cleaning, de-cluttering, moving, cleaning up the yard, decorating, hiring services, and so on. 

• What is the cost of selling a home? Depends on what services you need. On average Real Estate Broker services costs between 1.5-3% of the homes SALE price. On top of that, there are escrow, title, taxes and warranty costs too that usually add up to about 1% of the homes sale price. If the seller pays for the buyer's agent's commission, that is generally another 2%. In short, a seller can expect to be charged around 6-7% if you consider all fees and commissions. The majority of these fees are not paid up front, they are deducted from the gross proceeds. 

• What do Real Estate Agents Do? That is a loaded question! It depends, not all agents and brokerages are the same. There are no rules defining what services a broker and their agent must provide. The truth is, a real estate agent is a sales representative for the real estate broker. The primary duty of the real estate agent is to find business for the brokerage. That is what most agents spend their time doing. We prospect for business. When homeowners lists their homes for sale, they are listing them with a brokerage or a broker, not a real estate agent. There are customary services  real estate agents provide like listing on the MLS system, for sale sign, flyers, photos, negotiations, forms, documents, contracts, open houses, showings and follow-up. However, the time, effort, materials, costs and so on, depends solely on the agent and broker. That is why, as a homeowner it is best to some research. Do not rely on pictures and referrals alone. A good realtor will provide a listing presentation that will show you what they can do for you and how much it will cost. If you do not get that info, keep looking.

• How much do Realtors cost? That varies depending on the services provided, experience of the realtor and salability of the property.

• Do I have to pay the buyer's agent commission? The short answer is "no". But the truth is, the homeowner will likely be asked to include the buyer's agent's compensation as part of the seller's closing costs, debiting their total net payment due at closing. This is because most home buyers do not have the resources to pay their agent's commission and or the home buyers feel you as the seller are getting 100s of thousands of dollars, it should be a cost for the seller to absorb. That is the customary way of thinking and so far, it has not changed. It is likely the Buyer's Realtor's commission will be part of their offer or purchase agreement. This is not totally a bad thing. Now it will be more common to negotiate a better price in order to pay a buyer's agent's commission. For example, a buyer might offer $800,000 and in the terms of that offer require the seller to pay the 2% buyer's agent commission. The seller can then counter their offer asking for $816,000 to compensate for the buyer's agent commission. Since most home buyers are getting a 30 year mortgage, $16,000+interest over 30 years is maybe only $50 give or take extra each month added on their mortgage payment. That isn't a whole lot of money to get the house they really want. Forcing agents and buyers to include their compensation as part of the purchase agreement has given the sellers some leverage to negotiate. Whereas before, it was often a fixed amount. 

• Do I charge Home Buyers a commission fee? Short answer is NO. Personally, unless there is a unique situation, I request that my commission is paid by the seller not the buyer. In the State of California the law requires all home buyers sign a compensation agreement with their agent prior to getting any advisement or service. We are prohibited from even showing homes without a signed agreement with the home buyers. That does not mean you are obligated to pay an agent. A real estate agent can decide at their discretion whether or not to charge you a fee. Most realtors will stick to the tradition of requesting compensation from the seller. Also, these agreements have term limits. They only last a maximum of three months. 

• Can I sell a home as is? Yes, absolutely! I strongly recommend it. I do recommend some clean up and preparing the home to make a good first impression. But as far as major repairs and remodeling, I do not advise making any repairs unless they are health and safety concerns and even then, you might not have to do those either. The State of California requires very little in order to sell a home as is. Also, there is NO guarantee that you will get the money you spent repairing the home back. ROI or return of investment is complex and best left to the professionals who rehab homes for a living. Many factors can cause a homeowner to LOSE money from repairs. For example, use of the property. If you spent $10,000 remodeling a bathroom with all new everything, the moment you decide to use the shower, it is worth less than it was. Think of it like buying a new car, once you drive it off the lot it is worth less than what you paid for it. There is a depreciation to home repairs and remodeling. Also, market conditions shift constantly. It might be a Hot Seller's Market in June while you are having work done, but then turn cold in September when you are ready to sell. It is safer for the seller to list a home as is and let the market tell us if the home needs anything repaired or remodeled. Some agents will tell you to do repairs, but in my opinion they are either misinformed or they know that a move-in ready home will sell faster and they want to get paid faster.

• How do you sell a home fast? In my opinion, a vacant home sells the fastest. If you can vacate the home or at least make it appear vacant, with the majority of your belongings in storage or packed up in the garage, it will sell faster than an occupied home. There are plenty of cash buyers out there practically begging homeowners to sell them their homes. These cash buyers often close escrow in 10-14 days. However, cash buyers are not all the same. Most "cash buyers" are investors looking for a deal and will offer well below market value for the home. If you can wait the extra 2-3 weeks, it is better to wait and get thousands more for the property. 

• Does home staging help you sell? Yes and No, it really depends on the home. If the home has been remodeled recently or is in very good condition, staging will likely help. If the home is occupied, shows a lot of wear and tear, needs work or is in disrepair, then staging is likely a waste of time and money. Like putting a band aid on a bullet hole. Also, style is subjective. Some buyers are actually turned off by the stager's esthetic style. And stagers are mostly concerned with how a space looks, not the practical use of the space. That can sometimes confuse or discourage a home buyer. I prefer what is called "light staging". Which is mostly small pieces and accent pieces strategically placed. As well as flowers, plants and other sensory items. Even small things like changing the light bulbs for proper lighting can have a greater positive effect than a cute mid-century modern chair that only a fashion model can fit into.

• How much are escrow fees? About $2-$3 per thousand dollars. So if your home  is selling for $900,000 the escrow fee would be around $1,800 to $2,700.