by Neil Kearney | May 23, 2014 | For Sellers, Real Estate 101, Uncategorized
Selling a home can seem like a daunting process. Especially if you haven’t done it before. There are many facets to the process and enlisting a good Realtor is a very important piece of the puzzle. I help people list their homes all the time and for many it’s their first time. Here is a detailed overview of the process of selling your home.
Preparation
There are three factors in which your home will be judged; location, condition and price. Location is fixed, after you purchase the property you can’t do much about it. An appropriate price can make up for deficiencies in the location and condition. Condition is what you, as a seller has most control over. The question you should be asking yourself as you prepare your house for the market is “how will my house compare with others in this neighborhood and price range?”. If your home compares well, you will be rewarded by your home appealing to more buyers and this will result in a quicker sale and more money. Your home needs to have finishes that appeal to buyers and be in really good showing condition. This article on when to upgrade may be of help to you as you consider some last minute upgrades to your home. Here are some tips on getting your home ready to sell. Your Realtor will be able to give you advice as to what needs to be done. Here is an article on the top 5 ways to maximize value that you may be interested in reading. Be sure to have the house ready for photos. The photos posted represent the initial showing for all potential buyers. If the house doesn’t look good in the photos many buyers won’t take a look in person.
Another part of the preparation process is to review and sign the listing paperwork prepared by your Realtor. Filling out a Sellers Property Disclosure is part of this process. In Colorado there is a standard form which helps in this process. My advice as you fill out this form is to be through and clear in your disclosure. Don’t leave the buyer asking for more information. If you indicated that you have had a past roof leak give all the information you have; when it happened and how it was fixed. In my experience, the more information on the disclosure, the more confidence the buyers have in the sellers and the transaction. This is also a good time to gather any documents that would supplement the disclosure. You will be asked for these in the buy/sell contract so it would be good to start gathering anything that is of material fact about the house (roof warranty, survey, past inspection, insurance claim, etc.)
Showings
In order for your house to sell it must make an emotional connection with a buyer. In order to make an emotional connection with a buyer your house must be a clean and inviting environment. They must be able to picture themselves living there. Here are a few tips for creating a successful showing.
- Leave it to the buyers – Many Sellers think that they can be of help during a showing, answering questions or giving a tour. This is what the buyers agent is for. Sellers get in the way and buyers tend to rush through and showing and are not able to talk openly about the home.
- Light and Bright – It’s best if the house shows brightly. This means that the blinds are open, interior doors are open and many of the lights are on.
- Neat and Clean – You only have one shot to make a first impression so make sure that the house looks as good as possible as you leave each morning.
- The Extra’s – You may want to go the extra mile and put out refreshments and play some tasteful music. These are not required and especially with the music should be done with discretion. When there is music being played I usually turn it down to see what noises the music is covering up.
Offer
If all of the above goes well you can expect an offer! In most cases the buyer has their own agent who represents them and will prepare and deliver the offer to your agent. Your agent will then meet with you to discuss the merits of the offer. Some of the criteria your agent will help you think through are: price, closing date, financing terms and qualification, inclusions, inspection dates and additional provisions.
If you are lucky enough to get multiple offers you will want to read this article. In a normal situation you will have one offer who will submit an offer that isn’t exactly what you are offering. Your agent will then help you formulate a negotiating strategy and prepare a counterproposal to send to the buyers. This process continues until the buyers and sellers reach an agreement or it doesn’t come together and you wait for a new buyer.
From Contract to Closing
Finding a buyer and agreeing to an acceptable price and terms with a buyer is one of the high points of a real estate transaction. No more daily showings, no more uncertainty, making plans for the future, it’s exciting stuff. But then comes the realization that you are only part way to the finish line. There is still work to be done. This is a checklist of items that the seller is responsible for between contract and closing.
Order Title Commitment – In Colorado the seller is responsible to providing the buyer a title insurance policy in conjunction with a real estate purchase. The first step of this process is ordering the title commitment. The listing agent usually handles this for the seller. This is also a great time to provide to the title officer the information on your existing loans which will need to be paid off at the closing.
Homeowners Association Documents – As per the Colorado approved real estate contract the seller will provide the buyer a copy of the relevant HOA documents. This shall include bylaws, rules and regulations, financial documents, minutes from the most recent meetings. Again, this is something that the listing agent usually tries to supply (at least I do) but sometimes the information is embedded in a members only website and the Realtor might need help with this.
Gather Paperwork – The buyer will want to have any relevant documentation regarding the home. In conjunction with the disclosure requirements the seller must supply the buyer any prior inspections or reports that give insight to the condition of the home. This would also be a good time to gather any manuals and warranties and set them aside before your packing gets into full gear.
Prepare for Inspection – Just because most of the showing activity has subsided it doesn’t mean that you are off the hook for keeping the home looking good. I would argue that the inspection is your most important showing and the house should be prepared as well as possible. In addition to the general cleanliness here are a few tips to help the inspection. Replace the furnace filter and clean the humidifier filter if you have one. Move boxes and or furniture away from access points for plumbing, heating and electrical. It is common that a buyer will perform a radon test and the protocol for a radon test is that the house will be closed up for 12 hours prior to closing as well as 48 hours throughout the test. However, it is a really good idea to “air out” the lowest level of the home prior to the closed house conditions.
Make Your Arrangements – Start making arrangements for moving, storage, packing and cleaning. Consult with your Realtor so that you are sure that you understand the timing of when you need to be out and cleaned. After the inspection it is also a good idea to contact the utility companies to let them know about an upcoming transfer in service. Once the deal is rock solid, put in your change of address request to the postal service.
Inspection Items – Once the inspection has been done and the agreements surrounding the inspection has been made, some work will need to be done. My advice here is to get the work done as soon as possible, don’t cut corners and follow the letter of the agreement to a “t”. The listing agent is there to help you get this work done if you need help.
Clean and Closing – The days surrounding closing will be busy days. You will need to pack, clean and supervise work maybe at two locations. My advice regarding how you leave the home is based on two things. Look at the contract and make sure you are doing the minimum required and then consult the Golden Rule. How would you really like a home to be left for you? When the house is really left in good shape and the buyers feel that they are being treated well, the closing is much easier for all involved.
Costs
Many of the traditional closing costs like appraisal, discount points, inspection fees are handled by the buyer but here are the costs that the seller is responsible for.
Commissions – The commission fee that you agree to with your agent when you sign the listing papers includes fees for both the listing agent and buyers agent.
Title Insurance – Sellers in Colorado customarily pay for the title insurance policy that insures that the property is transferred free and clear. The fees vary on sales price but a typical fee for a $400,000 sale is around $1,450.
Paying off and Settling up – At closing the title company will make sure that all of the financial obligations of the seller regarding the house are settled. This means paying off any loans or liens and prorating the taxes (don’t forget they are paid in arrears) and HOA fees.
This list is based on my experience and is from the sellers perspective for a sale in Colorado. If you hire a good listing agent, many of these items will happen seamlessly and you will be left to focus on getting your stuff packed and ready to go. I have been a Realtor based in Boulder Colorado since 1991 and I love doing those small things that make it easier for you. When you are ready to list, give me a call – Neil Kearney 303-818-4055
by Neil Kearney | Mar 19, 2014 | For Sellers, General Real Estate Advice
In order for a house to sell in today’s market it must have a lot going for it. The competition is intense and a successful seller is one who competes and wins on many different fronts. This article will provide the prospective seller tips, ideas and best practices that will help you sell your home, not just list it.
Curb Appeal
No matter how beautiful your home is on the inside, the first impression will always be made by how the house looks from the street. Many times if the house does not look up-to-snuff on the outside buyers will chose to not go inside. You don’t get a second chance to make a first impression. Here are some tips to make the exterior of your house look its best:
• Cut the grass,
• Trim the hedges.
• Rake the leaves.
• Sweep or shovel the sidewalks.
• If you have rocks around your house make sure it’s not 1 part rock and 2 parts old leaves and sticks.
• Trim and remove any dead flowers, or shrubs. Dead and dormant are not good buyer thoughts as they wait for their Realtor to open the door.
Cut the Clutter
People tend to accumulate things. The mail arrives and we make a pile. Grandma gives you a chair and we squeeze it in. After a few years, what is imperceptible to the owners is a maze of furniture, junk and accessories. You have to cut the clutter! Buyers will love to see Sally’s photo montage from kindergarten to marriage but they will remember Sally’s dress and her husbands blue tux and won’t remember that this is the house with the beautiful wood floors. Remove 7/8ths of the personal photos. I realize it is still your house but buyers have a hard time picturing themselves in “your” house. The rooms will look bare and not “homey” to the seller but believe me, this is how buyers like to see a house. They want to be able to picture their stuff in the house.
Staging
Once you cut the clutter it is time to think about staging each room. The idea is to make each space pleasing to the eye. Work from the perspective of a buyer at the entrance to each room. There should be a balance to the room in terms of weight of the furniture (you don’t want everything piled in one corner) and hardness. By hardness I mean that there should be a balance of hard and soft surfaces. If a room has hardwood flooring there should be a rug to soften it up a bit. If there is a couch, a love seat and a lazy-boy the room is probably too soft and you will need to add a coffee table or replace the lazy-boy with a harder chair (think Windsor). I am not a staging expert but I know people who are and even if you have plenty of your own furniture it is worth a couple of hundred dollars to have an expert come over to put it in the right place. Beware, sometimes the right place for some of your stuff is at the curb. In order to get it right you sometimes have to hear what you don’t want to.
Clean Like You Have Never Cleaned
Buyer’s look at your house differently than you do; they are comparing it to all of the others out there. Not only are they looking for the facts of a house (number of bedrooms, square footage, etc.) they are waiting for an emotional connection with a house. It is hard to get emotionally attached to a house that has flies in the window tracks, a dusty top of the refrigerator (just because you can’t see it doesn’t mean a buyer can’t see it) or a ring around the toilet. It takes near constant vigilance to keep a house in pristine showing condition. The idea is to have the buyer ask if someone actually lives there. Before you put your house on the market it’s time to wash all of the baseboards, clean the silver in the hutch and wash the windows. It’s also time to clean the window wells, dust the light fixtures and shine the sink. You’re going to love your house so much you are going to hate to leave. But then again, it’s hard work selling your house and you will be relieved when that offer gets accepted.
This is not an exhaustive list but it will get you thinking along the right lines. Time and time again I hear from my clients who get the highest and quickest offers that this happens to them each time they sell. Why does this happen? Are these people lucky? No, these people have the knowledge, planning and persistence to put their house in great showing condition. Call me whenever you need an extra pair of eyes to check over the progress.
Below is a link to an article on Houzz.com about getting your home ready to sell that touches on many of the same subjects. Enjoy.
by Neil Kearney | Mar 17, 2014 | Boulder County Housing Trends, Boulder Real Estate, For Buyers, For Sellers
Where Did All The Homes For Sale Go?
It seems that the headlines around the country in stories written about real estate inevitably have two major themes; low inventory and increasing prices. And for anyone who is familiar with economics at all this isn’t a surprise. They should go hand in hand. Given equal demand, a decrease in the supply of any good will result in an increase in the price of that good. The technical term is scarcity. It results not only in a buyer paying more for something but in most cases they also have to demonstrate patience as they wait for delivery. But this equation doesn’t always end up with the same number of transactions taking place. Many of the would-be buyers get discouraged with the process of the purchase and decide to make other arrangements.
In the real estate world “other arrangements” mean that a would-be buyer decides to stay where they are or decide to rent instead of buying a new home. The market isn’t operating efficiently and in the end, the result is fewer sales. We are already seeing all of these variables come into play: lower inventory, higher prices, fewer sales. Here in Boulder County inventory is down approximately 50% from the same point five years ago.
The question that I haven’t seen adequately answered is “where did all the homes for sale go?” I don’t have ‘the’ answer but here are my ideas on the reasons why inventory of homes for sale has steadily decreased both nationwide and locally.
- Financial Distress – When homeowners don’t have enough equity or cash to sell a home they have three choices; pursue a short sale, let the home go into foreclosure or keep making the payments and hang on to the house until their equity rises to a point where their costs to sell are covered. Prices have risen and we are through the worst of the latest foreclosure wave but the most recent recession was deep and home prices did fall to a point where the recent appreciation in many areas is just now making up the accumulated loss. If you bought in 2005 – 2007 chances are that your equity vs. selling cost equation is still about breaking even. Therefore, the mindset for many people is, that I have made it this far and prices seem to be headed in the right direction so if I hold on a bit more it will be even better. Many in financial distress either can’t afford to sell or are waiting for more appreciation.
- Trade-up Conundrum – For homeowners hoping to trade-up to a larger, more expensive, or different house there are two parts of the equation, selling and then buying. Right now the selling part is easy. In the Boulder County area if you have a decent house you can sell your home for a good price in fairly short order. But once you sell you must find a new home, and fast. There are two problems here. 1) Low inventory means that a buyer has very few choices on the buying end and it might take a double move to make it work. 2) Prices are rising and there might not be enough equity (see #1 above) to put into the new home to make the financing and monthly payments work.
- Investment Buyers – When a new listing does come on the market competition between buyers is tight. Exasperating this competition is the proliferance of investors who many times make cash offers. More buyers means that it takes even more new listings to satisfy the demand.
- Rising Prices – I had a prospective seller do some quick math at the kitchen table recently. He knew that prices had risen approximately 9% over the past year on his $500,000 home. This meant that every month his home was going up another $3,750. There are some serious assumptions in this equation, but I don’t doubt that many homeowners do the same math. The answer to this optimistic equation for them is “let’s stay here another year and sell it next year for $50,000 more”. I love the optimism, but this type of thinking doesn’t work in perpetuity. If you follow the housing market, the stock market, the commodity market or any other free market, you know that these forward looking assumptions are easier to make than they are to collect on.
- No Place To Go – “Sure we could sell our house, but where would we go?”. These words are echoing across the area, and alas the nation. Instead of taking the plunge into the market, these would-be sellers/buyers then decide to do nothing, thereby fueling the self-fulfilling spiral of even lower home inventory. In our area this is further exasperated by a lack of rental homes that in a different market take up the slack if the logistics don’t work just perfectly.
by Neil Kearney | Mar 13, 2014 | For Buyers, For Sellers, General Real Estate Advice, Real Estate 101, Uncategorized
Home ownership is a long term relationship. And just like other long term relationships in our lives, it needs constant attention and care.
Let’s imagine a typical situation. A family purchases a new home and uses most of their savings to do so. 
The first few years are spent installing landscaping and furnishing and personalizing the rooms. Everything is new and fresh and all is good with the world. After awhile the house is either just the way you want it or good enough. For a long time the homeowners live happily in the relatively new home, not much to be done but enjoy.
As many years go by the house starts showing some wear and tear and features that were once fresh and hip are now showing up on the “before” side of the “before and after” shows on HGTV. But the house still works so you live in it and fix something when it breaks. Unexpectedly you get a new job out of town and you have to sell your home in a hurry. Your realtor comes in for a meeting and nicely tells you that your home is dated. There’s not enough time or money to upgrade everything at once so the only option is to set a low price and hope for the best. It might take many years to get to this point but I see it time and time again.
The other option is to proactively upgrade your house over time. Yes, there is a honeymoon period on a brand new home where you don’t need to upgrade, but after five or six years you will want to start looking at your property with a discerning eye to determine what project is next. When you take one reasonable project at a time you will be continually improving your investment. Using this strategy you will not only keep your investment on the top end of neighborhood values you will be able to enjoy and take pride in your house as you live in it.
Here are some ideas of yearly projects to consider for your home:
- Replace flooring in a bathroom.
- Upgrade the light fixtures throughout the house (sconces, bathroom light bars, chandeliers)
- Upgrade the countertops in the kitchen
- Replace the furnace and air conditioning
- Re-carpet
- Replace the vanity in a bathroom
- Paint the exterior or interior of the home
- Replace the front concrete walk with something more eye catching
- Replace the appliances (non matching appliances are not a good selling point)
- Re-stain or install a new deck
Take on one project a year and when the time comes to sell you will be ready to maximize the value.
by Neil Kearney | Jan 24, 2014 | For Buyers, For Sellers
I love serving my clients and it’s great to get feedback on how I’m doing. Here are some testimonials I have received from clients I have helped over the last few months.
“We worked with Neil Kearney for the sale of our Gunbarrel home during our relocation out of state and were extremely happy with him! He provided a comprehensive market analysis in a short time so we could price our home competitively. His marketing of the house drove traffic to our home and led to multiple offers in a short time, allowing us to achieve our target price for the sale of the house. Neil’s personal touch and communications while we were out of the state were a great comfort to us during our busy relocation. He took care of all of our worries and kept us informed during every step of the sale of the house. We highly recommend Neil for your agent!”
Jim and Anna McClatchey
“In selling my home I was searching for a realtor that had plenty of experience in pricing and selling properties, is familiar with my neighborhood and surrounding area, has a friendly demeanor. Above those qualities, the single most important thing to me was being confident that my realtor would know how to price a house right without listing it for too less or too much. A friend had recommended Neil Kearney to me, as he had told me that his experience with Neil had surpassed his expectations. I took my friend’s recommendation and Neil Kearney personified each of those qualities I was looking for in a realtor very well. Neil did his homework and helped me price the house right. Three days later I was under contract. From the first handshake to the closing of the sale, Neil made my home selling experience a pleasant one.”
Shaun Tomkins
“Neil Kearney is a great realtor and we highly recommend him! Neil’s knowledge, skill and personal qualities make him a highly successful realtor which made our real estate transaction smooth and enjoyable.
Neil recently helped us purchase a home in Broomfield. He is very knowledgeable about real estate in Boulder County, Longmont, Broomfield and other neighboring areas. We looked at houses in all of these areas and his manner of quiet, patient, competent service made it a smooth process to find the right house. As individuals returning to the Boulder area from out of state, it took us a while to determine the right location at the right price for us. We also were unsure about the type of housing we wanted and thought we wanted to downsize. After looking at smaller properties, we realized that we wanted a home that was similar in size to the one we had most recently. Using his strong knowledge of the communities and how they related to our housing needs and desires, he guided us through the process of finding the house that suits us perfectly. His provision of the on-line search capability was also very helpful. In addition, he has a ready sense of humor and it is fun to work with him.
Neil quickly and efficiently made our offer for the house. He monitored all of the steps of the purchase with ease including recommending potential inspectors and working with the title company. It made it very simple for us. It was a pleasure to work with Neil and if the opportunity arises, we would anticipate using his services in the future.”
Kent and Jan B.
To see more testimonials go here.
by Neil Kearney | Oct 3, 2013 | For Buyers, For Sellers
Why I Love Being a Realtor
My plan coming out of college was to be a real estate agent long enough to put myself through graduate school. I did just that, and after four years of night school I had a freshly minted MBA and no desire to do anything else but to continue on my path in real estate. Sixteen years later (24 in all), I still feel the same way. I’m really lucky to love going to work every day and here is why. I get to work with great people. I get to be creative, I get to work for myself and…
On any given day and within any given day I’m a:
- CEO
- Janitor
- Customer Service Representative
- Accountant
- Web designer
- Graphic Designer
- Counselor
- Chauffeur
- IT troubleshooter
- Confidant
- Furniture Mover
- Problem Solver
- Marketing Specialist
- Blog Writer
- Public Speaker
- Video Editor
- Social Media Director
- Board Member
- Ethics Committee Chairman
- Recruiter
- Negotiator
- Decorator
- Sales Person
- Copy Writer
- Database Specialist
- Photographer
- Advisor
- Office Manager
- Transaction Coordinator
- Sign Installer
- Researcher
- Strategic Planner
- Manager
- Bathroom cleaner
- Babysitter
Each day I am responsible for putting forth a professional effort in an increasingly competitive market. The perks are many and as you can see the variety and scope of what I do are large. I’m apt to work seven days a week for weeks on end, answer work emails at 11 pm, take business calls at 7:30 in the morning. But I also get to arrange my schedule so that I can watch most of my kids games and go on vacation without asking for permission. The responsibility to my clients and my personal code of excellence are my only boss. And I wouldn’t have it any other way!
Selling a home can seem like a daunting process. Especially if you haven’t done it before. There are many facets to the process and enlisting a good Realtor is a very important piece of the puzzle. I help people list their homes all the time and for many it’s their first time. Here is a detailed overview of the process of selling your home.
If you are lucky enough to get multiple offers you will want to read this article. In a normal situation you will have one offer who will submit an offer that isn’t exactly what you are offering. Your agent will then help you formulate a negotiating strategy and prepare a counterproposal to send to the buyers. This process continues until the buyers and sellers reach an agreement or it doesn’t come together and you wait for a new buyer.
