T H E CO M PL ETE GU IDE TO
Selling Your Home
PRESENTED BY
Tonna Gruber
YOUR TRUSTED REAL ESTATE PROFESSIONAL
Meet Tonna “WHEN WE WORK TOGETHER, WE CAN MAKE ANYTHING HAPPEN! LET US GUIDE YOU HOME.”
Tonna is a Master Certified Real Estate Negotiation Expert, Elite Guild Certified Luxury Home Marketing Expert, and Global Luxury Real Estate Expert. Today, Tonna’s clients applaud their experience Navigating Purchases and Sales with her guidance. She helps sellers and buyers downtown, on the Beaches, and with Lakewood Ranch lifestyles backed by an impressive catalogue of Designations and Awards. Whether you are Selling or Buying a home, she’s excited to learn what’s important to you and make that important to her.
Tonna Gruber Real Estate Professional Institute Luxury Home Marketing Specialist
9 41. 2 32 . 8 9 5 0
tonna@tonna–realtor.com tonna-realtor.com Follow me on:
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Proven Expertise, Trusted Results With hundreds of Local Sales valued from $40,000 to $6,200,000, adding to those sold in other markets, Tonna is a trusted Guild Elite Member of the Institute for Luxury Home Marketing in the Lakewood Ranch, Sarasota, and Manatee County markets. Tonna Gruber is also a Master Certified Negotiation Expert. As a Trusted Elite Guild Member of the Institute For Luxury Home Marketing, Tonna will create a unique marketing plan that will successfully PROMOTE and PRESENT your property listing TO THE MARKET, producing quality candidates to purchase your home. She will negotiate on your behalf to position you for the best possible outcome at closing. She has reached the acclaimed Top 2% Global level and Top 100 Florida Realtors, along with recognition including Global Luxury President’s Elite, President’s Premier, President’s Circle, President’s Sterling, Top Agent on Zillow, Best of Zillow, and Digital Marketing Expert. As a Elite Guild Member of the Institute for Luxury Home Marketing, the highest Guild designation with the Institute, and a designated RRC Certified Residential Specialist (CRS), one of the highest designations a residential real estate agent can achieve, you can trust Tonna to guide to your Real Estate Success Story. When experience, strategy, and results matter, having the right representation makes all the difference. Whether you’re considering buying, selling, or simply exploring your options, Tonna is here to guide you every step of the way.
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Client Testimonials Buying or selling a home is the largest transaction most of us will ever make in our personal lives, and it can be a very complex, emotional, and time-consuming experience. I am dedicated to making certain that YOU come away completely satisfied. Tonna was our real estate professional in finding a condo in Sarasota. She was very helpful through the entire process. She not only answered all of our questions during the closing process but also provided us with names of several service providers in the area. Tonna demonstrated excellent customer service skills! - R P O Y N E R
Top-notch experience. She overpromised and overdelivered. Competing sellers’ agents said top dollar was X, and Tonna got me X + $100K. Happy I chose Tonna—the consummate professional. Thanks, Tonna!
- P S C H U LT Z
Audra and I think that you should change your slogan to 'I'll Find You the Perfect House at the Perfect Price!' - J I M & A U D R A D A N K O , B R A N C H M A N A G E R
AND DIRECTOR UBS FINANCIAL
We recently had the pleasure of working with Tonna on the purchase of our new home. She’s professional, reliable, and honest. Tonna went above and beyond in facilitating our purchase. Her assistance did not end once we closed. Instead, she continued to respond to our questions and help whenever possible. I can’t recommend her enough.
-B CARABALLO
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Contents 07 Introduction 08 10 Steps To Selling Your Home 10 Define Your Goals 12 Select A Real Estate Professional 15 Price Your Property Prepare Your Home
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18 Market Your Home Show Your Home 20 Ask For Feedback 22 Negotiate An Offer 25 Remove Contingencies 26 Close the Deal 30 Moving Out Checklist 31 Common Home Seller Mistakes 32 35 Frequently Asked Questions A Home Seller’s Glossary 36 6
Introduction Welcome To Selling A Home The selling process is a combination of excitement, stress, and new experiences, whether you are a seasoned or first-time seller, or this is your primary home, vacation, or investment property. Selling your home is rarely a decision people make on a regular basis. There are several moving parts and points to consider, which is why it is important to have a trusted professional consulting with you at each step of the way. This Seller’s Guide is intended to give you a tangible resource that will help you define your goals and direct you through the process so that you can make informed decisions.
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10 Steps To Selling Your Home Seller Start Here
DEFINE YOUR GOALS
SELECT A REALTOR ®
PRICE YOUR PROPERTY
PREPARE YOUR HOME
MARKET YOUR HOME
CLOSE THE DEAL
REMOVE CONTINGENCIES
NEGOTIATE AN OFFER
ASK FOR FEEDBACK
SHOW YOUR HOME
Turn Over The Home!
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1 Define Your Goals Determine Why You Are Selling The Home Before you start to think about all the things that need to be done, take some time to figure out why you are selling and clearly define your goals. Everyone has different reasons; as you start to go through this process of discovery, focus on what is important to you and your family, as this will help streamline the process.
I M P O R TA N T Q U E S T I O N S T O A SK YOURSELF:
I M P O R TA N T C O N S I D E R AT I O N S : •
Do you understand the associated costs?
•
Is there a timeline?
•
Is this the right time for you to sell?
•
Are you relocating?
•
What are the present market conditions
•
Are you looking for a bigger home or to
and the implications for your sale?
downsize? •
•
Looking for a different neighborhood?
Does your home’s equity give you an advantage?
More city, more suburban?
•
What are the current mortgage interest
•
Looking for different amenities?
rate options compared to your rate and
•
Are financial considerations relevant?
commitment? •
Consider getting your property inspected before placing it on the market. This will help you to know if there are any issues with the home beforehand.
Recognize that every market is different, and the selling process can be a sprint or a marathon — be prepared for both.
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2 Select A Real Estate Professional Tonna’s Commitment and Dedication It is important to work with a real estate professional who is not only committed to working with you but who is also dedicated to getting your home sold in the shortest time for the most amount of money. Your real estate professional should guide you through the entire process – consider their knowledge, experience, and expertise. Check their track record of working with sellers – from listing a home, negotiating the price, helping with financial solutions, and understanding the local market, its property types, and property values to their knowledge of the transaction process.
RESPONSIBILITIES
PR EPA R IN G A ND S H OWIN G T HE HOME
I will educate you about the listing agency and professional responsibilities, including complete disclosure, loyalty, confidentiality, compliance, and accountability.
I will help you prepare your home to match buyer’s expectations, arrange the right showings and recommending relevant experts if needed.
U N D E R S TA N D I N G YO U R REQUIREMENTS
C O N S U LTAT I O N A N D N E G O T I AT I O N I will provide consultation when offers come in to purchase your home. I will then negotiate the best possible price and terms for you, find homerelated service providers, and take care of all the documentation details.
I will take the time to understand your priorities and your selling requirements (price, timeline, relocation) – even if it changes.
MARKE TING YOUR HOME CLOSING
I will provide a sophisticated marketing strategy that ensures the maximum exposure of your home to the right buyers. I will keep you updated with current market trends, neighborhood fluctuations, and new sales and listings. Selling is all about having the right knowledge at your fingertips.
I promise to keep you fully informed about all activities that lead to the transaction closing.
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Signing A Listing Agreement A listing agreement is a contract between you and your real estate professional stating that they have the right to list, advertise, and handle the sale of your house. It’s important to understand the terms of this agreement because you will be bound to them, forming an obligation of time and commitment of responsibilities.
K E Y FAC TOR S Commission: The amount you will pay your agent. Exclusive Right To Sell: Gives your agent the right to sell your property. Duration: The amount of time the listing agreement is in effect. Protection Clause: Protects the agent or broker after the date, preventing you from avoiding payment to your agent should you find a buyer while under contract. Duties: The agreement lays out the activities the agent is authorized to conduct on your behalf. Representations: The agreement may also require you to verify certain legalities and facts about your home. Dispute Resolution: Specifies how you will handle disputes that cannot be worked out informally.
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3 Price Your Property The Fair Market Value Is Influenced By: •
Location
•
Condition
•
Buyer demand
•
Price of properties on the market
•
Recent sales
•
Availability for financing
The Hidden Influence Always make sure to highlight the positives and negatives of the home to your Real Estate Professional, as these nuances can be turned into an advantage if known in advance. Remember, no one knows your home and its location like you do.
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4 Prepare Your Home Every seller wants to sell their home quickly, and every buyer wants to believe that the home they are looking at is the “right one.” As we prepare the home for sale, here are a few things to keep in mind during this preparation stage. Begin this process with one simple idea: “This is not my home, it is a house.” For this Seller’s Guide, we have broken down this process into three levels. As always, discuss with your real estate professional what level is required to get the most value for your home.
LEVEL 1: THE BASICS •
De-Clutter. If it is not needed, remove it and put it in storage. Pack up the knick-knacks. Keep the counters clean.
•
Depersonalize. Remove photographs and memorabilia. Remember, this is going to be a fresh start for someone else, and you want them to be able to visualize making their own memories here.
•
Deep Cleaning. Clean the home inside and out. Clean inside the cupboards. Clean the grout in your bathroom(s). Remove spider webs, dust bunnies, wash the windows, dust the furniture, clean the carpets, vacuum, etc. Don’t forget about the outside!
LE VEL 2 : BE YOND THE BA SIC S •
Painting Walls. Think neutral colors. If you have off-beat colors, bring them back to a more neutral tone – it can help the buyer visualize a clean slate.
•
Change Room Decorations and Themes. Got a jungle-themed room or an all-pink or blue kid’s room? For now, redecorate, repaint, and turn it into a study. Think simple.
•
Minor Repairs. These repairs are not supposed to break the bank. If it’s a cheap and easy fix, fix it. Repair squeaky doors, holes in walls, leaking faucets, broken cabinet doors, and anything else that could deter or distract buyers. 16
L E V E L 3 : WAY B E YO N D THE BASICS •
Major Renovations. Haven’t replaced that roof in 20+ years? Need to replace the carpeting? Add better flooring? Remodel the bathroom? Though more expensive, these repairs will ultimately add value to your home and are projects worth considering.
•
Updating Landscaping. Curb appeal is an important aspect influencing your home’s first impression. Attractive, well-maintained landscaping or potted plant accents at your entry increase the fresh look and best first impression of your home.
•
Other Repairs. With larger repairs, it is important to understand that any work you put into the home should add value to the final sale price – if not, it’s not worth it.
HELPFUL TIPS: •
Think of this process as a head start to packing.
•
Even though some repairs may seem minor, they can become a major factor in determining whether a buyer will actually buy.
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Pay particular attention to rooms that smell; odors are a complete turn-off.
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Do not forget about the outside; this is your potential buyers’ first impression.
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Scrutinize the home. If you were a buyer, would you want to buy this home? You have lived here, and you know all the pros and cons. Highlight the pros and help eliminate the cons. 17
5 Market Your Home Each home has its own unique and individual story to tell, and the marketing should reflect that. We will sit down and discuss the marketing plan necessary to successfully sell the home. A comprehensive and customized marketing strategy will complement the time, money, and energy that you have invested in your home.
PHOTOGR APHY
D I G I TA L E X P O S U R E
A key element to all marketing is the right
Your online footprint gives you access to
photography. Your home has five seconds
social media and 24/7 web exposure. It is
to impress and grab someone’s attention.
the quickest way to get your home exposed
Skilled professionals know how to use
locally, nationally, and globally.
composition, color, and lighting to enhance the subject. The right photography can give
NET WORKING & REFERR AL S
you an extra 20 seconds, and a great photo
Real estate professionals can utilize their
can evoke a potential buyer’s emotion. This
network and referral systems to create
is where they fall in love first.
additional sources of potential buyers. Networking with other local, national, and
PRINT MEDIA
international agents, as well as relocation
Tangible resources draw buyers to the
experts,
home, including yard signs, directional
Local advertising, word of mouth, and
signage, postcards, property brochures,
open houses create referrals from local
and more.
homeowners, who are often the biggest
creates
a
large
database.
advocates for having their friends and family move into their neighborhood.
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6 Show Your Home Sellers place a lot of pressure on themselves when showing potential buyers their property. Here are a few things to keep in mind to generate the best first impression and increase your chances of receiving those all-important offers.
LE T YOUR AGENT HANDLE IT
comfortable. You want buyers to feel comfortable
A potential buyer is less likely to voice any
and not rush the viewing process because they
concerns in front of the current owner. Give them
are too hot or too cold.
the space to explore and scrutinize. Your real estate professional is your ally; let them handle
ANIMAL CARE
any concerns a buyer might have.
A pet-friendly home is a great selling point. However, if potential buyers are not animal-friendly,
BE FLEXIBLE
you do not want your pet(s) to be a distraction.
Many home buyers are on a tight schedule, just
If you can, remove them from the home during
like the rest of us. Time is tough to come by, so be
showings or place them in a contained space.
flexible, especially if you are living in the home.
L I G H T T H E WAY QUICK CLEAN
The home should feel open, bright, and welcoming.
During the selling process, it is imperative to
Turn on the lights and open the curtains; this will
always keep the home clean. Wipe down counters,
allow the buyers to see the true value of the home.
vacuum daily, and make sure all clutter is cleaned in use, keep them in a closet or drawer.
C O M M U N I C AT E W I T H YO U R R E A L E S TAT E P R O F E S S I O N A L
C L I M AT E C O N T R O L
you want to be featured and recognized during
Ensure the inside temperature of the home is
the viewings, make sure to communicate those
up. TIP: Keep a box for personal items; when not
If there are special aspects to the home that
clearly to your REALTOR®. 20
The “Show Home” Ready Checklist YO U H AV E 1 0 M I N U T E S : Make the beds Toss all personal items of clutter in a basket or box and put it in the back of your car for the time being Empty all the garbage Make sure the towels in the bathroom are clean, straightened, and match Put down the lid to the toilet(s) Wipe down all countertops and sinks Turn on all the lights in the house Ensure the house temperature is comfortable Make sure the home smells good
YO U H AV E 1 H O U R : Do everything on the ten-minute list, PLUS: Vacuum all carpeted areas Sweep all surfaces Clean all mirrors Clean the toilets Clear and wipe down kitchen counters Clean and put away laundry Sweep the front entryway and shake out the doormat
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7 Ask For Feedback It is never easy hearing negative remarks about your home, but knowing is half the battle, and the information provided could potentially be helpful in the next showing. It will also show the buyer that you value their opinion. Following an open house or buyer showing, talk with your real estate professional to measure your home’s reception and consider recommendations.
REVIEW: •
Are you getting a steady stream of people to open houses and brokers’ opens? What is the typical number for comparable homes?
•
Find out what feedback was given to your real estate professional. Use this feedback to enhance your home’s presentation for future showings. Your real estate professional may have some ideas on how to spruce up your home’s factor.
•
Could your home use an incentive to entice more buyers to come for a look?
•
What other marketing strategies does your real estate professional suggest to attract more buyers?
•
It is important to keep things in perspective following an open house or a buyer showing. Remember that home shoppers need time to process what they have seen and maybe time to look around at other homes before making such a big decision.
•
Be patient. Be open to feedback and continue to maintain an open dialogue with your real estate professional.
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8 Negotiate An Offer Perhaps the most complex moment of the sales process comes when you get an offer on the home. There are many components to an offer, and your real estate professional will explain the entire process so that you are comfortable with all the steps involved. An offer can be drafted with or without conditions; an offer without conditions is known as a firm or contingent-free offer, an offer with conditions is known as a conditional offer and protects one party with the placement of certain conditions on the purchase. You can reject or accept the initial offer. If you agree to some points of the offer but not others, then you will submit a counter offer. The counter offer may differ from the original offer with respect to price, conditions, closing date, or any other items. Offers can be countered back and forth between the parties until one of you accepts or rejects it, ending the negotiations altogether.
COUNTER OFFERS Counter offers are generated by the seller after a buyer has submitted an offer to purchase. Typically, counter offers will state that the seller has accepted the buyer’s offer, subject to the particulars such as: • Higher price (if buyer’s offer doesn’t match the sale price) • Increase the amount of the deposit • Refusal to pay for certain reports or fees • Altering closing and/or possession dates • Modifying the contingency time frames •
Excluding personal property
One party can simply accept the counter and deliver it back to the other party or counter with another offer. This can go back and forth several times. Just remember, time is always of the essence. Counter offers contain expirations, just like purchase offers, which means you can accept another offer while the buyer decides if they will sign the counter offer. 24
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9 Remove Contingencies Once both parties accept the sales contract and its contingencies, they will start to work toward removing these conditions and set a specific time frame to do so (varies by state). Your real estate professional will advise you on what contingencies you can remove, based on the results, once the appropriate due diligence has been completed. Ideally, both parties should have been able to negotiate a reasonable time to remove these conditions. It is important to understand the options available to you should one of the conditions you are responsible for not be removable prior to the contract date. This does not automatically mean that the ‘deal is dead’ – having a real estate professional who is a good negotiator and will work with the buyer’s agent to find a solution is key. Equally, conditions that the buyer needs to address can also be provided with extensions – this is the seller’s choice. An experienced real estate professional will advise you on the right course of action based on their knowledge and experience. Once both parties are satisfied and wish to commit to the purchase and sale of your home, a contingency removal document will be prepared for both parties to sign.
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10 Close The Deal After all the contingencies have been removed, it becomes the responsibility of the legal and financial institutions to prepare all the necessary paperwork. Should there be any issues, your real estate professional will contact you directly. Contact your Escrow Company and provide them with instructions on how you would like the funds deposited from the sale. At closing, you will sign all of your legal documents, including paperwork related to the transfer of ownership. There is usually a representative from the Escrow Company to facilitate the exchange. When closing is finished, you should not only be prepared to hand over the keys but also any copies of documentation that relates to the property and its amenities. You will receive a copy of the documentation you signed, together with a statement of costs. At the end of closing, the deed will be taken and recorded at the county clerk’s office.
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Contract To Close Start Contract MORTGAGE COMPANY
TITLE COMPANY
LOAN APPLICATION
CONTRACT IS RECEIPTED
CREDIT HISTORY IS RESEARCHED
REPRESENTATION AGREEMENT IS SIGNED WITH YOUR REAL ESTATE ATTORNEY
APPRAISAL
LOAN SUBMITTED FOR APPROVAL
TITLE DEPT. RECEIVES ORDER
ESCROW TEAM COORDINATES TRANSACTION
EXAMINER RESEARCHES PROPERTY
BUYER IS APPROVED
CLOSING SCHEDULED
COMMITMENT FOR TITLE INSURANCE IS ISSUED
MORTGAGE COMPANY GIVES INSTRUCTIONS TO TITLE COMPANY
DOCUMENT PREPARATION
Finish Closing & Funding 30
Moving Out Checklist Notify current utility companies – advise of new address, shut-off, and connection dates: Electric Water/Sewage Trash Gas Telephone Cell Phone Cable/Satellite Internet Insurance – transfer homeowner’s insurance to new home File change of address with postal service – start and end dates Notify DMV of new address – driver’s license and registration Notify your bank and credit card companies of your move and that you will be making purchases in a new area Update voter registration Updated medical records – notify doctors, dentists, pharmacists Update employer records Notify children’s school and activities of move Cancel/Update gym memberships and local memberships if not staying in area Return library books or other things you have borrowed Hire housekeeping and landscaping services to ensure the home is clean before the new buyers arrive Send out “Just Moved” cards to notify family and friends of your new address
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Common Home Seller Mistakes NOT HIRING A PROFESSIONAL
NOT DECLUT TERING Clutter eats equity and kills
OVERLOOKING EX TR A E X P E N S E S AT C L O S I N G
You need the expertise of a real
deals. One of the least expensive
Request a list of fees and expenses
estate professional. Sellers who try
improvements you can make to
before closing. Review these with
to sell it themselves end up taking
your home is to declutter and
your real estate professional and
longer to sell and sell for far less
create a sense of spaciousness
discuss these ahead of time.
than those who work with an agent.
throughout the home.
NOT PRICING YOUR H O M E C O R R E C T LY
G E T T I N G I N T H E WAY O F N E G O T I AT I N G
NOT HIRING A PROFESSIONAL PHOTOGR APHER
Overpricing or underpricing your
Too many sellers take negotiating
More than 97% of all buyers start
home can be a costly mistake. It
personally and lose out on creating
their home search online; make
is critical to know the market and
a win-win deal. Remember, this is a
sure you and your real estate
review comparables to know at
business transaction.
professional make your home
what price your home needs to be set to sell.
NEGLEC TING NECESSARY R EPA IR S It will always cost you less out of pocket to fix things ahead of time, rather than having buyers request that you fix it through their vendor of choice, which can get costly.
dazzle with great photographs.
FA ILIN G TO COMPLE T E A FULL SET OF DISCLOSURES BEFORE CLOSING Be upfront about any of your
NOT TRUSTING AND C O M M U N I C AT I N G W I T H YO U R R E A L E S TAT E PROFESSIONAL
home’s issues; this will save you
They are your biggest ally. Trust
money and time, especially if the
them to be the expert and guide
buyers discover the
you through this process. Be open
problem themselves.
and honest, and allow them to do their job; they are here for you.
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Frequently Asked Questions W H EN I S T H E B E S T T I M E TO S EL L? When you are ready. Every real estate market is different; therefore, the best time to sell a home will be different from community to community. Don’t wait for perfect conditions to sell – they don’t exist.
H O W D O I C H O O S E A R E A L E S TAT E P R O F E S S I O N A L? Think of the process as equivalent to giving a job interview. Do they know your local market? Price points? Types of homes? What is their track record for sales in your community? Can they provide testimonials? Ask for references!
HOW LONG DOES THE LISTING AGREEMENT L AST ? Local real estate markets are 90 days or more; a one-year listing agreement is necessary.
H O W M U C H C O M M I S S I O N S H O U L D I PAY ? Commission is negotiable, period. The phrase, “You get what you pay for,” is true when it comes to real estate too. Choosing a real estate professional based solely on the fact they offer the lowest commission amount is a mistake frequently made by home sellers.
H O W C A N I A S S U R E M Y A G E N T W I L L N E G O T I AT E T H E B E S T P O S I T I O N FOR ME? Hire a Master Certified Real Estate Negotiation Expert who has been professionally trained to negotiate on your behalf for your best outcome in the current market.
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Home Sellers Glossary When selling a home, it’s important to understand some of the key concepts and terms. Throughout the selling process, your real estate professional will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know: Abstract of Title – A complete historical summary of
Closing – The final steps in the transfer of property
Counter Offer – An offer, made in response to a
the public records relating to the legal ownership of a
ownership. On the closing date, as specified by the
previous offer, that rejects all or part of it, while
particular property from the time of the first transfer
sales agreement, the buyer inspects and signs all
enabling negotiations to continue towards a mutually-
to the present.
the documents relating to the transaction and the
acceptable sales contract.
final disbursements are paid. Also referred to as the Adjustable Rate Mortgage (ARM) – Also known as a
Conventional Mortgage – One that is not insured or
Settlement.
variable-rate loan, an ARM is one in which the interest rate changes over time.
guaranteed by the federal government. Closing Costs – The costs to complete a real estate transaction in addition to the price of the home, may
Debt-to-Income Ratio – A ratio that measures
Agreement of Sale – Also known as contract of
include: points, taxes, title insurance, appraisal fees,
total debt burden. It is calculated by dividing gross
purchase, purchase agreement, or sales agreement
and legal fees.
monthly debt repayments, including mortgages, by
according to location or jurisdiction. A contract in
gross monthly income.
which a seller and buyer agree to transact under
Closing Date – This is usually the date that the legal
certain terms, spelled out in writing and signed by
ownership of the property transfers from the seller to
Deposit – The amount of money provided from the
both parties.
the buyer.
buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The
Amortization – The process of reducing the principal
Conditions or Subjects – Items that are usually put
deposit is applied against the purchase price of the
debt through a schedule of fixed payments at regular
in place to protect a party’s interests upon selling or
home once the sale has closed. Your agent can assist
intervals of time, with an interest rate specified in a
buying the property and refer to things that must
you in proposing a certain and appropriate amount
loan document.
occur or be in place before the sale closes. Some
for the deposit.
of these conditions could be “subject to financing Appraisal – An appraiser’s estimate of the market
approval,” “subject to the buyer’s house selling,”
Disclosures – Disclosure statements, which can come
value of a property based on local market data and
“subject to seller finding suitable housing,” etc.
in a variety of forms, are the buyer’s opportunity to
the recent sale prices of similar properties.
learn as much as they can about the property. Seller Contingency – A clause in the purchase contract
disclosures are based on seller’s knowledge of issues.
Assessed Value – The value placed on a home by
that describes certain conditions that must be met
They serve to inform buyers; they can protect the
municipal assessors for determining property taxes.
and agreed upon by both buyer and seller before the
sellers from future legal action. It is the seller’s chance
contract is binding.
to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property. 36
Down Payment – The money paid by the buyer to the
Inclusions and Exclusions – Specifications within the
negotiations. When signed by all parties involved
lender at the time of the closing. The amount is the
offer that detail the items to be included or excluded
in the sale, the Purchase Offer becomes a legally-
difference between the sales price and the mortgage
from the purchase of the property. Typical inclusions
binding sales agreement.*
loan. Requirements vary by loan type. Down
are appliances, window coverings, fixtures, and
payments less than 20% usually require mortgage
decorative pieces.
Purchase Price – The amount the buyer is offering
insurance.
to pay for the property, dependent upon market Lien – A claim or charge on property for payment of
conditions and may differ from the seller’s current
Earnest Money – A deposit given by the buyer to bind
a debt. With a mortgage, the lender has the right to
asking price. There is no “normal” amount or
a purchase offer and which is held in escrow. If the
take the Title to your property if you don’t make the
percentage that a price will differ from its asking price,
property sale is closed, the deposit is applied to the
mortgage payments.
as the final price will be determined by many factors,
purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited.
including the seller’s motivation and how close the Market Value – The amount a buyer would pay a
asking price is to actual “market value.”
seller for a home. An appraised value is an estimate of Equity – The value of the property, less the loan
Terms – An offer includes certain “terms,” which
the current fair market value.
balance and any outstanding liens or other debts against the property.
specify the total price offered and how the financing Mortgage Insurance – Purchased by the buyer to
will be arranged, such as if you will arrange your own
protect the lender in the event of default (typically
with a financial institution or mortgage broker or if you
Easements – Legal right of access to use a property
for loans with less than 20% down). Available through
wish to take over the seller’s mortgage (assumability).
by individuals or groups for specific purposes.
a government agency like the Federal Housing
Easements may affect property values and are
Administration (FHA) or through private mortgage
Title – The right to, and the ownership of, property. A
sometimes part of the deed.
insurers (PMI).
Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal
Escrow – Funds held by a neutral third party (the
Possession
escrow agent) until conditions of a contract are met
buyer takes possession as specified in contract of
and Adjustment Dates
and the funds can be paid out. Escrow accounts are
purchase and adjustments are made for prepaid
Title Insurance – Insurance policy that guarantees
also used by loan services to pay property taxes and
taxes, maintenance fees, etc. They are usually the
the accuracy of the title search and protects lenders
homeowner’s insurance.
same date.
and homeowners against legal problems with the
– When the
defects.
title. Fixed-Rate Mortgage – A type of mortgage loan in
Possession
which the interest rate does not change during the
sales agreement, that the buyer can move into the
Date – The date, as specified by the Truth-In-Lending Act (TILA) – Federal law that
entire term of the loan.
property. Generally, it occurs within a couple days of
requires disclosure of a Truth-In-Lending statement
the Closing Date.
for consumer loans. The statement includes a
Home Inspection – Professional inspection of a
summary of the total cost of credit.
home, paid for by the buyer, to evaluate the quality
Pre-Approval Letter – A letter from a mortgage
and safety of its plumbing, heating, wiring, appliances,
lender, indicating that a buyer qualifies for a mortgage
Title Search – A historical review of all legal documents
roof, foundation, etc.
of a specific amount. It also shows a home seller that
relating to ownership of a property to determine
you’re a serious buyer.
if there have been any flaws in prior transfers of
Home Warranty - Service contract that covers the
ownership or if there are any claims or encumbrances
repair or replacement of home system components
Principal – The amount of money borrowed from a
and appliances that break down.
lender to buy a home or the amount of the loan that
Homeowner’s Insurance – A policy that protects you
on the title to the property.
has not yet been repaid. Does not include the interest
* The Purchase Offer and contract procedures vary by
paid to borrow.
region.
and the lender from natural disasters and liabilities, such as a visitor injury or damage to your personal
Purchase Contract – A detailed written document
property.
which makes an offer to purchase a property, and may be amended several times in the process of 37
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Thank You I would like to thank you for giving me the opportunity to represent you. My goal and commitment are to make the home selling process as seamless as possible. Regardless of your real estate needs, know that I am always here to assist you because I am not just providing a service; I am building a relationship.
Tonna Gruber Real Estate Professional Institute Luxury Home Marketing Specialist
9 41. 2 32 . 8 9 5 0
tonna@tonna–realtor.com tonna-realtor.com Follow me on:
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