Where to start?

Before we put your house on the market, we’ll need to talk through what your goals are for selling. For instance, some sellers want to sell a property as quickly as possible or some want to move without making many repairs. Ultimately, it’s my job to make your goals happen in a way that’s as easy as possible in whatever market we’re in.  

In order to determine what your house is worth, I’ll pull the MLS and tax documents and perform a comparative market analysis, or CMA. That’s basically just assessing what things in your neighborhood are selling for, so I can give you a realistic expectation of what your house will be worth on the open market. The CMA uses comparative properties that have recently sold, square footage, condition of the home, special features, and more to determine a general list price. 

There are some tried and true tactics that help buyers see the property in the best light, like professional photos and including a floorplan. Other times, drone photos and video walkthroughs are great options. Most of the time I market homes online, but occasionally fliers still help too. If you decide to list your home, we will have a lengthy discussion about what marketing tactics are available to you and which would best help sell your home. 

 Major and latent defects like structural issues or lead paint can kill a deal once you’re under contract. Smaller defects like water spots, peeling paint, or visual defects can make a buyer stop and question how much they’ll have to spend on other potential problems. It’s up to you as a seller whether you want to invest in the repairs. Some repairs will make you more money on your sale, and others won’t. And you’ll always have the option of selling ‘as-is,’ which means that you won’t make any repairs if someone chooses to buy your house. But as-is sales usually make less money than fully repaired, updated homes.  

Real estate photos are magic. Their main goal is to show your house in the best light. We’ll need to make sure it’s mowed, clean, de-cluttered, etc. before photos are taken in order to best represent your home. There are conflicting schools of thought about ‘depersonalizing’ or removing personal photos and those kinds of effects. In my experience, personal photos won’t turn buyers away, but clutter and trash will. Cleaning your home thoroughly for photos gives buyers the chance to see themselves in it instead of focusing on any debris. 

One of the first steps in listing a home is to let a photographer come perform their magic. After I have the photos, I can put a sign in the yard and start the selling process. I’ll list it on the MLS, which auto-aggregates to syndication sites like Zillow, Trulia, Realtor.com, Redfin, etc. There are something like 4,000 Realtors in North Alabama – every single one of them will have access to the listing and it will automatically send an email to any preloaded searches that their clients’ have. From there, we’ll start scheduling showings. I’ll put a Bluetooth key box at your house and Realtors (including me) will bring buyers by to see it. 

Absolutely!

It’s important to note that a lease doesn’t terminate when a home is sold. That means you may sometimes sell your property with a tenant and lease in place. That’s great news for investors who are looking to rent the home as an income property but may be less appealing to someone looking to buy the home as a private residence. Selling a house with a tenant and lease in place can be difficult to navigate. Reach out to me for more information.

After we’ve listed the property, one or more buyers will fall in love with it and we’ll start getting offers. Sometimes buyers will send an offer in through their own Realtor, and sometimes they won’t have a Realtor so I will help them submit their offer to you. Statistically we should get an offer for every ten people that see the home; if we’re not getting offers, we need to look at what needs to change to start getting them. When we get an offer (or offers) we’ll meet physically or virtually to look at it and decide what to do. We can accept, reject, or counter an offer. Negotiation, in my opinion, is about finding a win for all parties. Just remember: it’s a conversation. As your agent, it’s my legal obligation to bring any/all offers that I get. If we get a bad offer, one that’s just plain junk, then I’ll bring it to you, we’ll talk about it, and just move on with our lives. 

From my point of view your next real estate job is to focus on moving or being ready to move the day before closing. Right now, what's happening behind the scenes:

Title abstractors are pulling every deed that has existed for your home over the last sixty years.

Title just means the chain of deeds, or the succession of deeds.

What they really want to know: is there anyone that can claim part of the proceeds of the sale? I'd typically think the house is a year old - so it should be easy. One and done. But this includes the deeds on the land before your house was built.

And there is something called a 'mechanic's lien" which basically means that a contractor did work on your house and wasn't paid - so they filed for part of the proceeds. Remember, we're going back sixty years. so even though you likely didn't do this they're looking at everyone who owned the home/land previously too.

Let's say someone does pop up and claim ownership of some or all of your home. That's why we have title insurance! Title insurance will pay any damages (money) that someone wants from the sale of your house.

This process is typically invisible and the only reason we'd know anything about it is if someone popped up. In this situation, no news is good news.

I'm sorry again for the stress of waiting. Doing nothing can be harder than real work sometimes.

I'm here for you guys. I'll let you know as soon as I hear more!

One of the first steps in your home buying journey should be either prequalification with a lender or gathering finances if you intend to pay cash. A lender will be able to provide you an estimated monthly payment based on current interest rates, your credit, and other important factors. Beyond that, a good rule of thumb is that your mortgage shouldn’t be more than about 1/3 of your monthly income. 

When it comes to what kind of loan is best for you, first look at what kind of loans you’ll qualify for. For instance, VA loans are available to eligible veterans who have available home loan entitlement. USDA loans are available to qualified buyers who are purchasing a property inside of a rural area as defined by the USDA (United States Department of Agriculture). 

Once you know what kinds of loan you may be eligible for, a loan officer will walk you through what your payments could look like depending on how much money you put down as a down payment, how much money you spend on points, etc.

It should become clear in that process which loan type will benefit you most.

A down payment is the money that a buyer puts “down” to secure a loan. Sometimes it will be referred to as your ‘skin in the game’ to show a lender you’re serious about making your payments. It can be as little as 0% of the loan depending on the loan type. There are certain benefits to putting less or more depending on your goals. Less down upfront means you’ll have more money to make repairs or spend as you wish. Putting down more can secure you better interest rates, and can remove mortgage insurance – which will also lower your monthly mortgage bill. 

In a loan, “points” are an artificial buy down of the interest rate. It’s an upfront cost paid at closing that is usually 1% of the loan value. You’ll pay money upfront to pay less over time. It’s generally considered to be worth it if you plan to live in your house for a long time, but its value decreases if you live in your house for only a short period of time. 

Alabama is a caveat emptor or “buyer beware” state. That means in Alabama a buyer has an obligation to inspect whatever they purchase before the sale. In Alabama, if you walk out of the grocery store with a broken egg, then you are the proud owner of a broken egg. Buyers have a legal right to perform inspections when purchasing property, even if it is only for informational purposes. Because of that, I always advise that you perform inspections when purchasing property. You just don’t know what you don’t know. 

If you choose not to perform an inspection when purchasing property in Alabama, then you accept the property in “as-is” condition. That means that you accept it in exactly the condition it is without any repairs. At closing, once you sign on the dotted line and accept the property, you have accepted the condition of the property. One caveat to that is that you can have legal recourse if the seller is found to have committed fraud by purposely hiding a flaw in the home that affects the safety of those who live there.

A seller’s motivation will determine how much they’ll negotiate on the price of a home. While some sellers will hold steadfast and won’t alter the price, others will be very open to negotiation. The only way to know what the seller will accept is to make an offer and gauge the response. Some of the determining factors on what a seller will accept can be how long the property has been on the market, how much the seller owes, how many buyers are in the market, and recent sales of comparative properties. A Realtor is required by law to present any written offer that is made on a house they have listed. 

There are two very important elements to keep in mind when you consider your timeline for a home purchase. The first thing: what are your personal timing needs? Do you need to move before someone in your family starts school or a new job? Those kinds of personal needs often drive the decision to move, and most buyers know their personal timeline.

The second thing to consider is the market. The real estate market changes all the time. Small changes in interest rates, influxes of jobs, and other economic factors can change buyer behavior. That means you might be competing with more buyers for the home of your dreams, which can add precious time when finding a home. Or there might be a surplus of homes, which can lead to a buyers’ market where you’ll have lots of options.

Then, we will find properties that you like and go see them. This part is completely on your timeline. I’ll be as responsive as possible to make sure we’re moving at the pace you want. Once we find a home that you like enough to make an offer, we’ll establish your priorities and what kind of offer you’d like to make and I’ll write the offer.

Once you’ve considered those, it leads us to our next important question:

Closing refers to the time after an accepted offer, but before the actual act of signing the papers. In other states, this is sometimes called escrow.

The offer will establish a lot of our timeline moving forward for closing. It’s important at this point to know what kind of loan you intend to use to consider any factors that could impact the timeline (for instance, how long the FHA or VA is currently taking to approve loans).

When I write the offer, we’ll take those things into consideration and establish a timeline with the seller. We often have some wiggle room on the timing – it’s a negotiation that both parties will agree on -- but the general rule of thumb is about 30 days. Your financing type will be the primary factor in determining the date of closing. Government backed loans like VA and FHA loans are dependent on your lender coordinating with government agencies that can be backed up and sometimes take as long as 45 days. Cash offers can close much quicker, usually in about 2 weeks.

Once you’ve made an offer, we’ve started the clock for a lot of moving parts.

1)      We’ll have a set period of time to perform inspections (general, termite, radon, etc). That timeline will have been set in the contract.

2)      While that’s happening, the lender will start processing your loan and will collect information from you to confirm your loan status and clear you to close.

3)     The attorney will start the title search to verify the seller has the authority to sell your property, look for any liens, and work through any issues that could stop the closing from happening.

4)     Any appraisals will take place to verify the home’s value. Once we have the inspections back, we’ll ask for any repairs that we need to move forward. Sellers don’t have to agree to repairs, but most of the time people are open to making repairs to sell. If you guys can’t agree on repairs then you’ll make a decision about whether or not it makes sense to move forward.

After that, any agreed upon repairs will happen, title will be perfected if there are problems, and the lender will check your finances and credit to approve your loan. Then everything will come together at the closing table. The buyer, seller, Realtors, attorney, and lender will coordinate to sit down together (most of the time) and sign the necessary documents to pass ownership of the home from seller to buyer. The buyer will walk away with the keys and the seller will walk away with the proceeds!

When purchasing a home, it’s very important to understand what is actually included in the sale. The number one way to confirm something will come with the home is to write it into the contract, but there’s usually an expectation that anything attached to the home will come with it. Personal property or “chattel” will not convey with the home unless it’s been agreed upon by both parties. “Real property” refers to fixed property, specifically land and buildings, and that’s what’s usually for sale (along with any easements and appurtenances). 

A survey will help you define the property boundaries to know what land conveys (or changes hands) at closing. It will also help identify if there are any encumbrances or easements on the land or potential property line disputes. 

There are three major factors that help estimate the future value of any given property:

1)   Location – desirable areas will likely sell for more money.

2)   Condition – the condition of a property can make a huge difference in its value.

3)   Growth – an influx of jobs, people, or other money into an area will likely increase a property’s value.

Realtors and appraisers will look at other comparable properties in a given area to determine what ‘like properties’ have sold for and ascertain value from there. Value can vary wildly from neighborhood to neighborhood, which is why the marketing phrase ‘LOCATION! LOCATION! LOCATION!’ is often thrown around.

In terms of the condition of your home, consider what a buyer sees when they walk the property. Is the house in good repair? Deferred maintenance can significantly reduce the value of a home, sometimes to the point where it won’t sell with certain loan types, which will cut out entire groups of buyers. Are there upgrades or enhancements that make the property more palatable? Small changes can make one house more desirable than its neighbor, from color choices to amenities.

Growth, in my opinion, refers to the kinds of changes that bring buyers to that area.

The truth is that no one has a crystal ball about future values, but those factors will help you make an educated decision.

There are lots of resources for determining the history of a property.

Tax and sales records can show us how many times a property has been sold or who has owned it. A title search will show any issues carried over from previous owners (especially any that need to be fixed before closing). We can sometimes find historical listings which have old, pre-renovated photos and additional information like floorplans. But the best tool is probably to ask the seller and neighbors. 

It’s uncommon, but it happens.

There are several factors that contribute to real estate deals falling through, but they typically boil down to inspections and financing. Alabama is a ‘buyer beware’ state, meaning that the buyer has the right and responsibility to inspect what they are buying before closing. What happens if the results make the buyer change their mind? Typically, the buyer and seller will negotiate repairs, but occasionally the buyer will decide that buying no longer fits their interests. Inspections can include surveys, appraisals, and title searches.

The next major culprit to deals falling through is financing. A lender will usually grant a prequalification letter based on an initial conversation with a buyer or a preapproval letter after they’ve verified income and funds. They’ll check employment, credit, assets, etc. If those things change during the purchase, like if the buyer buys a boat or a sports car and it lowers their credit or raises their debt-to-income ratio, it can mean the difference between closing the loan or not.

Understanding the cost and coverage of homeowners insurance is important for budgeting. Your insurance cost can vary wildly from insurance company to insurance company and can be higher or lower at any company based on the coverages and deductibles you choose. Although a lender can give you an estimate on what homeowners insurance should cost, it's advisable to check out rates with a few different companies to make sure you're getting the best deal for you. 

When a deal falls through, both parties have to decide what happens with earnest money. Typically, earnest money is returned to the buyer when they fail to qualify for the loan or if there is some kind of dispute when it comes to repair requests -- but not always. One of the only times earnest money is guaranteed to be returned to the buyer is when a house fails to appraise for the contract value when a buyer is using a VA or FHA loan. 

If both parties can't agree on what happens with the earnest money, the closing attorney will consult with both parties to try to help reach a resolution. Some parties also hire an arbitrator during this time to help them come to a decision. If there hasn't been a resolution after 6 months, the closing attorney has to submit the earnest money to the court system and a judge will make a final decision on who gets it. Both arbitration and court costs can be expensive and end up costing more than the initial earnest money amount, so it's usually better to come to an agreement, such as splitting earnest, if possible. 

Underwriting is a compliance check by your lender. An underwriter evaluates your application and documents to make sure you and your lender have collected everything they need to meet the loan requirements to grant you a loan. If the underwriter has everything they need, they'll grant you an approval on your loan.

Oftentimes you'll need to go back and forth with underwriters to get clarification and additional information for them to be able to approve your loan. Although it can feel annoying, it's a regular part of the process to make sure that the lender is meeting the set guidelines for granting the loan.

Property (Ad Valorem) Taxes are taxes a home owner will pay yearly to own their home. Ad valorem means "according to value." Knowing your property taxes will help you control your budget. Property taxes are usually paid yearly, but if you have a mortgage then they are usually paid by your lender (whoever you pay for your mortgage) out of an escrow account that you will pay into every month.

Tax records are public information and I can pull the tax records for you for any home you consider. It is important to know that taxable value can change based on the sale price of your home, and an estimated change in value is often provided by the lender or attorney.

Yes! You absolutely can protest your property taxes. I have successfully argued down my personal property taxes using a comparative model analysis and recent sales to show that the county's estimated value didn’t match true sales value. Being able to change or contest your property taxes will vary from property to property, but I’m more than happy to walk you through the process. 

An appurtenance is a permanently affixed feature of an object of greater value. In a home, it’s anything that is physically affixed to the property -- light fixtures, crown molding, TV mounts, etc. Anything that is physically attached to a home should be considered part of the sale. Anything that you could pick up and move is considered personal property or ‘chattel’ and is not automatically considered part of the sale. Many contracts specifically outline what is considered an appurtenance. A good rule of thumb is that if you have any questions about whether or not it comes with the property, ask. 

An easement is a term that applies to your (or your neighbor’s) right to use of a property. That can mean a lot of different things depending on the situation. Some examples:

1)      A shared driveway, where the physical property of the driveway belongs to someone else but you would still have the legal right to use it.

2)      Access to a lake or pond where you might own the physical property but a previous owner has granted lifelong use to a neighbor to fish.

A homeowners association, sometimes called an owners association, is a governing authority established in a neighborhood to help control home values and maintain the common areas and amenities of a neighborhood. – Think, pools, sidewalks, dog parks, entryways, etc. Opinions on HOAs vary widely, and I personally believe that's because each HOA operates independently, forms its own rules, and enforces them independently. Some HOAs are actually run by the homeowners, while some are run and operated by management companies. To my knowledge, there's no government oversight on HOAs. 

A homeowners association can be a major benefit or detractor to the value of your home. HOAs often enforce cleanliness and uniformity across a neighborhood, which raises the overall value – a neighbor with a jungle for a yard can actually hurt the value of your home by turning off buyers. HOAs sometimes also provide shared amenities and resources, which also raise the overall value. and most buyers are very happy to have the amenities often found in an HOA, like pools, playgrounds, gyms, basketballs or tennis courts, etc.

Where an HOA can hurt the value of your home, though, is that some buyers actively avoid HOA-enforced neighborhoods. Each HOA is managed separately and there is very little oversight in the way individual HOAs are managed. Some buyers are vehemently opposed to HOAs because they limit your options on ways you can use your home and land; some examples are choosing what kind of fence, grass, and exterior colors you can have. HOAs also have the right to levy fines or liens when their rules aren't met. Turning some buyers away does limit your buyer pool, which can reduce offers on your home.

The MLS, or Multiple Listing Service, is a shared platform that Realtors use to showcase property for sale. Aggregate data services like Zillow and Trulia collect their data from MLS services. 

A home appraisal is an estimate of a property’s value by a licensed appraiser. Anyone can order an appraisal, but it will typically be ordered by a lender to verify that the sales price on a home isn’t inflated, which makes the lender feel confident the loan isn’t a bad investment.

A home appraisal should be independent, at arms-length, and performed by a licensed appraiser. A home appraisal is an inspection in the sense that it is performed to inspect the value of your home, but please don’t confuse it with a home inspection. A home inspector is looking for damage or issues with the home; an appraiser (even if they note issues) is only concerned with the value of the home.

A Realtor can give you an estimate on the value of your home, but that estimate is not an appraisal. The difference is that a Realtor is looking at what the home could sell for, whereas an appraiser is looking for the current value of the home.

Title just means the chain of deeds, or the succession of deeds. Once your house is under contract, a lot of moving parts happen behind the scenes. One of the most important jobs that happens to get the house ready for sale is called 'title work,' where a title agent (usually an attorney in Alabama) will cure or perfect the title to make sure the seller has the right to sell the property.

First, a title abstractor will pull every deed that has existed for your home over the last sixty years. What they really want to know is if there are 'clouds' on the title or liens against the property – anyone that can claim part of the proceeds of the sale or has partial ownership of the house. Even new houses will have a chain of title because it includes the deeds on the land before a house was built.

A lien is like a bill that's charged against your home. Some great examples are mortgages or tax liens, but there are many types of liens.For instance a mechanics lien can happen when a contractor does work on your house and isn't paid. If they can't collect the money they're owed, they have the right to file a lien against your house and collect their payment out of the proceeds of a sale. 

Title insurance is an insurance policy in the event title is cleared but there's an imperfection that wasn't caught. If an heir pops up and claims ownership of some or all of your home, title insurance is there to pay out the heir or, in rare circumstances, the homeowner if they have to surrender the property. 

A CMA, or a Comparative Market Analysis, is a report real estate agents use to determine the value of your home. We look at the current market, recent sales, and similar homes to make an educated assessment of your home's appropriate listing price.

Although an appraisal typically only uses sold data, not active or pending listings, I believe that active listings, pending listings, and canceled/expired listings help us see the whole picture. Are house values trending up in your neighborhood? Do they take a long time to sell? Do homes fail to sell at a certain price point? That information is helpful to see the whole picture.

There's more data than can be judged from a typical online search. For instance, did a house sell for more than usual because a buyer needed extra closing costs and rolled them into their loan? Did a house sit on the market longer because the seller wasn't ready to move and was only accepting offers where the buyer would rent the house back? Every house has a different story and each story can affect the price the house sold for.