You’ve successfully negotiated the terms and accepted an offer, now what ?

Well, in short, everything that has been contractually agreed upon between buyer and seller now begins playing out. First, the home is put in a “Continue to Show” (CTS) status alerting agents that while the home can still be shown, there is an accepted offer.  The 1% check that accompanied the Binder (accepted offer) is placed in the buyer’s agent’s escrow account until the point where contracts are signed.

Now we need to fulfill the contingencies, negotiated up-front between buyer and seller, include the following points:

Property Inspection:

Depending on the systems in your house,  the buyer customarily has 7 business days to complete all inspections which can include:

* Building/Engineering Inspection – conducted by a licensed property inspector — from the roof to the foundation-and everything in between. This usually also includes a termite and pest inspection. Other inspections performed can also include a lead test and water test. The test can run 3-4 hours depending on the size of the home.

* Radon Test – radon is a gas that occurs underground and when a house is built it can be “trapped” in the structure.  The buyer will most likely do a test which consists of putting a monitoring system in the lowest living level of the house and letting it run for 48-72 hours.  The test is then read and in CT, a radon level found under 4.0 picocuries is considered ok.

* Septic Inspection – if your house has a septic system the buyer will hire a licensed septic inspector to check the integrity of the tank (no cracks), and the capacity left on the leaching system.

An inspection that turns up items of concern to the buyers in the home can be grounds for further negotiation or worst case, nullifying the purchase agreement.

Contracts:

In lower Fairfield County, CT we use attorneys to draw contracts. Your REALTOR will forward the negotiated accepted offer to the real estate attorney of your choosing and they will draw a contract and send it to the buyer’s attorney.  Both attorneys will then discuss any terms that need to be discussed, add in any inspection items or credits that arise and the buyer’s attorney will have their client come in and sign the contract-usually within 10 business days of the accepted offer.  The contract will then be returned with the remainder of the deposit money (up to an additional 9%) that will be held in your attorney’s escrow account.  The buyer’s agent will also send the good faith 1% deposit they are holding to your attorney.  You will go in, review the contract and make sure everything is as it should be, and then sign.

 Financing:

The buyer must secure mortgage approval and the clock starts ticking as soon as the offer is accepted.  The buyer needs to continue the application process they have already started.  The signed contract is usually necessary for the appraisal to be ordered, but everything else can get moving right away. The loan will have to be “packaged” when completed and then passed on to the underwriting department for review and approval. This process takes approximately 6-8 weeks.

Property Appraisal:

If a loan is to be considered for approval, the lending institution usually wants to see that the property is valued at the sale price or higher. They will hire an independent licensed appraiser to do an in-depth assessment of your home – square footage, acreage, condition and upgrades. They will then research sales up to 6 months old that they find as comparable, making adjustments as necessary. They will file their report with the buyer’s lender. This is a major part of the mortgage approval process and why it is so important to price your property reasonably. If the appraisal comes in lower than the sale price, one of three things can happen: 1. a renegotiation can take place. 2. the buyer has to come up with more cash or 3. the deal falls apart.

  Title:

The property must have a clear title for a clean exchange of ownership. Your attorney will handle hiring a firm to do a title search. Things that can effect title are outstanding liens on the property or a mechanics lien from a disgruntled past worker. Municipal searches are also being done to make sure all permits have been properly closed out, some of which can date back prior to your ownership. Unfortunately, you are still responsible for putting all permits to rest.

If these contingencies (or any others listed in the purchase contract) are not met, the deal can be nullified and the good faith money returned to the buyer.

Tie Up Loose Ends:

During the escrow period, the buyer should be busy tying up loose ends that might stall or prevent the transfer of property. Homeowner’s insurance, required by the lending institution, must be purchased, local and state regulations pertaining to property transfer must be met.

Time to pack!

So you’ve made it through getting the house ready to go on the market and having to leave the house for showings, and now – you’ve received an offer! Ideally the potential buyers have offered you full price or more and the perfect terms for the sale. However, just on the off chance this isn’t this case, you want to look carefully at all aspects of the offer (not just the price) and begin a negotiation with the buyers and their agent.

Your agent will be your partner and help you evaluate the terms of the offer.  Just as you did when determining the asking price of your home, you’ll want to see what the market is doing in terms of the offer you have just received.

What are the different parts of the offer?

What does the offer consist of? Generally the following: purchase price; pre-approval letter for the mortgage amount showing that the buyer is indeed qualified to go through with the purchase; dollar amounts of down payments and dates associated with them; dates outlining contingencies such as inspections, contracts & mortgage approval; what’s included with and excluded from the sale, all required disclosures signed by the buyer; the name of their attorney (in Lower Fairfield County, CT we use attorneys to draw contracts), a copy of the good faith deposit check (usually 1% of the offer to be held in the buyer’s agent’s escrow account) and the proposed closing date.

One of the most important aspects of the offer is whether the buyer can fulfill the terms of the contract with financing. Your REALTOR can check on the pre-approval letter that should be included with any offer by consulting with the buyer’s agent and the buyer’s lender.

What Factors Should You Consider in a Purchase Offer?   Before you offer a counter offer here are the  questions you’ll want to consider:

• How close is the offer to your asking price?
• Will your home appraise for the contract price?
• How large is the earnest money deposit that accompanied the offer?
• Has the buyer asked for assistance with closing costs?
• Has the buyer asked you to make repairs or to give a credit for home improvements? (This usually occurs after the building inspection & we will talk more about this in the next blog.)
• Is the requested settlement date appropriate for your needs?

At this point it is important to decide what your “bottom line” is and then start working towards meeting that through negotiations. Other things to consider are:

• Are there other offers?
• Is it smart to wait for more offers to come in?
• How will you handle it if no other offers come in after a particular deadline?
• What will you do if you accept this offer and something that sounds more appealing comes in?

Making a Counteroffer

As a seller, you have the option of accepting the offer as is, declining the offer, or making a counteroffer. Your agent can give you specific advice about your negotiating stance based on your home and your market, but generally you will need to be prepared to compromise on some aspect of your home sale.  It’s always smart to have a dialogue with a potential buyer and see where it can lead.

Your negotiations can go more smoothly if you have a clear sense of your own priorities, such as a particular settlement date, the ability to rent-back your home from your buyers, or a minimum price that is realistic to put the deal together. Your agent should have prepared a document showing you net proceeds at different sales prices that can make it easier to understand the value of different offers.

Negotiations proceed best when both you and your buyer respect each other’s needs and interests and come to an appropriate compromise with the help of your agents.

Flowers, candy, red hearts and romance… that’s what Valentine’s Day is all about, right? Well, maybe not. The origin of this holiday for the expression of love really isn’t romantic at all — at least not in the traditional sense.  Instead crime, imprisonment and execution are at the genesis of our modern day love fest, dating back to the man whose martyrdom may have inspired the holiday. There were reportedly three early Christian saints named Valentine, but the one the holiday is likely named after was a Roman priest during the 3rd century A.D. under Emperor Claudius II.  The Roman Empire was experiencing massive turmoil at the time. Dubbed the “Crisis of the Third Century” by scholars, this period saw the empire divide into three competing states, with the threat of invasion all around.  Claudius II made the unpopular decision to ban marriage among young people, believing that unmarried soldiers fought better than married soldiers. With the Roman Empire hanging by a thread, Claudius needed all the brazen war power he could get.

This is where Valentine comes in; the pesky priest who believed marriage to be a God-given sacrament. Valentine began officiating marriages in secret but was eventually found out and imprisoned. The advent of the Valentine’s Day love note may have come about from young children passing Valentine notes through the prison bars, but this may be embellishment to an otherwise tragic story.

In the year 269 AD, Valentine was sentenced to a three part execution of a beating, stoning, and finally decapitation all because of his stand for Christian marriage. The story goes that the last words he wrote were in a note (professing his love?). He inspired today’s romantic missives by signing it, “from your Valentine.” The priest was named a martyr by the Church because he gave up his life to perform the sacrament of marriage: for love of love and love of God.

At the end of the 5th century, Pope Gelasius I declared February 14th to be St. Valentine’s Day, and centuries later romantic authors like Geoffrey Chaucer and Shakespeare helped seal the deal with references to the day in their works.

Selling your house can be a lot like remodeling: It usually takes longer, costs more and is more emotionally draining than you thought it would be, but in the end it was worth it! Unless you’re the rare home owner who gets multiple offers above the asking price days after listing, the sales process can be emotionally challenging.  Knowing what’s ahead helps ease some of the anxiety that goes along with the process.  Generally, you can expect a three-step process: Getting the house ready, showing it off and responding to the marketplace.

First Things First:
One of the first things your agent will do is place your home in the local Multiple Listing Service (MLS). This notifies all other agents in the area that your home is for sale. Your house will also appear on numerous websites such as Raveis.com; Realtor.com; and so many more.

The for-sale sign will appear in the front yard and a lockbox will be attached to your house, most likely on the front door. The lockbox allows agents access to your house for showings and also alerts your listing agent who is entering your house through satellite communication.  You may think it would be easier for you to be home & let the agents in, but it is best if you are out of the house during showings (see below), and a lockbox allows a secure way for the agents to gain access.  Showing instructions can be set up to work with your life style, especially if you have small children or pets.

Open Houses:
The most important activity, right out of the starting gate, is the Broker Open House.  This is set up on specific days with time frames relating to different geographic areas. Most active agents use open house days to keep current on the housing inventory as it comes on the market. Usually your agent will serve refreshments and use this time to encourage other agents to share their thoughts on how the house shows and how accurate the pricing is as compared to other homes their buyer clients may be looking at, allowing for many perspectives. This is why when you go “live” you should make sure you’re completely ready for showings – “you only have once chance to make a first impression”. You’ll probably be swamped with last-minute touch-ups and clean-ups to get the house ready but it is worth every minute of time you spend!

Next, if you and your agent agree this is something you are comfortable with, there will be a public open house traditionally held on a Sunday afternoon. These are advertised both in the newspaper and most importantly, on the internet. This allows buyers to search for properties in their price range and visit, (or re-visit), on their own time frame.

It is best if you are not present during showings and open houses. Buyers want the freedom to look around and make comments. If you are home when potential buyers come for a viewing, try to step outside while they tour your house.  Many sellers incorrectly think that multiple open houses are needed to sell a house. In fact, few homes are sold at open houses, but there are many good reasons to have them.

Traffic Patterns:
You will get the most traffic in the first two to three weeks after your house is listed. Anyone looking for a house like yours has probably viewed all of your competition and will be anxious to see your home since it is a new consideration. Don’t fret when the traffic dies down.  The average days on market (DOM) can be 60-90 days in a normal cycle, depending on the area, price range and current inventory. In a slower market, buyers can take their time and usually do. If you have buyers come back a second or third time, it’s usually a good sign.  Any offers — even ones you consider to be “lowball offers” —  have a chance of being negotiated and potentially leading to a sale, so always be open to discussion.

Marketing Your Home:

Your agent should have a multi-dimensional approach for the marketing of your home.  A widespread internet presence with quality pictures and an enticing description are some of the most important aspects of the marketing plan. The reach on the internet should be through multiple avenues – websites and MLS search sites just to name a few.  The marketing should not however only focus on the internet. Potential buyers are everywhere and your agent’s specific plan for your home should hit multiple arenas – print, mail, social networks, visual tours, and the list goes on & on!

According to the  Employee Relocation Council – Moving is the third most stressful event in life, following death and divorce. It is important to be partnered with an agent you trust, who can help make the process go as smoothly as possible. Let me know how I can help, I would love to chat!

The decision has been made and you’re ready to get going!  The next step is to confirm pricing, sign the listing agreement and the mountain of paperwork that goes along with putting your home on the market and preparing for showings.

Establishing a Price:   When setting a price, the most important thing is to be realistic. This is where the experience of your agent is critical. You want an honest, well thought out evaluation where the agent is telling you the truth of where your home should be priced in order to attract the best offer.  What you should be careful of is any agent who will tell you a price they think you want to hear, just so they can get your listing – if the price is too high, the house will sit and you will end up chasing the market down ( if the price sounds too good to be true, it probably is). A well prepared comparative market analysis (CMA) and an experienced agent with a good track record are the best tools for establishing a realistic price. Professional appraisals and programs like Zillow are very unreliable and do not reflect current market conditions, or the competition including their upgrades and other features.

 Signing a Listing Agreement:  After you have chosen an experienced real estate agent, you will need to  sign a listing agreement: a contract in which you agree to allow your REALTOR to sell your home during a given period and pay the REALTOR a fee when your home sells.  There is also a stack of paperwork including state and federal disclosures which your agent can guide you through.

The amount of compensation you pay a broker is negotiable, but most REALTORS have standard pricing models that they use across all of their listings. The agreed upon commission structure will be noted in the listing agreement. Make sure you understand how the fee will be paid before signing.

Exclusive Right to Sell Listing –
Almost all agents will ask for an “exclusive right-to-sell” listing. This means that all property inquiries are directed to your agent. Even if you decide to sell the house to your cousin, your broker still handles all aspects of the sale and earns their commission.   It’s possible that a REALTOR from another company will find a buyer for your home. In that case, your broker is the listing broker, and the second agent is the buyer’s agent or broker. General practice is that the commission is split between the listing agent and buyer’s agent.

Length of Listing –
The listing agreement will specify how long you agree to list your house with a company and a specific agent. You want a period that’s long enough for your agent to successfully market your home and respond to buyers (it’s important to know the average days on market for your price range).  Remember that the listing agreement is a contract, and your agent and brokerage is bound to the terms just as you are.

Preparing your home:
Every home is different and your agent should provide you with advice and recommendations when preparing your home for sale. People buy on emotions and your home has to feel right, or buyers will look elsewhere. They also need to be able to picture their belongings and lifestyle in your home.  An experienced agent can advise you on how your home should be staged. Staging “paints the picture” for a buyer. It neutralizes your home so the buyers can envision the space and what “could be”.  It is important to remember that you don’t sell a house the same way you live in a house on a daily basis.

Stay tuned for What to Expect once the Listing goes “Live”!

Your relationship with your REALTOR becomes quite intense & intimate during the listing and selling process.

Ever wish you could see through the hype to know who the best fit in a  real estate agent will be for selling your home?  There are  things you can do to pull back the curtain and accurately assess an agent and their potential for success with your home.

1.  Look at the Agent’s Performance – Ask agents to provide a list of what they’ve listed and sold in the last year (or further back).  They should also be able to provide testimonials from past clients talking about their performance.  You should be able to easily view these testimonials either on their website or in the preliminary marketing material.  For instance, I provide my potential sellers with a comprehensive listing history. This history encompasses all the listings I’ve had during my career (currently 7 pages). This is helpful in giving an idea of my pricing philosophy, my list to sale price ratio-currently 98.6%, and my days on market — all important information to consider.

2.  Look up Licensing – Every state will have boards that license and discipline real estate agents. I always provide a copy of my license in my marketing materials.

3.  The Right Credentials – Just as doctors specialize, so do real estate agents. Some agents will get additional training in specific areas, so that alphabet soup after their name can be an indication that the person has kept up and expanded their education. Here are my designations and what they mean:

• REALTOR: If the agent calls himself a REALTOR with a capital “R,” that means she’s a member of the National Association of REALTORS. By hiring a REALTOR, the most important thing you get is an agent who formally pledges to support the code of ethics, meaning they will be fair & conscientious in all their dealings.

•  SRS (Seller Representative Specialist): The SRS Designation is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal performance.

GRI (Graduate of the REALTORS Institute): REALTORS® with the GRI designation have in-depth training in legal and regulatory issues, technology, professional standards, and the sales process.

•  SRES (Seniors Real Estate Specialist): Complete training aimed at helping buyers and sellers in the 50-plus age range (yes, 50 is the beginning of “senior”-how depressing).

4.  How Long has the Agent Been in Business and is this their full-time career? – You can often find out how long the agent has been selling real estate from the state licensing authority, or you can just ask the agent.  If they haven’t been in business five years (I’ve been licensed since 1986), they’re learning on you and that’s not particularly good.  Ultimately, what you’re looking for is someone who is actively engaged in the business, what kind of market presence they have and that they are keeping up with the market trends on a full-time basis.

5. Look at an Agent’s Current Listings – Check out an agent’s listings online. Two places to look are the agent & agency’s websites, and REALTOR.com, a website that compiles properties in the Multiple Listing Service into a searchable online database.  Most buyers start their search on the internet, and you want an agent who uses that tool effectively.  A key component is an attractive presentation on the web.  Although the internet is the most important advertising vehicle, you should look for an agent who uses other avenues to promote your home including direct mail, agent networking and YES, print advertising as well.

http://geriguzinskisellsstamfordhomes.com/

Ultimately, you want someone who’s on top of the market and has your best interests at heart with the skill set to make things happen.  It’s like dating…trust is key and you “know” when it’s the right fit.

Can you imagine what life would be like in the United States today if Martin Luther King Jr. had not had such a  large impact on civil rights and race relations?

I remember being in 6th grade and having three negro (that’s how we referred to Afro-Americans then), children bused into our primarily white school and how scared they looked on that first day. I tried to go out of my way to befriend them and volunteered to sit with Ella ( yes, I still remember her name and wonder where she is), and as a result was teased by some of my classmates.

Through his activism, Dr. King played a pivotal role in ending the legal segregation of African-American citizens in the South and other areas of the nation, as well as the creation  of the Civil Rights Act of 1964 and the Voting Rights Act of 1965.  King received the Nobel Prize in 1964, among several other honors.  He was assassinated in April 1968, and continues to be remembered as one of the most lauded African-American leaders in history, often referenced by his 1963 speech ” I Have a Dream.”  His life and work have been honored with a national holiday, schools and public buildings named after him, and a memorial on Independence Mall in Washington D.C.  He was truly a visionary leader who was deeply committed to achieving social justice through nonviolent means.

Do you think his dream still lives on the way he envisioned it?

Have you ever wondered why Connecticut’s boxlike shape has a jut out into New York?  In life we kind of like things orderly and symmetrical. I’ve recently learned the “tail” is called the Connecticut Panhandle.  Texas, Florida and Oklahoma all have panhandles, but who knew Connecticut has one too!

The Connecticut panhandle is the southwestern portion of Connecticut, where it abuts New York State. It is contained entirely in Fairfield County and includes all of Greenwich, Stamford, New Canaan, and Darien, as well as part of Norwalk and containing some of the most expensive residential real estate in the United States.

The irregularity in the boundary is the result of territorial disputes in the late 17th century, culminating with New York giving up its claim to this area, whose residents considered themselves part of Connecticut, in exchange for an equivalent area extending northwards from Ridgefield, Connecticut, to the Massachusetts border as well as an undisputed claim to Rye, New York.  Just think Playland could have been ours.

The two British colonies (a century before the future Revolution’s end) negotiated an agreement on November 28, 1683, establishing the New York–Connecticut border as 20 miles east of the Hudson River, north to Massachusetts. The 61,660 acres east of the Byram River making up the Connecticut Panhandle were granted to Connecticut, in recognition of the wishes of the residents. In exchange, Rye was granted to New York, along with a 1.81-mile wide strip of land running north from Ridgefield to Massachusetts alongside the New York counties of Westchester, Putnam then Dutchess, known as the “Oblong”.

There is also a little cutout on the Connecticut – Massachusetts border known as either the “Granby Notch” or the “Southwick Jog” depending on which state you’re in.  After a 155 years of border disputes an agreement was reached over the final disputed 2.5 mile area – giving 5/8th’s of the parcel around Congamond Lakes west shore to Massachusetts and Connecticut receiving the remaining east shore, creating the “Notch”.

Let’s save a discussion of Rhode Island and Great Captain’s Island for another day…

       Is going to Times Square on New Year’s Eve on your bucket list?  I’ve been there and it’s definitely an interesting experience!  I was one of the lucky few that was at a private event (which had a bathroom and was downstairs from Dick Clark’s New Year’s Rockin’ Eve).  Even thought we were inside it was freezing cold (even the alcohol didn’t help), and twenty minutes before the magical hour we were herded like a group of cattle into the “VIP” area where we were squished like sardines.  The ball drop, however, was amazing.

So you may be wondering where the tradition of the Times Square ball drop started.  The history actually centers around the The New York Times moving to its new headquarters in 1903.  The paper’s owner wanted to mark the festivities with a midnight fireworks show, which continued for four years.  In 1907, to draw more attention to the newly renamed Times Square, he had a lighted Ball constructed to be lowered from the flagpole, this was the debut of the Ball drop at one second after midnight.  Though the NY Times later moved its headquarters, the Times Square celebration lives on.

The Ball has transformed from being made of iron and being five feet in diameter, to today’s Ball which is the seventh version, weighing in at 11,875 pounds, measuring 12 ft. in diameter with 2,688 Waterford crystal triangles which vary in size.  The Ball is illuminated by 32,256 LED’s in 672 modules which each contain 48 LED’s – 12 red, 12 blue, 12 green & 12 white – for a total of 8,064 of each color.  The Ball is capable of displaying more than 16 million colors and billions of patterns that creates the spectacular kaleidoscope effect.  WOW!!!

So as you sip your champagne and countdown to midnight you can astonish your friends with your new found knowledge.

Wishing you all a Happy, Healthy & Fun New Year!