THANK YOU

AGAIN

For choosing me to list your home

Today we'll begin the exciting process of preparing your property for sale and creating a complete
marketing and sales plan to meet the needs of your real estate listing. It is important to keep in mind that
selling real estate is a complicated process. I will be working hard to market your property both to other real
estate professionals and to consumers, attract interested and qualied buyers, and negotiate the nal
transaction. Throughout this process, we will need to work as a team to make sure your needs and desires
are met.
This guide was designed to inform you about all the steps of selling a listing so that you can feel condent,
make informed decisions, and act as an educated seller.
Please take some time to review carefully all of the information presented here. If you have any questions
about the topics discussed, I will be glad to go over them with you in detail. Since every real estate
transaction is unique, you will most likely have questions or concerns not presented here. That's what I'm
for to answer your questions, to guide you through every step of the transaction, and to make sure your
home gets sold.

Let's get started!

Chapter 1

REAL ESTATE 101

REAL ESTATE TRANSACTIONS REFRESHER

This may be the rst time you've ever sold a real estate property or it may have been some time since you've
been involved in a real estate transaction. Here's a quick refresher on some of the real estate specic terms
you'll want to know.

Real Estate Brokers and Real Estate Agents

Listing agreements are made between real estate brokers and you, the seller. A real estate agent works for
the licensed real estate broker. The commission for the sale of your home will be paid to the real estate
broker. The real estate broker will pay a split of that commission to the seller and buyer agents where
applicable.

The Fair Housing Act

The Fair Housing Act, originally passed in 1968 and amended in 1988, is a federal law in the United States
that prohibits discrimination in housing.
Seven "classes" are protected under the Fair Housing Act:
Race
Color
Religion
National Origin

Sex
Handicap
Familial Status

You can learn more about

The Fair Housing Act at
www.HUD.gov.

The Multiple Listing Service (MLS)

The Multiple Listing Service is a proprietary database of all properties currently under an active listing
contract in a given area.
All active agents and brokers who belong to this MLS will have access to information about your property
listing. Buyer's agents searching for a new home for their clients will learn about your property listing
through this online database.

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Chapter 1

Real Estate Portals

Real estate portal websites like Trulia or Zillow are data aggregators on listing information. The marketing
information on your listing will be syndicated to real estate listing portals in order to draw in the largest possible
market of interested buyers.

Appraisal
Before you signed your listing contract with me, I oered you a competitive market analysis of your home's value.
We will set the nal asking price on your property based on this market value estimate.
When you receive an oer on your home, the buyer's lender will require an ocial appraisal of the property from a
licensed appraiser. This valuation helps assure the lender that they would own a marketable property if the buyer
(or the borrower in the lender's eyes) should default on their mortgage. The buyer will pay for the house appraisal,
but you should know that it may be dierent than the market analysis that I provided you.

Inspection
In addition to an ocial appraisal, most interested buyers will request a home inspection before nal sale. The goal
of a home inspection is to give the buyer an objective, independent and comprehensive analysis of the physical
condition of your property and check for any safety issues that might otherwise be unknowable.
A professional inspector will check on the structure, construction and mechanical systems of the house. This
usually includes checking:
Electrical systems
Plumbing and waste disposal
Water heater
Insulation
Ventilation
HVAC system
Water source and quality

Waste disposal
Pests
Foundation
Doors
Windows
Ceilings

Walls
Floors
Roof
Radon gas
Asbestos
Lead paint

You may be considering ordering an inspection of your home before we place your house on the market. Not
knowing the full extent of potential problems until an oer is made by a buyer is a recipe for an ugly negotiation
process.

Showing Appointments
When an interested buyer is scheduled to see your property, it's best if you, your family and any pets you may
own are not in the property.
Buying a new home is a very emotional process, and it's sometimes hard for prospective home owners to
imagine themselves living in a particular place when the current resident is still inside. I will work with you and
the other real estate professionals who will be showing your home to schedule and supervise listing
appointments.
These home showings will most likely be an inconvenience for you and your family. I will do everything I can to
work with you to minimize the impact, but an aggressive showing schedule will help us sell your property
quickly, which is our ultimate goal.

Chapter 1

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Chapter 2

COSTS OF SELLING YOUR HOME

Selling your home is typically about making a prot. However, that doesn't mean that it doesn't come without
costs. Here is an overview of some of the major costs you'll be responsible for paying.

Mortgage Balance
This is the remaining balance on your original home loan. You will need to pay o your mortgage in its entirety
when your home is sold.

Home Equity Loans (2nd, 3rd Mortgages)

Any loan against the value of your home will also need to be paid in full after the sale of your home.

Prepayment Penalties
The bank or lending institution that currently owns your mortgage title may assess a pre-payment penalty. You
should speak to your lender now, ask if they plan on assessing a pre-payment penalty, and gure out exactly
how much that amount is. You may be able to negotiate with your lender to reduce or waive the pre-payment
penalty, if there is any.
You'll also want to submit a formal pre-payment notice to your lender.

Pre-sale Preparations
In most cases, it's not advisable to make major investments in your home right before a sale. There are however,
a few things that can be done to increase your home's curb appeal, x minor problems, and otherwise make
your property more attractive. Together we can identify what items should be addressed and create a budget
for these pre-sale preparations that are sure to show a signicant return on investment.

Closing Costs
All closing costs associated with the sale of your home will be listed for you and for the home buyer in the HUD1 settlement form. They buyer is generally responsible for all of these closing costs which include:
The real estate broker commissions
Loan fees for the buyer's home mortgage
Insurance premiums

Title costs (examination and insurance)

Legal documents and services fees
Recording/ling fees

In some cases, buyers make a request for you as the seller to cover their closing costs as a part their purchase
oer. We will negotiate these requests if they are made and I will help you understand why it would be
advantageous to cover the buyers closing costs (if it is) and what limitations we can set to make sure we know
the exact net of your home sale before closing.

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Chapter 2

Taxes
The money that you make from the sale of your home is considered capital gains. The good news is that
these prots can be excluded from your taxable income, up to $250,000 for an individual or $500,000 for a
married couple, as long as your home was your principal residence.
To exclude the full portion of those gains, you will need to have lived in your house for at least 24 months
in the 5 years previous to the sale date of the property. This is considered the 2 in 5 rule.
If you do not meet the minimum occupancy requirement you still may be able to exclude a portion of
your gains if you are selling your house because of circumstances related to your health or to your job. You
should speak with your accountant or a certied tax specialist if you believe you fall under one of the
exclusions or need help in reporting your capital gains after the sale of your home.
If this property is a real estate investment your prots will be considered taxable income and will be
subject to state, federal and self-employment taxes. You can defer all capital gains taxes in a 1031
exchange if you are planning to reinvest the proceeds of your real estate sale into a new property.
Again, in this circumstance you should speak to a nancial specialist who can help you fully understand
and minimize your tax liability.

Moving Costs
Moving isn't only a hassle, it can also be very expensive. Whether you're moving to a new house in your
neighborhood or across the country, it's important to estimate and plan for the full cost of moving from
your home once it is sold.
If you're working with a moving company, you'll want to get a full idea of what you'll be charged for what
services. If you're moving yourself, you'll most likely need to rent a van. And don't forget the packing
materials including boxes and tape.
The more preparation you do in your move planning, the less likely you are to avoid overpaying for your
move expenses.

Chapter 2

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Chapter 3

SETTING YOUR HOME'S

LISTING PRICE
Setting Your Home's Listing Price
As we discussed previously, your home's listing price is based on many factors including:
Current, local market conditions
Comparable home sales

Buyer availability for your property

Proceed considerations

Setting an appropriate listing price is often times the dierence between getting your property sold, and
having it linger on the market, and eventually not sell. In fact, according to the National Association of
REALTORS Prole of Home Buyers and Sellers 2014, the median purchase price of all properties sold in the
United States is within 98% of the seller's asking price.
When it comes to wondering how much you can get for your home, the key factor is not what you paid or
owe on it, but what another person will pay for your house in the current market.
If we set a listing price that is too high, we will lack in interested buyers.
If we set a listing price that is too low, we will short change your home.
Below is a chart that can help you explore the nancial impact of various listing prices.

PRICE 1
Listing Price
Estimated Taxes
Estimated Fees
Estimated Commission
Estimated Selling Costs
Total Owed on the Property
Net Prot for You

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Chapter 3

PRICE 2

PRICE 3

Chapter 4

PROPERTY
IMPROVEMENTS
When it comes to listing your home, there's no single set of blackand-white rules regarding potential property improvements that
apply to every property and every seller. Any upgrade or change
you make should only be considered if the change is likely to have
an appreciable eect on the market value of your property in the
minds of most buyers.
Below are some common suggestions on Do's and Don'ts on
property improvements for your listing:

The Do's
Painting - A fresh coat of a neutral-toned paint could make the
sale easier. Let's face it we all like things fresh-looking.
Minor kitchen issues - Things like plumbing leaks should be xed,
and small updates like swapping out light xtures can make a big
dierence. You might even consider sanding, staining or painting
worn-looking cabinets. Replacing old cabinet hardware is a lowcost improvement that makes a big dierence in appearance.
Floors - From xing scratched wood oors, to replacing cracked
tile, to cleaning dirty carpet, a little money spent on sprucing up
oors can be well worth the investment.

other things you should

keep in mind when you're selling
your property!
1. Stay neutral in style:
No one wants to rip out home
improvements that are obviously
recent but don't meet their
personal tastes. Any changes you
make should play to the largest
possible audience.
2. Consider your neighbors:
Keep in mind that your property
is going to be judged directly to
other comparable homes in your
area. Take a look at homes near
you that are listed around the
same price as your property
whenever you considering
making changes to your home.

The Don'ts
Major kitchen upgrades - Unless there are major structural issues, most new buyers would prefer to do something to
their own taste.
Energy ecient windows - While adding new windows can be a major selling point, it's also a project that can
quickly snowball in time and cost.
New gardens or ornamental landscaping - It's always a good idea to spruce up your outdoor space and make sure
everything is orderly, but don't waste your time adding anything new. If the potential buyer is not horticulturally
inclined, new plants and owers won't add to the oering price. The same can be said for expensive fences and stone
walls they look nice, but buyers don't pay up for them.

Chapter 4

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Chapter 5

HOME STAGING
From the day that your house goes on the market to the day it closes, your property needs to be in
"Selling Shape". Whether you decide to hire a professional home stager or do it yourself, you and your
family will have to cope with some inconveniences and make the transition to thinking about your house
as a property and not a home. This can be frustrating if you're still living in your house, but the eort is
well worth it.
According to the Real Estate Staging Association, a properly staged home can:
Increase a property's perceived value
Help a listing's competitiveness in a down real estate market
Drastically reduce the Days on Market (DOM) of a property
In fact, their 2013 study on both vacant and occupied homes showed that staged properties spent 72%
less time on the market than non-staged properties.

So how can we work together to get your property into selling shape? Let's just follow
some simple rules.

First. Fix it.

Anything that is in your house that is in disrepair and can be easily xed should be addressed before the
home goes up for sale. We'll want to pay particular attention to the front exterior and the most important
rooms in the house: The master bedroom, the kitchen, and the living room.
Having a property that looks well maintained is a huge advantage with motivated buyers.

Next. Clean it.

Clean, clean and more clean. From the inside out, a clean listing is a happy listing. This principle is about
generally cleanliness but it also requires you to de-clutter your house as much as possible.
If it's smaller than a grapefruit, it needs to be put away. Get rid of or pack away anything that isn't
essential. Everything else that is small but cannot be packed should be put away in a drawer or cabinet
during showing appointments. This also applies to things that are accumulated on a regular basis like the
mail, or your dirty clothes.
And remember, it's not good enough to just put things away. Potential buyers will and do open closets
and drawers throughout the house when they're looking at your listing. Be sure to keep personal items
that you do not want on display in drawers that are clearly your personal furniture. The more organized
you can be, the better.

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Last. Stage it.

Making your house appear as attractive as possible is largely
about allowing potential buyers the opportunity to imagine
their lives in your property.
Home staging is essentially the process of using design
principles and tricks that emphasize space. Creating the
appearance of openness and space is key to getting your
property sold. Remember, you're not selling your stu!
Furniture
Great staging, either DIY or by a professional, includes
choosing furniture that shows the room in its best light.
Minimize the amount of furniture you have in each room. If it's
staying in the house, it needs to in good shape and be visually
appealing.

A good rule to
follow? Limit the
number of items
on top of any
surface to

Dcor
It's time to remove anything that could be considered distracting decoration from your home. Importantly, this
includes any personal items like family photos or mementos. Any dcor that does stay up and visible in your home
should be as neutral as possible.
If you have hanging mirrors in the house, these can be positioned to emphasize and reect key areas in the home
like a nice sunny window.
Beware odors
It's not just the stinky stu you need to pay attention to. There are obvious problem points in a home that can
produce bad smells like the garbage cans and the disposal, but you should consider any strong smell a bad one.
Don't rely on potpourri or air fresheners to mask unpleasant odors. These can be just as oensive to some buyers.
Instead, be sure to open your windows when possible to keep fresh air circulating in the house.
The only exception to the strong smells rule is chocolate. Baking sweet chocolate treats before showing
appointments or open houses can help potential buyers feel at home when viewing your house.

Chapter 5

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Chapter 7

COPING WITH SELLER STRESS

Moving is an emotional process. It can represent growth and new beginnings, but the strain of making a life
changing decision is often fraught with mixed emotions. This is especially true if you're moving as a family
with younger children, or moving a long distance.

Here are a few ideas on how you and your family can help mitigate the
stress of your move.
Understand that the jitters are normal.

Don't wait until the last minute to pack.

You've just made a major commitment. Ask

questions throughout the process. Part of my job is
to provide you with information and keep you
informed so that you are condent about your
decisions.

Whether you're hiring a moving company or

planning to do it all on your own, you should start
to plan and pack for your move now.

Get better acquainted with the new place.

Let me help you ease the transition to your new
environment. I can provide you with information on
your new neighborhood, school districts, and more.
If you're moving with children, it's always a great
idea to familiarize your kids with the new
neighborhood a few times before moving day. Be
sure to emphasize the positive aspects of the move
and explain your reasons for relocating. You can also
contact the school your child will be attending and
arrange a time to visit.
Don't get blindsided by expenses.
The more you plan for your move, the less likely it is
that you'll encounter unexpected and unbudgeted
expenses. That being said, it's always a good idea to
be ready for the unexpected. Keep an emergency
fund for unexpected costs that may crop up during
the move or as you set up your new household.

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Chapter 7

You should look to book a moving company six to

eight weeks before your move if at all possible.
You'll also want to interview a few moving
companies and ask lots of questions to make sure
you understand all the potential costs.
As you're working on packing up your stu,
remember that one of the best ways to save your
time and your money is to bring less. Remember
that moving is a great opportunity to clear through
the clutter, and anything that you don't need or
don't want should be donated or disposed of now.
Make a moving plan for kids and/or pets.
Plan to have a friend or family member take care of
younger children and/or pets on moving day. It will
make the day much easier!

Chapter 7

THE MARKETING PLAN

To sell your home quickly and for top dollar we need to have an eective marketing plan.
Here's how I will work to promote your property.

FEATURE
Online advertising strategy

Property Website
Social Media
Website Syndication
Enhanced Listings

Oine advertising strategy

Flyers
Real Estate Sign w/ Text Code
Open Houses
Neighborhood Postcards

Promotions to other
real estate professionals

Reverse Prospecting
Broker Open
Contact Area Offices
Introduce to Office

Open Houses

Multiple Signs
Social Media Blast/Ads
Invite Neighborhood/Brokers
2 Hours to Create Sense of Urgency

Other lead sources

SEE 180 Step Marketing Plan

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Chapter 7

Chapter 8

THE WHOLE DEAL:

FROM OFFER TO CLOSING
It would be great if closing a real estate transaction was like buying a new bike or TV, just cruise through the
aisles, pick your favorite model and head for the register. But this just isn't the case. Real estate transactions are
complex and involve as many as twenty dierent players including real estate brokers, buyers, sellers,
attorneys, inspectors, appraisers, lenders, and often contractors. Because of this, even the simplest transaction
today typically takes between 30 and 45 days to close.
Here's an overview of how the process will typically work once an interested buyer has submitted an oer.

Dealing with Oers

When a buyer or a buyer's agent makes a formal oer we will review the oer in its entirety together. It will
include the oer price, as well as the terms and conditions of the oer.
Oers will come on a legal form, and if accepted, you will be entering into a legal contract with the buyer.
(Keep in mind that there are still lots of ways out' for both you and the buyer at this point.)

When we evaluate oers we'll of course consider the oer price, but we also need to review:
All of the terms and conditions of the oer. Home buying oers regularly include terms such as what should be
included in the sale of the home.
Anything that is an unusual request or requirement of the purchase oer. We'll want to explore the full
implications of anything odd that the buyer is including in a purchase oer.
Whether or not there are other oers on the table that are a better t for you.
After a buyer submits an oer you can accept, reject, or counter oer. We will prepare any counter oers together,
and I will submit that to the buyer's agent or the buyer and guide you through the negotiations.

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Chapter 8

On a typical home sale, here's how things will run:

Once weve received an acceptable oer and entered into a buying contract, there are several steps that will
need to be completed before the transaction and transfer of your property is complete.

On a typical home sale, here's how things will run:

1. The buyer submits "earnest money" that is deposited into your real estate broker's account.
This is typically 1%-3% of the agreed purchase price.
2. A title policy will be ordered on your property.
3. We will set a closing date with the buyer.
4. The buyer will order an appraisal and in most cases, an independent home inspection.
5. The buyer will remove the "conditions of sale" after the appraisal and home inspection,
try and renegotiate their initial oer, or remove their oer entirely.
6. After the nal oer is nalized we will submit the nal legal disclosures and other material
facts relevant to your property.
7. You will need to complete any agreed upon requests for repair that were submitted by the
buyer before the closing date.
8. The buyer will most likely schedule a walk through to verify the condition of the property
and see any repairs that were made right before your closing appointment.
9. Closing is scheduled and completed. Your house is sold!

Understanding Property Disclosures

Before nal closing, you will be asked to ll out a disclosure statement that will list "material facts" about
problems you are aware of regarding the condition and history of your home. Both federal and state laws
govern what must be disclosed during a property sale and as the homeowner you must be the person to
complete these disclosure forms. By law your real estate agent cannot complete these forms for you.

Yes you must

disclose!

The general rule of thumb is that you must disclose anything that would:
Lower the perceived value of the property
Aect the buyer's decision to purchase
Change the price and/or terms the buyer oers

As you ll out these forms just remember, you should strive to answer all of the questions to the best of your
ability. Don't sweat the small stu, but make sure you disclose everything that you'd want disclosed to you if you
were the buyer. If you don't know the answer to a question (such as exact age of the roof if you're not the
original owner or the like), answer "Do Not Know." But not having precise facts about defects you know exist
does not permit you to answer "Do Not Know" to every question. This will always raise a red ag.
If you feel like you don't properly understand the disclosure requirements, you should consult a real estate
attorney who knows the local disclosure laws.

Chapter 8

Page 13

What Will Happen at the Closing Meeting?

Closing is the legal transfer of ownership of the home from seller to buyer. It is a formal meeting that most
parties involved in the transaction will attend. Closing procedures are usually held at the title company or
lawyer's oce. Your closing ocer will coordinate the signing of documents and the collection and of
disbursement of funds.

As a seller, you can help to ensure a smooth closing meeting by making sure to do the
following things:
1. Review the Settlement Statement or HUD-1 that the buyer's lender or closing agent will provide you 1
to 2 days before closing. These documents will contain a detailed description of all costs associated
with the transaction, including the exact dollar amount the buyer will need to bring to closing.
2. Verify with your closing agent any other items that you need to bring with you such as a valid driver's
license or other form of identication.

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Chapter 8

Chapter 9

MOVING CHECKLIST
There are so many details to handle as you prepare for a move. It can seem like a daunting task. This checklist will
help you manage the process and not forget anything.
Packing and Moving
If you're hiring a moving company, get a rm bid in writing.
Try and consume canned food and frozen items before the
move.
Drain gasoline from your lawnmower. Drain any water from
your garden hoses.
Dispose of any ammable or hazardous items. Do not move
these if they can be easily replaced.
Moisten plants before moving.
Pack a "rst night" box with coee, bedding, household
cleaners, toothpaste and toothbrush, pet food, and other
essentials that you expect to need upon arrival.
The Important Stu
Call utility companies (electric, water, cable) to cancel your
current services and sign up for services in your new home.

Packing Smart
The more organized you can be in your packing,
the easier it will be to unpack and settle into your
new home. It's also the best way to make sure you
don't lose or break anything during the process.
Here are some basic reminders on how to pack
well.
Don't use damaged boxes.
Use quality movers tape to secure
items properly.
Don't put heavy items in large boxes.
Put heavier items at the bottom of a box and label
these boxes as heavy.
Have a packing plan. Use color coding or clear
labels.

Collect all of your important documents birth certicates, passports, medical records, and carry these
with you instead of packing them.
Have any necessary prescriptions lled and carry the medication with you.
Precious items such as jewelry or your family photo albums should also carried with you instead of
packed along with other household items.

Before You Leave

Conduct a last-minute walk-through. Check drawers, closets, the basement, and the garage.
Make sure everything is turned o and locked up.

Chapter 9

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Chapter 10

AFTER THE SALE

Moving is often a chaotic yet exciting event in your life. After the big moving day, you've got a lot of work ahead of
you. Unpacking is just the rst part of the battle. Next you'll need to get your regular routines sorted out and make
sure everyone in the family feels comfortable in the new home.
With all of the changes and the responsibilities of a big move, it's easy to misplace important items and make
mistakes. To help keep your life in order, be sure to keep these things on your to-do list!
Securely store these records:
Your closing statement
Property deed
Receipts for home improvements
Warranty information
Loan papers
Insurance policies
Change your address
Start with USPS to make sure that all your mail is getting forwarded and you don't miss any important mail or bills.
You can do this online at moversguide.usps.com.

Once this is done you'll also want to update your address with:
Banks
Credit Cards
Insurance Providers
Work
Department of Motor Vehicles (Driver's License and Car Registration)
Voter Registration
Online Vendors (Especially with automated payments)

Brad Magnant
Realtor
630.797.0196
[email protected]

Brokerage, Independently Owned and Operated. Not intended to solicit individuals or property already under contract. THIS CORRESPONDENCE IS NOT
INTENDED AND SHALL NOT BE DEEMED TO CONSTITUTE ANY OFFER TO SELL A FRANCHISE.