VALUE $ Everything you want and need to know about Listing and Selling your home.

Transcription

1 VALUE $50.00 Everything you want and need to know about Listing and Selling your home.

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3 Seller To Provide At Appointment o Copy of Warranty Deed or Security Deed o Current Mortgage Information including address and phone number o Copy of your Survey o A completed Seller s Property Disclosure Statement o Utility bills for the past 12 months o Any other available pertinent information, such as: Appraisal, Exterior Photographs with seasonal views, Floor plans, etc. o Completed Seller Home Data Sheet o A list of all energy features o A list of replacement items and dates o Any warranties or certificates o Neighborhood organizations or amenities o Special information about schools & churches o News articles about the area or residents o Two sets of house keys o Homeowner s Association information including contact names and phone numbers o Copy of neighborhood Covenants and Restrictions o Ownership documents if change of ownership has occurred such as davorce, death of spouse, quite clame deed from relative. o Reasons you like the home and features you appreciate that others would like. o Any documentation about the home o Anything that might be of interest to a buyer 3

4 RATE YOUR CONCERNS ABOUT SELLING YOUR HOUSE (5 = VERY CONCERNED, 0 = NOT CONCERNED) CIRCLE YOUR CHOICE BUYER S QUALIFICATIONS PREPARATIONS & REPAIRS BROKER'S QUALIFICATIONS SHOWING PROCEDURES ADVERTISING OPEN HOUSES MARKETING INCONVENIENCES POSSESSIONS PRICING CLOSING COSTS SECURITY MARKET STABILITY FINANCING TIMING NEGOTIATING

5 NOTE THE POSITIVES ABOUT YOUR HOME - WHAT ATTRACTED YOU TO IT WHEN YOU PURCHASED IT? WHAT HAVE YOU DONE SINCE THEN TO MAKE IT MORE ATTRACTIVE? IF YOU WERE THE BUYER, WHAT WOULD YOU FIND EXCITING ABOUT THIS HOME? 5

6 EXAMINE POSSIBLE NEGATIVES ABOUT YOUR HOME (5= POTENTIAL PROBLEM, 0= NOT A PROBLEM) CIRCLE YOUR CHOICE IS THE LOT LEVEL OR SLOPED/STEEP? IS THE LOT PLANTED WITH TREES OR BARE? IS THE LANDSCAPING PROFESSIONAL LOOKING OR NEEDING ATTENTION? IS SEASONAL LANDSCAPING COLOR PRESENT? IS EXTERIOR PAINTING NEEDED? IS THE CONDITION OF THE WALKWAY, FRONT DOOR, ENTRY GOOD? IS THE ROOF IN GOOD CONDITION? IS INTERIOR PAINTING OR WALLPAPERING NEEDED? IS THE CONDITION OF CARPETING AND FLOORING GOOD? IS THE DECOR NEUTRAL OR PERSONALIZED? ARE THE APPLIANCES IN GOOD CONDITION? IS THE HOUSE CLEAN? HAVE THERE BEEN RECENT UPGRADES OR IMPROVEMENTS? IS THE LOCATION GOOD? IS THE ENVIRONMENT GOOD? (BUSY, NOISY, PLEASANT) IS THE NEIGHBORHOOD DESIRABLE? WILL THE HOUSE BE SHOWN VACANT?

7 Protecting Yourself Through Proper Disclosure There are two areas where proper disclosure is paramount in protecting your interest in the sale of your property. One involves the agency relationship between you and the company and agent you engage. The second involves the disclosures you and your agent are required to make regarding the condition of your property. Agency Relationships. Rules of the Tennessee Real Estate Commission require that real estate companies disclose to a Seller (and to buyers) the types of agency relationships offered by that company. These relationships must be defined, explained, discussed and understood before a listing agreement is signed. Not only does this protect the seller, but it is a giant step toward eliminating misunderstanding between the seller and the agent (company). Property Disclosure. Pursuant to the Tennessee Residential Property Disclosure Act, both the Seller and the agent MUST disclose to any prospective buyer all known material and adverse factors regarding the condition of the property. This is done with a standard property disclosure form which becomes part of the Purchase and Sale Agreement. This part of the law protects the seller from liability incurred by failing to disclose factors which could result in damage to a buyer. We strongly remommend: Have a termite inspection. Let s not wait until we have a contract before we know there are not pest issues. Have a home inspection. The vast majority of Buyers will require a home inspection and it is best to know before they have an inspection what will be found. 7

8 Keller Williams Realty Value and Belief System WI4C2TS Win-Win or No Deal. Integrity Do The Right Thing. Commitment In All Things. Communication Seek First To Understand.. Creativity Ideas before Results. Customers Always Come First. Teamwork Together Everyone Achieves More. Trust Begins With Honesty. Success Results Through People. 8

9 Our Success Story History Keller Williams Realty is one of the fastest growing real estate companies in the United States and was founded in 1983 in Austin, Texas as a traditional real estate brokerage by its cofounders and co-owners, Gary W. Keller and Joe F. Williams. Our Mission To build careers worth having, businesses worth owning, and lives worth living. Our Vision To be the Real Estate Company of choice for a new generation. Our Values God, Family and Business Our Belief Our beliefs are an essential part of who we are and how we conduct business. The Keller Williams Belief System (WI4C2TS) is the foundation for providing the ultimate in service for our clients. Accolades Keller Williams Realty is ranked the fifth largest franchises in the United States by THE NATIONAL ASSOCISTION OF REALTORS. We currently have over 400 market centers located in 50 states and Canada. These market centers provide over 56,000 associates for any relocation need. Keller Williams is a member of the Middle Tennessee Regional Multiple Listing Service, to provide you exposure to every agent in our market. Keller Williams provides extensive Continuing Education for its Sales Agents through Keller Williams University. Our quality and quantity of educational opportunities are unparalleled in the industry. Our market center in the Brentwood area currently has more than 130 agents. Middle Tennessee offices have grown from one market center with 25 agents to 8 offices (with more opening soon) with over 600 agents as of January, 2005, representing a 48% growth year after year. This is unprecedented growth in the Real Estate Industry. Additional Market Centers for Nashville are in the planning stages. 9

10 Unforeseen Problems Lack of proper Local, State and Federal disclosures Possible credit problems of buyer (require pre-approval letter during inspection process) Appraisal requirements, price adjustments, repairs Inspection requirements Condition-roof leaks, heat-air, etc Environmental issues-radon, asbestos, mold Buyers remorse Possession requirements Permits on past additions Drop by buyers Flexibility of showing by appointment Security system going off Pets get out Missing items-jewelry, guns, prescription drugs Survey issues Divorce issues Estate issues 10

11 Performance Guarantee on Selling Your Home As a Real Estate Professional dedicated to providing the highest level of service to my clients, I am offering you a Personal Performance Guarantee, outlining what you can expect from me not only during this transaction, but For Life! If for any reason you are not 100% satisfied with my service you may cancel your listing agreement No Questions Asked. This will empower you in the sale and marketing of your home. You will hear from me at least once a week regarding the marketing and feedback from other agents on your home. The service you receive will be caring, compassionate and professional at all times. Your needs will come before all others and I will do whatever is necessary to make the sale of your home go as quickly and smoothly as possible. Finally, you will not be forgotten after the closing. I will always be available to you, your family, friends and associates for any assistance with their real estate needs. Remember I am your Real Estate Consultant for Life! I guarantee your real estate experience with me will be professional, informational and as enjoyable as possible. I provide a high level of service, because I feel when someone experiences a service which exceeds their expectations they will want to refer friends, family and associates to such a professional. John Lenderman Date 11

12 How To Reach John Lenderman 105 Westpark Drive ~ Brentwood, TN Office - Main Cellular Telephone (Best to reach me) john@lendermanrealestate.com Internet: LendermanRealEstate.com 8:00am - 5:00pm Office You may reach me directly at the Keller Williams Office. I prefer that you leave me a voice mail message on my cellular telephone. Mobile If you need to reach me immediately, my cell phone is almost always available to you. If I do not answer, you may leave a message and I will return your call. and the World Wide Web If you would prefer to a document to me or communicate a message, you may use my . This is checked each day. After Hours If you leave a message after 5:00 p.m., the call will be returned the next business day. 12

13 Where Does The Commission Go 13

14 MARKETING PLAN OUTLINE 1. MARKET RESEARCH ANALYSIS: A. Data accumulation: -Deed -Tax star -Mortgage loan survey -Disclosures -Recent upgrades & proof -Appraisal -Seasonal photographs -Covenants & restrictions B. Current market analysis: -Location: general competition -Price: general area -Terms: present rates -Condition: of your home 2. HOME PREPARATION: A. Inspection B. Appraisal C. Complete all mandatory forms -Listing agreement -Staging -Homebook-best vendor list -Seller s net -Brochure development (photos & facts) -What you may not notice about this home 3. PRICING STRATEGY/MARKET POSITIONING: A. Statistical analysis active/pending/closed B. Current active listings tour C. Strengths & weaknesses of property D. Most likely buyer E. Range of pricing (how to become #1) 14

15 MARKETING PLAN OUTLINE ( continued) 4. KICKOFF MARKETING & ADVERTISING: A. Market to 1000 s of agents in Middle Tennessee, internet, realtor.com, realtracs (interior & exterior color photos) B. Signs & lockbox placed C. Agent brochures D. Owner fact sheet to friends & sphere of influence E. Just listed full color cards to neighbors F. Networking G. Open house 5. SHOWING MANAGEMENT: A. Property clean & showable B. CSS calls and follows your showing instructions C. Copies of ads & work accomplished, via or fax 6. MARKETING MANAGEMENT: A. Results of past activity (weekly) -How did we rate? #1, 2, 3, etc & why? -What s the competition like out there? -How does the agent like the property? -Terms? -Condition B. End of month meeting -Review to date results of showings -Review what has recently sold/pending -Reposition properly if necessary condition, price, terms C. Begin re-marketing activity -Change price -(see advertising above) 15

16 MARKETING PLAN OUTLINE ( continued) 7. POST CONTRACT AND SALE MANAGEMENT A. Contract negotiation and management -Pricing/ negotiation -Closing/ negotiation -Inspection and repairs negotiations -Location of closing-negotiations -Loan documentation-verification -Insurance-verification -Personal property negotiations -Covenants & restrictions B. Fulfillment requirements -Manage time and dates of contract requirements -Moving arrangements -Utility transfers -Home management documentation: -Best vendor list -Appliance warranties -Keys, garage door openers, security systems, etc -Final walk through -Removal signs/locks/fact sheets 16

17 Where Do Buyer s Come From? FOR SALE Signs 59% Referrals 10% Open Houses 9% Corporate Relocation 4% Internet 11% Advertising & Newspapers 7% 17

18 Pre-Marketing Plan A well-thought-out plan is critical to your success. Developing an in-depth Competitive Marketing Analysis will determine the proper Price Positioning for your home. A written marketing plan will be developed specifically for your home. We will provide proven ideas for the preparation and staging of you home. Listing forms and procedures will be thoroughly explained. We will review with you the Tennessee Sales Agreement and your obligations as a seller. We will assist you with the completion of the Seller s Property Disclosure Statement. We want to make every interaction with Lenderman Real Estate and Keller Williams Realty a positive experience for you. 18

19 Key Market Factors How long does it take to sell a home? There is no easy answer some homes sell in a few days, others may take several months. Recognizing the key factors influencing a sale can give you significant control over market time. The proper balance of the following factors will expedite your sale: LOCATION Location is the single greatest factor affecting value. Neighborhood desirability is fundamental to a property s fair market value. COMPETITION Buyers compare your property against competing properties. Buyers interpret value based on available properties. TIMING The real estate market may reflect a seller s market or a buyer s market. Market conditions cannot be manipulated; an individually tailored marketing plan must be developed accordingly. CONDITION Property condition affects price and speed of sale. Optimizing physical appearances and advance preparation for marketing maximizes value. TERMS The more flexible the financing, the broader the market, the quicker the sale and the higher the price. Terms structured to meet your objectives are important to successful marketing. PRICE If the property is not properly priced, a sale may be delayed or even prevented. Keller Williams Realty s Comprehensive Market Analysis will assist you in determining the best possible price. 19

20 Realistic Pricing TIME Chances are your home will sell at fair market value. Pricing your home realistically at the outset will increase the likelihood of a timely sale, with fewer inconveniences and greater overall monetary return. COMPETITION Buyers educate themselves by viewing many homes. They know what a fair price is. If your home is not a competitive value with those they have seen, it will not sell. Buyers typically look at homes within a $10,000 price range. When your home is not priced within the correct range, it will not receive optimal exposure or targeted buyers. REPUTATION Overpricing causes most homes to remain on the market too long. Buyers, aware of a long exposure period, are often hesitant to make an offer because they fear something is wrong with the house. Often homes which are on the market for a long time eventually sell for less than fair market value. INCONVENIENCE If overpricing keeps your home from selling promptly, you can end up owning two homes or lose your chance at a home you wish to purchase. This can prove costly and inconvenient. 80% of the marketing of your home is complete when your home is correctly priced. If you are unwilling to list your home at, or just below, the current market value, you are better served not putting your home on the market at all 20

21 Pricing and Timing Selling Price vs. Timing A C T I V I T Y WEEKS Timing is extremely important in the real estate market. The above graph illustrates the importance of placing your property on the market at a realistic price and terms from the very beginning. A property attracts the most excitement and interest from the real estate community and potential buyers when the home is first listed. Thus, your home has the best chance of a sale when it is new to the market. Intelligent Pricing +15% 10% 10% 30% Market Value 60% -10% 75% -15% 90% Asking Price vs. Percentage of Buyers This graph demonstrates your ability to attract more buyers when your home priced at or just below market value. When pricing your home at market value, you have a greater percentage of prospective buyers and increase your chances for a sale. 21

22 Preparing Your Home For Sale Here are a few great tips on creating an atmosphere, which will charm buyers and make them want to buy your home. Remember, you ll never get another chance to make a first impression. And first impressions are what count! Follow these tips and create the competitive edge, which may help you sell your home quickly. Drive-up Appeal Curb appeal counts! Here are some tips, which will give a terrific first impression: Trim trees and shrubs Clean out flower beds and plant a few flats of seasonal flowers. Paint the front door, trim work and gutters if necessary. Make sure doorbell is working properly Wash the mailbox Keep the porch swept and purchase an attractive mat for people to wipe their feet. Don t forget rear or patio doors and walkways. Clean the exterior heating/cooling units and change the filters. If possible, clean oil stains from concrete driveways and patch or seal asphalt drives. Absolute Basics Start by airing out the home. Most people are turned off by even the smallest odor. Odors must be eliminated, especially those caused by dogs and cats; soiled diapers and/or cigarettes. Wash all the windows in the home, inside and out. If it has been over a year since the carpets have been cleaned, now is the time to have them cleaned. Bare floors should also be waxed or polished. Put bright light bulbs in every socket made for a bulb. Buyers like bright & cheery. Clean out closets, cabinets and drawers. Closets should look like they have enough room to hold additional items. Get everything off the floor and don t have the shelves piled to the ceiling. Rent a storage bin, if necessary. 22

23 Preparing Your Home For Sale ( Continued) Absolute Basics ( continued) Make sure rooms are not overcrowded with furniture. Select pieces which look best and store the rest. Keep the kitchen sparking clean. Make sure all appliances are clean at all times. Straighten cupboards, which appear cluttered and keep floors gleaming. Bathtubs, showers and sinks should be freshly caulked. The grout should be clean and in good condition. There should be no leaks in the faucet or traps. If you are a smoker, we suggest cleaning the carpets and drapes, and then smoke outside until your home is closed. A few more suggestions If you have limited counter space in the kitchen, store unnecessary items. Keep children s toys out of the front yard, sidewalks and front porch. Remove any clutter from halls and stairways. Take the time to oil hinges, tighten doorknobs and faucets. Clean the ashes out of the fireplace. Make sure that the pull-down staircase to the attic is working correctly. Be sure there is an operating light in the attic. The pool needs to be sparkling and free of leaves. For those willing to go the extra mile There are some things you can do which will really add flair to your home. If your house is the least bit dated, removing wallpaper in the entry, kitchen or bathrooms and replacing outdated light fixtures adds desirability. Fresh paint on interior and/or exterior where needed. New appliances in the kitchen can be an exciting feature and can actually make the difference in a buyer choosing your home over another. 23

24 Preparing Your Home For Sale ( Continued) Showing your home When you leave the house in the morning or during the day, leave it as if you know it is going to be shown. Keep good scents in the house, such as potpourri. Make sure all the lights are on and window treatments are open. Turn off the television. Keep pets out of the way preferably out of the house. Many people are uncomfortable around some animals and may even be allergic to them. Leave your home. Take a short break while your home is being shown. Buyers are intimidated when sellers are present and tend to hurry through the house. Let the buyer be at ease, and let the agents do their job. 24

25 Seller s Records (what we need from you) Utility bills for the past 12 months A list of all energy features A copy of your floorplan and survey Present loan information (including second mortgages or lines of credit) Tax information Photos of the house that might be of interest A list of replacement items and dates Warranty Deed Any warranties or certificates Covenants Key for the lock box Neighborhood organizations or amenities Special information about schools & churches News articles about the area or residents Any documentation about the home Anything that might be of interest to a buyer 25

26 House and Grounds Checklist Exterior Cut grass (shovel snow) Mend fence, gate, and steps Install house numbers Plant annual flowers Pick up toys, tools, etc. Remove excess items Trim shrubs Edge lawns Seal driveway Close garage door Store trash cans Wash windows Entrance Tighten handrail Replace light bulbs with higher wattage Doorbell should be in working order Buy new doormat Repair or replace screens Remove paw prints and fingerprints Paint threshold, polish brass or other metals Front Hall Clean out closets Remove clutter Add plants, fresh flowers Living Room Remove crowded pieces Pack away distracting items Clean out fireplace ashes Shampoo carpet Repaint interior Repaint ceilings 26

27 House and Grounds Checklist ( Continued) Kitchen Clean stove and oven Clear counters Scrub sink - Remove fingerprints Starch curtains Dust mini-blinds Add a plant or fresh flowers Bathrooms Replace shower curtain Freshen grout around tub Change toilet seat Remove personal items Bring in a plant Clean (repaint) medicine cabinets Buy new towels Remove tub mat Bedrooms Store personal items Remove valuables Clear dressers Clean out closets Add live plant Remove excess furniture Attic, Basement Clear stairs Check light bulbs Vacuum floors Dust away cobwebs Straighten stored items 27

28 House and Grounds Checklist ( Continued) Garage Hose down floor Tidy stored items Keep doors closed Replace light bulbs (higher wattage) NOTES: 28

29 Pet Checklist Have a safe and comfortable place for your pet when your home is being shown. It is generally best to remove your pets from the home. Make sure all of your pets have Identification Tags in case they should accidentally get out. Please provide fresh food and water, toys and a place for your pets to transact their business. Make sure the food areas are clean. Keep the litter box clean. Be aware of pet odors. Please clean around bird cages, hamster cages, etc. Your pet may become stressed by the scent of strangers in their territory. Please watch for anxiety and give your pets plenty of reassurance, love and attention. Benefits of Pre-Appraisal & Pre-Inspection The benefits of ordering an appraisal and an inspection when initially listing the home can expedite the entire marketing process. Below are some of the key reasons: Establish Objective Value Validates List Price Establishes Basis for Comparison Creates Awareness of Condition of Home Anticipates Potential Problem Areas Saves Time and Money Minimizes Purchaser s Fears 29

30 Recording your Home Improvements Project Date Cost Comments 30

31 Improvements Which Add Value To Your Home PROJECT COST VALUE ADDED COMMENTS KITCHEN Low: High: $15,000 $20, % Cost includes: new cabinets and countertops, rewiring, structural changes, relocated plumbing, custom cabinetry and top-of-the-line appliances. BATHROOM Low: High: $7500 $10, % Cost includes: new fixtures and fittings, tile floors and walls, structural changes, and relocated plumbing. High-end materials and fixtures can raise costs. Note: adding a second bath can yield more than 100% of resale value. ROOM ADDITION Low: High: $30,000 $40, % Depends on type of room a family room or new master suite (don t forget to include the cost of the bath) will add more value to a home than a private office or fourth bedroom. CONVERTING AN ATTIC OR GARAGE TO LIVING SPACE Low: High: $10,000 $15, % Cost assumes no structural changes and no new plumbing. Added value depends on size of house (smaller house = more value) and type of space created. Family room or bedroom will add more value than a game room or exercise room. ADDING A DECK Low: High: $5000 $10, % The warmer the climate, the more value added. The size of the deck, complexity of design and added amenities (spa, trelliswork) influence the cost. RE-PAINTED EXTERIOR Low: High: $1200 $ % Assumes old exterior was worn and repainting was done immediately prior to putting the house on the market. A new coat of paint probably adds the best profit to selling a home. IN GROUND SWIMMING POOL Low: High: $20,000 $30, % Cost assumes an average pool of 16 x 32 in a rectangular shape. Added value depends on desirability to future owner. Banks usually do not include pools in mortgage appraisals. 31

32 Seller s Settlement Guide Home Warranties Many home purchasers erroneously assume the Seller is always somehow liable when there is a defect or failure found in the home s cooling, heating, plumbing, electrical and/or appliances after the Buyer moves in. Unless otherwise provided for in the contract, risk of loss often falls on the Buyer. Even when the contract provides that heating, plumbing, pool & equipment, electrical, etc. be operative on or until date of possession, disputes can always arise as to when the breakdown occurred, who is responsible, how the repairs are to be funded, and when they are to be made. Home warranty plans go a long way to alleviate these risks and concerns. For a modest price, basic coverage is currently around $409 or slightly more for optional coverage, the Seller can provide the Buyer a one-year warranty covering, specified heating, plumbing, electrical, water heater or appliance breakdowns. Coverage under most plans commences at closing (although some can be made to commence during the listing period as well). In all cases, there are important limitations and exclusions (for example: appliances/systems must be operative at commencement of coverage). 32

33 Now That Your Home is on The Market Our Duties AGENT Install signs and submit to MLS SELLER Complete all repairs and cleaning. Place marketing data in home for prospective buyers. Stage your home to be appealing. Prepare marketing information and advertising. Keep home ready for showing. Distribute marketing information. Hide valuables (also prescriptions). Arrange for office tour by agents. Keep marketing information out for buyers. Attempt to give 1-hour notice to show. Call me if information is depleted. Review market continuously. Leave premises for showings. Follow up with other agents who show home. Call me with any questions. Communicate with you regularly. Market your home to friends and acquaintances. Advice of possible solutions if home has not sold. Negotiate best contract for your needs. Handle all the details of the closing Keep me advised where to reach you or give permission to show if you are unavailable. Refuse to discuss terms, needs and circumstances with buyers or their agents without me present. Because buyers do talk to your neighbors, please do not discuss any of the above with them. 33

34 Presentation of Offers When an offer is generated on your home I will do the following: 1. Present the offer to you personally. 2. Have the cooperating Broker share Buyer Qualifications. 3. Go over every item in the contract with you so that you thoroughly understand what the buyers are offering and what they are asking for. 4. Discuss all offers with you in private, after listening to the other agent. Give you as much input as I possibly can regarding: 1. Current market and finance activity. 2. Other sales to date. 3. Competition. 4. Broker comments. 34

35 The Negotiation Process Often, the Seller is most concerned with the selling price during the negotiation process. However, there are several points, which still require agreement from both parties to conclude the process. Below are some of the key points, which you will want to consider when reviewing a contract: Closing Date Date of Possession Lease-Back Options Inspection Repairs Appliances Closing Costs 35

36 The Home Inspection Process According to the Purchase and Sale Agreement a Buyer has the opportunity to have the home inspected by a professional before closing. You can avoid, or at least anticipate, costly repairs to structural or mechanical systems by having a pre-inspection completed prior to marketing the home. The sales contract specifies the inspection will take place soon after the offer is accepted and that settlement is contingent upon satisfactory inspection. The inspection requires specific technical skills and thus, requires a professional Home Inspector. You can become familiar with common problems, but a Home Inspector will give you a better overview of the entire structure of a house and its potential problems. The Inspector will point out potential problems with the items listed below: On/off switch on furnace, air conditioner, etc. Pilot light on hot water heater, oven, etc. Fuse box Main water shut-off controls Foundation Floors Walls and partitions Roof Windows and doors Plumbing system Electrical system Heating, ventilation, and air conditioning system Septic tank, well, or sewer line Common areas (at condominiums and cooperatives) 36

37 The Home Inspection Process ( Continued) Additional items to be aware of: Lead Based Paint Many homes built prior to 1978 have paint, which contains lead called Lead Based Paint. Lead based paint which is in good condition is usually not a hazard, however, lead based paint that is peeling, chipping or cracking may need immediate attention. If a pre-1978 house is sold, federal law requires sellers to disclose known information on lead based paint hazards before selling the house. Sales contracts will include a federal form about lead based paint in homes. Buyers will then have up to 10 days to check for lead hazards. A lead based paint inspection is generally $150 or more. Radon In 1985, it came to public attention that excessively high levels of radioactive gas could be found in many homes across America. The percentage in Tennessee is about one in three. You should discuss with the inspector as to whether you want to have this test performed. This inspection is generally an additional $100 or more and can be conducted by a professional inspector. Stucco There are two types of stucco hard coat stucco and synthetic stucco. Synthetic stucco is also called E.I.F.S. or Exterior Insulation and Finish System, and where most of the moisture problems are found. Even Hard Coat Stucco homes may have Synthetic Stucco Trim. Moisture problems generally occur due to improper installation of synthetic stucco. Moisture enters the wall cavity through windows, doors, electrical fixtures and other penetrations causing wood rot. A stucco inspection is generally an additional charge of $250 or more. Another issue with stucco homes occurs when the bottom edge of the stucco is embedded in soil. This allows termites to burrow through the wall cavity. Synthetic stucco homes need to have additional steps taken to assure there are no termites. This will require a treatment process or removal of stucco material to a mandated height above ground contact. Remember, a positive inspection and repair report will calm most Buyers fears when considering a stucco home. Pressed Board Siding (Louisiana Pacific, Masonite, etc.) Louisiana Pacific Siding is made of wood chips and resins including wafer wood and oriented strand board and was manufactured since This siding was originally manufactured to be environmentally correct, better adherence for paint, cheaper than traditional lumber, less prone to cracking, shrinking and warping. However, when improperly installed resin overlay allows for moisture absorption. To maintain pressed board siding, check for a soil clearance of at least 6 inches, paint every 3-5 years and apply paint to bottom edges, caulk nail heads and butt joints. Keep shrubs and vegetation cut back so siding can dry properly. Do not power wash pressed board siding. 37

38 Additional items to be aware of: The Home Inspection Process ( Continued) Polybutylene Piping Polybutylene piping is a form of plastic resin used for interior or exterior water piping found in homes from 1979 to The piping can be blue, gray or black and is estimated to be in 1 out of every 4 homes. It was originally used to reduce the costs associated with plumbing materials such as copper, and does not require highly skilled workers for installation. Polybutylene piping is an issue due to oxidants in the public water supply, which can react with the piping and the fittings causing the pipe to become brittle. Improper installation will cause the pipe to deteriorate from the inside, so the visual inspection cannot determine if the piping is in good condition. Polybutylene piping can be found under sinks, above and around the hot water heater, in the basement, in the crawl space and where the water line connects to the home. Failure to disclose polybutylene piping could lead to a legal problem if leaks occur after the sale. Water Heater Dip Tubes The dip tube in a water heater directs incoming cold water to the bottom of the tank, where the water rises as it becomes warmer. Without it, the water heater will emit lukewarm water not long after turning on the faucet. Recently, it was discovered that dip tubes manufactured from were affected by a change in the manufacturing process. This is a problem since the majority of water heater manufacturers purchased their dip tubes from one supplier. Septic /Well System Inspections This inspection is determined by the contract. If a Buyer requests this inspection in the contract, then the appropriate County Environmental Health department for the property location will be contacted to set up an appointment. Due to inclement weather, this procedure could be scheduled out 2-3 weeks. Results from this inspection will determine the next steps. 38

39 Termite Letter A termite inspection is required by most lenders no more than 30 days prior to close. If the buyer is obtaining a mortgage, the closing cannot occur until a letter stating the home is free of termite infestation is presented. A home may have previous damage, but must be treated and documented by a professional pest control company. If you do not currently have a bond for termite re-treatment or damage, and termites are found at the time of inspection, the pest control company will probably require you to have the home drilled and chemically treated (approximately $900) before a letter is issued. Once the home has been treated, the termite company will warranty the property. This bond can then be transferred to the new owner. Termite damage is of the utmost importance mainly because it can remain undetected for years. The damage caused by termites may result in sagging floors, rafters, loose trim, cracked plaster and more. Termites are found in most every state, but are noted in larger concentrations in the South. 39

40 The Closing Process Once the negotiating process is concluded, your home will move into what we call Pending status. During this time, we will handle all the details until the closing. Below are the services which we will coordinate for the Buyer and Seller: Be available to all parties as a central communication point Mail or fax documents pertaining to the closing Meet clients at Keller Williams Realty for signatures as necessary Send letters to Clients, Lender, Co-op Agent and Attorney Keep weekly documentation on loan status Note all deadlines in contract and remind you of upcoming deadlines Mail Movers Guide and change of address form to Buyer Obtain covenants and restrictions and home owner s association information Oversee all contingencies are met on a timely basis Order home warranty and mail brochure to our Buyer Confirm that our Buyer has an insurance policy Schedule termite inspection Obtain our Seller s Pay-off information, forwarding address and social security number and forward to attorney Confirm all amendments are received by the attorney and kept current in office file Schedule closing and notify all parties Mail closing checklist to seller (includes directions to Attorney s office and what Client is responsible to bring to closing) Schedule final walk-through with all parties Obtain copy of preliminary settlement statement for you to review Arrange for utility transfer 40

41 Moving Checklist GIVE ADDRESS CHANGE TO: Post Office Charge Accounts, Credit Cards Subscriptions: Notice requires several weeks. Friends and Relatives BANK INSURANCE UTILITY COMPANIES Transfer funds; arrange check cashing in new city. Notify company of new location for coverage s; Life, Health, Fire and Automobile insurance. Gas, Electric, Water, Telephone, Garbage or Sewer Get refunds on any deposits made. MEDICAL, DENTAL, PRESCRIPTION HISTORIES DON T FORGET TO: Ask Doctor and dentist for referrals. Transfer needed prescriptions, eyeglasses, X-rays. Obtain birth records, medical records, etc. Empty freezer Defrost freezer and clean refrigerator. Place charcoal to dispel odors. Clean rugs and clothing and have them wrapped for moving. CHECK WITH MOVING COMPANY REGARDING: MOVING DAY: Insurance coverage, packing and unpacking labor, arrival day, various shipping papers, method and time of expected payment. Carry enough cash or traveler s checks to cover cost of moving services and expenses until you make banking connections in the new city. Carry jewelry and documents yourself, or use registered mail. 41

42 Moving Checklist AT YOUR NEW ADDRESS: Plan for transporting pets; they are poor traveling companions if unhappy. Double check closets, drawers and shelves to be sure they are empty. Leave all old keys needed by new tenant or owner with Realtor or neighbor. Check on service of telephone, gas, electricity and water. Check pilot light on stove, water heater and furnace. Have new address recorded on driver s license/apply for state driver s license. Register car within five days after arrival in state or a penalty may have to be paid when getting new license plates. Register children in school. Arrange for medical services: Doctor, Dentist, etc. 42

43 To Seller: 10 Days To Close Reminder Arrange for the final reading of all utilities for the day of closing, or the day you give possession to the Buyer (whichever is later). This should include: electric, water, phone and garbage services. Buyer will take possession of the property at the time of closing unless other arrangements have previously been agreed to in writing. Please bring photo identification to the closing. This will be necessary to have the documents notarized. Bring all keys including mailbox, pool, recreation keys, garage door openers and coupon book for maintenance fee and gate remotes. Please also insure that all keys given to the neighbors have been collected. Congratulations you have made it to the last page and hopefully learned a great deal about the process of selling your land. As you can see as your Designated Listing Agent I can take a lot of the Stress out of the sales process. If you decide to list with me, I assure you your needs will be addressed, you will know what is happening every step of the way and may even enjoy the freedom we provide. 43