Sellers Disclosure as a tool of Protection

Real estate requires many tools in the course of selling a home or buying a home.

I have discussed both online and offline what some of the valuable tools are in a real estate transaction or house search.

The real estate sellers disclosure document is another important tool. In Florida, and perhaps all states (I can only speak for Florida) real estate agents give their sellers what is called the “Sellers Disclosure” to be completed by the seller as soon as possible, after seller agrees to have the agent market their home for sale, in other words, a listing agreement is signed.

In the Sellers Disclosure, the seller is stating what he or she knows to be true about the structure of the home and the condition of the strcture as well as the condition of the mechanical systems of the home, for example, air conditioning, electrical and plumbing. Issues are to be documented if seller is aware of any, such as, a leak, crack in the wall, faulty stove. Of course agents do not expext sellers to be home inspectors, and agents are not inspectors either, but with a pair of working eyes we all can see the obvious: cracks, rotting foor frames, broken windows, stain in the ceiling from prior leaks. Sellers are to document if they are aware of prior flooding, the age of components and when components were last repaired. There is work invloved in completing the disclosure, but well worth it, and yes, sellers do have their homework to do.

After the disclosure is completed and returned to the listing agent, the document can be put online in the Multiple Listing Service as an attachment, place on counter in home for visiting buyer prospects, and available during open houses. Although, sellers do not have to complete the disclosure by law, it is helpful in the selling process as buyers will want to know the condition of the home and home’s systems and structure. There is always the issue of liability if seller is aware of a problem or potential problem and neglected to relay that information to buyer. The Sellers Disclosure serves to protect all parties from aggravation and stress down the road. In Florida, a court case, Johnson vs Davis, says that Sellers are legally obligated to disclose whatever materially influences the value of the home. The Sellers Disclosure is a tool for sellers to fulfill that obligation.

Kenneth Fach, REALTOR, ePRO
Weichert, REALTORS-Anchor
1607 Village Square Boulevard, Suite B 103
Tallahassee, FL 32309
Direct/Cell/Text 850-339-5753 http://KennethFach.com

Each office is independently owned and operated

Be Prepared to Do Real Estate

Buyers and sellers need to go to the real estate agent with preparation. Like anything in life, being prepared is a prerequisite. I learned that early on in scouts, and try to read up on something, ask around, and lastly, go to the professional with the information I think the professional will need to better assist me.

BUYER PREPARATION:
1. Know how much home you can afford before taking the real estate agents precious time looking at homes. Speak with your mortgage company or bank contact. Get something in writing from the lender as to what your price range is. The agent can do a helpful search on what is available based on that price range.
2. Have adequate contact information for the agent. Be reachable via text messenging on your cell phone (one of my preferred ways to communicate), phone, email, and have other numbers if that would be helpful. Make sure you adjust your email filter so that your agent’s email is not sent to the spam box. It would be a good idea to provide your local address to.
3. Have a consistent schedule as to when you can meet to see properties.
4. Know your time frame for buying a home, or have a good idea. If you have a home to sell, get an idea of what the market is there, and set a realistic selling price so the home will sell in the time frame you want. Of course, the buyer will make the decision about buying the home. In this market, price is crucial.
5. If you have not bought a home, or have not bought a home recently, read up on the home buying process. My website at https://kennethfach.com/ has a presentation of the homebuying process. Real estate is real estate, but the laws and regulations change more often than not.
6. Be realistic in your negotiations through your real estate agent. The seller wants to reap a reward, just like you the buyer want to reap a reward. Don’t ask for the kingdom. Make the seller feel like he/she is a winner, but also you can be a winner to. It really is about both parties being successful, and having their needs met.
7. Use the JOTT system to record your To Dos, Reminders, and Thoughts about a home. It is very practical technology. Go to http://jott.com/. You get both a transcription of your verbalization, plus the audio version. I use Jott to organize my day, and record my thoughts. You can record notes on homes you see, since after seeing 5 plus homes, people’s memory start to get mixed up, and it is easy to confuse one feature of a home, with another home. Jott resolves that issue fast.

SELLER PREPARATION:
1. Know your location, what is going on in your neighborhood, what is on the market, and what has sold in the last 30 days. See your real estate agent for this information. She or he will have absorption rates for the neighborhood, and can tell you where in the price range your home should be place in order for it to likely sell in your time frame.
2.Let your agent know what your time frame. Pricing the property accordingly is crucial. Homes often stay on the market for months and months only because of price.
3. Get a home inspection right away, and resolve issues before the buyer complains about them. You will be in a better negotiating position if you present a shiny apple versus an apple with dark spots on it. Buyers can be very particular in this market, since there are plenty of other nice homes for sale. You may want to offer an allowance for carpet replacement, or a new refrigerator.
4. Ask your agent for staging tips and what suggestions agent may have for a more successful sale. There are professional stagers who can make your home shine.
5. Have copies of a survey, homeowners disclosure, homeowners association documents, and utility bill handy to provide to a potential buyer. Buyers want knowledge. Give them the information they want.
6. Do not rely on what neighbors say their homes sold for, or what advice they give you. Neighbors often lie about what they really sold their home for. I see this all the time. Neighbors say they sold their home for such an amount, but when I check the property records I find other numbers, and I do check more than one source for confirmation.
7. Remember, the buyer wants to be your solution: Selling your home so you can buy that other home you want. See the buyer as friend, not enemy. Support the buyer, but don’t give the castle away either.

What features do you want to market to buyers

This is an activity you can get the whole family involved in. Have everyone, even the children, list their five favorite features of the house, and describe why they like it. It could the fireplace, backyard, the balcony, the abundance of light coming into the home, the trees all around the home, the hardwood floors, the open floor plan, the office. Whatever it is, list it, and write a short marketing piece for it. Have everyone in the family share their favorite features and their reasons for liking those features. Then, if there are children, have the children decorate the paper, or have them do their own list in their own way. It can even be on colored paper. I would then place the paper beside the open house roster, or other strategic location so that when buyers come in to view your home they can easily pick up the paper and read it.

You want to do this because buyers will like to read what is popular about the home. Having hosted a lot of open houses, I see buyers reading what the family wrote about their home. Buyers look for those same features, and start to visualize in their minds how their lifestyle will fit in with the home. Your likes describe your lifestyle. Buyers do not buy homes, they buy lifestyles. Sellers do not sell homes, they sell lifestyles.

Another idea is to have a family bulletin board with that list of features, photos of the home, home’s survey, school information, and other useful information to attract buyers.

Kenneth Fach, REALTOR, e-PRO Certified
Weichert, REALTORS-Anchor, Tallahassee, Florida
Direct 850-339-5753  http://KennethFach.com  Blog: Tallahassee.KenandRealEstate.com

Each office is independently owned and operated.

Be Prepared for Questions from Real Estate Agent

I learned in my years in scouting that the best way to do anything right is to be prepared. How many times I have asked basic questions to real estate buyers and sellers, and have not had my questions answered or answered in a timely manner. I am going to tell you what questions you need to be prepared to receive from your real estate agent. These are practical questions: How much home can you afford? Have you been preapproved for a mortgage loan and for how much? What part of town are you interested in living in? What are five features that your home must have? What do you own on your current home and how much equity  have  you built up in it? Are you working with another real estate agent? (agents like loyalty). What insurance company will you be using? This next one changes so often, but it is important so that the real estate pro can better work for you. What is your time frame?  The real estate pros can assist you, but you have to open up to them, and answer all questions. For sellers, it is important to know all about your home. Your agent will probably have you fill out a HomeOwners Disclosure. In that, you will need to give dates as to when repairs were made, age of appliances, whether the air conditioning works properly, and if you know anything that could materially affect the value of your home. Have all your paperwork in order and with accuracy. Complete any paperwork given you by your agent. This is often protection to you, and the other party.

Kenneth Fach, REALTOR, e-PRO Certified
Weichert, REALTORS-Anchor, Tallahassee, Florida
Direct 850-339-5753  http://KennethFach.com  Blog: Tallahassee.KenandRealEstate.com

Each office is independently owned and operated.

Sellers must tell their buyers

Sellers: this message is for you. Please, please, disclose anything that you know may materially affect the the value of the home you are selling.  Buyers want to know, and legally are entitled to know if there is an issue in the home, on the property that could materially affect the value of the real estate. Flooding issues, leaks, pests, plumbing issues, and so much more must be disclosed to the buyer. Your real estate agent will want you to fill out a Seller’s Disclosure. Please take the time to complete is accurately, and truthfully. Then, the agent will have to provide copies of the disclosure to buyer prospects.

I can assist any seller with disclosure issues. This is the age of disclosure, and I am there to make a smooth transaction.

Call me with any of your real estate questions: 850-339-5753.

Kenneth Fach, REALTOR, Weichert, REALTORS-Anchor, 1607 Village Square Boulevard, Suite B 107,  Tallahassee, FL  32309, 
Direct: 850-339-5753

Each office is independently owned and operated.