Seller FAQs
Brian Gangawer
Animal Lovers❤, Pit Bull Advocates🐶, Motorsports Enthusiasts🏎️, Low-key Vegans🥗, Exhausted Parents😴, and Superstar Realtors🤩...
Animal Lovers❤, Pit Bull Advocates🐶, Motorsports Enthusiasts🏎️, Low-key Vegans🥗, Exhausted Parents😴, and Superstar Realtors🤩...
Q: What do I need to do to get my house ready to sell?
Q: How long will it take to sell my house?
Q: What do I need to leave behind when I move out?
Q: Should I price my house a little above the market to leave room to negotiate?
Q: Should I leave when buyers come to see the house?
Q: How much notice will I get before a buyer comes to see the house?
Q: What’s an estoppel and why do I need one?
Q: What’s my house worth?
The short answer is an experienced and qualified professional needs to see your house in person before they can possibly arrive at a definitive value for it. The value of your home can be impacted by its cosmetic condition, the age and condition of major systems like roofs and air conditioning, the degree to which it has been updated and/or upgraded, the location and orientation of the lot in the neighborhood. An experienced Realtor should conduct in person evaluation of the property to accurately account for those and other intangible factors. After that review of the property, they’ll be prepared to review the sales of other comparable properties in the area and analyze market trends that could impact the value of your specific property in order to arrive confidently at a value for your home. After explaining the complexity of the process, we sometimes hear, “But can’t I just look online for the value?” There are an enormous number of automated valuation tools available to people these days, but we definitely recommend that they be used by people with no more than a casual interest in the value. Relying on these tools when it comes to the sale or purchase of a home can have disastrous results. For example, we recently worked with a couple that were considering selling their home after reviewing the value on Zillow.com. After walking the property in person and taking stock of all of the upgrades in the property that the neighbors didn’t have, we recommended a list price that was $71,419 higher than Zillow’s “Zestimate”. That property sold in only 6 days and for the full list price. The inaccuracy of online estimates can also result in an unrealistically high expectation of the value of your home. This was made pretty clear when the CEO of Zillow famously sold his own home for 40% less than his Zestimate. This isn’t just a Zillow issue though, it’s a problem with virtually all online value estimations. They simply don’t have the ability to account for the differences between your home and others that have sold. Online home value estimates are intended to be the starting point in a conversation about the value of your home, and that conversation should take place between you and a qualified Realtor.
Q: What do I need to do to get my house ready to sell?
We’re frequently asked by people that are preparing to sell their homes if they should remodel their kitchen, replace appliances, or even take down walls to open up a floor plan. It’s rare that dramatic changes like those are called for when getting ready to sell your home. A good rule of thumb is to review the comparable sales in the neighborhood with your Realtor, have that Realtor take you to view some of the competing homes that are currently up for sale in person, and then make sure that your property is in a condition that is approximately equal to the top 25% of those properties. It is just as important to not over-improve a property as it is to make sure the home measures up to buyers’ expectations. That means that the types of work necessary to get a home ready for sale will depend on the price range of the property and the competition in your specific area. Most homes will benefit from a lot of the same basic TLC. We recommend that homeowners repair damaged drywall and paint it to match (including filling in holes from curtain rods or mounted TV’s that have been removed), touch up stained or worn paint or repaint rooms entirely when the problem areas are large, have carpets professionally steam cleaned, touch up or improve landscaping, reduce clutter wherever possible, and power wash badly stained driveways and walkways. It can also be a good idea to have a professional cleaning service come through for a one-time thorough cleaning of the kitchens, baths, windows, air conditioning intake vents, ceiling fan blades, and baseboards. There are very few other projects around the house that are frequently recommended and yield a return on investment. The annual Cost Vs. Value Guide for Orlando from www.CostVsValue.com definitely helps make that point, with not a single project on the list resulting in a value increase that covers the cost of the project.
Q: How long will it take to sell my house?
The median days on market for the Greater Orlando Area was just 17 days in the 2nd quarter of 2018. Breaking down the market into price segments can help to shed some additional light on the subject though. Homes in the $500,000+ price range are actually taking more than twice as long to sell, with a median of 39 days on market. Homes priced below $300,000 have a median of just 13 days on the market, with many selling within the first few days. In fact, just recently we sold a property in Sanford, FL priced at $235,000 in 12 hours for the full list price (priced $27k+ higher than the Zestimate by the way). The actual time that it will take for your specific property to sell will depend on a variety of factors, including price, condition, and how convenient it is for potential buyers to get in to see it. The time frames above are a general indication of what is happening in the market. You’ll definitely want to check with a Realtor to see how your neighborhood is selling to see where you might align with those averages. If your neighborhood is flooded with competition, you could be looking at a longer timeframe. If you’ve got the only available property in your neighborhood that’s zoned for great schools and you’re selling over the summer, you might be looking forward to a potential bidding war.
Q: What do I need to leave behind when I move out?
The sales contracts in Florida include the following items if they exist on the property as of the date of the offer and are included in the sale: Range(s)/oven(s), refrigerator(s), dishwasher(s), disposal, ceiling fan(s), intercom, light fixture(s), drapery rods and draperies, blinds, window treatments, smoke detector(s), garage door opener(s), security gate and other access devices, and storm shutters/panels. The items that we see missed by sellers the most have to be drapery rods, draperies, and window treatments. We always recommend that, if you have a really nice set of curtain rods and drapes that you’d like to take with you when you move, or a chandelier that used to belong to your grandmother that has sentimental value to you, that you remove the items and either repair any damage from their removal or replace the items before the photos are taken. No matter how clear you make it that something doesn’t convey with the house, once the potential buyer sees that chandelier and falls in love with it, you’re likely to be in for a battle you could have avoided. It’s also important to note the “s” in refrigerator(s), meaning a second refrigerator in the garage is included with the house unless you specify otherwise in the contract. To the contrary, your countertop microwave is not automatically included with the contract unless it is built into the cabinetry or otherwise permanently affixed to the wall. Clothes washers and dryers are also not included in the sale unless specifically added to the sales contract.
Q: Should I price my house a little above the market to leave room to negotiate?
We are in a seller’s market right now and homes around Orlando are selling fast. While that may sound like an opportunity to shoot for the stars on your sales price, it’s important to keep buyer expectations in consideration. Sellers are able to stand their ground in negotiations right now in a way that they couldn’t in a more balanced market. In the 2nd quarter of 2018, the average price negotiation in our area was only a 1.7% discount from the list price. Realtors, and many of the buyers that they are representing, are aware of that fact. We recommend staying close to the market value for your property to attract the correct amount of attention from the buyers that are serious about buying your home at the time that they’re most excited about it, which is when it first hits the market. That’s for a variety of reasons that I’ll elaborate on. One risk that you run by pricing your home above the market, even by a relatively small amount, is that home shoppers might make the assumption that you won’t be willing to move from that list price at all. They may then choose to move forward with a full price offer on a competing property that was listed at a price that you would have accepted had they chosen to make an offer on your home instead. This isn’t just a hypothetical situation; it’s one we see on a regular basis. Many buyers are losing in multiple offer situations repeatedly before having an offer accepted. When a person has had that experience, they frequently overlook the homes that they see as unlikely to work out in favor of the opportunities that they feel more optimistic about. It is also possible that, by pricing your home above market, you could cause qualified and interested buyers to miss the property altogether. Most home shoppers are searching online using specific price ranges. If you’re even 1 dollar above the price range set up by a group of buyers for their search, or in the search their Realtors used for them in the MLS, they are unlikely to even know that your home is up for sale. Many people feel more comfortable with the approach of shooting for a higher price at the beginning with the thought that they can just reduce the price later if it doesn’t sell. In a balanced market, that approach does have some merit. In a seller’s market, however, you run the risk of having your listing go “stale”. When most of the other homes are selling in around 17 days, if your home has been on the market for 30+ days that is going to be the first detail about your home that buyers notice. Often the first question we get from a buyer when they see a home in this situation is, “It’s been on the market for a long time, so what’s wrong with it?”. Another equally problematic assumption we hear is, “It’s been on the market for a long time, it must be really overpriced.” That’s not how you want your property to be perceived before they set foot in the door. It’s equally important to consider that when you market your home on websites like Zillow.com or Realtor.com, those sites prioritize the properties that they show to users based on how long they’ve been up for sale. The newest listings are on page 1. Even after you make your price adjustment later down the line, you may still be on page 10 and well out of view of the people using those websites.
Q: Should I leave when buyers come to see the house?
Yes, you should give the potential buyers and their Realtor some privacy when they come to see the house. When the owner of the home is present for the showing appointment, many buyers will feel like they’re inconveniencing the seller and hurry through the property rather than taking the time to look around and fall in love with the house. Buyers also tend to avoid conversation about the house with their Realtor if they’re afraid that the seller will hear them, whether it be good or bad feedback. That’s because they may be afraid of insulting the seller with negative feedback or giving away too much info if they’re gushing about how much they love it. If the buyers do have a concern about the house, you want them to voice it to their Realtor then and there. That way the Realtor can either help the buyer see a way around the perceived problem or share that feedback with you so that you know what you might need to change to help get the house sold. If they have fallen in love, you want them to tell the Realtor to get the paperwork started before they move on to the next house!
Q: How much notice will I get before a buyer comes to see the house?
As the seller of the home, you’re in complete control over when people can come to see the property. With that said, the more flexible you are with providing access to the house, the more likely you are to sell it. In our experience, after price and condition, access to the property has the 3rd largest impact on your success in getting your home sold. Quite simply, if buyers can’t get in to see the house in person, they aren’t likely to make an offer. We frequently see scenarios where buyers are relocating to the area and are in town for just the weekend to see homes. If they can’t get in, they usually just remove the house from the list and move on. That doesn’t mean that you should have to drop everything and run for the door every time someone wants to see the house. We typically recommend setting the expectation that the buyers should give you at least 2-3 hours’ notice before an appointment to see the property. That gives most people enough time to get things straightened up and finish up what they were doing before leaving. If the buyers absolutely need to get in sooner, they can ask for an exception. That way, if you get a call saying that a buyer drove past your house on the way to another one in the neighborhood and really want to see yours too, and you’re already out of the house with the house in showing shape, you can still take advantage of the opportunity. The more advanced notice you require, the more you impact the ability to sell the house. When you start to require 24 hours’ notice or notification the day before the showing appointment you will start to see a reduction in showings, and that is likely to hurt the sale by either increasing how long it takes to sell or by taking money out of your pocket on the sales price.
Q: What’s an estoppel and why do I need one?
If you live in a neighborhood that has a Home Owners Association with required fees, you’re going to need an estoppel. An estoppel is a statement from the association that proves to the title company that you’re current on your dues and that there are no past due fees or penalties. The title companies require that evidence because the HOA can actually put a lien on your house. It is the title company’s job to insure to the buyer that the house will be sold to them free and clear, so the title company needs to make sure that the HOA isn’t able to make a claim against the property after the sale goes through. In Florida, the HOA/Condominium Association estoppel fees are the seller’s responsibility per the most commonly used versions of the sales contract. If the estoppel fee is a sticking point for you, it is something that you can negotiate up front with the buyer. Once the contract is signed, it may be too late to change that responsibility. Most estoppel fess are in the $200-$500 range with the possibility of added fees if the order needs to be rushed. Typically, the title company will take care of ordering the estoppel after speaking with you to collect your payment details.
Q: When can I shut off the power and water at the house?
We recommend keeping the power and water accounts on at the property until the buyer’s final walk through is complete. That’s because the buyer is likely to need the power to be on for a property inspection in order to test equipment like the air conditioning, kitchen appliances, and the electrical system in general. They will also expect the water to be on in order to make sure that toilets, sinks, washing machines (if included in the contract), and irrigation systems all work properly and that there are no active leaks in the plumbing. The appraiser may also require that the power and water be on in order to make sure that the property meets the lender’s condition requirements. A less obvious reason to keep the water and power turned on revolves around your responsibilities as the seller to maintain the condition of the property. For example, if you have the water and the power turned off in the summer, and the lawn burns up and dies with the sprinklers turned off while you’re under contract with a buyer, you may owe your buyer a newly sodded lawn before closing. Or, if you turn off the power and there is no AC in the house, and it starts to develop mold as a result of that heat and humidity, you could have a serious problem on your hands. Finally, most buyers simply expect to be able to conduct their final walk through of the property with adequate light and the ability to actually confirm that you’ve met the property maintenance requirements of the contract. Simply put, they want to know that they’re getting what they think they bought, and that can be tough to do in the dark.
Q: What if I can’t be in town for the closing day?
While virtually all of the paperwork up until the day of closing can be signed electronically from the comfort of your couch, you’ll still need to put pen to paper on the actual closing documents. That doesn’t necessarily mean that you’ll need to be at the title company on the exact day of closing when selling your home though. With a little advance notice that you won’t be able to attend in person, you can usually work out one of several alternatives. Many of our selling clients choose to come in a day or two before the contract closing date. This way, they can come in separately from the buyers and take advantage of the fact that the selling side of the closing paperwork is considerably quicker than the buying side and all of its related mortgage documents. Then, when the buyer is finished with their paperwork, the closing proceeds can be either wired directly to the seller’s bank account or the title company can contact the seller to let them know their check is available to be picked up. If you’re selling an investment property or you’ve already moved out of the area before the closing, however, you may need to consider a couple of additional alternatives. One of the most common is the mail-away closing. When the title company agrees to a mail-away closing, they will usually email the closing paperwork to the seller for the seller to print out and take with them to a notary. Once the documents are signed and notarized per the title company’s instructions, they must be sent back to the title company by overnight courier. It’s also possible, depending on exactly where you’ll be for the closing, to have a mobile notary bring the paperwork to you so that they can witness and notarize the documents and return them to the title company for you. The mobile notary option does typically carry an additional fee for those services.
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