Updated: Sep 28, 2022
The selling process can vary from sale to sale, but typically the sale process looks like this:
1. OBTAIN MARKET ANALYSIS
In my first interaction with potential Sellers, we talk about their goals and their building(s) so I can prepare an informed market analysis. This includes income and expenses, capital improvements, and more. In my second meeting, I deliver and explain the Comparative Market Analysis - which educates the owner and allows us to determine the right list price.
2. HIRE AN AGENT
Signing a listing agreement is an exciting time for an owner! You give the agent your commitment to sell for a certain price, and that allows the agent to begin working for you exclusively. When hiring an agent, it's important to hire a market expert familiar with your area, and someone experienced in selling the type of property you are listing.
3. LISTING AND MARKETING
After you sign the Listing Agreement, the fun begins! Our team will prepare the digital and print marketing for your property. This involves hiring a professional photographer and creating a customized marketing package, website, postcards, etc. I also reach out to the top Buyers letting them know about the sale. Each property has its own individual marketing plan, which will determine if and when we put the property on the market, have a sign, showings, etc.
4. RECEIVE BUYER FEEDBACK
Once the most likely Buyers review your listing and give us feedback, we will have a good idea of how the overall market will respond. We can adjust if needed before hitting the market, or respond to offers! Depending on the type of property being sold, showings, an open house, or a best and final walk-through may be suggested. Potential buyers may have questions or want to review certain info before submitting an offer.
5. OFFERS AND NEGOTIATIONS
When we receive an offer (or offers!), a Seller can either 1. Accept the Offer, 2. Counter the Offer, or 3. Reject the Offer. This process may also involve negotiating price, terms, and contingency periods. If there is more than 1 offer, we can issue a Multiple Counter Offer, which allows the Seller to negotiate with multiple Buyers at the same time. Generating multiple offers is always my goal, as it puts the Seller in a better negotiating position.
6. OPEN ESCROW
Once we have an accepted offer, we send the signed contract to an escrow company (neutral 3rd party) that will coordinate the title and any loan, hold the deposit, and handle the transfer from Buyer to Seller. This process can take anywhere from under 2 weeks to over 2 months, depending on the type of property and transaction terms. Don't worry, we're in this together and I will be there with you every step of the way.
7. BUYER'S DUE DILIGENCE
After the Buyer wires his deposit into escrow, he can begin his due diligence. This includes a physical inspection, reviewing leases and estoppels, expense info, sometimes a Phase 1 environmental report, getting an appraisal and loan approval, and more. There are various contingencies that the Buyer will have to remove, and after all contingencies are removed the escrow is considered "non-contingent."This is when you know you have a solid deal - congrats!
8. CLOSE ESCROW
There are many things that fall into place during the escrow, and it's always a team effort to get to the finish line. This is what the last few days look like: If the Buyer is getting a loan, escrow receives the loan docs, Buyer signs the docs with a notary, wires the down payment, the loan is funded, and then escrow records. Each step usually takes at least 1 day.If there is no loan, the Buyer wires in his final funds and escrow is set up the close (aka record) the next day.Yay!