Selling your Home FSBO and What to Expect
When an interested buyer wants 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 homeowners to imagine themselves living in a particular place when the current resident is still inside. You will have to work with any potential buyers and the real estate agents 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. You will do everything you can to work with their schedules to help you sell your property quickly, which is your ultimate goal.
TIPS TO KNOW AND OTHERS TO AVOID
- Are you too busy with Working full time AND Family commitments.
- Forms – They can be overwhelming daunting – yet they are very necessary to ensure that the property & title are marketed & transferred correctly, without future after the sale liability or litigation.
- Working with interested potential buyers and/or their agents – can be uncomfortable, unpleasant, time consuming and even intimidating . A Hawaii Real Estate Agent saves your time and creates a barrier.
- Do you have the Time – Time Spent keeping the property always ready to show is a big adjustment to you and your families time and schedule. Adding to this, the tasks of phone calls, emails, verification research , showings, Inspections etc. will absorb a lot of your “free” time.
- “Guessing” or “Estimating” when selling real estate “guessing” or “estimating” is NOT recommended. You always should verify all the details of the property you are selling BEFORE sharing with an interested party. You will have to do your own research for County and State real estate laws, rules & regulations.
- Contacting Experts on the subjects you are not clear on – is most advisable, and may avoid future problems/issues. If it is expected of you as the seller to provide a specific piece of information, Just saying …”what you think or guess” can cause you problems that may involve legal costs, and it can really get you into hot water, so don’t do it – say you don’t know – spend the time and money to get the correct answer. Make sure you are providing truthful correct information.
- Beware of a overly “Savvy Buyer” – who tells you he will handle everything-because he has done this before! (Wholesaler)
BE AWARE OF WHOLESALER’S!
Wholesalers have attended those “Get Rich Quick” Buy and Sell homes scheme seminars and try to buy and sell using Other Peoples Money, that does not work here in Hawaii.
Wholesalers approach homeowners with a value proposition of “I will buy your house quickly and for cash.” While homeowners may or may not be aware of wholesalers’ intention to quickly resell the property (often without taking title to it themselves), the homeowner does understand that the wholesaler, like any other buyer, is trying to get the best, i.e. lowest, price he can. They try to put your home under contract, taking off the MLS and then try to resale it for a higher price on Craigslist and other websites, trying to make a profit at Escrow, this doesn’t work in the State of Hawaii.
They put a small down in Escrow, usually with a long closing date, then delay you while they try to find another buyer who will pay more, all this does is waste your time and potentially miss out on a real buyer.
Don’t fall for this time wasting scheme!
We know how to avoid this with us listing your home
with Full Service at the Same Total Cost!
When an Offer is Accepted
On a typical home sale, here’s how things will run:
❏ An offer is submitted, discussed, negotiated and accepted. (Be careful here!)
❏ The buyer submits “earnest money” that is deposited into Escrow.
❏ A title policy will be ordered on your property.
❏ A closing date will be set with the buyer’s agent.
❏ The buyer will order an appraisal and in most cases, an independent home inspection.
❏ The buyer will remove their “conditions of sale” after the appraisal and home inspection, try and renegotiate their initial offer, or remove their offer entirely.
❏ After the final offer is finalized, submit the final legal disclosures relevant to your property.
❏ You will need to complete any agreed upon repair requests before the closing date.
❏ The buyer will most likely schedule a “final walk through” to verify the condition of the property and see any agreed to repairs that were made right before your closing appointment.
❏ Closing is scheduled and completed. Your house is sold!
❏ Pick up your check from Escrow!
Buyers normally requests 10-15 business days to inspect the property from the acceptance of the purchase agreement. A professional Home Inspector is normally hired by the buyers to inspect the home, If any repairs are found that the buyer wants repaired or health and safety issues are found, ie. smoke detectors, GFCI’s needed, these items are negotiated with an Addendum between the buyer and you.
TERMITE INSPECTION AND SURVEY
Termite Inspection and a Property Survey is requested by the Buyers the Buyer’s Lender, this is normally a Seller Expense, in an all cash sometimes these items can be negotiated or waived, however you should expect these costs.
APPRAISAL IS COMPLETED
Usually 3 weeks from Acceptance Date, there isn’t anything to do as Sellers here other than schedule access to the appraiser. If the appraisal comes in below our negotiated selling price, you may be able to contest the appraisal or renegotiate the selling price. There are many options here…
TITLE WORK IS COMPLETED
The lender will order the title work on your behalf, but nonetheless, it’s an important part of the process. If there are issues with the title work, you want to know those early.
FINAL LOAN COMMITMENT
Once the above items are finalized, the lender will have their underwriting department review the file. If there are any other requirements from the lender you’ll have to accommodate. Once the conditions are met you are a go to close. You want your final loan commitment 7-10 days before close date.
FINAL WALK THROUGH
Usually occurs 3-5 days before closing to verify property is in same condition and any negotiated repairs are complete.
REVIEW THE SETTLEMENT STATEMENT
The title company will provide you with the Final Settlement Statement. Review that and make certain all of the numbers correspond with the previous worksheet from the lender.
Finally you are ready to sign on the dotted line. Bring your driver’s license, and any final docs that the lender or escrow has requested, and pick up your check.
TYPICAL SELLER COSTS (can be negotiated)
❏ K2 Survey $800.00 to $2500.00
❏ L2 Termite Inspection $150.00 to $350.00
❏ M1 HOA Documents $200.00 to $700.00
❏ Permit Documents $150.00 to $200.00
❏ Harpta/Firpta 7% if not a Hawaii Resident, 15% if not a U.S. Citizen
❏ Negotiated Inspection Repairs
❏ Escrow Closing Costs
Typical Purchase Contract Contingency Dates
These are the typical Contract Contingencies during the Sale Process your contract may have other variables.
After the Buyer has removed all of their contingencies and received their final loan approval, you should call utilities in order to stop services in anticipation of the Closing Date. You should also contact your insurance company to advise them of the real property sale.
TO DO CHECKLIST
[ ] Banks/Charge/Credit Cards/Investment Accounts
[ ] Children’s Schools
[ ] Doctor, Dentist and others
[ ] Employers
[ ] Fill out Change of Address Form with Post Office
[ ] Friends
[ ] Newspaper/Magazines
[ ] Medical/Auto/Home Insurance Company
[ ] Motor Vehicle Bureau
[ ] Notify Insurance Company
[ ] Notify Resident/Property/Association Manager of Moveout date (at least 1 week prior)
[ ] Security/Alarm Company
[ ] Yard Maintenance
[ ] Board of Water Supply Oahu 808-748-5000, Maui 808-270-7816, Hawaii 808-322-0600
[ ] Hawaiian Electric 808-5487311
[ ] Honolulu Advertiser 808-525-8000
[ ] Oceanic Time Warner Cable 808-643-2337
[ ] Hawaiian Telcom 808-643-3456
[ ] The Gas Company 808-535-5933
Sentrilock Electronic Lockboxes
We have Sentrilock lockboxes available for you. This electronic lockbox uses a pass card (available ONLY to Hawaii realtors). The system keeps track of the persons using the lockbox to enter a home and tells us when they visited. It’s very useful to have a record of visitors and provides peace of mind to homeowners! We can control who has access. We record their information so later on we know when they visited the home.
- Dual design provides one combination for the shackle and another for the key door to provide two layers of security to your property
- Choose from 10,000 different combinations
- Easy to set combinations
- Durable all metal construction with a hardened steel shackle
- Front opening style allows 5 house keys
Before you decide to take on the challenges of selling your house on your own, feel free to contact us, we offer Full Service Listing for the SAME TOTAL COST with us doing all the work, for the same price as you trying to sell your home yourself, think about it, same price and we do all the work…
We at the Hawaii Real Estate Team are intimately familiar with all the local and state laws that govern residential transactions in the State of Hawaii. This is not a small thing – making mistakes in preparing paperwork, researching encumbrances, drafting contracts, understanding contingencies, CCRs, and complying with disclosure laws on everything from mold to lead paint can cost you thousands — and can even kill a sale.
We also split our commission with any buyer we represent, and use this in secondary marketing in the form of offering a 50% Buyer Rebate of the Buyers Agent Commission, at no additional cost to you. This allows us to use the buyers rebate in our enhanced advertising to make your property even more attractive to potential buyers.
Have us sell your property for the same total cost!
Contact us if you want to discuss this option.
©2019 Hawaii Real Estate Team