Rudy Molinet, Broker-Associate
Royal Palms Realty
933 Fleming Street
Key West, FL 33040
Selling your property is one of the most important transactions you will ever make, so it is important to choose the right Broker to market your property.
No One Can Sell Your Key West Home Faster Than Rudy Molinet!
We have developed a marketing strategy specifically targeted to those looking for residences in Key West. Our services to those selling include a:
- Customized Marketing Plan
- Personalized Attention to Your Listing
- International Internet Exposure
- Virtual Tours
- Strategic Media Placement
- Targeted Mailings
- Realtor Network Exposure
- Multilingual Staff
- Broker Open Houses
Selling Your Own Home
As an alternative to working with an experienced Realtor, you might consider selling your home yourself. If you choose this option, be prepared for a lot of work. It can and has been done, of course, but if you don't have the time and energy to commit to it, this option might not be for you.
The following is a checklist to help walk you through the process:
Know your property. If you aren't already, become familiar with such facts about your property as property taxes, zoning, lot size, square footage, etc. Look at the terms of your existing loan.
Research the current market & property laws in your area. How much are properties similar to yours selling for? What are the terms of the sales? What property disclosure laws do you need to take into consideration?
Set the price. Once you know the specifics about your home and have checked out what similar properties in your area are selling for, set a realistic price.
Determine financing alternatives. Contact lenders in your area to determine what the options are for your prospective buyer. You want to be informed before they ask, or your lack of knowledge may turn them off from dealing with you.
Perform a "walk-through" of your property. Look at it from the perspective of both the prospective buyer and the inspector. Take notes on all items that need to be repaired or replaced. Things to consider include:
- From the street, is the house appealing? This is called "curb appeal".
- Does it need a new coat of paint (either because the old is obviously "old", or because of an uncommon choice in color that might turn off prospective buyers)?
- If a house, is the lawn & landscaping attractive and well-kept?
- If it's a condo, you can't do much about the building, but is the front door (and balcony, if there is one) appealing?
- Are the windows and doors attractive and in good repair?
- Is the roof (and the gutters) in good repair?
Know your neighborhood. Most prospective buyers will want to know about the local schools, shopping, parks, transportation, etc. Be prepared so you can knowledgeably answer their questions.
- Are the interior paints & finishes in good condition (recently updated), or do they need to be freshened up? This is one area with the best ratio of least expensive to most desired. For a minimal investment, you could possibly make or break a sale by having your home look well-kept and inviting.
- Are the appliances in good working order and of recent vintage?
- Are the plumbing and electrical systems in good repair?
- Are the carpets or other floor coverings clean and in good repair? Like the paint, attractive and well-kept floor coverings are worth paying for so that your home makes a good impression.
- Are the sealants (sink, shower, tub, windows) in good condition?
- Are all light fixtures working properly, and is there good lighting in each room so that prospective buyers won't think you're hiding something in the dark?
**Make all repairs noted in your inspection.
Establish a marketing budget. How much are you willing to spend to sell your house?
Investigate the real estate sections of local newspapers and other publications. Which will get you the most "bang for your buck?" Are there "throwaway" (i.e., free) real estate publications in your area that accept ads from individual sellers? In the local paper(s), is it better (in your area) to run a text-only classified, or do they have "photo boxes" where you can run both text and a photo of your property? Don't forget the Internet. See if you can get your home listed on a website that features local properties. Some newspapers automatically (or for an extra fee) offer Internet advertising tied in to their traditional print ads. Learn the rates and deadlines for each publication, then decide which one (or more) is best for you and your market.
Establish a marketing plan. Now that you know what advertising will cost, create a plan on how to best (within your budget) reach prospective buyers, both local and out of town. Since many people do relocate from a distance, be sure to include Internet advertising in your plan. If your town is large enough, the "local" newspaper might have a national edition that you want to place your ad in, at least periodically.
Write the text and/or design your ad. At the least, you will need a well-written few sentences that will run as a classified ad or a photo box ad. In addition, you might decide to run a larger, custom-designed ad in the paper and/or to use as flyers to hand out at open houses (or anywhere else you might meet prospective buyers). Don't skimp on this. A professional, well-crafted ad can attract buyers while a poorly designed and executed one can turn buyers off to your property.
Clear your schedule. Make arrangements so that you have free time to schedule appointments at the prospective buyer's convenience, as well as for any "open houses" that you hold.
Purchase and install a "for sale" sign. . This should be well-designed, attractive and weatherproof. The sign must be placed where it can clearly be seen from the street.
Prepare a fact sheet. Design a single sheet description of your property listing the features and benefits that will draw in prospective buyers. This should be attractive and professional looking. Have enough copies on hand to give out at open house showings.
Purchase "open house" signs. Make sure that they include a place to write the address of your property and the date/time of the open house. In addition to one for the front yard, you'll want to place several in conspicuous locations around the neighborhood, such as main streets leading to your house. For these, directional arrows can point prospective buyers to your house even if they don't know the area. Make sure that you take these signs down as soon as the open house is over. You don't want people showing up on your doorstep at all hours of the day and night.
Set up a schedule of open houses. While most are held on the weekend, this is not convenient for all buyers. Make sure that you coordinate your print advertising to include information about your next open house.
Keep a list of prospective buyers. As people come through during open houses, or as they call from reading your ads or seeing the sign out front, keep a list with their names & phone numbers. Concentrate your attention on those who seem serious about your property, as opposed to those who are just checking out the neighborhood or whiling away a Sunday afternoon. Make sure that you make follow up telephone calls to all those who seem seriously interested in your property.
Once you have an offer, it's time to negotiate. Leave your emotions behind when you enter negotiations. You never want to get angry or give away the fact that you're overly eager.
Get your forms in order. A number of forms are required for the legal sale of your property. In addition to the contract of purchase and any counteroffers, there are approximately 20 other forms that the seller is required to provide to the buyer. It is necessary to review the contract carefully to determine when these forms/documents are due and what the buyer's rights are once they receive the document. The form and content of many of these documents are prescribed by Florida or federal law and must be adhered to in their entirety. The proper forms may be obtained from your local Board of Realtors.
Negotiate final terms of the sale. With the buyer(s), come to an agreement (in writing) regarding the following:
It would be prudent for you to have an attorney review any and all contracts before the deal is finalized.
- Inspection contingencies
- Financing terms
- Date of closing
- Date of possession
Final walk-through. When both the buyers and a witness can be present, schedule a final walk-through before you complete settlement in order to determine that the property being conveyed meets the expectations of all parties involved. Resolve any disputes before the transfer of title.
Find and make arrangements for the home you will be moving to. Unless you have already built or bought a new residence, you'll need to be the "buyer" for a new property while simultaneously being the "seller" for your current one. If possible, schedule both transactions to close at the same time, or else close your purchase shortly before closing your sale. You need to be moved out before the new owners take possession.
"For Sale By Owner" involves a lot of work, and is not for all sellers. Decide before starting the process whether you feel comfortable handling all aspects ofthe transaction.
Traversing The Pitfalls of Home Inspections
June and Fred Smith were diligent about getting their home ready for sale. They ordered a pre-sale termite inspection report. The report revealed that their large rear deck was dry-rot infested, so they replaced it before putting their home on the market.
The Smiths also called a reputable roofer to examine the roof and issue a report on its condition. The roofer felt that the roof was on its last legs and that it should be replaced. The Smith's didn't want buyers to be put off by a bad roof, so they had the roof replaced and the exterior painted before they marketed the home.
The Smith's home was attractive, well-maintained and priced right for the market. It received multiple offers the first week it was listed for sale.
But the buyers' inspection report indicated that the house was in serious need of drainage work. According to a drainage contractor, the job would cost in excess of $20,000. Fred Smith was particularly distraught because he'd paid to have corrective drainage work done several years ago.
First-Time Tip: If you get an alarming inspection report on a home you're buying or selling, don't panic. Until you see the whole picture clearly, you're not in a position to determine whether you have a major problem to deal with or not.
What happened to the Smiths is typical of what can happen over time with older homes. The drainage work that was completed years ago was probably adequate at the time. But since then, there had been unprecedented rains in the area, which caused flooding in many basements. Drainage technology had advanced. New technology can be more expensive but often does a better job.
The Smiths considered calling in other drainage experts to see if the work could be done for less. After studying the buyers' inspection report, the contractor's proposal and the buyers' offer to split the cost of the drainage work 50-50 with the sellers, the Smiths concluded that they had a fair deal.
The solution is not always this easy, especially when contractors can't agree. Keep in mind that there is an element of subjectivity involved in the inspection process. For example, two contractors might disagree on the remedy for a dry-rotted window: one calling for repair and the other for replacement.
Recently, one roofer recommended a total roof replacement for a cost of $6,000. A second roofer disagreed. His report said that the roof should last another three to four years if the owner did $800 of maintenance work. Based on the two reports, the buyers and sellers were able to negotiate a satisfactory monetary solution to the problem for an amount that was between the two estimates.
It's problematic when inspectors are wrong. But it happens. Inspectors are only human. A home inspector looked at a house in Old Town and issued a report stating the central air conditioning was inoperative and needed to be replaced.
The Sellers called in an air conditioning contractor who declared that the air conditioner was working within parameters and did not need to be replaced.
The Buyers were still unsure about the air conditioner given the difference of opinions. The Seller and Buyer agreed to a call a neutral air conditioning contractor chosen at random. This third opinion was that the air conditioning was working properly and the Buyers were satisfied.
In Closing: Sometimes finding the right expert to give an opinion on a suspected house problem is the answer.
What is a CMA and Why Do You Need One?
CMA is real estate shorthand for "Comparative Market Analysis." A CMA is a report prepared by a real estate agent providing data comparing your property to similar properties in the marketplace.
The first thing an agent will need to do to provide you with a CMA is to inspect your property. Generally, this inspection won't be overly detailed (s/he isn't going to crawl under the house to examine the foundation), nor does the house need to be totally cleaned up and ready for an open house. It should be in such a condition that the agent will be able to make an accurate assessment of its condition and worth. If you plan to make changes before selling, inform the agent at this time.
The next step is for the agent to obtain data on comparable properties. This data is usually available through the MLS (Multiple Listing Service), but a qualified agent will also know of properties that are on the market or have sold without being part of the MLS. This will give the agent an idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.
The CMA process takes place before your home is listed for sale. This is a good assessment of what your house could potentially sell for.
CMAs are not only for prospective sellers. Buyers should consider requesting a CMA for properties they're seriously looking at to determine whether the asking price is a true reflection of the current market. Owners who are upgrading or remodeling can benefit from a CMA when it's used to see if the intended changes will "over-improve" their property compared to others in the neighborhood.
The Home Sale: Securing The Deal
Ready to close the deal? Maybe not.
Sometimes unforeseeable issues arise just prior to closing the sale. Hopefully, with negotiation, most of these have a workable solution. Unfortunately, this is not always the case. But don't panic. Another buyer might still be found who is willing to accept the house as is.
Imagine that your prospective buyers are a couple with young children. They envision your unused attic as the perfect playroom for the kids but, before closing the deal, they request an inspection to see if it's safe and also if they will be able to install a skylight to provide natural light to the new space.
This inspection reveals that under the shingles that are in good condition is a roof that will only last another year or two. The prospective buyers immediately balk, not wanting to incur the time and cost of replacing the roof. Their plans were to move in and only have to spend time and money renovating the attic. The additional cost of the new roof, they say, is just too much.
At this point, you sit down with the prospective buyers and calmly discuss the situation and how it can be solved to the benefit of all. First, you agree to get another professional opinion on what really needs to be done. Inspectors are only human, and are not infallible. Once the extent of the damage is agreed upon, you can jointly decide what to do about it. While the buyers hadn't planned on that expense, you show them that instead of a limited roof life that they would get with most existing homes, they'll have a new worry-free roof that won't cost them in repairs for the next decade or so. Since the roof wasn't in as good shape as you had thought, you agree to lower the purchase price to help offset the cost of the new roof.
By negotiating calmly and looking at all possibilities, what could have been a "deal breaker" can be turned into a win-win situation for both the buying and selling parties. In other cases, the most workable agreement for both parties might be for the deal to be called off. The seller can always find another buyer and the buyer can always find another home.
To protect yourself against last minute "buyer's remorse," make sure the purchase contract anticipates and closes as many loopholes as possible after all known defects have been fully disclosed.