Tag: Seller Articles

Who Pays the Commission?

Posted on by Julie Tsai

Who Pays the Commission?

 

The Seller

In many cases, the Seller has signed a listing agreement with his agent specifying a certain fee to be paid for selling the home.  It can include provisions for splitting that fee with the selling agent, regardless of agency representation.

 

The Buyer

In some cases, the Buyer pays his agent a commission as set out in their written agreement.  If the buyer pays his agent from his separate funds, it would not be appropriate for the buyer’s agent to also accept part of the fee paid by the seller.

 

Indirectly, The Buyer Does

However, an argument can be made that the buyer indirectly pays the commission even if it comes from the seller’s proceeds.  The assumption then is that the buyer could have bought the home for less by dealing directly with the seller.  By having an Realtor handling the transaction the buyer is protected in many way that he or she would not be with out a professional real estate agent: disclosure and representation of all known facts related to the property and to the details of the transaction; applying the neutral negotiating skills of the realtor which can frequently result in a better price and/or terms for the buyer, among many others. (Julie, you may want to list more, but these two may be enough).

The professional realtor provides oversight and compliance with the proper steps of the real estate contract, from start to finish, by both parties.  In short, your interests are better represented and protected.

 

The Client Determines How the Agent is Paid

The seller agrees to pay his agent in the listing agreement and the sub-agent of the seller who sells the property.

 

The buyer agrees to pay his agent if buyer agency is elected.  In some cases, the buyer directs his agent to try to be paid from the seller’s proceeds.

 

Each party pays their agent as specified in their written agreement.

 

What Does it Really Mean? Real Estate Terms Defined

Posted on by Julie Tsai

What Does it Really Mean? Real Estate Terms Defined

If you are thinking of buying or selling a home, chances are you’ve come across a lot of real estate terms or jargon. Some of these terms seem self-explanatory, but lots more are confusing. To help you out, below are a few commonly used terms and their down-to-earth explanations:

Bridge Loan: Typically a short-term loan that is designed to provide the cash for a buyer to purchase a home before the current home is sold. The equity in the present home is used to secure the loan. Bridge loans are becoming increasing popular because of the fast-moving dynamics of the Midpeninsula real estate market.

Comps or Comparables: This is a term that describes comparable properties that are used in determining the sales price and appraisal price of a home. Recently sold properties that are similar in location, lot size, home size, home age and amenities are analyzed to come up with an estimate of value of the home for sale. To set the “for sale” price of a home, the seller’s agent will do a Comparative Market Analysis (CMA) to determine a fair market price.

DOM: Days on Market. This can be confusing because when exactly do you count the beginning and end of a sale? The clock starts ticking the moment that the property is listed on the Multiple Listing Service (MLS) (link to MLS here) and ends when an offer is accepted. The closing of escrow (define below), however, may take longer. The DOM clock is reset when a home is withdrawn and relisted later (although the MLS will record all of this history). The DOM is an indicator of how in-demand a certain property or geographical area is.

Earnest Money or Good Faith Deposit: Upon acceptance of an offer, this is the money that the buyer gives to the seller to demonstrate that the buyer is serious about following through with the purchase. Earnest money is usually between 1% and 3% of a home’s purchase price. The amount and timing of the earnest money is usually indicated in the buyer’s offer. When the sale goes through, the earnest money is applied against the down payment. If the buyer decides not to go through with the purchase for reasons not covered by a contingency, the seller is often entitled to keep some portion or all of the earnest money.

Escrow: During the process in which the sale of a property is finalized, a neutral third party (not the buyer or seller or their agents) will keep all funds, documents and other materials necessary for the sale in their possession. When the sale is finalized, also called the close of escrow, the assets are handed over to the appropriate parties, as previously specified in a legal agreement. The escrow process is designed to protect both the buyer and the seller in real estate transactions.

Non-Contingent Offer: An offer to purchase a property without any contingencies at all. Once the seller accepts the offer, the buyer is obligated to follow through with the purchase. In a strong real estate market, sellers prefer, and often can obtain non-contingent offers, which greatly shorten the sales cycle and risk for a seller.

Off-market, Private or Pocket Listing: These are homes that are listed for sale with a real estate agent, but not publicly advertised or registered on the Multiple Listing Service (MLS), which is the primary medium for communicating information about houses for sale among real estate agents. An off-market listing limits the pool of buyers, but offers other benefits to sellers, including privacy, reduced preparation time and costs and an ability to test the market before publicly listing.

Pre-qualification and Pre-approval: Pre-qualification is the process that a lender goes through to estimate how much money a prospective buyer can borrow to purchase a home. The estimate is typically based upon self-reported information and is not binding. In contrast, when you have a pre-approval, a lender has done an extensive check on your financial background and current credit rating. The lender then provides a conditional commitment in writing to make a loan for a specific amount, sometimes at a specific interest rate, for a specific time period. A pre-approval is much more powerful than a pre-qualification when making an offer in a competitive market.

 

There are many terms that are second nature to real estate professionals, but may be confusing to consumers. Please contact me if you have any questions, and I’d be happy to explain them to you.

房地產术语的含义

Posted on by Julie Tsai

房地產术语的含义

 

假如你正在考慮購買或出售一处房产，你一定會遇到了很多房地產術語或行話。 有些術語似乎可以不言自明，但大部分會让人十分困惑。為了帮您排憂解難，下面 是一些常用的術語及其简单易懂的解释：

 

过渡性贷款： 通常情況下，这是专门为房主出售现有房产前购买其它房产时提供资金。將目前的房屋用於擔保貸款。由于MidPeninsula的房地產市場十分火热而且变化很快，因而过渡性贷款变得越来越受欢迎。

 

房屋买卖历史对比：这个术语用于描述在確定房屋銷售價格和房屋價格評估时對比类似房产的價格 。最近售出的在位置，住房面积，家庭規模，房产年齡和生活福利设施方面類似的房产，将其信息收集分析来确定评估價格其它类似要销售房屋的价格。要設定一处房产“出售”的價格，賣方的代理人将会做出市场调查（CMA）通過比較分析 來確定一處房產的合理市場價格。

 

DOM：在市时间。這可能會造成给你造成困惑，因為如何才能精确的计算一次銷售行为的開始和結束时间呢？开始时间是該物業被列到多重上市服務系統（MLS）（在这里可以鏈接到MLS，當報價被接受时即视作結束。托管结束（定義見下文），可能需要花费更長的時間。上市时间（DOM） 在这栋房屋重新掛牌後会重置（雖然MLS將記錄这栋房屋所有的交易歷史信息）。DOM是衡量特定財產或地理區域的实际需求的一個指標。

 

保证金也叫信用保证金：用於買房者接受報價之時，這些錢是買方給予賣方以證明買家對此項交易的認真和重視。保證金一般為一棟房屋出售價格的1％-3％。保證金的金額和時間通常會標示在買家的報價信息中。當交易完成時，保證金將用於支付首付之上。如果買方在報價之後決定放棄此次購買行爲，且並不是因爲突發事件，賣方往往是有權保留部分或全部保證金。

 

第三方托管： 在物業销售完成前，中立的第三方（既非買方代理商也非賣方代理人）將暂且保管所有的資金，文件以及完成此项交易的其它材料。當銷售完成，也叫托管结束，資產将会按照事先确定的有法律效力的合同条款分别移交给买卖双方。託管流程的目的是在在房地產交易过程中保護雙買方和賣方的利益。

 

無條件的報價：一旦報價被賣方接受就必須無條件買下房產。這就意味着一旦賣方接受該報價，那麼買方就有義務貫購買那棟房產。在房地產市場較火熱的時候，賣家比較喜歡這種無條件報價，因爲這種方式會極大的縮短了整個銷售週期並且降低賣方的風險。

 

場外市場，私人或口袋交易： 這些房产只是在房地產代理商处售卖，但沒有公開宣傳或在多重上市服務系統（MLS）登記，這是房地產經紀人交流有關房屋出售信息的主要媒介 。場外市場掛牌限制了买家的规模，但是给卖家带来了很多好处，包括隱私，減少準備時間和成本，在公開上市之前測試市场反响。

 

資格預審和貸款預批：資格預審 是貸款人用來估算有意的买家的借貸能力的一種過程。此類評估主要基於買房方提交的個人信息，因此並不具有法律約束力。相反，當你有貸款預批 ， 這就意味着貸款人通過仔細廣泛的核查已經了解了你的財務背景及目前的信貸評級。之後貸款人就會給你出具書面的有條件的承諾書，發放一定數額的貸款，不過貸款利率在不同時間都會不一樣。在競爭激烈的市場中，貸款預批往往要比資格預審有用得多。

 

雖然有許多术语对于房地產專業人士非常简单，但可能會讓消費者一头雾水。如果您有任何問題，請與我聯繫，我很樂意为你解释。

Preparing Your Home for Sale

Posted on by Julie Tsai

Preparing Your Home for Sale

 

Q: We’ve been living in this house for decades. We have so much stuff that we need to go through and get rid of, and there’s a lot of work that needs to be done to the house. We don’t know where to begin. Can we really get our house ready to sell in a reasonable amount of time?

 

A: Great question! A lot of sellers are in the same situation as you. I can help you make a plan to sort through your belongings and get the necessary repair work done quickly. I have long-term relationships with preferred, reliable vendors who can help you with everything from deciding what to keep and what to give away, to painting, electrical work, plumbing, landscaping—everything you need to get your house in shape and ready for the market.

 

Q: We know that we will need to do some work on the house and yard before we list it, but we don’t want to spend a lot of money. How do we decide what to do and what to leave alone?

 

A: It’s important to understand what you can do for the least amount of money that will have the biggest impact on your home’s desirability. Sometimes simple, inexpensive fixes like de-cluttering, a fresh coat of paint, replacing lighting fixtures, or planting a few flowers can have a big effect on buyers’ impressions. I have over ten years of experience working with sellers and helping them determine how they can get the most for their money when preparing their home for sale. I also have extensive experience helping clients with remodeling and construction projects.

 

Q: Our home is pretty dated. Should we undertake any big projects like a kitchen renovation? We’ve read that’s an area that can add lots of value when selling your home.

 

A: It depends. We need to take into consideration exactly what condition your kitchen is in and how much it would cost to re-do it. While it’s true that the kitchen is an important feature to most homebuyers, in many cases, a complete remodel of a kitchen doesn’t return your investment. But less expensive cosmetic changes, like repainting cabinets and replacing knobs or replacing old appliances with new ones can give a kitchen a whole new look for a fraction of the cost of a complete renovation.

 

Q: Is it really necessary to stage the home? That sounds expensive.

 

A: Again, it depends. While staging isn’t always necessary, we often recommend staging to show the home off at its very best. Studies have shown that buyers make decisions about a home in the first six seconds of seeing it, so we want to make sure that we make the best first impression we can. I work with a variety of stagers, with a range of styles, that are can offer very cost effective services. And the good news is that in a fast-moving market like the one we are currently experiencing, the home will only need to be staged for a brief time.

Q: Anything else that we need to know about preparing our home for sale?

 

A: Every home is different and each home has different preparation needs. A large value that I bring to my clients is my experience in knowing what needs to be done to prepare a home for sale and helping them get the best deal from reliable vendors who will do the job well and on time. I’d love to meet with you and give you a no-obligation consultation on how you can best prepare your home for sale.

 

 

High Service: We Know the Problems, How to Solve them and We Do it All for You.

 

We work hard to make the sales process easy for you. There can be a lot to do to get your house ready to sell, and getting it all done quickly and for a reasonable price can be a challenge. That’s where we come in. Need help finding a handyman, or someone to help you organize and move 40 years of stuff? We’ll not only give you referrals, we’ll get estimates, schedule the work and make sure that it gets done.

 

Home Walkthrough

 

Show us the state of the property, identify areas that have the most potential, areas that need attention and what work is needed to make the property look as good as possible.

 

Inspections

 

Order and schedule relevant inspections: property, pest and pool.

 

Staging Consultation

 

Evaluate staging needs and get bids and timetable from professional stager(s).

 

Improvement Assessment and Bidding

 

Evaluate home and landscape improvement needs, get bids and schedule work.

 

Buyers form their first impression of your house in six seconds. Whether that first contact is online or in person, it’s important to get it right.  We know the difference that aesthetics makes in buyers’ eyes. We expand the buyer pool by making the house ready to move into and adding touches that win over potential buyers.

 

Insert Graphic: Impact of Home Preparation on Buyer Demand

 

Based on the target buyer we identify, Dreyfus recommends a custom plan to get your house ready to sell. We are keenly aware of trends and what potential buyers are looking for. We don’t take a vanilla, one-size-fits all approach like other agents. We recommend different stagers and home décor to make your home look distinctive and stand out from other properties on the market.

 

Worried about how to get it all done in a short amount of time for at a price you can afford? Leave it up to us. We have long-standing relationships with proven, dependable, crews of contractors, plumbers, electricians, painters, landscapers and stagers who can transform your house on time and on budget.

 

New ADU Housing Bills Could Add Value To Your Home

Posted on by Julie Tsai

New ADU Housing Bills Could Add Value To Your Home

 

In order to help alleviate the housing crisis, the California State Legislature recently passed a series of bills aimed to facilitate the addition, or new construction, of accessory dwelling units (ADUs), also known as ‘granny flats,’ ‘in-law units,’ ‘guest apartments,’ etc.

The most common uses for ADUs are:

    • Housing grandparents and older parents independently
    • Bonus space for older kids
    • Low-cost housing for adult children
    • Space for a home office or studio
    • Private accommodations for guests

  • Efficient quarters for single or empty-nester homeowners

 

  • Long- or short-term rental income

Adding an attached or detached unit to an existing single-family dwelling, prior its sale, is something homeowners should consider. This is a way to increase their property’s value, while it also can enhance a home’s profile and price-point before it is brought to market. In rough terms, the addition of an ADU with excellent rental potential could increase the value of a Bay Area property by hundreds of thousands of dollars.

“As states and cities relax zoning laws,” reports Diana Olick for CNBC, “auxiliary dwelling units are cropping up and fast becoming big business for homeowners.”

But before deciding on breaking ground, homeowners should consider these factors:

  1. ADU regulations may vary by jurisdiction. Click here for specific rules in your area, or visit the webpage for your city’s planning department.
  2. Upfront and ongoing cost. On average, a detached ADU can cost more than $100,000 to build and outfit. An attached ADU is liable to cost upwards of $40,000. It’s possible to finance these costs with a secured loan, but that requires you to shell out several hundred extra dollars per month. If you’re not planning to rent out your ADU or sell your property soon after construction is complete, your household’s cash flow needs to be sufficient to absorb this added monthly payment.
  3. Higher property taxes. Adding an ADU to your property raises its value which results in a higher property tax bill. This added cost must be factored in your calculations.
  4. Greater maintenance load. More square footage means more maintenance. Whether you rent out your ADU to a long-term tenant, list it on Airbnb, or keep it as a studio or bonus space, it’s your property. And that means you’re responsible for keeping it in good (or at least acceptable) shape. Home maintenance costs vary significantly depending on a home’s age, size, configuration, location, and other factors. It’s true that newly constructed ADUs are likely to be cheaper to maintain than sprawling older homes. Still, maintenance costs can add up over time. Homeowners should budget roughly 1% of the value of their home for maintenance and upkeep. That’s $1,000 for a $100,000 ADU.
  5. Security recommendations. Detached ADUs that sit vacant for long periods can be particularly vulnerable because of their distance from the hub of activity at your main house. At a minimum, you’ll want to install motion-activated floodlights. External cameras aren’t a bad idea either.
  6. Potential for conflict with neighbors. ADUs can upset neighborly relations, especially in smaller towns and quieter neighborhoods. Even if you’re not required to do so by law, it’s not a bad idea to keep your neighbors looped into your ADU plans before and during the construction process, just so everyone is on the same page.

Building an ADU is an almost near-certain way to boost the resale value of your home. But even if you are not interested in undertaking such a project, determining the feasibility and potential of adding an ADU to your home can be an attractive feature for potential buyers. It makes a solid financial reason to negotiate a better price.

 

在Mid-Peninsula出售房产您最需要知道的5件事

Posted on by Julie Tsai

5 things you need to know about selling a property in Mid-Peninsula

 

# 1 This is a global real estate market – there are different sizes and types of properties.

 

We have all heard the sensational stories of wealthy international buyers buying luxury homes. (The following is the URL link for Los Altos property sales http://blog.sfgate.com/ontheblock/2011/03/31/100-million-dollar-los-altos-home-breaks-record/), but here are various The price of the home is mainly for foreign buyers, who are interested in having a foothold in Silicon Valley. The number of buyers who buy apartments in the United States, townhouses and medium-sized family-style single-family homes is increasing.

 

If you want to sell your property to the entire market, you need a broker who knows the international market. Your broker must know how to reach potential buyers around the world, how to communicate with them, and must understand their values ​​and business practices.

 

# 2 After you list your property for sale, you may need to move out of it.

 

In the old real estate market, when you list your property for sale, you need to find a new property to buy. Once you have found your favorite home, you will coordinate the time difference and make a quote based on the sales of your current property so that you can make a smooth transition from one home to the next.

 

Nowadays, many sellers, especially those living in high-end real estate, need to move some houses before they sell the property and renovate them for sale, which makes the room light the best. Because we are in a seller’s market, houses may soon be sold. During this period, the seller can take an extended holiday, live in a temporary home or get a bridge loan to purchase a new home before the sale.

 

# 3 If you want to monetize the property of your house now, but are not ready to move, there is a solution here that may be easier than you think.

 

I know this seems to be at odds with my previous statement, but let me explain. Although house prices have soared, there is still a big inventory digest problem. This is partly because, although some homeowners are eager to make the real estate appreciation they have gained, they are still not ready to move.

 

The good news for those homeowners is that some investors are only interested in real estate on the market, but they are not planning to live there. For these investors, it is undoubtedly ideal for them to buy a house and then rent it to the former owner. In this way, they can save the cost of advertising, and also avoid the trouble of showing the house to the tenants. After the third-party hosting of the house transaction, they can collect the rent as quickly as possible.

 

These investors will often be happy to rent the house for you for a year or more. In this seller’s market, even those who want to move into the house quickly may be willing to rent the house to you for a few weeks or months so that you can get your child to complete the school year or have enough time. Looking for another home.

 

# 4 Although the emergence of the Internet makes it easier for ordinary people to access the real estate market, it is still important to find an experienced, qualified real estate professional to help you sell.

 

A recent study shows that the size of homeowner self-sales (FSBO) has actually declined, and in the past decade, more and more sellers realized that they could neither save money nor give them money by selling them. save time.

 

According to the 2013 National Association of Realtors’ home buyers and sellers, the proportion of “homeowners selling” has been declining, and has fallen by 5% in the past decade, from 14% in 2003 to 2013. 9%. Except for the ratio of transactions between acquaintances in real estate sales or buyers directly contacting the seller, only 6% of the recent sellers did not rely on the help of any real estate agent to reach a deal.

 

Even if it is currently in the seller’s market, the sale of a house requires not only a sign on the lawn, but also waiting for the buyer to come to the door. To successfully sell a home at the best price requires a specialized marketing and pricing strategy (click on the link in the pricing strategy column for specific information), local, national and global exposure capabilities, and experienced negotiation skills. Only legal knowledge is available from experienced real estate professionals. The more competitive the market, the more you need a professional who knows the complexities of the market, and they can use their expertise to build an edge for you.

 

# 5 is now the prime time to sell real estate!

 

Property prices in the MidPeninsula area and surrounding cities are now at their highest point. In some cases, the price paid by the buyer is a bit exaggerated. However, interest rates are still relatively low (but slowly rising). So now the sale can make a lot of money, and the supply is still unable to catch up with demand.

 

Although the price of the property seems to continue to rise, our experience tells us that this is not the case. The development of the real estate market has its operating cycle. Its price will rise slowly, then reach its peak and then fall, sometimes even falling by more than 20%. Then the amplitude will gradually flatten and eventually rise again. But it is estimated that it will take about five years from the price drop to the peak. Trying to speculate on the direction of the market is very dangerous. If you are wrong, you may lose a lot of money. If you are considering selling your property in the next few years, now is probably your best chance!

Is an Off-Market Listing Right for Me?

Posted on by Julie Tsai

Is an Off-Market Listing Right for Me?

 

A trend we are seeing more often in Mid-peninsula real estate sales is the off-market, or private listing. These are homes that are listed for sale with a real estate agent, but not publicly advertised or registered on the Multiple Listing Service (MLS). The MLS is the primary medium for communicating information about houses for sale among professional real estate agents.

 

In the case of off-market listings (also sometimes called “pocket listings”), there are no splashy newspaper ads and no open houses. Instead, the seller’s agent quietly informs her network of agents and potential buyers about the availability of the property. The means of getting the word out can be very sophisticated, including marketing to private lists of potential buyers who have recently had liquidity events and password-protected websites displaying the home. The emphasis is on quality dissemination of information, not quantity.

 

This type of sale may seem counterintuitive. Wouldn’t you want to get the information about your home out to the largest number of agents and potential buyers? Although an off-market listing limits the pool of buyers, there are several benefits that are attractive to certain types of sellers.

 

Why you might want to list your house for sale privately

 

#1 Privacy

 

When you list your home on the MLS, every detail about it is available publicly for the world to see. Your address, your floorplan, photographs of the interior and exterior, and, most important to many sellers, the price of the home can be seen by strangers, relatives, co-workers and nosy neighbors. Open houses provide opportunities for these same people to wander through your house and inspect every aspect of it—from your decorating style to the contents of your closets. The lack of privacy inherent in the public sale of a home is so distasteful that some sellers, especially those who are living in their home while it’s on the market, prefer to sell their homes privately.

 

#2 Showings to Buyers Who are More Qualified

 

By eliminating open houses and public information about the house for sale, it is available to see “by appointment only.” The seller’s agent only contacts buyers for whom the house is a good fit financially and otherwise. Real estate agents who are contacted are encouraged to only bring qualified buyers who are a good match for the property to view the home—no looky-loos.

 

#3 Less Preparation and Associated Costs

 

Many sellers who list their homes privately choose to do little in the way of preparation or staging of their homes before putting them on the market. This can be an advantage when selling to buyers with very specific tastes who may prefer to do their own renovations after their purchase.

 

#4 A Way to Test the Market on Price Before Publicly Listing

 

Some sellers put their house on the market privately to test the market, thinking that they can always list it on the MLS later if it doesn’t sell. This enables them to set a higher than market price and see if a buyer bites. If the house doesn’t sell at that price, they can then adjust the price downward without the stigma of having the home lingering on the public market.

 

Why you might not want to list your house for sale privately

 

Despite the many benefits of an off-market sale, there is one big potential downside. Due to decreased competition among buyers, you may receive a lower sales price than you would have if you had listed it publicly. Recently two real estate agents in San Francisco compared prices of off-market to MLS-listed homes that were sold in 2013. They discovered that single-family homes that were publicly listed sold for an average of 17% more than homes that were privately marketed. The difference for condos was 9%.

 

In summary, there are many factors that go into the decision of whether to list a home publicly or privately. An experienced, knowledgeable real estate agent will be able to help you analyze your options and make the best decision for you.

.

JULIE TSAI LAW REALTY GROUP

JULIE TSAI LAW

650.799.8888

JULIE@JULIETSAILAW.COM

DRE #01339682

KRISTIN TSAI

408.605.80000

KRISTIN@JULIETSAILAW.COM

DRE #01294153

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