FAQ. What we are asked frequently...

Frequently Asked Questions for Debi and Scott:

How long is the listing contract? Depends on the market. From 30-90 days.

What are the total charges associated with selling my property?  Curently in California the model has always been for the seller to pay both their agent and another agent to represent the buyer. Seems strange to me as I would think a seller would pay their representative and a buyer would pay for theirs. But, in 33 years of real estate in California, that is not what has occurred. So, with that said, under traditional methods, commissions to both agents (seller’s representative and buyer’s representative) average less than 5.0%. My transactions where I represent the seller the total commissions historically has been a total of 4%. Paying 2% to me, and 2% to the buyer's agent. Often I would represent both parties as it is easier to negotiate with only myself, the buyers and the sellers in the room. I love good old fashioned face to face offer presentation if all parties are comfortable with it. Otherwise, we can easily do digital paperwork and submit the offer online.  No one currently is paying for a home to be staged as you can have photos virtually staged if needed. If an agent offers to stage your house run! It means they don't know how to use modern digital technology! Add to this an escrow fee (roughly $1/thousand of the sales price plus a base of $350, miscellaneous costs $1000 or less.  All costs “can be” write-offs on your taxes if filed properly as an individual. 

If we find the buyer do we only pay half the fees? No, the entire  commission is earned at successful close of escrow whether there are 2 brokers representing the parties or 1 broker representing both parties. 

How long is a normal transaction selling a property? 2-6 Weeks on the active “for sale” category, home being viewed by buyers. The typical offer is 21-30 days. So, 30-60 days from start to finish if the home is priced correctly, shows well, and easy to set appointments for viewing.  A slow property would be double this. 

How long is a normal transaction buying a property?  If you have an official pre approval letter from the lender, it can be 14-21 days until you get keys.   FHA and VA loans often stretch another week. Alot of agents write the offer for 30 days. 

What “hidden issues” should I know about? The seller completed disclosures and your home inspection will reveal the key concerns of the property. If you are concerned based on initial reports, we can order second level inspections such as roof inspection, mold inspection, termite inspection, radon inspection, etc. 

If I am a seller and I change my mind and don’t want to sell, is that ok? The seller in California cannot cancel the buyer unless the buyer is not performing to the contract. The seller can be sued in court to continue the purchase. 

If I am a buyer and I change my mind and don’t want to buy, is that ok? During the buyer’s protected investigation stage, all money on deposit is fully protected and refunded if the buyer cancels. Once a buyer signs off on the inspections, disclosures and all investigations, the buyer’s deposit becomes locked into escrow and can only be released on mutual consent. 

What costs are write offs? This is a question for your tax professionals. 

Is my deposit protected? (buyer question) During the buyer’s protected investigation stage, all money on deposit is fully protected and refunded if the buyer cancels. Once a buyer signs off on the inspections, disclosures and all investigations, the buyer’s deposit becomes locked into escrow and can only be released on mutual consent. 

Is the buyer’s deposit in jeopardy if they don’t perform? (seller question) Not really…because, yes it can be awarded to a seller as damages, but you can’t put a new buyer under contract and move forward until your initial buyer’s deposit is satisfied. So, in simple terms, it is often easier to release the original buyer's deposit, take the new buyer’s deposit and close the deal. Not often worth legal costs and time to pursue breach of contract. 

When do I get or give keys? Unless the seller has a rent back negotiated in contract, you get keys the day it records escrow in your name, often paperwork stipulates "upon recordation" which generally we here later in the afternoon. 

How are you paid? In California, currently, the seller pays for both agents. They pay their representative and also for the buyer’s representative. So, currently, the buyer has substantially less costs associated with buying a property than the seller has in selling it. I believe this will change in the near future and the buyer will have to compensate their representative. Good News, there is no sales tax paid on a real estate transaction. 

What are your credentials?  I hold my brokers license which has much stronger education and responsibility than just an agent. “135 hours of real estate coursework is required to become an agent, while a broker license requires 360 hours and two years of practical experience. Both licenses require passing a final exam and undergoing a background check.” per investopia.com Jan 7, 2023 website.  In addition, I hold a Bachelor of Arts and a Master of Arts degree. 

Tell me about your experience as a seller’s agent.  My predominant portion of the clientele is representing the seller. The title is Listing Agent. This represents 85% of my business. When the seller stays local and purchases another property they work with us as a Buyer’s Agent. This represents 15% of our business. Occasionally a buyer will be referred to us from a client or friend. 

Tell me about your experience as a buyer’s agent.  Since the majority of our business is representing sellers, we know EXACTLY what type of offer is getting accepted. So, this makes us exceptional as  buyer’s agents because we write the perfect offer and our clients purchase at  better prices and terms than most agents can negotiate. 

Will my house make me money in the future? Most wealth of Californians is from owning a property. While real estate, like any investment, has risks, decade after decade, real estate is the strongest producer of wealth for individuals, often earning them more than their salary in any given year. 

What is For Sale By Owner and should I try it?  My Do It Yourself type clients….yes, you can certainly try!! For some it goes well, and if not, then I take over the transaction. No harm in trying to save money in case you have the magic touch and the perfect buyer appears!     

How’s the Real Estate Market? Supply is low, demand is strong. For buyers getting a home loan, the interest rates are higher than most people like. Prices have corrected downward and IF you brought in 2022 March to May you may be under water with your house value.  Interest rates are higher than normal, but if you can secure a good price and you want to stay for 3-7 years it is a GREAT time to buy! You can refinance once rates drop 2% to normal in the future. 

Should I wait or transact now?  If you are a first time buyer or a low down payment buyer (less than 20%) now is the PERFECT time to buy! We can likely negotiate the seller to pay your upfront closing costs, perhaps an interest rate buy down and on some properties, you have no other buyers competing with you at the moment so you don’t need to overpay for the property. If you must relocate in the next 2 years however, renting may be best for you. If you are moving out of state, sell now. The cash in your account will spend much farther in most parts of the country.