The Silicon Valley real estate market is highly dynamic and can often be very competitive. Familiarity with the current market conditions, statutory disclosure requirements and marketing systems, together with a methodical, proven, step-by-step process can assure you of maximum profit while minimizing the hassle and risk of potential post-sale problems. The major steps in the sale process are outlined below.

Yes, this seems obvious (or perhaps self-serving), but how do you define competence and professionalism and how do you assess it? Let me offer some suggestions and see if you agree.

Competence is having the knowledge and experience necessary to sell your home at the highest price, with the most favorable terms, in the least amount of time and with a minimum of hassle or complications. Professionalism is the consistent motivation to exercise that competence with the utmost in honest and ethical behavior.

Competence is having detailed knowledge of the current market conditions, having a proven methodology for determining your home's market value, and the experience to guide you through the pre-sale inspections and statutory disclosures. Competence is knowing how to most efficiently prepare your home for showing at its best, having a comprehensive marketing plan and marketing materials and having the knowledge to implement that plan most effectively. Competence is understanding how best to structure the offer process, knowing the techniques and subtleties of effective negotiation and having an in-depth knowledge of the various purchase contract clauses together with associated addendums, supplements and counter-offers. Competence is the experience of working with home inspectors and understanding the technical implications of inspection findings. Competence is knowledge and experience with the closing and escrow process and an understanding of the documents that must be in place to assure a smooth and on-schedule closing. Competence is having the backing of a world-class real estate organization with superior name recognition, a nationwide marketing and relocation system and the newest, most effective technology and tools.

Competence is critical and looks good on a resume but is of little consequence without professionalism. Professionalism is a commitment to the real estate field, to the client and to the profession's highest ethical standards. Professionalism is a commitment to quality in all aspects of the transaction whether in the preparation of the comparative market analysis, in the composition of professional marketing materials, or in the preparation of the Seller's statutory disclosure package. Professionalism is providing outstanding client service by being prompt for scheduled appointments, scheduling and coordinating all pre-sale inspections and repair work, promptly returning phone calls and e-mails in a timely manner, providing neighborhood market activity updates throughout the sale process and methodically reviewing all contract, disclosure and inspection report documents with the seller. Professionalism is honesty and integrity in all aspects of the transaction, honoring the fiduciary responsibility to the Seller and providing fairness and honesty in all dealings with the Buyer and the Buyer's agent. Lastly, professionalism is placing the client's needs above your own and continuously striving to provide 100% referable service.

If you believe these are the traits of a competent real estate professional, please read on.

After selecting an agent to work with, your next step is to determine the listing price. The standard methodology for determining this price is called a Comparative Market Analysis and if properly performed, it can determine your home's probable selling price reasonably accurately. Here's how it's done:

First, I perform a walkthrough of your home to assess the overall size, configuration and floor plan noting in particular any significant remodeling, upgrades or unique features as well as the overall condition of the property relative to others in the neighborhood. Next, I query the County records to ascertain the exact square footage for both the home and the lot. Next, I pull up a reasonable number of prior, comparable sales, "Comps", in order to determine the average sale price for properties most like yours that have sold within the same market conditions. While this sounds easy, it actually can involve a significant amount of analysis, particularly if comps aren't available within the same market conditions or within the same neighborhood. I use a systematic process that has proven reliable and accurate in both static and rapidly-changing markets and if required, I can apply other, completely different methodologies as a crosscheck on the computed price. Lastly, the suggested listing price is adjusted up or down based on your unique circumstances and needs and based on the current Active listings in the neighborhood (the competition). Ideally, your home will be priced at a point that is supported by the recent comps and is competitive in price and terms with the other homes currently for sale in the neighborhood.

Once the listing price is agreed upon, I'll prepare a Seller's Net Sheet for you which will itemize all of the selling, title and escrow costs as well as any loan payoffs and estimate your net proceeds from the sale.

This step can be simple and quick or involved and complex depending on the current condition of your home and your expectations for selling price and time on market. To start with, you'll want to repair anything that's broken or non-functional and address any areas that have suffered from deferred maintenance. The best way to assess your repair needs is to have professional inspections performed and reports prepared. At a minimum, these might include a pest control inspection, a property inspection and a roof inspection. These inspection reports will not only pinpoint your repair needs, but after they're marked up to indicate all repairs that have been made, they'll become an integral part of your Seller's Disclosure Package (See Next Section).

After all the repair items are taken care of, take a critical look at your home through the eyes of a prospective buyer. It's not cost-effective to do major remodeling at this point, but a fresh coat of paint, a carpet cleaning (or replacement if needed), and a thorough spring cleaning can transform most homes. As for the outside, trim all the shrubs and bushes, green up the lawn with some fertilizer and add some color with inexpensive annual flowers in borders and pots on the porch. Lastly, de-clutter as much as possible. This is tough but ideally you want your home to look "homey" but not lived in. Remember those model homes that you were enchanted by? Of course, they were professionally staged and no one was living there but that's the ideal. Remove as much clutter and extraneous furniture items as possible and store them in closets or in the garage. Keep all furniture surfaces clear except for lamps and a few accent items. Finally, eliminate any pet odors that may be present, hang up your best guest towels and place a few potpourris or scented soaps in the bathrooms. Every home is unique and I'll give you a customized list of suggested preparation steps tailored to your specific home.

California law requires that sellers disclose to buyers in writing all material factors that may affect the value or desirability of the property being transferred. The seller must complete the statutory Transfer Disclosure Statement (TDS) as well as a number of other statutory forms addressing such issues as water heater seismic strapping, smoke detectors, lead-based paint, geographical hazard zones, etc. The prospect of completing all of this paperwork can be daunting so I make it as painless as possible and do as much of the work for you as legally permissible.

As alluded to in the previous section, I always recommend that Sellers order their own inspections rather than waiting for a buyer to order them. The reasons are: 1) The inspection reports pinpoint any needed repairs so you can take care of them prior to sale. You won't have the time pressure and you can shop around for bids if the required repairs are extensive; 2) Providing your own reports to the prospective buyer together with notations of repairs made will ease the Buyer's concern that major repair problems may be hidden. In fact, many Buyers accept the Seller's current inspection reports if the reports are recent and performed by a professional inspector; 3) By having professional inspectors assess your home's condition, you limit your liability should an unknown defect come to light after the sale has closed. As a minimum, you should have a Pest Control Inspection, a Property Inspection and a Roof Inspection. Depending on your home, I might also recommend additional inspections such as Fireplace/Chimney Inspection, Pool/Equipment Inspection, Septic System Inspection, etc. Costs vary slightly, but in general a Property Inspection will cost around $400 and the other inspections will cost approximately $150 each. Once you've decided on the inspections, I'll take care of the scheduling and witness each inspection with you. Any questions can then be addressed with the inspector immediately. In addition, I'll order the Geographical Hazard Zone disclosure Report, the Environmental Disclosure Report and the Preliminary Title Report. Once all the inspection reports are in hand, I'll sit down with you to review them and assist you with the completion of the Seller's Transfer Disclosure Statement, supplemental disclosures and statutory disclosure forms. When all the reports and disclosures are completed and signed, I'll then assemble them into a Seller's Disclosure Package which I'll make available (on line) to prospective Buyers.

Now that the preliminaries are taken care of it's time to get down to the business of marketing your home. My marketing system is comprehensive, multi-faceted, leverages the newest technologies and has a proven track record of effectiveness. You can read about the details of my comprehensive marketing plan on my Why Joe Wilson page.

With your home properly prepared and a comprehensive marketing system in place, you should expect many showings, particularly in the first few weeks. While maintaining your home in showing condition for several weeks or months can be a hassle, it's well worth the effort. In general, try to maintain the uncluttered appearance. Keep all the window coverings open during the daytime to maximize the light, make sure the beds are made and the laundry is put away. Wash any dirty dishes and pans or stack them away in the dishwasher and make sure the kitchen counters are clear and clean. Also, be sure the bathrooms are spotless with fresh towels. If you leave the home, be sure any pets are secured in the backyard or garage as appropriate and switch on as many interior lights as you're comfortable with. Lastly, make sure any alarm system is switched off and always place any valuables like money or jewelry in a secure location.

For the actual showing, the Buyer's agent will call first as a courtesy to you with an estimated time for the showing. You don't need to be home for the showing and in fact it's preferable for you to leave the home and take a short walk if necessary when the agent and client arrive. This allows the prospective buyer to linger, speak more freely and become comfortable with the home. Showing agents should always leave their business cards which I'll collect from you periodically in order to obtain feedback from the agents and their prospective Buyers.

An offer to purchase your home will be prepared by the Buyer's agent on a form called a Residential Purchase Agreement. This form will contain all aspects of the offer including the offering price, down payment, financing terms, contingencies, closing and possession dates and many other conditions of the offer. I’ll review the offer with you after which you may either accept the offer outright or prepare a counter-offer with a different price or terms. If you accept the offer or if the other party accepts your counter-offer, then the Purchase Agreement becomes a legal contract binding on both Buyer and Seller.

Depending on the market conditions, it's possible that multiple offers could be received simultaneously. If you were fortunate enough to be selling your home in that kind of "seller's market", then special procedures would be used to assure fairness to all bidders while assuring you of the best price and terms for your home. Additionally, in a multiple offer situation, I always try to accept one of the "losing" bids as a backup offer. That provides you with an insurance policy in the case that the primary buyer exercises a contingency to cancel.

Once you're in contract, the clock starts on the "escrow period" as described next.

Now that you have a ratified purchase contract, the clock starts on the Buyer's contingency periods. These contingencies are provisions allowing the Buyer to cancel the contract should certain conditions not be met within specified time periods. Buyers always want as long a contingency period as possible while Sellers obviously would like as short a period as possible.

Typical contingencies are the financing contingency during which the Buyer's lender has the home appraised and completes the Buyer's loan approval, and the inspection contingency during which the buyer must complete any and all inspections or investigations of the property and neighborhood. Normal contingency periods are 10-15 days but they can be shorter or longer depending on market conditions. Once the Buyer has removed all contingencies in writing, he can no longer back out of the purchase without defaulting which places his deposit at risk. If for some reason the Buyer is unwilling or unable to remove the contingencies within the specified time period, you may cancel the contract at your option.

With all the contingencies removed, the Escrow Company then orders the Buyer's loan documents and prepares the Grant Deed to transfer title and a Deed of Trust to place the home as security for the Buyer's loan. The Buyer will sign these documents about a week before closing which will then permit the Buyer's lender to wire the purchase funds to the Escrow Company. On your behalf, The Escrow Company will order your payoff demand from your mortgage holder and compute your payoff amount. A Closing Statement will be prepared for each party itemizing all debits and credits and you'll be scheduled for a signoff of all the Seller documents. After all documents have been signed by Buyer and Seller and all funds have been received and verified, the new Grant Deed and Deed of Trust are recorded, a check is given to you for the net proceeds of the sale and the escrow is closed. Nothing to it!