Optional Full Service

Full Service Plan

About 75% of our clients choose Full Service. 

After doing this for years we’ve found some Realtors shy away from submitting offers direct to home sellers. This is true for a few reasons:

1. Agents will assume that since you as a seller are not in the business, you don’t know how to process an offer and it will create an additional workload on the buyer’s agent.
2. Some sellers do not understand real estate protocall. There are certain duties, expectations and closing costs for both buyer and seller. Many sellers do not understand this so it can create a more difficult situation for the buyer’s agent if they have to deal direct with the seller.
3. Some buyer’s agents have had poor experiences with “Limited service” listings / sellers. As such they may not want anything to do with another “Limited service listing.

Here is what we include in our full service plan:

* We can pull sold comparables for you to help “Fine tune” your price.
* We will answer any questions and offer opinions during the entire process.
* When offers come in, they’re emailed to both you and us so we can go over all the specifics of the offer with you.
* We show you how to make the counter offer and are there to get you the highest possible price.
* We assist if there is a problem with the inspection contingency. This is common and can often be a deal killer if the home has inspection issues.
* We verify the buyer has a solid approval. The last thing we need is to find out a week before closing the buyer cannot obtain financing!
* We ensure the closing statement gets to you prior to closing and go over the numbers to verify your bottom line is accurate.
* And if a buyer comes to you directly, we write the contract and offer advice.

Essentially, we provide the same services a traditional agent does for you at a fraction of the cost! We help from list to close.
Thank you,
Jeff Kermath

I Have an Offer! Now What? (Michigan Seller Counter-Offer Guide)

I have an offer, now what?

Most buyer’s expect to be countered so why let them down? Seriously, it is rare to make a counter offer and have the buyer just walk. Most buyers expect to be countered. Usually the offer / counter offer will go back and forth a few times until you can either come to terms or not come to terms.

It’s a poker game trying to determine how far up we can get the buyer but in the end it has to be a win-win for both parties so keep that in mind.

HOW TO MAKE THE COUNTER OFFER

• Typically, there is no counter offer form. You simply make changes to the offer. WHEN YOU MAKE ANY CHANGE TO AN OFFER IT BECOMES A COUNTER OFFER. REMEMBER THAT PLEASE!
• Draw a line through things you disagree with, make the change you desire (counter offer) then initial that change.
• Initial the bottom of each page of the offer form.
• Sign and date the last page of the offer.
• At the end of the offer or where there is space put a time period for your counter offer, typically 2 days. Something like, “This counter offer is good through….”  This way your counter offer is not hanging out there and it protects you in case another offer comes in.
   

WHICH ITEMS ARE GENERALLY WORTH COUNTERING?

1. Price: Again, draw a line through the price, put in the price you’re countering then initial the change.
2. Occupancy: Many times the buyer will request occupancy at closing. If you want to remain in the home after closing for a short period put that period in there. If you remain in the home after closing for say 10 days you become a “Tenant” and will typically be obligated to pay rent. The rental amount is whatever the buyer’s mortgage payment is divided by 30 days to arrive at a daily rate, this is known as “1/30th PITI (principal, interest, taxes & insurance or tier total payment).
3. Pre approval contingency: This is a big one as far as I am concerned. Most offers will contain a clause telling us when the buyer will be pre approved. Many times this pre approval is 30 days which is a long time to tie up your home in case something goes wrong! It should be 10-15 days. NOTE, MOST PRE APPROVALS ARE ABOUT AS GOOD AS TOILET PAPER SO BE AWARE! ALSO, MOST CONTRACTS DO NOT DEFINE PRE APPROVAL, THIS COULD MEAN ANYTHING, PRE APPROVED ON CREDIT, PRE APPROVED WHEN THE FINAL APPROVAL IS DONE WHICH IS NOT UNTIL THE APPRAISAL IS DONE JUST BEFORE CLOSING!
4. So, be aware and hang tough on approvals. The last thing you needs as a seller is to wake up with a “Denial” a week before closing. You just lost 5 weeks of on market time when the buyer may not have had a strong (real) approval in the first place!

A WORD ON PRE APPROVALS / PRE QUALIFICATIONS: Most offers have a pre approval time period of 30 to 40 days. This means your home is “Off the market, pending” because there is a signed offer. Therefore, if something goes wrong with the buyer’s mortgage approval during that time frame you have essentially lost that “On market” time.  It is wise to verify the “Mortgage approval” is actually a good one and not just toilet paper… I’ve seen too many bogus pre approvals…

Here is a clause I like to insert in the offer from (somewhere under additional conditions).  

 (I am not an attorney, have your attorney review this clause!) 

“Buyer agrees to provide a full Credit Approval” within 15 days of acceptance of this offer. Credit approval means the lender has reviewed all income, bank statements, tax returns and other financial information and has approved the buyer.    

Now, granted, this may be a little tough but it takes the risk out for sure!

This may eliminate approval issues as the file progresses. The only thing remaining for the lender to review would be the appraisal.

1. The buyer will almost always hire an inspector. You should be contacted by the buyer’s agent to schedule an inspection on your home. The inspection generally lasts 3-4 hours. While it is your right to be there as owner it would be uncomfortable and few owners are there. However, it is not a bad idea to show up at the end and meet them outside to address any initial concerns if you wish.
2. Appraisal is next.  Assuming the inspection goes ok then the buyer’s mortgage company will hire the appraiser to appraise your home. This may take a week or so after the inspection.
3. Title insurance needs to be ordered. Although you as seller may have title, you have to provide “Clear Title” for the purchaser.  Title insurance confirms you are the owner and there are no other liens against the home. Title insurance is a set rate per thousand by Michigan Law.  We can order it for you or you can choose a company you wish. Many times the buyer’s agent will order title for the buyer. This is a separate order for the buyer only. We can still choose any title company you wish and do not need to order it from the same company.
4. How much can I expect to walk away with or what are my net proceeds?  Here is a great calculator you can use for just that! See http://www.libertytitle.com/sellers-net-calculator/
5. After the appraisal is done it should be clear sailing to closing.
6. You’ll need to order a mortgage payoff if you owe on your home and a final water bill.
7. The buyer’s mortgage company gets all of their information and costs to the title company. Generally, this is not done until a day or two prior to the closing date.
8. The Closing:  The title company acts like a big pot. Everyone dumps their stuff in the pot and the title company divides it up and produces a closing statement commonly referred to as a HUD-1.  The closing statement is generally not available until a day or so prior to closing because the buyer’s mortgage company has to get their numbers to the title company first.
9. You should be paid at closing. You can have the title company issue you a check or you can have it wired to your bank account.

I hope this helps explain the process.

Jeff Kermath

Full Service — How We Handle Your Offer & E-Signature Counteroffers

Full Service – How To Handle The Offer

With most of our listings we have the seller’s contact info in the mls for agents to contact sellers direct for showings.  The only problem with this is when an offer is coming, often times agents will call or text you the seller questions relating to offers.  We do not want agents contacting you with any questions relating to offers, or anything other than questions regarding your home.  Some agents are unscrupulous and will attempt to get information on your home or try to feel you out as to how negotiable you are as a seller… Do not answer any questions relating to the purchase or give away any info on how negotiable you may be!

How to do things the ideal way:

1. Direct agents to email you and me.  This way we are all in a loop and I can help.  Additionally, everything is in writing and can be saved to your address.  If they get in the habit of texting you they will later then I’m cut out and can’t help.

2. Tell them not to read the instructions in the mls, this says to email offers to you and me, this way there are no delays.

3. When the buyer’s agent emails the offer to you and us we can then go over the offer together to determine the best strategy.

If the offer is close we can discuss strategy. If the offer is low then usually I recommend we send and “Email counter” to the agent instead of making a formal counter in writing. When we send an email counter offer I have found that if you the seller compose an argument as to why we are countering at our desired price it works best. When you create an argument as to the counter, site the reasons like improvements, what you’ve done to your home, anything that supports why we are coming back and the desired counter price.

If we can come to terms then we can do the formal counter offer in writing and hopefully get a signed deal!

Thank you,
Jeff Kermath