SD1 Real Estate | Client Resource
Home Seller's Handbook
Your complete guide to a successful home sale
Getting Started
Welcome, Home Seller
Thank you for giving me the opportunity to help guide you through your home selling process. It can be very confusing and sometimes complicated, but it is important to you, your family, your future and to me. Please be assured you will receive my very best service incorporating all my experience and training to make a committed effort to have this process be understandable, hassle free and a pleasure for all involved. So let's get started!
The information in this handbook will educate and assist you with the following:
- Help determine your wants and needs
- Steps of the selling process
- Loan information
- Writing, presenting and negotiating the offer
- Explaining the escrow and title process
- Physical inspection process
- Home warranties
I look forward to working with you during the entire home selling process. I welcome any questions you may have after reading this information. Please feel free to contact me at anytime.
Representation
Selecting an Agent
Congratulations! You've taken the first step toward selling your home by deciding to select a real estate professional to represent you. You couldn't have made a better decision than to choose a Realtor® for help and guidance through the process. You can be assured that you will receive excellent service along with the best opportunity to sell your home with far less hassle and worry.
What You Can Expect from Your Realtor®
Set the Right Price
Assist you in setting the right price for your home. They know the market and will help you get the best possible price.
Assess Marketability
Assess your home's marketability and show you ways to create more demand.
Active Marketing
Actively market your house in the most effective possible manner.
Negotiate for You
Negotiate on your behalf with qualified prospective buyers.
Respect Your Decisions
Allow you to make your own decisions. A professional agent works for you and respects your opinion. They will not try to force you into a decision with which you don't feel comfortable.
Protect Your Rights
Real estate laws have become increasingly complicated and your Realtor® is there to assist you in every way.
Presentation
Tips to Sellers — Let Your Home Give a Smile to Buyers
First impressions are lasting. The front door greets the prospect. Make sure it is fresh, clean and scrubbed looking. Keep the lawn trimmed.
Let the sun shine in. Open draperies and curtains and let the prospect see how cheerful your home can be — dark rooms do not appeal.
Can you see the light? Illumination is like a welcome sign. The potential buyer will feel a glowing warmth when you turn on all your lights for an evening inspection.
Repairs can make a big difference. Loose knobs, sticking doors and windows, warped cabinet drawers and other minor flaws detract from home value. Have them fixed.
From top to bottom. Display the full value of your attic and other utility space by removing all unnecessary articles.
Decorate for a quick sale. Faded walls and worn woodwork reduce appeal. A quicker sale at a higher price results from redecorating. Keep stairways clear and avoid cluttered appearances.
Make closets look bigger. Neat, well-ordered closets show space is ample.
Arrange bedrooms neatly. Remove excess furniture. Use attractive bedspreads and freshly laundered curtains.
Bathrooms help sell homes. Check and repair caulking in bathtubs and showers. Make this room sparkle.
Fix that faucet! Dripping water discolors sinks and suggests faulty plumbing.
Three's a crowd. Avoid having too many people present during inspections. The potential buyer will feel like an intruder and will hurry through the house.
Silence is golden. Be courteous but don't force conversation with the potential buyer. They want to inspect your house — not pay a social call.
Music is mellow. But not when showing a house. Turn off the blaring radio or television. Let the agent and buyer talk, free of disturbances.
Pets underfoot? Keep them out of the way — preferably out of the house.
In the background. The salesperson knows the buyer's requirements and can better emphasize the features of your home when you don't tag along. You will be called if needed.
A word to the wise. Let your Realtor® discuss price, terms, possession and other factors with the buyer. He/she is eminently qualified to bring negotiations to a favorable conclusion.
Use your agent. Show your home to prospective customers only by appointment through your agent. Your cooperation will help close the sale more quickly.
Why put the cart before the horse? Trying to dispose of furniture and furnishings to the potential buyer before they have purchased the house often loses a sale.
Transaction Timeline
Contract to Closing
Once you accept an offer, the following 19-step process guides your transaction from signed contract to a completed sale.
Financing
The Loan Process
Prequalification / Interview
Application interview; lender obtains all pertinent documentation.
Order Documents
Credit report, appraisal on property, verifications of employment, mortgage or rent, funds to close, landlord ratings, preliminary title report.
Loan Submission
The loan package is assembled and submitted to the underwriter for approval.
Documentation
Supporting documents come in. Lender checks on any problems and requests additional items as needed.
Loan Approval
All parties are notified of approval.
Documents Are Drawn
Loan documents are completed and sent to escrow. Borrowers come in for final signatures.
Funding
Lender reviews the loan package. Funds are transferred by wire.
Recording Documents
Title company records the deed of trust at the county recorder's office. Escrow is now officially closed.
Types of Loans
| Loan Type | Description |
|---|---|
| Adjustable Rate Mortgage (ARM) | Interest rate adjusted at certain intervals based on a specific index during the life of the loan. |
| Balloon Payment Loan | Fixed rate loan amortized over 30 years but becomes due and payable at the end of a certain term. May be extendible or may roll-over into another type of loan. |
| Buy-Down Loan | Fixed rate loans where the interest rate and payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment. |
| Community Homebuyer's Program | Fixed rate loan for first-time buyers with a low down payment (usually 3–5%), no cash reserve requirement, and easier qualifying ratios. Subject to income limits and completion of a 4-hour homeownership course. |
| Conventional Loan | Sometimes more lenient with appraisal and property condition. Used for "fixer uppers" or homes purchased above the FHA loan limit. |
| FHA Loan | Insured by the Federal Housing Administration under H.U.D. Offers a low down payment and easier qualification than conventional loans. |
| Fixed Rate Loan | One interest rate that remains constant throughout the life of the loan. |
| Graduated Payment Mortgage | Payments start lower than a standard fixed rate loan, then increase by a predetermined amount each year for a set number of years. |
| Non-Qualifying Loan (Assumable) | Preexisting loans which can be assumed by a buyer without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments. |
| VA Loan | Guaranteed by the Veterans Administration. A veteran must have served 180 days active service. |
Escrow & Title
Understanding Escrow
How does the escrow process work?
The escrow officer takes instructions based on the terms of your Purchase Agreement and the lender's requirements. The escrow officer can hold inspection reports and bills for work performed as required by the purchase agreement. Other elements include hazard and title insurance, and the grant deed from the seller to buyer. Escrow cannot be completed until all parties have signed escrow documents.
How do I open an escrow?
Either your real estate agent or the buyer's agent may open escrow. As soon as you execute the Purchase Agreement, your agent will place your initial deposit into an escrow account at the escrow company.
Where does the buyer's money go?
Written evidence of the deposit is generally included in your copy of the sales contract. The funds will then be deposited in a separate escrow or trust account.
What information do I need to provide?
You may be asked to complete a Statement of Identity as part of the paperwork. This identifies the specific person in the transaction through date of birth, social security number, etc. This information is considered confidential.
How long is the escrow?
The amount of time is determined by the terms of the Purchase Agreement. It is normally 45 to 60 days, but can range from a few days to several months.
When do I receive proceeds from the sale?
A final settlement statement and a check for the proceeds will be available to you the day the sale is completed, documents are recorded and the escrow is closed.
Paying Off Your Existing Loans
Unless the buyer takes over your existing loan(s), the loan(s) will be paid off during the escrow process. Please be prepared to provide the name of the lender, loan number, address and phone number for each loan against your property. Homeowners' Association information may also be required if you are selling a condominium, townhouse or property in a planned unit development.
Disclosures and Contingencies
During the process of selling your property, you will be asked to fill out a property disclosure form, which is required by law. You will inform the buyer of any significant facts you have about the condition of the property. Stay closely in touch with your real estate agent regarding all contingency dates — including the buyer's loan approval, approval of the Preliminary Title Report, and approval of termite and other inspections.
Escrow Instructions & Your Appointment
Escrow instructions define all the conditions that must occur before the transaction can be finalized. A Grant Deed is the document which legally transfers your title to the property to the new owner. You will sign the Grant Deed as part of the escrow instructions and it will be notarized by your escrow officer or another qualified notary public.
Ownership & Insurance
Title Insurance & Title Company
Most real estate transactions are closed with a title insurance policy. Many home buyers just assume that when they purchase a piece of property, possession of the deed is all they need to prove ownership. This is not true. Hidden hazards may attach to real estate. A property owner's greatest protection is a policy of title insurance.
What Is Title Insurance?
A contract of indemnity which guarantees that the title is as reported. If not reported and the owner is damaged, the title policy covers the insured for their loss up to the amount of the policy. Title insurance is designed to eliminate risk or loss caused by defects in title from the past.
The Title Search
Title companies perform a search of public records to determine the current recorded ownership, any recorded liens or encumbrances, or any other matters of record which could affect the title. When complete, the title company issues a preliminary report detailing the current status of title.
Paying Off Existing Loans
The title company pays off existing loans when so ordered.
Recording Documents
The title company records the appropriate documents with the county office, giving public notice.
Reviewing the Preliminary Title Report
Review your preliminary report immediately with attention to: ownership vesting (ensure names match the purchase contract), informational notes, exceptions (bonds, deeds of trust, current taxes, CC&Rs and easements), and any surprises such as unexpected deeds of trust. Contact your escrow officer right away if something doesn't look right.
Ways to Hold Title in California
Provided for informational purposes only — consult your attorney or C.P.A. for advice specific to your transaction.
Tenancy in Common
Any number of persons may hold title. Ownership can be divided into any number of interests, equal or unequal. Upon death, interest passes to the owner's devises or heirs — no survivorship right.
Joint Tenancy
Parties need not be married. Ownership interest must be equal. Upon death of a joint tenant, title passes to the surviving joint tenants by operation of law — no probate required.
Community Property
Requires a valid marriage between two people. Each spouse holds an undivided one-half interest. Upon death, the decedent's estate must be cleared through probate, affidavit or adjudication.
Community Property w/ Right of Survivorship
Requires a valid marriage. Each spouse holds an undivided one-half interest. Upon death of one spouse, title passes to the surviving spouse by operation of law — no probate required. Both halves receive a "stepped up" tax basis as of the date of death.
Due Diligence
Inspections
Real estate contracts often contain contingency clauses that allow buyers to inspect the property physically (usually at their expense). This inspection provides a comprehensive review of the infrastructure of the property. Which inspections to order is usually a matter of observation and knowledge of what is critical to a particular region or area.
Structural Pest Control
Section I — items needing immediate attention due to active infestation. Lenders usually require this work be performed prior to funding.
Section II — items that could cause infestation and, if not corrected, could cause damage.
Physical Inspection
Encompasses roof, plumbing, electrical, heating and any other accessible area of the structure. A detailed report will be written with recommendations for repair or for further inspection by a specialist.
Other Common Inspections
Well and Septic · Hazardous Materials · Contractor's Home Inspection · Chimney Inspection · Heating and Air Conditioning · Structural Engineering · Energy Audit
Protection
Home Warranties
A home warranty protects the Buyer by paying for certain repairs and costs of major mechanical systems and major appliances in the home such as heating and air-conditioning. There are a variety of plans available.
Benefits to the Seller
- Home may sell faster and at a higher price
- Optional coverage during the listing period
- Protection from legal disputes that occur after the sale
- Increases the marketability of your home
Benefits to the Buyer
- Warranty coverage for major systems and built-in appliances
- Protects your cash flow
- Puts a complete network of qualified service technicians at your service
- Low deductible
Next Steps
Moving Expenses & Checklist
When you meet the IRS's definition of a qualifying move, certain expenses may be tax deductible. Consult your tax or legal advisor for advice specific to your situation.
Potentially Tax-Deductible Moving Expenses
Home Search Trips
The cost of trips to the area of a new job to look for a home. Your home shopping expedition does not have to be successful for the cost to be deductible.
Household Shipping
The cost of having your furniture and other household items shipped, including the cost of packing, insurance, and storage for up to 30 days.
Travel Costs
The cost of getting your family to the new home town, including food and lodging expenses on the trip.
Temporary Living
The cost of lodging and 80% of food expenses for up to 30 days in the new home town, if you have not yet found your ideal home or it is not ready when you arrive.
Sale & Purchase Costs
Certain costs associated with the sale of your old home and purchase of the new one — including real estate commissions, legal fees, state transfer taxes, and appraisal and title fees.
Moving Checklist
Old Residence — Change of Address
- Forward address at post office
- Credit card accounts
- Publications
- Bank accounts
Old Residence — Utilities to Cancel
- Telephone (check for refund)
- Gas & Electric (check for refund)
- Water (check for refund)
- Garbage
- Propane
- Cable (check for refund)
Old Residence — Moving Preparation
- Defrost refrigerator
- Auto transportation needs
- Pet transportation needs
- Travel cash or checks
- Hand carry jewelry and valuables
- Leave keys
- Leave garage door openers
Old Residence — Medical Records
- Medical records
- Dental records
- Veterinarian records
- School transcripts for kids
New Residence — Address & Utilities
- Ask postman to hold mail for your arrival
- Telephone (new number)
- Gas & Electric
- Water
- Garbage
- Propane
- Cable
New Residence — Government & Services
- Apply for state driver's license
- Register car
- New address on driver's license
- Register to vote
- Register children in school
- New doctor
- New dentist
- New veterinarian
Reference
Real Estate Glossary
| Term | Definition |
|---|---|
| Adjustable Rate Mortgage (ARM) | A mortgage with an interest rate that changes over time in line with movements with the index. |
| Adjustment Period | The length of time between interest rate changes on an ARM. A one-year ARM means the interest rate can change once a year. |
| Agency | A legal relationship in which someone (principal) hires someone else (agent) to represent them to a third party. |
| Amortization | Repayment of a loan in equal installments of principal and interest rather than interest-only payments. |
| Annual Percentage Rate (APR) | The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount. |
| Appraisal Fee | A fee charged by the lender for an appraisal. |
| Assessed Value | The value placed on property by the County Assessor District as a basis for taxation. |
| Assumption of Mortgage | A buyers' agreement to assume the liability under an existing note secured by a mortgage or deed of trust. The lender must approve the buyer. |
| Balloon Payment | An instance in which the final installment payment on a note is greater than the preceding payments, and pays the note in full. |
| Cap | The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage. |
| CC&R's | Covenants, Conditions and Restrictions. A document that controls the use, requirements and restrictions of a property. |
| Chain of Title | A history of conveyances and encumbrances affecting the title of real property. |
| Closing Statement | The financial disclosure statement that accounts for all of the funds received and expected at the closing of the escrow. |
| Conventional Mortgage | A mortgage securing a loan made by investors without government underwriting — not FHA insured or VA guaranteed. |
| Deed | A document which, when properly executed and delivered, conveys title of real property. |
| Disclosure | To make known or public. When dealing with real property, all disclosures should be made in writing. |
| Discount Points | A negotiable fee paid to the lender to secure financing for the buyer. One discount point equals one percent of the loan amount. |
| Due on Sale Clause | An acceleration clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership. |
| Earnest Money | The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith. |
| Encumbrance | Anything that affects or limits the ownership of real property, such as mortgages, liens, easements or restrictions of any kind. |
| Escrow | The deposit of documents and funds with instructions to a neutral third party to carry out the provisions of an agreement or contract. |
| Escrow Fee | Charged by the title company to service the transaction and to escrow money and documents. |
| Exclusive Right to Sell Listing | A written agreement between owner and agent giving agent the right to sell a property and collect a fee for a set term. |
| Fair Market Value | The price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure. |
| Finance Charge | The total cost a borrower must pay, directly or indirectly, to obtain credit. |
| Home Inspection Report | A qualified inspector's report on a property's overall condition, covering both the structure and mechanical systems. |
| Home Warranty Plan | Protection against failure of mechanical systems within the property. Usually includes plumbing, electrical, heating systems and installed appliances. |
| Joint Tenancy | An equal, undivided ownership of property by two or more persons. Upon death of any owner, the survivors take the decedent's interest in the property. |
| Lien | A legal hold or claim on property as security for a debt or charge. |
| Loan Commitment | A written promise to make a loan for a specified amount on specific terms. |
| Loan to Value Ratio | The relationship between the loan amount and the appraised value of the property, expressed as a percentage. |
| Margin | The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment. |
| Mortgage | A legal document that provides security for repayment of a promissory note. |
| Negative Amortization | Occurs when monthly payments fail to cover the interest cost. The unpaid interest is added to the principal balance. |
| Origination Fee | A fee or charge for establishing a new loan. |
| PITI | Principal, interest, taxes and insurance. |
| Point | An amount equal to 1% of the principal amount of the investment or note. |
| Prepayment Penalty | A fee charged to the mortgagor who pays a loan before it is due. |
| Private Mortgage Insurance | Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage. |
| Purchase Agreement | A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under certain terms and conditions. Also called a sales contract. |
| Recording Fee | Charged by the County Recorder to record documents in the public records. Charges are based on number of pages recorded. |
| Tenancy in Common | A type of joint ownership of property by two or more persons with no right of survivorship. |
| Termite Inspection | Required by lender to show property free and clear of active termites. |
| Time is of the Essence | Demands punctual performance in a binding contract. |
| Title | In dealing with real property, title means ownership. |
| Title Insurance Policy | An insurance policy which protects the purchaser, mortgagee or the party against liens or encumbrances against their property. |
| Underwriting Fee | Charged by a lender to underwrite the loan. |
| VA Loan | A loan that is guaranteed by the Veterans Administration and made by a private lender. |
| Zoning | Act of city authorities specifying type of use for which property may be used. |
Quick Reference
Helpful Reminders
Transferring Funds
If you wish to transfer funds to another escrow or wire transfer funds, arrangements must be made in advance with the escrow officer.
Power of Attorney
Arrangements must be made one to two weeks in advance with the escrow officer. The Power of Attorney must be approved by the buyer's lender and your title company. Make these arrangements as early as possible in the transaction.
Identification
Please bring appropriate identification with you to the escrow company so that your identity can be verified by the notary public.
Insufficient Funds
Should the funds deposited in escrow be insufficient for closing, you will need to bring a cashier's check or certified check from a California bank or savings and loan in the exact amount of the balance due, made payable to your escrow company.
Who to Call for What
Sales Agreement
Real Estate Agent
Possession & Keys
Real Estate Agent
Loan & Financial Matters
Lender / Mortgage Company / Real Estate Agent
Escrow Instructions
Escrow Officer or Escrow Assistant
Title Reports or Policy
Title Officer or Title Assistant
Frequently Asked Questions
Why do you only charge a 1% listing fee?
We believe sellers deserve to keep more of their hard-earned equity. Our 1% listing fee covers full service—professional photos, marketing, showings, and expert negotiation—without unnecessary overhead. You save thousands without sacrificing service or results.
How is SD 1% Listing different from discount or flat-fee brokers?
Unlike flat-fee or limited-service brokers, we offer full brokerage service, just at a fairer price. You get a dedicated broker with 20+ years of experience, personalized strategy, cutting-edge marketing, and hands-on support from listing to closing.
What is included in the 1% listing fee?
Our 1% listing fee includes:
Strategic pricing and market analysis
Professional photography and video
MLS and Zillow/Redfin/Realtor.com syndication
Social media and digital ads
Open houses and private tours
Skilled negotiation and contract management
Buyer agent commission is additional and negotiable
How do you determine the best list price for my home?
We conduct a Comparative Market Analysis (CMA) using recent sales, current competition, and property-specific features. We also consider timing, local demand, and your financial goals to recommend the ideal pricing strategy.
Do I need to stage my home?
Staging can increase sale price and reduce time on market. We'll walk you through budget-friendly staging tips or connect you with affordable pros in our vendor network if needed.
What happens after an offer is received?
We’ll review all offers together, evaluate buyer qualifications, and negotiate on your behalf to secure top-dollar terms. You’re in full control—we provide advice, strategy, and execution.
What if I need to cancel the listing?
We offer Cancel Anytime flexibility. If you’re not satisfied, you can cancel without penalty. We’re confident our service will exceed expectations—but you're never locked in.
How long does the process usually take?
Each sale varies, but a typical timeline is:
1-2 weeks of prep and marketing
1-3 weeks on market before receiving offers (varies by price and condition)
30 days for escrow and closing
We can adjust timing based on your needs and goals.
What do I need to do to get started?
Start with a free consultation. We’ll assess your home, explain your options, and create a personalized strategy. No pressure, no obligation—just straight answers and smart planning.
Want to work with us?
Real estate commissions are not set by law. There are no standard or fixed rates. The total commission is entirely up to the seller’s discretion and is negotiable between the seller and their listing agent.
Department of Real Estate License # 01724621, #01984637
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