Sell State Island Properties, 829 Simonton Street, Key West, FL 33040

 Marketing Strategy

Sellstate is a full service real estate brokerage specializig in bank owned residential properties and short sales as well as commercial, land and investment proerties.

To sell real estate in our volatile and aggressive world market a Real Estate Professional must use Proven Marketing Strategies and Resources to get World Wide Exposure. 100% of my time is invested in real estate and I have full-time office support staff.  My Marketing Plan guarantees that your property will get the worldwide exposure it needs to sell for the best price, professional marketing brochures, web marketing, visual tours, and marketing on all of the popular real estate web sites in the world.

 If you want to be an unrepresented seller be prepared to:

1.  Create, prepare and manage your marketing

2.  Stage your home

3.  Pay for your own marketing up front

4.  Determine your pricing

5.  Be available to show your home weekdays, holidays, weekends and evenings

6.  Qualify buyers.  Find financing for your buyers.  Have a safety plan in place in case you invite the wrong stranger into your home.  Have  a safety person to call and a code to let them know that you are 'ok.'

7.  Control your temper and emotions or salvage the deal and the relationship when you feel that a buyer, investor or real estate agent has made you angry because you feel they are nickle and diming you, being ruthless and or unfair.

8.  Keep the deal together when the buyer, investor or real estate agent has found a loop hole in your contract so that they can walk away from your deal to buy a better home that just came on the market at a better price.

9.  Negotiate your deal

10.  Write your contract

11.  Disclose according to Florida law

12.  Use appropriate addendums and disclosures

13.  Be present for inspections.  Be prepared to remedy issues discovered during inspections and keep your buyer from walking from the deal.

14.  Deal with experienced and knowledgeable Realtors, buyers and investors who have thier own best interest as a top priority as well as lawyers and resources to protect themselves.

15.  Be prepared to handle a low appraisal or a lender who withdraws lender financing. 

16.  Be prepared to deal with unexpectected title issues

17.  Actually close the deal after all of your hard work

The title company needs a legible complete copy of the contract, all addendums and riders.  The title company needs the contact information for all of the parties to the real estate transaction.  Send the title company the prior title commitments and survey.  If the property is bank owned the listing agent should give the title company the asset number of the property.  

Some listing agents will have a questionnaire with all of the information that a title company needs for the closing.  The listing agent should give the title company the contact information for the buyer, seller, buyer's agent, seller's agent, mortgage loan originator (MLO) and the attorney for seller and or buyer.  Give the title company the current mailing address, phone number(s), email address(es) of the buyer and seller.  Tell the title company if a real estate company charges a transaction fee.  Verify the real estate commission that will go to the seller's agent office and to the buyer's agent office. 

When an offer is written add information about the buyer and seller.  The way that an offer is written will determine how the buyer's name appears on the deed.  The title company will make a copy of the buyer's drivers license and a 2nd form of ID to verify the buyer's identity at the closing.  If the 2 forms of ID do not match the way that the offer and deed have been prepared there could be last minute questions.  A buyer may wish to write their name on the offer the way that it appears on their drivers license to avoid complications.

The offer should include information about the buyer's marital status.  The buyer should be, "John Q Public, a single man", "Mary Jane Public, a married woman" or "John D Morgan and Lisa L Morgan, H/W" (husband / wife).   The title company will appreciate if you write, "John Q Public, a married man."  If a buyer is planning a divorce, or has filed for divorce, encourage the buyer to talk with their divorce attorney before writing an offer.  The ex partner could unintentionally become 1/2 owner of the new property.  

A buyer should talk to their real estate attorney about how they will take title to the property.  A real estate agent and a title company will not recommend to a buyer how he or she should take title.  There are consequences to the way a buyer takes title.  

If a buyer takes title as joint tenants with rights of survivorship, tenants by the entireties, tenants in common or with A Life Estate on a deed there could be a far reaching and unanticipated impact if a buyer decides to refinance or sell in the future.  A buyer's lender will not allow a buyer to take title with a Life Estate.  If the closing is a refinance a satisfaction of the old mortgage must be recorded.  If the owner or one of the owners has a Purchase Money Mortgage (seller financing) the bank handling the refinance will ask the person holding the note, or the trustee, to verify the starting balance and current balance of the mortgage.  The way that a buyer takes title to a property can affect heirs and other owners at death.  

A seller and buyer should talk to the title company about issues that may affect the sale.  Discuss guardianship with your title company if a parent or parents have died.  Talk to the title company about children who are less than 18 years old and are affect by the sale.  Tell the title company if the seller is a widow or widower.  The title company will want a copy of a death certificate if an owner is deceased.  If a seller is involved in a bankruptcy tell the title agent.  If the bankruptcy has been discharged tell the title agent and give the title company a copy of the document.  

A real estate agent will be a great asset to her seller or her buyer if she does her research before the buyer is committed to a contract.  The seller is responsible for additional costs that result from doing a 1031 exchange.  Be upfront with all parties to the contract.  No one likes a surprise in a real estate transaction.  Build a reputation of professionalism and integrity by keeping everyone informed and prepared.  Get to the closing table on time without costing anyone money and you'll be a super hero.  Mess up and you'll have a lot of angry people to apologize to.

If the sale involves a short sale and one of the owners have died be sure to include a death certificate in the short sale package.  If a property is in probate bring in a probate attorney.  If the seller is involved in a divorce bring in the divorce attorneys.  Will one of the parties to the divorce stay in the house?  Discuss these issues with the title company. 

The title company has a corporate lawyer.  The title company's lawyer represents the underwriter not you.  Everything that the title company does will be to protect themselves from you, potential losses and future law suits.  Do not depend upon the title company's lawyer to give you advice that is in your best interest.

The title company will order a title exam.  A title exam is a review of the county public records connected to the property and the owners of property.  The title company will issue a title commitment at the closing, but you won't receive it until 30 days after the sale.  The title commitment prior to the sale will includes a list of all items that are required to clear the title.   If there are outstanding mortgages, judgments, liens, real estate taxes due the taxes must be satisfied.  Sometimes a corrective document will need to be filed to clear title.  A seller may be required to produce documents to clear the title.  A title problem is called a cloud on the title.  A title agent may ask for a copy of a discharged bankruptcy.

A title commitment will list deed restrictions such as subdivision or plat restrictions.  The real estate agents will review the title commitment so that they know what needs to be done to clear the title for closing.  The seller's agent and the buyer's agent should help the title company gather documents from their principal to ensure a smooth and on time closing.

A seller should talk to the title company about judgments, liens, lis pendens (law suits pending), auto liens and repossession and a pending foreclosure.  There have been instances when a property was foreclosed on the day of a short sale closing or a few days before a real estate closing.  Prepare and anticipate issues so that this does not happen.  Discuss wage garnishments, deficiency judgments and back child support that affect a seller with the title company.  A judgment will usually become a lien on the property.  Some judgments are good for 10 years and renewable for an additional 10 years.  If the property is in probate tell the title agent.

A title company may ask for an affidavit of continuous marriage without interruption.  Tell the closing company if you have been married and remarried the same person (yes, this has happened) or have married someone else between marriages to the same person (yes, this has happened).  Talk to the title company if any of these events have occurred during the time when the seller or sellers have owned the property.

Tell the title company the critical dates on the contract:  effective date of the contract, dates that the 1st earnest money deposit is due, the 2nd earnest money deposit or additional deposits.  Tell the title agent if there are repairs that should appear on the HUD1 as a credit to the buyer. 

If the home you are purchasing is tenant occupied the title company will need an estoppel letter.  The estoppel letter includes information about the lease and the security deposit.

A seller insures clear title on the day of closing.  Clear title means that no party other than the buyer and the buyer's bank have any claim to the property.  A cash buyer I once worked with decided to purchase outside of Key West FL.  He was an unrepresented buyer which means that he did not have a real estate agent.  This cash buyer did not purchase title insurance.  A few months after he purchased the property he learned that the seller got a $250,000 loan against the property a few days prior to closing.  That loan was a lien on the property that this cash buyer now owes.

The seller pays for the seller's title policy.  In Key West FL and the Florida Keys the seller's title policy is based upon a percentage of the purchase price.  A buyer pays for the buyer's title insurance policy.  In Key West FL and the Florida Keys the seller's policy starts at a minimum cost of $1,350 for a $250,000 home and then goes up from there.  In Key West FL and the Florida Keys the buyer's policy is typically a fixed price of a few hundred dollars.  

A buyer's agent may recommend that a buyer agrees to pay for the seller's title insurance policy.  A buyer who writes an offer and agrees to pay for title insurance will have an edge over a standard offer that is the same price.  The buyer's offer will be more attractive.  Paying for the title policy also allows a buyer and the buyer's agent to choose where the closing takes place.  Choosing the title company will ensure that the title company is responsive, ethical, experienced and a competent title company that will close on time.  Alternatively a buyer may offer to split the title insurance 50/50 with the seller.  

If a buyer is writing an offer on a bank owned property the selling bank will have their own title company outside of Key West FL and the Florida Keys that the bank uses exclusively.  Sometimes a selling bank will allow the buyer to use their own title company if the buyer agrees to pay for title insurance (good investment).  A cash buyer can make their offer more attractive to a selling bank by including an extremely large deposit, no inspection period, or a 1 or 2 day inspection period, and a closing date that is 5 to 7 days from the effective date of the contract.  Although a selling bank's out of town title company cannot typically close in less than 30 days an offer is more attractive if the buyer offers to close in 5 to 7 days.  Most bank owned properties are priced below market.  If you expect to be the winning bid in Key West FL and the Florida Keys you will generally need a full price offer or an over full price offer.  

If this will be a mail away closing tell the title company.  If the closing will be a mail away outside of the US tell the title company.  If the seller is a foreign national the title company may need to coordinate an appointment at an Embassy.  It can take up to 2 months to get an appointment at an Embassy.  A seller may have a 2+ day journey to get to an Embassy.  Plan ahead.  Think about the potential issues before you write the offer.

The title company will need the seller's loan number and social security number to get the pay off from the bank(s) and other parties to whom money is owed.   Get the loan number and social security number from the seller as soon as the contract is signed.  It typically takes 14 business days to get a pay off letter.  The title company will request a mortgage pay off, tax liens, judgement, mechanics liens and Notice of Commencements.  

The title company will order an estoppel letter from an HOA and or a condo association immediately.  A buyer pays for an estoppel letter.  Condo associations typically charge $150 to $400 for an estoppel letter.  Condo association approval may take up to 30 days.  Plan the closing date accordingly.  Sometimes there is both an HOA and a condo association or multiple associations for a single property.  

The HOA or condo association estoppel letter will include information about maintenance dues, fees that are paid or unpaid and special assessments.  The title company will find out how many associations there are.  The buyer's lender may request a copy of the insurance carrier and insurance policy for the association.  

An association may deny approval to a buyer if the buyer has bad credit, insufficient income, a criminal record or too many people in their household.  

A buyer's lender may refuse to fund the purchase of a condo-tel (condo that is now a hotel) or a condo with 4 or fewer units.  A buyer's lender may refuse to fund the purchase of a condo that does not have adequate reserves, is facing litigation, has too many foreclosures or pre foreclosures, has too many delinquent owners or too many tenants.  There are only 2 FHA approved condos in Key West FL.  There are no VA approved condos in Key West FL. 

The title agent will order a municipal lien search.  A municipal lien search will list open permits, which are not covered by title insurance, code violations and liens for code enforcement actions, outstanding taxes and outstanding water and electric bills.  Taxes are paid in arrears which means after they are due.  The buyer and seller prorate expenses which means that each party pays their fair share depending upon the day of closing.

Code enforcement liens result from actions that jeopardize the health, safety or welfare in a community.  Code enforcement liens can be the result of building or renovating without the benefit of a building permit, a dirty pool, too many vehicles, broken down vehicles, abandoned vehicles, vehicles in an area that are not permitted in a subdivision, an over grown lawn, maintenance issues (broken windows), trash, debris and noise such as a barking dog.  

Code enforcement liens typically accrue based on a daily fee of $50 to $250 per day.  I have seen a lien that was $500 per day.  Some foreclosure properties are the result of code enforcement actions.  I have had properties listed in my real estate office that have $250,000 to $500,000 code violation liens.  A cash buyer can purchase a property subject to the lien and this is fairly common with foreclosure properties.  

The title company will order a survey and elevation certificate if the buyer is getting a mortgage.  A survey will reveal easements, set backs, encroachments by fixed objects such as a pool, a roof, a home, fence, a shed, a septic tank or aerobic system and a water line or well.  An encroachment will need to be remedied prior to closing.  Encroachment remedies include a variance, an after the fact building permit, removal of the offending structure, an agreement with a neighbor that may include a purchase or an easement. 

Sometimes a buyer can use the seller's old survey and elevation certificate.   It's a good idea to ask a seller for a copy of their survey and elevation certificate.  A survey and elevation certificate costs nearly $900 for a single lot.  The cost is higher if the home is on a double lot or larger parcel of land.  Some title companies may require that the survey is less than 2 years old and some will allow a buyer to use an original survey if the seller signs an affidavit that there have been no changes to the property since the survey was done.  The buyer's insurance company will determine whether the current owner's elevation certificate may be used by the buyer.  

A buyer will benefit if the buyer's agent asks for a copy of the survey and elevation certificate when the offer is accepted.  Alternatively, include the request for the survey and elevation certificate as a condition of the offer as long as you are not competing against other buyers for the property.  If there are multiple buyers a small request can result in another buyer's offer being accepted and loss of the property.  Don't take chances when there are multiple buyers competing for the same property by making a small unimportant request a condition of the contract.

A cash the buyer will ask the title company to order the survey and elevation certificate because it will not be automatically be ordered.  The survey is needed for the title commitment and title (insurance) policy.  The elevation certificate is needed for the insurance company.  If a survey is not ordered the title commitment will have an exception in the title insurance policy.  An exception means that the item is not insured. 

If there is a power of attorney for the buyer or seller give it to the title company as soon as possible.  The title company needs to review the power of attorney for accuracy and durability.  A general power of attorney may be used for a transaction and may allow the person to sign an agreement to sell a parcel of real estate or sign a sale and purchase contract.  A durable power of attorney allows the person to sign off just like they are the seller.  

If the seller is a foreign national be sure to add a FIRPTA addendum to the contract.  If the buyer is a foreign national send the buyer to their a CPA and an immigration attorney.  Some buyers cannot get back into the country after a sale or cannot get back into the country for a real estate closing if the proper steps have not been taken.  It is imperative that a buyer works with an immigration attorney to avoid unnecessary problems.  If the transaction is a short sale that involves a foreign national get an immigration attorney involved. 

Remind a seller who is a foreign national that 10% of the purchase price will be escrowed for taxes even if the sale involves a 1031 exchange.  If the IRS approves the Withholding Certificate (90 to 120 days) the funds will be released to the seller.  If the sale involves a 1031 exchange be sure to coordinate with the qualified intermediary (QI).  The closing date can cost a seller more money.  Plan ahead.  Purchasing the new property after the sale of the current property could cost a seller $12,000 or more.  

The title company will coordinate the closing date with the buyer's lender.  The buyer's lender will need a copy of the title commitment, the survey, a copy of the insurance policy, a 24 month chain of title, the HUD1 (detailed receipt of the closing debits and credits) and wiring instructions.

Prior to closing the title company will order an updated mortgage pay off, confirm that all of the documents that are required to clear the title are in the file, confirm that the seller's documents are prepared, ready to be mailed, emailed or ready for the local closing.  The title company will order an updated title search and confirm that there are no new items, review the survey, confirm that the buyer's insurance is approved by the lender and confirm that the lender's mortgage package has been received.  The title company will review the HUD1 and confirm that the HUD1 has been approved by the mortgage broker, the lender, the real estate agents, attorneys, the asset manager if the property is bank owned and the bank negotiator if the property is a short sale.

The title company will email the buyer's agent and buyer the Wire Transfer Instructions.  Wiring Instructions include the bank name, account number and routing number where funds will be sent for the real estate closing.  The buyer will wire transfer funds needed to close a week or a few days before closing.  At the very minimum the buyer will transfer funds the day before closing.  Do not wait until the last minute.  Especially if the closing is at the end or beginning of the month when title companies are busiest.  A closing could be delayed which will have a domino effect on events which will likely cost one or all of the parties money. 

When transferring money to the title company include the subject property address, the buyer's name and or a file number.  Some title companies receive hundreds of wire transfers each month.  A personal check is never accepted at a real estate closing.  A personal check is never accepted for the earnest money deposit(s).  In the past it was common practice to bring a cashiers check to closing.  Wire transferring funds is how it's done now.  

A title company may provide better service if the closing happens in the middle of the month.  If you are a high maintenance buyer or seller that requires a lot of attention you may have a better experience if you close in middle of the month when there is less pressure on the title company and the closing agent.  

A buyer may choose a closing date to coincide with the termination of a lease or to decrease the upfront cash needed for closing costs.  A closing date late in the month will decrease the cash needed to close.  Usually a buyer with very little cash is a first time home buyer.  First time home buyers typically purchase homes at the lowest price point available.  If the purchase price is low a closing date at the end of the month will mean that the pre paid interest could be less than a hundred dollars or maybe a few hundred dollars.  Depending upon the purchase price, a real estate closing at the end of the month may have a negligible or a significant impact on the buyer's closing costs.

Rent is typically more expensive than pre paid interest.  Most buyers should give more consideration to the lease termination date than to the pre paid interest that will be due at closing when looking for ways to save money.  

Moving a closing date does not technically save a buyer money.  Moving the closing date 'shifts' when interest is paid.  You either pay now or you pay later. 

Many first time home buyers need every penny that they have to pay for closing costs.  A closing date late in the month may help a cash strapped buyer decrease pre paid interest collected at the real estate closing.  When you pay pre paid interest you almost always skip the next mortgage payment.  You either save the money at closing or save the money when you skip the next payment. 

First time home buyers and other cash strapped buyers are usually getting an FHA loan.  If a buyer is getting an FHA loan the buyer will be required to pay pre paid interest for an entire month no matter what day the loan closes on.  If you are getting an FHA loan choose the most convenient day to close.  

Typically a buyer saves money if they put down an additional 1.5% and are able to secure a conventional mortgage.  The mortgage insurance premium (MIP) is fixed for an FHA loan and varies with a conventional loan.  If you have a high credit score and are getting an FHA loan you'll pay a higher MIP than you would have paid if you had a conventional mortgage.  

You'll need a higher credit score to qualify for a conventional loan.  If 2 people are purchasing a property the person with the lowest score will be the one that influences the interest rate.  An FHA loan requires a 3.5% down payment.  A conventional loan requires a minimum of 5% down payment.

A buyer who is considering paying 'points' or a pre payment penalty should consult their CPA and tax attorney.  Points on a mortgage is pre paid interest and may be tax deductible depending upon a buyer's financial situation.  A pre payment penalty is pre paid interest and may be tax deductible depending upon a buyer's financial situation.

Prepaid interest is collected by the lender to pay for interest due for the remaining days of the month.  Pre paid interest is calculated by multiplying the daily interest rate (per diem rate) by all of the days left in the month.  The days left in the month start on the day that the loan is funded by the buyer's lender.  

Mortgage interest is 'paid in arrears'.  Mortgage interest that is included in a mortgage payment is paid after the interest is due.  The bank has 'earned' the interest in the month prior to the mortgage payment and interest due date.  A payment made in February is for interest accrued from January 1st to January 31st.  

A home purchase is funded on the day of closing if everything goes according to plan.  Everything does not always go according to plan particularly when purchasing a bank owned property.  

When you refinance you should close on a Monday or Tuesday.  If you refinance on a Friday you will loose the Saturday and Sunday and pay double interest on the days when the loan has not yet funded.  When a home owner refinances a home the loan is typically funded 3 days after closing excluding weekends and holidays.  If you are refinancing out of an FHA loan schedule the closing date as close to the end of the month as possible.

The real estate office holding an earnest money deposit, or the attorney for the real estate office holding the earnest money deposit, will wire transfer the overage to the title company a minimum of 1 day prior to closing.  An example of an overage is an earnest money deposit of $100,000 and a real estate commission of $10,000.  The real estate office would wire transfer $90,000 to the title company a minimum of 1 day prior to closing.

The buyer and seller will bring 2 forms of identification to a real estate closing.  A drivers license must be brought to closing.  The second form of identification should have a picture.  The second form of ID can be a passport, a city or county identification card with a photo or a military ID.  

A closing can take place anywhere.  A real estate closing can happen at the title company, a real estate office, a law office, a person's home or a person's office with a mobile notary.  A mobile notary typically charges $150.  

Some mobile notaries are title agents.  Some mobile notaries are real estate agents.  Some notaries are neither.  A real estate agent will not typically be able to explain closing documents.  Most of the time the mobile notary knows little or nothing about the closing and mortgage documents.  If the mobile notary does not understand the documents you can schedule the title company to have a conference call with you and the mobile notary.  If a mobile notary is coming to you ask the title company if the person is a title agent.  If the mobile notary is not a title agent I recommend scheduling a conference call closing with the title company.

In the past a seller and or a buyer would fly to the location of the real estate closing.  That is not necessary.  A closing can be done by mail with a mobile notary.  In the past the real estate agents, the buyer and the seller all sat down together.  That does not happen anymore.  Typically the buyer and seller schedule a closing time on the same day that is convenient to each party.  Sometimes a buyer or seller will sign a day or two before the closing if they are in different areas of the country or have other obligations that prevent them from attending the real estate closing on the scheduled date.

After the real estate closing the title company will confirm that all final disbursements have been made.  The title company will confirm that the HOAs and the condo associations have been paid and that mortgages, judgments and liens have been satisfied.  The final satisfaction of the mortgages and liens are then recorded on public record.  The file is then audited and scanned for storage.  The buyer will typically receive a copy of the title commitment 30 days after closing and a copy of the deed 90 days after the real estate closing.

It is possible that a buyer will not receive the keys to their new home on the real estate closing day with many bank owned properties and with some traditional sales.  The seller may require verification of the lender funding prior to releasing the keys.  A delay in key delivery is typically 24 hours, but I have seen 72 hour delays on a few occasions.  The delay could be longer if the real estate closing is at 5 pm on a Friday.  

Not receiving keys at the real estate closing can cause an unpleasant ripple effect.  It can be extremely frustrating for a buyer who has coordinated move out dates, purchased new furniture, scheduled a delivery date for furniture, has all of their worldly possessions in a moving truck, scheduled moving staff or who have friends and family on standby who may have requested time off from work or hired baby sitters and possibly ordered food that has been scheduled for delivery on the closing day.  Plan ahead.

A buyer and buyer's agent should be certain to discuss the possibility of buyer not receiving the keys at closing with the title company and the buyer's lender if the purchase involves a bank owned property as well as a traditional sale.  There is nothing that can ruin the goodwill in a real estate transaction faster than a seller or seller's agent refusing to release keys to a buyer on a tight budget with a packed moving truck who is expecting to sleep in the new home on the night of closing.  A buyer should transfers funds to the title company a few days early to avoid a delay in receiving keys to their new home.

A buyers agent will give Service Provider Sheet so that the buyer has all of the contact information that you need to schedule your trouble free move.  Schedule the water company turn on order a few days prior to closing so that you have water on move in day.  The electric company in the Florida Keys  will require a copy of the deed before they turn on the electricity.  Keep this in mind if you are scheduling a 5 pm Friday closing.  The electric company will need the turn on order by 3 pm to turn on the electric on the same day.  A buyer and buyer's agent should coordinate the turn off and turn on date with the seller's agent to make certain that the buyer has electricity and water on the day that they will move into the home.  Remember to bring toilet paper, paper towels, hand soap, snacks and water on move in day.  

A buyer should plan and pack a move in box that is easily accessible on move in day.  The move in box will have all of the items that you will need on move in day in one place:  bathroom supplies, shower supplies, kitchen supplies, move in food or a food plan and a few days of clothing for move in week.

30 days after closing the buyer should receive the title docs.  Scan the documents and email a copy to yourself.  Save all of the closing docs in a folder in your email.  Save a copy on a jump drive and place the originals in a safe place protected from flood, hurricanes and other natural disasters.  If you do not receive the docs 30 days after closing call the title company or your buyer's agent.

Be sure to save your insurance documents in the same manner described above.  If there is a disaster take pictures on the day that you see the damage.  Save a copy of the pictures in multiple locations.  An insurance company may deny a claim if you do not have pictures of the damage.

Keep a copy of your title policy in an easy to access spot.  If you sell your property, depending upon how long it has been since you purchased the property, you may receive a discount on title insurance.  You will make the closing smoother if you give a copy of your title policy to the title company even if you are not eligible for a discount on your title policy when you sell.  

Congratulations!  May you be blessed with a smooth closing, a happy home and healthy family!