Andi Grant's Blog - Everyday Real Estate with a Twist

"If we were to make an offer......"

.....and so began this morning's question from a buyer. He asked 4 different questions, one of which is "how binding is the offer?"

Although I give a sample purchase contract to buyers at our first meeting, and talk about how offers are structured, it's often not until they are actually contemplating making an offer that they are ready to absorb the information. I want my clients to think, to ask questions, to fully understand the process.

My answer to "how binding is the offer?" varies from case to case, but includes this explanation:

• I structure a contingency period into the offer, typically 10-17 days.
• We make the offer contingent upon loan approval (which includes an appraisal contingency), and property condition approval.
  
• If appropriate, we also have a contingency for approval of Homeowners Association documents, title conditions, or anything else that needs further investigation. Sometimes the purchase might be made contingent upon the sale of your current property.
  
• If your offer is accepted by the seller, you'd have the contingency period (perhaps 10-17 days) to gather whatever information you need to decide if you can move forward with the purchase
• If obstacles arise during your investigation, you have 3 choices: 1) accept them; 2) ask me to try to renegotiate the contract; 3) decide this isn't the right property and cancel the contract
• If you choose not to remove your contingencies and cancel the contract, your deposit would be refunded, and you're free to continue your search.

The short answer: it's binding once you remove your contingencies.

I love answering questions like this for buyers. I want them fully engaged in the process. I want them to fully understand what they are undertaking.

After all, a home purchase is the biggest investment most people ever make.

 

--- Just another benefit of living in San Mateo County and the Silicon Valley!

Lottie Kendall, Realtor

Today | Sotheby's International Realty

San Carlos, California, 94070

DRE#01215160; 650-592-0747-direct; Lottie@LottieKendall.com; www.LottieKendall.com

Peninsula Living: San Mateo County and Silicon Valley Real Estate

 

I admit it...I had dug in my heels. The other agent had too. We were locked in fierce combat for our clients. My buyers were frustrated and the sellers were being very unreasonable. At least that's what WE thought.

I have buyers who were buying a very nice home and using FHA financing. The price was right, the location was right. Everything in the home passed the FHA appraiser except one small problem......

There was a small section of graffiti on a bedroom closet door.

It needed to be repainted for the home to pass FHA standards. Don't ask me why FHA cares what is on a wall as long as the home in livable (that's the standard) but it was a requirement. THE ONLY ONE!

I assured my buyers this wouldn't be a problem, and then it became one. The sellers refused to consider it. WHAT? You're moving and you won't repaint a closet door?

They wouldn't.

They were using a new agent and all she did was continue to tell us it was being sold "as-is". I tried and tried to explain this was a simple thing, that we would pay for it.....do it. She just said the sellers were refusing. This deal was going down fast! And I just couldn't figure it out. What was the big deal.

My buyers began to assume the sellers were just jerks. I guess I assumed the same thing. We were at the end, we couldn't get a waiver for financing and they had to use FHA. I was banging my head against the wall.

Then last Saturday morning the buyers went out to the home. They were just sitting in their car looking at the home they wanted so badly. The sellers recognized them and invited them in. And they all started talking. The buyers explained that they just didn't know what to do....and that they loved this home, but couldn't get the loan. The sellers did not know this! Then they explained their position.....and it blew us all away.

Turns out the sellers had been foster parents for many years. Children that came and went....until one who stayed. Tough kid, tough life. And his first weekend at "home" he drew the graffiti on the closet door. Over time this couple adopted this kid, but no one ever removed the graffiti. She said it was a benchmark of how far this kid went from where he started. He was 13 when they got him, and he graduated high school, and then 2 years of a Junior College, became a Marine.....and died in combat.

The sellers could not paint over the door....they understood that someone would....but they couldn't do it.

The buyers were touched, and offered a solution!

The buyers left with the door. They spent the weekend with a friend who is an artist/painter. Yesterday they returned with a framed piece of art for the sellers. The artist had taken the door, trimmed it to size, thinned out the wood it was on, and framed it. The sellers could now take the memory with them....needless-to-say they were happy to replace the closet door.

I certainly learned a lesson! Sometimes we all get so stuck in our position that we don't remember that we are all people, and most are pretty reasonable.

 Karen Fiddler
Broker/Associate
The Fiddler Realty Team/eVantage Real Estate
Lic # 01494165

www.searchfororangecounty.com

Serving all of Orange County, California Real Estate!
Buyer's Agents, Listing Agents, Short Sales, REOs, Equity Sales, Investors

SEARCH THE MLS HERE

 

When hiring a contractor to perform a service on your home, ask for proof of liability insurance. Furthermore you should ask if they are licensed and bonded.  If they are, get a copy of both.  Unfortunately you aren't done yet because proof of insurance isn't proof!  

I have hired contractors to work on my property who have furnished proof of insurance who were not covered due to a lapse in insurance policy.  Just because they have a policy doesn't mean they paid their premium.

Some contractors are behind on their insurance premium payments and their insurance is not in effect.  I have caught many contractors in this predicament and I force them to bring their policy current before starting work.  If they are not willing to, then they are not stepping foot on my property.

Bonding: This is in many cases your only option to get reimbursed for contractor negligence.  Although the contractor may have insurance that is in force, there may be  stipulations in their insurance policy that won't cover damage caused by negligence.  A contractor must exercise some care and diligence for insurance to be willing to pay.    

Example:  Roofer has liability insurance.  Roofer fails to tarp the roof before laying tar paper.  Suddenly it begins to rain.  The home and personal contents of the home owner sustain $25,000 of damage.  The insurance company will not pay because in this particular policy it states that the roofer is required to adequately cover the area from the elements.  The roofer failed to do so and as a result the damage is not covered.

Insurance is there to cover the cost of damage due to accidents but may not cover negligence.  If the contractor has no assets then a bond may be the only chance you have of recovering losses. Your states contractors licensing board may have bonding for the contractor.  Make sure the bond is still in effect.

Do not be afraid to call their insurance provider, contractors board and past clients to ask questions.  After all It's your responsibility to protect your home, money and belongings.

 

 

North County

*1902 Wright St 2nd floor Carlsbad CA 92008

New Office!

2990 Jamacha Road #136  El Cajon CA 92019

Nevin Williams NMLS #69651

*Not a licensed office location

Improvements that SELL!!

Let's face it selling a home in today's market can take something many of us don't have - Time.  While you're anxiously awaiting that call with an offer, you may be feeling helpless and stressed, wondering what can I do?? Well the answer is simple…HOME IMPROVEMENT!

Now wait, I can hear you thinking … I'm not spending one more dime on this place. There are A LOT of homes on the market, and you want yours to sell right??? If you're like most of us you have a mortgage payment and every month you don't sell is payment.  So the question is not if you can afford to fix up your home to sell but if you can afford NOT to fix up your home to sell.

Now that you're with me, lets talk about quick or cheap fixes….NO big spending because you won't recoup that money!!  Take a honest walk around your house and make a list of minor repairs, if you don't see anything ask your realtor. 

Improvement ideas for your list:

Broken Fixtures – Light switch and outlet covers are CHEAP!!

Change Light Bulbs – Really, how much is a light bulb (even if you don't use that room).

Fix leaky faucets –Just fix it, it costs you little to nothing!

Doors that stick or won't shut - Better to fix it than leave a negative impression.

Cracked caulking – Re-caulking sinks and tubs give a crisp clean look.
Locks & Door Knobs - Tighten existing knobs…or splurge on an upgraded door knob and deadbolt for the front door.

Paint Interior Walls – We all have our own taste in colors; now that you're ready to sell change the paint to neutral colors to attract more buyers.

Paint trim and doors –Give your home a fresh clean look from the curb.

Tidy up the Yard - Trim the bushes, weed the flowerbeds and cut the grass. Pick up the kids toys and make your yard look inviting.  Most of this will just take time and not cost a thing!

Pressure wash the house and windows - Let's face it nothing makes a house look cleaner than cleaning it!

Just keep in mind, if it sells your home faster and doesn't cost much,you may not get your money back but keep from paying a lot of mortgage payments that add up quick!!

Fill us in on any cost-effective home improvement tips you may have.

If you're interested in buying Real Estate in South Central Virginia you can visit our main website or Subscribe to our Email List and choose from listing and local marketing reports.

If you're considering selling your property, we would love to show you how our extensive internet marketing allows State Wide to remain #1 in South Central Virginia Real Estate Sales year after year!

 

 

It may sound silly to you but your house actually talks to the Buyer.

Your house is sending messages from the moment the Buyer arrives.

So what do you think your house is telling the Buyers behind your back.

Are they stories of a warm welcoming home or dirty little secrets you would prefer not to tell?

When a Buyer pulls up in front of your house does your curb appeal say 'I'm a well maintained home'? My gardens are trimmed, my paint is fresh, my eaves are clean and my roof is in good shape are all messages that reassure the buyer.

A home with over grown shrubs, weeds, tired paint, cracked drive and/or snow covered walkways tell the Buyer you ignore problems so this house may have major ones.

Does your house look like a Frat house or just plain tired?

When they open the door does pet odor greet them?

There are many non-pet owners out there looking and your home should appeal to them too.

Pet beds and areas where accidents have happened can hold odors you have become used to and no longer notice.

Kitty litter and bedding for caged pets can also add to the scent of your house.

Make sure your house is saying nice things when the buyers visit.

Do those small repairs you have been putting off.

Update your home as close to move-in condition as your budget allows.

Present a well put together product that will appeal to the widest section of Buyers.

Highlight those special features of your home.

Make the Buyer's short list of houses they want to see again.

Compete with the other homes on the market.

Be the home that gets the offer.

The one the Buyer wants to make their home.

Make sure your home is saying only great things about you behind your back.

 

 

 

 

 

Serving Burlington,Oakville, Milton, Hamilton & surrounding areas.     905-467-5353

 

 

 

 

 

 

 

How an overpriced listing affects buyers!

Broker Bryant has written a little diddie that got me thinking: Some Little Diddies To Help You Be A Better Lister.

At first, I read it as "better listner" -- which might not be a bad thing for SELLERS!!

Realizing BB was talking about listings, and as an Exclusive Buyers Agents my brokerage does not list properties, I thought about how overpriced listings AFFECT BUYERS!  And they do!!

1)  Priced above market = Priced above my clients' price range:  My clients have a budget.  They are, typically, pre-approved for a loan and as the best Exclusive Buyer Agent this side of the grand 'ol Miss, I actually try to get great deals for them.  This means, if they are pre-approved for $250,000, we look at properties in that comfort range . . .

If a seller has placed a home on the market to "test the waters" or assume "they can always offer less" -- that overpricing takes away my clients' motivation to see your property.

2)  Priced above market = Making the other listings look good:  Happens all the time when I tour with clients.  There's a few overpriced properties in the mix.  Of course, we might not realize this ON PAPER (going off the info on the listing sheet).  But, once we get to the property we see just how much "puffery" the listing agent / sellers are doing. 

There are OTHER homes on the market along with yours.   Your overpriced listing just made the house two blocks away look REALLY GOOD!! 

3)  Priced above market = Scratching it off our  list:   If the properties in the buyers' price range have sufficient inventory, guess what?  We're not going to assume your $25,000 above current market is a viable property to tour. 

Buyers and their agents aren't mind readers.  If you told your listing agent "we will take less" don't assume anyone else knows this!

4)  Priced above market = Over all annoyance:  Don't expect "feed back" on your listing to provide you with the correct pricing.  If the listing agent didn't run the comps correctly, doesn't have their finger on the pulse of the market, don't expect buyer agents, or buyers, to price the property for you.

The listing agent who prices above market, then calls for "feed back" is annoying.  The homes currently on the market are YOUR competition, not the buyers. 

5)  Priced above market = Missing the market:  Added market time can be the kiss of death.  Buyers are not coming out in droves in our local market.  With pricing, the idea is to capture the market, not give buyers an excuse to cross a property off the list.

Prior to listing a property, many sellers have talked with several listings agents.  If they list their home with the agent with highest list price, they are NOT LISTENING . . . TO THE MARKET!   

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~ Representing Buyers Since 1999 ~

Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor®

Principal Broker/Owner  ~ EBAPortland, LLC
YOUR Exclusive Buyer's Agent

(503) 810-7192 / Carla@CarlaHomes.com

CHECK OUT www.EBAPortland.com for Home Buyer TIPS! 

 

All rights reserved ©

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Dear Monsieur Seller ~

I understand that your home has only been on the market for 5 days and you already have an offer, but that doesnt mean that there will be a bunch more offers to follow as the weeks go on.

Yes I did hear you when you said "Well heck if we got an offer so fast then we must have underpriced the home, and so I am SURE we'll get a higher offer if we wait !"

But just maybe we got the offer because we did a terrific job pricing your home fairly, and prepared your home so well that the first people who walked in were extremely impressed !

So let's thank the buyer for the offer, and let them know we would like to work with them, and give them a counter offer.

I know you would like to just reject the offer and wait for the next two or three offers to come in, but the funny thing is, that in many cases, as the weeks go by, the offers (if they come) are often lower as more time goes by.

... and in addition, we still are not sure exactly why that other listing on your street has been on the market for almost 6 months.

So, with all that in mind, I strongly suggest you consider trying to work with this offer in your hand.

Your Loving, Caring Realtor,

ThatBritishAgent

 

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>> Dont miss other upcoming blog entries from "ThatBritishAgent" !

 

Sheldon Neal is a Realtor® with RE/MAX, specializing in Homes For Sale in Bergen County, NJ.

If you are looking for Bergen County Realtors, call local expert Sheldon Neal for all your Bergen County Buying & Selling needs !
Sheldon Neal ~ RE/MAX REAL ESTATE LTD.
cell:  201-481-2891
email: SheldonNeal@remax.net
website: www.SheldonNeal.com

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