Central Ohio Real Estate Market News

Entries categorized as ‘Home selling process’

Who holds the keys to your castle?

November 15, 2008 · 4 Comments

This is for those sellers who have moved to their new location - in another city or state - and left behind a vacant home that is for sale. Of course, the home will have some type of lockbox on the front door so real estate agents can show it.

What sellers may not consider are the key(s) they’ve given to others, perhaps a trusted neighbor or friend. When deciding who to give a key to, please consider this story of what happened to one of my sellers a few years ago.

My client was to leave on Saturday, over Memorial Day weekend, to drive to his new state. He asked me to stop by on Friday to give my stamp of approval that his home was cleaned, ready for the closing that was to occur on Tuesday after the holiday. I gave it my blessing and he was so proud of the great job he had done. We were all set to close … or so we thought.

The buyers, who were moving in from another city, had scheduled to do their walk-thru at 9:00am Tuesday morning, then they would go to the title company to close.

Around 9:15, I received a call from the buyer’s agent, screaming at me about what a mess the hometeens was. It took several minutes for me to get a word in, but I managed to tell her I would come right over. Here’s what I saw:

  • Plastic cups in EVERY room. Some were still filled with Orange Crush soda. Some had been used as ash trays, using the soda to extinguish the cigarettes. (thank goodness they didn’t set fire to the home!) Some cups were tipped over, spilling the orange soda on the white carpet. Several rooms had large orange spots on the carpet, including the stairs.
  • The whirlpool tub had soap scum lining the sides.
  • A window screen had been removed from a bedroom window and was laying, bent, on the floor.
  • The kitchen counters had multiple microwave entree trays, with crumbs all around.

I was shocked because I hadn’t a clue as to what had happened between Friday to Tuesday. My client was a very nice, soon-to-be-retired gentleman, and definitely not the type to purposely do something like this. I tried to call him, but was unable to reach his cell phone.

Fortunately, a neighbor saw the flurry of activity at the home, and came to tell me that he had seen the neighbor’s teen daughter going in and out of the home over the holiday. He also saw some boys sneaking in as well. AHAH!!!! It seems my client had told that neighbor what the garage door code was so she could put his trash out on Tuesday. The post-it note with the code, was stuck on their fridge. The daughter saw an opportunity to have a holiday party!

I called the police to report the break-in and vandalism so my client could make a claim on his homeowner’s insurance. He was able to get reimbursement for the new carpet that was required when the carpet cleaners couldn’t remove the orange stains. The police took the girl, and later her friends, to juvy and they were charged with the crimes. I heard they had to spend some time in juvy-jail.

So, sellers think about this story when you decide you can trust your neighbor to “watch” your home. You may be able to trust the parents … but perhaps not their kids … especially when hormones are involved.

Oh, yes … we DID close later that afternnon … just had to hold back some funds in escrow for the new carpet.

Read these related posts:

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Home selling process · Homes · Homes for sale · Realtors® · Safety · Sellers · Sellers

Selling your home over the Holidays

November 11, 2008 · 4 Comments

Can you sell your home over the holidays and STILL handle showings PLUS enjoy the festive events with the family? Well, yes, but a little pre-planning may help you get through it.

First of all, communicate closely with your real estate agent to let him/her know what your schedule will be, such as when you have parties or dinners planned. The agent can adjust showing instructions to accommodate that schedule. However, this might be the year to not fill the calendar too full, so you don’t miss too many opportunities to have the home shown.

christmasDon’t bring out ALL the decorations. Keep them to a minimum … the KISS system. You can still give the home a seasonal look, without adding to the clutter. If you typically put up a large tree, you might want to pass on that this year, since often the tree requires moving furniture closer together and may block a window view. Perhaps, you can instead buy a small (3-4 ft) tree to accent the area. You won’t want your rooms to seem cramped and small.

Another reason to keep your decorations at minimum is that you don’t want the buyer to get the impression that you’re ENTRENCHED until the end of the year. It’s mid-November now, so a buyer may want to move in BEFORE Christmas so they can spend it in their new home. Having a tree with some packages underneath, sends a silent signal that YOU plan to be in the home on Christmas morning.

Do buyers actually buy homes over the holidays? ABSOLUTELY, YES! The Friday-Saturday after Thanksgiving can be busy showing days. People planning to relocate from another area might be in town to visit family, and want to select a home during those days. Local people may have those days off work, so they can fit the showings into their schedule during their “vacation” days. The week between Christmas and New Year’s is often busy with showings. Many agents have stories about putting homes in-contract on Christmas Eve. One year, I spent the better part of New Year’s Eve presenting a contract to my sellers, writing up a counter offer, and getting the counter back to the buyer’s agent. We put it into contract by New Year’s Day afternoon.

Remember, buyers shopping over the holidays

ARE SERIOUS BUYERS!

Here’s another reason the buyer may want to actually close on the home before the end of the year. They may want the tax deduction for 2008, rather than risk changes to the tax laws with the new political regime, which is an unknown at this point.

The holidays can be stressful under normal situations. If you keep it simple, plan ahead, be flexible, you’ll get through it … and you just might get your home sold! Now, won’t that be a great present!

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Home selling process · Homes · Homes for sale · Sellers
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The financial mess … a true story.

October 16, 2008 · No Comments

In the past year, much has been written in real estate blogs or newspapers or on media web sites, about the HOUSING CRISIS and who is to blame for THIS MESS. Some say everybody shares some blame, and perhaps that’s true.

Ultimately, the buck stops with the buyer. They were the ones that wanted a house that was more than they could afford. They were the ones who decided to take on a mortgage payment that represented too high of a percentage of their monthly budget. They were the ones who didn’t plan for a rainy day with a savings account, or who didn’t consider what they would do if one of them lost their job or if they didn’t continue to receive increases to their salary.

When people ask me about how we got into this mess, I recite a situation that occurred several years ago. It really illustrates what occurred then and how it set the stage for so many failures.

A couple purchased a modest home for $137,000. They put 10% down leaving them with a mortgage of $123,000. Six months after living in the home they went to a major local bank to get an equity loan so they could by a new SUV - one that would have cost over $30,000. The appraiser for the bank said the home was worth $185,000. Based on this appraisal, the bank gave the couple a $50,000 home equity loan. So six months after buying a $137,000 home, they now owe $173,000 on it.

A year after they purchased this home, the husband had a new-job opportunity in another state. They set up an appointment with me to list their home. I always do a Net Equity Estimate to show sellers what their proceeds will be if they sell at such and such price. If the Estimate comes in negative, I make sure they have the funds to bring to closing, otherwise, because without those funds, the home won’t be able to close.

Naturally, the Net Estimate came in substantially negative. I covered the results with them. The first thing the wife said was that the equity loan was really a car loan. She didn’t understand that it was a lien against the home and would need to be paid off when the home closed. I then asked them if they had the thousands in cash to bring to closing. They didn’t. At this point the wife began to cry because it finally dawned on her that they were “trapped”.

  • They couldn’t take the new job because they couldn’t sell their home because they had no extra money to close.
  • They could sell the big SUV, but would be in the same situation of owing more than it could generate in trade-in value.

So what did they ultimately do, you ask? They took the new job in the other state along with the new SUV and walked away from their home leaving behind all the debt on it.

Who is to blame for this mess? Do you blame the buyer for being ignorant of good budgeting practices and for making poor financial decisions? Do you blame the appraiser for overstating the home’s value so he can continue to get jobs from the bank so he can make his own mortgage payments? Do you blame the bank for being greedy in wanting to make loans, so they perform well for their stockholders? Do you blame the stockholders who want to see increases to their portfolios and retirement IRA’s?

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Sellers

The realities of today’s real estate market in Central Ohio

October 14, 2008 · No Comments

It’s the middle of October and we need to consider the cold, hard realities of selling or buying homes. There’s reason for buyers to be optimistic. Sellers, on the other hand, need to be realistic … in order to be optimistic. It’s time for both to take off the rose-colored glasses and get moving in a smart direction. I’m not going to review the issues in the economy and financial markets … you get that from the media on a daily basis. However, because of those events, here’s what you need to do RIGHT NOW!

Sellers

  • It’s October, and buyers will want to be in their new home before the holidays. That means your home must go into contract in the next couple weeks. If you miss that window, your home is apt to sit until next March.
  • If your home sits till March, you’ll sell it for a lower price - almost guaranteed. You might as well lower it now to get it SOLD!
  • If your home has been on the market for 3 months without an offer, your price is too high. Buyers are telling you that “something” is wrong with the home and they’re not willing to pay your price for it. You’ve got to lower your price to the point that a buyer is willing to overlook whatever the short-coming is. Remember, it’s how your home compares to other homes they’ve viewed and whether it offers a value versus those homes.
  • If you can fix the “short-coming” … fix it. If you can’t … lower the price!
  • Buyers don’t care what YOU want to sell it for.
  • Even if you have to lower your price, remember the home you want to buy will also be lower in price so you’ll still benefit.

Buyers

  • Visit your lender and get Pre-Approved first before you start viewing homes. The rules for issuing mortgages are totally different now than even a few months ago. You need to know how much mortgage you’ll be approved for. With that amount, plus your down payment amount, you’ll then know what price range of homes you can view.
  • Don’t view homes you can”t afford in the hope that you’ll be able to buy the home for the amount you CAN afford. That just wastes everybody’s time, including yours and it is so disappointing when you don’t get the home.
  • Buy a home to live in and enjoy for several years. You don’t buy homes the way you buy stock. Yes, you hope to have it increase in value, but your primary focus should be finding a home that meets your needs for location, schools, comfort and enjoyment.
  • Home prices are generally what they were in 2003-2004. Interest rates are still at historical lows. Inventories are down, but there are still lots of homes to select. If you have a down payment, it’s a good time to buy.
  • If you have a home to sell before you can buy, get that home in contract first. Don’t expect the seller to accept an offer from you that requires the seller to wait until your current home finds a buyer.

The GOOD homes that are priced right ARE selling to SAVVY buyers who are taking advantage of this good time to buy. Both parties just need to be realistic about their wants and needs. We had a slow 2-3 weeks with the hurricane and the financial market uncertainties, but showings have begun again so now it’s critical to take advantage of the timing.

Sellers … lower your price!

Buyers … buy now!

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Homes for sale · Sellers
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Radon Testing is common in central Ohio

September 30, 2008 · 2 Comments

One of the inspections home buyers usually schedule in central Ohio is a test for radon. Radon is a naturally occurring radioactive gas produced by the breakdown of uranium in soil, rock and water. The test is done during the inspection phase of the Purchase Contract. The test will cost the buyer between $110 to $150, depending upon the company the buyer hires to do the test.

The inspector will place a small testing device (silver box in photo) in the basement for a 48-hour period. The device will periodically sample the air. At the end of the test, it will produce a graph of the readings, then average them for each of the two 24-hours periods. The overall average is then used to determine whether mitigation is recommended. The EPA suggests that people not have long-term exposure to radon readings at or above 4.0pCi/L. (non-scientific people shorten this to “4 pico curies”.)

If the reading suggests mitigation, then a company is hired that does such work. Costs vary according to the layout and size of the basement and the subsequent amount of materials required. The least expensive that I’ve seen a mitigation cost is around $1000.

In doing the mitigation, the company will seal the sump pump with a special cover, cover any crawl space with heavy plastic and perhaps, caulk cracks in the concrete floor. As shown in this photo, a plastic pipe will run from the pump to an exterior wall, then be extended to the exterior.

On the outside a fan will be installed that will be sucking out the air from the spaces that are likely to be contributing to radon entering the home. This is primarily the sump pump but a pipe may also be installed under the plastic in the crawl space.

The outside fan and piping is usually installed in a somewhat hidden location if possible. Sometimes there are options on placement of this equipment, so you want to discuss with the mitigation company what the location options are. Keep in mind that this fan runs all the time. While it’s not much louder than the fan on your furnace, you may not want to listen to it if it’s near your deck.

I’ve not included any of the scientific information on radon in this post. You can read to your heart’s content on this EPA page where there are many detailed articles. You can also view a U.S. map or an Ohio map (scroll down the page to see Ohio map) of radon concentrations.

Read more articles on home inspections.

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Home buying process · Home inspections · Home selling process · Sellers
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Home buyers … prepare for more scrutiny.

September 23, 2008 · No Comments

In this month’s REALTOR® Magazine, there was an article alerting us to a new direction some of the large brokerages are taking regarding the buyer’s financial approvals. Buyers, you need to be aware of this new direction prior to submitting a purchase offer on a home.

Our central Ohio Purchase Offer Contracts contain a paragraph regarding the date the buyer will provide the seller with a preapproval letter. The language in the paragraph is very specific as to what is to be included in the lender’s preapproval letter. Often times the preapproval letter that the lender provides is merely a form letter and upon close examination, doesn’t provide the exact info required in the contract.

Many times that preapproval letter isn’t sent along with the Purchase Offer. So the seller is being asked to enter into a contract with no knowledge of the lender or the type of loan the buyer will be using.

Sellers have the right to know who the buyer’s lender will be, what type of loan (Conv, FHA, VA), and whether the buyer is preapproved for the amount of the price of the home. In today’s financial market, this is extremely important as too often issues later arise with the buyer’s financing that cause the Contract to be terminated. That impacts the seller as they have taken their home off the market thinking they are in a bona fide Contract.

“We’re seeing a much higher incidence of buyers thinking they have financing and finding out either at the closing table or days before that the lender doesn’t have the money or has gone out of business,” says Jacelyn Botti, head of residential sales at Weichert Realtors® in Morris Plains, NJ.

Per the REALTOR® Magazine more and more brokers are working to “bulletproof” financing for buyers. One such brokerage’s program offers their sellers a “buyer’s verification”, which lets the seller request that buyers get a mortgage approval (at no cost) from the broker’s funding affiliate BEFORE making an offer on the seller’s property. If the buyers are approved, they are not required to use the broker’s funding affiliate, but it gives the sellers the added assurance that the buyer qualifies for a mortgage prior to entering into a Contract with the buyer.

From the seller’s perspective, this extra approval process gives the seller some assurances that a questionable lender won’t be doing some hocus-pocus financing. For buyers, while they may not care to go through the extra paperwork, it will offer a better chance that they will actually be able to go to closing OR it will alert them that they were originally planning to use a disreputable lender. This would be a good thing for both parties if the ultimate result is a completed transaction.

Buyers, if you want a better chance that the sellers will consider your offer, then …

  • Select a reputable, well-know lender. A local one is better (no online aggregators).
  • Don’t just get pre-qualified, get PREAPPROVED.
  • Send the preapproval letter with your offer.
  • Be prepared for the seller to ask for an alternative approval.

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Central Ohio · Home buying process · Home selling process · Realtors® · Sellers

Category 1 Hurricane hits Central Ohio

September 17, 2008 · 4 Comments

DAY ONE - Sunday

Well, now central Ohio doesn’t usually get hit with hurricanes. Whenever hurricanes hit Texas, we often get the remnants as heavy rain and some strong winds. Sunday was different. In addition to Ike’s winds, there was a cold front overhead with 110 mph winds. When the two mixed together, we ended up with 75 mph winds that lasted from around 3:00 in the afternoon until around 8:30 in the evening. Nearly 6 hours of that wind force is bound to do quite a bit of damage.

Lots of downed or split trees as the wind often pulled different sides of the trees in opposite directions. My neighbor’s street tree split off a large limb and it is laying in both our yards. Lots of damaged roofs. Cars smashed when trees fell on them. And nearly 500,000 AEP users out of electricity here in central Ohio. Over two million without power in all of Ohio. The governor declared a state of emergency since 84 of the 88 counties were impacted by the storm.

My brand new roof with shingles guaranteed up to 80 mph made it through in good shape. Not so, for many of my neighbors. In addition to losing large sections of shingles, some lost siding and one home behind me had a 20 ft section of gutter banging against the side of the home.

Many were unprepared for the storm as only strong winds were forecast. The Murph and I spent Sunday evening sitting in candlelight while I worked on my laptop for the hour or so that the battery lasted. I plugged my cell into my car to charge it up, but didn’t have any such accessory for the laptop. After checking in with my kids to make sure they were all OK, Murphy and I went to bed since there wasn’t anything else to do.

DAY TWO - Monday

The first thing I needed to do was to check on my listings to make sure they were OK. A couple had trees down but no damage to the homes. None have electricity. Thank goodness it’s not raining so we don’t have to worry about the sump pumps not working and flooding finished basements.

I was most concerned with my Worthington listing since Worthington with all its big old trees was hit pretty hard. On the way to my Worthington listing, I happened to  pass my office manager’s home. A very large neighbor’s tree is now resting on the back of their home. It was awful. Thankfully, they’re OK. My listing was OK … just a lot of debris that will need to be cleaned up.

Getting gas was a challenge. Many stations didn’t have electricity so those that did had lines of cars at the pump. I got into line and was about 3rd from the pump when they ran out of gas. Batteries were in short supply and ice was not to be found. Since we really didn’t have a warning that the winds would be this bad, people simply weren’t prepared.

I purchased an adaptor to recharge my laptop using the power supply in my car. I bought the last battery powered AAA weather alert radio/TV at Radio Shack. Now at least I can listen to something in the dark evenings. I also bought more candles and had to buy another flashlight in order to get DD batteries. At the grocery, I bought food that doesn’t need cooking. Did you realize that a lot of unhealty, but really good food doesn’t need cooking. ;-) Oh, well, I’ll worry about that diet later!

My Worthington office doesn’t have phones or electricity, so I spent a few hours at the Powell office gathering email, and doing necessary computer work for the homes I have in-contract.

AEP has reportedly called back most of the crews they sent to Texas to help out, plus, they’ve requested help from nearby states.

During the early evening hours, instead of listening to the sounds of birds, I heard the humming of generators and the razzey sound of chain saws. Other neighbors were cooking food on the grill to use it up rather than having to throw it out. Still other neighbors were walking their dogs and checking to see how fellow neighbors were coping.

At night, The Murph and I sat by candlelight again, but at least this time I had a radio to listen to. When it came time to go to bed, I noticed that my waterbed was no longer toasty warm. Yes, it’s one of the original kind - don’t laugh - bought back in the mid 80’s. I love my warm, comfortable waterbed but it’s not too comfy when the heater doesn’t HEAT! 

DAY THREE - Tuesday

News reports are saying that my area won’t get electricity restored until Sunday night. We’re hoping that they’re just saying that to prepare us for the worst. The accessory cord I bought for the laptop works fine but still the battery only lasts for a little over an hour. I may end up sitting on a chair in my garage with a cord plugged into the car. Could be a new kind of office.

I don’t have wash ‘n’ wear hair, so yesterday I bought some foam curlers in all sort of pastel colors. When I checked out at the grocery, the cashier looked at the travel pack and asked me what “those things” were. She was young with long straight hair so she wouldn’t understand. ;-) So, today I have a hair-do that LOOKS LIKE it was curled with sponge rollers. Oh well, better than flat hair!

The Worthington office is still without phones or electricity, so I went into the Powell office to handle the work. One thing I noticed was that traffic moved better through the stoplights that DON’T work than through the stoplights that DO work. Some of the agents said they are now staying with relatives who’ve had their electricity restored. There was the usual discussions of how we’re handling inspections without electricty in the home and some were dealing with insurance repair estimates to be held in escrow until after closing.

No matter what our own homes are like, we still need to meet the due dates of contracts.

When I got home in the evening, I had a nice surprise … my neighborhood’s electricty was on. There are now 16,000 homes in Delaware County without power. On the way home, I saw a crew from another state working on a transformer at Home Rd and Liberty Rd. Thank you to whatever state they were from.

DAY FOUR - Wednesday

I’ve been on the phone a lot so far today. People are starting to regain electricity, but still others will have to wait for the weekend. I’ve spoken with a couple agents I’m co-oping with and they either can’t retrieve their email via their broker’s system or they don’t have an office with electricity to get faxes and no fax in their home. We’re trying to work through it though and to stay in communication via our cell phones. One agent I spoke with “forgot” she had a landline she could use when her cell battery died. I did the same thing. We get so accustomed to carrying on our business the “new” way that we forget how to use the “old” way!

Delaware County is now down to 11,000 without power. The treed areas of Worthington are still not projected to have all power restored until Sunday. I spoke with another person in my office who said that in addition to the tree on our manager’s home (which will require a crane), one of the agents has a tree on parts of her home as well.

So far, people are trying to be cooperative and maintain good spirits, but you can tell by their voices that the situation is wearing their nerves a little thin. We are all SO thankful that the weather is cooperating. The mild temps allow us to be comfortable without AC or heat.

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Central Ohio · Delaware County · Delaware Ohio · Fix-ups · Franklin County · Home selling process · Homes · Powell Ohio · Realtors® · Sellers · Worthington Ohio
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Home buyers & sellers … friend or foe?

September 13, 2008 · No Comments

Selling or buying a home can be a wonderful experience … or a troublesome one. It all depends on the parties involved. Naturally, having it be a wonderful, joyous, exciting time is the preferred outcome and that’s what happens in the majority of sales.

HOW TO BECOME A FRIEND

First of all both parties should rejoice in the fact that they share some things in common - they both like the house and they both want to move to a different home than where they are living now. Having a buyer choose a seller’s home is a complement to the seller. Likewise, having a seller trust the buyer enough to allow them to walk through the home and investigate its innermost corners during an inspection, is a complement to the buyer.

~~~~~~~~~~~~~~~~~~~~~~~~
Follow the GOLDEN RULE!
~~~~~~~~~~~~~~~~~~~~~~~~~

Both parties should recognize that the Contract for the purchase of a home MUST be a win-win for both parties or it won’t become a Contract. The negotiation process to settle on the details of the Contract will attempt to find a common ground between the two parties. To some people, the closing/possession date is more important than the purchase price. To others the price may be more critical and they are more flexible on other terms. It’s a give & take to find which terms are acceptable to both parties. Keeping an open mind and looking for workable solutions during negotiations will result in both parties being satisfied.

What it really boils down to is having RESPECT for the other party. People that remember that the others are people as well - with feelings, emotions, and maybe some financial concerns - will usually do much, much better in the negotiation process. Often, when both parties work together and respect each other, good things happen. A seller may decide to leave something for the buyer that the buyer otherwise would have to purchase. The buyer may be willing to overlook some moving dust if events happen to cause the seller to run out of time during the moving process. I’ve even had sellers plan a neighborhood BBQ to introduce the buyers to their new neighbors. That’s wonderful!

HOW TO BECOME A FOE

  • Start out with an attitude of it’s MY way or the highway!
  • Make DEMANDS rather than suggest SOLUTIONS.
  • Treat the other side as if they were an inanimate object - not a real person with feelings.
  • If you’re the buyer and the seller gave you a good price for the home, add to the seller’s financial pain by submitting a 2-page list of remedies you demand be fixed.
  • If you’re the seller and the buyer paid full or nearly full list price, refuse to do ANY of the requested repairs even though they may be legitimate.
  • Threaten to pull out of the Contract every chance you get. That keeps everybody on their toes, keeps stress levels high and makes you feel powerful.

WHICH WILL YOU CHOOSE?

If you’re a seller and have friends in the neighborhood, do you really want the buyer telling your friends what an arse you were? Likewise, if you’re a buyer, do you want the seller to alert your new neighbors such they decide it’s best to not get acquainted with you or welcome you? Obviously neither is the desired situation. So go into your home buying or selling process with a positive attitude and you’ll eventually be so glad you did, when everybody has a great time at the closing table.

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Home buying process · Home selling process · Homes · Homes for sale · Sellers

A day in the life of a Realtor®

September 4, 2008 · No Comments

I’m sure people sometimes wonder what a Realtor® does all day long. Many just think all we do is open doors for buyers and then make a whole bunch of money. Yeah, right!

Well, one of the nice things about the job is that everyday is different. There are NO typical days. We may plan a “to do” list in the evening for the next day, only to have the day completely changed due to an early morning email or phone call. Getting a contract in on a listing can change everything, since contracts take priority.

Carole Cohen, Cleveland, wrote about one of her days recently.

Paula Henry, Indianapolis, ask a question about how far Realtors® drive when working with buyers or taking listings. Based on the comments, it seems that agents who work in downtown urban areas seem to drive very little distance from their home. Agents who work in more rural areas must drive far more miles.

Yesterday happened to be the type of day that I refer to as “errand travel” days. Those are the days that I plan to complete several real estate tasks and of course, with the price of gas, I plan my route accordingly. I often refer to driving from one side of southern Delaware County to the other. Well, yesterday I did that PLUS I had to go down the east side of Franklin County as well.


View Larger Map

My day began with a visit to the Verizon store in Lewis Center because a piece broke on my bluetooth headset. Then over to a new development off Maxtown Rd (Westerville) to check the lot location of a spec home. Then to a listing in Galena to put an Open House sign strip on the yard sign. I took the scenic route south to Gahanna (through New Albany) where I had more investigations to do for a buyer client. Then further south to Blacklick to discuss the results of the investigations with the builder’s rep. I’m trying to get a price reduction on a new-build now that the builder has reduced prices on current inventory so I need FACTS.

Received a call that a security system was malfunctioning on a listing - so north to Worthington to look into that problem. The alarm was blaring while the poor showing agent was talking to me. I felt her pain as I did that ONCE. Problem solved, so next stop is to my office in Worthington to make copies of some paperwork for the office files.

Last on the ‘to-do’ list were some personal stops, the most important was to get The Murph more HeartGard medicine at his vet in Powell before they closed at 7:00. Gotta keep the little guy healthy!

Now wasn’t that day about as exciting as watching paint dry! :-) Oh, BTW, I put about 75 miles on the WEENR-mobile and didn’t make $1.

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Categories: Buyers · Central Ohio · Delaware County · Franklin County · Galena Ohio · Home selling process · Lewis Center Ohio · New home builders · Powell Ohio · Real Living HER · Realtors® · Sellers · Transportation · Worthington Ohio
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Home Buyers … have your locks rekeyed.

August 2, 2008 · 4 Comments

I’m still helping the clients prepare their home for sale that I mentioned in an earlier post. We’ll be needing to have some people get into the home to paint, install new carpet and eventually the maid service. None of these type of companies have the special electronic key system that real estate agents use, so for a few days, I will use another type of lockbox just for these contractors. Once their work is done, I’ll remove that less secure box and replace it with the electronic lock box.

This “key” issue is pretty common when people are selling their homes. Agents make multiple keys in case another agent walks away with one in their pocket after a showing. Sometimes locks are difficult to open and a key breaks. Once, I had one slip from my fingers and drop down through an opening under a porch. OOPS! So, having multiple keys in our files can be critical when the sellers have already moved elsewhere. The remaining keys are given to the buyer at closing.

Even so, this should be a reminder to buyers that one of the first things they should do after moving into a new home is to call a locksmith to have the home rekeyed. You don’t need to buy all new door knobs to achieve this. The locksmith will simply change the tumblers in the cylinders and PRESTO … a brand new key is required. The locksmith can make all the locksets the same, so that one key will open all your doors. That is a REAL convenience. Just tell the locksmith that you want the locks “keyed alike”.

The cost to rekey is relatively inexpensive and much less expensive with far less hassle than replacing knobs or locksets. The peace of mind you’ll have will be “PRICELESS”.

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Categories: Buyers · Buyers · Home selling process · Homes · Safety · Sellers
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Some homes seem “un-comp-able”

July 27, 2008 · 2 Comments

I doubt that “un-comp-able” is a real word … in fact, I’m almost sure that it’s not. Perhaps, the only people that would understand its meaning are other real estate agents. We’ve all had homes that are so unique that they just don’t compare to any others that are on the market or have been sold recently.

Of course, we all know that the buyer is the REAL PERSON to decide what a home is worth, but in the meantime, the seller must decide on the price at which the home is listed, and they make that decision based on the comps we provide them. When there are no similar homes to compare to, it makes it much tougher for the seller to select a list price.

I’m currently working with some clients who are in the process of preparing their home for sale. They’re doing all the right things, so when we actually put the home on the market mid-August, I “expect” the home to sell rather quickly … IF we put it on the market at a reasonable price. So what should that price be?

The home is an all-brick home in the Worthington school district. It was custom built in 1991 which is “new” by Worthington standards. It’s a reasonably large 4BR home - over 2500 SF - and it has an owner’s suite on the first floor. It’s also located on a quiet, wooded, cul-de-sac street that is quite convenient to Rt 315 for a commute to OSU, Riverside Hospital, Battelle or downtown Columbus.

When I start looking at comps, I first do a broad search. For this home, I started with a search for active listings (our competition) that are over 2400 SF with 4 BR’s, in the Worthington school district. The search came up with 46 active listings priced from the high $200K’s to the $900’s. OK, that won’t work!

Old Worthington Inn

Since Worthington is an “older” suburb, I decided to add “year built” into the search’s criteria. Searching for homes built since 1990, reduced the active listings to only 9 (told you Worthington was “older”). However, because of the mindset of buyers wanting to locate around Worthington, I’m not certain that the age of the home is a major consideration.

Many of the Worthington homes have REAL wood doors, woodwork, floors, custom built-ins and other nifty features that aren’t included in newer built homes except at a high price. This particular home has all those features, plus, a great hearth room off the kitchen with brick fireplace, wood bookshelves, bench seating and hardwood floors. I can just imagine sitting in this room on a cold winter day sipping hot chocolate by the fire. There’s also a screened porch for summer enjoyment overlooking the manicured backyard.

So what price range will I be recommending for the seller? I’m still working on that, but I’m narrowing it down … I think! :-) Stay tuned, as you’ll be the first to know.

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Categories: Central Ohio · Franklin County · Home prices · Home selling process · Homes · Homes for sale · Sellers · Worthington Ohio
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Delaware County Real Estate Taxes were due today!

July 10, 2008 · 2 Comments

Our Delaware County real estate taxes were due today. Did you pay them?‘

Some homeowners are required by their lender to have monies set aside from their mortgage payment to be held in escrow to ensure the money is available when the tax bill comes due. Those owners don’t have to worry about meeting today’s payment date, since the bill was sent to the lender and probably was paid in June.

The rest of us, who don’t use escrow, must send the payment to the County Treasurer or drop it off at the county building at 140 N Sandusky St in Delaware.

I prepare a Net Equity Estimate for sellers when I list their home. Explaining how much they’ll owe at closing for their taxes is often confusing for them. It’s confusing because we pay those property taxes “in arrears”.

That means that the property taxes that were due today were for the period of time we lived in the home from July 1, 2007 thru December 31, 2007. If a homeowner has their home for sale and has it in-contract with a closing date of, let’s say, August 31, then they need to pay the taxes from Jan 1, 2008 thru Aug 31 at closing. Actually, the amount is just deducted from the seller’s proceeds from the sale of the home.

For those who have an escrow with their lender, they will still have the money deducted at closing. The lender will just send them a check a few weeks after closing for the amount unused in the escrow account, once the lender completes the paperwork required to close out the mortgage loan. So, there you have it … clear as mud, right?

Oh, and BTW, I wasn’t the only one who went to the county building today to drop off my check in time. There were quite a few other Delaware County residents there as well. :-o

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Categories: Central Ohio · Delaware County · Home selling process · Homes · Homes for sale · Sellers
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… But … I’m not ready to move!

June 19, 2008 · 2 Comments

I’m not sure what’s going on. Maybe it’s the way the market has been the past year with it taking longer for some homes to sell. This year it seems a few sellers are putting their homes up for sale without being ready - mentally or physically - to move within 30 days.

If the seller has listened to their agent and priced the home right, and the home is in great condition and well-staged, there is a possibility that the home will go into contract quickly with the buyer asking for possession within 30-40 days. That’s always been the norm and in past years, it didn’t seem to be an issue.

When sellers aren’t willing to adjust their timing to move (give possession) within that 30-40 day timeframe, it causes all sorts of problems.

  • First of all, it can cost the seller a “ready, willing and able” buyer if the buyer needs to be in the home by a certain date to meet employment or school dates or a possession date on the buyer’s current home’s contract. The buyer may need to select another home that does agree to meet their required possession date. In today’s market, sellers cannot afford to let a buyer slip away!!
  • The buyer may want to lock-in an attractive interest rate to avoid a projected rate increase. They will want to close on the home quickly.
  • Sellers who are being managed by a 3rd party relocation company are required to give possession at closing because title transfers from the seller to the relo company to the buyer. The purchase contract is between the relo company and the buyer, so a delayed closing isn’t even up for discussion.
  • Buyers don’t particularly like the idea of the seller living in the home after closing. In some areas or states, it’s standard practice to turn over the keys at closing and delayed possession is not given. Here in central Ohio, it’s more common to give the seller 2-3 days to move out and turn over the keys. That way, the seller is assured the closing actually occurred prior to loading the truck. However, both parties need to be aware that there are certain insurance liabilities in doing this.

I’ve found that some sellers, who haven’t sold or purchased a home for 20 years or so, are still under the impression that they can stay in the home for up to 30 days after closing. NOPE, NADA, NOT GONNA HAPPEN! That’s as relevant as 50¢/gal gas!

So … sellers … when that sign goes in your yard, you need to have already made plans on where you’re going to live IF your home goes into contract quickly and you need to give possession at closing.

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Categories: Buyers · Central Ohio · Home buying process · Home selling process · Homes · Homes for sale · Sellers

Who Sets A Home’s Price? Sellers or Buyers?

June 13, 2008 · 2 Comments

Well, home sellers won’t like to hear this, but it’s well recognized in the industry that the buyer actually sets the price.

Just as with any retail product being sold, whether it’s a car, a cheeseburger or clothes for the family, buyers vote with their dollars and their feet. They make choices based on the price of the product, its overall current value, perhaps its long-term value, how well the product meets their specific needs and they decide to buy or not buy. The buyer doesn’t consider what the manufacturer paid to produce the product or the margin the store might like to earn when they sell the product.

Think about that the next time you buy a gallon of paint. Do you really care what it cost to make the paint? Or do you decide based on the price of various brands, and which one offers the smoothest application or the potential for a one-coat application? It’s no different when buyers are shopping for homes. Like it or not, buyers don’t care what the seller paid for the home, or what it cost to add the upgraded fans, or how much the seller needs to net in order to buy their next home.

Home buyers may be viewing homes in several suburbs, in various school districts, in multiple neighborhoods and of varying styles. Often they narrow their selection down to 2 or 3 homes then evaluate the pluses and minuses that each home offers to them. They’ll compare the price of the home along with the money they’ll need to spend to fix it up or to redecorate to their preferences. They also consider the price that other homes have sold for in the neighborhoods of these homes. They’ll consider whether their total price paid (price plus fix-ups) will place the home in the low, middle or high-end range of the neighborhood. In today’s market, they may (or should) consider whether the neighborhood prices are declining, staying flat or increasing.

If the buyer considers the price or money the seller has invested in the home, it’s only to evaluate the likelihood of the buyer being able to buy the home for the amount they have decided it’s worth. If the buyer decides the home is only worth $300K and it’s priced at $330K because that’s what the seller owes or has invested, then the buyer may decide it is futile to make an offer and instead merely takes the home off the table for consideration.

When sellers are considering how to price their home, they need to remember three things:

  1. Their listing agent has seen the inside of hundreds of homes, done hundreds of CMA’s for both buyers and sellers, has heard hundreds of buyer feedback comments on their listings, and has a pretty good feel for what a home will sell for.
  2. The buyer has more knowledge of market pricing and seen the inside of more homes than the seller has, thus is in a better position to judge the price of a given home as compared to all the other homes they’ve viewed.
  3. The seller has the least knowledge because they’ve not likely been in other similar homes to compare upgrades or condition.

A few months ago, I read a blog post where the blogger suggested that an overpriced home actually helps sell their neighbors’ homes … rather than their own home … because the overpriced home becomes a benchmark comparison that “legitimizes” the value of the lower priced homes. Barbara Corcoran, real estate guru that frequently appears on The Today Show, addressed this issue this week by saying that a seller could achieve the most money by pricing the home 10-15% below market. I don’t think the price needs to be quite that low, but certainly pricing the home within 1-2% of what it is likely to sell for, WILL generate more money for the seller because the seller will get an offer much faster and often at or close to list price because the buyer will know that it is a good value and that the home may receive competing offers from other buyers that also recognize the value.

I attended a seminar last year on home pricing strategies. The speaker mentioned that sellers can price their home in one of two ways: (1) they can price it to sit, or (2) they can price it to sell. The buyer will then decide which one of those two choices it will be.

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Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Homes for sale · Media · Sellers · Television
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What if Realtors® charged fees like other professionals?

March 29, 2008 · 18 Comments

Attorneys charge by the hour that they work with you or take your phone calls. They may also charge for out-of-pocket expenses.

Some companies charge you for project estimates which includes their time to do the estimate as well as the expenses (gas/time) to come to your home so they can make the estimate.

Doctors … well, we all know how THEY charge!

Your CPA or financial planner most likely charges based on the amount of time that is required to do your taxes or your financial plan.

None of these people give away their expertise, time or reports for FREE! What if Realtors® were able to charge that way rather than receiving a commission after the sale?

How much would you pay for these various functions that you might currently be asking a Realtor® to do for ‘free’? 

  • Pricing analysis on what price your home might sell for
  • Showing homes to you on a per-home-shown cost basis
  • Interviews with multiple agents to see which one you want to use for buying or selling
  • Consultation on how to prepare your home for sale
  • Appointments canceled with less than 24 hours notice
  • Emailing up-to-date home searches from the MLS system

Do you expect to receive any free advice or time from an attorney or a doctor or a CPA? If you had to pay a Realtor® in the same way as an attorney, would you do anything differently? Do you think you would pay more or less than you do now?

I’m curious to hear your thoughts on this idea.

Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.

Categories: Buyers · Home buying process · Home selling process · Realtors® · Sellers