Uncategorized January 12, 2011

Can my agent contact the Seller to see if they’ll take an offer of $…

As a Buyers’ Agent, I can contact the agent, but I expect she will indicate the advertised price is the price they want. 

As part of the contract we sign with the people we represent, we promise to represent their best interests.  When a Seller advertises a property at a specific price, they indicate that that is the price they want.    To tell parties that inquire that the Seller will take less is to violate that promise.  Furthermore, with corporate Sellers, they often communicate less about such flexibility, unless they are advertising incentives or special considerations (in which case the information is published.)

When you are ready to make an offer, we can write the offer at the price you decide.  If the Sellers counter, that would be an indication of where their bottom line is. 

Negotiating is like playing poker: No one wants to show their cards until the hand is over.

Uncategorized October 12, 2010

Things I’ve learned from attending inspections

dimensional lumber joists with support posts on plinth blocksand other places.

As unlikely as it seems, I’ve been in thousands of basements, attended hundreds of inspections & been covered with construction dust a multitude of times.  I have hosted new construction, rehabbed a 1917 house & dug in the scary depths of more than one unfinished crawl space.

So, when I view a house, either to value it for a Seller or representing a Buyer, I’m interested in the systems, as much as the space.  I learned from my chiropractor that sore feet will eventually give you a headache; Likewise, a weak foundation will show all the way up to the roof.  Don’t get me wrong.  Much of what I’ll describe has been standing for almost a century, It simply results in weak links in the system, many of which are pretty inexpensive to fix. 

If I can, I head to the basement first.  My favorite inspectors quote is: “There are 2 kinds of basements: Those that have leaked & those that will.”  Evidence of past & current water includes whether my eyes burn when I enter the space.

I like to look at the posts & joists, if they are exposed.  They will explain spongy or wavy floors above.  My first house had the joists cut around the chimney (the heating plant was an afterthought!).  They had been left to hang, causing a low spot in the center of the house.  And that was OK… when it was built.  After all, building codes have changed dramatically over the last 100 years.   They are still changing.  In older houses, the joists are often 2 x 6’s.  The engineering wasn’t dictating load over span, so many of these are spaced up to 2 feet apart, with no supports between the main beam & the sill plate.  The floor above will feel a bit like a trampoline, as it flexes across the unsupported space.  In newer homes, you might find manufactured joists.  While these may look flimsy, they are actually stronger & should support the house longer & more firmly because they are “engineered”.

I also look at the posts supporting the center beam.  Again in older homes, the standard was – well – non-existent.  Many of these posts are set directly on the floor or had the floor poured around them.  The bottoms are slowly eaten by microbes, a few microns a year.  Again, over a hundred years, it starts to add up.  The house sags in the middle; You can even see it from the outside – the roof will look like a swayback horse, low in the middle of the ridge.

While I’m in the basement, I also look at the heating plant, the electrical box & any exposed plumbing. 

I actually have good things to say about Gravity furnaces – you know, the ones that look like a swollen octopus has eaten half your basement.  It was made of cast iron; it may not be high efficiency, but it lasted 80+ years for a reason.  Of course, it can make the basement a really unwelcoming place.  Newer furnaces take up much less space & use less fuel.  My rule is: If it’s broke, replace it. Otherwise, just enjoy the quiet, dust free operation & sock away some money to replace it with the next round of efficiency rebates.  Then, you can get Air Conditioning, too!  If there is a boiler, my personal favorite, you might have to choose another AC system.   I have learned the virtues of the mini split as a partner to this system.

An Inspector will also tell you that fuses can be a safer system to operate than circuit breakers, as you have to replace a fuse, but may repeatedly flip a circuit without appropriately addressing the issue.  But, your insurance will be remarkably higher.  The investment in a new circuit box, with the appropriate number of outlets & greater protection for your electronic toys is worth every penny.  Current code requires smoke detectors & carbon monoxide detectors, as well.  Your electrician may hardwire these with the new box.

As for plumbing, galvanized water supplies in the basement are one of the major items I get excited about.  I have learned that Lead (yes, that mineral)  main line were actually used in some St. Paul neighborhoods & at certain points in history, shady contractors would pretend to replace main supplies with copper & not actually run it to the street.  While evidence of leaking is important, equally important is a test of the system involving running water at several devices at the same time to see how it flows.  Lead testing is something I leave to the professionals.

This brings me to the main floor systems.  I look for broken sash cords & panes on windows, evidence of storm windows, stain patterns & cracks.  Observation will tell how the house lives, how it has been kept & if the last time they fixed the expansion crack if they corrected the support issue, too.  Windows that have fogging between sealed panes can point to low quality, abuse or poor support.  Sometimes, a “well built” house will begin to sag because high humidity has started decomposition of the support structure.  This is a HUGE red flag. 

I usually leave the attic to the inspector, unless it’s easy to walk up.  The inside of the roof, if exposed, might show staining.  If it’s insulated, it might have 1 or 2 different kinds of insulation.  It’s good to have more information from the Seller on this & everything else, to use as a yardstick for what is seen.  Important to note is that most older homes don’t have enough room in the rafters for air channels & adequate insulation, if you plan to finish the space.  The rafters can be made deep enough by a careful contractor, so it’s a good idea to get a professional to consult when you get into remodeling.

Lastly, outside, it’s good to see a tight “envelope”.  Cracks in the foundation or exterior walls let in pests & water – the home’s enemies!  I conduct a “flat foot” inspection of the roof (I don’t get on a ladder).  If the shingles are curling, cupping or visibly separating, an immediate evaluation by a professional is warranted.  Recent hail might not show evidence from the ground, so it’s a good idea to know if that could be an issue, by reading the Sellers’ Disclosure or asking questions.

Above all, understand that “Buyer” eyes & “Owner” eyes are different.  You may be willing to live with a flaw to get the perfect house or get by.  Or, you might see something that will make you run screaming.  More information is better.

While I can make a good overview of the systems, I always appreciate the opinion of professionals.  Certified Inspectors, Licensed & Bonded Contractors & trained Engineers can make sense of confusing evidence.  I know some great people.  Ask if you need a referral!

Uncategorized October 8, 2010

Common Unasked Questions about Real Estate

Glossary:

MLS – Multiple Listing Service

Listing Agent – The agent who works directly with the seller aiding to prepare the home for sale, and marketing the home. This agent’s name hangs on the sign.

Selling Agent – The agent who brings the buyer to the home and assists the buyer in purchasing the home.

Broker – The person/company that supervises, manages and provides administrative services to a group of agents.

How does an agent get paid?

Different methods exist, but most often the seller pays a fee to the broker who listed her home. The broker splits that payment to compensate the listing agent and the selling agent (or the selling agents broker), after taking a portion to cover administrative costs. Typically, the buyer’s only costs are her down-payment and closing costs. It is illegal for an agent to be paid by anyone but her own broker.

What is the MLS and how does it help me?

The MLS is a subscription publication service that tracks information about homes for sale with participating brokers. Using the MLS, an agent may market a home to thousands of agents, regardless of the broker they work for. In addition, an agent may research homes for sale on the MLS by area, price or features, regardless of who listed the home. A broker must participate to use this service.

What can I expect from my agent in general?

Your agent should follow the National Association of Realtors Code of Ethics. She should educate you about your transaction. She should maintain your trust. She cannot lie to you or for you. She cannot “steer” or otherwise discriminate in any way. She cannot give legal, financial or tax advice. She should be a housing expert.

. . . As a Buyer?
Your agent, when representing you, should research homes best suiting your wants and needs; make appointments for you to see those homes; assist, if you want, to secure financing; and aid you through the negotiations, inspections and paperwork necessary to close the purchase.

. . . As a Seller?

Your agent should inform you of market conditions; be honest with you regarding the salability of your home; market to the widest possible audience to get the best possible sale; and give feedback from showings.. She should guide you through negotiations, inspections and the paperwork necessary to close the sale.

Uncategorized September 16, 2010

How to be a good Heir

horses & chariot As a REALTOR, people contact me when there are big changes in their lives. One of the hardest is losing a parent. There are some things you can control in the process, some you can plan for & unfortunately, some you must simply accept & deal with.
In a perfect world, the property will be in a trust & may be sold at any time. If there is a will, certain procedures must be followed, but things can transpire quickly. If there is no will, stop now, go to court & make sure the property is physically secured, because it will take a while.
What I am trying to get at is, the person you lost needs to have made certain decisions in order to best protect the “estate”.
And this moves us to three separate ideas:
First, while many people don’t want to think about what the world will look like after they die, planning makes is easier for those left behind.
Second, once those decisions are made, they are the decisions of someone you love & respect. Unless their judgement was impaired or undue influence has been at work, the instructions are theirs.
Third, the courts & other authorities have specific requirements of what must be done with personal & real property at the time of death. Regulations & legal instructions must be followed.
So, how does this relate to being a good heir?
First, if possible, help plan before you ever have worry about how to deal with the court. Talk to a good estate planner and an attorney who specializes in wills & trusts.
Next, if you are the personal representative (a.k.a. executor), act quickly. Get good advise, file documents timely & communicate clearly with the heirs about what you can & can’t do.
If you are “just” an heir, support the PR. It is an unpaid position; it has difficult decisions & lots of responsibilities. The goal is not to thwart you. The goal is to follow the instructions in the will. You may need to help prepare the property for sale, consult in your own areas of expertise or be a shoulder to the party who has the unpleasant job of liquidating the assets of someone who they loved, too.   Arguing, questioning every decision or taking offense don’t help.  Fraud is rare; Don’t ignore the possibility, but don’t immediately assume that self-interest is at work.
Lastly, honor the memory. The things are great talismans, but they are meaningless without the story. Share the stories, nurture the relationships. Isn’t that what they would have wanted?

Consult your own advisors.  Please contact me if you want a great referral!