Hunting for Unicorns

Hunting for unicorns.

I’m having lots of conversations with both buyers and sellers about pricing these days.

The market is bananas and I think the level of activity has some of my clients feeling a little off kilter.

But there is no reason for confusion.

Even in a crazy market like this there’s still the “magic number”.

What’s the magic number you might ask? Its the price that yields a number at or above market value in the shortest amount of time.

Sometimes sellers will tell me that they want to price higher because someone out there might “just have to own their home” and will pay over market value.

Buyers will tell me that just maybe there’s a seller out there who would be willing to take a 50% discount off their asking price.

Sounds like hunting for unicorns if you ask me!

Here’s the truth.

The MARKET will determine the value and homes that are priced right will sell very quickly to buyers who are thrilled to be purchasing.

Sounds like a win-win for everyone.

All the "I don't Knows" About Buying a House

All the “I don’t knows” about buying a house.

When I meet with buyers and sellers I get lots of questions.

How will you show my house?

How much money do I need down?

Who orders the appraisal?

Do I have to have a home inspection?

These are just some of the things people wonder about when buying and selling real estate.

There are so many questions; and you might even feel like you don’t even know what to ask. When you have a trusted and experienced agent to assist you they will be able to anticipate your needs before you even know you have them.

Go in eyes wide open and remember no question is a dumb question!

Lender Required Repairs

Whaaaaa!!!

LENDER REQUIRED REPAIRS

These three words are NOT what you want to hear when you are buying or selling a home.

So what does this mean you might ask?

Lender required repairs are repairs that must be completed in order for the buyer to get approval for their loan.

It doesn’t matter if the buyer (or seller) care about or want these repairs, they are imposed by the lender.

Common lender required repairs are; peeling paint, broken windows, missing hand rails or anything that falls under health and safety.

As a homeowner what can you do to avoid this situation?

Ask your agent for a do-it-yourself checklist for home inspection preparation. While this is for preparing for a home inspection, it will cover most anything that a lender would be concerned about as well.

5 Things to Always Check Out When Buying a Home

Things to always check out when buying a home

1.) The roof.

Two things here. What’s the condition of the roof and how many layers of shingles If there are already two layers of shingles you will have to tear off all layers and re-roof. If there is just one layer you can re-roof over it.

2.) The septic system or sewer line

It is possible to have a septic issue and not know it, especially if you are buying a home that has been used as a second home.

3.) Latent moisture.

Looks like an old leak, and it might be. But there still could be mold behind the wall

4.) Water quality and quantity

Will you have enough water and is your water drinkable Not as much of an issue when you have city water but if you are on a well its important to understand quality and quantity.

5.) Radon levels

Radon is an invisible gas that EPA studies shows can cause cancer. Its has been around since the beginning of time. Some homes have very high radon levels and while it might not be a concern to you, you will have to address it when you go to sell your home. Best to know before you buy.

First Time Home Buyer Credits

First time buyer credits are a thing of the past. Sadly, your lender doesn’t care if you are a first time buyer or buying your 10th home.

But its not all bad news

If you are a teacher or first responder there are some special loan programs available to you.

Also if you a Veteran of the US Military, you likely qualify for a VA loan.

And many buyers qualify for down payment assistance and down payment grants.

A great lender will be able to figure out what programs are best for you. Please for the love of all that is good in the world, DO NOT, call one of the lenders with the fancy commercials.

You know who I am talking about. They work on volume not on repeat business. They spend millions of dollars on advertising to sell you one loan.

A local lender, recommended by your real estate agent, cares about your experience because they hope you might recommend your friends and neighbors down the road.

Three Options When Pricing Your Home

You have three choices when pricing your home:

Test the market. This strategy works in a rapidly rising market because you are pricing ahead of the market with the hopes that the market will meet or surpass your list price

Price it right. This falls right into the range of what market comparables tell us the home is worth. Not too high, not too low.

Is this sounding a little like Goldilocks and the Three

Strategically aggressive price. This is the price range that attracts multiple offers and offers over asking price.

There is no right or wrong answer. But your pricing should reflect your timing goals. Please leave any questions below.

Just because you can, doesn't mean you should

Just because you can doesn’t mean you should.

Just because you are approved for a loan for $500,000 doesn’t mean that you should spend that much.

Let’s walk through this together.

You’ve finally got the home of your dreams, but you had to max out your budget to get it. What might you have to give up to have that home

vacations

savings

college funds

retirement

fun family experiences

These all might be on the chopping block... and before you know it you might find yourself in financial bondage.

This house, the one you are in, or the one you are buying is likely NOT your forever home.

Homeownership is a process of stepping stones, each time you get more of what you desire. So hold off on maxing out your home budget and remember all the other financial goals you have.

Sellers Property Disclosure

Selling your home doesn’t have to be a gamble. And the sellers property disclosure can keep you out of hot water.

Did you know the number complaint with the division of real estate is non-disclosure by sellers

What does this mean in plain English. “We bought a house from Mr and Mrs Seller and they never told us about the roof leak, the cracked foundation, the flood in the basement, fill in the blank.”

So how do sellers avoid this unpleasant situation?

There is this handy form we use in real estate called the Sellers Property Disclosure. This form is your opportunity to air all your homes dirty laundry.

Sometimes I have sellers balk at this form, they feel reluctant to fill it out.

But think of this form as your get out of jail free card.

The save your bacon form.

The keep you out of hot water form.

You can’t hide things from the new buyer

Just picture this. New buyer moves in and who should saunter over, but Karen from across the street.

“Oh welcome to the neighborhood! I was just saying to my husband that I didn’t think anyone would buy this home with the moldy attic and all.”

Your neighbors know everythingAnd if something is wrong with your house the buyers are going to find out eventually.

It’s best to be as thorough and accurate as possible with the disclosure. It will protect you in the long run and keep you out of trouble.

Yes, you might have to make some repairs, but I can promise you it will be a lot cheaper than a lawsuit and attorney fees.

When in doubt, DISCLOSE!