Archive for the ‘Real Estate Articles’ Category

In the deals that we have completed over the past few years, these are the top 5 areas that need a particular amount of attention.  As a homeowner that is in the process of selling, it is imperative that you have an understanding of these important areas.

1) Disclosure

Form 17 is a federally mandated form that all sellers have to complete and the buyers have to sign that they have received it. This form is updated periodically and it is supposed to help the buyers know what the seller knows about the property. There was a landmark case in Washington last year that basically said that the seller cannot be held liable for something that they don’t know. While the details are tedious, a seller should not disguise or mislead a buyer by checking the box “I don’t know” too often. It could come back to haunt the seller if there is a lawsuit down the road. We don’t advise our sellers how to answer the questions, but we do ask them for clarification when we don’t understand why they answered a question a certain way. There is such a thing as “over disclosure” but in most cases, it is better to over disclose than under disclose and that’s what we advise.

2) Financing


The majority of homes are purchased by buyers borrowing money from a lender. A few years ago, if a buyer could fog a mirror, they could get a loan, not so these days. Lenders have more stringent guidelines and buyers may fall out of qualification at the last minute. It is important for you to know where the buyer is in the process so that you don’t have a last minute surprise of your sale closing late or not at all. We make sure that we check with the buyer’s lender weekly during a transaction to assure that the lender and underwriter are getting all the information they need from the buyer.

3) Timelines

“Timing is everything” is as important in real estate as it is in life. When things are going great, many sellers and agents don’t follow the timelines carefully, but should something go wrong, this could have devastating effects. Here in Washington for example, buyers have a certain amount of time to apply for financing or their earnest money is in jeopardy and there is a specific period of time that they buyer has to say that they will go through with the sale after an inspection. If a buyer wants to get out of a deal, a missed timeline may be all that they need. We keep our sellers aware of these deadlines so that they know what comes next.

4) Inspections

Different areas of the country have different customs. In California, sellers pay for an inspection of the home, here in Washington, buyers pay for the inspection. Like every other profession, there are good inspectors and bad inspectors and most of the time their liability is only up to the fee that they charge. That is why it is so important to know that the inspector used is qualified and experienced. Inspectors shouldn’t overstate a problem to bring the price of a home down for a buyer or understate a condition that might be a hazard in the near future. As a seller, you want to sell the house, but if the inspection requests are unreasonable, just say “NO.”

5) Agency

Up until a few years ago, there was a pretty well kept secret that agents used to only work for the seller, even if they brought a buyer to a home. Now, sellers have listing agents and buyers can have their own agents. It is important for you to have an agent that represents your interests only. Your agent knows lots of confidential information about you and the circumstances surrounding the sale of your home. Don’t let your interests be compromised by an agent who also represents the interests of a buyer. When that happens, the agent isn’t representing anyone effectively and it can lead to big problems down the road if something goes wrong. We never represent both parties. We either represent the seller or the buyer and we make sure that everyone understands that.

Create curb appeal. They won’t buy it if they don’t see it and if they don’t get out of the car, they won’t see it. I have been with many buyers that have refused to get out of the car because the house or the landscaping is not attractive. With so many properties to choose from, you can make yours stand out by keeping the grass mowed and trimmed, rake existing beauty bark and planter beds, and cut overgrown shrubs so that they house shows its best features. Keep the room free from moss, green belongs on the lawn, not the roof. While not free, some colorful flowers either planted or in pots will go a long way to making the home more attractive.
De-clutter.  Pack away everything in the house you don’t need. You are going to have to pack these things anyway when you move and when showing your house, less is more. This does two things for you, first, it creates an illusion of having ample space and buyers. Having piles around the house will indicate that you don?t have enough space and that your house is simply too small to accommodate you. If it’s too small for you it could be too small for your potential buyer. Personal items can be distracting to buyers also, so pack away the family photos and valuables, they will be safe during showings.
Always be neat and fresh smelling. First impressions count and messy or unclean house will make the house uninviting and uncomfortable to view. Buyers they are less likely to spend the time to get to know the house and see if it is right for them. Of particular importance, are bathrooms and the kitchen. They have to be sparkling, ultra-hygienic with no strong odors. Each viewing is a potential sale and tedious though it may be, clean thoroughly before each one. If you indicate any lack of care, buyers may quickly take the view that you have not cared for the property and there may be maintenance problems lurking which buyers will not find attractive. Don’t cook anything with a strong odor just before a showing. A freshly baked apple pie, cookies or a hint of vanilla is OK, but not curry, garlic or strong air freshener. I’ve shown houses where the buyer won’t go past the front door because of cooking or air freshener odors.
Remove pets during showings. The majority of homes now have at least one pet and many times three or four. Some buyers may like pets and it may be a common interest but other buyers will certainly find this a turn-off. Pets can mean that dirt is being brought into the house, fleas could be around, lingering odors, hair and fur on the floor and furniture. While putting a dog or cat in the garage is convenient for you, it may prohibit the buyer from looking in the garage to see if their car will fit or if there is extra storage. Take your animals for a ride or maybe send them to neighbor or friend’s house. It might be a great adventure for them and it might be the difference of selling or not selling your house.

Never be present when a buyer is viewing the house. When you are in the home during a showing, the buyer will not feel relaxed or free to ask questions, for fear of offending you. Also, you may feel that you have to show the buyer all of the important things about the house. Frankly, what is important to you may not be important to the buyer and you may scare them off. Professional real estate agents will be able to guide the buyer to the things that are important to them and if there are questions, they will get back to you. It may be hard, but stay away and let the agents handle the showing.

Here are the highlights of the new Home Buyer Tax Credit Changes.  Please pass the word along because your friends and family may not know the good news yet!

Congress has extended and expanded the homebuyer tax credit.  The modification in the column labeled ” December 1 – April 30, 2010″ became effective when President Obama signed the bill.  All changes made to the current credit became effective on that date, as well.