Real Estate Curve

Everything To Know About Real Estate

Archive for January 20th, 2008

Jan-20-2008

Packing Tips

A few general things you need to know about packing:

- Keep boxes to 50 lbs or less. Put heavy items in small boxes and light items in big boxes.
- Pack non-breakables tightly in smaller boxes, so they’re not too heavy.
- Buy clean newsprint to wrap items, and bubble wrap for padding.
- Pack breakables loosely in plastic storage bins with lots of bubble wrap.
- Rent furniture pads.
- Mark your boxes by room, so you know exactly where everything goes. Color coding or using a number system works great (i.e., red stickers for bedroom or 1 for bathroom.)
- Write “FRAGILE” on all boxes with breakables and stack these boxes on top.

Packing the big things

Beds: Tie bed frames together with tape or rope. Then label the pieces so they’re easy to reassemble.
Bureaus: Fill drawers with clothes or fragile, well-wrapped items. Cover with a blanket or furniture pads and rope securely.
Tables: Remove legs, pad and tie together. Put nuts and bolts in a bag and tape under tabletop.
Big appliances: Empty, defrost and drain the fridge, freezer and dishwasher. Clean the interiors and put accessories in bags. Stuff towels between washer sides to prevent rotating and tape down moveable parts. Cover with blankets and tie.
Computers, TVs, & Electronics: Use original packaging, or buy electronic-specific boxes.

Packing the small (but still important) things

Small appliances: Put your microwave, VCR, etc. into boxes, and cushion with wadded paper.
Books: Pack them flat in small cartons, alternating bindings. Try to keep each box under 30 lbs.
Clothing: Pack hanging items, including drapes, in wardrobe boxes. Leave small items in drawers.
Collectibles: Wrap fragile items in bubble wrap and tape securely.
CDs: Pack upright and cushion with newspaper.
Kitchenware: Stack pots & pans, and cushion with paper. Put a few of these items in the “open first” box.
Dishes: Never stack them flat. Wrap each piece in bubble wrap. Pack plates & saucers on edge, with cups & bowls placed around them.

Packing the awkward things

Chairs: Wrap arms & legs with bubble wrap. Leave slipcovers on or buy chair bags for protection.
Bicycles: Loosen the handlebars and turn them sideways. Cover chains and pedals to keep grease off other items.
Mirrors, artwork & frames: Wrap small pieces in newsprint and pack in mirror boxes. Cover larger pieces with cardboard, tape securely and stand them along the truck’s sides or inside wardrobe boxes.
Lawn furniture: If heavy or bulky, disassemble. Put nuts and bolts in a bag and tie together.
Rugs: Roll up and secure with rope or tape.
Plants: Put in plastic bags with air holes, then in boxes. Water before you leave.
Power and garden tools: Wrap all sharp edges and use plenty of cushioning to prevent injury. Tape long-handled tools together and place small ones in boxes.
Lawn mowers/yard edgers: Empty gasoline from all tanks, and check for oil leaks.
Garage & attic stuff: Use medium-sized boxes for spray paints, brushes, car waxes, etc. Throw away oily rags or anything combustible.
Pets: Always keep them in a pet carrier up front with you. Ask your vet how to make their, and your, move less traumatic.

Posted under Moving
Jan-20-2008

Moving Checklist

Two months prior to Moving Day

If you will use a mover, get a few estimates from moving companies.

If you will move yourself, get costs from at least two truck rental companies.

Create a floor plan of your new home for furniture and appliance placement.

Make an inventory of your household goods and begin to remove clutter (start with the basement, attic, garage, and other storage areas).

Start a file for all your moving paperwork (estimates, receipts, etc.).

Arrange to transfer school records.

Choose a mover (or truck rental company).

Get your new home ready – Contact painters, carpenters, plumbers, roofers etc., so your home is ready when you arrive. Remember to change the locks on all the doors in your new home.

Visit Smoothmoves.com for tips on moving with children.

Six weeks prior to Moving Day

Obtain and fill out post office change-of-address cards.

Subscribe to the paper in your new hometown to learn more about your new community Make arrangements for storage if necessary.

Make arrangements for storage if necessary.

Ask your doctor or health plan provider for referrals, and obtain all medical records.

Have antiques, pieces of art, and other valuables appraised.

Clean all closets and drawers.

Start using foods and cleaning supplies that cannot be moved.

Four weeks prior to Moving Day

Schedule disconnection of all utility services at your old home, and connection of them at your new one. Be sure to disconnect the day after you leave and connect the day before you arrive. If you have “last month” deposits with services, such as the telephone company, request your refund.

If you are moving yourself, reserve a rental truck.

If you are packing yourself, obtain packing materials and start packing items you won’t need until after you arrive at your new house.

Arrange for cleaning and repair of furniture, drapes, and carpeting.

Arrange for special transportation of your pets and plants if necessary.

Check with your insurance company to see how your possessions are covered during transit.

Make any travel plans necessary for your move.

Check to see if you need any moving permits.

Plan your moving sale. Remember to check with local authorities about restrictions.

Collect your important records — Gather personal and family records, including medical and dental, veterinary and school records; legal and financial documents; birth certificates, passports and insurance documents.

Three weeks prior to Moving Day

Properly dispose of items that cannot be moved, such as flammable liquids.

Prepare auto registration for transfer (if moving to another state).

If you are moving in or out of an apartment, arrange for use of the elevator.

Make child-care arrangements for moving day.

Hold your moving sale.

Two weeks prior to Moving Day

Arrange for disposal of anything not sold at your moving sale.

Service your car in preparation for the move. If you’re moving from a warm climate to a cold one, check your antifreeze.

Return any borrowed items (including library books) and retrieve any loaned items.

Cancel newspaper delivery.

Notify any creditors of your move.

Transfer prescriptions and be sure you have an adequate supply of medications on hand.

Assemble a file folder of information to leave for the new owner of your home.

Change your address – One week before your move, send change-of-address cards to everyone who will need to contact you.

Pick up laundry — Laundry tickets are easy to misplace, so ask for your things by name and not just by the receipts you have.

Pack a travel kit:
Put aside critical items like a checkbook, credit cards, personal phone book, ID, flashlight, keys, toiletries, tools, paper plates, cups, towels, travel alarm clock, aspirin, bandages and games for the kids. Also, pack a suitcase with clothing and other personal items.

One day prior to Moving Day

Transfer your bank accounts.

Take animals to vet for immunization, if necessary.

Close and empty your safe-deposit box.

Settle any bills with local businesses.

Drain power equipment of oil and gas. Drain water hoses.

Find new homes for plants that will not be moved.

Confirm any travel reservations.

Drain your waterbed.

Defrost refrigerator and freezer, propping doors open.

Let movers pack your belongings (unless it’s a do-it-yourself move).

Disconnect and prepare major appliances for move.

Set aside anything that will travel in your car so it will not be loaded on the truck.

Pack a box of items that will be needed first at the new house. Clearly mark this box “Load Last.”

Obtain cash or traveler’s checks for the trip and to pay the movers.

Confirm arrival time of your moving van/truck.

If moving yourself, dismantle beds and other large furniture.

Moving Day

If using a mover, be sure someone is at the old house to answer questions.

Note all utility meter readings.

Read your bill of lading and inventory carefully before signing. Keep this paperwork in a safe place.

Delivery Day – Again, be on hand to answer any questions.

Check your belongings carefully and note on the inventory paperwork any damaged items.

On an interstate move, be prepared to pay the driver before your possessions are unloaded.

Supervise unloading and unpacking.

Be prepared to pay your mover with cash, certified check, or traveler’s checks unless other arrangements have been made in advance.

Posted under Moving
Jan-20-2008

Moving Tips

Make a list.
Write everything down! You’ll thank yourself later. Before you pack even one box, create a simple record keeping system. Create a computer-printed list of numbers with a space to write the contents. Or have a spiral-bound notebook for the job. You’ll place a number on EVERY box you pack and list the contents on your list. Don’t put the list down unless it’s in a place you’ll call Packing Central. This is where you’ll find your labels, marking pens, box tape, and other supplies.

When describing the box contents, be specific — “A-D files” is better than “files”, and “Tulip dishes” rather than “misc. kitchen”.

Keep things together.
Insist on keeping things together when you or the movers are packing boxes. Keep bookends with books, light bulbs with lamps, and extension cords with appliances. Small, loose parts can be attached to the item they belong to with tape or placed in small envelopes — to keep picture hooks with pictures, shelf brackets with a bookcase, a special wrench and bolts with the wall unit. Keep larger corresponding items (such as a cable TV cord) in Ziplock bags, and tape these to the underside or back of the item. As a backup, have a “Parts Box” open on the kitchen counter and fill it with cables, cords, parts, pieces, brackets, or nails that are removed from any items of furniture. Keep this box with you, or mark it well with a rainbow of colored stickers so it can be easily located on move-in day.

Pack ahead.
Anything you can pack ahead will save you time on moving day. If it’s summer, get your winter clothes out of the way. You don’t really need 5 radios or TV’s around your house for the last few days there. Box up your shampoo and extra toothpaste and live out of a travel cosmetic case for the last week or two. Pare down cooking utensils and food supplies to bare essentials. Wastebaskets can also be packed (put things in them!) while you switch to using plastic grocery bags (hang them on a cabinet door or door handle to collect trash.)

Consolidate cleaning supplies.
If you must clean your old place after moving out, put together a kit of basic cleaning supplies and rags. Clean anything possible ahead of time (the inside of kitchen cupboards, the oven, windows, etc.), and if possible, vacuum each room as movers empty it.

Use your luggage.
Fill luggage and duffle bags with clothing, sheets, towels, and paper goods. Even for local moves you’ll be able to quickly spot your navy suitcase holding your favorite sweaters, whereas “Box #189″ might remain elusive for days.

Safeguard valued items.
It’s a good idea to keep valuable possessions, such as silverware, collections, or antiques, with you. If you have a long move and no room in your car, bury the items in a box titled “Misc. from kitchen pantry”. Either way, check your homeowner’s insurance to see how you are covered during the move, and if you need additional insurance from the mover. Also, find out what paperwork (receipts, appraisals, and photos) you might need to file a claim in case of loss.

Keep important papers with you.
Your list of “important” papers might include: birth certificates, school records, mover estimates, new job contacts, utility company numbers, recent bank records, current bills, phone lists, closing papers, realtor info, maps, and more. Don’t leave these with the mover. Keep them with you!

Personal boxes.
Use brightly colored storage tote boxes, one for each person. Let each family member fill theirs with items they’ll want ‘right away’ in the new home — a set of sheets, a towel, a couple of extension cords, a phone, nightlights, address book, pens and paper, keys, kleenex, and travel cosmetic case, and so on.

Have plenty of supplies.
Don’t make me say this twice– you’ll need LOTS of boxes–probably more boxes than you think, and having enough boxes will make your life easier! (If you buy your boxes from a moving company, you can always return unused boxes for a refund. If you got them free from the grocery, just toss any leftovers.) Have about 10 boxes set aside to use for last minute items on moving day, such as bedding, clothing, and cleaning supplies. You’ll need strong plastic packing tape to close up the boxes securely. Use unprinted newsprint (newspaper can stain your items) or packing paper or bubble wrap to wrap and cushion household good. Again, you’ll need lots more supplies than you think, so get extra so the packing can go smoothly. Return any unused supplies after the truck is packed.

Utilize wardrobe boxes.
These tall boxes are perfect for bulky, lightweight items such as comforters, pillows, and blankets, as well as clothes that need to remain hanging. Call your mover to ask the width of the wardrobe boxes they’ll be bringing. Then measure the clothes in your closets (including coat closets) to see how many wardrobe boxes you’ll need. You can also use them for closet storage boxes, shoe boxes, and other bulky items such as fabric bolts, large baskets, or gift wrap tubes.

Don’t make the boxes too heavy to lift, however. One mover told the story of someone who put a bowling ball in a wardrobe box! When the box was lifted off the truck the bottom gave way, sending the bowling ball on a wild ride down the ramp, across the street to the gutter, then down a hill where it finally came to rest in a roadside ditch. (Is that a strike or a spare?)

Strategize wardrobe box use.
Moving companies will be happy to deliver boxes ahead of your moving day. Or if you’re doing the move yourself, get things organized as early as possible. A few days before your move, fill some sturdy handled shopping bags with bulky closet items such as shoes, sweaters, belts, and jeans. On moving day, fill the bottom of the wardrobe boxes with some of the shopping bags, then add your hanging clothing. Pack hanging items tightly so things won’t move around and fall off of hangers. Finally, cover the shoulders of your clothes (a dry cleaning bag works well), then add a few purses or sweaters on top. You’ll have fewer boxes, and closet items remain together. Also, the shopping bags will make it easier to retrieve your belongings from the bottoms of a tall wardrobe box.

Color coordinate.
Designate a color for each room in the new home, such as yellow for kitchen, orange for dining room, etc. Apply colored stickers on the box near the box number. In your new home. Put a matching sticker on the door to each room. The movers will know where to put everything when they arrive at the desitination. It’s also helpful to post a big sign on the wall in the room where you want boxes stacked, (“Boxes here please”) to keep them out of furniture and traffic areas.

Posted under Moving
Jan-20-2008

Selling Process From Start To Finish – Step By Step

Pre-Listing Activities

1 Make appointment with seller for listing presentation
2 Send seller a written or e-mail confirmation of listing appointment and call to confirm
3 Review pre-appointment questions
4 Research all comparable currently listed properties
5 Research sales activity for past 18 months from MLS and public records databases
6 Research “Average Days on Market” for this property of this type, price range and location
7 Download and review property tax roll information
8 Prepare “Comparable Market Analysis” (CMA) to establish fair market value
9 Obtain copy of subdivision plat/complex lay-out
10 Research property’s ownership & deed type
11 Research property’s public record information for lot size & dimensions
12 Research and verify legal description
13 Research property’s land use coding and deed restrictions
14 Research property’s current use and zoning
15 Verify legal names of owner(s) in county’s public property records
16 Prepare listing presentation package with above materials
17 Perform exterior “Curb Appeal Assessment” of subject property
18 Compile and assemble formal file on property
19 Confirm current public schools and explain impact of schools on market value
20 Review listing appointment checklist to ensure all steps and actions have been completed

Listing Appointment Presentation

21 Give seller an overview of current market conditions and projections
22 Review agents and company’s credentials and accomplishments in the market
23 Present company’s profile and position or “niche” in the marketplace
24 Present CMA Results to Seller, including Comparables, Solds, Current Listings and Expireds
25 Offer pricing strategy based on professional judgment and interpretation of current market conditions
26 Discuss Goals with Seller to Market Effectively
27 Explain market power and benefits of Multiple Listing Service
28 Explain market power of web marketing, the MLS IDX program and REALTOR.com
29 Explain the work the brokerage and agent do “behind the scenes” and agent’s availability on weekends.
30 Explain agent’s role in taking calls to screen for qualified buyers and protect seller from curiosity seekers
31 Present and discuss strategic master marketing plan
32 Explain different agency relationships and determine seller’s preference
33 Review and explain all clauses in Listing Contract & Addendum and obtain seller’s signature

Once Property is Under Listing Agreement

34 Review current title information
35 Measure overall and heated square footage
36 Measure interior room sizes
37 Confirm lot size via owner’s copy of certified survey, if available
38 Note any and all unrecorded property lines, agreements, easements
39 Obtain house plans, if applicable and available
40 Review house plans and make copy
41 Order plat map for retention in property’s listing file
42 Prepare showing instructions for buyers’ agents and agree on showing time window with seller
43 Obtain current mortgage loan(s) information: companies and & loan account numbers
44 Verify current loan information with lender(s)
45 Check assumability of loan(s) and any special requirements
46 Discuss possible buyer financing alternatives and options with seller
47 Review current appraisal if available
48 Identify Home Owner Association manager if applicable
49 Verify Home Owner Association Fees with manager – mandatory or optional and current annual fee
50 Order copy of Homeowner Association bylaws, if applicable
51 Research electricity availability and supplier’s name and phone number
52 Calculate average utility usage from last 12 months of bills
53 Research and verify city sewer/septic tank system
54 Water System: Calculate average water fees or rates from last 12 months of bills )
55 Well Water: Confirm well status, depth and output from Well Report
56 Natural Gas: Research/verify availability and supplier’s name and phone number
57 Verify security system, current term of service and whether owned or leased
58 Verify if seller has transferable Termite Bond
59 Ascertain need for lead-based paint disclosure
60 Prepare detailed list of property amenities and assess market impact
61 Prepare detailed list of property’s “Inclusions & Conveyances with Sale”
62 Compile list of completed repairs and maintenance items
63 Send “Vacancy Checklist” to seller if property is vacant
64 Explain benefits of Home Owner Warranty to seller
65 Assist sellers with completion and submission of Home Owner Warranty Application
66 When received, place Home Owner Warranty in property file for conveyance at time of sale
67 Have extra key made for lockbox
68 Verify if property has rental units involved. And if so:
69 Make copies of all leases for retention in listing file
70 Verify all rents & deposits
71 Inform tenants of listing and discuss how showings will be handled
72 Arrange for installation of yard sign
73 Assist seller with completion of Seller’s Disclosure form
74 “New Listing Checklist” Completed
75 Review results of Curb Appeal Assessment with seller and provide suggestions to improve salability
76 Review results of Interior Décor Assessment and suggest changes to shorten time on market
77 Load listing into transaction management software program

Entering Property in the Multiple Listing Service Database

78 Prepare MLS Profile Sheet – they are responsible for “quality control” and accuracy of listing data
79 Enter property data from Profile Sheet into MLS Listing Database
80 Proofread MLS database listing for accuracy – including proper placement in mapping function
81 Add property to company’s Active Listings list
82 Provide seller with signed copies of Listing Agreement and MLS Profile Sheet Data Form
83 Take additional photos for upload into MLS and use in flyers.

Marketing The Property

84 Create print and Internet ads with seller’s input
85 Coordinate showings with owners, tenants, and other REALTORS® Return all calls – weekends included
86 Install an MLS electronic lock box if authorized by owner. Program with agreed-upon showing time windows
87 Prepare mailing and contact list
88 Generate mail-merge letters to contact list
89 Prepare flyers & feedback faxes
90 Review comparable MLS listings regularly to ensure property remains competitive in Price, terms, conditions and availability
91 Prepare property marketing brochure for seller’s review
92 Arrange for printing or copying of supply of marketing brochures or fliers
93 Place marketing brochures in all company agent mail boxes
94 Upload listing to company and agent Internet site
95 Mail Out “Just Listed” notice to all neighborhood residents
96 Advise Network Referral Program of listing
97 Provide marketing data to buyers coming through international relocation networks
98 Provide marketing data to buyers coming from referral network
90 Provide “Special Feature” cards for marketing, if applicable
100 Submit ads to company’s participating Internet real estate sites
101 Price changes conveyed promptly to all Internet groups
102 Reprint/supply brochures promptly as needed
103 Loan information reviewed and updated in MLS as required
104 Feedback e-mails/faxes sent to buyers’ agents after showings
105 Review weekly Market Study
106 Discuss feedback from showing agents with seller to determine if changes will accelerate the sale
107 Place regular weekly update calls to seller to discuss marketing & pricing
108 Promptly enter price changes in MLS listing database

The Offer and Contract

109 Receive and review all Offer to Purchase contracts submitted by buyers or buyers’ agents.
110 Evaluate offer(s) and prepare a “net sheet” on each for the owner for comparison purposes
111 Counsel seller on offers. Explain merits and weakness of each component of each offer
112 Contact buyers’ agents to review buyer’s qualifications and discuss offer
113 Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible
114 Confirm buyer is pre-qualified by calling Loan Officer
115 Obtain pre-qualification letter on buyer from Loan Officer
116 Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date
117 Prepare and convey any counteroffers, acceptance or amendments to buyer’s agent
118 Fax copies of contract and all addendums to closing attorney or title company
119 When Offer to Purchase Contract is accepted and signed by seller, deliver to buyer’s agent
120 Record and promptly deposit buyer’s earnest money in escrow account.
121 Disseminate “Under-Contract Showing Restrictions” as seller requests
122 Deliver copies of fully signed Offer to Purchase contract to seller
123 Fax/deliver copies of Offer to Purchase contract to Selling Agent
133 Fax copies of Offer to Purchase contract to lender
124 Provide copies of signed Offer to Purchase contract for office file
125 Advise seller in handling additional offers to purchase submitted between contract and closing
126 Change status in MLS to “Sale Pending”
127 Update transaction management program to show “Sale Pending”
128 Review buyer’s credit report results — Advise seller of worst and best case scenarios
129 Provide credit report information to seller if property will be seller-financed
130 Assist buyer with obtaining financing, if applicable and follow-up as necessary
131 Coordinate with lender on Discount Points being locked in with dates
132 Deliver unrecorded property information to buyer
133 Order septic system inspection, if applicable
134 Receive and review septic system report and assess any possible impact on sale
135 Deliver copy of septic system inspection report lender & buyer
136 Deliver Well Flow Test Report copies to lender & buyer and property listing file if required
137 Verify termite inspection ordered
138 Verify mold inspection ordered, if required

Tracking the Loan Process

139 Confirm Verifications Of Deposit & Buyer’s Employment Have Been Returned
140 Follow Loan Processing Through To The Underwriter
141 Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale
142 Contact lender weekly to ensure processing is on track
143 Relay final approval of buyer’s loan application to seller

Home Inspection

144 Coordinate buyer’s professional home inspection with seller
145 Review home inspector’s report
146 Enter completion into transaction management tracking software program
147 Explain seller’s responsibilities with respect to loan limits and interpret any clauses in the contract
148 Ensure seller’s compliance with Home Inspection Clause requirements
149 Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs
150 Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed

The Appraisal

151 Schedule Appraisal
154 Provide comparable sales used in market pricing to Appraiser
152 Follow-Up on Appraisal
151 Enter completion into transaction management program
153 Assist seller in questioning appraisal report if it seems too low

Closing Preparations and Duties

154 Contract Is Signed By All Parties
155 Coordinate closing process with buyer’s agent and lender
156 Update closing forms & files
157 Ensure all parties have all forms and information needed to close the sale
158 Select location where closing will be held
159 Confirm closing date and time and notify all parties
160 Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining Death Certificates
161 Work with buyer’s agent in scheduling and conducting buyer’s Final Walk-Thru prior to closing
172 Research all tax, HOA, utility and other applicable prorations
162 Request final closing figures from closing agent (attorney or title company)
163 Receive & carefully review closing figures to ensure accuracy of preparation
164 Forward verified closing figures to buyer’s agent
165 Request copy of closing documents from closing agent
166 Confirm buyer and buyer’s agent have received title insurance commitment
167 Provide “Home Owners Warranty” for availability at closing
168 Review all closing documents carefully for errors
169 Forward closing documents to absentee seller as requested
170 Review documents with closing agent (attorney)
171 Provide earnest money deposit check from escrow account to closing agent
173 Coordinate this closing with seller’s next purchase and resolve any timing problems
174 Have a “no surprises” closing so that seller receives a net proceeds check at closing
175 Refer sellers to one of the best agents at their destination, if applicable
176 Change MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers
177 Close out listing in transaction management program

Follow Up After Closing

178 Answer questions about filing claims with Home Owner Warranty company if requested
179 Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
180 Respond to any follow-on calls and provide any additional information required from office files.

Posted under Seller
Jan-20-2008

What Questions Should I ask a Mortgge Lender

It is important that you understand how each loan program differs before making the loan application. We would like to suggest you ask these questions.

1. What fixed and adjustable loan programs are available?
2. What are the origination fees and points on these loans?
3. What will the closing costs be?
4. What prepaid items will I be expected to pay?
5. How long does the loan application to approval process take?
6. Will there be a prepayment penalty on the loan?
7. Is there an interest rate lock-in policy?
8. Does the loan have a call provision?
9. Are escrows required for taxes and insurance premiums?

Posted under Buyer
Jan-20-2008

Protecting the Seller in an “As Is” Sale

For those Sellers who desire to sell real estate “As Is,” with no obligation to make any repairs to the property either before or after the closing. (“As Is” transactions tend to be prevalent in a resale of foreclosed properties, auctions, sales of commercial and industrial, sales of residential landlord properties and many seniors selling their residence. )

The following should occur in order to protect the Seller in an “As Is” Sale.

• The contract cannot state that the Seller has any obligation to make repairs, several contract drafting areas must be addressed.

• All warranty language and all provisions that may require the Seller to make repairs must be removed. The obvious “Seller warrants the condition” clauses must be deleted. Also any repair language clauses for termite, septic, and home inspections.

• Insert an omnibus disclaimer addendum to the contract such as the following in a conspicuous type font (bold/all caps):

“THIS SALE IS MADE AS IS WITH NO WARRANTIES EXPRESS, AND/OR IMPLIED, ALL OF WHICH ARE HEREBY DISCLAIMED. NOT WITHSTANDING ANY PROVISION IN THIS CONTRACT AND RELATED ADDENDUM TO THE CONTRARY, THE SELLER SHALL HAVE NO LIABILITY FOR PROPERTY CONDITION MATTERS AND/OR ANY REPAIR OBLIGATIONS OF ANY NATURE WHATSOEVER”.

• Always have your Principal Broker review the contract.

Posted under Seller
Jan-20-2008

As Is Condition

Words in a contract intended to signify that no guarantees whatsoever are given regarding the subject property and that it is being purchased exactly as it is found. An “As Is” indicator is intended to be a disclaimer of warranties or representations. The recent trend in the courts to favor consumers tends to prevent sellers from using ” As Is ” wording in a contract to shield themselves from possible fraud charges brought by neglecting to disclose material defects in the property.

Even though an “As Is” clause may give some protection to the seller from unknown defects, the clause is inoperative when the seller actively misrepresents the condition of the property. It does not shield the seller who fails to repair a readily observable defect, basically saying “You take it as you see it.” The idea is that the buyer takes the visible condition into account when making an offer and setting the purchase price. Therefore, if a buyer should be expected to discover a defect upon a reasonable inspection, the buyer will be charged with notice; otherwise, the broker and/or seller have the affirmative duty to inform the buyer of the defect, preferably in writing.

Sellers can protect themselves by being specific in the contract, for example, about recurring plumbing problems, a cracked foundation, leaky roof, den built without a building permit, all in “As-Is” condition. If for example, the roof defect was not obvious and the buyer did not know of this material defect, but the seller did know, then a general “As-Is” clause is probably worthless.

Many contracts contain standard language that must be evaluated in light of an “As-Is” clause. For example, the seller may still be required to provide a termite report even though the property is sold “As- Is”. In such a case, the seller may want to affirmatively delete the standard termite clause. Also, “As Is” does not normally cover title encroachment matters unless specifically noted.

Even where an “As-Is” clause can protect a seller, many courts hold that a broker cannot use the “As-Is” clause to avoid liability for misrepresentation, because the broker is not a party to the contract in which the “As-Is” clause is contained.

In appraisals, “As Is” is an indication that the value estimate is made with the property in its current condition, which may not be the highest and best use or may include needed repairs.

Posted under Real Estate Terms
Jan-20-2008

Why should I use a real estate agent?

A real estate agent is more than just a “sales person.”  They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a home.  Due to the fast changing market, the data on available listings is not 100% accurate.  There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent.

There are two types of agents, “Buyer’s Agents” and “Seller’s Agents”.  It used to be common for all parties involved to work for the seller, hence the term “Seller’s Agent”.  Nowadays, you will most often find a different type of agent, the “Buyer’s Agent”.  If you are in the market to buy, it would be advisable to use a Buyer’s Agent.  They can make recommendations on what terms and prices to offer as well as negotiating a deal with your best interest in mind.  If you happen to be working with a Seller’s Agent, never disclose to them the top dollar you are willing to pay for any property.  Keep it narrowed down only to things that you would tell the seller directly. 

Posted under First Time Buyers
Jan-20-2008

Finding A Good Realtor

There are an infinite number of legal complexities, potential errors and omissions, and confusing decision that go along with any Real Estate transaction. You want to choose the right Realtor®, who is equipped to guide you through the maze. You want someone who is a professional and has the proper training and connections.

The first thing that you might want to do is ask your friends whom they would recommend. A Professional Realtors® livelihood depends on their reputation and word of mouth will spread if people are satisfied with their services. The second step to take in finding a Realtor® is to look at phone listings for a Realtor® who:

…..is established in your community/has business premises

…..is a full time professional

…..has the ability to list on the Multiple Listing Service

You can also meet Realtor® by attending “Open Houses”. You might find someone that you immediately “click” with!

Posted under Buyer
Jan-20-2008

Do I Listen To My Realtor?

The process of deciding as to whether you will take your Realtors® advice when it differs from what you would prefer to do is similar to the process you would go through if deciding to take your doctor, lawyer or accountant’s advice.

We all have, at some time, reached a point where we have a conflict between our wishes and what our professional advisers advocate. We generally decide that, having chosen our professional well and trusting in their knowledge, it is the wiser course to take advantage of their expertise and advice.

Your Realtor® may advise you that, if you have fallen in love with a particular property, you are best off to move rapidly rather than taking days to talk it over. That advice may well come from the fact that your Realtor® is aware that many other prospective purchasers are interested in that same property and that to delay an offer may cause you to lose your dream home.

Your Realtor® may also advise you to think about deleting certain clauses you may want to insert into your offer. They have dealt with many offers to many vendors and is aware that certain clauses may make your offer unappealing to the vendor and cause them to reject your offer.

Your Realtor® is well aware that the process of buying a new home is frequently an emotional roller coaster. Realtors® are well equipped to help you through the legal and emotional maze to that prize in the center – your new home!

Posted under Buyer
Jan-20-2008

Dealing With Purchase Contracts

Buying or selling a home can involve a lot of paperwork that at times can seem overwhelming. If you have decided you want to buy or sell property you will need to be familiar with the paperwork.

The purchase agreement is one of the most important documents you’ll sign so it would be prudent to understand just what is involved!

Prior to finding your dream property or putting your home on the market, it is advisable to read and understand purchase agreements. This is a legal and binding document in a court of law once buyer and seller sign it. A little scary? Not once you understand it.

A lawyer, as well as a Realtor®, can help you with this. The agreements can vary as well. Some places use a standard contract, which has been approved by the Board of Realtor® and other use agreements drawn up by lawyers that can have a significant number of clauses. You may also need to have some of the agreement modified to suit your needs – this is acceptable as long as the other party agrees.

Once you’ve decided to enter the market, whether it’s buying or selling, do some research about the documents involved. Feel secure when you sign on the dotted line and never sign until you clearly understand the document. You can save yourself of lot of headaches if you do a little pre-buying/selling footwork!

Posted under Buyer
Jan-20-2008

Consult a Realtor

Changing your residence always creates some stress. When we are buying or selling,we have large amounts of money involved, and must deal with the stress of moving – we are indeed in a major life transition.

Dealing with these basic stresses and all of the additional demands of locating and viewing, listing and showing, negotiating the deal and handling the closing details without the help of a qualified Realtor® could put one in overload.

There are a lot of problems that can arise in a Real Estate deal and a professional Realtor® is trained and prepared to deal with those problems. Additionally it is a fact of human nature that most people find it difficult to negotiate a deal directly with the seller.

Having Realtors® represent both parties in a deal allows the buyers and sellers to present or decline offers based strictly on the offer’s merit. Sellers can get quite emotional about offers. They may think an offer is insulting or that is disparages their much loved home. Buyers may think sellers are unreasonable.

It is far less stressful to have a professional Realtor® be a middleman and just present the offers without the accompanied emotion. A Realtor® can make suggestions that may help a deal to complete when the buyer and seller are so incompatible that they could never negotiate a deal on their own.

Choosing to act as your own Realtor® can teach you that “Experience is something you don’t get until just AFTER you need it!”

Posted under Buyer
Jan-20-2008

A Bit On Title Insurance

If you finance the purchase of your home through a lender, the lender will require you to purchase title insurance. Title insurance, like many other forms of insurance, is something that you are unlikely to ever need. However it only takes one uninsured accident or, in this case, one overlooked claim against your uninsured title to create havoc with your future financial plans!

A title search will be conducted before the closing and a report prepared which will detail any loans, liens, or legal claims of any kind against the property you wish to purchase. The possibility does exist, however, that there may, in future, be some claim that did not appear at the time the report was prepared. It is these possible future claims that you are insuring against.

Your one time purchase of title insurance will cover the amount the lender has invested in your property by way of a mortgage and also you may choose to purchase additional title insurance which will cover your equity (up to a stated maximum amount).

Posted under Buyer
Jan-20-2008

Professional Appraisals

Before approving your mortgage application the lender may require a professional appraisal of the property you want to buy.

This is to ensure that the selling price agrees with the current market value for such homes. The price charged by the appraiser depends on the complexity of the appraisal and the time available to complete it. Appraisers use a number of techniques to establish the value of a property. Some look at comparable homes sold in the past six months, adjusting the prices to reflect differences between these homes and the property being appraised.

If several similar homes have recently sold, the appraiser’s work is fairly simple. If your home is situated in a rural area, or in a neighborhood where there is mixed development the appraiser’s task is more complex.

Usually the appraised value is very close to the sale price. If the appraisal is lower, the listing Realtor® may have to make a case for the lowering of the price to the seller.

Posted under Buyer
Jan-20-2008

Work With Your Realtor

Although marketing your property is the Realtors® responsibility, you can aid the process by working with them to do the job. They want and need a working relationship with you that is based on your confidence in their professional competence.

They will show that competence by discussing market conditions with you frankly and need your cooperation in setting a realistic price for the property. They will also point out ways of enhancing its appeal and depend on you to keep the premises in good shape so that the showings go smoothly.

Other agents will be showing the property as well, so make sure that you are both aware of any special arrangements that need to be in place so that things go well. Although they’re the marketing experts, please feel that the Realtors® want your input in this regard. They want to sell your home and will be grateful for any help you can provide.

Posted under Seller