Q ~ When the real estate market was hot, properties had disclosure
packages and pictures online. Now that the market has cooled,
many listings have few or no pictures and inspections.
What happened?

A ~ Counter-intuitive, isn’t it? One would think that if sellers and/or
their licensee engaged in the process of selling a home, they
would bring everything to bear in order to make that sale happen.
Not so in this cooler market. Many sellers and their reps seem to
start with the attitude that the home might not sell at all.
Unfortunately, the sellers who could “save” hundreds of dollars in
inspections often wind up repeatedly reducing their list price
by the thousands. These sellers actually help the competing
fully-inspected homes sell first, for top dollar.

Seller inspections promote a sale, limit surprises and expensive
renegotiations, thus keeping the transaction together while avoiding
the likelihood of subsequent litigation.

Also, such short-sighted sellers usually hire licensees who won’t
be posting pictures, virtual tours or disclosure packages on the
internet. It’s not unusual for these licensees to then “work” open
houses repeatedly until their listing agreement period expires,
only to claim later, “I knew that property wouldn’t sell.”

Saturday, February 9, 2008

Do you have a question for the new real estate Q&A Market Wise column in the SJMN? If so, please email them to: info@SiliconValleyBroker.com

Q: We made an offer on a property just hours after one had already been accepted. The listing agent really pushed the idea of us being in a backup position should the first buyer falter. Although our agent was not thrilled with the idea, she still prepared all the proper paperwork, including a printed backup addenda.

We signed this addenda and resubmitted the offer to the listing agent for seller signatures. This agent, who initially promoted the backup offer aggressively, instead dragged his feet and never had our offer signed by his sellers. He gave one excuse after another to our rep, until finally he just stopped responding to e-mails and phone calls.

The property is still listed as a pending sale all over the Internet and includes his declaration “backup offers welcome.” This was a complete waste of our time. In retrospect, why would anyone want to enter into a backup position?

A: You got me. The reason your agent frowned on the idea is that your backup offer would likely increase the chances of the first buyer’s sale being successful. Backup offers simply hold the first buyer’s feet to the fire. This listing agent sounds just like the type who would tout your offer a lot.

Ideally, when someone narrowly misses out on a sale, a savvy buyer’s rep will repeatedly inform the listing agent that his/her client wants to be notified should the sale begin to fall apart. This preferred technique keeps negotiating power in your corner, not the listing agent’s.

1-2-10

E-mail questions to Pat at
pat@siliconvalleybroker.com

Q: I’m a homeowner and have been thinking this is a good time to trade up. While visiting open houses to get a feel of home values and neighborhoods, I’m amazed that often the hosting agent are just plain mean. I’m well dressed, smile and say “hello,” and most of the time the agent will look me up and down and proceed to be rude. I’m not sure if it’s the color of my skin or that I look young for my age. Do you think their sellers know how these listing agents treat visitors at these events?

A: Not likely. Sellers have no idea how a listing agent treats guests at their open house. Nor do they and their listing agents understand that should a prospective buyer feel slighted in any way, they will proclaim to their agent, “We would not buy that house if they gave it to us.” Even worse, the sales manager and/or broker/owners of these offensive agents are also clueless. Visually sizing up consumers is the mark of an amateur. Not only could he/she lose the sale or the listing, his/her license could be revoked. The pro knows that an older gentleman who pulls up to an open house in a beat-up truck could very well own a baker’s dozen of rental properties.
9-5-2009

Do you have a question for the new real estate Q&A Market Wise column in the SJMN? If so, please email them to: pat@SiliconValleyBroker.com

Q: We are selling our house and the buyer’s home inspector is recommending further inspection of the sub-area by an appropriate professional. We don’t feel this is warranted, as our pre-sale inspection noted basically the same observations and comments. Should we grant an extension to the buyer for the inspection of the foundation of a 48-year-old house in the suburbs? It’s an as-is sale.

A: Location, location, location? Consumers especially sellers, should follow this rule: Disclose. Inspect. Disclose. Buyers file the majority of lawsuits, many of which are often referred to as Bad House Cases. What sellers feel e.g., basically the same observation is moot. Until buyers are completely satisfied inspecting a home (often to the dismay of the agents involved), a seller should not sell them their house.

Foundations are the most neglected area of residential sales. Sub-areas should be inspected and maintained every seven years. This is news to the real estate community and consumers alike. But consider: downspouts and sprinklers annually dump gallons of water against the house. Insist on a foundation inspection report, plus an estimated cost of renovations that shall be delivered to all parties. Only then let the buyer proceed with the sale, or, conversely, let the buyer cancel the transaction. Either way, you’ll greatly reduce the likelihood of interviewing real estate attorneys

7-18-08

by Pat Kapowich SiliconValleyBroker.com, owns Kapowich
Real Estate in Sunnyvale. E-mail questions to him at
pat@siliconvalleybroker.com

Q: We have sold our home to a young couple who keep requesting visits for everything under the sun: room measurements, vendors, showing friends and family, etc. Our listing agent told the buyer’s agent that since their inspections and contingencies have successfully passed, any more access to our home would be an inconvenience. According to our agent, that announcement is unacceptable to the buyers. We have to move in two weeks and do not want any more interruptions. At what point can we as sellers close our doors to outsiders and get about the business of moving?

A: When you are unpacking your belongings at your new home, that’s when. Selling your home is an inconvenience. Having a sale fall apart because of perceived seller slights is a tragedy. Sellers can have a beautiful transaction in progress and the smallest thing can and will create real or imagined problems with unpleasant ramifications. That can include renegotiating or canceling the sale outright. And homes that go back on the market after a sale fails are rightly or wrongly stigmatized. Closing your doors to a buyer and her/his friends, family and vendors will only produce ill feelings toward the seller, the transaction and even the property.

Buyers and sellers are at an anxious time in their lives and bilateral goodwill is critical to demonstrate at every opportunity. Buyers tend not to file claims against people they like and/or purchases they feel good about.

The solution is this: Simply limit the number of these buyer visits, and make sure one or both agents involved in the transaction is or are present. It should be explained to the buyers that because the process of moving has begun, the home is no longer in showroom condition. Do yourself another favor and go one step further: Be present and helpful at a buyer walk-through. You’ll be finishing the sale the same way it started in good faith.

12-5-09

E-mail questions to Pat at
pat@siliconvalleybroker.com

Q: Over a 10-day period we received three offers on the property we are selling. However, each time the buyers and their agent mysteriously disappeared after our counteroffer. This seems unprofessional. What part of “negotiating” don’t these people understand?

A: Oh, many parts that comprise a whole lot of what sellers don’t want to hear. Perhaps they don’t understand why you still have a sign on your lawn. Or why your counteroffer appears to be the opposite of negotiating in good faith. Maybe it’s your listing agent’s attitude, which accompanied your counteroffers to these purchase offers. Since actions speak louder than words, your written response somehow prompted three groups to leave the negotiation table – not scoot up to it.

Any seller and listing agent who receive three offers and are unable to create a dialog – let alone ratify a sale – have only themselves to blame. Sure, there are exceptions to industry rules, but not here. It’s 2010; low-balling offers tend to be at the beginning of a slowdown, not in the recovery stage or in the colder months when inventory is at its lowest. Plus, your attitude that it must be unprofessionalism only that is hindering your move speaks volumes.

It’s time for you and your listing agent to have a serious sit-down. Review each offer carefully. What were the buyers offering in prices, terms and conditions? Conversely, what was the common theme of your opposition to these proposals? It’s even more important to reassess how well each party and their subsequent offer were handled before they were sent packing.The seller is a layperson who can reap benefits when following simple rules, even when surrounded by inept agents. Make sure your home is presentable, marketable and the occupants friendly at all times. Don’t forget that off-putting listing agents kill more sales than do pet odors.

Meet face-to-face with your listing agent to review all offers. If the buyer’s agent is not savvy enough to make a live presentation of his or her client’s offer, then put him or her on the speaker phone. Only then will you begin the art of negotiating.

It’s time to stop hiding behind the curtain. You’re not the Wizard of Oz, you’re really the boss, so act like it.

3-6-10

Send questions to pat@siliconvalleybroker.com.

Q: Over a 10-day period we received three offers on the property we are selling. However, each time the buyers and their agent mysteriously disappeared after our counteroffer. This seems unprofessional. What part of “negotiating” don’t these people understand?

A: Oh, many parts that comprise a whole lot of what sellers don’t want to hear. Perhaps they don’t understand why you still have a sign on your lawn. Or why your counteroffer appears to be the opposite of negotiating in good faith. Maybe it’s your listing agent’s attitude, which accompanied your counteroffers to these purchase offers. Since actions speak louder than words, your written response somehow prompted three groups to leave the negotiation table – not scoot up to it.

Any seller and listing agent who receive three offers and are unable to create a dialog – let alone ratify a sale – have only themselves to blame. Sure, there are exceptions to industry rules, but not here. It’s 2010; low-balling offers tend to be at the beginning of a slowdown, not in the recovery stage or in the colder months when inventory is at its lowest. Plus, your attitude that it must be unprofessionalism only that is hindering your move speaks volumes.

It’s time for you and your listing agent to have a serious sit-down. Review each offer carefully. What were the buyers offering in prices, terms and conditions? Conversely, what was the common theme of your opposition to these proposals? It’s even more important to reassess how well each party and their subsequent offer were handled before they were sent packing.The seller is a layperson who can reap benefits when following simple rules, even when surrounded by inept agents. Make sure your home is presentable, marketable and the occupants friendly at all times. Don’t forget that off-putting listing agents kill more sales than do pet odors.

Meet face-to-face with your listing agent to review all offers. If the buyer’s agent is not savvy enough to make a live presentation of his or her client’s offer, then put him or her on the speaker phone. Only then will you begin the art of negotiating.

It’s time to stop hiding behind the curtain. You’re not the Wizard of Oz, you’re really the boss, so act like it.

3-6-10

Send questions to pat@siliconvalleybroker.com.

Q: We want to move to a larger home, but the prices have dropped in
our neighborhood. I think we should make our move, my husband
thinks we should wait. Who is right?

A: If prices are soft in your neighborhoods, you’re not alone, As a rule,
savvy licensees know that cooler markets are the best time to buy up
or down. When the inventory is at its highest, sellers and their agents
tend to be polite and earnest. For example, they often will have the home
in better condition to be competitive and they’re willing to listen. Sometimes
they will agree to an offer contingent upon the sale and close of your
current residence. However, you’d need an agent capable of presenting a
contingent-sale offer. With the high turnover in our industry, though, many
agents don’t have the skill and experience required to orchestrate
buying and selling simultaneously.

Lacking a contingent sale, there are still many methods available
to take advantage of this excellent move up or down market. Don’t
let your husband wait for a frustrating hot market of limited inventory,
with buyers competing over homes with deferred maintenance and sellers’
agents who don’t return phone calls.

Market Wise Column
3-1-08

by Pat Kapowich. E-mail questions to him at
pat@siliconvalleybroker.com

Q: We sold our home with the stipulation that we could Rent-Back the house for up to six weeks.  The Buyer’s agent is now asking us to sign a Rental Agreement and put up a deposit.  We feel this is a little silly based on the circumstances.  Our friends just rented back their home for two months without any rental form.  My husband does not want to sign, which is causing a flurry of e-mails.  How common are these Rent-Back agreements anyway?

A: Not common enough! Savvy agents will reference a Rent-Back agreement in the blank part of the purchase contract under “additional terms or conditions.” Other agents will simply write something about a rent-back period and rate, but not stipulate that a written rent-back form will be executed.  Regardless, many Sellers feel it is a personal affront to even suggest a rental deposit is required.  It is important to note: Sellers seldom damage the home, the movers often damage the property ~ for example, marked-up vinyl or hardwood, doors and door jams.  It’s equally important to remember that rent-back agreements protect everyone’s interest.  So much so that those agents should incorporate a Rent-Back form with the original purchase offer or counter-offer.

Now is certainly not the time for a cumbersome three-page residential lease agreement. Instead, make sure the agents involved use a preprinted one- or two-page rent-back form.  It includes terms such as “seller in possession after close of escrow” or “seller occupancy after sale.” The rent-back forms should not make your husband uneasy. In fact, its purpose is to make him feel at ease about his brief tenancy.

4/3/10

Send questions for the Market Wise column in the San Jose Mercury News to Pat@SiliconValleyBroker.com

Q: My wife and I moved into our new home and found that the seller had switched out the washer and dyer. Our buyer’s rep did write in the offer “appliances per MLS” in the personal property clause of the contract. This is a little sleazy, but the agents involved are of no help. What should we have done? Include the brand, model and serial number of the appliances?

A: Yes! It’s been a sign of the times that agents, now more than ever, need to go back to the basics. Years ago it was common to write down the make and model of all appliances, fixed or portable. If it’s in writing, sellers will be less likely to play slight-of -hand with such large items. Plus, buyers should complete a written walk-through of the property one to three days before the property changes hands. Both agents should be communicating their expectations prior to a walk-through for the sake of avoiding surprises. Conversely, some sellers try to save a few bucks by not removing unwanted washers, dryers and refrigerators and the old freezer in the garage, later claiming, “Well, we thought it would be a nice gesture.”

2-6-10

by Pat Kapowich SiliconValleyBroker.com, owns Kapowich
Real Estate in Cupertino. E-mail questions to him at
pat@siliconvalleybroker.com