When Selling, Look at the Whole Picture

Question:   I knew real estate prices in my area dropped, but I was shocked when a Realtor told me how much my home was really worth in this market. Should I wait for the market to boom again?

Answer:   Time marches on, not backward. Waiting for real estate prices to return to pre-recession levels before you put your home on the market, means you don't understand that time only goes forward. Forward from here, there are no real estate booms immediately on the horizon. Yes, we'll see booms again, but wait for the next one, and you'll end up financially behind all those that keep their money moving and multiplying in today's markets. This waiting loss is compounded by the fact that every passing year makes your house one year older. That's "older" in every way from dated decor and appliances to out-of-date plumbing and everything else. This means that, when real estate prices increase, your home will be discounted by the renovation factor - the perceived cost of bringing the house up to current standards. If your resale home does not look "nearly brand-new," buyers see second-hand real estate which warrants a second-rate purchase price.

Look at the whole picture: As a Seller, you can gain in the long run if you buy a home in a location where market values have dropped, just like they have in your current area. It can give you the opportunity to buy your dream home at a big savings. Here's why: Say the market value has dropped 30% in your area, and 30% in the area where you can buy a larger, more modern home with everything you want, then since your new home is worth more than your current home, you are actually coming out ahead! 

The net gain from selling and buying is what should be considered, not just the profit from selling. Often the obvious gain in selling is to be free to take the next step in your life and to move to a new home, ready to start a lot more treasured memories.

Multiple Offer Situations

Question: My son made an offer on a house. If there are multiple offers, how are they handled in a fair manner? If another buyer offers more money, will my son have the chance to up his bid?

Answer:   With multiple offers, the owner (or banks if it’s a foreclosure) usually counter back all parties and ask them to submit their highest and best offer by a particular date and time, giving your son another chance. However, if there’s a clear distinction between the offers, i.e. ‘one is all cash, at or above asking price’ vs a less than asking price, fha loan, perceived as a weaker offer, the owner may very well pick the best offer without countering the other ones. Your son’s agent should be in contact with the listing agent indicating that you would rather see a counter offer than a rejection. But in all cases, if one offer clearly stands out considerably from the rest, that buyer usually ends up getting their offer accepted.

Cash Buyer

Think working with a cash buyer is easy? We received proof of funds. Hundreds of thousands of dollars available in her account. When closing time comes, the Sellers, sellers Realtor and attorney, the closing agent and the Attorneys paralegal have all worked on this closing and are in attendance. But the buyer did not show up. She is busy, has kids to pick up. Can't make it today. Bla bla bla.

After several threatining phone calls to the buyers real estate agent, he calls back to say he doesn't know what is going on, because he hasn't done anything since he showed her the home.  (Side Note..... this is why you want a dependable Realtor like us, who are there for you when there are problems to solve).

The sellers attorney calls the buyers attorney. What is going on? Buyers attorney said her funds are not available today. So he doesn't come to the closing and doesn't let anyone else know about this.

Day 2: Buyer shows up and signs the closing documents but still has no funds available. Sellers attorney calls the buyers attorney. We need to know the truth here. What is going on? The sellers don't know if they should move out or stay. Buyers attorney says he is going to Chase bank with her client tomorrow (Day 3) to see why the funds are not available.

Day 3 (Noon) Still have not heard anything. Makes you wonder how people can be like this. No concern for anyone but themselves. How do you put sellers through something like this without caring?

Lesson learned. Now we as Realtors have seen just about everything. Cash buyers will now need quadruple the usual earnest money if they are cash and want to buy one of our clients homes. Enough is enough!

Frank Lloyd Wright Style Home

We Listed a property in Munster. The Architect, according to the owners son, was a student of Frank Lloyd Wright. 

Spectacular, contemporary home that has the feel of a Frank Lloyd Wright Home. Over 7500 sq ft of finished living space on 1.6 Acres. Addition added in 1990. Huge Living & Dining rooms w/ hardwood floors & fireplace. Panoramic windows look onto the pictuesque grounds. Unique Kitchen with Granite counters, Sub Zero refrigerator & Viking Oven-Range. Large windows look onto the front Courtyard. Stunning Family room addition w/ Panoramic windows, fireplace and a roof designed to provide a visible waterfal during rainfall, that splashes onto the rock formation on the side of home. Numerous skylights thruout the home provide a lot of natural lighting. Breakfast patio looks onto the garden & art sculptures.

Check this property out on the Norton Safe Link:

http://www.coldwellbankeronline.com/ID/3289230

We are ready to Purchase our first Home. We have a Question.

Question: We are in our mid 20’s and have been married for a few months. We are ready to purchase a home. Someone advised us that we should purchase a home for near the maximum amount of our preapproval which is $325,000.  What do you suggest?

Answer:  You did not mention who gave you that advice, but we do not know of any reputable Real estate or Mortgage professional who would tell you that! When considering a home purchase, your Family budget must take first priority. Although your home is very important, there is more to life than a home. How about being able to purchase the right things for your family?  How about having a little cash extra to enjoy life? How about the necessity of having savings for an emergency or to reward yourself once in a while for all your hard work?  Money problems are very stressful.

You were approved for that amount based on your income and debts. Sounds like you are in a pretty good financial position. Why mess that up? Remember that there is a fine line between need and desire.

You need to sit down with your spouse and make a family budget. Decide which home mortgage payment fits that budget. Get advice from your parents and a financial adviser. Don’t take advice from anyone unless they are qualified to make those financial  suggestions. Ask your lender what price home fits that monthly payment. Then look at homes in that price range. Keep in mind that a house payment includes homeowners insurance, a tax bill, utilities and possible mortgage insurance.  If you do not like the homes you see in that price range, then do what your parents and grandparents did…...Save more money!

My Wife Changed her Mind about Selling Our Home, After We Sold it!!

Question:   My wife and I are selling our home and now my wife has changed her mind about moving. We have a signed sales contract, with earnest money, between us and the buyer. Is there any way to back out of the sale?

Answer:   To start, sales agreements can fall through due to reasons of financing, condition, title, etc, so the deal could still fall through. However, if the buyer has a valid purchase agreement accepted by both you and your wife, and it sounds like they do, then you are expected to work in good faith to fulfill your end of the agreement.

It may be that the buyer would accept a cash buyout to discontinue the purchase. However, you need to consider that the Brokers involved have found a ready, willing and able buyer and are likely to be entitled to a commission for their work. If you simply refuse to complete the transaction, then the buyers may sue for damages as well as “specific performance,” a requirement to complete the sale. We suggest that you speak to an attorney.

Question: I recently sold my home. The buyers have applied for a loan, but the Broker refuses to give me a copy of the appraisal. As the seller, shouldn’t I get a copy?

Answer:  No. The appraisal was ordered by the lender and paid for by the borrowers. As long as the loan is approved, it’s none of your business. However, if the appraisal comes in below the sales price and the purchaser asks you for a price reduction, you would then be on good grounds to ask for a copy.

 E-mail us your Real estate questions at: Cathyah@aol.com

Q&A: Taking Personal Property with You

Question: I took a few small bushes from my yard because they were given to me by my late Mom. The buyer noticed this and complained that they had to stay. Does certain personal property have to stay with the home when I sell?

Answer:  When selling or buying a home, you need to think ahead about what you are actually selling along with the property and the house.

The general rule is, "if it attached to the structure or the ground, it is real property and stays with the house."

For example, curtains are attached, but will the sellers leave them?

They may match the decor in the seller’s next home. What if they take them and the buyers assumed they would stay?

This can cause a disagreement. Disagreements tend to move from minor issues to major issues, because emotions rule and logic melts away. 

So if you want to take your curtains with you, put it in the contract. Don't "assume" anything.

Buyers and sellers can argue about the silliest things.

Believe it or not, there is a story about how a deal almost fell apart because the buyer wanted the sellers to leave the welcome mat. It must have been a really nice welcome mat. Normally, sellers are free to take their welcome mat with them when they move.

The point is that you need to think about these things in advance. If you have to unscrew a screw, detach anything from the interior or exterior structure, or uproot anything from the ground -- and you want to take it with you when you move -- put it in the contract. That way there are no possible misunderstandings later.

As far as the bushes go, explain to the buyer the sentimental value in these bushes and ask if you can replace them with something else suitable to the buyers.