Market Insider

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Jan. 20, 2018

Home Inspections

Most home purchase contracts, if not all, will have some type of inspection contingency regarding the buyer’s interest in determining the physical state of the property in question.  Most will engage the services of a licensed home inspector who, for a fee, will spend several hours in the property going over everything with a fine-toothed comb and compiling a list of possible deficiencies in and out of the property.

As you agent will explain to you, this must be done in the contractual time frame agreed to by all parties for the buyer to request things to be repaired or replaced in order to remove their contingency in the contract. This is were it can get tricky, if your agent isn’t astute or savvy enough to interpret the findings into a list of fixes it could be problematic for the buyer.

I have seen a lot of home inspection contingency removal forms that agents have provided that simply are copied and pasted from the inspection report to the addendum. Case in point, if the home inspector finds the hall light isn’t working and notes on report “hall light was inoperable” and the agent copies this to the addendum it doesn’t clearly denote what the buyer’s intention is, it isn’t the selling agents job to determine the end result for the buyer. It may be assumed that you are asking for it to work when you take delivery but at this point it is a statement rather than a request and as seller isn’t being asked to take care of this problem. Buyers agent should have written “hall light is inoperable and needs to be repaired or replaced to working order”. This is a clearer example of the buyers wishes and should garner the desired result the buyer is looking for.

Make sure that your wishes as a buyer are being conveyed in a way that will deliver your expected result in all aspects of the contract, the Home Inspection process is important to the overall success of a smooth transaction. Make sure you broker is on top of your needs and putting them into the best light possible, Good Luck and Happy Selling!

Chance Harrison

CEO/Principal Broker

Green Lawn Realty

 

Jan. 19, 2018

2018 Real Estate Market

With the market being depleted of inventory, one of the causing factors is that sellers are hesitant to list their property for the lack of finding something else to purchase. This in tern makes a spiral effect on the housing market. 

How do we attract people to list their property in a housing market that offers very little in the way of available inventory? Sellers are often unaware that they can list their properties with the contingency called “Home of Choice Contingency” which means that a potential buyer would enter into a contract with the understanding that the seller needs time to find their next home. Most of the time there is a time limit for this to happen, much like a Buyer’s Home Sale Contingency but think of this as that in reverse. Understanding this scenario allows the seller to feel confident that they have a contract in place and once they find the right property they can move on it without the worry of maybe losing out on the opportunity while they sell their home first. 

These aren’t the best-case scenarios when the market is full of options but when we are seeing record low amounts of inventory you will see this type of contingency more prevalent in real estate transactions. That being said, this is an advanced level of real estate selling and you will need to make sure your agent can juggle all the different aspects of your transaction. 

Good Luck and Happy Selling!

Chance Harrison

CEO & Principal Broker

Green Lawn Realty

March 2, 2017

HELP! I'm a Buyer in a Seller's Market

The 2017 real estate market is starting out as a Seller's Market. What does that mean if you are a buyer? It means, you are probably going to be competing with other offers and paying close to or above asking price in many cases. Nobody wants to pay full price, but here are some tricks our Green Lawn Realty agents use to help ensure you get your dream home at a fair market price. 

Make your contract a winner!

1. Know Your Comps.
Unfortunately, now is not the time to put in "lowball" offers. Especially if the house is in good condition, is located in a desirable neighborhood and shows well.  Ask your Green Lawn Realty agent to run some comps to ensure you are not completely overpaying for the home of your dreams.
The appraisal will protect them but even if comes in low, they may need to be prepared to pay more than the appraised price - I know - Crazy!!
2. Be Unique
Make your sales price a unique number. For example, if the sales price is $250,000, offer $250,500. It's over asking price which always appeals to the seller and doesn't break the bank. Or $251,888 - most agents recommend offering prices in round numbers, use a odd number, you don't have to go up a ton but every little bit helps.
3. Be Quick and Flexible
Everyone makes the settlement date the last day of the month and usually on a Friday. Make yours a week earlier and even on a Monday or Tuesday if possible because it will make settlement smoother for the title company and lender and give you a leg up on competing offers, it might be a little inconvenient for you to move during the week, but moving is going to be inconvenient no matter what day it is!
4. You Have a Safety Net
If you are financing a property, your bank appraisal will ensure you don't pay more for a property than what it's worth. Even if the appraisal comes in a little low, consider how long you will live there and if you put in renovations, paying above the appraisal price might be worth it if you can add lots of equity in the future.  
5. Add an Escalation Clause!!!
Most agents do not use these forms. They are awesome and force the seller to "Prove" they got multiple offers better than yours. Your Green Lawn Realty REALTOR will explain how this document can work in your favor.
6. Limit Contingencies
Make your home inspection "For information Purposes Only." There are several ways to write this up into the contract, I prefer striking out all of the negotiation language. Your buyers can still get out of the contract if they are totally scared by what they find in the home inspection but it puts the seller at ease knowing the won't have to fix a bunch of stuff.
If you are a seller, now is the time to get your house on the market but keep in mind if you are buying something else in your area, you might just find yourself as a Buyer in a Seller's Market.
Contact Green Lawn Realty today for a home value report. 703-963-0923

 

Posted in Real Estate Tips