SarahGray Lamm~REALTOR~ 60K Hours of NC Real Estate Experience~

The recent debate over on Norma Toering’s post about whether or not a plasma tv attached to the wall is a fixture or not reminds me of a sale I had earlier this year. It all ended well and never degenerated into a “war” but it did bring up some issues that will very likely need clarification in our contracts sooner rather than later!

My seller and I had discussed at time of listing that his audio/video system, which was controlled from a special closet in the Family Room, would likely be a point of discussion or negotiation when the right buyer came along. Not only was the plasma TV mounted on the wall but there was other equipment involved and the complex system controlled entertainment in some of the Bedrooms as well as the Living Room and Kitchen. He was more than willing to consider leaving the system “with the right offer.”

Sure enough, when our best offer arrived, it included the system with a caveat that if the seller would not leave the system, he would repair the damage made by removing it. Fair enough. We asked the buyer’s agent which option the buyer preferred. He preferred keeping the system so we set about negotiating a price for the home that would allow the seller to feel alright about leaving the system in place. We got to a bottom line figure and I conveyed it to the buyer’s agent who called me to say she and her client were having a hard time understanding the figure as her buyer “could go buy a flat screen TV at Best Buy for a few hundred dollars.”

"Yes, he could." I replied, "But that isn’t where the value lies." If you have ever had a complex audio/video system installed in your home, you know that the last issue is how much the TV is worth. I explained that there is a lot of time and expertise involved in selecting compatible components, programming them to work together and then learning how to operate the system. (I addressed this awhile ago in another post.) The buyer’s agent said she was unaware of this and would convey it to her client.

When they came back to us, the contract now included complicated language requesting that the seller agree to repair or replace any defective audio/video equipment found by the “home inspector” at his expense. Okay….except I am not aware that there are any licensed home inspectors out there who would consent to “inspect” a complicated audio/video system much less how we would agree that he/she was “qualified” to do so!

I picked up the phone and called the buyer’s agent and just asked her to share with me what, exactly, the buyer was attempting to accomplish. She said he really wanted the system, especially now that he knew what could be involved in replacing the components, but wanted to be sure that the system really worked “as advertised”!

It was an easy thing to work out once we all understood each other’s point of view! The seller simply agreed to show the agent and the buyer how the system worked during the home inspection and then agreed to come back after the buyer moved in and spend a couple of hours teaching him how to use it!

The deal closed, everyone is happy! But I can absolutely see that as this new technology becomes prevalent in many more homes these issues will need to be addressed! I can foresee professional AV equipment installers, like the one I wrote about in my previous post, who will have a new opportunity for business as an “AV expert” who can provide an opinion about the value and functionality of a system. I’ve seen these systems run into the thousands, even tens of thousands, and there will need to be some accommodations made for “fixtures” with such high value!

As ever, dealing with the issue up front, during the listing appointment, and then asking for the motivation of the parties during negotiations and resolving them creatively, will get you farther down the road than anything else!

At the end of last year, when the change over to digital TV was imminent, I decided to come into the 21 st century and dump my cobbled together stereo system and 400 pound television (well, it FELT that way) and call in a professional. I mean, who isn’t wooed by the idea of a flat panel TV with sound streaming through quality audio speakers and the ability to play my ipod in sync with cool pictures streaming on the TV screen during a party?

So I did what any self respecting Realtor does…I asked a Realtor for a recommendation! Another agent in my office had just done the same and she was thrilled with her set up. I enthusiastically wrote down the number for “her guy.”

Rich Dlesk of Audio Video One in Chapel Hill, NC was happy to come over and sit down with me and talk about my options. By the time he left after our first meeting I was already so impressed I would have turned over a blank check! What did he do? What DIDN’T he do!

First, he LISTENED to me. He asked how I live in my house; when did I listen to music and in what rooms; did I watch movies and in which rooms. He wanted to know if I had friends over for televised sporting events and in what other ways I used media to entertain. He wanted to know if I had considered plans for future expansion of the system, say, should I ever make an addition to the house!

Second, he EXPLAINED how all this high tech stuff needs to work together and how it sometimes doesn’t just because the manufacturer says it should. He explained WHY that is and the best way to ensure that I didn’t end up with components that wouldn’t “talk” to other components or equipment that was not going to be used to its best ability if I didn’t have other equipment it requires.

Third, he OFFERED to design several possible systems that he felt would work for me and then SUGGESTED that there were some other cool options out there that I might like and which he would be happy to include BUT he would design the system in such a way that they could be added later if I didn’t want to come up with the cost all at once.

Lastly, he ASSURED me that he would seek out the best deals he could on the equipment he would be suggesting and made it clear that he had relationships with vendors of equipment that he had PERSONALLY tested and would vouch for the quality. His GUARANTEE was a year of FREE service to be sure I knew how to use the equipment AND that it was configured in a way that worked well for me.

Let me just say that the whole process was pleasant, informative, educational and made me feel like a valued customer. I love my system and Rich delivered just as he promised he would that first day. When my clients and friends ask me if I know someone who can set up an audio/video system for them I tell them to call “my guy” Rich Dlesk.

See that’s the thing about real estate agents…we not only network for referrals, we network for the awesome folks who become our go-to people whenever a client asks “Do you know anyone who…?” Yes, I do!I know lots of folks who are great at what they do…and hopefully that’s part of what makes me the one you recommend when someone says “Hey, do you know a great real estate agent?”

Hurricane Bill just skirted our coastline and there will be more hurricanes to come. North Carolina residents know that this time of year means firing up the generator to make sure it works and laying in the list of supplies on the Hurricane Preparedness Checklist. As a professional Realtor I owe it to my clients to tick the extra boxes that my experience has put on my Closing Preparedness Checklist!

Consider this scenario:

Closing is scheduled for 9 a.m. on Friday morning. The seller has moved out and the buyer has the moving truck ready to head to the new house as soon as he has the keys in hand. The seller informs his insurance company that he will no longer own the home as of Friday and cancels the homeowners’ policy as of that date. The buyer has his insurance in place, set to insure the home as of the same date. But at 9 a.m. Friday the loan docs aren’t ready. The attorney hasn’t gotten the package from the lender and has been informed that it is “on the way”. Closing time is delayed until 4 p.m. The buyer is nervous and had planned to stay in the house that night, getting settled over the weekend before starting a new job on Monday. No keys, no occupancy. Agents are scrambling to accommodate. Can the buyer move in early? Will the seller allow a rent back if closing doesn’t take place until Monday? (Did I mention there is a hurricane off the coast?)

The loan docs arrive! Closing will proceed at 4 p.m. All is well! Not so fast. The Orange County Register of Deeds closes at 4:30 p.m. and is a 20 minute drive from the attorney’s office. The attorney informs you that there is no way the deed will be recorded on Friday. The paralegal will do it first thing Monday morning. At least the buyer will have the keys and everything can get on as planned. The buyer rushes to get things moved in…hurricanes at the coast mean rain inland. There’s just one little thing about hurricanes…they don’t always listen to the weatherman. By Saturday the hurricane has tracked west…it’s heading toward the Triangle. Nothing like 60 mile an hour gusting winds to mess up a moving weekend.

By Saturday evening there are trees down all over the neighborhood and one has managed to puncture the roof in its fall. Water is quickly pooling on the Living Room ceiling as it drips through the attic. Not to worry. The buyer has insurance! Or does he?

The deed has not yet been recorded meaning the buyers insurance may not be in force under the presumption that you cannot insure what you do not own. The seller canceled his insurance as of Friday and the damage occurred on Saturday. I think you can see where this is going. Suffice it to say that at the minimum, the insurance companies will be talking and there will be some anxious days ahead for both buyer and seller.

In North Carolina you do not actually “own” the property you just closed on until it is recorded with the Register of Deeds in the county where the home is located. This actually came about because of a hurricane! After Hurricane Fran in 1996 there were, what can only be described as, “Insurance Wars.” As a result, our standard purchase contract in NC was amended to specifically define “closing” as the date and time of recordation of deed.

My job is to foresee possibilities like this and do my utmost to avoid them! I ensure that the buyer and his attorney know my concern and make all efforts to schedule closing at a time when I can be reasonably sure that the deed will be recorded. I discuss with the seller why I feel it is important that they do not cancel their homeowners’ policy until I call them and tell them the deed has been recorded. I cannot predict or promise any outcome but I sure can make sure my client knows what might happen and is prepared as well as possible for the unpredictable.

I’m quite sure there are hundreds of closings that occur every day in North Carolina and never run into a “worst case” scenario like I have just described. As a buyer or seller it is ultimately your call how much risk you wish to absorb. But I also know way too many stories about what happens when folks aren’t prepared. Replace “hurricane” with “fire” or “burst water pipe” and you’ll begin to see what I mean.

Do you need an experienced Realtor to help you buy or sell your home? Maybe not…or maybe the peace of mind is worth it to you!

I love August! I get to hear from almost every one of my newest home owners! This is the month that North Carolina tax bills arrive. I should be getting mine soon judging from the emails in my inbox and the text messages on my blackberry.

There are many reasons why first-timers are some of my favorite clients, not the least of which is that you are so excited about your newest venture in life – being a home owner. But I’m sure you know that enthusiasm sometimes overshadows the not so exciting information we ask you to absorb during the closing process. 'How to pay a tax bill' seems to be at the bottom of any list of to-dos for a newbie. I get that. But by August, tax bills are at the top of that list. Nothing better than a bill from the state for thousands of dollars to get your attention.

Here’s a little rewind for those of you who may have missed this little tidbit at the closing table.

“Sometime in August you will receive a bill for your property taxes from your county in North Carolina. Hang on to it until you make your mortgage payment for September. Slip that bill into the envelope with your monthly payment and send it right on over to your lender. They will pay the bill.

When we went to closing the lender escrowed the portion of the taxes paid by the seller for the time they lived in the house. You still have September thru December to make your mortgage payments and a portion of that is being escrowed to make up the portion of the taxes you owe for the time you have lived there. The lender will send a check to your county in December – they just don’t know exactly how much or where to send it until you give them the bill!”

I know, I know, I could call you all in July and remind you but how much fun would that be? Today I got a great email from a young client who told me that when the bill for thousands of $$ arrived yesterday her husband remembered something I’d told them about it. (points) He checked his iPhone and there it was “Don’t Pay The Property Tax Bill.” She figured there was more to the story. She also invited me over to celebrate their little ones birthday on Saturday. (score!)

Many of you could be my kids and sometimes there is a perverse pleasure in the moment you get a panic call from a kid and you get to solve the problem with a simple solution and your kid is forever grateful. Don’t know what I mean? Ask your mom.

So you would love to live in Pittsboro, NC and take advantage of fantastic buys on homes there and a lower tax rate? But you work in Chapel Hill, NC or at UNC and it would just be so much more convenient to live nearby if gas prices keep going up ( and I think we know they will.) Then there is the age old problem of parking your car in Chapel Hill. When will THAT ever get easier?! You are in luck!

Chapel Hill Transit has just announced that they will begin weekday bus service from downtown Pittsboro to Chapel Hill! Starting August 24, 2009 the new PX route will begin at the Historic Chatham County Courthouse at the circle in Pittsboro and continue up to the Lowe's Home Improvement store at 121 Lowes Drive. From there up to Fearrington Village and on to Chapel Hill where it will stop at the UNC Parking Deck on Manning Drive, the Student Union and then the State Employees Credit Union on Pittsboro St. From there it's an easy connection to all points Chapel Hill on the regular bus routes. The longest route is projected to take less than 45 minutes and if you buy a pass, you will be GUARANTEED a free ride to your home or vehicle in the event of an emergency during the hours of 8:30 am to 4:00 pm on operational days.

Passes are $65 and can be purchased at Chapel Hill Town Hall, Pittsboro Town Hall and the Piggly-Wiggly in Pittsboro starting the 31st of August...that's because the route is FREE until then!

So now that you know you can make the trip up and down 15-501 everyday with a cup of coffee and your iPhone or Kindle, maybe you want to talk about buying a home in Pittsboro? Just a thought...