An offer comes in and it calls for possession at close. Your seller currently occupies the property. What are your options, what are the flaws that can occur?
Risk of giving possession of the property at close, many factors to consider.
Risk to the buyer if the seller remains in the property after close and leases back for a short period of time.
Risk to the seller if they lease back the property after close.
Some safety nets that can be put in place is to have a walk through before and after the seller leaves the home with a property condition check off. Have a security deposit from the seller if they lease back. Communicate some concerns and have an upfront agreement on how things are to be handled.
Even the most smooth transactions can develop problems which can detract from the good experience. Explaining all the risks and letting the informed parties make a business decision on how they negotiate and accept the question of possession of the property.
When posed the question ... what do you recommend by the seller what would you say?
Just got a text message that read "Hey are you guys ready for a glass of wine this weekend? Let us know if you are available?" Now that just sounds great but who the heck sent that message? Not in my contact list, not sure if the message meant my husband and me or with my assistant. We had just closed on a very lengthy transaction which took over four months and all had promised to celebrate when it finally closed. As a last resort I will call the number but had hoped to uncover the mystery prior to calling.
Text messaging looks like this form of communication is becoming more of a priority over the phone call and even email. A survey conducted by the 2008 REALTOR indicated that 35% of real estate practitioners use text messaging on a daily bases and those number seem to be increasing.
If you are a Text Message User then consider these etiquette tips:
• Don't assume the party you are texting recognizes your number or has you in their contact base. Unless you know for certain, leave your name. (Would have been great in my case).
• Ask your client if they prefer email, text or telephone communication for updates? If they say text messages then ask them to put your name in their cell phone contacts.
• Be respectful not to over text as the client may not have unlimited text messages or confirm this heavy use is acceptable to the client.
• Abbreviations ... not everyone knows text language. Be considerate that one may not understand LOL, BTW, QQ, etc. If your client uses abbreviations you are not familiar go to www.webopedia.com for additional help in breaking the code.
• Don't be an addict on the text messaging as the only source of contact. Remember that this is a relationship business and look to connect on occasion personally with the client. A voice conversation not typed.
• Respect others time and don't text at odd hours, keep it within business hours. Phones make noises when messages are received and your client may have the phone by the bed stand. You will receive points for a message at 2:00 am.
• Don't be a slave to your phone; you do not have to respond if a message comes in well after your business day concludes. Keep your response time within reasonable hours as well.
Texting - embrace it as it looks like it will be more and more part of our business. Just remember to use etiquette and others will give you the same respect.
The recent spotlight on the mortgage industry and the practices of appraisers has resulted in some over the top knee jerk reactions that Realtors need to be prepared. Appraisers have been scrutinized and some have faced ridiculous requirements from underwriters and been dictated how they are to prepare their analysis. Fasten your seat belts; we are in for a long and bumpy ride!
An appraiser went out to a home with a gorgeous larger highly treed lot with a creek amenity. Very private setting and truly a premium in the market. The home also had a second story gameroom and bathroom amenity which the appraisal district had not reflected as living area on their tax records. The second story was all original construction, consistent in material finishes, normal stairs leading to the area, ceiling height was consistent with the level of the first level. The appraisal district simply had not properly record this option on the floor plan when the home was built. The homeowner was refinancing the home. When the owner received word from the lender that the home did not appraise the owner inquired about the appraisal report and got a copy.
Reviewing the appraisal report the owner found that the appraiser did not count the second level in the living area or any value. There was no view premium assessed as well. When politely confronted regarding these two items the answer the appraiser gave was alarming. No comparable sales were present over the last six months that had a similar view so no value could be given. The second level was not on the Appraisal District's records; therefore, he could not recognize it. I got the call after this input.
This clearly is poor judgment and flawed and inaccurate thinking of the appraiser. So views such as the above pphoto would receive no consideration if there are not any recent sales? If a home fronts a major highway would this is ignored as well if there were not any recent sales? Living area not included because of an error by the Appraisal District? I would dismiss this as a very poor report performed by an incompetent appraiser but I am told by other appraisers that do quality reviews that this type of thinking is becoming more and more prevalent. Afraid to adjust especially in a positive direction because no recent sales exist.
What has happened to good investigative analysis to determine premiums and common sense regarding proper reporting? Are all the recent changes and microscope reviews keeping appraisers from doing good accurate work? Will the more conservative underwriting override accuracy of reports and create difficulty in our selling process? Realtors beware and be prepared. Rridiculous... unfortunately no one will find this humorous just one more obstacle for us to hurdle.
When you list homes and work with buyers the opportunity on occasion will present itself, both sides of the transaction. Such is the case for me, I have a home listed and received a sign call that developed into an interested buyer. What a fantastic opportunity but one that needed to be treated with caution.
In the state of Texas we have the ability to work on both sides of the transaction through what is defined as Intermediary Relationship. There are many responsibilities of this relationship but one clear defining line; you must act as a mediator for both parties, no advice regarding negotiation decisions. You also cannot share any confidences and you must respect the price the seller has the home listed with no suggestion of the value being less. All parties must agree to this relationship and advised of their other representation choices (buyer & seller agents).
This is a very difficult balance responsibility when you are on both sides of the transaction. As an agent you have a responsibility to self reflect as to your comfort, knowledge level, ability to strictly adhere to the responsibility of this type of agency. Also this is probably one of the top reasons lawsuits develop over this form of agency and the perception of how the agent professionally handled the transaction.
Initially when the opportunity knocks you feel a moment of celebration, commission counting in your head, etc. Step back and reflect ... are you informed and experienced enough to properly handle this type of transaction? If there is any moment of a deep breath and hesitation then you best refer one of the parties to be independently represented by another agent. Make sure both the other agent and the party interview each other for comfort and acceptance. Sometimes that separation of relationships is absolutely the right thing to do. Also you need to keep your broker in the loop for counseling, appointment of other agents, etc.
Understand what your state law allows, what your agency stance for what agency types are permitted and become very well informed and comfortable with your professional responsibilities. This is a very sensitive and debated topic in our state for a good reason ... watching out for the best for our consumers.
What side of the fence do you feel is best or are you in the middle?
A question I get at least once a week. A huge pat on the back for thinking in terms of adjustments and not a price per foot. To properly answer this question I would need to ask additional questions.
The answer is not a simple one and Realtors need to realize just because a home has a pool many factors apply before you can properly consider the value contribution. Also the word common sense applies. Because a home has a pool does not mean that it is worth the same as a similar sale with a pool in the price range.
All these homes are located in the same subdivision and are the same price range. Visually look at the points of difference. Clearly the top right pool is much less quality, no spa, very basic. The lower right pool is much newer as it was built in 2005, has many features such is a salt water pool, stone work, spa. All the other pools were built in the mid 1990s . So I ask ... should all these pools be given the same value with no adjustments? NO ... is the answer. That is where you would need do a little research to discover the points of difference and consider that in your analysis.
The answer to the question ... it is what a buyer in the market would be willing to pay for the amenity. Consideration for all the above question should be given. The increase interest in outdoor living has given more value to pool amenities. The price range of housing is around $300,000. Clearly the lower right one should receive a higher value than the other pools and would bring about an additional $28,000 to the price of the home. The upper right one may bring $12,000 ... it really is understated for the property with no bells and whistles.
In your market pools may bring varied values to a property maybe even detract from the value. You need to research, use common sense and pinpoint what the buyers are willing to pay. Sources to assist you with opinions are other professionals in your office, local appraisers and other Realtors that have an expertise in the area. Seek first to think clearly and then the answer to the question will fall in place.
 |
|
|
Experience that Moves! With 28 yrs of real estate background, Connie brings expertise as a Certified Appraiser & Top Volume Producer. Recognized by "D" Magazine as one of the top area professionals.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
