Jim Valentine

I recently posted about my wife calling me when I was with a customer to ask if she could rescue a goat. Caught as I was in a noncompromising position, I acquiesced. He was a standard - we have pygmy goats. Well, he has been delivered and he is very tall - about as tall as our miniature donkeys.

He looks like a Holstein cow with spotted ears. Very gentle and alert. We're working on a name - down to "Buster" or "Gomer". This morning Lisa found him sleeping at the door to the goat house with the donkeys on the other side of the fence by him in their pasture. Looks like I need to make a larger door to the goat house!

We're not sure if he will stay in the goat pen, or if we'll put him out with the donkeys and horses. Will try that this weekend and see what happens. I'm confident that we'll have many years of enjoyment with him ... and vice versa. I'm posting pics I took last night - you can see he's already checking out how to get in the house!

It takes a willing buyer and a willing seller to make value. Many sellers have reached their bottom pricing and refuse to sell for less - they will hold rather than accept a lower price. Buyers are often confused these days and know only that they must get a great buy. Unfortunately, this usually translates to making an offer a certain percentage or amount below list price - regardless of whether the home is well priced, or not.

There is so much more to real estate than price, and it is imperative that the agent help the customers with their perspective. What will the purchase or sale achieve for the client? Where are they going next? How long will they be in the home if they buy it? What do they consider a great buy? Good buy? Fair deal? If the home has what they want what is wrong with a fair deal so they can get on with their lives? How long will the low interest rates be available?

Real estate is a multidimensional puzzle - it goes beyond one item even if that item is price. Certainly, price is one of the biggest puzzle pieces, but it isn't the only one that should be used to solve the problem. It takes a knowledgeable and strong agent to help buyers and sellers navigate this market to achieve their objectives. Agents, that is your entrance cue!

There's a "telephone pole" on the corner of the lot I'm buying. I have power for my home ... right? Yes ... maybe. Just because there is a pole on your property doesn't mean you have power or that there aren't significant costs to utilize it. Depending on how many homes are drawing from that pole/transformer and where you place your home on your lot, you could be faced with installing a new transformer, a substantial cost.

Since the pole is there, we have "all utilities" ... right? No. You should be looking for phone and cable television in addition to power when you are evaluating a lot. Just because there is a utility pole there doesn't mean you have the other utilities. We've seen some areas where power and phone lines on opposite sides of the road. The phone lines were on short poles and you couldn't put power lines on those poles. This can result in substantial increased utility expenses when you go to construct. Remember, too, there are more areas that aren't served by natural gas than those that are.

The neighbors next to the ten acre parcel I'm looking at are on well and septic. I can drill a well and put in a septic ... right? No, be really careful on this one. There are areas where homes are grandfathered in with well and septic, but in the intervening years water and/or sewer lines have been run nearby. If you are within the minimum distances from those lines you will be mandated to hook up to them. This situation is not always financially detrimental, but it can affect your intended use of your property.

My lot is in a floodplain so I just build up my house and I'm okay ... right? No, no, no. Things have changed dramatically in the last few months. In November of 2001 FEMA changed the crawl space construction requirements for construction in a floodplain. The new requirements are resulting in new construction methods, and an increase in flood insurance. This is also true for many existing structures - they aren't grandfathered in for this one. In one case we are aware of the insurance went from $300 to $2,000 per year.

I see lathe at the corners on the lot I'm buying so I don't need a survey ... right? Lathe is used by surveyors to show the location of a corner, but it doesn't physically mark the corner. Corners are marked with ribar and if it was done in the past 20 years, or so, it will have a yellow cap with the surveyor's license number on it. Be very careful when identifying corners without a survey. Is the yellow cap still in good shape? Does the corner look like it is intact and not tampered with? Remember, too, if you have a corner property you still need a corner marker even though you can see the streets. If you are getting a building permit you will need to have the corners marked for the County inspector. If you are buying property remember the cost of a survey when you are negotiating, however you might get a bigger savings than the cost of a survey if you agree to pay for the survey yourself. Be very careful in this area.

Write your offer with a Due Diligence period that will give you time to study the property and get the answers you need to you have a total and clear understanding of what it is that you are buying. There is a lot to consider when buying a lot to build on. All is not what it may seem and you should know as much as possible about the actual status of the utilities, easements and deed restrictions that may affect the property, status of the property corners, drainage and floorplain matters, etc. Some lots are just unbuildable economically or physically.

Don't fret over buying vacant land - get good engineering, title, and real estate professionals on your team so you protect your investment and maintain your peace of mind during your acquisition and construction process.

The market is changing and we are seeing Multiple Offers already. In a dynamic real estate market such as is coming there comes the situation of Multiple Offers on properties offered for sale. With Multiple Offers the rules change ... or do they?

My offer was first - they have to answer me first ... right? Not necessarily. Most agents will present the offers in the order in which they were received, but there is no legal obligation to respond to them in any specific sequence. In the event two offers are similar then the first-in-time consideration may become the tie breaker - at the option of the Seller.

They can't accept another offer without giving me a shot ... right? Wrong. The listing agent has the legal obligation to present all offers to the Seller. When you write an offer you should know that the Seller will see it, but the Seller has no obligation to respond to any or all of them. They are only obligated by law to acknowledge having seen it.

My offer was highest - they have to take it ... right? No. Price isn't always the controlling factor in a real estate transaction. If your offer has a sales contingency, or conditions that are unacceptable or unreasonable to the Seller then, your higher price won't necessarily be the Seller's offer of choice. Sellers will look at the time to close escrow, whether a loan is needed and what type, repair requests, etc. The Seller's agent will assist them in evaluating the risk of accepting each offer in the context of their likelihood to successfully close escrow, and its overall benefit to the seller.

I made the first offer and the listing agent told another agent what my offer was. They can't do that ... can they? Actually, they can. Historically, that was against state law, but it is now permissible in Nevada. The theory behind the change is that such disclosure helps the listing agent in their effort to represent the Seller. This can actually help a Buyer as well by showing them where they stack up. What is important is that the listing agent treat all agents that are tendering offers equally. Whether you are a Buyer or Seller you should make sure that the communication lines are open and fair-it is to your advantage that they are.

If you find yourself in a multiple offer situation considering the following:

A. How bad do you want the house and how easy will it be to replace?

B. Don't get swept away with "auction fever". Decide what you are able to offer, what you want to pay, and then posture yourself as best you can.

C. Identify the Seller's motivation and tailor your offer to their wants and needs while not compromising yours.

D. Simplify your offer. Include as few conditions as possible and use very clear language so the Seller is comfortable reading and considering it.

E. If you have extenuating circumstances that enhance your position your agent should convey those to the listing agent, however we advise you not to have your agent write a story of your life. This is common in California, but is not a standard of practice here. Such letters can actually tip your hand.

F. Whether a buyer or seller in a multiple offer situation, remember, the fact that there are multiple offers doesn't mean that the property is sold. We've seen full price multiple offer situations that ended without a sale. Keep focused on your goals and intentions and the right thing will happen for you in the time you want.

Don't fret about multiple offers - somebody is going to buy the home and it might as well be you if you want it. Hire a good professional and embrace the situation.

Price is but one aspect of an offer. Even if an offer is above the List price it might not be a good offer for the Seller. If they've lived in their home for 20 years and the offer provides for moving in 15 days it is simply not practical even if you have a full price offer. There are many components to an offer and each adds value to either the Buyer or Seller, depending on the item. Price adjustments can and should be made accordingly.

A Buyer that works with a Seller on their move circumstances will separate himself from the rest of the pack. Historically, the day escrow closed the Seller had to be out of the home. This led to people hiring movers and moving out to the tune of $5,000 to $20,000. Occasionally, the sale fell apart at the last minute - the Buyer bought a car and blew their ratios, a job transfer, etc. If you allow a rent-back after the close for a week or two you will allow the Seller to have their proceeds check in the bank and move with confidence. This can separate your offer from others.

Some Sellers may need money to move - a sizeable deposit released to the Seller after the transaction conditions are satisfied can help a Buyer negotiate price or stand out from the crowd in a competitive situation. Taking a property "as is" can give both parties comfort - the Seller isn't worried about what repairs they will have to make that will diminish their proceeds, and the Buyer will know after inspections the condition of the home and can decide if the required repairs are commensurate with the price adjustment they negotiated.

Escrow time frames can be used to your advantage, i.e.- shortening or extending times for moving or closing escrow. We've had our offers selected over others because of a longer escrow - the Sellers were relieved to have the time to move. Conversely, an all-cash offer and a 5 day close on a vacant house will appeal to that Seller over a 30 day loan-conditioned proposal.

Consider the big perspective when you create your offer. Besides price, important components include time, risk, labor, peace of mind, or ego. We've had our offer selected over others by agreeing to include the family name in the subdivision process. When you look at the property you are offering on, look for Seller motivation. If they are already packing the house up a quick escrow is generally preferred. If the property is inundated with tons of debris then the opposite is true.

Don't submit your offer blindly - see how you can make the Buyer's motivation and the Seller's motivation converge for the perfect transaction. A contract that is a win/win for Buyer/Seller in most aspects will result in a healthy escrow with both parties committed to its success.