Greenspan & Robben

Some information about real estate:

Back to those pesky disclosures you have to sign when you head out to see property – once again, I throw out my disclaimer that I work in DC, MD and VA, so I can really only speak to those jurisdictions, but most places in the country have something similar to the document called “Some information about real estate”. And regardless, this information is relevant no matter where you live.

1. You need to make all offers to buy a home in writing. And you need to have signed all of the necessary paperwork before you even see property so you know who represents you when you make the offer. We can’t discriminate in ANY way when showing you property – see http://www.hud.gov/offices/fheo/FHLaws/yourrights.cfm for reasons why. Finally, you are buying property that is subject to specific land rules. Like don’t buy a property and think you can suddenly grow chickens in the yard. This will go poorly for you.
2. When you buy property, the county/jurisdiction could decide to raise your property taxes after you purchase it. You have the right to appeal, which can be arduous, but you can do it. And you should – why pay more in taxes for assessed value of your new home than market value, which is presumably what you paid when you bought it?
3. You have the right to pretty much any inspection of the prospective property, as long as it is written into the contract. So check it all out if you want – the general property, paint, radon, mold, landfills, airport noise. . .you get the idea. It’s really best that you know as much as possible when you buy so there are no unpleasant surprises later. Like airplanes nearly landing in your backyard.
4. You can choose your lender, homeowner insurance policy, warranty provider, check criminal activity in your prospective neighborhood, and so on. We can provide referrals for lenders, insurance, title companies and home warranty companies, but are prohibited by federal law to disclose any information about criminal activity in a neighborhood. We CAN provide the information you need in order to find it on your own, though. Do it for all of the obvious reasons.
5. Review homeowner association/condo association documents, prospective property disclosure/disclaimer statements, and any jurisdictional documents (county, municipality, etc.) that could impact your purchase. Generally speaking you have time to review these documents before or during the contract period, and you need to because that pool you wanted to build. . .? Yeah, check that out. . .

So you’ve chosen me to be your buyer agent...what does that really mean?

In most areas of the country, when you choose a real estate agent to represent you as a buyer, you will be required by state law to sign an agency agreement. Ideally, this should take place before you ever set foot into a single property with the agent you select to represent you. Signing papers before you go out to look at properties can be intimidating, so here’s the lowdown on the contents of the document.

1. We wear a lot of hats, but we are ONLY your agent, not your. . . attorney, accountant, structural engineer, lender, home inspector, roofer. . .you get the picture.

We can always give you advice, our thoughts and impressions based on our experiences, but the best thing we’ll give you is a referral to another professional whenever it is warranted. We sell property, and while this is a fairly complex sale, our expertise is limited to helping you buy your home.

2. We can’t tell the seller’s agent anything about your finances, or... pretty much anything to do with breaking your trust in our relationship.

I’m not going to tell a selling agent that you are using every last dime to buy a home,

or that money is no object and you will spend whatever it takes to finance your dream home. I will not disclose any personal information unless you advise me to do so. Wikipedia has a nice description of this concept -For details CLICK HERE.

3. We don’t cost a thing for you to use our services. . .this may vary by state, but in DC, MD and VA (which is where I am licensed) buyer agency is free to buyers – our commission is paid for by the seller. There is no reason not to use a licensed agent to assist you in purchasing property. Obviously, you have access to a lot of the same information about homes for sale that we do, but our value comes in neighborhood knowledge, expertise in negotiating, and avoiding the landmines in the contract process. And it’s free!

4. We understand not every relationship is not a match made in heaven...most agency agreements have a termination date that is agreed upon by the buyer and written into the agreement by the agent.

Here’s the thing – if you decide to work with us for a definitive period of time, and after the first few times we meet it isn’t working out, you can opt out by terminating the relationship in writing. And guess what? We can do the same! We don’t want you to be unhappy, and frankly, we don’t want to be either.

5. This is our career, and it’s how we make a living – so when you agree to honor our relationship by giving our card to the agent at the Open House, or the new home broker, or a random seller of a home you happen to wander by, it shows us that you value our relationship, and you respect the time we give you.

We receive a commission when you settle on your new home, and if you’ve hired the right agent, you will be happy when he/she receives compensation for their hard work on your behalf.

Attention Sellers!!!

It’s still a tough market for sellers, and buyers are pickier than ever. You’ve done all of the work to get your property ready to show and sell, but don’t overlook the obvious. Here are the top 5 situations that freak buyers out:

1. Failure to disclose information about the property - You had a water leak years ago in your house that has since been repaired. It was so long ago you’ve practically forgotten about it, and it hasn’t happened since. Write it on the disclosure form. Really. Because it will come back to haunt you, either due to visible stains from the incident, or from a home inspection. If you are honest in the beginning, it goes a long way to show a buyer that you have nothing to hide, especially in the event that other issues arise with the property during the contract period.

2. Selling your property “As-is” – As a rule, buyers take this to mean that you will not make any repairs to a property that might be necessary. In most jurisdictions, there are laws regarding functionality of major systems in a property that must be in good working order so the property can legally be sold. Buyers don’t always make this distinction and will worry that a home inspection will yield repairs they can’t afford to make, as well as fear moving into a home that resembles “The Money Pit”.

3. Avoiding a price adjustment – Nothing says “uncooperative sellers” more than a property that sits on the market at an inflated asking price without a reduction, especially if other properties are selling faster and for less money in the same neighborhood. Buyers sometimes will refuse to even see these properties; after all, they have likely seen the photos from your virtual tour and will have compared your home to others in the same price range. Most buyers today are seeking a “deal”, and they won’t waste time looking at homes they perceive to be overpriced by sellers that are possibly unrealistic.

4. Poor communication – if you have a list of “needs”, explain your motivation. Need a 60 day close because your new house is still being built? Let the buyer know why you can’t close in 30 days. Plan on taking every window treatment in the house because dear Aunt Millie sewed them from scratch? Say so. Want to settle at a specific law office because your brother-in-law is the principal and family dinners will be unpleasant if you don’t? Communicate your needs and wants to your agent, so the buyer’s agent can do the same for their client. Otherwise, the buyer’s perception will be that you are difficult and demanding.

5. Leaving the property in poor condition – you’ve made it to settlement ; the boxes are gone, the movers have left, and you are on your way to officially sign on the dotted line. Don’t leave your house in a mess for the new buyers, and be sure all items that were supposed to be repaired or replaced have been. Buyers, in particular first time buyers, face the enormity of their purchase on the day of settlement, and any seeds of doubt will be magnified if the house they saw several weeks ago no longer resembles what they are seeing on the day of purchase.

More than half of my business comes from first time home purchasers, and their enthusiasm and excitement is contagious! It’s one of the best parts of being a Realtor. Almost everyone has the same concerns, and most buyers will ask for advice and guidance on selecting the right home and neighborhood for them.

Here are my top 10 common sense TIPS to buying your first home:

1. Don’t “over buy” or extend yourself! This is especially true if you are utilizing a large portion of your savings to make a down payment. Even if you are a self-described “homebody”, you will not enjoy being house poor.

2. Sometimes a larger property is not better. With a functional floor plan, properties with smaller square footage can appear larger than properties boasting a higher square footage number.

3. Location, location, location – but in reference to your lifestyle. In other words, if you want to walk to restaurants, gym, dry cleaners, the pub – choose a location that will afford you that lifestyle. You might be able to get a larger, newer, etc. in the ‘burbs, but you will resent getting in your car on the weekends to get to the places you want to go. This works in the opposite direction as well – if being in the city is something you can stand only during the week for work, then consider moving out of it to improve your quality of life. BUT, beware of the next item. . .

4. Bear in mind that commutes can ruin people’s lives. If you hate a long commute, it will not be worth it for your dream home. Trust me on this one. I hear it from clients all of the time – they bought what they always wanted, and spend three hours a day taking planes, trains and automobiles to get to and from work.

5. Don’t be put off by necessary aesthetic improvements. It really is very easy to paint and change flooring, and generally not too expensive.

6. Know your limitations. If you hate cutting the grass and gardening, maybe a single family home with a yard isn’t for you. Similarly, if you like your private space and can’t fathom living in close proximity to others, then condo living might not be for you.

7. ALWAYS get the home inspection. Even in a condo. Even in a brand-new property.

8. Ask to see utility bills. There is nothing worse than shopping within a budget to plan for monthly expenses, only to move in and find out your energy bill is several hundred dollars a month.

9. Visit your target property at all times of the day. If you always visit the property during the day, go there at night or on the weekends. The landscape of some neighborhoods or roads can change dramatically at different times of the day.

10. Trust your gut. While there are many logical considerations factored into buying your first home, don’t ignore the voice in the back of your head that either warns or encourages you.

And most important – have fun!!!

- Tricia