Mike Carlier ABR CRS GRI

When sellers sign a listing agreement, they indebt the listing broker to the fiduciary duties that they deserve from us. Often, sellers do things that help the eventual buyer gain an advantage in the sales process. Sometimes, sellers are their own worst enemies.

I'm thinking about asking sellers to sign a statement acknowledging that they understand that certain acts or omissions by them will decrease the final price they receive and increase the time it will take to get there. Here's my first draft of possible acknowledgments:

•1. I understand that my asking price will define the expectations and limit the number of buyers who see my home. An unreasonably high asking price will create unreasonable expectations from buyers.

•2. I understand that there is a finite number of buyers who may want to see my home. Every appointment request that I refuse will significantly limit my chance of receiving an offer, and increase the amount of time needed to sell my home.

•3. Every day my home is on the market is a day closer to a price reduction and/or failure to sell. In the near term, housing data indicates that my home has a higher market value today than it will at any time during the duration of the listing agreement. It is in my best interest to sell quickly, even if I don't absolutely have to move soon.

•4. Buyers typically tour between four and forty homes. My home needs to be in first place to get them to make an offer. If its price, condition, and presentation are not number one, I will not get an offer. Close doesn't count.

Comments and opinions welcome.

When counseling buyers, we discuss what is important to them in finding a new home. We also discuss what is important in getting a good home at a great price. In my opinion, three important traits of a potentially good buy are:

1. Overpriced. A home priced just out of its market range will get few showings and fewer offers. If the seller can afford tosell at a market, our offer may be the only one they see. There is a fair chance that, if the offer is presented properly, they will accept it.

2. Unusual paint colors. Any color that causes a potential buyer to focus more on the walls than the house will send many quickly to the next showing appointment. My advice to my clients is to expect to see, and learn to love homes with ugly colored walls. Much of your competition has moved on, and about a hundred bucks worth of paint will fix it.

3. Clutter. Wading through piles of the owners' "stuff" is annoying, and too much furniture makes the place look like an overstuffed dollhouse. The home looks unattractive, and it will be passed over by many potential buyers. That's great for us. Fewer potential offers put us in a much better bargaining position, and we know that all the stuff will be gone by the time we take posession of our bargain home.

Frankly, I love taking advantage of poorly prepared sellers. That's one of the best parts of my job.

When folks decide to sell their house, they often interview several real estate agents. Generally their decision on who will list their home is based on one or more of the following criteria:

1. Who will work harder, spend more time and money, trying to sell my house?
2. Who says my house is worth the most?
3. Who works for my favorite broker?
4. Who will charge the lowest commission rate?

No matter who you choose, there will be more that is the same than different. All will likely stick a sign in your front yard, and buyers will not care whose name is on it. All will likely enter your home’s listing in the applicable multiple listing database. Your home will then be seen by almost all active buyers. That is, if you have an asking price that is near market value.

Now, here’s how to reduce the amount you end up paying the listing agent. Find an agent who is not available to handle calls from interested buyers or their agents. That will reduce the number of showings and delay the time until an offer is received. Time on market is often what triggers price reductions, often necessary, sometimes not. Make sure that your listing agent is a not an experienced negotiator so the final selling price (if you actually get an offer) is lower. If the selling price is lower, the commission you pay will be less. You may even avoid paying a commission completely – if your house does not sell.

I am surprised that Ronald Raegan is not widely recognized as the initial force that made home equity something to spend. He removed the deductibility of interest on consumer credit. He allowed home mortgages to continue to be deductible, and that was the first step in making second mortgages and home equity lines of credit socially acceptable. He was directly responsible for that shift. Until the change in tax laws, you could deduct interest on your car loan, as well as revolving credit account interest. After the change, to continue deductibility, you needed to tie all your debt into your home.

In order to fix this problem, we need to make some changes, and there are two alternatives. We can restore deductibility of all consumer interest, or we can remove the deductibility of home mortgage interest. While both work, one would obviously be more popular.

25 years ago, a retiree typically had two major assets, the cash value in his life insurance and the equity in his home. Today we are much wiser and more sophisticated. The average retiree today has an old boat, thoughts of a short sale, and an opportunity to maybe return to the work force. That is the economic Raegan legacy.

Lindy's Blazing Inferno AKC/CKC CDX JH MX MXJ NJP WC FDCH 6/5/93 - 7/14/09

Blaze was the first born and the last to go in a litter of eleven wonderful pups. She was active for all but he last three weeks of her 16+ years. An assortment of age-related maladies teamed up to take her from us.

Blaze was a decent obedience trial dog, earning CDX in both the US and Canada. She was a very good pheasant dog, and, despite her tendency to play in the water too much, managed to earn a junior hunter title and a working certificate. She loved flyball and, of course, agility. She competed in regular classes through 2007, and graduated to preferred in 2008. Her last title was novice jumper preferred, which she earned shortly after her fifteenth birthday. The picture was taken on June 5, 2009, her sixteenth birthday. Her loss followed Smokey by just five days. Our home is now empty, and I have lost my favorite office assistant.