There’s no better feeling for both a seller and a buyer when they get contracts ratified! But what happens next? The answer…a lot! But it’s a little different depending on what side you are on. SELLERS, the first thing that you should be waiting on are requested repairs from the buyer. This request addendum will come from the buyer’s agent to the seller’s agent once the home inspection is completed. Typical things to expect; service and certify the HVAC, roof repairs, plumbing leaks, etc. Other similar inspections are Radon, Pest, Water Quality, Septic, Lead Paint. Repairs can be negotiated but tread lightly; the buyer can walk if they are happy with the repairs you don’t agree to. Get your repairs done and give all the receipts to your agent.
If you have a HOA or Condo, now would be a good time to order the docs. They will typically charge you a fee for the “re sale package”. Once you get them, get them to your agent ASAP so that the buyers can review. As there is an option to void the contract if the buyers don’t like what they read in the HOA or Condo docs! The appraisal usually happens shortly after the home inspection. The seller’s agent usually meets the appraiser at the house, hopefully with comps in hand. Appraisers can be tough. With FHA and VA they are also looking for unsafe conditions, like missing handrails and broke window panes. Some appraisers know the ins and outs of the area your house is located. Some don’t. If the appraisal doesn’t come in with the value of the contract or more, the buyers have the option to walk if the seller doesn’t lower the purchase price to the appraised value. It’s a pretty serious step in the process, as I have seen appraisers give very low values with poor supporting comps and there isn’t much you can do about it. Within the contract there is a deadline for the buyer’s Commitment Letter, usually due between 25 and 40 days of ratification. This will come from the buyer’s lender. This is usually the last contingency. Get thru these 3 contingencies and you can breathe easy! BUYERS, get your inspections scheduled quickly! This way if you absolutely hate what is found, you haven’t lost too much time under contract (be courteous of the sellers time too). I try to get all my inspections done in the first 10 days. Once the inspections are done, your agent should review what you’d like the sellers to repair. I like to be very specific as to what my buyers want repaired and how so there is no question. Most home inspections take just under 4 hours. I stay the entire time but my clients usually come for the last hour. Once that has been negotiated be sure your lender has all the docs from you that they need. Yes, some seem ridiculous but don’t shoot the messenger, just get it done. This is around the time when you will pay for the appraisal, about $450.00. It’s also a good time to get home owners insurance & can BGE to let them know that you will be buying XXX property on XXX day. They will start billing in your name the date you give them. If you give BGE the time to cut the service off, you’ll be charged another fee to connect the service….yes a BS fee so it’s just easier to make the call in advance. Of course there are several more scenarios and unfortunately lots of transactions have hiccups along the way. Hopefully you have an agent you feel totally comfortable with and trust in them. If not….(ready for my shameless plug) contact Suzie Coronel! Quick facts for both sides: 1. Some VA loans won’t allow the buyer to pay for the pest inspection. Typically about $65. 2. It’s best to schedule your settlements at the end of the day to allow funds to get transferred/wired. 3. No one likes to wait on responses. Be conscious of the other side and reply quickly to repairs and other determining factors. 4. At the end of the day this is business. Try not to take things personal!
There are good plastic surgeons and bad ones. Good mechanics and bad ones. Good plumbers and bad ones. Like every profession and industry, in real estate, there are “good ones” and “bad ones”.
In most cases it comes down to personal preference. When you are paying someone for their services, you expect a good experience in return. One would think that serviced based professionals would want to provide good service so they can capture repeat customers and referrals. We all can give examples where this hasn’t been the case. As a full time Realtor, I have been on all sides of the spectrum. Over the years, professionally, I have learned that I am in the business to help people facilitate financial transactions that in most cases are the largest that my clients will ever take part in. Every “deal” is a big deal. I have found that I am only as good as my knowledge, resources, organization and logistics. I try to set the tone and prescient every time I have communication with my clients as well as the other professionals involved. Not every client/professional is the same. I like to think I have a pretty good read on folks, what they need from me and expect. Currently I have a buyer would likes to know every aspect of the transaction. She likes to be fully aware of every detail. I put myself in her shoes. First, she is a mother of 2 young children and a wife. She has single-handedly managed the purchase of her new home, registered her boys into new schools, packed, rented out their current house, researched building permits, made phone calls, on top of planning summer vacations an d maintaining the schedule of an active family of 4. She has a lot riding on this purchase. She has arranged for a lot of family changes. In her shoes, I’d want to know everything too! So I BCC her on all emails that involve her purchase. I take her late night panic calls. But mostly I try to calm her down. NOT as a punching bag but I calm her down with FACTS. Facts and resolution is what helps her sleep at night, and I can appreciate that. So when you choose your professionals, make sure they understand you and what you need, cause we all need different things. Here are a few questions I like to ask all my prospective clients to make sure we are a good fit for each other: * What is your realistic time frame? * Do you like being involved every step of the way or would you prefer me to handle most of the proceedings and loop in when necessary? * Do you know what your needs and wants are? * If you worked with a Realtor previously, were there any issues that need to be addressed? * What is your preferred from of communication – phone, email, or text? I suggest that you use the questions and have some of your own as you are interviewing your Realtor. At the end of the day, it’s your business and you want to make sure that you are receiving the service and attention that best suits you.
Seems these types of home sales have been in the lime light for some time now. But when taking out buyers I am finding that though we are always hearing about them, few understand the difference. Here are some good things to know when looking to BUY.
A foreclosure is typically owned by a bank who is represented by a listing agent. A buyer’s agent preps an offer like most traditional sales, except that most of these are sold As-Is. As-Is means that the seller will make no repairs. Within the offer, the buyer is able to elect to do home inspections with the right to terminate. This protects you in the event an inspector finds major problems that may change the way you feel about the house. These transactions can go very smoothly and settle in the average 45 days. The “short” in short sale has nothing to do with TIME. It refers to the owners paying the lien holders SHORT of what they owe. Short sales are usually sold As-Is as well. Once an offer is made to the owners, the owners can choose to sign it or not. If they sign the offer, the listing agent then submits the offer to the mortgage company – the 3rd Party. Several steps within the mortgage company need to take place. This is what seems to take the longest. I usually advise my buyers that submit on a short sales, we will probably not hear from the listing agent for 3 months. This process has gotten better, but is still so unpredictable. I also have a series of questions that I ask the listing agent to be sure they understand the process, as agent can list a short sale. Some are better than others. ***Fun FACT*** Keep in mind that the listing agent sets the list price. It isn’t unusual for a mortgage company to counter with a higher amount than what the house was listed. The bottom line is this, I never hesitate to make an offer on a foreclosure. But with a short sale, I usually tell my buyers that unless you are getting a killer deal, it might be best to look at others. The most important detail to understand is that the banks that own foreclosures directly call the shots, set the list price, & negotiate. Short sales have an added party to approve the contract/price. The home owner doesn’t have much control in the deal. And in some cases there could be multiple mortgage companies attached to one property.