Seller Help

I was reflecting on a listing I took 2 years ago this month, in the fall of 2006.  A woman had had her home on the market for 4 months (with another agent) and wasn’t getting any showings.  Her listing was expiring and she wanted to explore other options; a friend of a friend gave her my number.

The market had started to soften in the fall of 2005, so by this time we had been in a downward trend for about a year.  (On a side note, most “experts” were predicting a recovery sometime in 2007.)

This particular home had been listed at $319,000 when it wasn’t getting any showings.  After doing my research, I had a blunt, but honest, conversation with her about reducing the listing price to $289,000.  She was frustrated and upset about how much the market had fallen, and she took a few days to get her arms around the whole scenario:

It didn’t seem fair that prices could drop so far so fast; $319k seemed too low when she first listed the home.

The market didn’t care what seemed fair to her, nor did it care how much she paid for the home, why she was moving, or what she wanted to get out of it.

Maybe she should just keep the house & wait for the market to come back.

Maybe she could put a tenant in there & rent it out for awhile.

If the market fell another 5-10% over the next year, and then stayed level for about a year, and then started rising about 5% per year, it would take until 2010 just to get back to where we were at that point.  (turns out to have been wishful thinking!)

She finally decided that her goal was to get rid of the house, and although she wasn’t happy about the current state of the market, she couldn’t change anything.  She could only make choices given that day’s environment.

About a month later we received an offer of $274,000.

This additional $15k reduction took another set of mental gymnastics to get her arms around - more stress, more frustration, more anger.  But she completed the exercise very quickly, and decided to accept the offer and get outta town.

This turns out to have been a GREAT decision.  Today, 2 years later, she would be lucky to get $245,000 for the home.

Your wishing he knew what the future held Realtor,

Chris Butterworth

I currently have a listing where the owners have moved out of the home, leaving it vacant.  It’s a great home in a great neighborhood, and it’s reasonably priced, so we’re confident it’ll sell (at some point.)  But in the meantime we’re exploring other options, and I came across the website for HomeTenders of America (www.hometendersofamerica.com)

Has anyone out there worked with this company before?  Were your results positive?  I’ve never heard of them, and I’d like to hear a first-hand testimonial if possible.

Their business model makes perfect sense, and sounds like a win-win-win.  This is generally the basis for a sound company.  Here’s the short version of how it works:

HomeTenders finds and interviews people who are willing to live in vacant homes while they sit on the market.  These tenants agree to professionally decorate the home, and to keep it in pristine, show-ready condition.  In exchange, these tenants get to live in upscale homes in upscale neighborhoods at significantly reduced rental rates.

Here’s how I see everybody winning:

Homeowner

No longer has a vacant home.  This reduces the risk of vandalism & other problems.

Can keep insurance on the home.  (many insurance policies won’t cover homes which have been vacant for too long.

Reduced carrying cost.  HomeTenders does NOT charge the homeowner, and the tenant pays all utilities.

Increased chance of selling.  Well decorated homes are more likely to sell, and for a higher price.

Tenant

Gets to live in upscale homes in upscale neighborhoods at reduced rates.

For the right personality type, this could be a fun way to live.

HomeTenders

Earns rent from properties they don’t own.  (can’t get a much better profit margin than that!)

So what’s the downside?  I’d love to hear from you.

Your exploring options Realtor,

Chris Butterworth

You’re ready to buy a house.  You write up an offer with your Realtor.  What’s next?

You’re trying to sell your house.  Your Realtor brings you an offer from a buyer.  What’s next?

The escrow process always raises questions from both buyers and sellers.  It can be confusing, and even overwhelming, because there are a lot of variables and moving parts.  On the other hand, every detail is spelled out line by line in the purchase contract, so there shouldn’t be any surprises.

It’s a good idea to read your purchase contract carefully (or even a blank, sample contract) and to discuss it with your Realtor before you have an offer in place.  But just in case you didn’t get a chance to do that, I’ve listed some of the most common events and time frames below.

Loan Status Report (LSR).  The Buyer should have already met with a lender, and should be able to provide the Seller an LSR.  This will show the Seller that the Buyer is able to obtain financing to complete the purchase.

Earnest Deposit.  The Buyer should be prepared to write a check on the day she makes an offer.  The check is typically made payable to the title company, and is held in escrow until the conclusion of the contract.  If the contract closes successfully, the Earnest Deposit will be counted towards the Buyer’s cash to close.  If the contract is canceled, the Earnest Deposit will be awarded to either the Buyer or Seller, depending on the timing and reasons for the cancellation, along with the rules spelled out in the Contract.

Day 0.  Your contract may be accepted as offered, or it may have several Counter Offers and Addendums included.  The Counter Offers and any Addendums add, define, clarify, subtract, or otherwise modify the terms of the original Offer, and are included as part of the Contract.  Once all parties have signed these documents, and the documents have been delivered to the other party (in writing), you have a valid Contract.  This date will be Day 0 for counting purposes.

Seller’s Disclosures.  Typically the Seller has 5 days to provide the Buyer a copy of the Sellers Property Disclosure Statement (SPDS) and a copy of their Insurance Claims History.

Buyer Acknowledges SPDS.  The Buyer will need to sign the SPDS and return them to the Seller.  This is not to say she agrees with them; merely to say that she received a copy of them.

Buyer Inspection Period.  The Buyer has 10 days to inspect the home - any and ALL aspects of the home.  If the Buyer finds anything she doesn’t like, she may either A) Cancel the contract and receive her earnest deposit back.  B) Give the Seller the opportunity to fix the items she disapproved of.  or C) proceed with the purchase.  If the Buyer chooses A or B, she MUST notify the Seller in writing before the end of the 10th day.  (and, of course, we have a pre-written form just for this purpose, called the Buyer’s Inspection Notice and Seller’s Response form - BINSR for short).  Failure to give any notice to the Seller is the same as option C.

Seller Response.  If the Buyer chose to give the Seller an opportunity to fix the items she disapproved of, the Seller will have 5 days to respond.  The Seller also has 3 choices to consider:  A) he may agree to fix everything the Buyer requested.  B) he may agree to fix some, but not all, of the items the Buyer requested.  C) he may not agree to fix anything.  Much like the Buyer during her inspection period, the Seller needs to respond in writing within the given time frame (5 days), especially if he chooses A or B.  Failure to respond is the same as choosing option C.

Timing - if the Buyer took all 10 days to inspect the home, and the Seller took all 5 days to respond, we’re now at Day 15 of the transaction.

Buyer’s Decision.  Once the Buyer receives a response from the Seller, she will have to make another decision.  This decision is much more simple, and there are only 2 choices.  A) she may agree to the Seller’s response and proceed with the transaction, or B) she may decide to cancel the contract (and be entitled to receive her earnest deposit.)

Timing - if everybody took the maximum allowable amount of time (10 days, 5 days, 5 days), we would be at Day 20 of the transaction.  So it can take about 3 weeks to get through the inspection process.

Quiet Period.  Many times the inspection process is wrapped up weeks before the scheduled closing date.  This will cause a Quiet Period, especially compared with how much energy can be spent on the inspection process.  The Seller will be working to make any repairs he agreed to make, and the Buyer will be working with her lender to make sure the loan is in order.  Both parties will most likely be working on other logistical items, such as packing, movers, utilities, etc.  But don’t get too complacent, because things will get hectic again!

Final Walk Through.  Sometime about a week before the closing date, the Buyer will do a Final Walk Through of the home.  She wants to make sure the home is still in "materially" the same condition as when she made the offer, and she wants to make sure the Seller did all the repairs he agreed to do.

Seller Signing.  The Seller will go to the title company’s office to sign his portion of the papers, generally 2-3 days before the scheduled closing date.

Buyer Signing.  The contract calls for the Buyer’s Loan Documents to be delivered to the title company 3 days prior to the scheduled closing date.  The Buyer should be prepared to sign his portion of the papers at the title company’s office at this time.

Buyer’s Funds.  The Buyer should be prepared to bring certified funds to title, or send a wire transfer, preferably on the day he signs.

Closing.  The title company will handle everything for the closing, and will make sure that any & all requirements are satisfied.  They will make sure they have all funds from the Buyer - Earnest Deposit, Certified Funds for the Down Payment + Transaction Costs, Loan Funds from the mortgage company.  They will make sure they have accurate payoff information for the Seller - 1st mortgage, 2nd mortgage, any other liens.  They will make sure they have everybody’s signatures on the Deed and any other legal documents.  Once they have everything accounted for, they will record the Deed at the County Recorder’s Office to show the change of ownership, and they will make the Seller’s Proceeds available to him.

Delivery of Keys.  Once we have word from the title company that the deed has been recorded, we’ll want to get the keys into the Buyer’s hands as quickly as possible.

** Disclosure ** The numbers, dates, and terms used here represent a hypothetical transaction in Maricopa County, Arizona.  This article is intended to provide an overview into the general flow of a transaction, and should not be taken as gospel.  Your transaction may include terms and dates which are very different from the examples given here.  You are advised to read your contract carefully, and to consult with your professional representation.

And that’s it - easy as pie.  A stressful process, but an easy-to-understand process.  An understanding of the process, couple with a good game plan and lots of open communication can go a long way toward relieving some of that stress!

Your ready to answer any other questions you might have Realtor,

Chris Butterworth

Somebody posed a question about open houses on ActiveRain, and Jay Thompson (my broker) took the conversation to his blog for further discussion.  The conversation got lively, and somebody commented about the percentage of sales that come from various types of marketing.  (Reuben Moore of Brick and Garden in North Carolina, if you’re interested.)

This is something we’ve discussed in our office quite a bit (especially last year as the market was deteriorating and we wanted to make sure we were doing the best for our clients.)  And what did we come up with?

The following percentages are best estimates based upon my experiences.  I don’t have any statistical data to back these up.

Pricing Alone - 25%.  In a neighborhood filled with homes asking $300k, a home asking $100k will sell awfully quick, while a home asking $500k won’t sell at all, regardless of any other marketing.  That being said, if nobody knows your well-priced home is for sale, will they make an offer?

Home Condition and Presentation - 25%.  Almost every buyer tells me that their new home doesn’t have to be perfect; they don’t mind doing some painting in order to make the house their home.  Yet almost every buyer seems to prefer the prettier homes.  It’s human nature to like something attractive more than something unattractive.

MLS Presentation and Outreach - 20%.  The MLS feeds most other sources of online marketing, as well as any Realtors who may be searching for their buyers.  Great photos and descriptions are an absolute must!

Realtor - 10%.  Your Realtor can have an impact on your home’s sale by knowing the home, knowing the neighborhood, answering the phone & returning calls, negotiating, facilitating, communicating.  (this is in addition to having a major impact on every other item on this list.)

Additional Internet - 9%.  The goal is to have your home available for online buyers to view, regardless of which website they happen to use.  The MLS does a good job of feeding many websites, but there are many others which require an agent’s direct interaction.

Home Specific Web Site - 4%.  When people have an interest in a house, they like being able to see everything about that house - often before even seeing the house in person.  A dedicated website with lots of information about the home and the neighborhood, and plenty of pictures from every angle, will help potential buyers feel like the seller isn’t hiding anything.  It also gives them something to share with their friends, family, and co-workers.

Yard Sign - 4%.  Some buyers will drive around the neighborhood they want to live in, calling each For Sale sign to learn more about the home.  (of course, the Realtor needs to be available for this to have an impact!)

Open House - 2%. Once in awhile (a very long while), a home will sell because of an open house.  I’ve written a couple of times about the benefits and potential costs of holding open houses:  “Open Houses - are they worth it?” and “For Sale sign can be a target: Open House thieves to be sentenced next month.”

Print Media - <1%.  Let’s be honest; nobody is going to read an advertisement in a paper or magazine and come write an offer on your home.

Direct Mail to targeted group of buyers - <1%.  This seems like a good idea - “what if we send a letter to people in (cold weather city) who are thinking about retiring to Phoenix?”  Well, this has several flaws.  1.) finding the right list can be close to impossible.  2.) these potential buyers are probably looking for homes online, which means your energy is better spent in that area.  3.) these potential buyers will most likely look for a local Realtor to help them, which again means your energy will be better spent elsewhere.

All Other - <1%

In Summary.  At first glance it looks like the Realtor isn’t all that important, accounting for only 10% of why homes sell.  However, consider that your Realtor will have a large influence on every single item in this list, from pricing to presentation to MLS descriptions, and all the way down the line.

Your focusing on the important things Realtor,

Chris Butterworth

Here in Phoenix we count ourselves lucky for a number of reasons – great weather, moderate cost of living, no natural disasters, plenty of parking – overall it’s an easy place to live. One thing that people don’t tend to think about is how lucky we are with regards to our local termites.

I’ve had clients who moved here from The South (Florida, Atlanta, Houston). They talk about termites being the absolute worst thing you could find in a home; apparently if you have a termite infestation in The South, your home can be ruined within a year. It reminds me of a Bugs Bunny cartoon where a swarm of termites turns the wood into sawdust right before your eyes! It’s not like that here in Phoenix.

There are two different types of termites in Arizona – subterranean and dry-wood, and although neither one is going to eat through your home in a matter of months (or even years), the treatment for the two is very different.

Subterranean Termites

Subterranean termites are the kind most often (frequently, actually) found during the inspection process of selling a home. They live underground (hence the name), and they make little tunnels up into the home to forage for food. These tunnels (mud tubes) are what the inspectors look for as evidence. The most common & most effective treatment is to drill holes 12-18 inches apart (either around the entire home’s perimeter or just around the affected area) & inject a pesticide called termidor. Then, if more tubes are seen in the future, they can “spot treat” a given area.

These termites are very small, and because our air is so dry our wood is very hard, making it difficult for these little guys to do a lot of wood damage. Their mud tubes are usually seen in drywall rather than wood; they climb up through the drywall & occasionally take a taste bite of the wood.

Subterranean termites are commonplace in Phoenix. If you ask 100 homeowners in Phoenix about termites, probably 40% have had their homes treated, and another 40% have termites currently but don’t know it – they might not find out for a few years until either there’s lots of tubes in plain view or until they go to sell their home! (these numbers are my estimations, not statistical facts.)

a subterranean termite tube in my garage (after treatment).

a smaller termite tube from a treated area of my garage.

Dry Wood Termites

Dry wood termites are a little bit larger than subterranean termites. They will actually build their colony within the wood. Eating the wood creates more space, which allows for a larger colony, which causes more wood to be consumed in ever shorter time periods. These termites are found much less frequently, but they are a more serious concern.

Dry wood termites are the kind which require a more invasive treatment. A single colony can be sprayed, or the wood can be injected. Multiple colonies or difficult to access colonies could potentially require “tenting” the home & fumigating heavily. However, here’s my opinion of how common this is..

I’ve lived in Phoenix for 35 years. I’ve known 2 people personally who have had their homes tented, and I’ve seen *maybe* 2 dozen homes tented as I’ve driven around. I’ve only seen dry-wood termites once, when I helped a friend remove a wood storage shed from his backyard. The wood floor was brittle, and as we pulled it back we could see their colony. He had that area of the yard sprayed, and never had any problems after that. I’ve been involved in hundreds of transactions as a loan officer and a realtor, and I’ve never come across a transaction where the home was infested with dry-wood termites.

More Information

Sexton Pest Control is one of the largest termite exterminators in Phoenix.

JS Pretreat is another large termite exterminator in Phoenix.

Here is an article about dry-wood termites.

I know it can be discouraging to hear that your home, or a home you’re buying has termites. But if you step back and take a deep breath, they’re really not that big a deal. Just make sure the home is treated properly, and that you get a warranty. Then you can have the termite company come out every year to do an inspection for you, and to treat any new evidence they find.

Personally, we’ve had subterranean termites in 2 of the 3 homes we’ve owned. In each case we got the home treated and never saw new evidence of termites after that.

Your hopes to never see Southern termites Realtor,

Chris Butterworth

No.

The Residential Purchase Contract allows the Buyer 10 days to inspect the property. More often than not (in fact, almost always) the Buyer is going to hire a professional home inspector to walk through the home and check all aspects of it with a fine tooth comb. Many Sellers express an interest in being there during the home inspection.

I advise against the Seller being present, for a multitude of reasons.

1. The Seller wants to see first-hand what the inspector finds. This isn’t important, as the Buyer is required to provide the Seller with a copy of the inspection report. Most inspectors are more than willing to answer questions about anything in the report which is confusing or otherwise unclear.

2. The Seller wants to be able to answer any questions the home inspector might have. This isn’t necessary, as the home inspector has seen hundreds of homes and knows what he is looking at/for. If you have a particular switch or other feature which is different from standard, you can leave a note about that one item.

3. The inspection process can be very personal for the Seller, who often feels anything the inspector finds as a personal attack on his/her homeownership ability. It puts the Seller in a very defensive position, which makes for a less-than-friendly encounter. That’s not in anybody’s best interest at this stage of the game. Remember, if you’re negotiating from emotion, you’re probably going to lose.

4. For the Buyer, this process is 50% finding out about the house and 50% negotiating strategy. If the Seller is present, the Buyer will not be allowed to think & speak freely. Instead of saying “that’s a non-issue – we were going to replace the cabinets anyway”, you’ll hear “Oh really, the cabinet isn’t level – sounds like a major problem.” The Buyer will do everything he can to make the seller nervous.

5. The Inspector also won’t feel comfortable speaking freely. You won’t hear him say “most of the newer homes in the Valley were built this way. It’s not an urgent matter, but you’ll probably want to keep your eye on it.” Instead, you’ll hear “That’s really not the best way to do it, as it allows the possibility for moisture to get inside the wall.”

6. Just by being there and getting a chance to talk to everybody, the Seller will oftentimes tip his hand about what he’s prepared or willing to do. Obviously the Buyer is going to ask for at least that much.

We’ve been at an inspection where the Seller was adamant about not fixing a broken window, almost to the point of yelling at us. As we left the inspection, our Buyer remarked “I’m not sure if I should ask him to fix the window or cancel the contract, just because he’s such a jerk.”

We’ve had another inspection where the Seller heard the inspector pick the home apart. Our Buyer didn’t think any of it was major, and he was getting the home at a good price, so he was only going to ask for one or two items to be repaired. A few days later the listing agent emailed me to say that the Seller had already addressed just about everything on the report.

Sellers, I know you WANT to be at the inspection. But in reality it’s probably not in your best interest. The odds of doing more harm than good are stacked against you.

Your doesn’t like sellers present at home inspections Realtor,

Chris Butterworth

So you’re going to move. (smiling face.) You’re going to move. (anxiously looking around the house at all your stuff.) You’re going to move. (full blown panic attack!)

Yes, moving can be intimidating - even overwhelming. But it’s also exciting - a fresh start on life. Your goal during this endeavor should be to make the process as smooth as possible. Understand that it’s a lot of work and it’s very complicated with many “moving” parts. But if you think ahead and make a good plan, you can minimize the chaos. Here are some ideas to give you a smooth move.

1. Attitude

Moving is generally listed as one of the most stressful events in a person’s life - right up there with marriage, divorce, job change, and having a baby. You’re dealing with the mortgage company, the title company, selling a home, buying a home, utility companies, school districts, etc. etc. (ok, take a breath now.)

Sometimes you need to take a step back and remember the big picture. Millions of people move every single month. It’s a one-time event, and soon enough you’ll get your life back. There was a reason you wanted to move in the first place, right? Try to focus on how great your new home is going to be.

Smile. Be friendly. Take a deep breath. You’ll get through it - and a good attitude will go a long ways towards making a good move.

2. Money

You can make all the budgets you want, but be prepared for unplanned expenses. Buying moving boxes, renting a hotel for a night, ordering pizza, calling a handyman/plumber/electrician, making an emergency trip to the grocery store/mall/hardware store. There are a million little expenses out there, odds are you’re going to run into a few of them.

3. Paperwork

You’re going to get bombarded with paperwork - loan papers, real estate contracts, title paperwork, moving estimates, repair estimates and receipts, contact names and phone numbers, travel arrangements, to-do lists and other brainstorming ideas, paint colors, furniture ideas - the list goes on and on. This is no time for sticky notes and scratch pads! (which tend to get lost during packing).

I recommend using an Accordion File for your move. You can put anything inside it - file folders, brochures, loose leaf papers, etc., and you can label various sections if you’d like. This way you won’t have to worry about when to pack the file cabinet, or finding a phone number that’s only inside your computer. You’ll have everything related to the moving process all in one place. Once your move is completed, you can go back to your regular filing system.

4. Packing

Packing everything you own can be a monumental feat, especially if you have a large family, a large home, and/or you’ve been in your home for quite some time. This is one of the areas where you can reduce a lot of stress by starting early. (or add a lot of stress by procrastinating - your choice!)

Get LOTS of Boxes. Go buy yourself a bunch of boxes so you can start right away. Then, over the next couple of weeks, you can keep your eyes open for any used boxes that become available. You might even contact your Realtor to see if he knows anyone who has recently moved and can part with a few dozen boxes.

Pack Early. It’s Phoenix, it’s summer, it’s 112 degrees outside. Why are you waiting to pack your winter clothes? Get those puppies boxed up and out of your way! And while you’re at it, why not box up your holiday decorations, formal dining sets, and power tools that won’t be used this month? Anything you can pack up today is one less thing you’ll need to worry about later, when the pressure’s really on.

Purging. Take a good, long, realistic look at the things you don’t use very often. Use the move as an excuse to overrule your inner packrat; the more you can get rid of, the less you’ll have to move! And I know from experience, it’s very frustrating to take something out, think about discarding it, clean it, wrap it, find a box for it, move it, unpack it, and then put it in the “donate” pile. Grrrrr. You can hold a yard sale, donate things to charity, or call a junk removal service. (or all 3.)

Pack Completely. On Moving Day, you’ll find the 80-20 Rule in full effect. 80% of your time will be spent on the 20% of the small, left-over, “no big deal I’ll grab it as we’re leaving” items. All the big items and all the pre-packed boxes will move very quickly and easily. All the small, one-off, don’t-want-to-put-in-a-box items will take 3 times as long as you expect. Bottom Line: pack it, wrap it, do whatever you need to do, but put it in a box.

4a. Personal Items

Pack a suitcase or duffel bag with a few necessities for each member of the family. A change of clothing and some toiletries at the least. Keep this bag with you during the move. This way, if worst comes to worst on moving day, you can at least stay clean & fresh.

5. Going Pro?

You can have movers do all your packing and moving for you, or you can do the packing and let them carry everything. This is a question of time, money, and personal preference - there isn’t a right or wrong answer. If you decide to enlist the help of the pros, do plenty of research and get a few estimates. Read your estimates & contracts carefully, and know the payment terms beforehand.

Load-at-your-house Storage Units (PODS, Mobile Mini, Door to Door). Here is an option that may be a compromise between hiring professionals and moving yourself. These companies will deliver a large storage container to your driveway. You then fill the container with your own belongings. When you’re ready, the company will pick up the container and either place it in storage for you, or deliver it to your new home, where you can unload it at your leisure.

We used PODS when we moved in 2006, and it was terrific. We had one POD delivered as we prepared to put our home on the market, which allowed us to store excess items from the garage, closets, and other bulky, rarely-used stuff. Then, we had a 2nd unit delivered the week before our move, and we were able to fill it with all the boxes we had pre-packed. Once we moved into the new home, both PODS were dropped off for us to unload.

6. Utilities

Don’t forget to arrange for the utilities to be disconnected from your current home, and connected at your new home. Here are some of the key providers:

APS

SRP

Southwest Gas

Cox Communications

Qwest Communications

Direct TV

Water - whether public or private

Trash Collection - if not included with your water company

Sewer - if applicable

Other local providers

7. Change addresses

Write down a list of ALL the people and companies who will need your new address, then cross them off as you notify them. Here are some of the most common ones:

Friends and family members

Employers, especially your W-2 Form

USPS - complete a change form with the Post Office 2-4 weeks in advance of the move.

Credit Cards

Banks

Investment Brokers/Accounts

Department of Motor Vehicles

Social Security (if receiving benefits)

Veterans Administration (if applicable)

Cell Phone Providers

Insurance Agents/Companies - auto, life, health, disability, umbrella - etc.

Doctors - primary, specialists, pediatricians, dentists, chiropractors

Pharmacies

Veterinarians

Schools &/or School Districts

Magazine Subscriptions

8. Timing

There are 3 basic scenarios for moving: Buy the new home before selling the old home, Sell the old home before buying the new home, and Moving from the old home to the new home on the same day.

Buying First. The moving process is much less stressful, since you can move at your own pace. However, the cost of owning 2 homes can be a financial stressor for many people. This is a personal decision, and there are many variables to consider. I’d be happy to discuss this process in more detail with you anytime.

Selling First. This is almost the exact opposite of Buying First. You remove the financial stress by having your cash in hand and knowing exactly how much you have to work with. And you might have some flexibility with the actual moving process, depending on your temporary situation (if you rent until the end of the month but close escrow in the middle of the month, for example.) However, the stress of moving twice can be more than some people want to deal with.

Same-Day Close. This is easily the most stressful alternative, but for many people it is the only viable option, generally (but not always) due to financial restrictions. There are so many things that have to go right to pull this off - multiple buyers’ lenders, and multiple title companies, multiple buyers & sellers (and each of their Realtors), and multiple movers… Let’s just say it’s a nail-biter when things go well, and it can go sideways in a hurry, often without a particular person at fault. If this is the route you’re going to take, do yourself a favor and be ready with a contingency plan - just in case. (And re-read Item #1 about Attitude!)

9. Time off work

Some people like to schedule time off before the move, so they can make sure everything is packed and ready to go. They figure as long as everything gets to the new home, they can move in over time. Other people like to take time off on moving day, to ensure everything actually gets moved. Still others will take time off right after the move, so they can put the new home together just the way they want. And the luckiest people will do all 3! This is a personal preference item - do what works best for you.

That’s it. 9 Simple things and you’ll make Moving Day a non-event.   (well, maybe that’s a stretch…)

Your really doesn’t like moving Realtor,

Chris Butterworth

I’m working with a buyer who wants to see a particular property. I look in the MLS, and the property shows as an Active listing, along with some showing instructions. I call the owner (per MLS instructions) and leave a voicemail. I call the listing agent, who says as long as I left the owner a voicemail we should be ok to show the home.

I meet my client at the property, and we enter the twilight zone together. Kids’ toys and clothes are strewn across the driveway & front yard. The garage door is open, leaving stereo and computer equipment in plain view. We hear noise inside the home, but it sounds like a television. It still “feels” like somebody is in there. My first thought was to reschedule, but my client was brave & wanted to proceed.

After a few minutes of knocking & ringing the doorbell, I open the door to let us in. I announce our presence by practically shouting that we’re entering the home. Here’s where it gets really weird.

The house looks as if they were in the middle of hosting a crazy fraternity party – like something you’d see in a movie – but then everybody just disappeared. No cleaning up, no winding the party down – just ‘Zap’. Every TV was on. There were food & dishes in the kitchen & family room, and the furniture had been moved. There were clothes of all types scattered throughout the house. It was one of the most bizarre scenes I’ve ever seen.

My client suggested maybe we had just missed the police raid…

As brave as we were, we didn’t stay long!

Your leaving tire marks down the street Realtor,

Chris Butterworth

Technorati Tags: showing property

I don’t know about you, fellow bloggers, but when I’m searching for homes for many of my buyer clients I search by a geographic boundary. It’s typically how my clients talk to me about where they want to live. “I want to be north of Bell Rd and East of 7^th Ave…” (or whatever the boundaries are). We then talk about what type of house they are interested in…do they want a newer home or an older home, single level or two, pool or not, you know what I mean. I then go into our lovely MLS system currently supplied by Tempo and set up a search, trusting that any home that’s for sale in the geographic boundary that I set up will show up in my search. Well, as you might expect, that’s not always the case. My beef today isn’t so much with Tempo, that’s like beating a dead horse (or maybe it’s not even LIKE beating a dead horse…..hello FlexMLS!!!), it’s more with listing agents that don’t double check their listings when they enter them into the MLS. I don’t know about you, but I sometimes make mistakes, even though my wife tells me I’m perfect J. So once I’m done entering a new listing, I spend a few minutes making sure that my new listing, whose owners are counting on me to do everything in my powers to sell, shows up any search that I can think would be run to find this home. Will some buyer’s agent search by zip code…probably. Will some buyer’s agent search by school district…probably. Will some buyer’s agent search by the MLS area and/or grid…probably. Will some buyer’s agent search by geographic boundary…probably. It is our job a listing agent to make damn sure that our listings are showing up in every possible way that they are supposed to show up.

It aggravates me to no end to find listings that either aren’t mapped correctly or aren’t even mapping at all. It takes one simple phone call to fix the problem. And not only are those agents doing their clients a huge disservice, but now it makes my job as a buyer’s agent a lot harder. I have to run a couple of different searches to make sure that all of the houses that are available within a certain geographic boundary are, in fact, showing up in my search. Now, I know what you are saying, “why should it even take a phone call to fix the problem?” And I agree, it’s pretty bad that Tempo doesn’t proactively look for properties that aren’t mapping at all and attempt to fix the problem, but my guess is that it’s not going to change any time soon. So in the mean time, do your client’s a favor and make sure that their property will show up in front of every potential buyer currently in the market for a new home. In other words, just do your job!!

**Disclaimer: I know I’m ranting a bit here, and I certainly am not aiming my rant at any of my fellow bloggers, since we are all just about as perfect as Realtor’s come. J I’m mostly focusing on all of the other nim-rods in our industry who just don’t care enough to do their job correctly.

-Steve Nicks

Technorati Tags: listing agents, real estate mapping

A friend of mine had a home listed for sale for $519,000, when he received a low-ball offer of $450,000, which started a series of counter-offers going back & forth. In the end, the buyers wouldn’t budge above $470,000, and my friend wouldn’t budge below $480,000 (against my advice), so they both moved on.

My question regarding killing a half-million dollar sale over ten thousand dollars was answered with something about the numbers on his spreadsheet saying he couldn’t do it. (my second question was, if you’re willing to sell for $480k, why are you listed at $520k?)

A couple months later, when the home was listed for $475,000, he had another offer on the table – this time it was for $440,000. After speaking with the buyer’s realtor, he was assured that the buyer would accept a counter-offer of $448,000, so he countered. Unfortunately, while the counter-offer process played out, the buyer’s 2^nd choice home lowered their price by $30,000, so the buyers decided to purchase that home instead. Was this just dumb luck, or did leaving the door open allow the sale to walk out?

A few months after that, construction had finished on my friend’s new big, beautiful, custom-home, and he had to either close on it or take a loss of his deposit. He lowered his asking price to $425,000 and did one last big marketing push to get another offer. Unfortunately, no final offers came in.

The moral of the story: it’s a buyer’s market right now. Sellers, what’s your bottom, bottom, bottom line? The price that, if you can’t get that price, you’d rather not sell. The price you’d accept in desperation. Now go list your home very near that price and see what happens. If you don’t get your price, then it wasn’t meant to be & you’ve already decided you’re happier not selling.

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Your fostering urgency Realtor,

Chris Butterworth

Technorati Tags: declining market, pricing strategies

“Your home is your biggest investment.” Haven’t we all heard that before? And it’s true, for most people. We’re talking about an asset that is generally worth several years’ salary. The price of a mistake, or a bad decision, could have serious consequences.

Here are some things to consider as you start down the road of selling or buying a home:

Bill of Rights. The Arizona Department of Real Estate (ADRE) has published a Consumers’ Bill of Rights, which outlines what the department believes every consumer has the right to know. Personally, I think this is simply a starting point, and it brings up some ideas a consumer might not have thought about, but it is far from all-inclusive. A good Realtor and an educated Consumer should be discussing and investigating the subject property in a lot more detail than what’s outlined in the Consumer Bill of Rights.

ADRE Buyer Advisory form. This is another document, tailored more towards buyers than sellers, which has a wealth of information about the purchase process. It’s a bit long and tedious to read, but it should be required reading for anyone thinking about buying or selling.

A Good Realtor will help you understand the entire process, from start to finish, before you start. There may be dozens of pages of contracts, addenda, disclosures, notices, etc., and you’ll want to know what each one means and what your options are at every step of the way.

How do you know if you’re working with a good Realtor? You can start by reading our earlier articles on “How to Interview Your Realtor” and “What Some Agents Will Tell You to Get Your Business“.

Unfortunately, even if you have the best Realtor in the world, you may not get exactly what you want. Unless you…

Become a Prudent Consumer, and educate yourself in the process. If you hear about grading or foundation, and it makes you think of cheese or makeup – that’s ok. There’s plenty of time to learn, but it’s up to you to do it. Talk with your Realtor about what your ultimately trying to do. Ask lots of questions – no question is too small. Do some research online (and then ask/talk with your Realtor again). Read the Buyer Advisory form (and then ask more questions). See a pattern here? You want to have a good understanding of the contract, so make sure your Realtor can help you understand it. You are ultimately responsible for your decisions, so do whatever you can to make sure you’re making good, well-informed decisions.

There’s a lot at stake when buying or selling a home – $200,000, $300,000, $400,000, or more. And there’s an old saying “A fool and his money are soon parted.” The real estate industry has evolved over the years to offer a lot of protection to buyers and sellers, but in the end, the more educated party in the transaction is less likely to be the fool…

Your educating consumers Realtor,

Chris Butterworth

Technorati Tags: consumer bill of rights, adre, buyer advisory, Fletcher Heights

If you’re an individual home buyer or home seller, and you’re using Zillow to help estimate the value of a particular home, I have some advice: don’t.

Zillow’s accuracy of data would struggle to earn a passing grade in all but the most generous of schools. And Phoenix is listed as 4 Stars – their most accurate rating!

I’m looking at the results of 3 different types of Zillow-information:

1. Zillow’s own Website claims: 36% of all zestimates are within 5% of the actual sales price; 61% are within 10% of the actual sales price; and 84% are within 20% of the actual sales price.

This means that a home with a zestimate of $300,000 should sell between $240,000 and $360,000 in 17 out of 20 cases. The other 3 cases would be lower than $240,000 or higher than $360,000.

If a client asked me how much he/she should pay for a house that comps out around $300,000, and my response was “somewhere between $240,000 and $360,000, but possibly less than $240,000 and maybe more than $360,000″, I would fail as an agent.

Result: Fail.

2. Zillow’s list of Active Properties: I had clients recently send me a list of homes they had found on Zillow that they wanted to see in person. All 15 were listed in Zillow as Active Listings, but up-to-date MLS records showed different information.

3 of the listings were already in escrow. 1 seller had canceled the listing (meaning it was no longer for sale). 2 of the listings had expired (meaning they were also no longer available for sale). And 9 listings were Active Listings.

Result: 9 out of 15 is 60%. D minus.

3. One Particular Example: I have a house under contract at $287,500. The list price was $323,900, and Zillow’s zestimate was $363,125. So out of all the examples out there, the first one I pick to look at in more detail falls outside of the claimed 80% accuracy range.

Result: Fail.

Note: the numbers above were modified, but the relationship between them has been kept accurate.

What does this mean for somebody who wants to use Zillow? Go ahead and use it. Zillow’s a nice way to get acquainted with a new city – it gives you the lay of the land and a general idea of what prices are for different areas. But for any particular home, I would run (not walk) to find a local Realtor who can help you find that home’s true value.

Your prefers quality over quantity Realtor,

Chris Butterworth

Technorati Tags: zillow, zestimates, phoenix real estate, Fletcher Heights