Tag Archives: buyer

What Do I Do in these Uncertain Times?

Not what you want to hear, I’m sure, but…it is your decision.

The good news is: you have an advisor called a real estate agent. Here’s why this matters. Real estate agents have to know their market and even sometimes markets they don’t operate in. Why? Because real estate is complicated and multi-faceted, particularly if you’re trying to bridge two different markets. If you are moving to our market, we need to know the market you’re coming from if you have a home to sell. If you have a home to sell, you are going to be held to expectations by the seller from whom you wish to buy. So your agent needs to know how long your existing home in that other market might sit on the market. This way, we know how much time you will probably need, so you do not BREACH your offer to purchase on the home you wish to buy. That’s a mouthful.

By the way, if you do this on your own, your attorney isn’t going to know how much time you need.

I’ve said this many times and if you follow me, you know it. Our unique knowledge can save you thousands of dollars…if you listen. We don’t want you to create such a tight timeline that you cannot possibly make it, particularly if you have thousands of due diligence dollars at stake. Remember you put due diligence dollars into the transaction up front, and if you do not close, you lose that money! I don’t know about you, but I don’t like losing money.

Let me give you a scenario of people who refused to listen to their agent. The had a home to sell and made an offer on another home, an older one. It had a septic system, which included an old, old septic tank. Their agent urged them (and urged and urged) to ask the sellers to repair any damage to the tank. They didn’t listen. NOW, they have a bad situation with a damaged tank that must be REPLACED, not repaired. And did you know that if you REPLACE a system, it must meet current code? Yep. And that means permits, new tank, new installation, new drain field and one in reserve. What happens if your land isn’t large enough to support what the new code requires? Well, there are solutions, but the dollar amount could be 5 figures. Not kidding about that.

By the way, if you try to do this on your own using an attorney, the attorney isn’t going to ask you how old the septic system is.

What about this scenario: First time buyers make an offer on a home they’ve looked for, for months. Terms are negotiated and agreed upon and then the sellers want to stay for a couple of days after closing but don’t want to sign a form allowing them to do this, holding them accountable to a timeline and any damage they cause, and pay rent to the new little buyers. THEIR agent pressures the buyers to let them just hang out for free. What would you do?

The first thing is, it is not the new buyer’s responsibility to plan the sellers’ move. It is also not their job to help the sellers move out at their leisure, at no cost to the ones leaving. Poor planning on the part of the sellers does not mean the buyers have to put their financial wellbeing at risk. If you allow this and the sellers burn down the house, it’s on YOU, the new owners. And listen very carefully. Your insurance company PROBABLY won’t cover you because you don’t have a rental policy. See the problem? Don’t do it! Listen to your agent and call the insurance company. By the way, if the sellers scuff up the paint and gouge the walls while they move furniture out, they can leave it and you, new owner, have zero recourse.

One last thing: interest rates are most likely never going back to 3%. If you wait, rates will go up and so will house prices in hot markets. Just make the move. Refinance later if you don’t like the rate, but don’t let the house go up 30 grand in price while you wring your hands. It’s not wise to wait in MY market. And investors are circling like sharks in bloody water. They’re going to offer cash, so PLEASE listen to your agent about how to navigate these waters. I know. You have the internet. But we do. this. every. day. We have deep knowledge, not something we just read online.

Please call me directly at 919-210-6113. I’ve said this a lot too: It doesn’t cost ANYTHING to have a conversation, and experience DOES MATTER. I’d love to help you with your real estate needs. Or cats. I can help you with cats, too.

I hope your day is spectacular!

Regards,

Brenda Briggs, Realtor, Broker

Recent Hot Market Effects…

Hello again!  I hope your life is going well for you and that you are finding time to do things which bring you joy.

As you know, I am a real estate agent, and somewhere along the recent past I made a comment about what to be aware of in the coming months, with regard to the crazy real estate market.  Well, some of the things I feared are showing up, just as I predicted.  For example, heightened emotions due to multiple offers are definitely in play.  Emotion is not a great idea in a business transaction.  Hard to eliminate, to be sure, but never should emotion lead the way.   I cautioned real estate agents to advise their clients well in that regard, to prepare them for the inevitability of multiple offers and even offers above list price.

I tell my clients to know their limits, discuss them with one another, and be prepared to walk away from an overheated offer situation.  They know before we get in the car, what they are facing and how they will probably react.

It’s funny how people might be ambivalent about a particular home until they know someone else is interested.  If you, as an agent, see that phenomenon, it’s up to you to be the good advisor and make sure your client hasn’t gotten caught up in the competition, that they truly want the house.

And let me also add this: real estate agents are not immune to getting caught up in emotions.  It’s your job to guide, not lose control.

The other issue I cautioned about was homes not appraising for the elevated offer prices.  And now that’s also happening.  Listen, it is up to the realtor to know the market and know when an offer just won’t fly when it comes to the lending part of the equation.  Yes, it feels good to have your offer accepted over the others, but you had better know what to do and how to explain to your excited clients what happened, when the appraisal comes in low and the deal falls apart.  And if you get crazy with the offer price, it will.

Of course sellers want to get every penny they can from the sale of their house…and they should… but listing agents, you need to make sure they understand the implications of an above-list-price offer if it falls through at appraisal.  In other words, it’s not just buyers who need to be prepared.

Okay, here’s another issue.   EVERYBODY is busy.  So inspections take more time, repairs take more time, and underwriters take more time.  If your realtor tells you he can sell your house in 3 weeks and a mortgage is involved, or repairs are involved?  Fire him.  Any good agent knows that service providers are no longer sitting around waiting for the phone to ring.  They are busy and your request will be put into their queue.  DON’T RUSH THE TRANSACTION. Nobody benefits from that.

This market is going to be hot for a while; it takes a while for the pendulum to swing.  Knowledge is power.  Know what to expect and plan ahead.

Shrinking Inventory in the Real Estate World

The Perfect Storm is looming.  Interest rates are creeping up; housing inventory is shrinking; people are rushing to buy, people who were on the fence for some time.  It’s turning into a seller market, for these reasons and one other one that’s HUGE.  Multiple offers are commonplace.  Great for sellers.  Not good for buyers who are used to insisting on paint color being perfect before they even buy, carpet being new in a ten year old house, the right smell, the right temperature.  Sellers, celebrate.  Buyers, take a deep breath.  The world we knew a year ago has flipped.

When sellers have multiple offers on a home you really love, suddenly their repair budget shrinks or yes, even disappears altogether.  Some offers are high with ZERO concessions.  Suddenly that decor isn’t so bad after all, suddenly sellers are smack dab in the middle of the driver’s seat.  And folks, as inventory continues to go away, it’s going to become even more dramatic.

For so long sellers were put through the wringer trying to sell, and now it’s about to swing strongly in the other direction, moving so quickly through the middle ground we’re likely to miss it.  If you’re a seller, it’s a great time to have your home listed.  Buyers, better get busy, because not only might you have to compete with several others to get the home you love, you’re going to pay a lot more each month as interest rates creep up.

I said, some time ago, that one truism is that the universe WILL balance.  It happens in all areas of life, and it’s happening in real estate now. Don’t you feel it?  Exciting times.  Don’t miss out on the still good prices and interest rates, people.  We’re about to see house prices, first on new construction, take a big leap.

Call me and let’s get busy!