Posted by benanton in Blog
…and then Tyra said, I hate group dates. A recent Tyra show featuring one of the discarded bachelorettes sharing why she felt she was not the “chosen one.” She was never able to shine, to show her stuff. There was too much going on and she was unable to sell herself through all the chatter. I have never been on reality television but like this bachelorette, I too have suffered at the hand of the group date. When viewing home, especially occupied ones, it is easy to be distracted by photos, bad decorating. Even generally quiet folks are often willing to make a comment or remark about an odd style choice or dated feature. The more people on an outing, the more the comments and commentary can spiral and take over. I too am guilty of the occasional quip, it’s my nature.
In my years of helping buyers find a home I not had too many group dates but some buyers prefer to make the shopping experience a family affair or one for friends and loved ones to share in. You must be careful when doing so, it is so easy to get caught up in the joking and fun that you could easily overlook a gem in disguise or miss shortcomings. Enjoy the visit but make sure you stay centered, keep on task, follow a plan or the house your viewing could end up on Tyra, discarded for no reason. I too need to remind myself to do this, the more people on the outing the easier it is to get caught up in being charming and making certain to pay attention to the comments and questions of each person, making little to no time for me to work my craft. Yeah, that sounds cheesy but you get the idea. I just went back now to highlight the 8 or so important words in this post.
Posted by benanton in Blog
For a moment yesterday I was contemplating what it means to have a lawyer draft an offer to purchase rather than a real estate agent, broker or Realtor. (You can ask me later how those are all three very different things.) I think I can sum it up by saying: A lawyer can get so bogged down in covering your ass that it may take some time for your ass to get an accepted offer. If you are buying a house from another attorney this may not matter but chances are you are not.
There are all sorts of little nuances that go into writing an offer. Expectations that need to be met, unwritten rules and standards. A lawyer will generally not know that a pre-approval letter should accompany an offer and that it has become expected and the lack of one could mean a counter offer. Do they know that an inspection contingency of 10 days or more may raise a red flag. Do they step back and ask what the terms of the offer will mean to the seller and their ability to accept it, or do they move forward with a single goal that has nothing to do with making a deal happen. In my own dealings with lawyers, after the offer was accepted and the deal underway, subsequent deadlines were often ignored or missed. If real estate is not their primary business, a single deal can easily get lost in the shuffle.
I am reluctant to suggest that lawyers go too far to protect their clients interest, as it might suggest that I stop short of that ultimate protection. I don’t. Years of experience and learning the nuances of the dance allow me to help a client achieve a goal while at the same time protecting their interests. If you just do one or the other you will be protected from risk, but not from the rain.
Posted by benanton in Blog
The new Real Estate year started yesterday, the 4th of January, 2010. The first business day of the year was a cold one, the low temperature was the same as the date, 4. By the days end I would see as many as 20 new listings in the area surrounding my home. These few square miles blossomed like a spring garden even though the sun only shone for 13 hours. What’s the rush you ask? Here is how I see it. The extended tax credit, $8000 for first time buyers and $6500 for move-up buyers, has a sunset of April 30th. That’s just 4 months away and I don’t think any sellers want to miss this opportunity. The new credit it written that there must be ab accepted offer by that date, and the closing will need to happen in the subsequent 60 days. I am certain the first few months of 2010 will be busy ones. My fear is that it will be busy like a be hive is busy, lots of buzzing, bumping, flying, and constant activity. The real story I want to know is how much honey will they make.
Posted by benanton in Blog
Coming to real estate from advertising has several advantages. I learned invaluable marketing skills, how to cut through the clutter, negotiating, the sales process front to back and top to bottom. These are all things I can now use to help my clients achieve their goals. I also get top be on the radio once in a while. Here is a link to my December 2009 radio interview.
Click Here to Listen
A special thank you to Adam Elliot of 94.9 WOLX, Weekend Perspectives host and Ben Anton advocate.
Posted by benanton in Blog
Every deal is an opportunity to learn. This deal taught me a lot. I will try to touch on the few take-aways I felt would impact the most people in the future: Owning two homes, Seller Credits, Dealing with the Feds and the paper trail.
Owning two homes: This particular seller owned a home out of state. They chose to keep this home as a rental when they moved away. They moved to the Madison area 7 months ago. It used to be that rental income could be used to qualify you for a loan. Approx. 75% of that income could be applied to your debt to income ratio. It still can, IF you have been out of the home for more than a year. IF you have not operated that property as a rental for more than a year the underwriters will ask to see nto only 6 months cash reserves for your new mortgage, but 6 months cash reserves for your rental property as well. With the rising number of people renting versus selling, the underwriters see a new rental as a delayed liability rather than an asset.
Seller Credits: Beware offers of large seller credits. This seller (Freddie Mac), offered up to 3.5% seller credits. Our offer stated the credits could be applied to escrows and pre-paid items. Freddie Mac (the lender) would not allow a credit of that size, allowing only 3%. They also pick and choose which items might be included at their whim. Had the buyer been invoiced for the home inspection, appraisal, and rate buy down rather than paying them outside of closing (POC), they would have allowed them, but as they were paid already the buyer could not get the credit.
You can see that dealing with a pseudo federal agency has its pitfalls. One hand does not agree with the other. You will also be forced to move through their system in their way. If your buyer is anxious or nervous about deadlines, binding acceptance and the like you will go mad. Your original offer becomes merely a letter of intent. They then provide subsequent documents that supersede many of the original offers terms and should be studied carefully. While they do move forward in good faith and have no reason to default, following the letter of the law, or the contract in this case is not a strength.
Posted by benanton in Blog
When I help buyers find a home they will often hear me refer to a home as being “maximized.” For the most part this means that every opportunity to make additional living space, a better kitchen, updated baths, and cutesy finishes has been taken. What sometimes surprises them is that I think this is a bad thing.
You see, if you buy a home and hold it, your home will simply appreciate at the rate that property appreciates in that market. If you buy a home that has already been maximized, that is what you will do. If you buy a home that has some simple needs, ugly wallpaper, needs a little sprucing up in the kitchen or bath, and you do that work, then your property will appreciate not only as much as the others around it but also exponentially based on the sprucing up and improvements.
Think about buying Mums. You want to pick a plant that looks healthy, has a nice pot, a nice color but has not fully bloomed. You want to get the most out of that plant.
Now, not all investments in a home return exponentially, or more than they cost originally, but most simple updates requiring more sweat than equity do.
So as you shop for a new home, and you walk into one that has been maximized, have a look around and get some ideas. They did all the things you should do to the “Grandma House” that I will hope we uncover in our search.
