home

New Tools to End Buyer-Seller Battles

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | March 15th, 2019

Home inspections are often a major bone of contention between buyers and sellers. Buyers tend to demand that sellers fix every little thing that their examiners find wrong with the house, and sellers sometimes hold firm that they won’t mend items that they believe amount to nothing less than nitpicking.

Worse, though, buyers tend to ascribe the cost to repair everything the inspector discovers at two or even three times what it really might set them back. So they prune their offers by that amount. That leaves sellers stuck having to decide whether to accept a lowball offer or bite the bullet. Let more hard bargaining ensue.

It’s doubtful that this scenario will ever end, no matter how hard the buyer’s agent pleads with her client not to sweat the small stuff -- and no matter how hard the listing agent begs the seller to consider the big picture. But now there are several ways both sides can obtain accurate repair estimates quickly.

If you are familiar with inspection reports, you know they can be lengthy and detailed -- and therefore difficult to decipher. They also offer little, if any, insight into what it might cost to repair what the inspector says needs to be fixed.

Before going any further, it is important to realize that bargaining over every little thing an inspector discovers could be counterproductive. If a buyer dickers too hard, the seller is likely to tell him to take a hike. Existing homes often come with defects, many of which are cosmetic in nature that won’t impact the home’s livability. Even new production houses aren’t perfect, and buyers can take their time making cosmetic fixes after they move in.

For the big-ticket stuff, like an HVAC system that’s on its last legs or an unknown roof leak, new online services like RepairPricer and PunchList can be invaluable.

Based on studies of real-life inspection reports, RepairPricer (repairpricer.com) claims a 98 percent degree of accuracy when it comes to true repair costs. But it does not guarantee its pricing because “there are too many variables and potential underlying issues” of which it may not be aware.

Punchlist (punchlistusa.com) not only provides an estimate of repairs called for by a home inspector but also does the work. The company furnishes its clients with what it says is a quick, but accurate, detailed pricing estimate using a proprietary program that analyzes the inspector’s report.

An estimate is not the same as a price quote, though. Estimates are not contracts and are subject to change based upon actual conditions. A quote, on the other hand, is a contractual offer not to exceed the stated prices. And PunchList, which has a $500 minimum, says it has to see the job in person to be able to firm up the cost enough to produce a quote. Its rates are based on the job, not by the hour, which is how most home repair services work.

At the same time, HouseMaster (housemaster.com) customers can click on the “Estimate Repair Cost” tab on the company’s website, enter the property information and begin generating quotes on items that need to be fixed. The report will build an estimate using data that has been researched and validated by a third-party vendor used by most major insurance companies to build their estimates. One repair estimate comes with every inspection.

Meanwhile, HomeZada (homezada.com), a digital program that helps owners manage maintenance schedules, home improvement projects and even finances, now has an app that allows you to make a digital list of everything you have in your house. All insurance companies recommend creating an inventory of your belongings. That way, if you experience a flood, fire or theft, you won’t have to rely on your memory to determine what was lost.

The technology detects both personal property pieces such as furniture, electronics and collectibles as well as fixed asset items like appliances, fixtures and even building materials. Itemizing both is important because homeowners insurance policies have two different amounts of coverage: one for personal property, and the other for the dwelling itself.

home

Sellers Need to Be Cautious at Showings

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | March 8th, 2019

The names Samantha Keithley, Orlando Martinez and Steven Wilson probably don’t mean anything to you. But they are the names of three real estate agents killed in the line of duty in just the last six months of 2018, Keithley in Land O’Lakes, Florida, Martinez in Philadelphia and Wilson in Hanover, Maryland. A fourth agent, David Stokoe of Salt Lake City, was killed in January by his tenant while serving an eviction notice.

The possibility of being shot, stabbed or bludgeoned to death is hardly the only issue agents face when they show houses to total strangers at all hours of the day and night.

According to the National Association of Realtors’ Member Safety Report, a third of all agents experienced some sort of situation that made them fear for their personal safety in 2017. It happened everywhere, not just in the big cities. And while women felt threatened the most, so did men.

That’s why NAR and many member firms have made safety a top concern. Every September is Realtor Safety Month. But there is no Seller Safety Month, and agents rarely pass along safety tips to their clients. So sellers go forth, often totally oblivious to the dangers that may lurk.

Here are some precautions every seller should take to protect themselves and their property:

-- First and foremost, trust your instincts. Your intuition is your most powerful crime-fighting weapon. If something or someone makes you uncomfortable, be extra alert and extremely careful.

-- If someone shows up to see your house unannounced, have them call your agent to schedule an appointment. That’s why you have one. No exceptions!

-- If you fail to heed that warning, at the very least you should never, ever let a stranger into your home when you are alone. There is safety in numbers. If the visitor is insistent, ask a neighbor to come over while you show the visitor around. If no one is available to keep you company, tell the visitor to come back later, or call your agent. It’s better to lose a sale than your life.

-- Identify unknown agents. It’s too easy for someone to print up fake business cards, so call the agent’s office to make sure the agent is who he says he is. Never let another agent directly into your house. Instead, make them open the lockbox your agent placed on your door to gain access. Non-agents won’t be able to.

-- Don’t make an appointment with potential buyers unless they give you their names and phone numbers and you have called them back to verify the information.

-- Beware of callers who knock on your door at strange hours, either late at night or early in the morning. Again, no matter who they say they are, ask them to make an appointment at a more reasonable time.

-- In advance of an open house, remove your valuables, including jewelry, artwork and electronic equipment. Also, guns and other weapons should be locked up and separated from the keys and ammunition. And never leave money, mail, bank statements, credit cards or your keys lying around. Keep them on your person, not in a drawer. Lock up your prescription drugs, too.

-- Pay attention to the way prospects view your house. Professional burglars often linger in rooms, looking for items they can dispose of quickly. They also search for ways to get in and get out, scouting possible escape routes and checking for security devices. Couples up to no good often split up so one can case the joint while the other keeps you occupied.

-- Be mindful of someone who is asking unusual questions that have nothing to do with the house.

These queries could be an attempt to determine how long you’ll be alone, or when the house will be empty. Never let potential buyers know your schedule.

-- If a prospect asks you to show him around, let your visitor enter the room first. Don’t turn your back on them or lead them around. In other words, direct them as opposed to letting them follow you.

-- Don’t allow yourself to be trapped in a corner or behind a desk or other piece of furniture. And never go into a walk-in closet, laundry room, basement or storage area with someone you don’t know. Those spots leave little room for escape.

Overly cautious? Probably so. But it’s better to be safe than sorry.

home

Emotional Matters in House Selling

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | March 1st, 2019

There’s only one thing more traumatic than selling the family house you’ve lived in for years: Selling the house of a recently deceased loved one.

All things being perfect, the former owner should have a will that states how the house should be disposed of. Beyond that, though, you and your siblings, other family members or friends are going to have to wing it. But either way, the sale will be fraught with emotion, if only because it’s like saying another goodbye.

Agent Maria Sapio of Berkshire Hathaway Homesale Realty in Carlisle, Pennsylvania, has a lot of empathy for people entrusted with selling a loved one’s house. She walked the same path in 2016 when her mother passed away. She’s also helping several clients go through the process right now.

Sapio’s best advice: Before putting the place on the market, hold a gathering at the house so extended family and close friends have the opportunity to join you as you sift through furniture, clothing and other household goods. “This,” she posted on the ActiveRain real estate chat room the other day, “helps to transform a challenging task into a celebratory event of reminiscing and sharing about special times and memories.”

Several years ago, Kathy Streib of Room Service Home Staging in Delray Beach, Florida, held such a get-together when a dear friend passed away. “It became a celebration of his life,” she says.

Once the gathering is over and your emotions subside, you’ll probably want to have an estate sale. And after that, it’s probably a good idea to clear the house of what’s left -- consider giving the remaining contents to charity -- so it can be cleaned thoroughly and possibly even painted so it shows fresh when you eventually put it on the market.

While you’re at it, take care of whatever repairs might be needed. Fix the dripping faucet, have the HVAC serviced and mend anything else that might turn off a prospective buyer. Also consider hiring a home inspector to go over the house so you’ll know if there is anything major that needs to be addressed. Your eventual buyer almost certainly will hire his or her own inspector, so it pays to know what to expect.

It helps if the deceased has named a favored agent in his or her will to sell the house. Jeffrey DiMuria of Waves Realty in Melbourne, Floria, says he’s been named “several times” in wills to handle a sale after someone has passed.

Absent that, you’ll have to find an agent on your own, and doing that takes some legwork. You’ll want someone who specializes in the hyper-local market, as well as one who is well-known in the area and is a sales leader.

But also consider agents who have experience dealing with situations such as yours. Pat Starnes of Front Gate Realty in Brandon, Mississippi, has assisted in several sales of a loved one’s home. “One of our privileges is to help” survivors and executors, says Starnes.

In looking at the house as something that must be liquidated, consider hiring an appraiser to come up with a fair market value. If there is a dispute among siblings, everyone should agree to hire his or her own appraiser and set the price somewhere in the middle of the various valuations.

Don’t set the asking price too far above the appraised value -- over-priced places don’t sell unless it’s a seller’s market -- and don’t haggle too hard with someone who makes you a reasonable offer. “Making an irrational counter-offer and not being willing to give an inch is what over-emotional sellers do,” Sidney Kutchuk of Realty Works in Temecula, California, warns. “This only drives well-intentioned and capable buyers away.”

Unless you intend to move into an inherited house, it pays to sell it as quickly as possible, if only because of the federal tax implications. Inherited properties don’t qualify for the sales tax exclusion, but you do gain ownership at a stepped-up tax basis -- the fair market value of the property -- at the time of the loved one’s passing.

That means you take over the house without having to pay any taxes to Uncle Sam. But for every day you own it after that, you’ll have to pay a tax on any increase in value until the house is sold.

Next up: More trusted advice from...

  • Palazzo Pants
  • A Few Words
  • A Thanksgiving Prayer
  • Toys for the Win
  • The Scoop on Litter Boxes
  • Wagsgiving
  • Lessons on the 'Secrets' of Success
  • Social Security Benefits After Divorce
  • Thinking About Retirement Preparedness
UExpressLifeParentingHomePetsHealthAstrologyOdditiesA-Z
AboutContactSubmissionsTerms of ServicePrivacy Policy
©2023 Andrews McMeel Universal