The ins and outs of Real Estate

BusinessWeek reports smoke and Mirror Real Estate Practice

Peter Coy of BusinessWeek magazine wrote an article about a “widespread” problem with the market times of homes listed with multiple listing services around the country.

In his report, Coy detailed how listing agents/seller’s agents have sometimes cancelled listing agreements when they were on the market for an extended period of time without selling, only to re-list them again as new listings, against MLS rules!

Given the current housing slump and extended market times, often 7 months to a year or more depending on the property and area, this problem could become even more widespread.

Get the full story by clicking the link to BusinessWeek below…

http://www.businessweek.com/magazine/content/07_04/b4018055.htm?chan=rss_topStories_ssi_5

Preliminary Property Inspection

When you go out to look at homes, you should have a preliminary property inspection form with you. Your buyer's agent should have these handy and should provide them free of charge.

The preliminary property inspection report serves several functions....

1. Forces you to see the property as a commodity, and pay attention to structure, needed repairs, etc. You can save yourself some time as you won't need to make a second appointment before writing up your offer, and you won't make an offer based solely on aesthetics, or features.
2. Gives you a handy written reminder of the property for later review. If you see several properties, and two or three of them appeal to you, then you will be able to narrow down your choices, even further, by comparing the preliminary property inspection reports, which again, will help to jog your memory.
3. It saves you money on unneeded inspections, because you will be looking at the house or property, more thoroughly than if you didn't have the preliminary property inspection report. So, you will notice things that could make the home undesirable to you before you spend the money on a more thorough inspection. You will only be paying for an inspection on a home that passes the preliminary inspection, thereby saving time and money on unnecessary inspections.

Some of the things that your report should list are...

GENERAL BUILDING EXTERIOR

Grounds, Landscaping, Pool, Sewers or Septic Tank, Sprinklers, Other Building, Roof, Chimney, Foundation, Wood Exteriors, Other

GENERAL BUILDING INTERIOR

Heating and Air Conditioning Systems, Furnace, Air Conditioning, Water Heater, Other Built-In Appliances and Equipment, Ovens, Burners, Microwave, Dishwasher, Disposal, Smoke Detectors, Intercom, Electric Garage Door Opener, Other Electrical Systems, Interior Lighting, Exterior Lighting, Other Plumbing, Bathrooms, Kitchen, Laundry, Other Glass Windows, Screens, Window Panes, Glass Doors, Shower Glass, Tub Enclosures, Mirrors, Other Personal Property, Carpets, Draperies, Other

http://www.ces.ncsu.edu/depts/fcs/housing/pubs/fcs436.html

Finally, always do a preliminary property inspection (on paper) and later an inspection. If your agent doesn't present you with and help you with the preliminary property inspection, doesn't suggest that you have a professional inspection once you've decided to write an offer on a property, and or tells you to buy a home without an inspection...........as the saying goes, 'don't walk away, but turn around and run away from him (her) as fast as you can!

Buyer Negotiation

As anyone looking for a home knows, Real Estate prices have risen in the Chicago land area substantially in the last 5 years! Sometimes, home ownership can seem like an impossible dream! But, there are strategies that can make purchasing your home a reality.

For one thing, when you are searching for a home, you should try to remain as detached as possible. Remember that this is only one home, and that there are others available and there will be others available in the future. Remaining detached will enable you to make a decision based not only on emotion, but also on logic, and could help to increase your bargaining power.

If you enter a home and gush about how great the fireplace is, and how close it is to your sister’s home across the street, and how much you love the property, you will loose your bargaining power! Why should a seller negotiate on the sale price, credits, contingencies, etc. if you feel that you must have that particular house?

Don’t tell the seller, or the seller’s agent, how close the home is to your son or daughter’s school, nor reveal any information other than your first name to them. This is not paranoid, just good bargaining strategy.  As the British would say, "keep a stiff upper lip", or as we often say here in the states, "put on your poker face".  By doing this you will appear to take yourself out of the picture and force the other side to deal directly with your agent.

Following are links to some very good additional information on negotiating the purchase of a home.

http://www.freddiemac.com/corporate/buyown/english/purchasing/offer/negotiate.html

http://www.ces.ncsu.edu/depts/fcs/housing/pubs/fcs435.html

http://tms.ecol.net/realestate/art_negt2.htm