Category Archives: Selling a Home

Now Everyone Wants to Be a Real Estate Agent Again!

Back when the real estate market could barely be scooped out of the gutter, real estate agents were leaving the profession in droves — particularly the inexperienced ones and part-timers who could no longer make a living at it. (Some of that may have amounted to a necessary housecleaning.)

5_JFK-Harvard-JV-Football-TeamNow, with the market picking up and insanely high home prices reported in some parts of the U.S., becoming a real estate agent is starting to look awfully tempting again. In fact, the National Association of Realtors reports that 42,000 agents joined up in 2013, its first membership increase in seven years. (That’s 840 new agents per state, if they spread out evenly! If all of them had beoame football players instead, there’d be enough to field 15 new teams per state, assuming a 53-person roster.)

This influx of newbies makes it critical that anyone choosing an agent to help buy or sell a home do some serious homework and make sure to get someone experienced and reputable, not someone who got tired of trying to scrape out a living as an aromatherapy consultant.

An agent isn’t just someone who drives you to houses, or stands around during your open house. The most important role an agent can play today is making sure that, in this high-priced transaction, you don’t pay more than you have to (if buying) or accept less than you have to (if selling).

The basic steps to finding a good agent are to:

  1. Get referrals from friends and colleagues.
  2. Interview at least three agents.
  3. Check references. (You wouldn’t believe how many people fail to do this.)

For details, check out Nolo’s article on, “Choosing Your Real Estate Agent” and our “Real Estate Agent Interview Questionnaire” and “Real Estate Agent Reference Questionnaire.”

Sellers “should be asking us if we plan to hire a professional photographer”

chairThose wise words came from Teresa Boardman, a real estate broker and contributor to Inman News, in a column titled, “Sellers often have some old-fashioned ideas about marketing their home that don’t include photography and that thing called the Internet.”

With a title like that, need I say more? But I have seen firsthand how sellers assume that their real estate agents have a tried-and-true marketing plan and are up to date on technology and so forth. The sellers tend go straight to questions about how much the agent thinks the house will fetch, ignoring behind-the-scenes issues like what the agent will actually do to market the place.

By way of example, a friend of mine hired an agent after carefully researching several others in the area and checking out their reputations and references. She looked at the agent’s existing property listings, and didn’t notice anything amiss. So she didn’t think twice as she watched the agent go through her house with a camera, taking pictures.

Then, when she saw her house’s online listing, she was shocked. Dim, obviously amateurish photos made a charming house look utterly unexciting. By now, the house was listed, the open house was scheduled, and it was late in the game for a redo.

Anyone can take a bad photo. Here, I just took one for this blog, above. Notice how the light from the window creates painfully high contrast, and makes the space behind the chair look like a dark cave? A pro would never allow that.

Bad photos put a house at a serious disadvantage. First off, as Teresa Boardman and every other source of statistics will tell you, the overwhelming majority of homebuyers start their home search online. They no longer rely on agents to do the prescreening and show them possibilities in the real world — they can easily screen and eliminate homes themselves, based on what they see within the virtual world.

What’s more, online home searchers will be looking at a number of listings posted by agents who did shell out the several hundred dollars that it costs to hire a professional photographer. Some of those photos will make even the small, dark homes look like expansive palaces. (Ah, the miracles of wide-angle lenses. Next time you’re looking at listing photos, notice how all the refrigerators look like they’re about nine feet wide!)

So, yes, by all means ask prospective listing agents whether they plan to hire a pro. It’s not as though the agent will suffer by investing in this aspect of marketing — a successful home sale to an eager buyer will yield the highest possible commission to the agent, too.

Miami Real Estate Industry Willfully Blind to Sea Level Rise

fla hurricaneIt takes a writer from a British newspaper to point up the absurdity of human behavior in Miami, where despite obviously rising sea levels, “The local population is steadily increasing; land prices continue to surge; and building is progressing at a generous pace.” (See “Miami, the great world city, is drowning while the powers that be look away,” by Robin McKie, Friday 11 July 2014.)

Many Miami residents are apparently  living in a state of denial. And not just climate change denial, by the look of it. To deny climate change is, after all, primarily to deny that humans are the cause of changes in the environment.

No, in the case, we seem to be witnessing literal denial of what’s in front of people’s eyes: walls of seawater, increasingly regular flooding, shopkeepers who “keep plastic bags and rubber bands handy to wrap around their feet when they have to get to their cars through rising waters,” and homeowners who “have found that ground-floor spaces in garages are no longer safe to keep their cars.”

Yes, they’re building sea walls and other measures to hold back the waters, but scientists believe these measures will offer only short-term relief. And it’s not just a problem of occasional high waves. As McKie describes, Miami is “is built on a dome of porous limestone which is soaking up the rising seawater, slowly filling up the city’s foundations and then bubbling up through drains and pipes. Sewage is being forced upwards and fresh water polluted.”  Meanwhile, the cost of the stopgap measures is in the billions.

Just for fun, I took a look at some ads for Miami real estate, wondering whether the homes on higher ground would at least mention that fact — as would seem doubly important, given that the local architectural style seems to be one story, even if it’s a one-story sprawling mansion.

Nope, the real estate agents who write these ads have chosen to not breathe a word about threats from the elements. You might think the beach in Miami didn’t even exist. Most ads talk about local shopping, schools, and golf courses. Oh, but there was one that advertised, “All windows and doors hurricane proof. ”  So, at least one home seller in Miami is getting real! And getting out of town, I’ll bet.

Are You Ready for the World to Know Your House Is “Coming Soon?”

beesThe real estate world is buzzing with the news that the website Zillow is introducing a “coming soon” feature for houses advertised for sale. The traditional MLS doesn’t have such a feature (not yet, anyway). It will be open only to real estate agents who pay to advertise with Zillow. (Sorry, FSBOs, that leaves you out.)

So, up to 30 days before a house is actually available for sale, some sellers will be able to tell the world to start salivating over it.

My first thought is that this is like telling your party guests to wait on the front porch for an hour or two before you open the door. No longer do you have privacy when making those last cleanups (or even repairs), ripping out your weeds and feeble attempts at landscaping and replacing them with blooming flowers, or even putting up a fresh coat of paint.

No, the world will be watching. And if you’re in a hot market, believe me, they’ll be watching. Expect to see a procession of cars going by your house, cameras held out the window. (And those are the visitors who are sufficiently polite to stay off the property itself.)

Of course, my grumbling isn’t going to make this feature go away. If anything, it’s likely to become the norm. So, home sellers, get ready to be ready before you’re actually, you know, ready.

 

Luxury Homes Will Soon Be Less of a Bargain

House cornerOne of the fun things for buyers during the depressed real estate market was seeing almost unbelievably low prices on luxury homes.  (Who wanted to buy a castle with everyone in fear of a job loss or investment tumble next week?) Even if we couldn’t actually afford a mansion in the hills, we could peruse the listings without feeling like such a fantasy was completely and utterly crazy.

Unfortunately, buying a luxury home is swiftly returning to the realm of never-never land for the average buyer. According to the April, 2014 edition of Money magazine (“The sunny outlook for housing in upscale neighborhoods“), sales volume for expensive houses is on the upswing, the time it takes to sell is on the downswing in many parts of the U.S., and these factors will soon add up to price increases for high-end homes.

Sigh. You might console yourself by remembering that, even if you could afford the purchase price on a luxury home, other costs such as insurance, repairs, and of course home security might completely break your bank. See Nolo’s article, “How Much Does Owning a Home Really Cost?” for more on that.

San Fran Home Sells for $1.405 Million Over Asking?!

Paper house attached to yellow blank price tag on blue backgroundSeriously. You read that right. That bid brought the total price of the recently sold two-bedroom, 2.5 bathroom home on Gough Street to $3.4 million

I wonder whether there’s some other bidder out there who offered a mere $1.309 million over asking, and is now kicking himself for not having gone just a little higher? (Though what’s “little” in this context is relative, with every .1 million signifying a cool $100 thousand.)

While the article discussing this house on Curbed didn’t mention it, a price hike like this is a sure sign that a bidding war took place. (Either that, or some seriously misguided buyer thought a bidding war was inevitable or had money to burn.)

How, you might ask, did the buyer decide to go quite that high? Real estate bids are traditionally confidential. This isn’t like an auction, where everyone gets to hear the other offers and then raise their own bid by a bit.

But the buyers’ agents are allowed to, and traditionally do, ask the seller’s agent how many people have indicated that they plan to submit a bid. If it’s only one or two, the savvy buyer will probably bid something over asking, but not go crazy.

In the Bay Area, however, with a tech boom and a housing shortage, it’s not uncommon to hear of ten or more prospective buyers bidding on the same house. When up against that sort of competition, with only one chance to make your offer stand out, your best bet is to put an eye-popping dollar figure on it.

If you’re new to the real estate world, let this serve as an introduction to the fact that home list prices mean almost nothing until you understand what’s happening in the market where the house is located. Wouldn’t you think that a two-bedroom home listed for over $2 million wouldn’t require anyone to bid a penny more? But that’s the Bay Area market. Yours may differ! See Nolo’s article, “Home List Price: What Is a House Worth?” for a deeper discussion of this issue.

Will a “Premiere Party” Help Sell Your Home?

mimosa iStock_000012039452XSmallThe trend-spotters at Oakland Magazine have been at work, with a recent article titled, “To Sell a Property, They Throw a Party.”

And not just any party: It’s a “premiere party” (usually for a luxury home in an affluent neighborhood), to which the real estate agent invites hundred of neighbors and other prospects.

They might serve champagne and hors d’oeuvres (will I ever be able to spell that without looking it up?) or perhaps chocolate chip cookies. They might create an art show with work from a local artist. One agent even commissioned a bagpipe player.

The odd thing is, most of the article discussed not what benefits parties like these offer the home seller, but what they can do for the selling agents, who — in the hot, hot, and already hotter Oakland market — find they’ve got to work hard to set themselves apart and attract clients. As one agent told writer Mike Rosen-Molina, “Listing agents are looking for tools that every agent might not have and ways to convince sellers to list their home with them.”

Okay, so do such parties really help sell your home? Especially given one agent’s acknowledgment that, “Buyers will see the home anyway; anyone looking won’t miss the property.”

The answer seems to be that such parties create a “buzz.” They get people talking, and create a sense that the property itself is an object of desire. And, while no agent quoted in the article came out and said this, buzz like this can lead to every seller’s dream: Offers over asking price, and possibly a bidding war.

 

 

They’re Tweeting About This House!

IMG_4987Well, it looks like a charming young couple was intrigued by the open house, and is moving into our “cottage.”

(When selling a house with less-than-impressive square footage, it’s important to use appealing words like “cottage” rather than “matchbox” or, God forbid, “birdhouse.”)

Like any smart homebuyers, they’ve done their looking around (two other places within sight of my kitchen window were visited and rejected) and conducted a thorough home inspection.

I believe they were then convinced by the following home features:

  • Room for a growing family. (The Oak Titmouse lays from three to nine eggs.)
  • Solid construction. This one was built by Berkeley Rustic Birdhouses, known for complying with the International Standards of Ornithology.
  • Security. Try as you might, Mr. Squirrel, you’re not getting your head in that front door.
  • Quiet neighbors. (Well, the neighbor’s dog does have it in for the postal carrier. Let’s say “relatively quiet.”)
  • Sunny location. But not too sunny.
  • Cleanliness. As is recommended, I removed the old nest last year and cleaned the inside with boiling water. Every responsible home seller should behave similarly. (With perhaps a little less of the boiling water.)
  • Proximity of restaurants, bars, and other amenities. The water in the nearby birdbath gets changed daily, and there’s an all-you-can-eat buffet of seeds on a nearby ledge. How’s that for a Walk Score?

I do notice, however, as the moving in progresses, that they occasionally have trouble getting their furniture in the front door. Next time I trust they’ll wise up and carry a tape measure.

 

 

There WILL Be “Yes” Answers on the Disclosure Form

iStock_000000433950XSmallHas an entirely clean seller’s disclosure form — free of reports of home defects, environmental hazards, local nuisances, and so on — ever been accurately presented in a real estate transaction?

Notice that I said, “accurately.” We’re not talking about how a few misguided sellers, filling out the standard form that is required in residential home sales transaction in most states in the U.S., may think, “This place will sell better if I pretend it’s perfect.” I don’t think anyone is keeping statistics on how often that happens.

According to a recent column by real estate agents Tarpoff and Talbert (who write for various California local papers), what happens in a normal transaction is that, “There are always ‘yes’ answers” to questions on the disclosure forms about whether the home has various issues or defects.

That’s not a surprise to anyone familiar with the real estate world. A home starts deteriorating the minute someone sets foot in it, or even without the presence of humans. A seller would have to be utterly oblivious to overlook the cracked window, the door that doesn’t close, the in-law unit that the previous seller didn’t pull a permit for, and so on. Any seller with any sense of responsibility, or who is working with a real estate agent who explains that transactions go better (and are less likely to lead to later lawsuits) if sellers are forthcoming with the truth, will come up with numerous items worthy of disclosure.

But to anyone new to the process of buying or selling a home, it’s worth reflecting on the importance of (if you’re a seller) filling out the disclosure form accurately and completely and (if you’re a buyer) reading the form carefully, asking follow-up questions, and not panicking when you see some of those inevitable “yes” answers.

The disclosure form is, after all, an outgrowth of a shift in various states’ laws away from the old doctrine of “caveat emptor,” or buyer beware. That doctrine put the onus on buyers to investigate the home’s condition, and not to come crying back to the seller if it turned out that the basement floods every winter. (Just as it had for the last 35 years.)

That doctrine may have offered seeming simplicity, but what a mess for buyers trying to accurately gauge the value of the home they were buying. Not to mention the fact that neither buyers and sellers could be sure they wouldn’t meet again in a courtroom, with buyers alleging that sellers had gone beyond the confines of the doctrine and committed outright fraud.

Today’s laws and forms requiring seller disclosures make for a far better chance that the home-sale transaction will wrap up with everyone feeling well-informed and relatively unworried about later disputes. And now’s a good time to mention that Nolo’s website has extensive online information about the seller disclosure laws in various U.S. states.

Hide Prescription Drugs Before the Open House!

pillsAll of our Nolo real estate products warn home sellers of the perils of leaving anything valuable in an accessible place during your open house. However, a recent headline from Washington State, “Real estate agent helps catch prescription drug thief posing as potential home buyer,” reminds us how relevant this advice remains.

The thief in question was ignoring cash, jewelry, and other valuables, and heading straight for the medicine cabinet in search of prescription narcotics.

When you think about how many people have some Vicodin left over from a past surgery — pills that they’ve probably forgotten are even there — you can see why a thief would figure this was a good bet, and might even reasonably hope that the homeowners wouldn’t notice the loss.

The sale of prescription drugs is apparently a big enough deal for the FBI to dedicate a separate reporting line to it: 877-RxAbuse (877-792-2873).

What can you do to avoid contributing to this trade? Clear out your medicine cabinets of all but the low-cost basics before an open house, and put any prescription meds in a locked area or even the trunk of your car. (Prevention is a far better approach than being suspicious of every house visitor who asks to use your bathroom!)