ASBESTOS – Buyer Beware!!

[photopress:inspectors.jpg,thumb,alignright]I am just beside myself on the topic of home inspectors and asbestos. I don’t care how many inspectors want to tell me why inspectors aren’t “obligated” to call asbestos in the inspection, I will still keep saying: “You have GOT to be KIDDING me!!

I’ve seen more asbestos in homes in the Seattle area than in my entire career to date around the Country.

“Well Ardell, I know we both “think” that’s asbestos were looking at there, but we really can’t say it’s asbestos unless we send it out to a lab and have it tested. So we just have this disclaimer in our contract saying we are not responsible for calling asbestos in the inspection…and that is sufficient for US” US being the home inspectors!!

Yesterday I literally took a razor tool from the inspector and cut open some paneling held together by duct tape in a basement and forced an inspector to look behind it before he wrote “inaccessible area” on the report! I said if you don’t lend me something to do this with, I’m going to use my bare hands!

How come I can get 10 average Joe’s to stand around the asbestos wrapped pipes, who will all say “Yep, dats asbestis alright”, but I can’t get one inspector to note asbestos in a home inspection report?

Oh, and here’s the agent’s lovely comment (I represent the seller and she represents the buyer) “Not my problem. The buyer chose their inspector and if the inspector doesn’t tell him what he needs to know…that’s not my problem, is it?”

In PA inspectors included “testing for radon” by setting canisters in the house and sending them to the lab. They couldn’t see radon or taste it or smell it, but they didn’t put a disclaimer in their contract saying “Duh, Don’t Know”.

Here’s a clue, Risk Reduction equals every buyer KNOWING WHAT the heck they are buying!!, not 25 disclaimer and disclosure forms covering everyone’s butts in the industry! And they have the nerve to tell me that they don’t want me at the inspection because I make them look bad…Oh WELL!!

And if you stick that pointy metal thing and chunk away at the mortar between the bricks of my seller’s house one more time in some silly act of macho bravado, I’m going to take it out of your and and stick it where you don’t want it stuck.

Some days I want to be a waitress…

To Stephane, this entire post should be in bold AND all caps! I am heeding your advice. But if you tell me to stop using !!exclamation points!!, we’ll have to agree to disagree 🙂

Trying to Force the Seller’s Hand

[photopress:hand.jpg,thumb,alignright] If you are playing the game of “trying to force the seller’s hand”, you have to know how to play it right. It is not easy to force a seller to…anything. Regardless of who is right and who is wrong, if you can say there is a right and wrong to the situation, reality is what it is. If you want the house, and you are not the only one who wants the house, you have to stay “in PLAY”.

Two buyers have been “circling the wagon” for weeks. Offers have been presented to the seller, counters have gone back to the buyers. Back and forth, back and forth. Buyer Agent saying, “Did the seller look at the comps I gave you showing why the seller should?” “Well of course the seller has to fix this and fix that, remove this and add that”. Meanwhile the seller is just going about their business, day in and day out, waiting for the buyers to agree to their price and conditions.

Then along comes buyer number three. Buyer number one and buyer number two, who have had offers back and forth, know what the seller wants. So it seems only fair to tell buyer number three what the seller wants. Meanwhile buyer number two wants to submit an offer again, third time, for something less than they know the seller wants. I say, well you have two choices. You can bring an offer meeting the seller’s counter to you of a couple of weeks ago and beat buyer number three to the punch, OR you can hang back and wait to see what buyer number three does.

Buyer number two’s agent doesn’t want to bring an offer matching what the seller wants NOR wait until buyer number three makes their move on Saturday, so she brings an offer that she knows is LESS than what the seller wants and Tries To Force the Seller’s Hand”, by giving a very short response time. Bad move. You bring the seller an unacceptable offer and put a response time that is hours before buyer number three is scheduled to see the house. What happens. By trying to force the seller’s hand and make him respond before buyer number three sees the house, you are left out in the cold. Your offer is expired before the seller is going to respond. Buyer number three’s offer is accepted and your offer is a non-offer, because it expired before the seller was willing to look at it.

If you tell the seller they only have x amount of time to respond, and that timeframe does not match the seller’s schedule for some reason, your offer becomes invalid. Agent says “You COULD HAVE countered and just changed the date…” But why? Why would the seller risk countering an expired offer, when they have an acceptable and valid offer on the table? (agent’s answer is because she has worked long and hard and deserves…anytime the agent’s answer includes the agent in the picture…wrong answer – wrong thinking.)

If you are trying to force the seller’s hand by giving him a short wick, and putting a response time that is less than acceptable, you have to revise your offer and extend that date the second your response time passes. You have to keep your offer “in play”. By trying to force the seller’s hand…you can put yourself out of the game altogether, if you do not keep your dates running forward by submitting a new response time.

Buyers often think that the seller MUST respond, MUST counter. Not the case. No answer IS an answer. If you have no answer by the time your offer time expires…you have your answer. The answer is NO…try again.

When I was a teenager, my parents often didn’t want me to go to parties. So when I asked to go to a party, I didn’t demand an answer on the spot. I made my case for why I thought they should say yes, and then I left the room to give them time to talk it over and think about it. The fast answer was often no…I went to lots of parties 🙂

When you give the seller what he wants, you can try to demand a quick response. When you want the house for less than acceptable terms, you have to be willing to hang back, and you have to be willing to lose it, if the seller doesn’t meet your terms. You can’t bang your fist on the table and demand that you get the house for less. Presenting an unacceptable offer, and demanding a quick response, is like a kid throwing a tantrum…rarely works out for the best. And almost never works out for the best, when you know there are other interested buyers.

Time to get into 1st backup position.

How to List a Homicide-challenged Home?

Between Galen scaring us with stories of AOL mischief, and both the WSJ and USA Today treating us to stories of crime-infested houses (you can’t just “repaint” over memories), I’m thinking there is something fishy in the air and I probably shouldn’t be writing any blog posts today.

However, I can’t help but wonder: What factors do you use in choosing your client when they are dead?

From the WSJ:

The red-brick mansion that just went up for sale in Greenwich, Conn., has about everything a buyer could want. Set on 2.1 lush acres on tree-lined Dairy Road, it has four bedrooms, four bathrooms, two fireplaces and a pool. Its $5.2 million asking price is, by Greenwich standards, appealing.

The home has another distinctive feature. The basement is where real-estate developer Andrew Kissel — who had been renting the home for $15,000 per month — was found bound, gagged and stabbed to death in April. “To say the broker will need all the luck he can get finding a buyer is an understatement,” says Greenwich broker Chris Fountain, who isn’t connected with the property’s sale.

From USA Today (via Zilow):

Almost 10 years after the body of 6-year-old JonBenét Ramsey was found in the basement of her Boulder, Colo., home, the Tudor-style house at 749 15th St. is on the market again.

“It’s stigmatized. It’s always been stigmatized,” says Joel Ripmaster, president of Colorado Landmark Realtors. Ripmaster has represented the last four owners of the property, all who purchased or sold the house at below-market value since JonBenét’s slaying in 1996.

Note: I went ahead and published this article today because it was brought to my attention that RCG does not do well in “real estate murder”-related search queries 😉

My Favorite Real Estate Story

imagesA seller receives 23 offers on his property. All of the buyer agents want to present their offers in person and introduce the buyers to the seller.

There are 23 buyer agents and their buyer clients seated on folding chairs in a big room. Picture 50 or more people sitting on folding chairs with Offers to Purchase in their hands.

In a little conference room sits a seller and the seller’s agent preparing to review these 23 offers. The seller is not happy. All he wants is one, good and acceptable offer. He is overwhelmed by the prospect of having to review 23 offers and send 22 people home “empty handed”.

One by one the buyers and their agents “present their offer to the seller”. After about 8 of these “presentations”, the seller is totally confused and beside himself, as all of the offers seem about the same to him.

Along comes buyer number 9 and his agent. The savvy buyer’s agent can sense that the seller is completely fried and wants this over with. So he makes the seller an offer he can’t refuse, and the seller says to his agent “I’m going to take this one, get everyone else out of here.”

So the totally embarrassed seller’s agent goes out to the big room of many people in folding chairs and announces that the seller is DONE! He thanks them all for coming, but the seller is going to take offer #9 and they should all leave now.

AND THEN, AND THEN….ALONG COMES HANNAH!!! She jumps up from her chair, runs past the seller’s agent, kicks open the door to the little conference room, points at the buyer and buyer’s agent in the room and says “Whatever these guys have offered…we’ll go $100,000 over THAT!!

The seller’s eyes get as big as saucers. He realizes that it may be in his best interest to let everyone compete with one another and so he tells his agent to proceed as originally planned and “the game” proceeds until all 23 agents and their buyers have given their “Final and Best” offer.

I just love the picture in my mind of Hannah jumping from her chair, TACKLING THE LISTING AGENT, kicking down the door and refusing to be eradicated! I wonder why no one has ever made a movie of her valiant move! Her client must have been stunned, the whole room must have gasped in awe! I totally LOVE this story.

End result: Hannah’s client did NOT get the house. In fact Buyer #9 did, in the end, get the house for $400,000 more than his first acceptable offer. Buyer #9 got the house AND he sued Hannah’s company for making him have to pay $400,000 more for the house, as Hannah and Buyer #9’s agent worked for the same company. The suit was settled out of court and we now have “the Hannah clause” in all Buyer Agency contracts stating that the buyer is aware that the company may have other buyers under contract competing for the same house.

So Hannah’s efforts have become legendary…but only in the archives of lawyers and new stock clauses.

Hannah deserves much better…she at least deserves this article on a blog. So here’s to you Hannah! You are my idol!

Title Insurance: Kickbacks, Competition & Pricing

Editor’s Note: Tim Kane owns and manages (with his wife Lynlee) Legacy Escrow, a local escrow company and has been a regular fixture of the Seattle blogosphere for the past year or so… Not only does he run his own blog, the closing table, but he has contributed to numerous threads on RCG under the names of Chief Errand Boy, S-Crow, and Tim. I’m definitely excited to bring him on as a regular contributor!

“I have a special interest in Ethics in Business, particularly in the industry of real estate. A good many of future posts and comments will address ethics, much of which is drawn upon the experiences our small escrow office encounters in working with our clients, loan officers, title insurance companies, and Realtors every day.

I FEEL LIKE A DOG!!

[photopress:collie.gif,thumb,alignright]I feel like a dog this week. Four times this week I went into people’s homes to tell them what they needed to do to get top dollar for their home. The last two times I turned people’s homes upside down and sold them quickly for top dollar, I had no problem at all. I told them to give me the key to their home. Told them to go to work. And when they came home they were amazed at the difference and were happy, happy, happy!

But this week…I had four experiences that just make me feel like a dog!

Generally, when I stage an occupied home before putting it on the market, there is little to no cost at all. So I have no “bad news” that hurts them financially. I often do most of the work myself as part of the commission, so there’s no added expense and people are happy. So why was this week so different?

Mainly it was because of the people. The last two times the owners really wanted to move. This week, everyone who was selling “needed” to sell and “needed” to move, for reasons beyond their control. When someone really wants to move, they have no trouble when I move their stuff around. This week, as I pulled things off of the wall that people bought from “home interiors” back in 1983, and stacked all the chatchkis in a big pile, I could feel the pain of the memories coming down with the chatckis.

Tonight it was Roosters. Roosters, roosters everywhere I turned. Two days ago it was 3D Cherubs peeking at me from every wall, most of them with gold filigree hanging from their chinny, chin chins. The toughest one of all was a dear friend of mine, a guy, and I swear he had tears in his eyes when I told him the “schocking blue” walls had to go!! He had just painted it that color to get it ready for market.

This is why most times I just have to go in and take it all down myself. I have an “eye” for getting the home just right and I’m not attached to the chatchkis like they are. It hurts them when they come down, but they don’t put them back up after I take them down and it hurts them more if they take them down themselves. It hurts them much less if they just leave and let me do it, and they come home to the “new look”.

“Detaching” from the home is a very big part of of the home selling process. The closer they are to detaching from the home, by the time they get an offer, the more likely they will get a higher price and handle the negotiating with less emotional charge.

I would never put someone through this if it didn’t make them more money. And sometimes I think I feel worse than they do when I’m done. And I know I’m not doing them any favors if I allow them to “leave money on the table” by “being nice”, and letting the house go “live” into the mls, before it is ready to be shown.

Representing “people” rarely means telling them what they want to hear, or stroking their egos. Most often it means having the guts to tell them what they need to hear, and rolling up my sleeves and just doing, what they can’t bring themselves to do.

I know in my heart that I’m doing the right thing, and helping them get the most money they can for their home. But I still feel like a dog.

You Have to Wonder….

And some ask why the government is so fixated on organized real estate. It is because of this mindset and the audacity to shout it out to the world…

I tactfully tell my sellers if I reduce my commission to 4 percent or 5 percent, the buyer’s agents will show my listings last only after showing the full-commission listings. Whether it’s ethical or not, that’s what happens.

Full article on Inman (subscription required after a day)

-Russ

What is a .25 bathroom?

[photopress:9t.jpg,thumb,alignright]Nine times out of ten when someone asks me this question, the house does not actually have a .25 bath. The mls here in the Seattle area requires us to count bathrooms in a specific, and somewhat outdated manner, causing many homes to appear to have a .25 bath that do not. 

[photopress:5t.jpg,thumb,alignright]I will shortly be listing a two bedroom condo in Kirkland at the north end of Lake Washington for about $200,000 that has 1.25 baths. While many homes show 2.25 baths or 3.25 baths, these homes do not actually have a .25 bath at all. A .25 “bath” is one extra fixture, usually not housed in a separate room at all. The 1.25 bath condo I will be listing has a sink and vanity area located in the master bedroom between the full bath (with jacuzzi) and the walk in closet. You enter this dressing area from inside the master bedroom. This is the best example of a real .25 bath. It is an area inside the master bedroom, just outside the full bathroom, where one can shave or put on their make up while the other is in the bathroom taking a shower.

Most homes that show 2.25 baths actually have 3 “bathrooms” involved that total this configuration. The most common setup is one “full bath” plus one “3/4 bath” plus one “1/2” bath, that totals 1 + .75 + .50 = 2.25 total baths. The 3/4 bath is most often attached to the master bedroom and has a shower stall and no tub, making it a toilet + sink + shower stall = 3/4 bath (3 fixtures – no tub). The full bath is usually located off the main hall and is used by the persons in the “other” bedrooms and has a tub (with shower in it) + toilet + sink equalling one “full” bath. A 1 3/4 bath home would normally be a rambler style on a single level, with the full hall bath doubling as the “guest bath”.

A 2.25 bath home would normally be a two story home with a 3/4 in the master, a full bath in the hall and a half bath on the main level, with a toilet and a sink only, so that one does not have to go up to the second floor to go to the bathroom. On the East Coast this is called a “powder room” from the old days when women pretended to be “powdering their nose” as opposed to relieving themselves 🙂 A 3.25 bath home would be similar, but might have four bedrooms rather than 3 with both a hall bath and a “Jack and Jill bath”. A “Jack and Jill bath” is a term used to describe a bathroom set between two bedrooms that can be accessed from either bedroom, but not from the hallway. I had one once, though in my case it would have been more aptly called a “Jill and Jill bath”, but I do not recommend it. The occupant of the bathroom enters from their bedroom and locks the door to the other bedroom from inside the bathroom while bathing. They are supposed to remember to unlock that door when they leave, but often don’t, causing the occupant of the other bedroom to be locked out from their side of the bathroom.

Another example of a .25 bath seen in some very old homes with basements, is a “below grade” toilet only, usually in the basement and sometimes called a “service toilet”. It is a stand alone toilet or a toilet in the washer and dryer area near the “utility sink”. It is often just sitting out in the open in an unfinished basement area used by a guy who is working on his car or in his workshop area in the basement, saving him a trip up the steps to the main bath.

I say this system is “antiquated” because housing trends have expanded, but the mls method of counting fixtures has not expanded with the times. For example, my master bathroom has a separate enclosure for the toilet area, a jacuzzi tub, two separate and distinct sink areas, and a large two headed shower stall. Technically that equals six “pieces” 2 sinks plus 2 showers plus jacuzzi tub plus toilet equals 6. But the mls makes no distinction between that type of elaborate master bath and a “full” bath. That is why you will often see the term “five piece bath” in the marketing remarks of a home, meaning there is a single head shower stall and a separate tub and double sinks. The “uitility sink” located in the washer and dryer area is never counted as a “fixture” when totalling up the bathroom fixture count.

So when you see a home listed as having 2.25 baths or 3.25 baths, stop looking for the .25 bath. It generally does not exist inside that home. Instead, expect to have a 3/4 bath with no tub in the master and a .50 bath on the main level with a toilet and sink only.

To Promote or Not to Promote…

When I posted an ad for our listing masking as an advice column yesterday, I got more than a few emails from people who apparently weren’t very happy that I was linking to Redfin.

I had a reason to link to the detail page on Redfin as oppose to our own. A little birdie whispered to me that the “most viewed” home on their site for Thursday would not only be featured in emails and on their blog on Friday, but that home would also be eligible to host the first “Redfin Showing” on Saturday. I’m a sucker for extra publicity for my home and was happy to cooperate! So if you’re in the neighborhood, feel free to stop by our home between 2pm and 3pm on Saturday!

To the agents out there who are upset that I’m giving Redfin digital ink… Please feel free to suggest interesting ways to market my home as I’ve always been an equal opportunity promoter! 🙂