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Brain Teasers for Real Estate Professionals

Being in the Real Estate Industry has been an interesting road to say the least. We cross paths with MANY different personalities with clients and other professionals that we work with along the way during just one transaction. Other agents, loan officers, escrow officers (some deal with attorneys), home inspectors, surveyors and the list may go on and on depending on what kind of transaction it is.

Just ‘getting by' is not going to cut it in this industry and a true professional makes sure that they get into every detail, nook and cranny in every transaction. A good Realtor®, Realtor-Associate® knows that they need to follow up and keep on it for everyone involved in the transaction from beginning to the very end at closing......lest their client's best interests go down the drain.

Case A:

A Purchase Contract comes in and I have to have a good eye to pick out anything that needs correcting and in turn submit a counter offer. If there is a substantial amount of money down I make sure they submit proof of funds and I also talk to the loan officer to go over any concerns I may have.

....and I don't hear anything from the appraiser for a couple of weeks so I keep inquiring with the agent, and keep digging ....only to find out a week later that the buyer chose to go with another company. I need contact info for the company and loan officer and escrow needs the info to send the preliminary title report and lender instruction to. But....the agent ‘doesn't know' who the loan officer is. HUH?????

Case B:

I took my buyers to view a property with two houses on a one acre lot. There was an electronic lockbox with only one house key but we went ahead and viewed the main home and the surrounding land. Not bad and a good deal although it's a short sale. No problem as my buyers have time to wait so we submit the offer. Both the buyers and I want to make sure that all structures are permitted.

.....and I research and pull up permits for both of the homes, the shed and the fences. The smaller structure was built in the 50's and there was little documentation at that time so all we have is the year built and sq/ft. The buyer's are okay with it although they still want to see inside. Sellers Agent: Wait until the short sale is approved and we do our home inspection..... HUH?????

These are a couple of good examples to contemplate so.....

.....What would be the best solution for each?

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Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs, she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com

Supporting Hawaii Local Businesses!

Posted by Celeste "SALLY" Cheeseman HAWAII Relocations & Real Estate on 08/18/2009 03:56 PM

Comments (34)

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34 Comments on Brain Teasers for Real Estate Professionals

AUG

Sally, Sally, Sally. I warn my buyers right up front that they be surprised how detailed we will be about every word of the contract, every inspection, every document, every act the loan officer takes, etc.

I'm quite insane when it gets to crossing the T's and dotting the I's. My buyers love it. Other agents - - - not so much. Lenders - - - depends.

Fact is, we leave no stone unturned.

Case A. I would have to notice the agent and their broker in writing (fax) that it has come to your attention that . . . . Kindly submit a new lender's letter to keep this contract is full force and effect. If you don't get it in 24 hours, I would have the seller put the property back on market and NOTICE the buyer through their agent that unless proof of financing ability is received in 24 hours, the contract will be null and void.

Case B. If the county doesn't have the permit for the second home, I would include an addendum that the seller apply for a "reinspection for permit" by the county. Otherwise, the second structure my have to be removed. If the lot isn't permitted for a second deeded structure, it just may have to go and the new buyer wouldn't want to pay for it.

Complicated cases just require some experience and imagination.

Love the photo.

"The buyer's are okay with it although they still want to see inside. Wait until the short sale is approved and we do our home inspection???? HUH?????

No!!!!!

I sold a house earlier this year, not a short sale but the couple who had it listed were "Short Sale Experts" and it was priced like a short sale and obviously listing agent was too busy to get into details like a key to the detached garage. Two showings with no key to the garage. We were not able to get into the detached garage on the property inspection. The agent insisted either that the house key would get us in or that the key was there in a drawer or a cabinet, finally listing agent got the seller to meet the buyer and I at the property a few days later. There'd never been a key to get any buyers into the 2 car garage. 400 plus days on the market...

Sally you make great points in both cases about being detail oriented and following up with the right people.

I just dealt with a similar situation recently.

Sally, we do things a bit differently here as attorneys write up contracts, however, I would be all over the agent for that information. If they were unable to comply, back on the market it would go. Having said that, there are times when we just loose control of our buyers. They do things behind our backs. So, even if I thought the agent could care less, I would put it in a way to allow them to step right up to the plate. Something like, sympathize, (muttering under your breath), and give them a way out without looking like a jerk, and get the info you need. Or else, byebye. I call it, taking the high road.

Then you get to come here and vent, LOL.

Scenario #2, I would have had a hard time submitting an offer without seeing the other house, but if my clients insisted, I would have added a clause that stated the offer was contingent upon a satisfactory inspection by the buyers and inspector by such and such a date. Since it is a done deal already, and I am not familiar with your RE customs and laws, I have no clue. Good luck with that.

And hindsight is always better.

Good lessons on how not to handle a real estate transaction. Our MLS rules prohibit listings that can't be shown within a reasonable period of time.

Sally, I wish I could answer but I'll stay parked...you're got some wonderful answers already and I expect a bunch more!

Sally,

A: I would write a letter to the agent requesting this information. I would then forward this over to both attorneys and let the seller's attorney decide next steps, maybe putting out a letter of his/her own. But be a pain with the agent until you can get it.

B: Ask for any paperwork the owners have, any other paperwork the town has, or anything the attorney for the owner has on this. Be careful, your buyers may think they have time but a short sale can be hell and patience erodes as time passes and answers do too. Also hound the agent to make sure the short sale has gotten approved, the bankis sending a person out to do the BPO, etc.

Good luck.

A short sale does involve lots of critical thinking and detail stuff-kind of like a cryptogram or brain teaser!

Lenn: I just know I learned from you (in a past life lol) and that's why I am just like you in my own business. I would classify myself "insane" but think a better phrase would be "severely organized and detailed" haha! Case A: done...rec'd it earlier today :) Case B: In this case...the 1954 structure came first and grandfathered into our 'system'....majority of homes before 1970's have incorrect info and have slowly been corrected .....we just had one listing changed two weeks ago. Tax records showed 5 bdrm 1.5 bath when in fact it was and always has been a 3 bdrm 2 bath.

Lenn: :) :) I copied you and redid it for this year :) The last one was Christmas of 2007.

Hi Sally, thought I would drop over to see you....cute new photo. I hardly knew it was you. Real estate is certainly a "thinking" person's job - not for the faint of heart. ;-)

Maureen: That was the answer I got from the other agent.....so I said HUH? Needless to say ...we WANT IN asap. In the meantime, they're still 'looking'. :)

Gary: Have to be.

Neal: They keep popping up all over the place....these situations :) :)

Andrea: Good answers!

Rob: Exactly...and what not to do is let these slide. :)

Hi Sally -- Details, details, it can make or break someone hopes, dreams and financial reality. Great post.

With all the recent changes in the industry many will be "forced" to be digging deep into the details. This is also another reason how experience can't be shorted ... sometimes the "Details" are in the experiences.

I must be the slow one in the group, because I'm a little bit lost in part of the second example. Was it the sellers who said to wait until they had approval on the short sale, and they do their home inspection? Why are the sellers doing a home inspecation before listing, or during the listing? Is that common in HI? Our buyers usually pay for a home inspection, and it's a contingency in the purchase agreement. Did I understand that part correctly?

You're answering too fast >.< I already re-read it. I got confused by the fact that the seller's agent made the statement for your buyers. That agent has no right to decide how the buyer's and the buyer's agent will do anything. I really have to get off the "way too literal" kick. I'm making myself crazy! I keep getting stuck on certain words or phrases. And it's worse when it's a verbal conversation! ... Don't ask. I have no idea how or why by brain suddenly decided to start getting stuck on certain things. *sigh*

Chris: It sure can....great point.

Steve: You're right about that. Coming into the industry just to make a buck is a far cry from doing the 'job' right.

Lisa: HUH?

Lisa: Went back and put sellers agent. In the meantime, where'd you come up with all of that? And no....you didn't understand....maybe you ought to run through that one again. :)

Carole: This is fun....Q and A :)

Bev/Bob: You must use attorneys :) We go through escrow....and you pretty much got it on the first... on the second.... good ideas and am sure many would follow this path as well :)

Melissa: I believe every transaction has critical thinking and details to be had :)

Hey Teri! You're right about that....I'm sure we all worked hard before...but now is twice as hard :)

You have a home that is going short sale and the listing agent won't let you in until the short sale is approved and has a home inspection... What's up here. Do they really plan to sell this home ? Is it Marley on the market to look like it is for sale ?

AUG

Hi Sally - In case A, or any case like that, I would simply send a notice to perform and tell them what is needed to keep the transaction alive. In California, they must respond quickly or lose their deposit.

In case B they are asking your client to buy a grab bag. What are they trying to hide? Is there something horrible to discover there? That's nonsense.

Sally:

Case A! What happened to "time is of the essence." Have they missed any financing deadlines?

Case B: I'd get my buyer into that second house. Why wait any longer. The listing agent wants to keep you around so she can work the short sale. If you see it now, your buyer may lose interest and then she has to start all over again to find another buyer. You are being used.

Sally, You are right about the devil being in the details...

Helping you live your American dream...

It's always the details that take the time. Some agents really aren't interested in getting their listings sold.

Interesting discussion:

I got a contract the other day on my short sale listing. There were so many blanks I sent it back. What? I would never submit an offer like that to a Realtor, much less my sellers or a BANK.

Up here we don't do inspections until AFTER the short sale is approved. The buyers request it and we have no problem with it. So I guess it is different in every area.

Sally, I have never had either of these situations come up but I am glad that you posted them. One can always learn and there's nothing better than being forearmed!

Short sales are subject to lender approval, so from an inspection time line you technically don't have an accepted contract without contingency until that is final. Also, all short sales are as is, so no repairs will be done even though you can subject to inspection. Also short sales have to be occupanied by a preapproval, not a prequalification, so a buyer has to go through the complete process so there is a much smaller liklihood that they will switch. I also as a short sale listor get all the information about who the buyer is dealing with so we can mail out updates to everyone.

Sally you are absolutely right in checking all the details. I've seen a lot of contracts come up with issues.

Excellent and very important examples of what a true professional like yourself brings to the table. The new photo is wonderful.

Missy...neither do we.... :)

Joe: Under our C-67 (Special Terms) I added in that all time lines start AFTER lender approval. My buyer still wants to "view" the other home as we did not have access at time of showing appt. Buyer is also aware that there are no repairs BUT still wants to view.

Bottom line here is that details are IMPORTANT. No matter what our opinions we think in the best interests of our clients and follow our state, local and board/association laws and guidelines. We can give plenty of examples ...but it's also going to depend on the terms in the contract and if we are paying attention to detai to put those terms in! No matter if representing the buyer or seller the terms, details are important......and as Lenn said...

.....I'm quite insane when it gets to crossing the T's and dotting the I's. My buyers love it. Other agents - - - not so much. Lenders - - - depends.

Sally - reading Lenn's and your answer today you certainly crossed your Ts and dotted your Is. I don't think it is imagination as Lenn expressed, it is purely experience and common sense.

BTW I do like your picture and I was inspired to write a blog after seeing Lenn's photo. Can this have a domino effect :)

Petra: Oh...but if I know Lenn...her 'imagination' means stretching beyond the just every day to do's. It's stretching the mind to get down and dirty to what we need to do to satisfy our need to have everything done..... right.

Thanks....I was inspired by Lenn's photo too :)

Sally - I guess it goes hand in hand with imagination - never thought of it this way. Thanks for enlightening me :)

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