A STEP-BY-STEP CHRONOLOGY OF A HOME SALE
Early in February, I was sitting at my computer, probably writing an Active Rain comment, when the phone rang.
Much of an agent's work these days is on the computer 
The computer is our friend.
It was about Noon on Monday when I received a call from a quiet spoken gentleman who said these magic words. "Hi, my name is John and I'm looking for a buyer's agent to help me find a home."
All words a dedicated Buyers Agent loves to hear. In fact, this gentleman said three important things that made his call unique these days. Maryland permits all agents to represent buyers as their agent. However, to represent a home buyer, the agent must have a WRITTEN agency agreement in order to
The magic words? "my name is John", "I'm looking for a Buyer's Agent", "help me find a home"
With the empowerment of the Internet, too often a caller will simply want information about a home, a neighborhood or public schools in their area of search. The have decided to, "do their own research" or "find the home and then I'll find an agent". Buyers want multiple photos of the exterior and interior of a home before they will even consider taking the time to actually tour the home. They also want to know more than most agent are willing or able to tell callers without establishing a relationship. In fact, since many buyers want to narrow the number of homes that they will tour, they want VERY specific information before deciding to meet with an agent to actually SEE a home for sale. Some of the questions are the questions we used to hear when a buyer was in the last stages of selecting the home on which he would make an offer. The list is long but the most asked questions or requests for more information are:
"How long has this home been on the market?"
"How old is the roof?"
"Why are the owners selling?"
"Can you send me a plat"?
"Is the lot level or is it hilly?"
"What are the public schools for this house and where to they rank?"
"Send me all of the room measurements."
"Send me some information about the people living in the homes next door?"
Home buyers often expect an agent that they find on the Internet to get answers to questions like the above without even meeting the agent. I'm not willing to do that kind of research unless I know that a buyer wants MY SERVICES and not just information.
John had actually spoken with another agent a couple of weeks before but when the agent, who worked for a listing company, required that John sign a document agreeing to permitting the agent to work as a Dual Agent, which he wouldn't do, he searched for another agent and found me. Maryland permits all agents, through their broker, to represent buyers as their agent. However, to represent a home buyer, the agent must have a WRITTEN agency agreement in order to: Evaluate properties for a buyer, negotiate for a buyer, and prepare contracts.
HOWEVER, if the agent may show listings of his own broker, the agent MUST have a signed agreement from the buyer agreeing to DUAL AGENCY. THAT is what John had declined to sign and THAT is what sent him to the Internet to find a Buyers Agent. THIS BUYER WANTED A BUYERS AGENT. He was doing what Buyers Agents wish all home buyers would do. John decided to shop on the Internet for a Buyers Agent.
He searched the Internet in Google for "buyers agent montgomery county" and found the following result #5 on page 1 of the search result.
Results 1 - 10 of about 1,160,000 for buyers agent montgomery county. (0.11 seconds)
Homefinders.com - Real Estate Brokerage - Germantown, Maryland
Based in Montgomery County in Maryland and Loudoun County in Northern
Virginia, ... Specializing in Buyers Agency, Homefinders.com is a single agent ...
activerain.com/lennharley - 20k - Cached - Similar pages
THAT is how and where this wonderful buyer found me. So, the home buying adventure began. Fortunately, John did not ask a lot of questions about homes listed for sale. He didn't want to talk about homes for sale. John wanted to SEE homes for sale. My cup runneth over.
DAY ONE - Monday: John responded positively to the routine qualifying questions that I ask all prospective buyers before agreeing to schedule a tour. In fact, he had already spoken with a mortgage broker and had determined his price range to be between qualifying limit for the type of mortgage he wanted was up to $750,000. However, when I computed the mortgage payments for several homes listed, considering taxes and insurance, it was clear that his "comfort level" was $500,000 or less. At the same time, for the area he was interested in buying, less than $400,000 was not likely. John was clearly qualified and very interested in buying soon. We made an appointment to tour some homes the following Saturday and I set about getting prepared. We made an appointment to visit homes the following Saturday. I sent John several homes listed in northern Montgomery which were in his price range and appeared to fit his stated needs. He quickly selected three homes that he liked from the listing information. BUT, my work had just started.
DAY TWO - Tuesday: I researched all of the homes listed in great detail for value, condition, location, proximity to town, schools, roads, floor plan, and a few other things that would distinguish the home based on a review of the listings, tax records and knowledge of the area. So, now with a working knowledge of the listing information, I called all of the listing agents and requested the MARYLAND RESIDENTIAL PROPERTY CONDITION DISCLOSURE AND DISCLAIMER STATEMENT "Disclosure". I like to review the disclosures BEFORE previewing so that I can compare what I see to what I read in the Disclosure. I was able to get two Disclosures by fax. Unfortunately, one of them had 4 out of 18 questions unanswered. These were questions related to the heating system, standing water and electrical system. Unanswered questions on a Disclosure present two problems: Did the seller deliberately leave those questions blank, or did they neglect to complete that form?? One thing for sure, the listing agent had NOT read this important document before sending it to me. The second Disclosure was complete, but, as I found out later, quite inaccurate. The third agent said I would have to get the statement in the house because he wouldn't be able to send one to me that day. Not a problem. I really wanted the statements to give to John as we toured the homes. I sent the incomplete Disclosure to the listing agent and asked her to please have the sellers finish the form. WAS THAT IMPORTANT?? Of course, not. However, it established two things, that there was a serious buyer looking at her listing and the other was simply to put the listing agent on the defensive. Easy to do when they distribute an incomplete Disclosure which gives the buyer the right to void the contract even following settlement. Sometimes, you just have to have a little fun.
DAY THREE - Wednesday: Off to preview the three listings.
House #1: This house, a 4 level Split with 3 bedrooms and 2 full baths, was immaculate with beautiful hardwood floors, a two car garage which is rare in this price range, four finished levels, updated kitchen, bright sunny house with neutral decor. The house also had a recently installed sump pump in the unfinished area, 1/4 to 1/2 inch cracks in the foundation from the windows to the floor, numerous cracked bricks on the back left corner of the home (outside of the unfinished area) and extensive overgrown landscaping next to the house with no grade to drain rain water away from the house. The house also had a strong oil leak smell from the oil tank in the lowest level of the house.
Be prepared. Try to preview homes before showing them to a buyer.
House #2: This house, a Rambler with 3 bedrooms, 1 full bath and an unfinished basement had a recently installed fireplace with the chase in the recreation room leading up through the roof. It also had a strong oil smell from some sort of leak at oil tank in the basement. The recreation room and two car garage had been added and were not professionally finished. My later comment to John when he saw the house was that the person doing framing, drywall and trim must not have owned a carpenter's level.
House #3: This house was a large Rambler with 3 bedrooms and 2 full baths. However, one of the full baths was in the finished basement meaning no master bath.
The house was in good condition with an upgraded kitchen. However, it was very close to the road on one side and the back yard was quite small for a home on septic, meaning that the house could not be extended until public sewage disposal was run by the county.
DAY FOUR - Thursday: Visit Park and Planning to get a copy of the subdivision plats and Master Plan for that subdivision. Then sit down and review comparable SOLD information for each of the three homes to determine estimated value based on the now known condition, pluses and obvious defects. The only home in the group that I would recommend against buying unless it was at a price MUCH lower than list was the one with the recently added sump pump and questionable foundation defects. The Montgomery County addendum requires that the buyer agree that he has had an opportunity to review the Master Plan for an area when they write the offer. That's a bid difficult if they haven't. Yet, you don't have a contract without this signature. So, it's my practice, when possible to get this information for the buyer before they write.
DAY FIVE - Friday: Oops. Checking the listings this a.m. and there is a new listing in the target area. Looks interesting. So, I'm off as soon as the traffic clears out to preview another home. Nice Split Foyer in good condition. The owners are there cleaning up. The house was just listed and there are no disclosures, but the owner kindly called the listing agent who drive right over with the disclosures for me. I added the new listing to the tour for the next day. So, we had four homes to view.
Successful Buyers Agents are prepared, friendly and firm.
DAY SIX - Saturday: John and I met and the first thing we did was review and execute the Agency Disclosure and Buyer's Agency Agreement This is pursuant to Article 17 of the Real Estate License Law of Maryland.
"Buyer's Agent (by written agreement): A buyer or tenant may enter into a written contract with a real
estate agent which provides that the agent will represent the buyer or tenant in locating a property to buy
or rent. The agent is then known as the buyer's agent. That agent assists the buyer in evaluating
properties and preparing offers, and negotiates in the best interests of the buyer or tenant. The agent's
fee is paid according to the written agreement between the agent and the buyer or tenant. If you as a
buyer or tenant wish to have an agent represent you exclusively, you must enter into a written buyer
agency agreement. We also executed the Buyer's Agency Agreement so I could evaluate properties.
House #1: John really liked this property, but took into consideration the matter with the foundation and potential water problems. I wouldn't rule out the house, but advised that, if he decided to make an offer on that property, the offer would be conditioned on the SELLER providing an engineering report for the basement and foundation. I don't believe this is a home inspection matter and I see no reason why a buyer needs to pay for a home inspection to tell us what we already know, that the property would need an engineering report to know the condition of the basement and foundation.
House #2: Again, John liked the house, but was concerned about the oil smell. I told him to not be concerned about that because it was obvious and would be fixed. However, when I showed him the less than professional work on the recreation room/garage addition, he agreed that this would affect his offering price. The incomplete Disclosure didn't make him very comfortable either. It didn't disturb me, but home buyers are naturally suspicious. He said he could easily put a second full bath in the basement until I pointed out that he would probably have to "crack the slab to install the plumbing" since there was no rough-in.
House #3: Now, John really liked this house. The only thing he could think that he didn't like was that there was no master bath with the second full bath in the basement. The close proximity to the road didn't bother him. I believed it to be priced high for the lot and room layout
House #4: John didn't know this house was on the tour because he hadn't seen the new listing. However, when he saw it, being the smart fellow that he is, realized immediately that it was clearly the best house he had toured. However, also being the cautious fellow that he is, wanted to know why it was priced lower than the two other homes we had toured of about the same or less square feet and not in as good condition. I said, "John, in my opinion, THIS HOUSE IS SERIOUSLY, SERIOUSLY UNDERPRICED." Based on square feet, condition, location, amenities, etc. IMO, the house was priced at about 92% of market value. John couldn't wait to write an offer. So, we did just that. Fast forward to the next day.
DAY SEVEN - Sunday: I met the listing agent and sellers at the listing agent's office at Noon. He informed me that there was another offer coming in. Sure enough, another agent appeared a half hour later with an offer. So, I presented my offer, which, based on my valuation of the property, was a bit OVER list, with a quick settlement date, good mortgage letter, and no contingencies except financing, termite and appraisal.
The sellers signed John's contract without a comma changed. The appraisal came in 2% over contract and we are waiting for settlement this coming week.
UPDATE: The contract settled and we have a VERY happy buyer.
Get ready for settlement. 
IT JUST DOESN'T GET ANY BETTER THAN THIS FOR A HARD WORKING BUYER'S AGENT.
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