One of my specialities is working with first-time home buyers and newbie Realtors. So when my Clients are first-time home buyers WITH a newbie Realtor, I can get really excited, kind of like having a barbecued chicken pizza with a raspberry margarita and a slice of pumpkin pie.

Back in August I had just such a situation with first-time home buyers and a newbie Realtor trying to work their way through a damaged foreclosure on a 2,084-square-feet, 1962 home. The bank was selling the property "as is," so my Clients, who had been to my web site, asked me for my PREMIUM inspection, which is my second most technically exhaustive inspection, and which would cost them $849.

The inspection went well, but as with all first-time buyers and newbie Realtors, they had that look of fear on their faces and in their eyes, and needed help putting things in perspective. That's where I come in with a bedside manner that has been developed as a Realtor, roofer, landscaper, property renovator, and more. Bad things are only bad if you don't understand why they are bad and how to make them good.

This house had an old FPE electric panel (bad), an old cast iron sewer system (bad), deteriorated foundation piers (bad), a roof nearing the end of its useful life (bad), and lots of damage caused by the owners when they moved out.

Everyone kept asking me how much it would cost to replace the panel, the sewer system, etc., and I responded with my standard line: "I don't know because I don't do that type of work, and I never have Clients call me three months after the inspection to tell me how much it cost to replace or repair something, or how much the bank reduced the selling price by, or anything like that. If you would like to be the first, please give me a call."

I also tell them that in cases like foreclosures that are being sold "as is," it never hurts to ask for repairs, a lower selling price, escrow credits, or whatever. If you never ask, the answer is no. If you ask, you have a 50/50 chance of the answer being yes.

When I was a Realtor in Houston when the Texas oil boom was going bust, I found that the best way to work with sellers was to spend my own time getting three quotes, providing all three quotes to the seller, and saying that I would be happy with the middle quote. I always thought that showed a lot of effort and good faith on my part, and that's what I always advise my Clients, especially when they are first-time home buyers and newbie Realtors.

So guess who sent me an email late last night? They didn't call, like I asked them to, but this email was very good.

They got three quotes for the electric panel, the sewer system, foundation work, and a new roof, and ignored the aesthetic damage to the walls, ceilings, doors, and the like. They provided all the quotes to the bank. Remember that this is an "as is" sale. Well the bank didn't go for the middle quote, but they did agree to the lower quotes. So this is what my Clients got:

• $1,500 to replace the electric panel
• $2,100 for replacing the cast iron sewer pipes
• $11,000 for repairs to the roof
• $3,200 for replacing foundation piers

Total: $17,800

My Clients and their Realtor were ecstatic, to say the least. They close escrow today.

For what it's worth, the bank is in New York. Don't know if that made a difference because they didn't want to deal with a West Coast property, but it is what it is.

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Some of Russel's other blog entries

1. 12 reasons why I won't comment on your blogs
2. Active Rain rags are very powerful. Here's how to use them effectively.
3. Cracks on our properties and in our homes (several lessons)
4. Russel's Gardening Handbook
5. What do you do when deceit is obvious? (chapter two)
6. How to help your Clients' house burn down. 
7. That just ain't the way we do it out here, Sonny Boy
8. Sometimes it's just a question of semantics and definitions
9. A true real estate nightmare affecting hundreds of people
10. I purposefully burned a bridge yesterday
11. What part of that don't you understand? (Reading 101, English 101, & Spanish 101)
12. Out of sight, out of mind, skip the work, charge for it
13. "How much will it cost?" "$399 plus a $100 aggravation surcharge."
14. In a home inspection, if the thing works, the thing works
15. What do you do when deceit is obvious?
16. Sometimes it really is that simple (attic)