liz lockharts real estate reality cape girardeau real estate: The septic did not pass inspection, now what?
- 02/13/11 03:47 PM
The scenario: Buyer has a contingency in his contract for a bank-owned property that the septic must pass an inspection satisfactory to him. His inspector reported that the septic will not pass state health codes. The estimate for a new system is $15,000, and the buyer wants to know if he can renegotiate the contract and/or cancel it if negotiations fail. He also wants to know if the bank now has to disclose property defects to future buyers. First, let me say that you should be discussing this inspection with your agent right away, if you have one. You should also go back … (2 comments)
liz lockharts real estate reality cape girardeau real estate: Will they take a back-up contract?
- 02/12/11 01:45 PM
First, let's clarify what a back-up contract really is. Many buyers confuse a back-up offer with a back-up contract. To qualify as a contract, it has to be signed by all parties. That means that the seller and buyer have agreed to all terms. A back-up contract is like any other contract for sale, but with one difference: It becomes effective only if it is still in place when the current contract is voided for some reason. Should that happen, the terms of the sale to the back-up buyer have already been settled; and the sale proceeds pretty much the same as if that buyer … (16 comments)
liz lockharts real estate reality cape girardeau real estate: As the news unfolded, all I wanted was my CNN...
- 02/11/11 03:57 PM
On historic days like today, all I want to do is stay home and watch CNN. Instead, I spent the day busy with typical real estate duties including showing a house, helping an investor, and dealing with tasks that kept me on the phone or in front of the computer screen all day. The morning news had said that protesters were dubbing today the Day of Martyrs. I, like people the world over, prayed that the demonstrations would not turn into a reality of that grim prediction. Upon returning to the office after my showing, I admit to starting a routine of switching … (4 comments)
liz lockharts real estate reality cape girardeau real estate: Rodney Stovall: A Tribute
- 02/10/11 01:31 PM
It's been a year since I last saw Rodney Stovall. He was in the "duty" room, and I stopped by to talk for just a minute. I really just ducked in to say "Hi" as my best friend and I were on our way out of the office for our monthly pedicure. I wish I could remember what I said. If I had that moment back, though, I'd surely have stayed longer. I'd tell him that I treasure our friendship. I'd tell him to go to the doctor! Actually, I don't remember if I did or did not urge him that day to go to the doctor, not … (12 comments)
liz lockharts real estate reality cape girardeau real estate: Wing wall? And it needs a railing?
- 02/09/11 09:57 AM
"Wing walls need railing," was on the FHA appraisal, and the client was mystified. Since it was an FHA appraisal and it involved a railing, I knew the appraiser was talking about a wall or ledge off of which someone could fall. I had never heard the term "wing wall." The house did not have an open stairwell, so I asked the client if there were any photos. "Only of the outside of the house," she said.
That was the clue I needed, as I realized the appraiser was talking about the retaining walls on either side of the walk-out … (2 comments)
liz lockharts real estate reality cape girardeau real estate: How do you know if it will pass FHA?
- 02/08/11 03:18 PM
Buyers and agents often ask that question, now that increasing numbers of buyers want to use FHA loans. An FHA appraisal (not to be confused with inspections that every buyer should order) may cite areas that must be repaired prior to closing. Those citations are called predications. Not every seller will agree, however, to make repairs. The foreclosure seller is an example of one that may refuse to make repairs, specifically stating that the sale is AS IS. Though not a comprehensive list, by any means, the following are among frequently cited predications for FHA loans: Foundation issues Structural issues that compromise … (18 comments)
liz lockharts real estate reality cape girardeau real estate: Cyber bullies will have it easy
- 02/06/11 02:48 PM
Fast forward eight or ten years from now. A vulnerable fifth-grade Vanessa will be embarrassed when a cyberthug of a classmate uncovers old FaceBook posts made by Vanessa's proud parents in 2011. What Mom thought was so cute will be a gold mine of torture material for her bully. I beg parents to stop and think before they post those oh so cute photos. Will your little super star grow up to become a shy 10 year old who cringes when her paparazzi parent treasures are spread out before her enemies? How many times did you invade her privacy before she was old … (6 comments)
liz lockharts real estate reality cape girardeau real estate: Rio? As in Rio de Janeiro?
- 02/03/11 01:56 PM
That's in Brazil, right? Copacabana Beach is there, too? What does that have to do with real estate? Yes and yes to the first two questions; but if you're talking real estate lately, you probably mean REO. And it's usually pronounced R-E-O, as in "are--eee-oohhh". REO actually stands for Real Estate Owned, and it means the property is bank-owned. Real Estate Owned is actually an accounting term. Think of it as a category for the type of asset. Cash on hand might be one category. Real Estate Owned is another category. A foreclosed property, then, is an REO. "Is that property … (6 comments)
liz lockharts real estate reality cape girardeau real estate: “What do you think they will take?”
- 01/29/11 01:27 PM
Hmmm. They already told you what they will take, and that is the listed price. It's when "What do you think they will take" is followed by "Maybe I'll just test the water" that a savvy agent needs to step up to the challenge. When testing the water equals wasting time for everybody involved, statistics may help bring the offer more in line with reality. Sold prices are edging closer to listed prices (see charts below). Without giving advice, I can tell the questioner that properties in our local MLS have averaged selling for 94.4% of the listed prices in the … (4 comments)
liz lockharts real estate reality cape girardeau real estate: Bittersweet Facebook discoveries
- 01/27/11 03:52 PM
Today I saw a former student of mine as a featured stock analyst on CNBC! Last week, I learned that another of my students is in a knock-down, drag-out fight for her life with lymphoma. Both of those pieces of news came through Facebook. Because one of the corporate trainers insisted we should pay attention to social media, I signed up for Facebook a year or so ago. It seemed like a waste of time, but I was willing to play the game. I had, after all, chosen to attend the meeting; and I have always been a good student, usually diligent … (6 comments)
liz lockharts real estate reality cape girardeau real estate: No. The water will NOT be on!
- 01/26/11 02:48 PM
Dewinterizing a foreclosure property is not as simple as turning on the water, so please do NOT schedule your inspector to visit the property right after your offer is accepted. A few things need to happen before the water will actually be on in the house. You (or your client) must actually be under contract. That means the contract must be signed by all parties. That is not the same as having an accepted offer in hand or even having submitted a buyer-signed contract and addenda. Until we are actually under contract, either party can withdraw the offer. Winterization must be ordered, usually through a national … (6 comments)
liz lockharts real estate reality cape girardeau real estate: Lying could be a $10,000 mistake!
- 01/25/11 03:48 PM
Fannie Mae, Freddie Mac, and HUD give priority to owner occupant buyers, and all three require buyers to state whether they are owner occupants or investors. Don't even THINK about misrepresenting yourself as an owner occupant if you will not personally be occupying the property. As a listing agent for Fannie Mae and HUD, I am sometimes asked to do research to verify that a bidder is, indeed, an owner occupant. I am REQUIRED to report it, if I suspect misrepresentation. I take that responsibility very seriously. The following is a statement you will be required to sign if you are making … (34 comments)
liz lockharts real estate reality cape girardeau real estate: MLS is a cooperative, not merely an advertising venue
- 01/22/11 03:44 PM
MLS is a cooperative. It is not merely a method of advertising. To that end, REALTORS® should be able to rely on the honesty of descriptions, instead of having to write off everything as hype. When we get to the point that the hype is all that counts, we have nothing left that is useful. We are more than cheerleaders. Information in an MLS listing sheet is not just about personal promotion, listing promotion, or even personal credibility and integrity—it is about the continued usefulness of the cooperative effort that MLS represents. After all, the MLS information used to be limited to statistics that … (4 comments)
liz lockharts real estate reality cape girardeau real estate: Time's up! (part 2)
- 01/20/11 05:08 PM
What happens next if the seller of a property does not respond to your offer before the deadline stated on your paperwork? That depends on you, actually. In part 1 of Time's UP, I outlined realities and suggestions for buyers. And now for the realities of REO! The REO seller does not even know when your offer expires. Maybe it's a little-known fact, but they don't actually see the offer. The seller sees a computer summary of only what they consider the significant facts-usually that includes offering price, date of closing, financial specifics (including type of financing, LTV, and lender information), requested inspection … (6 comments)
liz lockharts real estate reality cape girardeau real estate: Time's up!
- 01/20/11 03:55 PM
What happens next if the seller of a property does not respond to your offer before the deadline on your paperwork? That depends on you, actually. 1. Move on to the next house. You certainly have that right; because you do not have a contract with the seller, and your offer has expired. Your offer is NOT a contract. It does not have the power to bind you or the seller, unless it is signed by both parties before it expires or is withdrawn. 2. Express your continued interest. A phone call from your agent to the other agent would be … (4 comments)
liz lockharts real estate reality cape girardeau real estate: Digital hygiene: Do you have it?
- 01/19/11 05:06 AM
So your computer has ground to a halt, has it? It either won't load programs properly or you have time to cook a meal while it boots. Surprise! Some of the things you have done to FIX it may have crippled it! An agent in our office recently had a computer crash, and she asked my son (a computer tech professional) to look at it. She wanted him to "save it" or advise her to simply throw it away. What he found was shocking. To be fair, it was not so shocking to my son, the professional, because he had seen such messes … (10 comments)
liz lockharts real estate reality cape girardeau real estate: Going, going, gone... NOT!
- 09/02/10 04:58 PM
So that bank-owned property you've been watching is going to auction, and you hope to snap it up at a bargain price. Not so fast! Negotiations may not be over even when you hear those magic words, "Going once, going twice, SOLD!" Whether the auction is on-site or online, unless the auction is ABSOLUTE, the "winning" bidder has not actually snagged a sale price. If the seller's minimum or reserve price has not been met, the highest bidder has merely won the right to negotiate farther. In the case of an on-site auction, the buyer may even be asked to sign a contract. … (9 comments)
The scenario: Buyer has a contingency in his contract for a bank-owned property that the septic must pass an inspection satisfactory to him. His inspector reported that the septic will not pass state health codes. The estimate for a new system is $15,000, and the buyer wants to know if he can renegotiate the contract and/or cancel it if negotiations fail. He also wants to know if the bank now has to disclose property defects to future buyers.
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