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Five Outrageous Realtor Requests

3/15/2018

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Posted on March 14, 2018 by The Bulletin, in Selling a Home, Special Publicationsby Cindy King, for The Bulletin Special Projects


Your Realtor® may come out of the woodwork and ask you to perform one or more tasks that will make you scratch your head. They also may have some suggestions that make you go hmm? What do you do when they ask you to do some unfathomable feat, like completely remodel your kitchen within two months before they list your home? Here are some outrageous requests and tips on how to navigate them:
“Take all your pictures down and hide them away.”
I am asked this question more often than not. When I preview a seller’s home for listing, if there are so many pictures that even I have forgotten why I’m there, I will recommend removing at least 80 percent of the pictures. You need to pack them anyhow so why not get a head start? If you have trophy animals on your wall or on your shelves, remove most all of them if you can. Some people are very afraid of trophy animals and they will walk out of your home very, very quickly.
“Removing your pets for showings will put you at a great advantage.”
This isn’t outrageous – it’s actually true unless you own a cat who could care less when “company” arrives. Your friendly dog is usually not so friendly when strangers are approaching him. I showed a home recently where the Realtor® had to be present for showings to warn people to not approach the dog that was securely kenneled inside the garage! I asked her if she was there to convince those of us who love dogs that this dog doesn’t love people. She smiled and said, “Yes! People are ignoring the sign.” No one needs a bitten finger while touring a house.
“The Realtor® needs to be present for all showings.”
If your agent is suggesting this, perhaps your house is extremely unique to where the floorplan is disorienting, the area is dangerous or they need to explain the permitting process of your home project. If your home is fairly standard (not meaning plain or boring) but standard and you do not have any expensive artwork, gun displays or diamond-trimmed countertops, it’s usually safe and secure allowing access to the buyer’s agent and his/her clients. The buyer’s agent knows how to use their phone to ask questions afterword.
“Ms. Seller, your value is $525,000 but let’s pump it to $650,000 and see what happens!”
As I choke on my afternoon tea, I’ve seen and heard of this phenomenon called “wiggle room.” This, my friends, isn’t wiggle room. This is very likely an agent trying to buy your listing. It is completely outrageous for an agent to recommend you list this high above the market. I’ve heard of agents responding with a higher price when a seller tells them, “We don’t really need to sell,” but why overprice by this much? The Realtor® is doing you a huge disservice. Even in our strongest markets a seller can over-price their home and it could take years to recover. There are times when an owner feels their home is worth more than what the professional is showing. Feelings sometimes interfere with data, facts and numbers but buyers don’t base their decision on your “feelings.” They definitely don’t write offers if a property is negligently overpriced. If after reviewing the market data with your Realtor®, and you think your home is still undervalued by the agent, consider if your emotions or your family memories are vying for your attention.
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Surviving Multiple Offers

12/21/2017

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  You’ve saved and saved and are ready to buy your next home. You’ve scouted several homes with your Realtor® and you have found THE ONE. It’s been on the market for six months and you start thinking this house has been neglected – but why?
After a thorough review of current market data you submit a solid offer that day. The next morning your agent calls to tell you there are now multiple offers and the seller is instructing agents for “highest and best” within 48-hours and the seller will review all
offers then.
  The home you dreamt about where you’d put the sofa, the kids toys and room for your skis in the garage feels like it’s slipping away. Your head starts pounding, your heart races and the cortisone is making itself known throughout your body. Hopefully your agent has counseled you about the 60 percent chance of this happening.
  I have experienced this so many times but when it happens to you it can feel like an incredible stroke of bad luck. How can the home you chose after it’s been on the market for months and months now have multiple offers? All is not lost, yet now you must step up
your game if you did not submit the best offer.
  There are many ways a seller can handle multiple offers. Sometimes sellers price their homes under market value to procure multiple offers. Other sellers price accordingly, obtain more than one offer at a time and consider the first offer submitted and negotiate in that order. I have heard of other sellers rejecting all offers and request every buyer resubmit.  This is a high-risk choice that I do not recommend as some buyers will walk away sensing that future negotiations will be one-sided and it’s quite a slamin-the-face experience. 
  If you find yourself in a multiple offer situation, work with your agent on submitting the strongest offer you can — right then. Now is not the time to see if this is a really happening. Holding back by trying to keep “a little bit more” to negotiate could result in losing the house. Some buyers have lost homes over a very miniscule dollar amount — less than one-half of one percent of the sales price. Tough call to make, right? It’s tough because after all the research and reading you may have done online is not working in your favor at this moment. I relate it to the birthing plan you put into place while awaiting the birth of your child. They’ll come no matter what time you wrote on the calendar. NOW is the time to put your best offer forward. Here are some tips on strengthening your offer:
  • Put a large earnest money deposit down. A seller will take your offer more seriously with a larger deposit. Your offer likely has other standard contingencies that protect all parties throughout the escrow period so if it seems like it is a large amount of earnest money, it is protected up to the point of you removing all said contingencies.
  • Write a letter to the seller. Let’s face it — real estate is a fairly emotional transaction with a few exceptions (i.e. new construction, bank-owned). Write a short letter to the seller/owner touching on two or three reasons why their home is perfect for you and your family. I have had several multiple-offer situations this past year and the buyers who have submitted letters have been more successful than not.
  • Shorten or waive some contingencies. This options requires careful review; however, if you are confident that the property could skip the inspection, you can decide to waive it — or shorten the timeframe requested to obtain a property inspection.  I always recommend a property inspection so this suggestion doesn’t come lightly.
  • Work with the seller on possession. If the owner is being relocated and must sell before they can buy, offer a one to two month rent-back for them to stay in their home while they look for their replacement property. The rent-back could even be at no-charge. Your first house payment usually begins one to two months after you close. Spending a few thousand dollars remaining in your rental could be worth it in the grand scheme of things. Use that time to go through your things, eliminate clutter in your current residence and you’ll have time to move out without feeling rushed.
  • Escalation Clause. These were used quite often during the last real estate rush. An escalation clause essentially says you’ll pay a set amount above the highest offer submitted to the seller with a disclosed cap of the maximum you would pay. Offers to sellers are confidential to other buyers but of course the seller sees them all. If the seller hot button is getting highest price possible, an escalation clause could be helpful.  Your buyer’s agent will keep you posted, hopefully on a daily basis, while you are in this potentially stressful situation. Potentially? It IS stressful! Patience and communication is greatly appreciated by all parties.  You may not be the winning home buyer, but if you do not submit an offer you do not stand a chance of winning.
  Remember that sometimes offers are not all about price. I have had sellers accept lower offers in multiple offer situations because the offer is just better. If you do not succeed the first time, hang in there.  There is always another home that will come on the market that is as good, if not better, than the one you initially fell in love with. Going through the experience is no doubt an emotional roller coaster yet your agent is there to help you understand the process and keep you informed.

Sold! by Cindy King
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Behind the Scenes with your Home Loan

10/5/2017

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Guest column by Cindy King, for The Bend Bulletin Special Projects

Now more than ever it is imperative that borrowers, sellers and Realtors involved in a financed purchase understand the loan process and how the chosen lender will work in delivering a loan on time.

So many twists and turns happen behind the scenes, and if your lender or banker is not on top of your file, you as the buyer may pay a steep price in missing loan locks, missing closing dates and sometimes even being homeless between occupancies. Sellers? Sadly, being fully prepared with your moving van and home packed and then having a two-week extension … well, I just don’t like thinking about it!  You may be living with Uncle Joe until your sale actually closes.  When I got into the real estate business in the mid-1990s my mentor, Steve Scott, beat me over the head about what lenders do and what they do not do. Many an office meeting broke down the processes involved with financing, ideas of issues to watch out for and questions to ask throughout the loan process in order to have a solution to a problem even before you need it.  A lender is essentially a loan arranger. Your loan arranger is gathering and assembling very important data from you. That person is your main point of contact throughout your financing journey. Always be upfront and honest with your lender. Always

From the time you sign your loan application, your lender sends your file to their processor. Generally mortgage loan processing takes place within five to 20 days from the date of application on the mortgage loan. The processor needs to get their work done before it’s submitted to underwriting.  Once in underwriting the mortgage underwriter will then verify what you’ve told your loan officer regarding your salary, debts, savings, etc., and review your file as if it has lice. That fine toothed comb is never finer than at this moment in time.

The processors and underwriters carry the responsibility of verifying your data to help approve your loan; yet they also have the responsibility of protecting the lender by ensuring the loan is safe enough to grant. The entire process now takes anywhere from 45-60 days or longer, depending on your financial situation, job status and other factors.

One of these “other factors” could be your appraisal. Your lender is required per the real estate sales contract to order the appraisal within the time specified for your property inspection. If your lender disagrees with that and says it’s OK to wait until the inspection is done, have them call me. Actually they can’t call me unless I’m an agent that is involved, but that answer is incorrect. They need to get the appraisal order in, and they can always cancel it later should a property inspection cause the deal to go south. Appraisals still aren’t as fast as they used to be, and by the lender delaying putting the order in, you could pay the price.  It’s just not worth it.

Surprises can come along at any time. One way to help combat last-minute surprises is to continually follow up with your lender about the loan status. Ask lots of questions! If they are not updating you on a weekly or bi-weekly basis, call them. Ask your lender how the loan processor is doing right now? Do they need anything more from you? If your file has been processed and it’s with the underwriter find out where it stands in underwriting! Do not be shy — this is a big deal.  If you get “It’s all good ... no problems!” without any specific details, consider your loan in muddy territory.
Listing brokers have full authority to contact a buyer’s lender and ask about non-confidential loan updates, as does the buyer’s agent. If anyone at any time suspects there may be a delay in closing it is imperative to notify all parties and get that extension in writing. With the new lending rules that brokers and bankers must follow, last-minute extensions can cause one- to two-week delays in closing. Sooner is always better than later.  By having all of your information at your fingertips (this is hard for my fun-loving clients who consider filing sheer torture) you are assisting your lender tremendously, ultimately helping everyone move on with their lives in a timely manner (no pun intended, but kind of).
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Why does it take so long to get a loan these days? Well, why does it keep snowing?!? It is what it is, and we have to deal with it. We can’t change the weather and we can’t change the loan processes; but all parties to the transaction can be proactive and aware by paying attention to the process.


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CHOOSING THE RIGHT® REALTOR

9/5/2017

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Knowing the right questions to ask when selecting a real estate agent will help ensure a good partnership and a positive home buying or selling experience. 
by Cindy King, for The Bend Bulletin Special Projects

My library is full of real estate journals, magazines, market trends and histories, books about human nature and personality traits, as well as some cat books to balance out my world. Real estate involves a wide breadth of skills and knowledge and when you are at the point of hiring a Realtor® you are faced with some important questions, some of which you may not know to ask. What should I look for? What do I need to ask? Who do I ask? How do I know? Whit- ney Houston isn’t here to sing, but I always like to try. 
After more than 20 years in the business (and more to come) here are three of my favorite questions for sellers to ask, as well as some bonus questions from yours truly. I include my questions because the interview is for both of us. You are not hiring me to be my boss; I’m not working for you just to have fun and hang out. By going beyond hiring an agent because they offer professional photography as their main asset, these questions will help you navigate and get to the nitty-gritty of the difference between a professional ball player and some- one dabbling in real estate because they need something to do. Welcome to Real Estate 301. 

Question #1: “Ms. Agent, are you full- time and how many deals have you success- fully closed?” 
The key phrase here is “full-time.” While some very established, highly skilled agents work part-time and have their network 
of clients they have worked with over the years, I really believe that in our extreme- ly competitive market you’re best served by hiring a full-time, knowledgeable agent. 
Our real estate forms change every year with constant additions and updates. Many outside issues play a role in a property sale on top of the language in the sales contract. Take the government for example. Have you heard about legal marijuana or any spotted frog regulations over the past 12- 24 months? These rulings and regulations affect certain properties, majorly. In Deschutes County there are more and more instances of changes in rulings that can unfortunately affect properties even after a client’s exhaustive due-diligence was done prior to closing.
 
Question #2: “Mr. Agent, what is your level of understanding of the language of the listing contract, as well as the sales con- tract your broker requires us to use?” 
No different than professional football players do when reviewing their skills and data before/during/after the season, you need an agent who is on top of their game as it relates to the contract and what’s involved. Many moving parts are involved during a sale and no transaction is the same. Your agent is your direct coach when it comes to understanding the contract. Don’t be shy in asking to see their documentation. We all keep records of our continuing education and that is one of the many ways to see what our background and history is. 

Question #3: (actually it’s #5 by now): “Mrs. Agent, how will you work with me in marketing my home in getting it sold?” 
Your agent should be able to establish a clear and fairly concise plan on what you can expect from them. This is their full- scale marketing proposal, and customizing it to your particular property is important. If you have a unique property then hope- fully the marketing plan is unique to your situation. If it’s a photocopy of outlines from 1998, the meeting is over. 
Additionally, I had to add this: always ask for referrals. Referrals come from a third party who has no interest in what hap- pens to your sale; however, they do have an interest in sharing with you their positive experiences with their agent. You can learn a lot from a phone call with a referral. 
Now, for the two questions I ask: 
     Question #1: “How many homes have you sold in the past?” 
This way I can get a sense of your experience with real estate. If you have never, ever sold a home before and you are thinking you can go it alone with the world- wide-web guidance; I will want to tuck you under my wing and protect you from the sharks out there. If you’ve sold several homes I know how to guide you with some advanced practices and not overwhelm you with data you don’t need. 
   Question #2: “What else do you want and/or expect out of your agent?” 
By asking this question I can find out how involved you really want to be; if you prefer phone calls to emails; if you need extra time to review documentation (engineers love data ahead of time, right?) when showings are most convenient for you, and I also may find out about any past experiences with agents either good or bad and respond accordingly. Do you want weekly local market updates or do you just want to get away from our winters FOREVER? 

The interview is a two-way street and by asking important open-ended questions both parties will get a feel of whether the partnership stands a chance. If you relate and sense you trust this person to help you with one of your biggest assets, you are ready to sign on the dotted line and are on your way to a win-win for everyone.
 

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    Cindy King
    Principal Broker
    ReMax Key Properties
    541.419.9068

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