Jan. 31, 2006 - Seller - Getting Ready for Home Inspection
Having attended many, many home inspections, I would like to offer a few tips regarding getting ready for an inspection (sellers) and what to bring to an inspection (buyers).
There are a few things that a seller should do to get ready for an inspection. One is to change your furnace filter. I like the big bright blue ones for the inspection. When the inspector pulls out a filthy, dirty sometimes crumpled up filter in front of the agent and buyer, there is always a 15 second staring at the filthy thing that transpires. Just take my word for it. Its not a pleasant 15 seconds. Check your filter before the inspector arrives.
For those not buying or selling property, go check your filter. They cost very little. Keep a new one in there monthly or every other month during heating season and year round if you have forced air and air conditioning.
Also for sellers, the inspector will be spending some time with the buyer at the furnace, hot water tank and electrical panel. Make sure these are not covered with an inch of dust and dirt and are not blocked by boxes and storage items. Most times the inspector has to move things to get to these, which can put him in a bad mood. Trust me, you dint want a crabby home inspector. At a recent inspection we had to move a whole storage cabinet to find the whole house GFI in the garage. So yes, wash that hot water tank and change that filter and make sure three people can comfortable get to and stand in front of these areas.
Buyers should bring some graph paper for drawing out the floorplan, a measuring tape for measuring the refrigerator opening if you are going to buy a new refrigerator, a clip board and pad for making notes and of course your check book to pay the inspector. The Home Inspection is one of the few things you pay at time of service in a real estate transaction and is generally not transferred to the closing sheet. Sometimes you can be reimbursed for the inspection, so be sure to tell your agent or escrow closing person to show the cost as a POC on the HUD 1 if you have seller paid costs built into the sale price.
There are very few things you can do to get ready for a home inspection. Putting in a clean furnace filter is #1!
UPDATE 1/28/06 Another one coming...condo conversion on Lake Washington Blvd. Don't have the details except my Dentist lives there and has to move in two months...so it's coming...
pdate - Heard they had their Grand Opening on May 5th...
The big news is that there will soon be another massive condo conversion in downtown Kirkland similar to last year's at the Gallery. A better job of retrofitting, I think, based on this group's othe project up in Juanita.
Will probably be the same timeframe as the Gallery was last year, mid to late summer completion for some of them. Around 850 square feet give or take. $299,000 to $324,900.
Jan. 29, 2006 - Agents "hoarding" mls data and preventing the "free flow" of mls data
Much has been written about this war between the technology industry and the real estate industry, over agents "hoarding" the mls data and preventing the "free flow" of mls data for public consumption.
The mls download agreement for members only is restrictive, and does not permit the free flow of all mls data, which includes the alarm codes and other private information regarding owners homes. Often it tells agents when the owner will be at work, when he will be on vacation and when he will be sleeping (night shift workers). Agents need this info to know when they can and cannot show the property for appointment purposes. This is info robbers could use to know when the owner will not be home. It is not available for public consumption and is agent only info.
Only the listing broker knows which sellers allow the photos for agent use ONLY and do not want a sign on the property nor do they want their living room and antiques on "public display". Just because those photos are "in the mls" does not mean the seller has given permission for his home to be invaded via the internet to anyone who might want to peek inside his home for God knows what reason.
So when a "bottom feeding", non LIBB member joins the mls for the sole purpose of getting into the mls data system for public display, they need to understand what the mls IS, and what it is not.
While Downtown Seattle is not my normal, day to day bailiwick, I think a few comments are in order, given the recent press regarding the growth in the downtown Seattle area.
We recently sold a fabulous view condo in the Newmark and were involved in the bidding war over the almost penthouse suite, so I have some limited, first hand knowledge of the goings on in Downtown Seattle.
If you are purchasing a downtown Seattle condo, be a little wary of bargains and do your homework. With all of the new buildings soon to be coming, make sure you check out the direction of the view, as many will be blocked by the soon to come tall buildings. Dont buy based on view until you check out for yourself if the view is unobstructable, or at least not likely soon to be obstructed.
The trade off of course is that the street level will dramatically improve in the Pike Place Market area, even if the view will be blocked.
Also, if you are looking at comps to support value for your purchase, you need to know about the massive remodeling being done in some downtown condos. The remodels are not your typical-run of the mill, upgraded finishes. Entire reconfigurations of the floor plans have been going on, so that the bedroom is now the living room, etc, to refocus the prime view rooms based on what is to come. Also go outside and study the building and its windows. That one that sold for mega dollars on the 24th floor, had a completely different window configuration than those on the 23rd floor and lower. You can see that there are many more windows on some levels than others, if you study the building exterior. On site research is in order, as you will see things that comps on paper will not readily reveal.
So dont just assume that the one you are buying is worth the price and calculate the cost of granite counters and the like. Make sure the views will not only be preserved, but will be preserved in that part of the living space that most determines value. Views from the bedroom are great, but views from the living space hold a higher value. Clue is if you have to keep saying Come into my bedroom and see the view, that condo is not worth the same as one that has views from the living room. Unobstructable views from both the master bedroom and the living room, of course is best, but hard to come by.
That is not to say that there arent some great values down there, because there are. Just be sure the bargain price isnt due to the view being about to disappear and do the homework yourself. Get your info from the horses mouth. How you pick your horse to rely on ? In that regard, I dont have a tip sheet for you
Its OK to get caught up in the hoopla regarding Downtown Seattle. Just do your homework carefully, as that will determine the winners from the losers, when the dust settles after the new buildings go up.
True, closings Dec. 05 are down most everywhere compared to Dec. 04 closings. But a second wind has kicked in.
Kirkland Dec .05 closings at 127 were down from 154 in Dec 04 - BUT currently in escrow a whopping 206!
Bellevue more even keeled. Dec 05 at 175 down from 195 in Dec 04. Currently in escrow 200.
The high end is holding its own so far with 27 escrows in Kirkland over a mil and 20 in Bellevue, so no bubbles bursting there yet.
The low end is a scramble. New listings are being gobbled up with multiple offers as fast as they hit the market. A few of them didnt deserve to be jumped on and I had my buyers pass them by, but someone grabbed them anyway.
One of the reasons Kirkland is way up in current escrows is because we have yet another group of displaced persons being kicked out of their apartments for a condo conversion in downtown Kirkland. Those people are scrambling for new digs and those who dont want to chance being displaced again are buying instead of renting again.
So no bubbles bursting yet. Question will come when new inventory starts popping in at higher levels when the sun ever decides to come back and stay awhile. If the high end inventory doubles, as I expect it will, the low end will do just fine, but Im still not sure about the $1.3 million plus crowd.
Oh, forgot. I popped into my old stomping grounds over by Green Lake. Same trend there. 76 closed Dec. 05 vs. 119 Dec. 04 with 136 currently in escrow.
Kirkland stilll leading the pack with 206 now in escrow vs. 127 closings in Dec.
Go Kirkland…I mean Seahawks. Actually Im a Sonics fan. Did anyone catch Ray Allens 30 foot shot in double overtime to win the game on Sunday?!?! It was a beaut!! And tonights win gives us the first back to back win in awhile. Go Sonics!
If you own a condo, even if you have owned it for many years, it is a good time to check on your Hazard Insurance.
What you want to note from the Insurance Dec Page, is the amount of the deductible. These days, relying on the Home Owner Associations policy solely, for your Hazard Insurance needs, may not be good enough. In fact, it may not cover you at all for most of your needs, even if it once did.
A major change occurred after 9-11. The Insurance Industry, having paid out some major claims, raised their prices on HOA Insurance policies, more-so than in some other areas. In order to keep costs down and monthly condo fees stable, many Home Owner Associations drastically increased the deductible amount in the insurance policy. So you may not be as protected as you think, or even as you once were. Deductibles that were once commonly $1,000 per claim, climbed first to $2,500, then to $5,000 and in some cases as high as $10,000.
Real Estate Agents should not be telling you You dint need Hazard Insurance because the HOA takes care of that. If you live in a third floor condo and stuff your washer with too many clothes and go to work and it overflows down to the condo below you, are you covered by the HOA policy? Or will you have to pay the downstairs neighbor for the damage out of your pocket? If your hot water tank blows and floods not only the downstairs neighbor, but your two next door neighbors, and the damage is $8,000 and the deductible on the HOA policy is $10,000, where does that leave you?
Heres what you should do. Get the current Dec page for the HOA policy. You should be getting this annually, though you probably throw it away or stick it in a drawer. It looks like a form with lots of blocks and numbers on it and should say something like Declaration of Insurance (commonly known as Dec (deck) Page. Take that page to your insurance agent, or contact the company who provides the HOA insurance, and ask for a quote for a supplemental policy that covers you for the things the HOA does not cover and reduces the deductible. Get quotes for a $500 deductible and a $1,000 deductible.
Even if your Condo Association has a low deductible, you should have a supplemental policy to cover your belongings and your own negligence items, like overflowing washing machines.
While you may not need anything besides the HOA Dec Page to close escrow, that does not mean you do not need your own Hazard Insurance Policy just because it is not an escrow requirement. It never did, really. But today it is even more likely to be grossly insufficient than it was in years past.
If you are on the Board of Directors of a Home Owner Association, the Board should send a notice to owners regarding the increase in the deductible amount, along with a recommendation that they all go out and obtain their own supplemental policies. If everyone has a supplemental policy, the HOA is less at risk for claims and lawsuits. Reducing risk helps everyone keep their condo fees down. The supplemental policies of the owners should cover small claims, and the HOA Policy should be used only for fires or major incidents that affect more than just a few owners. One persons claim on the HOA policy, instead of their own policy, increases everyones costs and dues.
Moving away from relying solely on the HOA policy, is in everyones best interest. If too many claims are filed against the HOA Policy and the insurance company drops you, you being the entire Association, everyone suffers.
XXX calls and tells me she ran into a guy thinking about selling his property and gives me his contact info.
I call owner and make appointment to go see his property.
Great place, real estatewise, but a mess otherwise. Stacks of books and stuff in stacks all over the floor everywhere. All furniture smells like stale sweat because he bikes everywhere, comes home sweaty and hungry, sits on furniture and bed and eats. Normal "guy" stuff, but 6 mos. old sweat smells really bad! Lots of other small stuff like dishes stacked up, bottles and cans piling up for that once a year trip to the recycle bin downstairs. An inch of grease on the stove. Again, normal stuff.
I tell him what he can get for the place if WE do all the stuff on the list before anyone sees it. That is 5% more than we can get if we don't do that stuff, and $10,000 more than he thought he could get regardless.
REAL LESSON #1
Don't let anyone SEE the place except YOUR agent when it looks that bad.
If you "interview" every agent in town BEFORE you get it ready, you have wasted your entire "buyer pool" for the first 30-60 days!
You can't erase what is in all of those agent's heads and you will never get top dollar if you "over expose" a property before it is ready to be seen.
Let 1 agent see it if it is really bad, and only 1.
3 is OK for so-so.
I recently had a client who showed it to everyone while he was doing his "flip work" and then he couldn't sell it. Had to rent it till next season. Once everyone rules it out as an option, you can't get them back.
By trying to "beat the commission" by showing it FSBO before it was "positioned to sell", you may win the battle and lose the war. Save the commission, but get less than you saved, as a sale price.
This is my youngest daughter, Andrea aka Andy. She is very artistic, bright, and tough. I adore her. She is my "baby" always (cause I'm definitely not having any more children!)
We've always had a very special bond, as most mothers do with the baby they know will be their last. She thinks she looks the most like me ;-) She's probably right. She's certainly built like me. Just remember to dye your hair when you get older, honey, and we'll always look like each other!
I love her dearly, no matter what and she knows it.
This is my middle child, Jacquie aka Jackie. She is brighter than I am, and that's saying something because I am a pretty smart cookie! She's much taller than I am and gorgeous. She even has that Elvis crooked smile...don't know where she got that. Yes, I met Elvis, no, he's not her father LOL She can do anything she wants...ANYTHING! She is that bright. And she has a whole lifetime to do anything she wants and she can change it all the time if she wants. It's great to have options. I hope she always appreciates that not everyone in this world has as many options as she does. It's a blessing. She's a blessing. I am a very lucky Mom. I adore her and she always makes me proud.
This is my eldest daughter, Tina aka Teenie Beanie God, I LOVE her to death. My first born. A gorgeous creature. She deserves all that life can give her. I miss her terribly. I love her always no matter what. She has a spirit that floats around her for all to see. A joy to behold and a fabulous, wonderful mother in her own right.
There she is! My gorgeous, blue-eyed, grand daughter! When she was last here she filled my home with memories. I adore her. She and I got along just great. I think she could feel my love cover her like a blanket and she responded in kind. Her name is Xochitl...yep, that's my Tina. Came up with a name no one can say. It's pronounced So-Chee and is the Aztec word for a flower, or the lifespan of a flower from bud to fallen petals to be more exact. There are no words to describe my love for her.
"What they need, no more; no less, for a price that seems reasonable."
Now, lets look at the service providers, both as you know them, and as I know them as an insider. From an insiders perspective there are three tiers of service providers. The traditional full service model, the discounted full service model and the stripped down to you are mostly on your own model. None of these are good or bad in and of themselves. Its more a matter of what is good or bad for you, depending on your skills. But thats for another day. Just wanted you to know that each of these is good for someone. Only question is which is right for you.
Technology has added a fourth option that is not a model in the service provider sense, but one that many consumers at present are opting for, which I will call ZAP.
I have to use analogies because I am somewhat limited by my insider position in discussing commissions and companies. Straight shooter that I am, being a little vague is not my normal modus operandi, so bear with me. Hopefully my descriptions and analogies will be obvious enough for you to follow. If not, you can ask questions in your comments or by email.
Lets discuss and eliminate the ZAP option first, since it is not a service provider, but a place where many consumers get trapped without knowing that they are getting ZAPPED. It is worth mentioning here that ZIP is not aZAP. Now back to ZAPs. The most obvious ZAPs have a button that says Find a Realtor, or something of that nature. When you hit that button to find a Buyers Agent or Sellers Agent you are decreasing your ability to negotiate the commission, without knowing it. The technology whizzes who create these websites take a portion of the commission, without disclosing that to you the consumer. They do not provide a service to you, the consumer. They provide a service , for a fee, to the agent who is a participant at a cost. There are many of these and we call them lead generating sites, bottom feeders or troll sites.
Lets take a specific example of how these work, and there are many of these available to you. Lets say you are a buyer, rather than a seller, of real estate. You go to look at property on one of these sites, which is how they reel you in. You then hit the I need a Buyers Agent button and are connected with an agent. Lets say based on the price of the house you will eventually purchase, that the commission will be $9,000 as pre-set by the seller of that house when he listed it for sale in the mls. When you connect with the agent by hitting that button, you have generally spent in that process of merely hitting a button on the website, the money you could have negotiated toward your closing costs or repairs or against the purchase price.
The agent who gets you has paid for you. He pays for you out of the $9,000 on the table in your transaction. Sometimes he pays it up front in a monthly cost of say $1,000 a month. So if it took three months for that agent to get you (the lead), he has paid $3,000 for you. When you try to negotiate something for you from the $9,000, the agent has already given $3,000 to the 3rd party ZAP company, and so you get ZAPPED, as your ability to negotiate has been diminished or entirely eliminated without your knowledge.
Some other sites are not pay as you go for the agent, but pay as you close. In that case the agent will owe the ZAP a percentage of the commission, if and when you close escrow. Again, the monies you may have been able to negotiate with your agent have been sucked up in advance without your knowledge.
Some of these sites operate like the one sided mirror glass of an interrogation room that you see on shows like Law and Order and the like. I find these lead generating Big Brother website options to be exceptionally creepy, but hey, thats technology at its best, I guess. When you sign up to the site to view and save property, you are assigned to an agent in the queue without regard to whether or not it is a good match. Those who have paid in to look at you look at property, get the leads kind of like the way a lottery ball pops up to the top and gets pulled. I'm trying to give you the facts without editorializing, but its difficult for me as I find these sites intrusive and deceptive.
OK, back to facts. The agent who wins you in the lottery of the moment, gets to see everything you are doing from the inside without your knowing he is watching you. He can see what properties you are viewing. He can see which ones you are saving vs. ones you are trashing, he can get inside your head a bit. He gets all of the info you have put in to register for the site. You then get an email from him, and maybe a phone call, saying Would you like to go see X property? You are dumbfounded and amazed and think he is absolutely clairvoyant! Or maybe you DO want to see that property and don't think about how he guessed you might want to go see that property and you just go see that property without a second thought.
LOL OK, I cant stop editorializing, can I? Don't you find this just absolutely creepy? Maybe its me. Ill stop here for today and will continue after some of you comment on this so far. Maybe its just me. What do you think? Id like to hear from you before I go any further. After 5 comments I will go to Part 2 of ?
As to the Title of this entry, lets review. We are mostly talking about ZAPs that ZAP you, the buyer consumer. ZIP is NOT a ZAP. While you all sit at the edge of your seats awaiting Zillow and its wonders, we all (the insiders for lack of a better term) are sitting back expecting another exploitative ZAP type. Of course No one knows, but the Shadow, but at least know what to look for when it comes. My expectation is that it will not give you what you want. That being What you need, no more; no less, at a reasonable cost as noted in the second sentence of this entry above. (Someone let me know if that IS what the consumer wants, please. Thanks.)
But it will WOW! you with its technology, reel you in, and then sell you off to the highest bidder. No one knows yet, but if you hear anything new about it let me know and I will decipher the code.
Five comments from YOU, the reader, and then we will move to the actual means a buyer has to negotiate their commission, unless they have already shot themselves in the foot by being totally or partially ZAPPED without their knowledge, from the ability to negotiate.
I love telling this story in person, so I thought I'd post it here for your enjoyment. Is it true? Who knows, it may be "Urban Legend", but I love the story and so do many others.
Pre-sale. Brand new Kirkland Condos. Summer of 2005. If you wanted to buy one you had to go and "explore" the project in advance in downtown Kirkland where it was displayed with lots of people to help you get to know the project.
You signed up for a number. On a given Monday night, your number represented a FIVE MINUTE appointment time. A line formed based on number like at the lunchmeat counter at the QFC.
Number 2 stood behind number 1 and so forth. You had five minutes to slap down your money and say I want unit #301 (hypothetical example). Of course if you were number 53, you had better know 53 options of choice, as by the time you might get to the front of the line, chances are what you wanted would have been taken.
OK. Here's the fun part. Number 1 of course picked the best one. Number 2 grabbed him and paid him $100,000 on the spot to get the same condo he just picked! He made $100,000 just for having the #1 choice!! Is that true? I don't know. If anyone knows Mr. or Ms. #1 and #2, maybe you can tell us. But that's the fun story and I'm sticking to it.
It was also reported that 80 units sold in that one night representing about 75% of the total units available.
ARDELL
DellaLoggia
On Seattle Real Estate including Kirkland, Bellevue, Redmond, Green Lake and most areas around Lake Washington North of Downtown Seattle.
Phone: 206-910-1000 - Mailto:Ardell@RainCityGuide.com
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