It's Not Your House YET!

Posted at 1:02 PM, May. 21, 2007

One thing that it is very important to keep in mind as you go through the home buying process is that it's not your house YET!  It will be very soon and because of that it's often easy to get ahead of yourself and start expecting things from the sellers that may be beyond what you should expect.  Remember, home buying is a process and that's why you work with a Realtor, because they know the process and they will make sure you move through it at the right pace, making the right steps at the right time.

Here's a breakdown of that process...

1. House shopping.  You've spent countless hours online looking at every house you can possibly find, trying to narrow down the field. At the same time you are doing that your agent is doing the same thing trying to find you the perfect house.  In addition to looking online you spend several hours out actually inside of houses, or your agent might preview homes for you, sometimes even sending you more pictures to help you narrow things down.

2. You finally found the house you want!  Isn't this the greatest feeling.  Well it is until you find out it's already under contract to someone else.  Hopefully, that doesn't happen but it does and it can, so be prepared as you look at houses.  Remember it's not yours till you close.  Assuming the house is not under contract to someone else, your agent will help you write up your offer to purchase.  Remember this is only an offer, the seller can accept it or reject if they choose, or they can give you a counter offer (this is most common).  In our market the typical selling price is within 3% of the list/asking price. So if you offer too low there's a good chance of a counter offer.  There's nothing wrong with this but remember it's not your house until everyone agrees.  I have seen people lose the house of their dreams because they offered too low and then when the counter came back they countered again and in the meantime another better offer came in and the sellers just took it.

3. Once everyone (the buyers & the SELLERS) has come to terms and signed off the offer, it becomes a contract.

4. The Home Inspection.  Always get a home inspection.  You should try to be present for the home inspection, but again remember that this is not your house yet so don't treat it as if it is.  The house still belongs to the current owners and just because they aren't there doesn't mean you shouldn't act like they are sitting right next to you.  This is not your opportunity to be a snoop.  You should stay with the home inspector or with your Realtor if you don't want to follow the inspector around (although this is a great opportunity to learn a lot about the house you are about to buy).  Once the home inspection is complete you have the opportunity to ask the sellers to make repairs to any major defects.  Remember a home inspection is not there to look for little cosmetic things you should have already noticed. Your Home Inspector is a license professional there to find things you wouldn't.

5. The Waiting.  This is the worst part. The time between the home inspection and closing.  Everything else moved so fast but now it's like the time is just crawling.  Your Realtor is making sure that everything is taken care of in regards to scheduling the closing and getting all of the paperwork where it needs to be.  So what do you do during this time? PACK!  Yep, that's right get packed because otherwise moving day will be here before you know it.  Also, don't forget to call the Utility, cable, and phone companies to get all of those things switched to your name as of the day of closing, otherwise you may be moving into a dark house.

6. Final Walkthrough.  The day before closing (or often the day of closing) your Realtor should take you for a final walkthrough the home... it's not yours yet... This walkthrough is to make sure that all requested repairs have been completed and that the house is as you contracted to purchase it.  If you've ever seen the movie MOVING with Richard Pryor, then you will understand why this is important.  You remember that really cool light fixture you liked? It should still be there when you do the final walkthrough (and when you close for that matter).  If it was attached to the house when you agreed to purchase it, it should be there when you close.  All repairs in your contract should also be done by this time, but if they aren't don't panic.  Your contract lives even after closing, so if they aren't done by closing your Realtor will make sure that arrangements are made at the closing table to see that they get done asap.

7. The closing.  If you are the type that likes to read everything you sign. Please make sure you tell your Realtor prior to closing, so that they can get you a copy of the paperwork in advance.  The attorney's (or title companies) typically schedule about an hour for a closing, which is not enough time to read every bit of the mountain of paperwork you will be signing. They will go over all of the documents with you.  Your mortgage lender should have already gone over the mortgage documents with you (which is the bulk of what you will be signing if you are financing the property).  The attorneys will be happy to answer any questions you have as they go through the paperwork so never fear asking. 

8. It's Your HOUSE!!  Unless other arrangements have been made you will receive your keys at closing. From that point on it's YOUR house and now you can move in, and do whatever you like.

There are a lot of things that go into the process that you will probably never see because your Realtor (if they are doing their job) will be taking care of many things behind the scenes.  Our job is to make the home buying process as simple and stress free as possible for you, taking care of all of the little (and not so little) things that may come up.  If buying a home is a stressful project then you are working with the wrong Realtor.

Home Inspections - GET ONE

Posted at 12:37 PM, May. 21, 2007

Alabama is a buyer beware state, meaning that unlike most states in the country we don't have seller disclosure forms where the seller goes through and checks off everything they know about the property and passes that info along to the buyer.  Even if we did have those, I would still say GET A HOME INSPECTION! And even if you live in an area where those are the norm GET A HOME INSPECTION!

WHY?

Simply put, have you ever had a house that you knew everything about? Do you know when things are about to go wrong before they happen? NO.  Can a Home Inspector tell you that? Sometimes. 

The first house I ever bought was in a state where seller disclosures were the norm.  Here's what I know about seller disclosures... they really aren't worth the paper they are printed on.  Sellers can lie.  Sellers can check "I don't know" and as long as there is no documentation that they do know...no one can say otherwise.  Luckily, we did have a home inspection on the house we bought... and that home inspection discovered about 2grand worth of structural damage as well as a lot of other little things that the sellers didn't know about.

Whether you are in a "buyer beware" state or not it's safest to take the stance that it is in your best interest to know everything you can about the house you are about to buy.  You are the one who is going to be living in so shouldn't you know what you are paying for?

Here are a couple of myths I have encountered regarding home inspections...

1. I'm buying FHA so I don't need a seperate home inspection.  WRONG!  An FHA Appraisal is not a home inspection, it is an appraisal. There are very few items/ needed repairs that they will require to be made and that list is getting shorter by the day.  Really all they look for are major HEALTH & SAFETY issues (ie. is the roof about to cave in? Is it safe to live in?).  Don't expect that if you are getting an FHA loan that they will be doing a home inspection.  It is still up to you to have a home inspection and if you choose not to, then no one else is doing it for you.

2. I'm getting a home warranty so isn't getting a home inspection like paying for it twice? UM NO!  In fact, if you get a home warranty and a covered system is already bad when you buy the house, it may not be covered by the home warranty.  A Home inspection tells you what you are buying when you buy the house. It also gives you a last chance to have the sellers make necessary repairs to the home based on the home inspection.  According to our contracts here in North Alabama, a property is to be passed to the purchaser with all systems in normal operating condition, but if you haven't had a home inspection then how do you know if they were in normal operating condition when you bought it?  A Home Inspection is not a warranty, but it does tell you the status of the home as it is when you buy it. It also gives you a chance to get things fixed by the seller before you close.  A Home Warranty covers the house after you buy it, so that if something does go out later, it costs you a lot less.

For more info on Home Inspections, and a list of Home Inspectors in the North Alabama area click here.

It's a Beautiful Life

Posted at 12:12 PM, May. 21, 2007

It really is a beautiful life! After a year in real estate I have had a couple of really great confirmations lately that I am doing things right. Here are a few promises that I made to myself when I decided that I wanted to become a Real Estate Professional:

1. This business would not take over my life. It seems that many real estate salespeople allow their business to take over their life, and in the process they lose control of everything and in the end have no life. They take calls whenever the phone rings and constantly worry that if they don't they might miss an opportunity. They will pass up family events or planned personal activities because someone called at the last minute.

If I don't control my time & business it will control me. This is the second business I have started. I knew from my first business that it is very easy to allow your business to control you and to feel that you have to be going 24/7 to make things happen. But I also know that it doesn't have to be that way and that often when we lose control like that we lose in the end and so do our customers. Because we are running so much and never take time for ourselves we can not give our best to anyone, not ourselves and not our customers. I want to be able to give my best to me and to my customers. So I control my time. I schedule my work activities. This doesn't mean I never work nights or weekends but it does mean that if I have plans to go out of town and you call me, I'll most likely refer you to a fellow Realtor. Trust me, if I rescheduled my entire weekend for your, neither of us would really appreciate it in the end. This also means that I turn off my phone at night and I rarely take calls after 8pm.

2. I don't have to work with every customer that comes along. Everyone's personalities are different. You and I may not really get along very well and if that's the case then why would you want to work with me on a transaction that involves one of your biggest assets. I am a firm believer in surrounding yourself with positivity and if you feel negative around me then you should be with someone else. Same goes that if I don't feel that we are connecting or if I'm not enjoying working with you, I'll probably refer you to someone you would be more happy with. This should be a good experience for you and you should feel comfortable with whomever you work with. Not just with their ability to do the job but with their personality. It takes some time to buy or sell a house and you'll be dealing with me (or whomever you choose to work with) quite a bit. Each of those interactions should be pleasant ones and neither of us should be dreading seeing the other on caller ID. By allowing myself to not take every customer that walks in the door I am much happier and can give much better service to those customers that I do choose to work with (and who choose to work with me).

3. I will only be myself and will not try to be someone else just to please other people. This is a constant decision and while it may seem to have nothing to do with Real Estate it has to do with everything. It is always a little difficult when we meet new people, especially in a business environment. We never quite know what they expect of us so we try to live up to expectations we don't even know exist. What I've found when I've made this mistake is that eventually I relax and can be myself. When I do this things go much smoother and everyone enjoys things much more. So I continue to remind myself - don't try to be what people expect. Be yourself and everyone will be happier and more relaxed.

This last item was reinforced to me recently when I met with some clients who are relocating to the Huntsville market. The first day was a little awkward. I didn't know their personalities so I was a little stiff with them because I didn't know what they would be ok with. We were together for a week, by the second day I started to be a little more myself and by the third I was totally myself. By the fourth they had inducted me into their family and informed me that I was the Best Realtor they'd ever worked with (this coming from a military couple that has moved probably 20 times). That was the last time I will be anything but who I really am.

Items 1 and 2 were reinforced for me a week or so ago when I attended the Richard Robbins International seminar. It's always nice to go to a seminar and leave feeling like you were doing things right and it's ok to continue the way you are going. I will continue to run my business my way. My goals are to provide the best service to everyone I work with, whether that means that I work with them directly or that I refer them to an agent who can do the job better and give them a better experience than they would have with me. It's not to say that I'm giving them to a BETTER agent, just a better agent for THEM.

It really is a Beautiful Life. I am lucky enough to be doing what I enjoy, in control of my business and my life, and as of May 17, 2007 married to the man of my dreams (but that's another post).