This is a strong recommendation for both buyers and sellers, whether you are a first time buyer, first time seller, or experienced in both buying and selling. And if you are relocating to a new state this is even more important since things are likely done differently there than what you may be used to.

READ your contracts.

Let me say that again. READ your contracts.

I have seen several recent situations where buyers and sellers got into hot water because they made assumptions about their transactions, only to later find out those assumptions were wrong. Once things are signed, or the deal is completed, it is too late to find out that something important was missed, or forgotten, or you agreed to something that you wish you hadn't.

Unless you are obsessive, you probably don't like taking time to do this (I am the same way). Contract language is not fun to read, and is often hard to understand. It is certainly boring. But important details an easily be missed.

• Check dates
• Make sure things are spelled correctly
• Review ALL financial stuff to ensure it is correct
• Is the address right?
• Are all the blanks filled in that need to be?
• Is your SS# correct (in the closing docs usually)
• Make sure you read terms and conditions, AND understand the implications of them, and what happens if certain procedures are not followed.

Make sure you ask about things you are unclear about before proceeding. It might save you some major aggravation later.

Have a great weekend!

Buyers often ask, in the market we are currently in here in San Diego (and in other parts of the country) if they should ask for seller concessions.

And people wonder are seller concessions are common? And are there pros and cons about asking for them.

As you are engaged in the process of looking for a home, you may want to consider asking for seller concessions as part of your negotiations. But be aware of some important things to consider.

First, what ARE seller concessions?

Seller concessions are generally things that the seller will offer, either up front or when requested, as an incentive for buyers to purchase the home. You find them in buyer markets when there is lots of competition. Obviously there is no need for these when the market favors sellers. It could be a credit for carpet or paint, or money back at closing for non-recurring costs (i.e., money for repairs and other things). Sellers may agree to contribute some funds towards the buyer's closing costs as well. Buyers often ask for concessions in the case of short sales and foreclosures, too. Builders of new homes may offer concessions as well, or other incentives - a car (for high end homes), a trip, a plasma TV,lender incentives, and more.

1. Find out if seller concessions are common in your marketplace. If they are, it makes more sense, but if not, it may be a tough hoop to jump through. Your agent can advise you.

2. Consider what would be important for you in order to purchase the home. Credit for repairs, rather than the seller fixing them, is fairly common.

3. Think about the competition and whether or not asking for concessions will make your offer unacceptable, or less competitive, than offers from other buyers. All things being equal, sellers will likely look less favorably on these if another offer is cleaner.

4. Know that just because it is a buyers market does not automatically translate into a situation where sellers will be willing to give up everything in order to sell. It will depend on the local demand, prices, the seller's motivation and other factors.

Asking for concessions MAY be something worth considering in your offer and negotiations. But it may not be your best course of action, depending on the circumstances.

Further, intentionally bumping up the asking price and then requesting a large sum of money back at closing can be fraud. It is a common scam in this market, where some folks want to offer, say $30K more than the home is worth, then to get this money back as closing to do other things. There are cases where lenders, buyers and even sellers and agents have participated in such illegal activities.

Whether you are buying or selling as part of your relocation, I suspect most of you will want to work with an agent in order to accomplish the goal of sellling your home and buying a new home.

You may have already selected that person. Or maybe plan to use the agent that helped you before and who did an outstanding job. Or a good friend who you trust has given you a referral. GREAT. You are on the way.

Maybe, however, you are looking for an agent, along with doing other research on home buying and home selling. The Internet is a great way to do this - but I imagine many of you already know that. If not, you will be amazed at what you can learn.

Say you are relocating to Carlsbad, CA (yep, my home town). Go to Google and type in Real Estate Agents in Carlsbad, CA and what do you find?

You will see a link for ACTIVERAIN, a fabulous real estate networking site with agents, loan officers, home staging professionals and many others from around the country. The link takes you to a list of professionals in California, and you will see that I am #5 in California (but #1 as a real estate agent - 3 of the top 5 are mortgage brokers, all excellent by the way - I know them -  and the top guy is president of a real estate software company - I know him too, and I use his virtual tours in my marketing). There is a tremendous amount of information here if you take time to look at it, and it doesn't cost you a thing. Sort of like an on-line interview, in the comfort of your home.

This is the important stuff you can learn:

• Each agent (or other professional) has a profile so you can learn more about who they are and what they do. This may answer some of your questions about someone you don't yet know and give you a feel about their experience and personality. It may help you decide if you would like to work with them or not.
• Each of us write blogs on ActiveRain, such as the one you are reading here. For example, on ActiveRain I write about all sorts of things for consumers - information for first time sellers (or seller articles such as Is Your Home Sale Being Sabotaged?), things to know as a buyer, how to find an agent, market reports and community profiles, and so on. You will find probably everything you need to know in your quest to buy or sell a home, plus learn a lot about the areas you are considering living in when you relocate. What a fabulous source of information, even if you aren't ready to buy or sell yet.
• Our blogs tell us who we are (this is part of transparency on the Internet) - in reading the articles that each person writes, you will learn a great deal about them. Their integrity, knowledge, and approach to working with clients. Their personality and temperament. Again, it is like having an interview, or reading their personal biography. So, without even having met the agent, you will know enough in many cases to make you WANT to work with that person. You will feel you already know them when you meet.

I know this is a bit of promotion, but I want to help YOU find the right person to assist in your home purchase or home sale. And ActiveRain is a terrific resource. Once there you can search for professionals in your STATE and COMMUNITY. Some people will share alot of information and others will not. What does THAT tell you?

Now this is important...

The other bit of research I would suggest is to simply GOOGLE the name of the person who are thinking of working with, of the referral, or the person you find on ActiveRain. What do you find? You may not even find the person you are considering on the Internet. Hmmmm. What does THAT tell you? On the other hand you may find all sorts of information. Don't you want someone who is active in their business, who can demonstrate their knowledge, and who uses technology? And certainly take a few moments to visit their personal

One last helpful hint...

Go to LOCALISM. This is a resource for buyers and sellers, and you can search nationally to find out all sorts of things on areas that interest you. Since you are planning to relocate, this is a terrific place to start learning about your new community. Once again, some areas will have lots of information (I write a great deal about Carlsbad, for example) and others will have less.

Good luck! I hope you find this helpful. Let me know if I can answer any questions. And I know a lof of the highly ranked agents around the country...so ask me about them if you like.

Making the decision to relocate is tough most of the time. You may have no choice, given your job situation. Or there may be other compelling reasons for the move (family, health, weather).

Once the decision is made, however, the next tough choice is WHERE to live. I'm not referring so much to a particular city since that choice is yours and, given the above, may already have been made.

But having worked with lots of relocations, it seems that one of the hardest things to do is to find a home in the right neighborhood, in a community or town you don't know.

So what IS a neighborhood? Or perhaps more accurately, what does "neighborhood" mean to you and how will you know that you have found the right one? Can you put into words why an area feels right to you or not? Or is the home itself of greater importance?

• Is it a place that feels, or looks, just like where you now live?
• Is it defined by the physical parameters of the area - streets, fences, trees, open land physical boundaries such as fences and gates?
• Is it a place where everyone knows everyone on the street, interacts regularly, hangs out in driveways?
• Is is a place where the homes are mostly alike or more diversified?
• Is it defined by the people who inhabit the area?
• Is it an area that is near a downtown/commercial region, within walking distance

There isn't a right answer, of course, since what "neighborhood" means will vary for everyone. But I know that for most people it is a critical aspect of your home search. And something you need to think about as you explore housing possibilities.

And when you are on your house hunting trip, keep this in mind. You need to look at homes that meet your criteria, but you also need to gain a feel for the communities you are considering. 

Is where you live going to be based on the house only? Or the neighborhood?

The question of whether to BUY FIRST or SELL FIRST is a complex one. And a very personal one.

There really is no right answer. The best answer is IT DEPENDS.

That may NOT what you want to hear, as someone who is relocating and needs to both sell your current home and buy one in your new location. I have been through it myself, on multiple occasions.

So what issues should you consider?

1. Are you in a seller's market or a buyer's market? - talk with your agent, or you may already know. If you are in a seller's market chances are your home will sell quickly and at a good price (maybe full price or better), so buying another home before you sell is less risky. In a buyer's market the buyer is in control. So as a seller you are at the mercy of appropriate pricing, staging and condition of your home, and enough buyers who want your type of property at the asking (or near asking) price.

2. Your financial status - some sellers are financially in a position to be able to qualify to buy a new home (or pay cash) without having to sell. You need to look carefully at your situation to see if this can work, considering your market and the one you are moving into. You certainly don't want to have two mortgages if you don't need to (and especially if it is a financial burden).

3. Can you qualify for a bridge loan - if you need to buy before you sell, can you cover the costs of a loan to carry you through the process until your home sells. Many get into this situation after they have a signed purchase agreement but are waiting for closing. As a short time solution this can work well, but be aware bridge loans are pricey in terms of interest. You DON'T want to carry one for long if the closing time on your current home is lengthy, or worse, the deal falls apart.

4. Family circumstances - depending on the situation you are in with regard to your relocation, having your family settled in one place rather than living apart (kids, school, multiple jobs, etc.) may be a top priority. And it may be worth some extra money (with two mortgages) to buy something else before your current home has sold. But consider the issues above, too!

When trying to make the choice, I would also consider consulting your CPA on the tax issues, just in case there are some implications of your decision if transactions should overlap the tax year.

Keep in mind that as a seller in a buyer's market, you have no control. If you have bought another home but your current one is not selling, you don't have a lot of choice, other than to lower your price, carry the two mortgages, or rent your former home. Buying a new home AFTER selling is, for most, probably the most prudent decision. Proceed carefully.

We're going to step back a bit and talk about some things that should occur early in the process of selling your home, or preparing to sell your home.

If you have been in your home for any length of time, and especially if you have a hard time throwing out things, you likely have a bit of personal stuff...some of which you want, but possibly some you don't. One of the biggest enemies to selling your home is CLUTTER. That does not necessarily mean JUNK. But so often people have lots of stuff around that is part of their daily living - collections, papers, magazines, kids toys, personal photos, and so on. And this makes it hard for prospective buyers to look at your home from an impersonal perspective and consider it for themselves. The stuff needs to go somewhere.

Having lots of stuff littering your counter tops in the kitchen and baths, and on tables, also contributes to a feeling of less space. And since kitchens are so important to buyers, you want this area to be the center of attention for the right reasons, not the wrong ones.

Another good reason to rid yourself of all the personal trappings of living is that your agent, or a professional photographer, will be taking pictures for the MLS, ads and marketing. Clutter in the photos will NOT impress buyers and may make your photos look even worse, since photos tend to make rooms look smaller anyhow.

Here are a few thoughts on how to deal with your stuff:

1. Pack it up and put it away - in your garage (unless it, too, is cluttered). You are moving anyway, so why not get started on your packing early?
2. Rent a storage unit for boxes, books, extra furniture, etc.
3. Rent a PODS (portable on-demand storage) - load it up and keep in your drive (but this adds to a cluttered look in front) or have it taken away for storage
4. Call 1-800-GOT-JUNK? to take away all the stuff that you don't want any more but which can't go out in the trash. They will come in, give you an estimate, and take just about anything. It's a great service.
5. Have a garage sale - this can work, and maybe make you some money. But consider how much time it takes for the return. And unless you sell everything you STILL have all the stuff
6. Donate to the Salvation Army, Goodwill, a local church or community center - clothing, small appliances, and household goods are especially prized
7. Call the local Big Brothers Big Sisters organization - they will pick up donations (yes, they accept things other than money!).
FIRST TIME SELLER SERIES
Article 14 First Time Home Sellers – Take it or Leave It?
Article 13 First Time Home Sellers - Take Care of Those Repairs
Article 12 First Time Home Sellers – Keep an Eye on Those Dates
Article 11 First Time Home Sellers – Look out for Sabotage
Article 10 First Time Home Sellers – Repairs Request
Article 9 First Time Home Sellers – Due Diligence
Article 8 First Time Home Sellers – Responding to Offers
Article 7 First Time Home Sellers – It’s Offer Time
Article 6 First Time Home Sellers – Make Yourself Scarce
Article 5 First Time Home Sellers - Showings
Article 4 First Time Home Sellers – The Fun Begins
Article 3 First Time Home Sellers – Don’t Forget These Questions
Article 2 First Time Home Sellers – The Agent Interview
Article 1 First Time Home Sellers – Getting Started

The time for your move has come, finally. The contract was signed, the inspection completed, the repairs request negotiated, the repairs taken care of, the buyer's loan was approved and closing is next week. The process has gone well and you are excited about your move.

An issue that can create problems is the matter of the sellers personal belongings vs. fixtures in the home. The question is...Do I take it or leave it?

In general, PERSONAL PROPERTY are those things that are NOT ATTACHED and which you are expected to take with you when you move. REAL PROPERTY, which is land, trees and plantings, and the house (i.e., in general things that are not movable), and includes items that are attached to "real property" and which, normally, remain with the house for the buyer. If is not uncommon for issues to arise with regard to these items, since sometimes sellers want to take things that really should be left, or vice versa.

When you are establishing the listing contract, one matter that should be discussed is if there are any items that are to be excluded, such as that custom chandelier that you had made which will look great in your new home. I you want to take the washer and dryer then you need to communicate in the listing that these will not remain (appliances are often a point of contention between buyers and sellers, and protocol varies from area to area as to what normally stays - in some places it is common that sellers take the refrigerator, in others the opposite is true).

Any points of contention should be agreed on up front in writing with the contract. If you planned to take the washer and dryer but the buyer wants them, this should be agreed on. And if you agree to leave them, then you need to do so. Don't take something that was agreed to be left, or which rightful should stay with the property. Doing so is a discourtesy to the buyer and could cause you some legal problems. And I have heard of cases where the seller took items that they had agreed to leave, and the buyer refused to close unless the items were returned or replaced.

So what do you take or leave? Those things that are rightfully yours, as personal property, should go. And further, as a courtesy, make sure the house is in broom clean condition and the trash is all removed. Remember what it felt like it felt like to you when YOU were the buyer?

I am off to the Hollywood Bowl in Los Angeles tomorrow for the Playboy Jazz Festival - just hanging out on Saturday, then home again on Sunday. More on that when I return. Good thing is it is only about 2 hours from San Diego so it's an easy and fun trip on the weekend.

Have a terrific weekend!

HAPPY FATHER'S DAY to all you fathers!

To kick off the "mold series" I thought it would be most beneficial to start at the beginning and answer the question; what is mold?

• There are approximately 60,000-80,000 classified species of mold.
• Many types of mold spores can survive extreme temperatures and high pressure making them extremely resilient.
• Molds can survive extended periods of time without dying by entering a dormant state. This survival is most commonly seen within food containers stored in refrigerators.
• Through the use of secreted enzymes and mycotoxins, molds can inhibit the growth of competing fungi. Yes, they battle each other.
• Cultured molds have been successfully used in the food and medical industries for years. Most notable, the discovery in 1928 by Alexander Fleming of Penicillium chrysogenum, the mold which releases the antibiotic Penicillin.
• Humans exposed to heavy concentrations of mold can develop allergens and other health related issues.
• Molds cannot be time stamped.

As a relocating buyer, especially if you are moving to a very different part of the country, the FEELING you get about different homes and neighborhoods will undoubtedly be very important.

Consider this! You are selling a home you have loved living in for a number of years. There is a certain lifestyle that YOU (and possibly a family, partner, spouse) have that revolves around your home and the neighborhood. Do you have a good grasp on what that feeling is? Is it important to you? Is it something you wish to replicate in your new home?

Finding a new home, especially in an unknown area, is a challenge. For some, just having a roof over their head with X number of bedrooms and baths is all that is important. The trappings of the home, and the feelings, may simply not be all that important. But for many, finding a home and neighborhood that recreates the feeling of the old home IS vitally important. And therein lies your challenge...and your REALTOR's.

It's essential to be aware of these feelings, and to understand their importance to you on a personal level. Is the home itself more important? Or the feeling you have about a certain community, provided that the home offers you the amenities you desire. and what are the things about an area that WILL feel right to you - size of the neighborhood? Nearby amenities? Privacy vs. a more community involvement? You get the idea.

Some of these issues are hard to put into words, but many folks say they simply KNOW when these things are right...or are not right, even though having specific words to define this is difficult for them.

So as a relocating buyer, I encourage you to really listen to your inner self as you make the transition from seller in your old home to buyer in a new area. Don't ignore these feelings - you might end up buying the wrong home.

Sellers - especially first time home sellers but certainly applicable to ALL:

I did a follow-up on my recent post here about my warning to sellers and wanted to bring that to your attention. Some of my recent experiences showing homes has made it clear to me that there may be some SABOTAGE happening to some sellers, without them knowing it.

Take a look at my post Is Your Home Sale Being Sabotaged to learn more about some things to watch for. Not to scare you, but to make you aware, as a consumer, of issues that may arise and impact your ability to sell your home quickly.

Jeff

I know that many buyers are concerned about mold. We have certainly heard lots about it in the media, and health concerns about mold have increased dramatically in recent years. So buyers are worried that the home they want to buy might have mold. And if so, what can be done about it? Or should they not buy the home at all?

Sellers are also concerned - worried that THEY have a problem to fix before they can sell. Or perhaps they were not aware there WAS a mold issue, and now they know due to the buyer's inspection.

What to do.

Well, mold is coming your way...watch out for my guest blogger, Andy Konopacki. Andy is President of VM3 Environmental, a mold inspection and remediation firm based in Carlsbad and serving all of Southern California, and over the next few months or so will be providing buyers and sellers with some great information on MOLD.

• What is mold?
• How to find out if mold is in your home
• What does a mold inspection tell you
• How can you get rid of mold
• What to look for in your mold inspection and in your mold inspection company

The more you know as a buyer or seller, the more readily you can make an informed decision on how to proceed.

Stay tuned for this informative and timely series.

This is a warning to ALL sellers, first time or not.

Make SURE your agent is doing everything they can to facilitate showings at your home. Assuming that YOU have been very flexible about showing times and provided a key for a lockbox, make sure YOUR AGENT is not hindering showings.

I had an experience today that really annoyed me, which is what prompted this. I took my buyer clients to a home about 20 minutes away. It was a re-listing (so the same agent), but it came on the MLS yesterday. Notes say to call owner first (I did) and go direct as there is a lockbox.

Hah! Got to the home with my clients and no lock box. Called the seller - very apologetic but they had taken the keys to the agent yesterday but the box was clearly not in place. So I called the agent (talked to their admin to let them know of my displeasure and the inconvenience, and waste of our time).

Now, I ask you - is this agent doing what they should to facilitae showings for this seller? Nope. No note in the MLS that the lockbox was not in place. Oh and BTW the brochure box was empty (not that I need it but buyers driving by do...not very good service IMO).

I have run into other situations recently where agents do not return calls to me when I want to show a home but an appointment is needed (personally if I were that seller I would be REALLY annoyed).

OK, enough grumbling. But I do feel it's important that you know about these sorts of things so you can make sure YOUR home is not getting sabotaged by an agent who is NOT doing the job.

In my latest post I talked about the due diligence period, during which the buyer (under most circumstances) will have a home inspection done. This tends to cause some anxiety on the part of not only the buyers, but the sellers as well.

• You probably had your own inspection when you bought the home so you will recall what this was like
• And you will also likely remember what issues came up in the inspection. Some may have been taken care of by the seller, or yourself after you moved in. But you will probably have some concern about either the same issues or possibly new ones arising.
• Or perhaps you know of other things that have become issues for YOU through wear and tear, deterioration, or simply aging (a leaky sink, an old roof).
• And what about new issues being discovered that YOUR inspector did not find? The fear of the unknown can cause you some anxiety.

As I have said repeatedly, there will also be some sort of defects or repair issues that arise in a home inspection, so prepare yourself for this. Don't angst over it for too long, but expect there will be problems.

Secondly, the issues may be minor and the buyers may be fine with everything as it stands. You can breathe a sigh of relief.

But often the next hurdle in the sale of your home is the request for repairs:

• Buyers commonly will ask for certain defects to be corrected by the sellers during the transaction
• This may be submitted on an actual form (here in CA the Request for Repairs or RR) or simply in writing, depending on state requirements
• They may request that all the problems be fixed (unrealistic) or just the more serious ones (such as appliances that do not work, electrical plugs that are wired backwards)
• Buyers may ask for a price reduction in lieu of repairs, in an amount they feel is equivalent to the cost of the repairs (this may be based on estimates from professionals - it SHOULD be - or simply a number they are pulling out of a hat)
• You may find some buyers asking you to take care of what YOU consider to be the most minor issues (a small hole in a screen, a cabinet door that does not stay shut). Don't be offended by this, if you can help it, but consider the dynamics of the situation - buyers want your home but have learned it has defects. Like anyone buying a product, they want it to be defect-free. While this is NOT reasonable, it IS often how buyers respond. Think back to YOUR inspection and how you felt when the inspector told you about all the defects and repairs. IN a buyers market it is far more common for buyers to be very picky simply because they can.

As in the offer, Request for Repairs are negotiable, and you have several options:

1. You can agree to the requests by the buyers and fix the problems (best to have this done professionally and to provide documentation, particularly for plumbing, electrical or similar matters where a licensed person should do the work)

2. You can agree to the price reduction or credit back at closing, or YOU can propose this in lieu of taking care of repairs (if you are in the midst of relocation this may be easier for you instead of arranging to have things repaired)

3. You can negotiate WHICH repairs you will fix, OR a different dollar amount than that suggested by the buyers

4. You can decide to fix nothing, or to not provide a credit or a reduction in price

Discussion continues until the parties agree. Some buyers will decide to walk away if they don't get what they want, or in the case of serious flaws. You will need to consider whether some things really ARE problematic and worth fixing in order to sell your home. The goal is to reach a happy medium where both parties are happy about the negotiations.

Congratulations, you made it through the negotiations, have agreed on a selling price, terms and conditions, and the closing date with the buyers and now have a signed, and binding, legal contract. So what happens next?

The next phase is one of due diligence on the part of the buyers. This may vary from state to state, in terms of the issues the buyers investigate and the timing (here in CA, for example, the default time frame is 17 days, but this is negotiable; in MA there is a range of time before the Purchase and Sale, or P and S, is signed). A critical piece here is the home inspection by the buyer (assuming they do one), which may include other inspections as well - structure, chimney, pest, water, lead paint, and so on. As a seller you MAY be required to provide a number of disclosures to the buyers to review during this period, as is true here in CA (e.g., the Transfer Disclosure Statement or TDS that you complete about your home). The buyer may also investigate insurability of the home and natural hazards, and a home appraisal may occur in order for the loan to get approved.

No matter what is required, make sure you do what is necessary within the time limits so you do not hold up the progress on your transaction - failure to adhere to the time frames that are agreed on CAN put the transaction in jeopardy. Your agent will assist you in this process, but some of the documents may be provided by other sources (again, depending on the state requirements). Make sure you inquire about any forms you do not understand before you sign them, and keep copies of everything.

Perhaps the biggest issue that may arise during the due diligence period results from the home inspection (you remember doing that, don't you?). Because this is a significant part of many transactions, and a time where some deals fall apart, let's address this is a separate post. Stay tuned.