For Home buyers

It has to be in writing

Posted on by Teresa Boardman

Getting it in writing sounds so obvious but sometimes home buyers have questions and real estate agents “guess” at the answer or make assumptions.

For example: A real estate agent thought there was parking included with a condo and told the buyer the same. There was something in writing from the association that plainly stated parking was not included and that there would be an extra charge for parking but that a parking spot wasn’t guaranteed.

In another situation, the agent who said that there was a storage unit with the condo was mistaken. Condo documents did not include a storage unit.

Even if it is in writing it may not be true. Information in the Northstar MLS is deemed reliable but not guaranteed.  Room dimensions are rarely exact. Buyers should bring a ruler along. I have seen some mistakes too. Like one in a half-story houses that are listed as two-story.

Also, understand the difference between real estate and personal property. Appliances that are not built in are considered personal property and may not be included in the sale. Buyers need to specifically ask for those appliances in writing.

Buying a home isn’t always easy which is why home buyers often choose to work with experienced, knowledgable real estate agents.

Houses

 

 

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The couple who wanted the loft

Posted on by Teresa Boardman

housesI rarely share details of transactions on this blog but today I am going to share. I’ll change the names and location to protect the innocent and the guilty.

Once upon a time, there was a beautiful loft for sale. There were a few interested buyers. One couple saw the place three times. Their agent said he had an offer and he would send it at X time. The sellers were notified and standing by but the offer never came.  The buyer’s agent kept in touch and kept mentioning that there would be an offer but none came.

Then one day a near-perfect offer came along. Qualified buyers who were able to accommodate the owner’s preferred closing date and no contingencies. The owners of the beautiful loft immediately accepted the offer.

The other interested party found out and their agent called and told the listing agent that she was supposed to let the buyer’s agent know about any offers. The buyer’s agent never asked to be informed about offers and even if he had the sellers can decide not to share that information. They can ask their agent to not disclose the existence of other offers.

Bottom line a home can only be sold to one party and often several parties who wish to buy it. Homeowners only need one offer.  When a great offer comes along the seller can and should accept it. Home sellers are under no obligation to have their agent let interested parties know that there is an offer. 

The buyer’s agent claimed that he knows how things are done and that any other listing agent would have called to let him know about an offer. That had been his experience during his three years as a buyer’s agent.

Buyers planning to buy should make sure they are ready to buy before they start looking. Once the right property is identified it is time to make an offer. Waiting rarely works out. A buyer’s first offer should be his best offer. Agents should not repeatedly promise an offer before the buyers. When there is no offer the agent loses credibility with the listing agent and the sellers.

One universal truth about buying or selling residential real estate is that every situation, client, and home is unique. We have to be prepared for every kind of scenario and never make assumptions about what buyers or sellers will do. We expect the unexpected.

Agents should refrain from saying they are going to submit an offer unless they are sure. If an agent says they are going to do something at a particular time they should do it or at the very least call the other party and let them know what is going on instead of making them wait.

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Garter snakes on the river bluff

Posted on by Teresa Boardman

I have lived in the West 7th neighborhood for most of my life. The block we live on is on the river bluff and the limestone is just beneath the soil. Garter snakes love it because the soil is warmer. Garter snakes love it. It isn’t unusual to see a few garter snakes sunning themselves on the basement window sills.

Occasionally a snake gets in the house. They can’t climb but they can fall in. They are not poisonous, they don’t have teeth and they usually slither away when someone comes near. They eat frogs, small mammals, earthworms, and insects. They hibernate in the winter.

Fear of snakes is common and some people have ophiophobia, which is an irrational fear of snakes. Over the years I have known people who bought houses that they could not live in due to fear of snakes.

It is best to ask about snakes before you buy. It is best to ask about anything that might affect your use or enjoyment of the property.

The snakes can be found anywhere in Minnesota and throughout St. Paul.

What happens to that earnest money?

Posted on by Teresa Boardman

coinsI get asked questions about earnest money all the time. Recently I encountered a situation where the home buyer was worried that the earnest money would be stolen. Your earnest money is safe.

Earnest money is a deposit made by the buyer. It is held in a real estate broker’s trust account until the sale closes. The purchase agreement spells out who will get to keep the earnest money if the buyer fails to close.

A home can be purchased without earnest money if both parties agree.

Earnest money does not go to the seller. The most common practice is earnest money held by the seller’s broker. The money is usually electronically sent directly to that trust account and there are all kinds of rules and laws governing trust accounts.

Ultimately the money goes toward the purchase price. It will show up on the settlement statement as a credit.

The amount of earnest money depends upon the price of the house.  A larger earnest money deposit can make a buyer’s offer look better to a seller. It shows that the buyer is committed to the purchase.

What is walkable?

Posted on by Teresa Boardman

IcecreamI walk a lot but I have found that there is no single definition for walkable. Some of my destinations are considered further away than what is considered walkable.

There are a few things that make walking easier. Sidewalks and crosswalks. I can’t see myself living in any kind of urban or suburban setting that doesn’t have sidewalks. I can’t even imagine having to drive for miles to buy eggs or bread. It seems expensive and time-consuming.

Walking is a great way to get exercise and I am told it is good for the brain. Walking instead of driving can also lead to cleaner air. Cars are expensive which is another reason why I enjoy walking.

Walkability is something to consider before buying a house. Can errands be done on foot? Is there a grocery nearby? What about restaurants, drug stores, and ice cream? Are there bike paths and is there mass transit nearby?

Finding a house Vs. Buying a house

Posted on by Teresa Boardman
drawing of a house
I drew this myself

People are often confused by the fact that it is fairly easy to find a house for sale without any kind of professional help. Anyone with internet access can find houses that are on the market complete with pictures, floor plans, and room dimensions.

Once a home buyer finds a house that they are interested in what do they do next?

Make an offer?

Tour the home?

Pay to have it inspected?

Hire a title company to close the sale?

There is a process for buying real estate that is somewhat unique in each state. In Minnesota, offers have to be in writing. Most homes that are on the market are offered by a Realtor®. They know what to do and how to make an offer but they also represent the seller. They can work as a facilitator and work with both parties but one agent or one broker can not represent both buyer and seller in a transaction.

Finding a house to buy is just the first step in a process that often takes months. Most buyers will need money to buy a house so it starts with finding money for a downpayment and getting pre-approved for a mortgage by a lender.

The next step is usually looking at some houses and seeing them in person. Occasionally someone will buy a house they saw on the internet without touring it first but that is surprisingly rate.

Then the buyer will need to make an offer. The offer is on a legal contract. The buyer will need to decide how much to offer and whether or not to have an inspection and any other contingencies.

If there is an inspection the buyer has to negotiate any repairs with the seller. None of this is rocket science. It just takes patience, negotiating skills, and experience.

Finding a house for sale and buying it are two completely separate processes. Finding the house can be done on the internet. Buying the house can be done with a combination of email, text messages, phone calls, trips to the house, and in-person meetings. Do not confuse the two processes.