RSS icon Email icon Bullet (black)
  • Your agent may be a prima donna if…

    Posted on January 28th, 2011 admin No comments

    Their outgoing phone message includes the phrase:

    “If you are calling after 6:00 pm or on the weekend, I will return your call on the next business day”

    Just what you want a potential buyer  to hear when they call the number on your yard sign.

  • Questions that Salt Lake Home Buyers Always Ask (#8)

    Posted on January 27th, 2011 admin No comments

    Why should I consider that house?  The living room was painted pink with green carpet.

    Don’t sweat the small stuff.  Paint and carpet are relatively easy and cheap to fix.  Let your agent use the seller’s lapse in judgment to your benefit in negotiation.
    When considering a home, make your decision based on attributes that you can’t change (location, neighbors, architectural style) or those items that are expensive to change (old furnace, bad roof, floor plan).

  • When Photo Tours Go Too Far

    Posted on January 18th, 2011 admin No comments

    There are some things best left to the buyer’s imagination

  • Questions that Salt Lake Home Buyers always ask (#7)

    Posted on January 17th, 2011 admin No comments

    My loan officer said that the seller will pay my closing costs.  Wouldn’t that save us thousands?

    First the facts.  The seller never actually pays a buyer’s closing cost.  The amount is simply deducted from your offer price to create a net price.  This “net” is what the seller looks at when considering your offer.  On the final accounting sheet (the HUD document) this “paid amount” is deducted from the seller’s proceeds and credited to the buyer, offsetting their closing cost.
    In negotiation the seller will often add the requested credit to their bottom line price for an acceptable offer.  This means that the buyer has actually just paid more than the market price for the property in order to spread out their closing cost over the lifetime of the loan.
    This is a good deal for the buyer only if:

    • The buyer doesn’t have a lot of cash for closing, or
    • The buyer would rather keep some cash on hand for remodeling.

    The risk is that the home won’t appraise for this inflated amount.

  • It’s Grrrrrrreat!

    Posted on January 16th, 2011 admin No comments

    I’m sure it seemed like a good design idea at the time, but $20 in paint and 2 hours time would earn this seller $2000.

  • Questions that Salt Lake Home Buyers Always Ask (#6)

    Posted on January 7th, 2011 admin No comments

    I don’t want to write a back-up offer. Won’t the listing agent call if the first offer falls through.

    Don’t count on the listing agent doing what you (the buyer) want them to do.  They often “forget” to make that call.
    If the home attracted multiple offers the first time, it may very well do so again.  If you have a backup offer in place and the first offer fails, then the sale immediately reverts to you with all the normal due-diligence time periods.
    A properly written backup offer is pretty much risk free.  The earnest money check is not even cashed until the seller notifies you in writing that your are in first position.
    However, if you can really live without this house and can risk a divorce action over the loss then yes, the best negotiation is to play it cool.  But have your agent “tag” the listing on the MLS system so that they are automatically notified when the sale fails.

  • Real Estate Rorschach Test

    Posted on January 6th, 2011 admin No comments

    I see a very long time on the market.