Ramblings of a Baltimore area Realtor

Get knowledge. One thing you'll probably feel during this transition time is being out of control. It feels like everyone else has taken over your life. The seller, your lender, the appraiser, the inspectors; all have the power to say yes or no to your moving plans.  Your real estate agent and loan officer  will do their best to let you know ahead of time what your expenses will be, and what the unknowns are so you shouldn't have any nasty surprises down the line. They'll tie down the loose ends as soon as possible. 

They'll try to get your loan approved within a reasonable time frame. They'll educate you as best they can and let you in "behind the scenes" so you won't ever feel uninformed or out of control. 

Don't be afraid to ask questions and demand answers.  No question is a stupid question only the one you don't ask.  Read everything there is to read and take the first time home buyer classes.  Knowledge is key to success.

Trust in the process. There's just so much to do, it's easy to panic. You wonder if it will ever work out. You think you're taking a big chance, but the truth is you're giving yourself a big chance.   Even though you can't see every step of the way, as you move towards your goals, the way opens up.

Trust in your team.  If you have chosen the right agent, the right loan officer (not a dot com lender), the right home inspector and the right title company things will move along fairly smoothly.  If you are feeling paniced call your agent and let them know and let them take the heat off and help you relax a little.

Anytime you move, it's a major upheaval in your life.  But your real estate agent can help you. Trust that they know the way to get you there. 

I thought I might have had a settlement on Monday.  As I said a couple days ago I thought we had resolved everything.  But, alas, it's like a Shakespearean tragedy.  There was all too much drama in this transaction for a small shell of a house that needs to be fixed up.

At the 11:59th hour after the buyer and the seller had signed all the documents the attorney who over saw the settlement decided he wasn't going to give it his blessing and sent the wire transfer back to the bank.  The buyer behaved so badly that the attorney refused to close the deal.  Has anyone ever heard of such a thing?  In over 20 years I've never experienced anything like this.

So, my seller refuses to release the deposit back to the buyer, we're now out of contract.  But, I did put it back on the market last week and we got a back up contract which we're moving ahead with so all is not lost.

Buyer's agents beware you need to keep your buyers under control at all times because you could find that the deal won't be completed if you don't.  The agent lost control of his buyer about a month ago and the results are ugly.  My seller wanted to terminate the contract last week but the buyer insisted on settling. 

So, now what?  I'm still waiting for my attorney to call me back with his take on the situation.

I am supposed to be on vacation this week.  The settlement on my deal from a very hot place was supposed to settle on the 15th and finally, settled today, I think.  The reason I think...

I arrived at the attorney's office at 3:30 with my client, the seller.  And, we waited, and waited.  The buyer was settling simulataneously in Cleveland, Ohio (we're in Towson, Maryland).  This in itself isn't uncommon, I had one a month ago settle in California and Towson.  The loan product was a 203K, the buyer's agent a new guy that might have 2 brain cells to rub together.  The agent tells me that the buyer is going to use most of the money to purchase other property not improve the one she's buying (and not living in).  I checked with my attorney who tells me my only obligation is to my client, the seller.  The buyer's agent last Monday told me he'd faxed the loan application to the lender with his buyer's information on it (she hadn't filled it out correctly), turns out that's not what the loan officer was waiting for, nor had he faxed anything to him.  Right after he hung up from me he called the loan officer and told him he would fax him the contractor bids and licensing information that night.  Right after I hung up the phone I called the loan officer and found out the agent had lied to me.  Not only that, but he hadn't informed the title company that there were going to be two settlements - one here and one in Cleveland.  I think that would be important. 

During the whole process I am now on a first name basis with the buyer's agent's broker, this is never a good thing in my opinion.

So, this afternoon my client and I go to the attorney's office and sign all the necessary paperwork and I am to go back there in the morning and pick up the checks and deliver them to my seller and to my office.  About 6:30 I get a call from the buyer's agent, asking me what the heck happened.  I'm dumbfounded, as far as I knew it was over with (thank God) and I would collect a commission tomorrow.  The buyer so badly pissed off the attorney in between all this that he refused to complete the transaction and send the loan package back to the bank. 

I called the loan officer and said that I had spent the better part of an hour explaining how when things appear to be too good to be true they probably are to a 9 year old.  He chuckled and he thinks we'll be able to iron this out in the morning.  I sure hope so, because this transaction started in April and should  have closed on May 23 and my seller is about ready to choke someone, thankfully, he still loves me.    So, I had a settlement today, I think.  Tomorrow I might know if I really did or perhaps it was just too good to be true.

Be flexible. In your monetary calculations, over-estimate by at least a thousand dollars. In this market, anything can happen between contract acceptance and closing. It could be that the inspections reveal areas of concern that the seller is unwilling to fix, or the repair costs are higher than the amount limited in the contract.  Or the interest rate changes, which affects the necessary down payment and closing costs you will need to come up with. As your real estate team, we will strive to tie up loose ends as quickly as possible, but remember there is no perfect world.  Most buyers feel a bit overwhelmed when taking on a new mortgage and the responsibilities of a new home, and many buyers get angry when it seems like costs just keep escalating.  It is wise to choose wisely when surrounding yourself with a good team and ask the advice of your agent when choosing a mortgage company and title company and having an agent that is calm really helps keep the stress level under control for you.

Anger is caused when reality doesn't match up with the expectations.  If you don't have extremely high expectations, then when things turn out fantastic you will feel much more satisified in the end.

So if you anticipate this happening in advance, you won't get angry. In fact, it'll probably go better than you expected. 

I was asked an interesting question of possible fair housing today.  And, I thought it was very interesting and could see arguing both sides of the fence on it, but which is correct and which is ethical, the area is very grey and under what grounds can you say "no, I won't list your house"?

One of my agents came to me today asking what he should do about this listing opportunity he has before him.  The seller has a lovely home that should under normal circumstances sell well.  It's in a nice area and in good condition and in a good price range.  And, you might already be wondering, so what's the problem?

The seller has a room in his home that could be construed as offensive my a large segment of our population and maybe even horrific by some. 

My suggestion to the agent would be to ask Mr. Seller to prepare his home for sale and neutralize it.  Which means he must make his home appeal to the vast segment of the population which would include removing valuable items that could be stolen, removing some pictures from the walls, some decorative pieces and perhaps some religious items and icons so that the home would be completely neutral.  But then the question came up as to freedom of speach and freedom of worship and one's right to freedom of speach and so on.  I don't know what the answer is.  I can argue both sides. 

Personally, I would not accept the listing if the seller would not neutralize the home.  An agent does not want to waste their money on advertising and marketing a home that a large segment of the population may find offensive.    I have no problem saying no to sellers (and buyers) who won't be reasonable in their approach to selling or buying a home.  But, do all agents look at it this way?

Begin with the end in mind. Have an ultimate scenario of where you're trying to be that you've developed with the help of your realtor. What will life be like when you get there? How will it be better than where you are now? Dwell on that picture and write it out, fill up at least a page about how it feels in the new place. This is really important.

Having the goal in front of you at all times energizes you to achieve it, in spite of setbacks and frustrations.  I tell my new agents to have a photograph or drawing of something they want to achieve and pin it to their bulletin board or desk so they can see it all the time.  Keeping your goal in site will help you from getting discouraged. Emotions will run high and you need an anchor. In childbirth, the Lamaze method teaches you to focus on one spot while experiencing excruciating labor pains, all the while anticipating the treasure that is the result of all your efforts.  In the same way, you too have to focus on that future goal of owning a home when anxiety threatens to get the better of you. 

And, hopefully your agent will make the transaction so easy for you that you won't be that stressed.

I'm a brand new office manager and one of my first duties as manager was to increase the number of agents in our office.  Our corporate office suggested that we subscribe to a company called Recruit Tool.  It seemed like a good idea at the time and we're over a month into the service now.  And, I can't say as it's the fault of the company.  They have been doing what they set out to do and that is book appointments.  However, of the 16 appointments they've booked I had 2 agents show up and 2 call to say they couldn't make it.  Recruit Tool booked the appointments, followed up the day before to confirm the appointment but the agents just haven't been showing up.  Another of our offices has had the same results and it's very frustrating.

I thought about it today and you know, I think it's a result of the type of service it is.  I think if I picked up the phone and called the agent direct and set my own appointments that the agents would be less inclined to ditch the appointment.  I told that to our corporate office and I think we'll be cancelling our subscription and we'll muddle along on our own and I'll concentrate more on recruiting directly and see if I have any better results.

Anybody have any opinions?

Make the Right Choice

Choosing which home to purchase is the critical phase of your search - make sure the house is right for you before deciding to buy. Consider your wish list, the location, and the price when making your final decision.  Be sure you take into account the finances and over estimate so that you'll be pleasantly surprised at settlement.

Location Location Location

You've already researched the community in general terms - now it's time to take one last look at the neighborhood to make sure it's the right place for your family. Consider your route to work, the local shopping - anything that affects your lifestyle and daily routine.

Just the Details

Make sure the house is right for your family and lifestyle. Will your furniture work out? Is the yard big enough? Does the layout work well for your family's routine? Check through your wish list and notes to make sure you're not forgetting anything.  Remember the skin can always be improved as long as the house has great bones.

When in Doubt - Don't

Don't buy a home out of frustration or impatience - this is a major investment and it should be treated as such. If the market is strong or your standards prove to be unreasonable you may need to revise your expectations before continuing the search.  Don't let your agent push you into making a decision on a house you doubt will be the right one.  But also remember people rarely buy their dream home the first time around, they save that for later in life.

A word of caution - sellers create ads solely to make the phone ring! Many homes have some drawback not mentioned in the ad, such as traffic noise, power lines, or litigation in the community. What's not mentioned in the ad is usually more important than what is.  For this reason, be very careful when reading ads.  Remember that the person writing the ad is looking for a buyer and not necessarily one for that property!  The most important thing you can do is to have someone on your side looking out for your best interests.  Your own agent will critique the property with an eye towards how well it meets your needs, and will point out any drawbacks you should know about.  So pick a real estate agent you feel comfortable with and enlist the services of that real estate agent as a buyer's agent.  And, let them do their job and let them call the ads and look up the signs for you.  Then you become a client with all the rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper.  Did you know that many homes are sold without a sign ever going up or an ad ever being put in the paper? These "great deals" go to those people who are committed to working with one agent.  When a real estate agent hears of a great buy, who do you think he's going to call?  His or her client, with whom they have a legal obligation to work hard for, or someone who just called on the phone and said "keep your eyes open"?  To get the best buy on a property, find your own real estate agent and stick with them.  And, remember representation may not cost you a penny, the seller generally pays the commission so why wouldn't you have an agent looking out for you?