Crash!

"Hurry, hurry," I shouted at my son. "We're going to be late for your guitar lesson." We jumped into the car and quickly made the three point turn my driveway requires to head up and out to the street above. Crash! I had backed my new car into the SUV my husband had parked in the driveway earlier. My stomach turned and my head dropped as I got out to survey the damage. While the twelve-year -old, rusty Land Cruiser proudly stood intact, the entire right rear corner of the Infiniti's fender was crunched and badly bent. I tried to console myself with the knowledge that I hadn't taken both cars out in my haste, but to little avail.

"What happened my husband asked later that evening?" Struggling to find an explanation for my stupidity, I finally said, "When you move through life quickly, there are consequences to your actions." He smiled. Having been married to a woman who has the bulk of her housework completed, the garden watered, e-mails answered, bills paid, the dog walked, and my exercise class out of the way before 9:00 a.m. on most mornings, he understands all too well the speed at which I move through life.

While this can work to one's advantage when we're talking laundry, moving quickly through a Real Estate transaction can have disastrous results. Too often buyers spend months finding the perfect house, only to speed through the offer process with little more consideration than what price to pay.

While I am the first to admit that handing a client a disclosure packet that is roughly the size of one's local phone book, often results in the buyers never reading the package at all, taking the time to read the disclosures carefully is one of the smartest and most important steps you will take in any Real Estate transaction. Use a highlighter while reading the inspection reports and highlight any and everything that may be of concern. Thirty minutes later, you will have a much better sense of what you are actually purchasing. Given that starter homes in the Bay Area begin at half a million dollars, doesn't it make sense to spend those few minutes reading the description of your future home and discovering what work lay ahead?

Conversely, when you are on the the listing side - taking the time to fill out your Seller's Real Estate Transfer Disclosure Statement thoroughly, protects you from future law suits that rely on "failure to disclose." Even with what you thought was full disclosure, problems can still surface later - on items you "forgot" about or thought were inconsequential. Be complete. Search your memory and write down everything, no matter how small. I once had a client disclose that "raccoons pooped in her backyard." Silly as it sounds, it didn't surprise the new owners who quickly acquired a Golden Retriever and solved the problem.

I am often asked , "Is this something I need to disclose?" My response is, that if you need to ask, the answer is "yes." Disclose the scratch on the hardwood floor under the rug. Disclose, the argument you had with a neighbor over the fence (even if it was a decade ago). Disclose, the deer that visit your backyard at night and eat your roses. Disclose the water that backs up on your patio and creates a small lake each time it rains. Disclose the grease stains in your garage. No matter how unimportant these items seem to you, they may become potential time bombs to a perspective buyer - especially when they are discovered, after that buyer takes possession.

Take your time . . . have your home inspected thoroughly, address potential problems before putting your home on the market, and disclose everything - even those items you have corrected. Don't make a wreck out of the purchase or the sale of your home.

And . . . when backing up in a car, check your rear view mirror!

Snap!

Snap! My son hit the ground, pain etched into his expression. He had pulled his hamstring while running to first base during his high school baseball team tryouts. In that one split second, he had virtually eliminated his chances for a spot on the team. A freshman with promise and a love of baseball, his season was over before it had even begun. From high hopes to dashed dreams, all I could do as his mother was offer my sympathies, some Tylenol, and an ice bag for the swelling.

Missing out on ones dreams is scenario buyers often face as well. Intent on purchasing, they can find their hopes dashed in one swift move by a quick agent and a willing buyer. Well-intentioned buyers who hesitate at the plate are finding that a more aggressive buyer has snapped up the property they waffled over. When that happens, the only thing their agent can offer is his/her sympathy and some Tylenol for the pain!

Whereas listings of the past few years followed a pattern of two Sunday Opens, a Brokers Tour, and then an offer date (with multiple offers being the norm) sellers are now welcoming the "bird in the hand" and are more often listening to offers as presented. With press reports that have left some sellers feeling less than secure in the market, a willing, able and performing buyer is more appreciated than ever. Savvy sellers and experienced agents know that the first offer is usually the best. Waiting to see if a second offer comes in higher almost always results in a poorer outcome. And giving perspective buyers too much time to ponder a property’s defects can result in fewer buyers in the game altogether.

So what is the moral of my little baseball analogy?

If you are really intent on buying, step up and bat. Pent-up demand is high and the few desirable properties now hitting the market are flying off the shelf in a few days, not a few weeks. Even if you don’t hit a home run the first time up, each property you lose serves to refine your skills, define your priorities, and educate you about the process. You may not hit it out of the ballpark, but eventually, you’ll get on base. There’s no shame in striking out swinging, but there is real dissatisfaction in never taking a swing at all.

Expectations

"I don’t like it when you give me a list of stuff to do," my teenage son said to me. "You always have these expectations. I DON’T HAVE EXPECTATIONS FOR YOU WHEN I COME HOME!"
"Oh yeah?" I replied. "What do you call dinner and laundry for the last fifteen years? How about needing a ride to baseball practice every day? Aren’t those expectations?"

The truth is families have all kinds of expectations, implied and otherwise, from one another. It’s the main theme that runs through families and marriages. If we didn’t, I suspect none of us would ever take the step of matrimony, much less parenthood. We have a pact with one another, both spoken and unspoken, that we can rely on one another, that we mitigate each other’s shortcomings, that we play to our strengths, and that we work as a team. That being said, verbally listing your expectations to your teenager, is the only way that one can expect the bed to get made, the dog to get fed, the garbage to go out (there I go with the expectations again). Anyone with kids knows that teenagers aren’t very good at intuiting your needs.

Realtors aren’t necessarily good at it either. While our goal is to meet your needs, both spoken and unspoken, unless you are open and honest with us, we will fall short of your expectations. Trusting your Realtor to keep strictly confidential with your personal business is the first and most important expectation. Beyond that, the methodology is a matter of negotiation. How pressed are you for time? How do you prefer to communicate? What information do you need? Are you a numbers person that likes to analyze the market? Do you want to get your home ready to sell on your own or would you prefer I handle every detail of the transaction from staging to window washing? Do you need your Open House guide mapped out on a weekly basis or do you prefer to wing it?

Just as you have expectations of your Realtor, your Realtor has expectations of you. Are you really a committed buyer or seller? Have you connected with a bank or mortgage broker to get qualified and pre-approved? Are you open to suggestions as to how best to market your property? Are you realistic in terms of what your property is worth or what your dollars will buy? Have you begun putting your house in order? Are you communicating your likes and dislikes after viewing properties? Are you respectful of the Realtor’s time restraints and demands? And if something doesn’t meet your expectations, have you let your Realtor know?

Like a marriage, there is a lot of navigating to do as the relationship is formed.
In the end, listing one’s expectations loud and clear makes it easier for everyone involved, prevents miscommunications, avoids hurt feelings, and keeps relationships healthy and intact – even with teenagers.
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Why Shouldn't I Buy Privately?

A friend from Palo Alto recently phoned me to say that she and her husband may have the opportunity to buy a property privately. After working with an agent on and off for the past three years, she wanted to know whether or not she should pull her agent in or cut her out. In this instance, it would mean that the buyers would be paying their agent the commission instead of the sellers.

As an agent, I am obviously biased, but I think one should always work with a Realtor, whether or not one has an opportunity to buy a property privately. While previewing and showing our clients is a large part (and a time-consuming part) of our job, ultimately it is the least important aspect of what we do. With Sunday Opens and immediate access to the Internet - where over 80% of buyers now begin their search - it is very common for a client to e-mail me about a property before I have called them. This makes sense when one understands that I am typically looking for half a dozen clients at any one time, while each buyer is intent on finding their one perfect home. The Buyer and the agent work as a team and the more eyes on the market at any given time, the better your chances of finding the ideal property.

In the end, it is our experience that brings real value to to the process. It is our education and familiarity with the contract, with protecting the buyer and the seller in the transaction, with full disclosure, with negotiating back any credits that might be necessary to overcome obstacles, and with knowing all of the players involved, from agents to inspectors to appraisers, that makes us a valuable commodity in any real estate transaction. And while buyers are often very knowledgable about pricing within their given search neighborhood, your Realtor should quickly be able to compile a list of recent home sales that help determine true value.

A private transaction almost always results in one of two outcomes: either the buyer is overpaying, or the seller is underselling. Since the market has been bypassed, determining a fair value can be extremely tough without an objective third party. (Buying or selling a home is probably the least objective thing we do, save for falling in love!)

So before you abandon your Realtor for a "perceived" savings on commission, ask yourself what you are really saving. With homes in the hundreds of thousand of dollars, and in my friends case, the millions, isn't it worth a relatively small commission to know that all of the i's have been dotted and the t's crossed? Isn't it worth it to know that you've inspected the home and are well informed as to what you are purchasing? Isn't it worth it to have a representative that is truly interested and motivated to protect your rights as the buyer? (Did you even know you have legally mandated rights as the buyer?) You do.

Yes, a good Realtor can make a handsome living, but we carry a lot of responsibility throughout the process and we should, and do take our duties seriously (I have personally spent more than a few nights awake worrying about the details.) A good Realtor brings value to a transaction and a great Realtor is worth her weight in gold. So while foregoing a Realtor may seem penny-wise, it could prove to be incredibly pound-foolish. Rethink the idea of abandoning your Realtor - especially in a private transaction. There is simply too much at stake.