This is the time of year when I start gearing up for next season. I'm not exactly hanging out early Christmas decorations like most retailers already have . . . (are stores just skipping Thanksgiving altogether now?) but I am certainly preparing for what lies ahead in the New Year, Real Estate wise.
In some cases, I am meeting with bright-eyed, bushy-tailed Buyers, newly entering the marketplace for the first time and wondering what they will be facing in 2014? (In a word: Competition!) In other instances, I am consulting with long-time Sellers who are prepping for the Spring Market and preparing to finally let go. (Shall I introduce you to some of my Buyers looking to find a way in?) Not surprisingly, both Buyers and Sellers are wondering what's in store as they move ahead? (Good news, the Spring Market looks to be incredibly robust.) AND in both cases, there's a bit of "Speed Dating" going on as Buyers and Sellers meet with REALTORS to decide if both parties are a "good fit," and how and when to best proceed . . . (Match.com?) While I like to think that I have been married long enough to have bypassed the adventurous world of Internet dating, I might be fooling myself. In fact, I'd venture to say that shopping for a REALTOR is a lot like dating online. According to industry experts, I've got only four seconds to catch your attention before you move on to someone else. (Oh dear, how's a girl to make a good impression?) In ALL cases, there's a fair amount of trust and chemistry that needs to develop in short shrift. (Love at first sight? Not always, but that doesn't mean we can't still be very good friends.) Still, the idea of speed should never be far from our intentions. Both when it comes to selling your home, or when it comes to buying one. The simple truth is that the sooner we get on with the business of the day, the better your outcome is likely to be. As much as we enjoy one another's company, you really don't want to remain in a long, drawn out affair with your REALTOR (although I did once have a client who I'm pretty sure thought we were dating and found it impossible to commit to a house. Eventually, I had to break up with him.) Early this week, I met new Buyers and explained the buying process like this: Choose a REALTOR, meet with a Mortgage Broker/Lender, set a price point and timeline, visit Sunday Opens regularly, narrow and refine your focus, identify a home, revisit it with your agent, write an offer, negotiate on price and terms, ratify the contract, open escrow with a Title Company, undergo inspections, renegotiate when appropriate, establish homeowner's insurance, remove inspection contingencies, remove loan and appraisal contingencies, sign escrow papers, fund the loan, record title, and pick up the keys! Congratulations, you are a new homeowner! (Whew, try saying that in one breath.) For Sellers, it goes more like this: define your goals, your timeline and your expectations, gather information pertinent to the sale of your home, purge closets, attic, and the garage, pre-inspect the property, repair where indicated, install smoke and CO2 detectors, strap the water heater, paint and professionally stage your home, power wash decks and patios, clean windows inside and out, landscape the garden and freshen pots, AND hire a LOCAL REALTOR to guide you through these many steps and to thoroughly explain the costs of selling your home. ( BTW - your agent shouldn't come last on this list; he or she should come first. Remember, we are here to help you navigate these murky waters, not drown in them.) Whether Buying or Selling, may I encourage you to commit to ONE REALTOR - unless you are looking at several different geographical locations (San Francisco, Marin, the East Bay). In that case you just may be better served by meeting with a neighborhood specialist in each community - with the caveat that you let them all know you are playing the field . . . Listen, no one wants to waste anyone's time here; time being a commodity of which there never seems to be enough of. But if you are looking for quick results, the more preparation and clarity upfront, the better I can meet your needs and expectations. Plus, you've probably got a bird to stuff, or some decorations to hang. Yes, the holidays are definitely upon us. (Hey, I'm coming up on Volume 300. I don't know if that's commitment or crazy! Look for a celebration of sorts.)
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Last week, several of my colleagues and I attended a seminar at the Golden Gate Club in the San Francisco Presidio, given by Matthew Ferrara, a motivational speaker hired by The GRUBB Co. and its group of affiliated Real Estate partners. The talk was entitled "Igniting Growth; Mixing the Personal, the Professional and the Possible . . ." (Gee, that's an ambitious goal.)
Friday morning emerged as was one of those rare, warm, sunny, fall days in the city and truth be told, I wasn't exactly looking forward to another "self-help" class featuring a looong lecture on the merits of "social networking" and how to better "capture" your audience, while realizing one's full potential. (Who the heck wants to be "captured?" I was just trying to kiss-up to the boss.) I get it: Twitter, Facebook, Linkedin, Instagram, yada, yada, yada. Enough already! Aren't we all exhausted just trying to keep up with our own lives, let alone the comings and goings of others . . . ?(Let's just concede that your kids are ALL very darling in their Halloween costumes.) Still I had signed up for the event, had offered to drive, and had already plunked down my share of the fee for Mr. Ferrera's "social media" workshop (my middle-class roots prevent me from wasting hard-earned dollars) so I was committed to going, but that didn't mean I wasn't looking longingly at Crissy Field and dreaming of a sun-dappled walk on the beach instead. Here's the thing about commitment. Every once in awhile - and in spite of our inner cynicism and inherent grouchiness - the process of just showing up, allows some real magic to take place. That's what happened to me courtesy of a fantastic teacher and a timely message. (Thank you Matthew; I think we're on a first name basis now.) Mr. Ferrara started off the seminar by relating a story about his own work, the roadblocks he had hit along the way, his less-than-seamless journey, and his ultimate destination, and then asked us each to answer a question for ourselves: "What are you really working for?" (Hint: If it's a 'commission', you've picked the wrong answer.) As the morning progressed, he continued to engage us by encouraging the group to outline a "Personal Plan," BEFORE outlining a "Business Plan," and to develop a "Moral Compass." In other words, Matthew was asking us to truly embrace our "Emotional Intelligence" (EQ), not only in the world of business, but in life as well, and THEN merge the two in a way that is truly organic, and authentic to each of us, specifically. (In short, become a more fully realized YOU!) Sounds like a VISION QUEST to me. Now that I get; lightbulb Moment. . . This all might seem a bit touchy, feely for the world of Real Estate, but in fact, the act of purchasing a home is almost entirely about one's dreams, about the stories we tell ourselves, and about helping people transition from one chapter to the next - often under incredibly stressful circumstances. In short, it's about EMOTIONS! If your Realtor's motivation is just the projected commission he/she hopes to earn, then your Realtor is certainly selling you short. With respect to selling your home - the emotional component is no less important. Undoubtedly, you have entrusted your Broker with the responsibility of guiding you from point A to point B on a path that's not just productive, but creative as well. You are counting on your agent to bring you the best possible result and that's accomplished NOT by dissecting your house into the sum of its parts (as in: 3 bedrooms/2 bathrooms, kitchen w/newer appliances) but by "telling the story" through words, photos, video, and especially, through emotion . . . Finally, Matthew invited us to capitalize on our strengths and rethink our weaknesses, and he offered these alternative solutions instead: A) become adequate at your shortcomings, B) outsource them (what a concept), OR C) rid yourself of them entirely (my favorite). At long last; permission to let go of those skills we don't actually do so very well (or care to learn) and concentrate our attentions on the things we actually do! (This may be true love, Matthew.) Listen, Real Estate isn't just a business, it's an art, and in my case, it's also a passion. But with respect to you, it's your HOME. Remembering that, first and foremost, and then developing a tool belt that not only provides success, but provides a happy ending as well, was well worth a morning inside, even if the sand dunes and the Warming Hut were calling my name in sea-breezed tones. By the end of the morning, it was clear that by integrating the personal with the professional (and adding a bit of heart & soul along the way) the possibilities are virtually unlimited. What's your quest and how can I help you? (Hey, I'm coming up on Volume 300! I don't know if that's commitment or crazy! Look for a celebration of sorts.) In honor of Halloween, I like to tell you a VERY spooky story. Before leaving town last summer to visit my college-age son who'd taken a seasonal job in North Dakota (no, that's not the spooky part) I called our long-time insurance company to make a claim for a broken passenger window, only to discover that they had canceled our car insurance (surprise!) back in January.
Say what?!? "Do you mean to say that I've let a teenage boy drive around for months with NO insurance?" I incredulously asked. (It appears so.) This carrier had not only covered our cars for years, they had also insured our personal residence, thus the cancellation had resulted from a glitch with cross payments between the two accounts - a recurring problem that I erroneously thought I had straightened out several months earlier. "We'll reinstate you - again," the agent finally conceded,"but we'll have to charge you for the back payments you missed, and add a 'reinstatement fee'" (aka: a penalty). "I didn't miss them," I curtly replied, "the invoice is on 'auto-pay'. Billing didn't apply them to the correct accounts; that's on you. Why would I now pay for insurance your company hasn't been providing for months?" And so the conversation devolved . . . Frustrated, I finally called a competitor and promptly switched carriers on the cars, AND just to teach my old insurer a REAL lesson, I transferred my home owners' insurance policy a few days later . . . Here's where it gets scary. Three weeks after switching to a new insurance company, they canceled ME! "Your home has large trees on the site, pine needles on the roof, cracks in the driveway, and sits on a down-sloping lot," the letter stated. "For these reasons, your property does NOT meet the underwriter's current insurance guidelines . . ." Huh? Concerned, I called our new providers to clarify their position. "Listen, you invited me to move over ALL of my insurance needs," I insisted, "and I did. Certainly, you could have asked me about these specific characteristics when we went through the long questionnaire over the phone, BEFORE I cancelled my previous insurance. "Some things are impossible to know until we see them," the unsympathetic representative nonchalantly replied. "You don't meet our company's criteria. Sorry." (Nightmare on Elm Street!) "Redwood trees on a property or a down-sloping lot aren't 'impossible' to know," I spit out irritably. "It doesn't take a site visit to ascertain these restrictions and I would have happily supplied full disclosure had you simply asked the questions. In fact, if I'd known these factors would automatically reject our property out of hand, I WOULDN'T HAVE CANCELLED MY INSURANCE POLICY WITH MY PREVIOUS CARRIER!" (Tough luck.) Now scrambling, I phoned my previous insurer and much more politely suggested they reinstate our insurance, only to be told they wouldn't, unless we installed a security system on the house and paid substantially more. Wow; "Trick" or "Treat?" What's the moral of this haunting tale? Look before your leap? A bird in the hand? Restraint of pen and tongue? (You tell me.) All I know is . . . this could have been so very frightening. Unfortunately, home insurance in the state of California IS getting tougher and tougher to come by. It's why I encourage ALL of my Buyers to shop for home insurance immediately once they find themselves in escrow. Given California's penchant for unpredictable wild fires, earthquakes, landslides and other such natural disasters, securing home insurance has become increasingly difficult, and in some rare cases, nearly impossible to obtain. (Note: If your home carries a mortgage - as most of them do - you CANNOT close escrow without homeowner's insurance lined up, AND even if you have been lucky enough to buy your house in an "ALL-CASH" play, it would simply be foolish NOT to insure this very valuable asset.) Long story short? I did manage to finally get insurance with a third party via the help of an insurance broker, but I am paying MORE than I used to and I am less than thrilled with the insurance industry as a whole. In fact, I'm rather peeved (both at myself for not understanding the consequences and at insurers for being less than helpful). In the meantime, Cliff is diligently keeping the pine needles off of our roof, we are exploring bids to repair the cracks in the concrete, and I am holding my breath that another letter isn't heading our way that blames the down-sloping topography as a reason for immediate insurance cancellation. (There's absolutely nothing we can do about the lay of the land.) Good thing I've got a fresh supply of candy and chocolate to ease the stress. Happy Halloween! What’s New? Did you feel the chill in the air this week as the fog descended and fall made its presence known? BRRR . . . I pulled out a heavy black overcoat and threw it on prior to heading out my door to the Educate Our State luncheon in San Francisco, where I anticipated the weather would be colder still (it was). That dusty coat has been idly sitting at the back of my closet for months, thanks to our glorious California sunshine and fantastic autumn temperatures. (Hey, it’s already snowing in other parts of the country. Give thanks.) Here’s the thing, I’m a gal who’s all about the pockets and whenever I put on a jacket, I usually find a nice surprise (or two) tucked away, that has been long forgotten. On Wednesday, it was a handyman’s business card (always useful), a fabulous lipstick (ohhh-la-la), and a twenty-dollar bill. Eureka! “Candy-coated popcorn, peanuts and a prize . . . that’s what you get in Cracker Jacks”. Don’t you love these kind of surprises? (Yes, I do.) On the other hand, there are those kind of surprises that are far less welcome. Fortunately, with respect to Real Estate, many of these “glitches,” such as poor inspections or ambiguous easements, can be somewhat anticipated AND corrected before they turn into ugly negotiating issues down the road.(Don’t wait for the Buyer to conduct inspections once in contract. Do these pro-actively!) However, some surprises aren’t so quickly accommodated or rectified. This week, Brady Thomas, of LaSalle Financial, popped by The GRUBB Co’s Tuesday morning office meeting to give us a little POP QUIZ on personal credit scores, the significance of them to you – the borrower – and how they are established and managed over time . . . (Think of these as your own personal, grown-up SAT’S!)
And for those of you just wondering: a “Perfect Credit Score” is 840 points; 760 is considered “excellent;” 720 is “on par;” a score below 700 becomes much more difficult and costly to the borrower; and lastly, a score below 640 doesn’t stand a chance of finding legitimate funds anywhere in the banking world. (How’s your relationship with with your mother?) So there you have it. Your Credit Score might not be the most exciting topic on which I’ve ever spoken, but it’s likely to have the biggest impact on your ability to borrow throughout your lifetime. Protect your credit score, nurture it, and honor it, the way you would your children. On second thought, protect your credit history MORE; your children will have to find their own way eventually. In fact, maybe it’s time for them to establish their own credit and get on with it. Now where’d I put that twenty-dollar bill? I’m going to need it to pay for parking in SF . . . (For more information on credit clarification, click here) I spent Tuesday and Wednesday in bed, having come down with a bad case of vertigo and distracted myself with marathon TV, waiting impatiently to regain my equilibrium (I'm now caught up on EVERY serial program ever made). Frankly, I think one should never walk into walls unless there are massive quantities of tequila involved, and I retired those days LONG ago (gratefully)!
As I fumbled through the channels in the wee hours of the morning, I came across Broadway Idiot; the documentary on Green Day's journey to "The Great White Way." This engaging and honest film charts the band's collaboration (specifically, Billie Joe Armstrong's collaboration) with director and playwright, Michael Mayer, and orchestrator, Tom Kitt, to adapt Green Day's highly acclaimed album, American Idiot, into a full-fledged rock opera for the Broadway stage. Given the top-notch talent of everyone involved in the project from actors, to set designers, it isn't surprising that the successful adaptation received two Tony Awards in 2010 and a Grammy for Best Show Album in 2011; impressive accomplishments from one of our most gifted native sons, AND a fantastic result. That's not a bad day's work (or two or three . . .) BUT what really resonated with me (since I'm not a rock star) was the willingness of Billie Joe to trust others to have a vision as equally valid as his own and to believe that this talented team would serve his objectives with respect to the songs. Even in my semi-conscious, spinning state, the lessons of collaboration came through loud and clear. Now that's a lesson we can all use, no matter our trade or vocation. Without comparing the sale of a home to an award-winning Broadway show (although it's not a stretch to say that most home sales involve a fair amount of drama) the need to trust others is often the case with Sellers as well, whenever they invite a REALTOR into their homes to offer up a marketing plan. No matter the number of years one has lived in their home, or one's level of willingness, collaboration is always going to be a large part of the process. For some, this means surrendering almost entirely, while for others, the process may take much longer before they develop enough faith to finally let go . . . (I get it.) Last week, I had the opportunity to sit in my clients' shoes as I helped my aging parents (now both in their 80s) explore the very real possibility of selling their condominium in Sonoma next spring; a move brought on by their desire to pare down and simplify their lives (and say goodbye to stairs). "The objective is to sell their home for as much money as they can get and as quickly as possible," I stated (duh) to their prospective Realtor, "How do you propose to do that and what is the timing you suggest?" Not surprisingly, the accommodating Realtors my folks had identified, suggested many of the same steps I recommend to my clients as well: inspect, repair, paint, stage, prep, and when possible, move out, in order to make showings as easy as possible . . . They arrived with sales comps in hand, spoke clearly about the market realities in Sonoma, and followed up with a detailed marketing plan and calendar of events (thank you, much appreciated). In black and white, this all sounds fairly straightforward, but it rarely ever is. The fact is, people tend to be emotionally connected to their homes and giving them over to others . . . is quite honestly, a difficult task indeed. How can a third-party opinion matter more than your own? (It doesn't; it simply serves as a reality check and a spring board.) But here are the steps my parents are taking today, and what you should consider as well - IF a sale is in your future: 1. They are beginning the process NOW, in order to sell in the Spring of 2014. (Don't wait until after the New Year to connect with your Realtor. It's never too soon.) 2. They are preparing their house and garden, purging closets, and donating items they no longer use or need. They are planting for spring blooms (by "they", I mean my mom) to coordinate with the timing of the listing and repairing any red flags that come up during the course of inspections. 3. They are visiting nearby Sunday Opens to get a better sense of the existing competition and Buyer expectations. (How are other homes presented in the neighborhood?) 4. They are tracking the sales of "like-kind" properties to better align themselves with a realistic sale's outcome. (What was the final sales price and level of activity?) 5. The are hiring locally! (A move I wholeheartedly encouraged and applaud). Having visited several opens, they have a keen sense of who their "market specialists" are and who can deliver the best result. Listen, we've all got a friend, a cousin, or a family member with a Real Estate license, but it doesn't necessarily follow that they will be your best choice come the time to sell (or buy) your home. Working locally, is the single, smartest choice you can make, which is why with respect to my parents, I am more than happy to consult from the sidelines and hand over the reigns to others I trust implicitly. In other words, collaboration is the key. In short, surround yourself with those whose vision you can trust, AND then trust the process. You're much more likely to end up with a fantastic result. (Hey, we can't all win Tony Awards or a Grammy, but the outcome should still be noteworthy, no matter the journey.) No need to walk into walls when there's so much well-intentioned help to be had. How can I help you? Thankfully the BIG BASH is behind me. Can I just say, "I'm bushed!"
Every few years I decide to open my home and my garden to clients and friends, AND clients who have become friends, AND friends who have become clients, AND potentially new clients, AND . . . (well, you get the picture). It's both an opportunity to personally thank my network for all their unwavering support, and a reminder that I still exist! This year, I specifically targeted families with young children as I had decided to rent a GIANT move screen for a private showing of Pixar's, The Incredibles at my first ever - Camp Gardner Starlight Cinema. Unfortunately, I had picked a weekend jammed packed with other conflicting events here in town, including a tri-school fundraising party, so the "no's" were coming fast and furious with barely a "yes" among the crowd. "Nobody likes me," I complained to my twin sister over the phone, "I don't think anyone's coming to my party and I'm way too old to feel like I'm not one of the 'popular kids' in school . . ." (Really? Someone call this girl a whaaambulance.) Jill politely listened to my high-octane neurosis for a few moments and then compassionately (but firmly) said: "Drop the rock, get out of your way, trust the process, and have faith in the outcome . . . it will be fine; it always is." (Jill's ALL about tough love. Maybe she should consider a career in Real Estate?) Mind you, this isn't just good advice from one sister to another, it's good advice for life - and as it so happens, it's really good advice for Real Estate - in particular. In what is, truly a unique marketplace; one where sustained disappointments are often part of the drama (believe me, multiple bidding wars aren't the norm in Dallas, Texas) TRUSTING in the process and believing that everything will work out in the end, can be very difficult to master. Or as another friend so eloquently put it, "If it's for you, it won't get by you." (Okay, I LOVE that kind of faith and certainty.) Whether you are "Zen" enough to truly embrace such a philosophy is another matter altogether (admittedly, I'm often NOT), but I have learned that when I let go of expectations, it takes a tremendous amount of anxiety OUT of the equation and opens up a whole new world of possibilities. (What a relief.) AND although the market has definitely favored Sellers as of late, it doesn't necessarily follow that Sellers are immune to feelings of anxiety as a result. In fact, I might argue that Sellers actually often exhibit MORE anxiety than do Buyers, especially if they lost a great deal of equity in their homes over the past several years and are now counting on this much-improved marketplace to make them whole once again. (Depending on their level of debt, this may or may not be possible.) The truth is, that while Buyers tend to feel gratitude for their agent's guidance - no matter the outcome - Sellers can, and often do, feel far more conflicted as they struggle to let go of "the dream", even when the result has positively outperformed their expectations. (Drop the rock.) "Trust the process - everything will be fine; it always is." As it turns out, my anxiety-producing shin-dig ended up being far better attended than the RSVP's would have lead me to believe, and WAY more fun than I had possibly imagined (Whew, I'm still recovering). It was a joy to host friends, neighbors, and colleagues in my home for a change and to share what turned out to be a truly magical evening under the stars. In a word, it was simply "Incredible." Thank you to those of you who came and to my faithful sister Jill, not only for her emotional guidance, but for all the physical help by way of cooking, cleaning, serving . . . (I owe you MORE than one.) Maybe I'll make this an annual event (that's just crazy talk) but whatever the function, whatever the challenge, I will ABSOLUTELY try to have more faith in the outcome. Isn't it just easier that way? How can I help you? There's rarely a week that goes by when a Buyer, Seller, or an acquaintance doesn't contact me in panic about the undervalued bank appraisal they just received on their refinance or equity loan.
I know exactly how you feel . . . Bank appraisers are like meter maids - they have a penchant for ruining your day. Cliff and I have been considering a kitchen remodel for years, so when our friendly, local banker asked us if we would like to increase our current equity line (now that home values have improved considerably), I jumped at the chance. Who knows when banks will tighten the flow of funds once again? "We don't actually have to spend the money," I explained to my reticent husband, but if we DO decide to move forward, we know the dollars will be available to us." (Of course, I'm hoping we spend the money; I need a new kitchen, like yesterday.) Moreover, IF we should decide to sell when our youngest heads off to college, the kitchen will need a sizable face-lift anyway (I know these things.). Why not enjoy the benefits of a new and improved kitchen while we still live in the home? Having successfully persuaded my husband (sort of), I gathered our tax returns and obediently handed them over to Wells Fargo. Since we already have an equity line in place, expanding it, was simply a matter of confirming our income and ordering a new appraisal. "Congratulations," Patty said a few short weeks later, you and Cliff have been approved for the additional dollars." "That's great," I responded, "So where did our house appraise?" That's when the bomb went off . . . Say what? Never mind my short-lived joy at having been approved for the larger loan and the fact that I would soon be meeting our architect to finalize plans, I was admittedly upset at the Appraiser's failure to understand the true quantitative value of our home. I'm not referring to its "market value," I am talking about its actual WORTH! And because I am a REALTOR by trade, I had even arrived with comps in hand to help the Appraiser along. Clearly, she had ignored my informative prompts. I get it, banks are conservative by nature with respect to equity lines (and probably should be) and our house is difficult to accurately appraise. While it's not GRAND by Piedmont standards, it is fairly unique; offering 4 bedrooms/3 new bathrooms, beautiful gardens on expansive grounds, a picture- worthy gazebo, a swimming pool, a separate cottage & office, and a batting cage! (What's not to love?) AND given that a similar style home in the center of town had just set a new sales bar, I assumed the Appraiser would be equally impressed. That certainly wasn't the case - not by a long shot. Based on that sale, her appraisal was at least half a million dollars off . . . or more. (Ouch.) Here's the thing, appraisals are just one person's opinion of value; they actually tell us nothing about what the market will bear, OR where the house will sell. In reality, the appraisal (anemic as it was) did exactly what it needed to do - it got us the funds to (potentially? absolutely!) remodel the kitchen, so what's my BEEF? Who cares what the appraisal says today when Cliff and I don't have plans to sell the house for several years to come? Okay, here it is (although I'm loathe to admit it) like many homeowners, I have a fair amount of EGO wrapped up in my house. (Do tell?) I don't just sell homes, I am passionate about them, and about mine in particular, which has evolved into something I believe is truly special. (Sound familiar?) AND to be blunt, I have worked my fingers to the bone on our home. I don't just hire gardeners, I am the gardener. Don't I deserve a little validation; some tangible proof that my vision has paid off? Is it really too much to expect that the appraiser get it right? (Evidentially, it is.) So I am throwing a party instead and inviting my colleagues, neighbors, clients, and friends to join me. (What are friends for anyway if not to mend your bruised ego?) I have rented a LARGE movie screen, hired a caterer, and am putting my son and a few of his buddies to work as we participate in an evening of "Starlight Cinema." If all goes well, I will happily make this evening an annual event. AND I am going to try to remember that Cliff and I bought our current home because we imagined gatherings just like this, along with family Thanksgiving dinners, elegant Passovers, and fun-filled Fourth-of-July festivities; not because of its "appraised" value (our homes aren't meant to fill in a balance sheet). I will recall that we bought our home for the lovely community it offered, for the high-ranking schools, and for its unlimited potential. Perhaps one day, we will even see a garden wedding there??? (It could happen.) What an out-0f-area Appraiser thinks about our home's value should be of absolutely NO value to me whatsoever - beyond the loan approval. Still, I'm not inviting that Appraiser to my party. She can go ruin someone else's day. Piedmont's first home game started off with a resounding win, with a 44-16 victory over Albany. Our younger son Tristan is a receiver for the Varsity team which means that Cliff and I attend every game, loudly cheering him, and his teammates on. (Okay, I'm the one screaming wildly; Cliff quietly keeps stats on the sidelines.)
On our way to the stands last week, I bumped into my friend, Terri, who was wearing her son's jersey and looking rather proud. "Isn't it sweet?" she exclaimed, "My younger son asked me to wear his number and even though it smells like 'boy,' (meaning it hadn't been washed in a week) I'm going to wear it anyway." (Yes, it was sweet) and she wasn't the only mom I noticed in purple and white that evening. I have to admit that the social politics of the jersey is a new aspect of the evening for us mothers of Varsity sons. In my day, it was the letterman's jacket; I suppose it's the same idea now. No, my son hadn't asked me. Instead, at the end of the game I spied a bevy of young ladies lined up in Piedmont jerseys, including an absolutely stunning girl wearing the number 23 - I hadn't a clue who she was, but I was determined to find out. The next morning, I put on my investigative hat and casually approached Tristan after breakfast. "Hey Tris, I couldn't help noticing that several mothers were wearing their sons' jerseys last night," I said. "You know, I would happily wear yours if you would like." (Hmmm?) "No offense, Mom," Tristan casually responded as he unloaded the dishwasher, "but did you SEE the girl wearing my jersey? I went for the gold." (Gee, now why would that offend?) For my own piece of mind, I'm going to assume that she's as lovely on the inside ("pretty is as pretty does"). Understanding what's on the inside of a house is crucial to any home purchase as well. I recently helped a well-intentioned young couple get into contract on a very pretty "flipped" home in Montclair (that's a home that was purchase under market value and quickly renovated to turn a profit) only to discover that when we began the investigations on the property, the house wasn't nearly as "pretty" as it had seemed at first glance. The supposedly zero-pest certificate wasn't in fact zero!, Our inspector quickly uncovered an active beetle infestation requiring tenting, rotted joists under the driveway, and a broken sewer pipe that was emptying into the crawl space below (yuck) - and that wasn't the worst of it . . . "This was a grow house," the engineer bluntly said. "There's all kind of discarded paraphernalia and trash under the house, but that's not your biggest concern. With respect to the structure, there are yards of dirt piled against the rear wall which is completely rotted as a result. I can't begin to tell you how much damage there is until we remove the soil . . . and FYI, you can no longer take dirt to the dump without having it tested first for contamination," he warned. "At the risk of killing the deal, I wouldn't walk, I'd run." ('Nuf said.) Although this house had seemed like a good deal at first glance, the costs to remedy the defects were quickly adding up to well beyond what this young couple could afford. There were so many red flags, it wasn't even worth negotiating; it was simply time to cancel the escrow, refund the Buyer's good-faith money, and find another house. (Better luck next time.) In my practice, "due diligence" isn't optional, it's mandatory on every home purchase, and this story is the perfect example of why. Although the prospective Buyers had spent close to a $1,000 on home, pest, and engineering inspections, in the end, their due diligence had saved them TENS of THOUSANDS in hidden costs and uncovered a home that was nothing like it appeared to be on the surface. Given that homes are incredibly expensive to own and maintain, it's money well spent - don't you agree? Finally, understand that even if you are willing to overlook a home's significant defects (you may, and people often do), the next Buyer is unlikely to be as forgiving. Remember that with every home purchase, you are not just a prospective Buyer; you are a prospective Seller down the road. If you are getting a very good deal AND you have the money in reserves to address the issues either now, or in the near future, it may make very good cents to take on these added expenses. On the other hand, if you are buying what you believe to be a fully "renovated" home, you'll want to make sure that it is, in fact, fairly worry free. OR, as we were all taught: "Beauty is only skin deep; it's what's inside that counts." Word on the street is that last week's young model displaying my son's jersey, isn't just "pretty," she's also a very sweet and bright girl. What can I say? Tristan has very good taste in women. Here's where I salvage my pride and take credit for that. I am back at my desk after two and half weeks of being displaced and I couldn't be happier. The GRUBB Co. had decided to do a little end-of-summer remodeling, which meant that several agents were politely shown the door (including me). Hmmm . . . what had been billed as a few days, turned into a few weeks, and then some.
Unfortunately, those of us dependent on our hard drives and desk tops would have to make do some other way. (I leaned on the girls in our escrow and marketing departments, thank you very much) Such is the course of renovation; it's never as easy as we might wish or as seamless as we were lead to believe. No matter the inconvenience, it's worth it! I actually enjoy the process of renovation and rejuvenation - and the purging that goes along with it. It offers the opportunity to design a space to fit our needs - not someone else's and edit unnecessary "stuff." Currently, I have my sights set on a kitchen renovation at "Casa Gardner" that encompasses some well-placed French Doors, a butler's pantry (never mind that I don't have a butler), Carrera marble counter tops, and new skylights that let in the sun. (Now if I can just get my husband, Cliff, on board). I've discovered that with property values on the rise and with the return of confidence in the marketplace, banks seem to be much friendlier about issuing and expanding credit lines to qualified homeowners (the operative word here is "qualified"). "How much do you need?" my personal banker, Patty Edmonds at Wells Fargo, asked me? (Gee, what a difference a few years make!) I'm not sure, but can I have it just in case? That isn't to say that one should always tap out the built-up equity on their home in order to make improvements, but given recent sales - especially on "turn-key" properties - it's a smart time to invest in what is very likely, your single largest asset. Since the cost of a new kitchen far exceeds the spare change in my coin jar, my choices are to live with the kitchen AS IS (perish the thought), or borrow against the equity to renovate (I vote for the latter). Keep in mind this avenue works only IF you have a fair amount of equity in your home, BUT if you do, it may be very worthwhile to consider updating and replacing outdated bathrooms and kitchens at this point in the game. Why? Because Buyers like them and will bid aggressively for designer bathrooms and kitchens. If there is an adjacent family room, so much the better. I am convinced that one property I represented in Oakland earlier this year saw an additional $200,000 on the sale price after a $40,000 upgrade in bathrooms. (That's not a bad return on investment.) Here in Piedmont, we have seen homes go as much as $500,000 -$600,000 OVER the listing price when the house was "camera ready," exceeding everyone's expectations, especially the Sellers. (WOW!) But we're not selling our home for a few years yet. Excellent, so why wait until you do? Chances are, I am going to show up and encourage you to "update" if a move is on the horizon and improvements haven't yet been accomplished. Why not enjoy the kitchen and bathrooms while you still own and live in the house? Why give the new owners all the pleasure? That's my story and I'm sticking to it. "Oh, Patty . . . " The morning had started out simply enough - or so I'd thought. After a weekend of transporting plants and dusty flea market finds in the family wagon, I was heading to the car wash in need of a thorough vacuuming and a professional cleaning.
What I hadn't anticipated was that the street would be under construction and as a result, the route was jammed with heavy machinery and post holiday commuters, all inching along at a snail's pace. I turned the corner hoping to beat a hasty retreat, only to find more of the same. Ugh. Abort, abort, abort, ABORT! Exit left. The car would have to wait another few days. I wasn't meeting clients and I would happily let someone else drive on Broker's Tour, content to be a passenger today. Time to regroup and reboot. Of course, a change of plans isn't all that uncommon in the world of Real Estate either - it's just that the stakes are usually much, MUCH higher. Once Buyers and Sellers are in contract, we like to see them stay that way, but if not, then there is an established protocol for getting out properly. "We've had second thoughts," my Buyers texted me, "We want to cancel the sale. Please call us immediately!" (No surprise, the house hadn't been right form the start.) "'I'll Docusign the 'Release of Escrow' form right away," I responded. "Sign and return it as soon as you can." Exit right. I had originally dismissed this particular home out of hand for these Buyers as being far too small and inadequate to meet their family's needs, so the change of heart wasn't exactly unexpected . . . in fact, it had come as a bit of a relief. Luckily, these Buyers hadn't yet wired over their good-faith deposit, nor had the out-of-town Sellers signed the agreement, so in this case, the rescission was fairly simple. However, canceling a home purchase can get much trickier as time goes by, especially if the Buyer's contingencies have already been lifted. Standard contingencies typically include an inspection period and an appraisal and loan condition, outlining rates and points. These are your safety nets against rapidly rising interest rates, unexpected appraisals that come in too low, or NEW DISCOVERY. Less typical in our area, are contingencies to sell your current residence, or identify the next, before going through with the deal. If a thorough disclosure package isn't available, invest the necessary dollars to do your own investigations (it's the wisest money you will spend). Earlier this year, I represented young Buyers on a hillside home in Orinda, only to learn during their inspections that the entire hill was "creeping" and that the foundation would need to be replaced to the tune of almost $200,000! (Exit right AND left!) If substantial defects are uncovered, this is often a legitimate reason for voiding the deal and moving on. Do I need a "legitimate reason" to exit the deal? That's up for interpretation; however you do need to act in "Good Faith." (Defining "good faith" is what keeps lawyers in business I suspect.) Paragraph 14 of the California Residential Purchase Agreement provides a fairly wide avenue for reconsideration: "By the end of the time specified . . . Buyer shall deliver to the Seller the removal of the applicable contingency or cancellation . . .". Understand, a hasty retreat won't make you popular, but that's beside the point. While an explanation is expected, it isn't legally required - a cancellation IN WRITING is! Less justifiable for cancellation, is fear. Sadly, fear has felled many a good opportunity and when doubt creeps in, there is very little any Agent can do to keep the train on the track (regrettably). Clarifying your intentions upfront, making sure you and your partner are on the same page, and understanding the macro-market in a meaningful way, will all help keep retreat at bay. Finally, there have been a few occasions when I didn't agree with the purchase my Buyers had identified (and said so) but at the end of the day, this isn't my home, my risk, or my future - it's yours. At that point, my job is to set aside my personal opinion, help you achieve your goal, and then assist in gathering all pertinent information. What I think about your choice is beside the point; what I bring to the process is far more relevant. So proceed with care and due diligence. Define your criteria, your timeline, your price point, your motivation, and your objectives before signing the contract. If you do have second thoughts, talk through them with your Agent before hastily pulling the plug. Your objections may constitute challenges that are easily negotiated or mitigated (or not) but let's discuss them first. And if you do decide to walk away, do it within the body of the contract (or risk losing your good-faith deposit!) Once done according to the letter of the law, we can now regroup and reboot. Here's the happy ending . . . those darling clients who walked away from the house in Orinda, found a much better (and healthier) home on this side of the tunnel, and are now happily ensconced AND, rumor has it, expecting their first child . . . While I can't take credit for the baby on board, I like to think I helped considerably with acquiring their first home together. How can I help you? |
AuthorJulie Gardner, has been writing The Perspective for 18 years and has published more than 750 humorous but always informative, essays on life and real estate. Categories
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