Every house has a story
After 30 years of previewing and showing homes, I look at them differently than my clients. My definition of important doesn’t include granite counter tops, walk-in closets or new paint and carpet. Buying a home may be an exciting emotional experience for buyers but their agents need to maintain a degree of objectively. While my clients are visualizing their family gathered together in the great room around the Christmas tree, I am sleuthing for breached window seals, fractured floor tiles and wet stains under the kitchen sink.
Every home has issues and a story to tell. When I know that my clients are seriously interested in a home, I consider it my duty to discover the home’s history. Knowing all I can about the property will aide in the negotiation process and help me protect my clients from regretting a major decision.
Each chapter of a home’s history is revealed in a different place. The county’s offices are a good place to begin. The county’s Tax Assessor’s office contains information about the year the home was built, its size and the outstanding mortgages against the property. The Department of Environmental Quality may have information on the well and septic systems. The Building Department should have the original building plans, survey and any permitted additions. Some of the reports are free, others have a nominal charge. Reviewing the reports will reveal helpful information and may raise other questions that will need to be answered.
The next chapter of a property’s history can be found in third-party inspection reports. Listing agents and their sellers should order all third party inspections early in the listing process. Pest reports, well flow tests and water potability, septic pumping and inspection, roof inspections and certification, and pre-listing whole house inspections, all help in revealing the character of a property. Buyers and their agents feel more comfortable entering into escrow already knowing the issues that existed with the property and their disposition. Obtaining third party inspection reports in advance is money well spent by the seller. Pre-inspected homes will sell easier, for a higher price and are less likely to fall out of escrow. .
The seller furnishes another chapter in the home’s storybook. State law requires sellers of residential properties to furnish buyers with a plethora of written disclosures regarding the current condition and history of the property. Most real estate agencies go even further with their own in-house questionnaires and disclosures. Good agents will obtain these questionnaires early at the time of the listing, reviewing for any red flags. There should be no surprises once escrow is opened.
In addition to the seller’s legally required written disclosures, some sellers will volunteer other information that isn’t found on a standardized disclosure form. Many agents prefer that the seller not be present when showing a home to an interested buyer. I have always thought it to be an advantage. Sellers can be a guarded first-hand source of information about the neighborhood, schools and neighbors. Serious buyers always have additional questions for sellers not found on any disclosure questionnaire.
After reviewing as much information as possible within a reasonable time, a call to the listing agent will usually answer any remaining questions prior to submitting an offer. When asking the seller questions during the showing process, my questions are restricted to polite conversation about the property or neighborhood. When talking with the seller’s agent, prior to writing an offer, I am not hesitant to ask tough intimidating questions such as: “Have you had any offers on the property? What were they? How motivated is your seller? Will they take less than the listed price? If I can close this deal in 30 days, will your sellers pay my clients closing costs? The listing agent should be very careful how they answer those questions but when representing a buyer, I am not prohibited by professional ethics from asking. I consider these preliminary discussions the beginning of the negotiation process. Gaining a competitive advantage early will assist in my client’s offer being accepted and succeeded again if needed during the escrow process.
Once escrow is open, the property investigation continues. The title company will furnish a preliminary title report showing the current legal status of the property. This will include the current owners, liens, assessments, easements, conditions and restrictions that affect the title. The title report will not furnish detailed documents of all “exceptions” unless requested to do so. Exceptions to the title report can be easily overlooked as ordinary. The title company will clear some prior to closing but the missed details of a “deed restriction” or a “special assessment” may prove irreversible.
There are other miscellaneous sources to gain information about a home’s history. Neighbors are a wealth of information. Once a home is in escrow is a good time to introduce myself to the neighbors and ask a few questions about what they like and dislike about the neighborhood. There is a wealth of information about communities on the Internet. Goggling “El Dorado Hills and asbestos” produces 58,000 results. Out of area buyers should always subscribe to the local newspaper or previous copies of the community newsletters.
Buyers today have a distinct advantage not afforded to homebuyers a few years ago. They and their agents have time to conduct a comprehensive investigation of the current condition of a home and discovering its past history.
Every home has issues and a story to tell. When I know that my clients are seriously interested in a home, I consider it my duty to discover the home’s history. Knowing all I can about the property will aide in the negotiation process and help me protect my clients from regretting a major decision.
Each chapter of a home’s history is revealed in a different place. The county’s offices are a good place to begin. The county’s Tax Assessor’s office contains information about the year the home was built, its size and the outstanding mortgages against the property. The Department of Environmental Quality may have information on the well and septic systems. The Building Department should have the original building plans, survey and any permitted additions. Some of the reports are free, others have a nominal charge. Reviewing the reports will reveal helpful information and may raise other questions that will need to be answered.
The next chapter of a property’s history can be found in third-party inspection reports. Listing agents and their sellers should order all third party inspections early in the listing process. Pest reports, well flow tests and water potability, septic pumping and inspection, roof inspections and certification, and pre-listing whole house inspections, all help in revealing the character of a property. Buyers and their agents feel more comfortable entering into escrow already knowing the issues that existed with the property and their disposition. Obtaining third party inspection reports in advance is money well spent by the seller. Pre-inspected homes will sell easier, for a higher price and are less likely to fall out of escrow. .
The seller furnishes another chapter in the home’s storybook. State law requires sellers of residential properties to furnish buyers with a plethora of written disclosures regarding the current condition and history of the property. Most real estate agencies go even further with their own in-house questionnaires and disclosures. Good agents will obtain these questionnaires early at the time of the listing, reviewing for any red flags. There should be no surprises once escrow is opened.
In addition to the seller’s legally required written disclosures, some sellers will volunteer other information that isn’t found on a standardized disclosure form. Many agents prefer that the seller not be present when showing a home to an interested buyer. I have always thought it to be an advantage. Sellers can be a guarded first-hand source of information about the neighborhood, schools and neighbors. Serious buyers always have additional questions for sellers not found on any disclosure questionnaire.
After reviewing as much information as possible within a reasonable time, a call to the listing agent will usually answer any remaining questions prior to submitting an offer. When asking the seller questions during the showing process, my questions are restricted to polite conversation about the property or neighborhood. When talking with the seller’s agent, prior to writing an offer, I am not hesitant to ask tough intimidating questions such as: “Have you had any offers on the property? What were they? How motivated is your seller? Will they take less than the listed price? If I can close this deal in 30 days, will your sellers pay my clients closing costs? The listing agent should be very careful how they answer those questions but when representing a buyer, I am not prohibited by professional ethics from asking. I consider these preliminary discussions the beginning of the negotiation process. Gaining a competitive advantage early will assist in my client’s offer being accepted and succeeded again if needed during the escrow process.
Once escrow is open, the property investigation continues. The title company will furnish a preliminary title report showing the current legal status of the property. This will include the current owners, liens, assessments, easements, conditions and restrictions that affect the title. The title report will not furnish detailed documents of all “exceptions” unless requested to do so. Exceptions to the title report can be easily overlooked as ordinary. The title company will clear some prior to closing but the missed details of a “deed restriction” or a “special assessment” may prove irreversible.
There are other miscellaneous sources to gain information about a home’s history. Neighbors are a wealth of information. Once a home is in escrow is a good time to introduce myself to the neighbors and ask a few questions about what they like and dislike about the neighborhood. There is a wealth of information about communities on the Internet. Goggling “El Dorado Hills and asbestos” produces 58,000 results. Out of area buyers should always subscribe to the local newspaper or previous copies of the community newsletters.
Buyers today have a distinct advantage not afforded to homebuyers a few years ago. They and their agents have time to conduct a comprehensive investigation of the current condition of a home and discovering its past history.
posted by Ken Calhoon at 1:56 PM
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