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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127684  
Subject: Selling Date: 2/18/2013 12:03 PM
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We will be selling our primary residence in two to three months. We previously had been rented for many years. We have reestablished it as our primary residence before selling.

Any suggestions on how to interview real estate agents?

An good real estate agent should be able to tell us what we need to do to make the house show well.

The interior is in good shape. A thorough cleaning after we move out would be needed. We haven't hung anything on the walls since we repainted a couple of years ago. Except for the front door, the house probably won't require paint.

We have enough furniture and stuff to stage the house, and not make it appear that the house is vacant.

I am trying to make a list of the little things we have been ignoring, such as a screen door that needs repair, a garage outlet that ants damaged, a set of blinds that haven't been shortened.

The front yard isn't large. The grass isn't in great shape. I am not certain if we should have the grass replaced. Just before putting it on the market, we will add some annuals to the planters and parking strip to give it some color.

There isn't much on the market around us. Within a half mile, there is one house (large) and two condos. 3 years ago there were a number of foreclosures. They have been worked through. Prices are not back to their high, but have recovered significantly.
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124785 of 127684
Subject: Re: Selling Date: 2/18/2013 12:55 PM
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1. Keep in mind that commissions are negotiable. Be sure to read that section of the contract before you sign. You can negotiate both buyers and seller agent commissions.

2. Most realtors will gladly advise what you need to do to make your home show better. Some want you to spend much, most will list it as it is, and in between you can decide. Painting, carpets, floor coverings can make a big difference at modest cost. Redoing kitchen and bathrooms can be costly. New cabinets? Granite counter tops? etc etc. I'd suggest you set a budget and carefully consider what changes are cost effective.

3. Think about and come to an understanding about details like: open house (yes/no/when/how often), advertizing, lock box on front door (?), and special considerations like pets, burglar alarms, etc. Will agent call before showing your house?

4. Price your place carefully. If too high, you lose much of the initial enthusiasm.

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124786 of 127684
Subject: Re: Selling Date: 2/18/2013 12:56 PM
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We will be selling our primary residence in two to three months. We previously had been rented for many years. We have reestablished it as our primary residence before selling.

Given your contributions on the Tax board this is more for lurkers than for you, but the law changed in 2009 on calculating the amount of gain available for the personal residence exclusion. The period from 1/1/2009 to the date you moved in is "nonqualified use." The part of gain attributable to this period as a percentage of total ownership time cannot be excluded. (This is in addition to the usual treatment of property that was used as a rental.)

Details are in IRS Publication 523.

Phil
Rule Your Retirement Home Fool

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124787 of 127684
Subject: Re: Selling Date: 2/18/2013 1:01 PM
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Note that in most areas one or two realtors dominate. They are often the most expensive and most demanding. They have lots of traffic and can sometimes sell your home quickly.

ReMax firms are usually independent run by experienced individuals.

In most areas there are discount realtors who will list your house, but often leave most of the job to you. It can be kind of a limited FSBO.

Think about it before you decide what is best for you.

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Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124788 of 127684
Subject: Re: Selling Date: 2/18/2013 1:04 PM
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The front yard isn't large. The grass isn't in great shape. I am not certain if we should have the grass replaced. Just before putting it on the market, we will add some annuals to the planters and parking strip to give it some color.

I can't recall what state you are located in. With a two to three month time frame, there is plenty of time to have someone aerate and then overseed the yard. If you did it yourself, it'll cost about $110 ($60 aerator rental, $50 seed). It'll look green for the showings but probably die in summer heat later. I wouldn't re-sod since that would be a lot more expensive.

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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124789 of 127684
Subject: Re: Selling Date: 2/18/2013 1:19 PM
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An good real estate agent should be able to tell us what we need to do to make the house show well.

You might ask if the real estate agent has completed a course in broker price opinions, such as this one, which is more comprehensive than a CMA (comparative market analysis).

http://store.car.org/car-education/learnmyway/remote-bpor-02...

This one-day course is required to earn the certification. The course will explore the multiple uses of BPOs, how they can and cannot be used, and how to filter and select comparables to create expert and precise BPOs.

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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124790 of 127684
Subject: Re: Selling Date: 2/18/2013 1:21 PM
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We will be selling our primary residence in two to three months.

Listing in two to three months or would like to have it sold, then ? I'd get it ready to go and on the market ASAP to get the most out of the spring season.

No matter what gets posted, as always, all real estate is local. One of the first things I would ask a realtor is for comparisons to your home and especially the time it takes for similar houses to sell.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124791 of 127684
Subject: Re: Selling Date: 2/18/2013 1:42 PM
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Redoing kitchen and bathrooms can be costly. New cabinets? Granite counter tops? etc etc. I'd suggest you set a budget and carefully consider what changes are cost effective.

We had rented the house out for many years. When we moved in to reestablish it as a primary residence before selling, the kitchen and bathrooms were redone. The kitchen wasn't going to show well, and I didn't want to live in the house for several years, and then have to redo the kitchen as we moved out. The kitchen was done with "average" materials. No granite or high end cabinets. It will show well.

The bathrooms were a different issue. We thought they would only require minor repair. It turned out there was mold. The bathrooms have already been redone.

3. Think about and come to an understanding about details like: open house (yes/no/when/how often), advertizing, lock box on front door (?), and special considerations like pets, burglar alarms, etc. Will agent call before showing your house?

We won't be living in the house. We will leave enough furniture and non-important stuff in the house to make it appear occupied and stage it.

Advertising will be a question to ask.

Pricing is a major issue. Given the low inventory of houses on the market, it should sell quickly providing it is priced correctly for the market.

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Author: determinedmom Big red star, 1000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124792 of 127684
Subject: Re: Selling Date: 2/18/2013 1:43 PM
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For discussions on buying and selling I really like the gardenweb home forum which you might want to take a look at and/or post.

For selling real estate I've usually looked around and found a few agents who have completed sales in the area and then interview them.

Pricing has been the big issue, as some agents are really bad at suggesting pricing. I have found the last couple of times that I listed that you can sometimes get very different answers to these questions:

How much should I list my house for?
If I really wanted to have a contract on my house in 90 days, what should I list it for?

I found that by asking the second question I often got very different answers than to the first question.

Some agents are good at telling you how to stage and others aren't.

It might be worthwhile to look at (either online or in person) some of the houses that would be the competitors to your house to see what is typically expected in the price range. I'm not saying you have to spend the money to get those things but it can affect pricing.

Some money spent to get the house ready to sell can be worthwhile and may be less expensive than expected. I've found that replacing worn carpeting is generally worthwhile. Sometimes things cost much less than expected. For example, I put granite countertop in a half bath and a cost of about $300 and it made a huge difference in how the house looked.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124793 of 127684
Subject: Re: Selling Date: 2/18/2013 1:48 PM
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Given your contributions on the Tax board this is more for lurkers than for you, but the law changed in 2009 on calculating the amount of gain available for the personal residence exclusion. The period from 1/1/2009 to the date you moved in is "nonqualified use." The part of gain attributable to this period as a percentage of total ownership time cannot be excluded. (This is in addition to the usual treatment of property that was used as a rental.)

Details are in IRS Publication 523.

Phil


The tax law change was the reason we converted the property back to personal residence in 2009. The two year plan is now a four year plan, but is close to coming to completion.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124794 of 127684
Subject: Re: Selling Date: 2/18/2013 1:53 PM
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Listing in probably 2 months. We will move when remodeling on our destination home is mostly done. I don't want to deal with selling the current house while we are in it. We have owned both homes for long enough that the mortgages are paid off. There isn't any pressing financial need to sell the existing home before moving out.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124795 of 127684
Subject: Re: Selling Date: 2/18/2013 2:00 PM
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It might be worthwhile to look at (either online or in person) some of the houses that would be the competitors to your house to see what is typically expected in the price range. I'm not saying you have to spend the money to get those things but it can affect pricing.

Over the past couple years, I have gone to several open houses in the neighborhood. It is a small house, and has the same floor plan as many of the houses in the neighborhood. Most had done a quick refurb, and didn't have any high end points.

If there are any open houses, I will check them out. There are so few houses on the market, that open houses are rare.

It is a topic to discuss with real estate agents.

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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124796 of 127684
Subject: Re: Selling Date: 2/18/2013 11:32 PM
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Any suggestions on how to interview real estate agents?

The last time I hired a real estate agent I went through this process;

1) I talked to six of them on the phone for maybe ten or fifteen minutes. I got several of their names from people I know but I also called a few of the local real estate offices and asked to which of their agents would be best for me.

2) I selected three of them to come to the house to see it then come back later to give a presentation that included a competitive market analysis that included an outline of their marketing plan. I had not specifically asked for it but they all had the presentations in binders which they let me keep.

I don't know if was just the custom or law in that area but they didn't have a real firm suggested listing price in the presentation but it was pretty clear in talking with them what price they were comfortable with. The range of prices was pretty wide, about 10% or so but any of them would have been happy to have listed it at any price I wanted to list it at.

I then selected the agent I was most comfortable with which also happen to have the highest price, which to my amazement we pretty much got. She did have good reasons for thinking that we could get a higher price.

The lowest price was by the agent that had sold many of the houses in the subdivision but was likely pricing them low to make an easy sale.

In going through the process I was very open with the agents about the interview process I was using and that I was also interviewing other agents and they were all OK with that. I also let them know promptly after I had selected another agent and while they would have liked to have gotten the listing they were all professional and it was pretty painless. In talking with that many agents about my house I also learned a lot.

I made sure that the contract(listing agreement) was very specific about where which newspapers(it was a while ago)the house would be advertised, how large the ads would be, how often they would be, and how often the open houses would be. The house was an average house on a lot next to a wetlands pond and I had fallen for it when I saw it at an open house years before so I was the type of house people tended to have to see to love. The agent that had the highest market analysis agreed (or was at least willing to go along with me) was willing to have an open house every third weekend so I figured if she was willing to commit to that much time it was worth letting her try. It did sell to someone that found it at an open house, they had not been looking in that area but they happened to pass by and saw the open house sign so they stopped by on a whim.

I was doing a corporate relocation that had a set commission percent so I did not try to negotiate the commission.

Part of the competitive market analysis that we got from all three agents was not only information on houses that had recently sold in the area, but also similar houses that were also for sale. It was interesting in that I don't recall any of the agents actually having the same comparable houses in their presentations. This is a something you should refer back to since if your house has not sold after a while then you can look back to see which of the other houses that were for sale have sold and what they sold for or if they have dropped their listing price.

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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124797 of 127684
Subject: Re: Selling Date: 2/18/2013 11:50 PM
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One thing I left out. When you are interviewing the agents but sure to tell them the same thing about your plans and expectations since that can legitimately affect their approach on how to sell the house.

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124798 of 127684
Subject: Re: Selling Date: 2/19/2013 7:03 AM
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I don't know if was just the custom or law in that area but they didn't have a real firm suggested listing price in the presentation...

It's called CYA. If an agent recommends a price and it sells fast, they are at risk of being sued for pricing it too low and costing the seller $$. If it sells slowly, they are at risk of being sued for setting an unreasonable price, causing delay in the sale. You will find most Realtors are now trained to be the source of the source of information, but never provide information, to keep from being sued. It's one reason why I left the industry. Realtors are sued at the drop of a hat, whether there is merit to the suit or not. IMO the industry is all about providing informed opinion based on fact, and that job can no longer be done without significant risk of a lawsuit.

She did have good reasons for thinking that we could get a higher price.

Critically important. The price has to be agreed to not only by the buyer, but by the appraiser. If it is not set on data, you may get the seller, but not the appraiser.

Do not choose an agent you have a personality conflict with, or even if you can not stand the sound of their voice. You will be interacting with them quite a bit, and you don't want to find yourself wanting to avoid them.

I would also ask your first choice agent to take you to see the active competition on which their analysis was based, as well as drive by the solds. Ask them if they went in the solds when they were on the market. A good agent will preview listings even before they have a buyer looking for them, in order to keep a strong understanding of their market. Seeing things on paper rather than in person really doesn't give you the full idea, and spending a day looking at your competition will give you a better feel for the agent.

I would also limit the term of the contract to 90 days. It can be renewed if they are doing a good job, easily exited if they were all hype no action. And look at the way they have listed other properties. Any typos, or bad pictures? That's an agent that doesn't pay attention to detail or doesn't really care.

Signage is way more important that advertising. Make sure they get the listing on as many internet sites as possible though, and ask if they have preferred listings on any of the sites, such as Zillow.com.

IP

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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124799 of 127684
Subject: Re: Selling Date: 2/19/2013 10:16 AM
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The price has to be agreed to not only by the buyer, but by the appraiser. If it is not set on data, you may get the seller, but not the appraiser.

It's true that a loan amount/down payment is calculated on sales price or appraised value, whichever is lower, but a buyer is free to pay any price he wishes and bring in the difference in a higher down payment. In an improving market with few listings, we're seeing bidding wars where buyers will in fact pay more than appraised value.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124800 of 127684
Subject: Re: Selling Date: 2/19/2013 10:59 AM
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I would also limit the term of the contract to 90 days.

That seems very long. In this city, average days on market is 25. If an agent can't sell a non-distressed property in 30 days, the agent isn't doing their job.

January numbers for the city: 35 sold, 33 pending, 18 active

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124801 of 127684
Subject: Re: Selling Date: 2/19/2013 11:12 AM
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...we're seeing bidding wars where buyers will in fact pay more than appraised value.

But that will not be the average Joe or Jane who bring the bare min down payment to the table. Selling real estate is about appealing to the broadest market possible.

Every contract I submit for ourselves states that the property must appraise for full purchase price. It has helped me to bring down the purchase price more than once...but we are not the average buyer.

IP

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124802 of 127684
Subject: Re: Selling Date: 2/19/2013 11:22 AM
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90 days is not that long. You are forgetting that a contract must go pending, then a mortgage is applied for, and takes time to obtain. Plus there are inspections to do. I wouldn't have wasted my time on a contract for less than 90 days. Setting up a listing takes time. 30 day extensions of an existing contract is fine, but not an initial listing.

If you have many properties flying off the shelf in less than 25 days, which is the case if the average DOM is 25, then they are under priced, and probably cash purchase or owner financed. Or are your DOMs based on contract date, rather than settlement?

IP

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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124803 of 127684
Subject: Re: Selling Date: 2/19/2013 11:24 AM
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Every contract I submit for ourselves states that the property must appraise for full purchase price. It has helped me to bring down the purchase price more than once...but we are not the average buyer.

This may work in a normal market, but here in Southern CA, where multiple offers are received for just about every property, a contract with that provision in it wouldn't even make it to the seller's kitchen table.

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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124804 of 127684
Subject: Re: Selling Date: 2/19/2013 11:26 AM
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If you have many properties flying off the shelf in less than 25 days, which is the case if the average DOM is 25, then they are under priced, and probably cash purchase or owner financed.

Record One-third of Home Sales in California were All-Cash
http://www.mortgagenewsdaily.com/02072013_california_cash_sa...

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124805 of 127684
Subject: Re: Selling Date: 2/19/2013 11:34 AM
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...a contract with that provision in it wouldn't even make it to the seller's kitchen table.

Something that would be illegal in this state, where every written contract for purchase of real estate must be presented.

Just goes to show that with real estate all that matters is what goes on locally. Lucky for me, you couldn't pay me to buy in CA.

IP

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124806 of 127684
Subject: Re: Selling Date: 2/19/2013 11:41 AM
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Lucky for me, you couldn't pay me to buy in CA.
Hah... you just need to raise your asking price, IP!

To paraphrase a George H. Ross quote I recall;
"Any problem can be fixed by price!"

;~Dave

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124807 of 127684
Subject: Re: Selling Date: 2/19/2013 11:48 AM
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"Any problem can be fixed by price!"

Heh. Not in this case. CA has zero appeal for me, and I am at a point in my life where I minimize doing what I don't want to do. Not entirely escapable, but fortunately less necessary than when younger.

Isn't it wonderful that we have such a diverse country with somewhere for everyone.

IP

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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124808 of 127684
Subject: Re: Selling Date: 2/19/2013 12:54 PM
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Something that would be illegal in this state, where every written contract for purchase of real estate must be presented.

All offers have to be presented in CA too.

But if it's a multiple offer situation, as a seller if your offer seems to have too many contingencies I would ignore it and go with a different one.

(Although even with multiple offers here in SF area, financing contingency is normally part of them, which implicitly means it has to meet appraisal)

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124809 of 127684
Subject: Re: Selling Date: 2/19/2013 1:51 PM
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If you have many properties flying off the shelf in less than 25 days, which is the case if the average DOM is 25, then they are under priced, and probably cash purchase or owner financed. Or are your DOMs based on contract date, rather than settlement?

IP


I don't know the definition used for Days on Market. I will see if I can find the definition.

Low inventory, preapproved buyers and inspections already complete there is no reason that it should not be under contract (and frequently close) within a month.

A co-worker and in-laws recently sold their homes. Both closed in under a month.

This market isn't 3 years ago when there was significant inventory and the market was working through a wave of foreclosures.

I am not going to agree to 90 days.

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124810 of 127684
Subject: Re: Selling Date: 2/19/2013 2:16 PM
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I am not going to agree to 90 days.

Certainly your choice. I will be curious to hear how that is received.

"Pre-approved" mortgages are not common out here at all. Pre-qualified, yes, but that is pretty much meaningless. Even an appraisal can take weeks to get all the way through channels. Even with our 800 credit score and a ridiculously low debt to income, we've been told by multiple places they don't pre-approve anyone. In what area is this common?

IP

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Author: crackdclaw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124811 of 127684
Subject: Re: Selling Date: 2/19/2013 2:33 PM
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I am not going to agree to 90 days.

Certainly your choice. I will be curious to hear how that is received.

The D.C. marketplace is now a seller's market with listed homes receiving multiple bids and selling price above list is fairly common. The R.E. agents I work will request a 90 day listing, which includes a written agreement that the relationship may be cancelled with 24 hours notice. Essentially agents are agreeing to take on a listing with no commitment from the seller.


"Pre-approved" mortgages are not common out here at all. Pre-qualified, yes,

You're correct, there is a large difference between pre-qualified and pre-approved. Pre-qualified was common up until about a year ago. That essentially was pulling a credit report, reviewing income and assets and issuing a letter. Many buyers now want to be pre-approved so their purchase offers provide the opportunity to close within 21 days.

To be a pre-approved buyer, a loan application is submitted to underwriting under a likely scenario. Say, a $500,000. purchase with 10% down and a loan amount of $450,000. All documentation from the buyer is submitted and reviewed by underwriting, and if approved a Commitment Letter is issued listing any outstanding conditions. Those conditions are generally property specific, appraisal, title work, etc. A pre-approved buyer has a competitive edge over a pre-qualified buyer, and we are able to close loans within 21 days of contract ratification.

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124812 of 127684
Subject: Re: Selling Date: 2/19/2013 3:32 PM
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How are the up front fees for pre-approval? We are never even sure what state we will be buying in, or what time frame, so it makes little sense for us to pursue it, but I am curious. I am also not sure it gives you much extra time. 21 days vs 30? Amerisave assured us they could do a purchase loan in 30 days, particularly since they have many of our docs on file from our refi.

The R.E. agents I work will request a 90 day listing, which includes a written agreement that the relationship may be cancelled with 24 hours notice. Essentially agents are agreeing to take on a listing with no commitment from the seller.

Reality is it has always pretty much been this way. Even if you sign on for a 12 month contract, it is easy enough to get out of if you are not pleased. A broker would rather release you from that contract than keep you tied to it. The risk of being labeled as uncooperative is too expensive. On the other hand, it still is easier if you have a shorter contract. If it is the agent you don't like, the broker might try to talk you into using someone else in their office, and you would have to be more firm if they have the contract. And of course if you have simply lined up a FSBO while on their time, they may fight you on that and rightly so.

Heck, I've even fired customers. I showed one guy a house he wanted to put a bid on, but the things he wanted to do would have reflected so poorly on me that I released him from any obligation of continuing to work with me. He told me he would represent himself in that case, and I wished him luck. He did not get the house.

IP

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Author: crackdclaw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124813 of 127684
Subject: Re: Selling Date: 2/19/2013 4:00 PM
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How are the up front fees for pre-approval?

There are no fees to the prospective borrower (home buyer).

We are never even sure what state we will be buying in, or what time frame, so it makes little sense for us to pursue it,

A pre-approval is not state specific, important as in the DC area someone may buy in DC, MD, or VA. But a pre-approval is time specific,
and best serves homebuyers actively looking and expecting to submit an offer within 60 days.

I am also not sure it gives you much extra time. 21 days vs 30?

It may be important to a home seller, and all else being equal they will select the contract for the home buyer pre-approved and able to close quickly. Also a pre-approval letter is much stronger than a pre-qual letter, the home buyer's documentation has been reviewed by an underwriter.

Amerisave assured us they could do a purchase loan in 30 days, particularly since they have many of our docs on file from our refi.

LLOL. Docs on file, from a refi, will save time on your next purchase loan? Sounds like a marketing ploy. Perhaps tax returns will not expire, but certainly paystubs and asset statements have expired. A new loan is a new loan, collecting new docs. An active, prepared, well qualified home buyer in the DC marketplace now has a pre-approval letter.

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124814 of 127684
Subject: Re: Selling Date: 2/19/2013 4:27 PM
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Perhaps tax returns will not expire,...

Which was one of the few things that we could not control the timing of their receiving. Asset statements are electronic, and paystubs are in our drawer ready to be scanned and emailed. One of the things I loved about dealing with Amerisave was their willingness to avoid the need for us to overnight them stuff. They also already had the documentation we needed to provide on our other real estate, which was not minimal. When we refied our primary, we had to provide insurance and taxes on our other properties as well, so it's nice to already have that in a file.

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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124815 of 127684
Subject: Re: Selling Date: 2/19/2013 4:46 PM
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...a contract with that provision in it wouldn't even make it to the seller's kitchen table.

Something that would be illegal in this state, where every written contract for purchase of real estate must be presented.

Let's put it this way: the offer might make it to the kitchen table, but it would be placed down far in the stack as an unattractive offer.

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Author: crackdclaw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124816 of 127684
Subject: Re: Selling Date: 2/19/2013 4:47 PM
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When we refied our primary, we had to provide insurance and taxes on our other properties as well

You make a good point and I now better understand where you see the value in their having documents on file.

their willingness to avoid the need for us to overnight them stuff

Was really not aware that some lenders want borrowers to overnight them documents. What a pain. I prefer all docs to be emailed as downloaded PDFs or scanned documents and emailed. My fax number is an Efax that will turn all received faxed documents into PDFs delivered to Outlook. Dealing with paper is a hassle.

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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124817 of 127684
Subject: Re: Selling Date: 2/19/2013 4:48 PM
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"Pre-approved" mortgages are not common out here at all. Pre-qualified, yes, but that is pretty much meaningless.

"Pre-approval by a nationally recognized direct lender" is the required paperwork here in CA.

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Author: CCinOC Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124818 of 127684
Subject: Re: Selling Date: 2/19/2013 4:52 PM
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Was really not aware that some lenders want borrowers to overnight them documents. What a pain. I prefer all docs to be emailed as downloaded PDFs or scanned documents and emailed.

crackdclaw is right. I'm not aware of a single lender that will accept paper documents. They all have imagers where PDF files are uploaded. Some of the imagers suck; others are highly efficient.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124819 of 127684
Subject: Re: Selling Date: 2/19/2013 5:21 PM
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I am not going to agree to 90 days.

Certainly your choice. I will be curious to hear how that is received.

The D.C. marketplace is now a seller's market with listed homes receiving multiple bids and selling price above list is fairly common. The R.E. agents I work will request a 90 day listing, which includes a written agreement that the relationship may be cancelled with 24 hours notice. Essentially agents are agreeing to take on a listing with no commitment from the seller.


If there is an option to cancel, then 90 days could be acceptable. I will not accept unconditional commitment to an agent for 3 months.

This is a seller's market. There are many real estate agents, and few properties for sale.

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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124820 of 127684
Subject: Re: Selling Date: 2/19/2013 5:30 PM
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I'm not aware of a single lender that will accept paper documents.

Heh. Not only "accept," but insist on it. Guess I was just lucky to stumble on them. Glad to have found someone in the 21st century.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124821 of 127684
Subject: Re: Selling Date: 2/19/2013 5:30 PM
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1. Keep in mind that commissions are negotiable. Be sure to read that section of the contract before you sign. You can negotiate both buyers and seller agent commissions.

Does negotiating commissions have any effect on the sale price?

Salespeople sell what they are paid to sell. If the commission for the buyer's agent is lower on a property, it is less likely to be shown.

My MIL was part owner in a challenging property. The property was sold as is with an estimated $30K in termite damage and other issues. One comment was if it didn't sell in a few months was to increase the buyer's agent commission. It did sell within a couple of months.

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124822 of 127684
Subject: Re: Selling Date: 2/19/2013 9:01 PM
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Or are your DOMs based on contract date, rather than settlement?


http://scc.rereport.com/market_reports?formSubmit=1&sear...


I can't find a description of DOM. I suspect that it is contract date, and not to close.

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