Real Estate Investing

I don’t believe 2008 will go down in history as a great year for real estate.  We saw the market continue to struggle, even as interest rates and home values shrank - usually something that would spur more interest in housing.  We’ve seen foreclosures throughout the country sink families - up close and personal.  My friend Mary is still hanging on by a thread, but a look around sees homes that used to be filled with laughter now sitting vacant. 

I started writing here at Banks.com in May of 2008, replacing our friend Hayli Morrison who continued to write on other sites for some time.  Here are some of my favorite posts since I started here.

A laughable sales tactic by one agent - block the door to prevent the buyer from leaving!

Top 10 signs of when a builder goes bad - I’ve seen even more craziness from some builders since this post. One finally put some screens in the windows of a home he sold a year ago when he needed his former buyer to sign off on an easement mistake. She refused to sign until he brought her some screens.  Now the bugs stay out when her windows are open!

Who knows what market lurks in the hearts of real estate?  The DENTIST knows! (The buyer never did buy…) (Oh! And I recently heard that Ed McMahon gets to continue living in his home).

Oops… why Realtors cannot conduct home auctions on eBay (you must have an auctioneer’s license!).

The ups and downs of living in a mobile home.  I’ll sum it up… tornadoes = bad and affordable = good.

Can you find another place to live after foreclosure?

People either love Realtors or they hate them.  Me?  I love them.

Pets are abandoned when homes are foreclosed.  This still makes me really sad.

Look out!  Spy cams and hidden mics can be anywhere!

Outgoing referrals are a good thing - when the client is just not ready to buy/sell! Or if they’re a jerk.

It’s lollipops and gum drops out there, people.

Different types of agents:  Lions and Tigers and Bears, oh my!

A Real Ghost Story … and you do have to disclose ghosts in California.

Unemployed Should Get an Automatic Stay on Mortgage Payments: An Editorial Opinion

I’m still mad about this … mortgage companies won’t sell if they only break even (but I’ll bet they’ll get some bail out money!)

At Thanksgiving, everyone gets thankful.  This post say why I am thankful to be a Realtor.

Safety Tips when Decorating for the Holidays

How One Salesman was a Real Jerk

Building Green

Happy New Year!  Again, may tomorrow’s dawn bring much joy to your life.

For Sale by Owner sites sometimes seem rabid in pointing out that Realtors like to frighten home owners and buyers into hiring them when they sell or purchase a home.  I had one pro-FSBO’er actually write a comment once, “More scare tactics from a Realtor…”

I’ll be the first to admit that not every seller needs an agent.  Sometimes they’ve done their research, they’ve sold homes before so they know the process, and they’ve got plenty of time and energy to do the work themselves.  The parents of my daughter’s best friend from way-before-I-was-a-Realtor sold on their own - sold it the first week it was on the market!  I was amazed at their good fortune and even considered selling my own home by myself.  Then the nanosecond passed!

Scott Daniels of Florida Real Estate reminds me why I hired a Realtor those six years ago when he wrote Mr. and Mrs. FSBO doesn`t care about you! Buyer learns the hard way, why they need a Realtor!  Scott says,

Apparently, the home never appraised for the purchase price, after several attempts of going back and forth with the Seller to no avail the Buyer wanted out of the contract!

No such luck!

The seller and the attorney holding the escrow were adamant about keeping the $7500. They explained to the buyer “The Loan Commitment” expired and they have to “Buy The Home” regardless of appraisal issues.

Unable to secure a loan the buyer is in a huge bind!

Again, I won’t argue that sometimes it’s okay to sell on your own.  You’re probably a stubborn, determined person who works well on your own.  BUT I would absolutely always recommend that buyers find a licensed real estate agent to represent their best interests.  If the FSBO is unwilling to pay your agent’s broker a commission for bringing you - the buyer - to them, then you can (yes YOU!) pay for the services of a Realtor yourself.  Commission is negotiable, so it could be as simple as contacting a real estate company and asking for limited services (like explaining and filling out a contract).  Or you could take a contract to a real estate attorney.

Caveat emptor has been around for a long time - for good reason.   May the buyer beware!

I just listed a beautiful home today and the seller is only allowing the gas stove and the built-in dishwasher to stay.  I can’t fault him at all because those are the appliances I left with the last home I sold.  But it begs the question of whether it helps to sell a home when you allow the kitchen appliances to remain or not.

My unofficial survey of one (me) says, “Maybe.”

It really depends on the price of the home - whether it falls into the affordable home category or a home for the more upwardly mobile.  I’ve found that it’s a huge boost for first-time buyers, especially when the washer and dryer also remain.  More important, though, is the refrigerator.

For other buyers who have more disposable income, however, chances are they’ll replace the appliances anyway.  They may have a favorite brand or want all appliances to be stainless rather than mostly stainless and one black.  I sold a home this summer where the buyer didn’t even like the color of the hardwood floors so planned to pull them ALL up and put in his favorite kind.  It rather boggled my mind - probably because I’d want to invest that money into a college savings account for my children rather than arbitrarily replacing a floor that’s already perfectly good.  But people with disposable incomes do these things.

If you’re not planning to move anytime soon and your appliances go kaput, the question becomes whether your replace it or fix it.  My big TV upstairs - the one my husband and I always watch - has developed annoying thin white lines that wave through the screen.  The husband called an appliance repairman who after looking at it explained that many times manufacturers design their goods to fail after so many years to ensure they’ll be replaced (and their businesses will continue to thrive).  It’s not a pleasant thought, but it *does* make sense.

CNN Money provides a good article about how to make the decision on whether to replace your appliances or fix them.  If you choose to fix the wayward equipment,

Always demand a fixed price for any repair so you don’t get stuck spending more than the old equipment warrants. If you think you can tackle the problem yourself, check out RepairClinic.com, where you can get free DIY instructions and even order parts.

Good advice.