Tag Archives: REALTOR

What Does It Mean to Sell a Home “As-Is?”


What Does It Mean to Sell a Home “As-Is?”

 All too often I see homes listed as being sold “as is”.  There are certainly pros and cons of listing a home as-is.  And buyers and sellers need to know what that truly means.

I have seen listings that proclaim this property is “turn key” ready or “shows well”.  And then it indicates that the property is “as-is”. The seller’s version of an as-is property is that the seller does not intend to make any repairs to the property. This may or may not be a wise move. Some repairs are relatively simple and certainly should not get in the way of closing a deal.

The buyer’s version of an as-is property is that there must be something wrong with the property – and they are most likely correct.  It also tells the buyer that there is something wrong with the property and I’m not telling you (buyer) about it.  It takes us back to the days of “caveat emptor” (let the buyer beware).

But sellers and buyers need to understand that by simply checking off a box that says, “as-is” it does not relieve the seller of revealing latent defects.  Latent defects are faults in a property that could not have been discovered by a reasonably thorough inspection before the sale. Whether a property is being sold as-is or not, these defects must be disclosed to a potential buyer.

Certified Home Inspectors have come a long way in detecting defects in a property, but there are still many latent defects that can go unnoticed.  One example of a latent defect is a septic system that is no longer in use.  Even though the tank may be empty, in time, the concrete will fail and there will be a section of land that will sink into the old septic tank.  Many of the older properties did not record where the septic tanks were located, and it is possible that current home owners have no knowledge of the old tank.  Nevertheless, if the seller has knowledge, it is incumbent upon the seller to disclose that fact.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

 

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Fun Facts and Inspiration for March 26


Fun Facts and Inspiration for March 26

Inspiration…
“The mind is everything. What you think you become.”        Buddha

Did you know that…
In order to calculate massive quantities, American Edward Kasner coined the word googol, which is the number one, followed by 100 zeros. But for today’s calculations they use the googolplex which is the number one followed by 1 billion zeros, which allows us to calculate the number of electrons passing through a 40-watt light bulb in one minute. To give you an idea of how massive a googolplex is, it equates to roughly the number of drops of water flowing over Niagara Falls in a century.

In the early days of business written records, the record keeper of the meeting took notes to document what transpired. Because of the amount of information, the record keeper wrote in shorthand and abbreviations. The word used to describe these notes were called minute, as in ‘my-noot’, meaning small. Today we refer to the notes as minutes of a meeting.

During the American Civil War massive numbers of young and untrained soldiers were rushed into battle, causing major problems with discipline. The veterans called this incompetent soldiers “reckies”, rather than recruits. The word “reckies” evolved to include anyone new to an organization who lacked training and required training to become “rookies”.

In the early 1700’s, English playwright John Dennis introduced a metallic device that imitated the sound of thunder. The production it was created for failed and the thunder device was forgotten until several months later, he heard the thunder sound in another play. Dennis raised a public outcry that someone had stolen his idea. Today we refer to such an act as “stealing my thunder.”

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

PLEASE VISIT AND SHARE MY REAL ESTATE BLOG AT
WWW.ROLANDLOW.WORDPRESS.COM

What Every REALTOR® Wants You to Know About Defects in a Home


What Every REALTOR® Wants You to Know About

Defects in a Home

Buying a home is a major step for the vast majority of people and making sure you have expert help along the way is critically important. Having a home inspection by a qualified, certified home inspector is truly a must.

Home inspection

When it comes to buying a home there are two types of defects that home buyers need to be aware of – patent defects and latent defects. The first defect is a patent defect: For example, you walk into a house and you notice a dripping faucet. Although no one truly wants a dripping faucet it is clearly visible to a potential buyer. The buyer came either negotiate having the faucet fixed or they can take care of it themselves once they have closed on the property.

The more serious of the two defects is a latent defect. A latent defect is a defect that is not visible to the naked eye to a normal person. For example: A crawl space under the house that has a leaking water pipe that has resulted in mold. Few potential buyers would go under the crawl space to have a look.

This is why potential buyers should always have a home inspection conducted by a qualified, certified, licensed home inspector. This does not include a relative who once worked on a construction project. This is money well spent as it can save you from buying a home with problems or at least negotiating the repairs.

The home inspector will conduct a thorough inspection of the property and provide the buyer with a detailed, written report of their findings. They will identify patent and latent defects and make recommendations on how it should be corrected. It is important to note that not all latent defects may be observable to the inspector, but they will report those items that they can.

There is one more step that should help to protect potential home buyers. Latent defects that cannot be identified by a normal person, and that the seller or real estate agent has knowledge of, must be reported to a potential buyer. Sellers who fail to report latent defects that they had knowledge of may be liable to the buyer after the closing.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

PLEASE VISIT AND SHARE MY REAL ESTATE BLOGS AT
WWW.ROLANDLOW.WORDPRESS.COM
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What Every REALTOR® Wants You to Know About Seller’s Settlement Fees


What Every REALTOR® Wants You to Know About

Seller’s Settlement Fees

Anyone who has ever sold a home, soon learns that there are a lot of fees associated with sellers and buyers. Although the buyers’ typically have more fees, the sellers have more dollars involved because of the real estate commission. But there is one fee that sellers often times question.

Most of the fees are self-explanatory. For example: the real estate commission of 6.0% to 7.0% is established prior to signing the listing contract. Sellers can quickly compute the cost of the commission.

The seller’s settlement fee is one that often times sellers will question yet is probably one of the most critical fees. In order to understand the settlement fee, you need to understand what the title company does for closing.

The title company represents the “transaction”. It does not represent the seller or the buyer; the title company works on behalf of both the seller and buyer to execute the agreed upon terms and conditions of the purchase contract.

The cost of the settlement fee usually ranges from $400 – $500. This amount may vary depending on how the title company presents its fees. For example: One title company may give a base fee for a closing, whereas another company may break it down for copies, courier services, etc. Nevertheless, the fees will range in this vicinity.

The fees cover a wide range of activity that the title company handles on behalf of the seller. Some examples are:

• Ordering the payoff for any mortgage, including any second home mortgage that may be in effect.
• Tracking down any liens and obtaining a lien release.
• Conducting the actual closing on behalf of the seller
• Wire transfer funds to mortgage companies or any other lien holders that need to be paid.
• Wiring net settlement funds to the seller’s financial account.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland
REALTOR®

Personal Property vs. Real Property


Personal Property vs. Real Property

In real estate, there is often disagreement between personal property and real property. The rule of thumb is that if the property is attached to the property in a manner that would cause damage to the real property if it is removed, then the property becomes real property and should be left with the property upon sale of the property.

Unfortunately, it is often times not a clear-cut distinction. For example: A child’s swing set in the backyard would undoubtedly be considered a personal item and would be removed upon sale of the property. However, if the legs of the swing set are anchored in cement to prevent the set from tipping over, the swing set would most likely be considered real property and need to stay with the real estate with the sale of the home.

It is important that sellers’ and buyers’ determine what is personal property and what is real property. Items that may be construed as real property may be removed from the property at the time of sale provided that the contract clearly indicates which items the seller will be taking. It is also important to note that the seller is responsible for any repair work to damaged real property. This repair work should be completed before the final walk through.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

Earnest Money Deposit – Yea or Nay


Earnest Money Deposit – Yea or Nay

In real estate, one of the items that buyers provide along with an offer, is an earnest money deposit.  The EMD is generally a check that is submitted along with the offer to show that the buyer(s) are  serious about buying the property and that they have some “skin in the game.”

But in reality, there is nothing requiring an EMD to be submitted other than, that’s how we do it.  And further more, there is nothing requiring that the deposit be in the form of money.  Anything can be submitted as a deposit as long as the potential buyer(s) and potential seller(s) are in agreement.  Don’t get me wrong, in the vast number of real estate transactions that take place, there is money on the line as far as earnest money goes.

The important thing to remember is that the money that is submitted on behalf of the buyer(s) is used to offset their closing costs.  It is also important to remember that if the transaction does not go well, the buyer(s) runs the risk of losing their earnest money.  In many cases, buyers who forego their earnest money may be out of the house hunting for some time.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

 

 

The Art of a Counter Offer in Real Estate


The Art of a Counter Offer in Real Estate

In real estate, it is not always a good idea to make a “counter offer”, and the reason is this.  When a buyer makes an offer, the seller has three options: One, the seller can accept the offer; two, the seller can reject the offer, at which point the negotiations are dead; or three, the seller can counter the offer.

When the potential buyer receives the counter offer, they then have the same three options: Accept the offer, reject the offer, or counter the offer.  That means that the seller now has a 67% chance of the offer ending at that point.  Of course, there are many other factors to consider, and a good REALTOR® will help with that process, but it is a good idea to remember that the negotiations can end when the process is sent back to the potential buyer.

 If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

PLEASE VISIT MY FUN FACTS BLOG AT  WWW.ALWAYSWANTEDTOKNOW.WORDPRESS.COM

Roland