This is what everybody says ……
The start of the New Year is the perfect time to set goals for the next 12 months. If you haven’t already, it’s time to make plans for 2018. Most big goals at the start of every new year deal with fitness, home or work. Whether its finding a new job or losing a couple of pounds.
Well, if you are planning on making a home purchase or selling your house in the next 12 months you really have to be aware of some of really bad recommendations and guidance floating around. After being in the real estate field for a while I tend to start hearing some weird and off the wall advice from lenders, real estate agents heck even the family members of my clients.
It’s like one of those things you hear and you shake your head back and forth for a minute and say to yourself “Really?” Please don’t make these mistakes or listen to someone that may not have your best interest at hand.
Don’t just take my word for it. I have asked a group of real estate professionals around the country about this.
Check out what they have to say below…
Realtor: Dustin Brohm, Salt Lake City, Utah. There is a fairly new “FSBO assistance” company in Utah called Homie, and it’s all about “saving money by not paying commission.” Well, we see it all the time where Homie UNDER prices homes and sells them for less than if listed and marketed properly. I’ve heard about “Homie flippers” who look for homie listings because they know they get underpriced quite a bit. Making the sellers believe that they’re saving money is such a huge disservice, and costs them money. Frustrating.
Realtor: Eric Larkin, Cocoa Beach, Florida. “It was new construction, I didn’t think I needed a home inspection” was something I’ve heard from the sellers two years later when they needed to sell. The buyers home inspection showed flashing issues and AC ducts not connected and open in the attic.
I had the one listing and two buyer sales that year in the same community. All three homes had the same issues from the same builder. All three original owners did not have their own home inspection and trusted the builder provided a quality home. Always get an inspection even if it’s new construction.
Lender: Jason C Frazier, San Ramon, California. Agent wanted client to email all their personal documents, because “email is safe and secure”.
Realtor: Cynthia Nina-Soto, Salem, Massachusetts. “If you want to buy a house and your credit is low you need to payoff and close your credit cards. Only keep one for emergencies” this was said to one my buyers by a relative who “knew about lending” thankfully I was able to pair them with a reputable lender.
Realtor: Scott L Crossland, Tampa, FL. Father of buyer to son and daughter-in-law (while I was showing them townhouses): “Negotiation 101-give a low offer so you have room to negotiate.” Against my advice in this current hot seller’s market, I put in the offer they wanted. They were confused and angry when their offer was outright refused with no counter offer.
Realtor: Laura Twors, Pasadena, California. An agent did NOT give the proper advice to a buyer client when writing a contract on a purchase. The buyer had been beaten out many times because their offer was contingent on the sale of their current home. The buyer requested that the next offer be written non contingent so they could get the house. The agent complied without telling them that is a very bad idea. True to form the purchase was due to close before the sale of their home and which put them in a very messy situation.
Realtor: Ana Natasha Phillips Ferguson, Baltimore, Maryland. You (the seller) send the buyer a letter, letting them know you do not want to move forward with the contract. Not a release a letter. In Maryland we have to have a release with all contracts, unless there is a HUD1 or a CD. Never a letter to the buyer or buyers agent. Really!!??
Realtor: Mike Mazur ,Hockessin, Delaware. “You should just accept the offer. It’s the best you’ll get” given to a seller after one week on market.
Realtor: Mike and Cindy Jones, Jacksonville, Florida. First time buyers mother..from another state advised her daughter in a sellers market to offer $20k low, ask for closing cost and worst yet ask the seller to have a screened lanai installed prior to closing. Buyer really wanted the house and it had everything she was looking for. She didn’t get the house of course and ended up “settling for another”
Realtor: Betty Silva Raschko, Las Vegas, Nevada. This was in 2004. The market was super hot in Vegas. And I was newly engaged and looking for a house. We were absolutely clueless about buying a house. Luckily for me, I did work in a loan office and saw how people can get behind quickly and how bad credit can limit your choices. So, we met a snazzy suave agent who told us to buy the best, most expensive house we can get and to take advantage of the low ARM rates and have a low mortgage payment. And not to worry because we could refi in a few years or just move because no one stays in their house for long anyway. I am so happy we didn’t listen to this guy. During the recession I got laid off and had a baby. Luckily we bought below our means and were able to keep up with our house payments. I know it’s not sexy to say “buy within your means” but being foreclosed on ain’t sexy either.
Lender: Erika Alves , Spring Hill, Florida. Buyer signed a contract that had written in the additional terms area (paraphrasing) seller will make every effort to close by the closing date of X however buyer agrees to work with seller’s time line. Three days before the closing date the buyer received an addendum for an almost four month extension and when she tried to fight it first thing listing agent pointed out was the clause and how she had initialed next to it. The buyers agent had her sign that but did not make them clarify or put an end date to “sellers time line” and left if completely blank. Vague-buyer had to walk away from the house because she could not wait another four months. Second home she was clear to close and lost right before closing. Hopefully third times a charm for her.
Stager: Tori Toth Arena, Howard Beach, New York. A real estate agent advised the potential client not to hire a home stager because the home would sell quickly. Staging it would be a waste of money since the home needed so much work. It would most likely be sold to a builder who would knock it down. Needless to say the client, the daughter of the late homeowner, used another agent, hired us for a staging consultation . We did some light staging, more cleaning, decluttering and some minor repairs to freshen up the home and the property sold in 24 hours. The staging showed the buyers the potential of the property.Realtor: Samuel Awosolu, South FloridaSeller: ” I just spent $30K on a new pool so I’m going to add $30K to the selling price!” My explanation: ” Doesn’t work that way. The value will come from recent homes that sold in your neighborhood. If those similar homes in your neighborhood don’t have a pool. It can actually hurt you.”
Realtor: Sonia Figueroa, Chicago, Illinois. I help the hispanic community and unfortunately they don’t understand the home buying process to well or even speak english sometimes. A shady realtor was helping them and he knew that had a lot of cash in the bank so he said that he would show them houses and he told them he would talk to the seller directly to get them the home as if it were a for-sale-by-owner sale. Well, they ended up giving him $10,000 because they didn’t know any better as he told them it was earnest money or a form of down payment to get the home. Needless to say you know what happened next he ran off with the money.
If you have a story you would like to share please let me know feel free to email me at [email protected] or text me on my cell at (773) 308.5505.
If you are looking to buy or sell beware!