We think that only Buyers need to get an Inspection on a home, but in reality when the Seller gets an inspection it can save them money on costly last minute repairs and even can increase the value before you list! Don’t forget to disclose what you found and how you fixed it!! Remember either you will find it or the Buyer will…
“Measure twice, cut once”
– adapted from John Florio 1591 book Second Frutes
Check out my Podcast by Clicking on the Image Above! Seller’s Get Your Inspections!
When a Seller has an inspection BEFORE they list, they have the opportunity to have things fixed on their own time table and thus costing less money for having urgent work done on the home to accommodate a Buyer Closing schedule. Here are just a few items that will come up when a Buyer has their inspection. Get ahead of the situation!
Most Common Inspection Items
Electrical – GFCI missing or not working, electrical outlets not working or not installed properly, exposed wires, circuit breaker mismatch, panel not labeled
Plumbing – Anti siphon missing from hose bib, leaky faucets, angle stops corroded or unable to move,
Sewer or Septic – Obstruction from the street to the home, belly in the line, deterioration of the line or tank
Termites – You really want to know this before you list!
Dishwasher – No high loop, not working properly, too noisy
Pool and/or Spa Equipment – Not working properly, less than 2-3 years useful life, not current to code
Water Heater – Leaking, no pan, less than 2-3 years useful life
HVAC – Not properly maintained, less than 2-3 years useful life, previous patch work done to keep it going, old R22 Freon
Windows – Broken seal, cracked windows, doesn’t open/close/lock
Roof – Debris, cracked tiles, roof less than 2-3 years useful life
Vegetation – Too close to the house or touching the roof (some loan products will call this out during the appraisal)
Handyman – Toilet seat not bolted properly, cracks in plaster or wood, door handles, locks, missing keys, tile cracks, doors not able to open close properly, missing or old smoke detectors and carbon monoxide detectors when there is gas in the home, anti tip device on the stove/oven missing, lack of proper attic insulation
So these are just a few of the things that a prospective Buyer’s Agent is going to be looking for. Why wait until you have already decided on a price for the home and then the Buyer wants you to come down on price or hurry up and fix everything in the next 2 weeks!
When it comes to whether or not to pay a Buyers agent as a Seller there are many things to consider and it’s not as easy as yes I want to or no I do not…let’s discuss
“Price is what you pay. Value is what you get.”
– Warren Buffett
Check out my Podcast by Clicking on the Image Above! Buyer’s Agent Commissions – To Sellers
When it comes to whether you as a Seller should consider paying the Buyer’s Agents Commissions here are a few things to consider:
Do you have other offers that provide a better net that should be considered? Or is this the only Offer you have received and if so, how long have you been on the market?
Always think about the net, not only to yourself but to the other side as well. This is a strategic move not a move based on empathy. (For those who think this is coming from a position of weakness)
If a Buyer needs to pay their own Agent that more than likely will increase their closing costs since currently it is not able to be wrapped into the loan. So again, strategically it makes sense for a Seller to included the Buyer’s Agent costs in a way that those costs can be included in the loan by agreeing to pay the Buyer’s Agent.
If the deal is cash then the issue of commissions is not as strategic as it is more a matter of principal to one party or the other. As a Seller, I would say don’t stand on principal if that is the only thing getting in the way of the deal. Just get to the net!!
Deciding on who pays what should not be a matter of conflict but a matter of strategic negotiating between the two parties. If the Buyer wants their agent paid then the best outcome for the Seller is to work with the Buyer to make the requests of the Buyer happen, and deal with the net with the Sales Price. This strategy really goes for everything, HOA Fees, Home warranty, and Concessions needed to close, if it was important enough for the Buyer to ask, give on everything except the Sales Price. Be strategic!
As a Buyer’s Agent we have new rules and now we have revised Rules!! Here is the basics of what we now need to do and how this affects you, the Buyer!!
I can’t predict the future, I have to wait for it like everybody else.
– Niels Bohr
Check out my Podcast by Clicking on the Image Above! How all the new rules affect Buyers!
The Basics of the Old Rules, New Rules and Revised Rules!! (as of today in Arizona)
Prior to August 2024 Sellers could provide an amount that they felt comfortable providing to a Buyer’s Agent prior to seeing the property on the MLS (Multiple Listing Service)
Prior to August 2024 Buyer’s Agents could show a property without a Buyer Broker Agreement (it was allowed, but optional, depending on Brokerage
After around August 1, 2024 (varied by location) Buyer Broker Agreements became a necessity for which we needed to have signed by the Buyer’s Prior to seeing a property and then submitted to our Broker for Review. We needed to communicate in writing our fees and have all parties to the Buyer Broker Agreement agree to them in writing prior to seeing properties.
Between August 1, 2024 and January 31, 2025 Sellers were able to authorize their Agents to fill out a form called a CABB to provide to the Buyer’s Agent stating the amount they felt comfortable providing to the Buyer’s Agent should they get under contract. (this seemed to cause confusion-so it was stopped)
After August 1, 2024 (varied by location) a form called the SCA – Seller Compensation Agreement was used to have the Buyer request from the Seller an amount or percentage to pay their Buyer’s Agent. Prior to January 31, 2025 this could be used in addition to the CABB, which is what caused confusion. Now if the Buyer is requesting the Seller make a contribution toward commissions to their Buyer’s Agent, the SCA form is how it is done.
There are a lot of other rules regarding the new practice so please do not hesitate to call me 480-809-5853 or contact your local Realtor® and get the latest scoop on what the process is!
The Value of a Great Buyer’s Agent goes beyond the time and money you save, it also includes peace of mind that all the boxes are being checked by a professional that deals with the boxes on a daily basis.
“Time is more valuable than money. You can get more money, but you cannot get more time.”
Not just years experience, but volume as a Buyer’s Agent | Some agents pride themselves as a listing agent (ratio should be no less than 40% Buyer’s Agent Experience)
Relatable Buyer Stories | Can they give you stories about past buyer transactions that show you they know their stuff?
Systems | A Great Buyer’s Agent has done this so many times they have a process (checklist) of what needs to be done and when!
Able to answer your questions | Are they open to answering all your questions and even “what would you do” based on your own history with buyer’s agents?
Can they express what their value is to you as your Buyer’s Agent? | If their value is all generic that could apply to any Buyer, then they don’t know you and your needs!
Post NAR Settlement
So we are still getting used to the ramifications of the lawsuits and the proposed NAR Settlement and awaiting for a definitive answer on everything we are being told, as to all the changes. There is one thing that seems to be more than probable as remaining and that is Buyer Broker Agreements–The Agreement between the Buyer’s Agent and the Buyer(s). This agreement is a very important document and if you are thinking of buying a home in the near future, I recommend asking to see this document well prior to wanting to see homes. While you are at it, ask to see all the documents you are going to be requested to sign either by the Brokerage you are thinking of using and by the State Real Estate Board you are in.
In the end a Great Buyer’s Agent is worth every dime and then some…like peace of mind that all the boxes are checked…
HAPPY HOME BUYING
Here is my YouTube Video Beyond the Door (Buyer’s Agent)
There are a lot of rules with 1031 Exchanges but there is ONE Huge rule that many people don’t talk about and it could disqualify your entire 1031 Exchange…
“The Best Way to Predict the Future is to Create it.”
Thinking that Holidays and/or weekends don’t count–THEY DO COUNT SO GET YOUR CALENDAR OUT! The IRS does not care that you don’t know how to count 45 days or 180 days or that you were sick or it was a weekend…or even Christmas!
Not making sure that you can close on the right amount of properties in time.–AGAIN THE IRS doesn’t care that you found something in your due diligence that disqualifies all of your choices that you made in the first 45 days!! HINT: Get under contract while you are under contract to sell your 1031 Exchange Property, do your Due Diligence and submit your properties by the 45th day with confidence that you can close on time!
Deciding to File your Tax Return for the year you did your 1031 Exchange BEFORE YOU COMPLETE YOUR EXCHANGE!! — NEVER DO THIS! Why this is rarely talked about is beyond me! But, I think that unless you deal with 1031 Exchanges as a CPA and a Realtor (which I am both) you forget this little but VERY IMPORTANT RULE. If your 180 days starts around mid-October (again get your calendar out!) then your 180 days ends around April 15th of the following year. If you file your tax return before April 15th and you have not finalized your 1031 Exchange Closing you just BUSTED your 1031…trust me that is not a good thing!!! So be sure to extend and then be sure to file by the extended due date after you finalize your 1031 Exchange!!!!
Thinking you can decide you want to do a 1031 Exchange on the day or after closing of your property you are selling! OMG get your qualified intermediary figured out BEFORE you even put the property you are selling on the market! Know who your team is, Realtor, Title, and QI. Have conversations with all of them, know their qualifications ask questions and then keep at it until you have a game plan. Having bad representation is not an excuse for missing deadlines or doing the 1031 Exchange incorrectly. The IRS is very unforgiving on this, if you want to play in the big leagues of 1031 Exchanges you need to know as much as your representatives and be on top of it!
Not reading and knowing the HOA rules that require the property to be owner occupied for a certain amount of time before it can be rented. WOW, I have seen this one Bust a 1031 and/or cost the investor a lot in penalties because they had to keep the tenant and pay the monthly HOA fines. [Real Life Situation–Agent/Buyer did not read the HOA documents that said the Buyer needed to occupy the property for 2 years before it could be rented. The Seller didn’t disclose this information either. The Seller had a tenant with a lease in place. On the close of escrow the HOA sent a letter to the new buyer (part of the 1031 Exchange) we know you have a tenant, you must pay us $400 a month for violating our policy of not being owner occupied AND as you know you cannot terminate the lease as per the Arizona Revised Statues…have a nice day (ok maybe they didn’t say that last part–but it was a big mess, PS I was not involved in any part of that transaction!)
There are so many things that can be done with a 1031 Exchange like combining it with a Section 121 (and no I am not going to go into details-you need to talk to your CPA!!) Doing a 1031 Exchange is not for the faint of heart for any of the participants, lots of rules, unforgiving of mistakes, and a lot of money on the line if your 1031 gets busted!
Here is a YouTube Video about the 1031 Exchange Concerns
Some Questions to Ask Yourself When You are Thinking of Buying or Selling Your Next Home!
Do I love my neighborhood?
Am I ok with the time that it takes to get to the things I do daily or often?
What am I most dissatisfied with my current home that brings up the question in the first place?
Are any of the issues that concern me temporary?
What would my ideal home have, be located, include or not include?
Can you envision yourself in the new home and does it excite you?
If You Are Ready for the Next Step…Here are Some Questions to Ask Yourself to Have Ready for your Agent!
Where do you ideally want to be located?
How far in minutes from the things you do daily or often?
Single Family, Condo, Patio Home/Town Home?
HOA or No HOA?
How many parking spots do you need on a daily basis and for guests?
How many pets do you have or want to have and their size?
Is your family size changing in the near future?
Do you need a gas stove or is an induction stove your ideal?
Do you want a pool? Private, Community, or NO Thank you!
Guarded, Gated, or None of the Above?
Approximately what do you want to spend per month? (not just what you qualify for)
Talk to your agent and let them know while you may qualify for a certain amount that doesn’t mean you want to necessarily spend that amount.
Also, it is important to separate your “wishes” from your “deal breakers” and let your agent know which is which. Sometimes, one persons wish is another persons deal breaker, so if it not a deal breaker, bring it up and then immediately say it is NOT a deal breaker.
When you get the list of homes, also ask for the criteria used to create the list so you can double check that there isn’t more or less than what you want! And Do NOT Hesitate to tell your agent you want to change the criteria if you aren’t finding what you want. Expanding a couple of blocks one way or the other, or being ok with a den instead of a bedroom can open up a whole set of options!
Here are some ideas on the Buying and Selling Decision!
Some Questions to Think About Before You Call A Real Estate Agent!
What price point do I want to be in?
Do I want community living or single family home?
Do I want or not want a pool and/or spa?
Do I want it to be super walkable?
How close to Restaurants and Shopping?
How close to friends, family and/or work?
HOA or no HOA
You want to figure out what your ideal home would be like! You may not get 100% of what you are looking for, but you have a better chance of finding it if you are more specific than a 3 Bedroom/2 Bath in the City. You want to be able to articulate the most ideal scenario. When it comes to price point you want to be in a range and when looking exceed the range a little in case you are able to negotiate a lower price.
Some Questions to Write Out Before Interviewing Real Estate Agent!
What is the temperament I would prefer in an agent?
Are they available to block out a day or two at a time to show when you are in town?
Will they do FaceTime previews with you while you are out of town?
Have they had out of town Buyers before?
What did they find to be the most challenging?
Do they feel the Buyers enjoyed the experience?
What will be the driving arrangements when you are in town?
Working with out of town Buyer’s takes some organization! The schedule needs to encompass timing limitations and possible new home build hours, possible traffic, breaks in between to eat and drink, etc. it takes a lot of flexibility as well. So you want an agent that seems like they are up to the task and hopefully have done it successfully before.
Here are some ideas on how to find the right Real Estate Agent for you when you are moving to a new city!
Some little known positives about higher interest rates!
Buyer’s have less competition to buy a home
Seller’s more likely to accept a contingency
Seller’s less likely to ask for an Appraisal Guarantee
Seller’s more likely to pay Closing Costs
Seller’s less likely to ask for Post Possession
Buyer’s have more homes to choose from
When Interest rates are low, everyone is buying, including cash buyer’s…why? Because they aren’t earning money keeping it in the bank, and the real estate prices are historically going up in a low interest rate market, so it’s a win-win for cash buyers to buy. This trend reverses itself when real estate prices go down substantially, and then those investor’s with cash start buying again when the sentiment is that the real estate market has hit a bottom. Investor’s tend to stay out when the market is stable and interest is high.
What it was really like when interest rates were low…
Seller’s receiving multiple offers on the first day!
Seller’s only taking offers for 24-48 hours and only if you saw the property!
Seller’s asking to stay in the property after closing for free for up to 6 months!
Buyer’s offering sometimes 25% or more over list price and then guaranteeing the Appraisal Gap before even knowing what it would appraise for…
Seller’s laughing at a contingency offer and then tossing it in the trash
Seller’s dictating everything from title company, buyer paying all closing costs (including those normally paid by seller’s), and when closing would be, denying homewarranties…
SELLER’S ARE IN CHARGE WHEN INTEREST RATES ARE LOW!
Here are some ideas on getting the Seller to help reduce your interest rate!!
QUESTIONS TO ASK YOURSELF WHEN YOU ARE BUYING A HOME
If I don’t have a pet today, will I maybe want one in the future?
If I have one pet today, will I maybe want more than one in the future?
What type of pet would I want in the future and what would the adult size be?
Have you considered the various factors of your pet like
Have you considered the various factors of your pet like
HAVE YOU CONSIDERED THE VARIOUS FACTORS?
Where would the relieve themselves (inside options?)
Where would we go for walks
Are there other similar pets to play with
Do they need room to play on their own outside or is direct supervision OK?
HOA’s and other Rules
Unfortunately, when you live in a Condo and/or have an HOA there can be restrictions on the type, height, weight, and other limiting characteristics for the type of pet you may have. I actually came across and HOA that said NO Birds. In the end it wasn’t worth the fight with the HOA, it was just easier to move on and buy another home. But, if pets are a big part of your life, you may want to consider a NON-HOA home for your next purchase. You will however, have to abide by the City rules, mostly related to leash laws and noise rules and regulations. So think through your pet plans before finding yourself in a tangled web of fines and/or litigation.
Puppies now, but not for long…things to think about with your next move!
Not responsible for things like landscaping, pool maintenance, outside storm issues
The Cons of living in a Condo!
Pesky neighbors
No private yard
HOA Fees that may increase or have assessments due to underfunding or under accounted for expenses
What makes an awesome Condo!
Concrete or sound proofing walls, floors, and ceilings
Lot’s of areas for gatherings, BBQ Grills, Outdoor Patio’s, Pool & Spa, Indoor Clubhouse, walking paths, dog runs, and rooftop entertaining. (Think options!)
An HOA that is financially sound and well run and financials that seem strong. A steady increase in HOA dues and not a jump. Surprisingly, those HOA’s that charge a fee when there is a sale and those funds go into the improvement of the building, are also a good sign.
Walk-ability to whatever you love! If you love baseball then maybe a Condo that is right next to the Diamondbacks Stadium is for you. If you like Shopping then a Condo next Scottsdale Fashion Square may be your ideal condo. Or maybe you are a Capital Grille fanatic (like me) there is a condo within walking distance of there, too!
