Be Wary of Fluff in Listing Remarks

If you’ve ever searched for a home whether to buy or just seeing what’s out there, you’ve read the various remarks describing each property. And you may have noticed that some remarks/descriptions are more factual based while others are more descriptive and use a lot of adjectives…or as I like to call it, “fluff”. Facts are good, but you should be wary of fluff.

What are facts and what is fluff when it comes to listing remarks/descriptions?

Here is an example of a fact-based description/listing remarks…

This 4 BR, 2.5 BA, 3 level brick front town home has been renovated/updated throughout – kitchen, basement, bathrooms, fixtures, appliances, flooring, paint, landscaping, etc. Town home is in back of circle and backs to trees/common area. Fully finished walk-out basement, fenced in backyard w/brick patio & veg/flower garden. 2 assigned parking spaces + visitor spots. Comes w/home warranty policy.

And here is an example of a fluff-based description/listing remarks…

This charming rambler is a perfect 10! Great fully finished basement and incredible den/study attic. Closets galore! Private patio oasis out back. Backyard to die for! Your clients will be more than pleased.

See the difference?

Now why should you be wary of a “fluff” description like the one above? Let me tell you from first hand experience that the property with the “fluff” listing above was,

1. not charming
2. was not even close to being a perfect 10 (more like a 5)
3. the basement was far from great
4. the den/study attic was far from incredible
5. it had just an average number of closets for a rambler built in that year
6. the patio was far from being an oasis
7. the backyard was small, severely sloped toward the back of the house and needed serious landscaping help
8. and my clients were less than pleased (aka ticked off) that they wasted their time and mine going to see the property.

Speaking from experience and in talking with other agents and buyers, I can tell you that the greater the number of adjectives (descriptive words such as “great”, “beautiful”, etc), typically the worse the condition of the property is as compared to the description and the worse the let down is when a buyer sees the property in person.

Remember folks…the listing remarks/descriptions are written by either the seller or the listing agent (typically the listing agent). The listing agent’s goal is to get you to see the property in person and then to submit an offer. Some agents seem to believe that “fluff” will get both of these goals accomplished which is why you see so many “descriptive” words being used in descriptions. The problem with that theory is that the description may get buyers to come through the door, but then the buyers are ticked off that the description was a bunch of you-know-what and submitting an offer is the furthest thing from the buyer’s mind.

I’m not saying you or any other buyer should totally avoid listings that have such descriptions. Just be aware of what may happen and don’t get your hopes up only to be let down.

TIP: If you see a home for sale with a lot of fluff in the description, have your buyer’s agent preview the property on their own and report their findings back to you. That way, you avoid wasting your time going to see a property which won’t work for you.

On a related note…if you’re a seller that thinks fluff will get you an offer or you’re working with a listing agent that wants to use a lot of fluff or embellish, know that buyers and buyer’s agent are cautious and often turned off by such remarks. Be honest, straight forward and “wow” buyers with (real) photos of your property showing them how awesome it is. If you’re property is “beautiful” and “to die for”, the property will speak for itself.

Can You Handle The Truth?

Most, if not all people say they want truth and honesty from others whether it be personally or in business. But not all people can actually handle the truth. This is especially true when it comes to their home because it’s often a perceived reflection of themselves.

Let me share a story with you illustrating my point…

Chapter One – Wanting Truth And Honesty

Several weeks ago, I was contacted by someone who had their home on the market. They were not very happy with their listing agent/broker and were thinking about switching. They contacted me after I was recommended to them by a past client of mine.

Over the course of two weeks, we exchanged numerous emails and phone calls and we had two lengthy face-to-face meetings at their home. I gave them an honest assessment of their situation which included, per their request, an assessment of how their current agent was doing from a selling/marketing standpoint.

I told them that their current listing agent was doing all the right things and their home had excellent exposure. When asked if I would do anything differently from a marketing standpoint, I said that I would do all of the things that their current agent was doing as well as a few things they were not which is what sets me apart from most other agents in the area (I give credit and take credit equally). I did not bash or disparage the other agent nor did I answer any questions that would cross any lines of legality or ethics. In fact, I gave the agent all of the credit they deserved, which was a lot.

Then they told me that they “just don’t feel right about the agent” and that there is something that “bothers” them. I told them that how they click with one agent versus another is the same way people click (or don’t click) with other people in general – you either do or you don’t. And that was not for me to discuss nor steer them one way or another. That’s something they had to decide amongst themselves on their own.

During and after they talked things over, they sent emails saying things like,

• “It was so great meeting you the other day and I thank you for my education lesson. You taught me a great deal!”
• “I will be in touch very soon- and thanks for being a guy full of integrity. I completely appreciate that.”
• “If this current offer goes no where – we will be KNOCKING on your door!!!!! You rock!”

After the offer they received did not work out, they told me they wanted to switch to me and sent me this,

• “We like the way you think. We can get the necessary doc you need to proceed with us and get to it when you get back [from vacation].”

At this point, things looked great!  But then…

Chapter Two – Not Really Wanting Nor Being Able To Handle The Truth

Their property is very unique and there was only one other property on the market that truly competed with theirs – same town, very similar price, similar size, etc. Well, that property went under contract while theirs was still active.

During our discussions about the situation, I said, “I wonder if the buyers that came through the other day are the ones that bought the property on XXXXXXXX. I say that because it would make sense for them to look at and consider that property along with yours.”

I then followed that up with facts – the property had a larger lot, more privacy due to not having a neighbor directly behind them nor having to share a driveway with another property, slightly more square footage, closer to a shopping center/amenities, etc.

Then they sent me this,

• “Actually, it would not, in our opinions! We have decided that it would be in our best interests to remain with [our current listing agent[ as [they] know the value of extremely well built homes in this area! You should be wary about criticizing the properties of potential clients in the future. Just a suggestion!”

The last sentence is what I mean when I ask you, “Can you handle the truth?” The irony is that truth and honesty is what they admired the most about me in the beginning yet, they used that against me when it didn’t agree with their personal opinion even though it was true and was exactly what they needed to hear.

In order to get the listing and make well over $10K in commission, I could have just agreed with them and told them that their home was the greatest thing since sliced bread because that’s what they obviously wanted to hear. But lying or blowing smoke to get a client is something that I will never do. Doing that is detrimental to you and will hurt your chances of selling your home.

But more importantly, it’s not what I’m about.

What I am about is honesty and the truth. I would rather be honest and truthful and waste my valuable time and money (as is the case in this situation) than lie to make thousands of dollars. Despite incidents like this, I will not ever change that philosophy.

Chapter Three – Can You Handle The Truth?

If these folks were you, would Chapter Two be written differently? Would you have taken my constructive criticism and the facts and applied them in a positive way? Or would you have also not wanted to hear the truth?

If you can handle the truth, then we will get along just fine and I would love to hear from you. If you can’t, I may not be the right agent for you.

Because Now is Much Better Than Later

An increasing number of blog readers, sellers and buyers have been contacting me for real estate help and advice. I’m glad to help whenever I can, but many contact me after the problem has already occurred. Contacting me after the fact is often times too late – the damage has already been done. Here are two examples…

My parents just relocated from Delaware and bought a house in [city removed for privacy reasons], VA. On their 2nd look at the house they noticed the stove was different than what was pictured on the online listing.

It was at that time their agent then told them the house was “as is”, however, come to discover after the purchase and moving in and comparing the online pictures to the actual home, all of the kitchen appliances were switched, ceiling fans were removed, the replaced dishwasher wasn’t properly attached and hooked up – it leaked and damaged the hardwood flooring, and the upper air unit had serious problems (due to the “fix” the selling agents inspector supposedly made).

They only had limited time to preview homes and were basing their decision largely by the online pics. Anyway, just seems the out of town “old folks” were taken advantage of.

Your wise thoughts are appreciated. Seriously, I value your input. Thx!

“T”

I have a question that I hope you can  answer.

We just purchased a home in Loudon county…we are actually from out of state & were not familliar with any inspectors. Our agent recommended an inspector that she uses all the time. Well, he missed some obvious things such as rotten plywood for the roof & a rotten water damaged  huge window that is totally shot.

Now these are basic things for the envelope of the  house…how could he have missed them?

To top it off I had asked our agent if he was licensed,insured & bonded she said that he wass. I have since found out that he doesn’t carry any liability insurance for  what he misses–he only carries workmens comp for himself. I also have not been able to find his license# & have asked my agent to get it for me  & she has not responded to my request.

What would your recommendation be at this point? Should we file a claim with the Real Estate firm for sending us to someone who quite possibly is unlicensed & definitely not insured properly? I do not feel properly represented by our agent.

“A“

Though I would love to help “T” and “A” as well as everyone else who has contacted me, I can’t always do so. In “T’s” parents’ situation,  the problem could have been avoided had I been involved in the process in the beginning. But now, they have to battle it out with the real estate broker, lawyers, etc. The same holds true for “A” and her situation.

In many other similar situations, many folks are already working with a real estate agent and/or they are too far into the process and can’t go back and fix the issues that are costing them money and grief now.

Avoid getting yourself into the same situation as these and other sellers and buyers have. And avoid paying the price that they now are (literally and figuratively).

If you’re considering selling your house or purchasing a home in today’s market, allow me to help you now – because now is much better than later.

Click here to contact me now.

How to Buy a New Home and Still Have Representation

If you’re thinking about buying a new home from a builder, check out this question posted by new home buyers on Trulia:

My husband and I put an offer on a new house without representation from a Realtor. We have signed a builder’s contract. Can we still get a Realtor to represent us to go over everything until closing?

My response:

Yes, you can hire a Realtor to represent you at any time. But you will have to pay them out of your own pocket. The builder will not pay your Realtor any commission because you did not have them with you at the very beginning of the process and the transaction.

I’d be happy to chat with you more about this, but it’s a better phone call than an email or comment. What’s the best number to reach you on?

On a related note, you may want to read this post regarding a new home builder taking home buyers to the cleaners (to the tune of $50 million) - http://loudounscene.com/2009/07/beazer-homes-to-pay-50m-to-victimized-home-buyers.html

Here are excerpts from other responses:

I used to work New Homes for a decade. Keep in mind when you a prospective buyer enters the Sales Office of a new home commuity and you are asked to fill out and sign the little registration card, that is so the builder knows how the buyer came to the community. Builders have a formula they use to figure out the pricing of a community. Using historical information, they budget in the price the number of homes that will be sold with Realtor representation and if the advertising campaigns work well,and the road signage works well, sometimes they make out better with more buyers wandering in without representation. It’s business. They are trying to sell and make a profit. My advice for others out looking, if you have a Realtor or feel you want Realtor representation, just write on the card you have a Realtor. That way you will have that option at a later date if you feel you need it.

Remember Builders are no different than glorified For Sale By Owner situations. The person onsite works for the builder. Period. There responsiblity is to sell the homes on that site.

- Peggy James

Yes, you can, but the builder is under no obligation to pay them a commission. So if you want to pay them or they want to do it because they love you, its all good.

- Fred Wolfe

I sell new construction and new home communities with builders/developers of New Construction and New Home Developments and have so for years like many real estate professionals doing so.

This [registering of the buyer's agent/broker] must be done with broker/agent and potential buyer on the very first visit in the Sales office with the Sales Representative for the new home development on the floor during time of walk in to preview models of the new home community.

After first initial registration, the would be buyer can go back a number of times with their friends and family to preview models again in consideration of their purchase in that community once already registered with their agent representing them.

No money is out of pocket with the buyer. The commission earned to the buyers agent/broker is paid by the New Home Developer to the broker and broker/agent representing the buyer and the buyer is allowed to have his own agent represent him in the purchase of the new home development. The new home builder developer of that community represents then the seller which is the Builder of the new home development, and the agent/broker represents the new home community buyer for that developer.

- Sandra Allman

Don’t put yourself in the same situation as these new home buyers. Be prepared and you can have representation throughout the entire process and transaction – without having to pull extra money out of your pocket.

And the great thing is that being prepared is simple:

1. Before you start looking around, interview and hire a knowledgeable Buyer’s Agent experienced with new homes and builders in the area
2. Bring your Buyer’s Agent with you on your first visit and/or have them go out and preview new construction home sites and models on your behalf ahead of time

If you need to speak with an agent that knows the ins and outs of new homes and builders, email or call me. I would be glad to help.

Related Articles

Brookfield Homes starts up sales once again at Goose Creek Bend

Brambleton Launches “Immediate Delivery/Spec Home” Blog Site

Gulick Group Lowers Base Prices, Revises Products in Brambleton

New Home Buyers: What You Don’t Know Can Cost You

Beazer Homes to Pay $50M to Victimized Home Buyers

Home Buyers: Are You Worth $17.50?

Here’s a question for Loudoun and Fairfax County home buyers: “Are you worth $17.50?”

“Duh!” Of course you are!

So why would I ask such an obvious question?

Because you may be shocked to hear who doesn’t think you’re worth it.

Let me explain…

Background

To make a long story short… The majority of homes being sold through a Realtor in the Fairfax County area will have one type of electronic lock box known as a SentriLock while the majority of homes being sold through a Realtor in Loudoun County will have another type of electronic lock box known as a Supra.

Because there are quite a few Realtors that do business in both jurisdictions (Fairfax and Loudoun), both local Realtor Associations (NVAR and DAAR) have agreed to sell SentriLock and Supra lock box keys to the other association’s members for a nominal fee of no more than $175.00 per year.

If you’re wondering why this is so, drop me a line and I’ll email you the details.

Now back to, “Are you worth $17.50?”…

So let’s say you’re a buyer looking in Reston, Herndon, Sterling and Ashburn or… Fairfax, Centreville and South Riding or…(you get the picture). You will most likely run across both types of lock boxes on homes in those areas. Logic dictates that your buyer’s agent would/should have both sets of keys, right?

Wrong. Some Realtors do not have both lock box keys.

The ones that don’t have both keys have to call the listing agent and/or seller to ask them to let you into the home. This means that you have to work around the listing agent’s and seller’s schedule, not yours. This may also make you a bit uncomfortable considering that the listing agent and/or sellers will be hanging around the house while you’re going through it (aka zero privacy and sales pitches).

Why would an agent not have both lock box keys?

It’s not because it’s hard or expensive. To obtain a GE Supra Key, all you have to do is go to the DAAR offices in Leesburg (45 minutes from the furthest point in Fairfax County) and shell out a measly $175.00 per year. With 10 buyer deals per year (not hard to do), the cost of the key amounts to $17.50 per buyer. If a Buyer’s Agent is even a slight bit concerned about their buyer clients, they should have both sets of keys (as I and other quality agents do). Personally, if I didn’t have both keys, I would feel as though I was not giving my clients the service they deserve.

In my opinion, there is no excuse for not having both keys (except for laziness, lack of caring or too broke working as a Realtor to spend $17.50 per buyer client). Even if a Realtor has never done a deal in Loudoun before, the second they get a new buyer client that’s looking in Loudoun, they should go get a key. The longest they’ll ever have to wait to get a key is three days and that’s only if it’s a holiday weekend.

So, home buyers looking in Loudoun… Are you worth $17.50?

If someone doesn’t think so, contact someone who does – me.

I think you’re worth at least $18.00 if not $18.50

Why Buyer Agents Should Attend Home Inspections

From what I’ve seen and heard within the real estate community, some Buyer Agents attend their Buyer client’s home inspections while some do not. Personally, I believe that a Buyer’s Agent should attend every one of their Buyer client’s home inspections for a variety of reasons.

1) A home inspection almost always brings up questions and concerns that are best answered by the Buyer Agent, not necessarily the Home Inspector. For example, the Home Inspector finds out that there is a condensation leak in the HVAC unit and that the unit is near the end of its life expectancy. How does a Home Warranty affect that? And if an item is noted on a home inspection report, will the home warranty company consider it a “pre-existing condition” and not cover it in the future if it’s not fixed prior to settlement?

2) Being at the home inspection saves a lot of future emails, texts and calls back and forth between the Buyer’s Agent, Home Inspector and Listing Agent. Having everyone present at the home inspection allows the Buyer and Buyer’s Agent to get all their questions and concerns out on the table and answered right then and there. This is especially important if you’re coming up on the home inspection contingency deadline and need to submit your home inspection addendum and inspection report right away.

3) As the Buyer’s Agent, it is you who will conveying and negotiating the home inspection items with the Listing Agent. If you don’t have first hand knowledge of the issues, it will be difficult to properly explain the issues to the Listing Agent and negotiate them properly. Home inspection items can range from a few bucks to thousands of dollars so negotiating them properly is not a “small” deal.

4) As a Buyer’s Agent, your Buyer client is paying you thousands of dollars to represent and guide them throughout the entire real estate purchase transaction. Even though your Buyer’s Agency Agreement with your Buyer clients may not say, “I will attend the home inspection”, go the “extra mile” – your Buyer clients will love you that much more.

Beazer Homes to Pay $50M to Victimized Home Buyers

I’ve warned homebuyers before, “Don’t get taken to to the cleaners by home builders and their lenders”. And here’s why: In order to avoid prosecution on criminal fraud conspiracy charges, Beazer Homes agrees to pay $50 million in restitution to homebuyers who were allegedly victimized by the builder’s mortgage company.

Beazer and its subsidiary, Beazer Mortgage Corp., admitted to engaging in several fraudulent mortgage origination practices, prosecutors said, including keeping discount points that should have been used to provide some homebuyers with a reduced interest rate.

Other homebuyers were told they were receiving a “gift” from a charity to cover their down payment when, in fact, the purchase price of the home they purchased was increased to offset the supposed “gift.”

Beazer also accepted responsibility for fraudulently circumventing HUD’s “Neighborhood Watch” and “Credit Watch” programs, and of instituting a strategy of “willful blindness” with regard to some stated-income loans, prosecutors said.

Beazer Homes said Wednesday that it also reached a settlement agreement with the Department of Housing and Urban Development and the civil division of the Department of Justice. The company also said several of its subsidiaries have entered into a settlement agreement with the North Carolina Real Estate Commission.

Despite the $50 million agreement, neither Beazer nor homebuyers may be out of the woods. Prosecutors are also accusing Beazer Homes of mortgage and accounting fraud. And sources say that Beazer may declare bankruptcy, which would put homebuyers at the bottom of the list for getting money once the builder’s assets are liquidated.

And if you think that Beazer was the only one doing this and you’re in the clear because you bought from different home builder, you may be in for a rude awakening. There have been several state and federal lawsuits over the past few years involving many other home builders, small and large and I’m willing to bet more will follow.

The more of the story?

If you don’t know exactly what you’re doing nor what pitfalls and shady practices to look out for, you can, and as in this case, will get taken to the cleaners. Hire a Buyer’s Agent who is familiar with new home builders (aka has done numerous new home builder transactions) and take them with you whenever you visit a new home builder’s sales center.

A Buyer’s Agent who knows the ins and outs of new home builders will help you avoid getting ripped off and keep you out of trouble. They will be able to tell you if the builder is telling the truth or feeding you lies or if their “special deal” is really a deal or just fluff (as was the case with Beazer). Your Buyer’s Agent will also be able to guide you through the builders gazillion page contract and addenda, mortgage/financing process, builder’s Design Center process, pre-drywall inspection, final inspection, settlement, etc.

What will your Buyer’s Agent cost you? Not a penny more than what you would pay if you did not have an agent – the builder has already built the commission into the sales price. And no – the builder will not refund or credit you that amount of commission if you don’t have an agent.

Additional sources: Inman News

The Real Estate Buyer’s Guide To The Home Buying Process-Part Two

To use or not use a Buyer’s Agent, finding the right home for you and preparing and negotiating an offer in your best interest. Part two of a three part series. (If you missed Part One, click here )

So now that you’ve finished digging through boxes to find all the necessary paperwork the lender required, finished filling out the long application, looked over all the Good Faith Estimate and finally secured financing, what is the next step?

If you haven’t already decided to utilize your own Buyer’s Agent, now is the definitely the time to decide. 

• What are the duties and responsibilities of a Buyer’s Agent
• Why should you have your own Buyer’s Agent?
• What are the laws regarding agency and how do they effect you as a buyer? 
• What happens if you don’t use your own Buyer’s Agent? 
• Do I need a Buyer’s Agent when buying a new construction home?

You’ll be able to check out the answers to these and other questions in a "white papers" post coming in the near future. In the mean time, feel free to check out my previous post regarding whether you need your own Buyer’s Agent or not when purchasing a new construction home. For the sake of this discussion, we’re going to assume that you’re using your own Buyer’s Agent.

Though inventory levels have dropped drastically over the last 18 months, there are still hundreds of homes on the market to choose from and builders are constantly making changes to their new home communities including incentives, available lots, etc. To go through all of them would waste hours and hours of your time, energy and gas money and drive you crazy. The MLS, local agent’s web sites, Realtor.com, Homesdatabase.com, Zillow, Trulia  and other sites in general and are not very good at painting a true picture of a property nor the neighborhood. You may think you like a property, but it may be much different in person and you may not like it after all. On the flip side, you may think that you don’t like a property only to find out you really do once you’ve seen it in person.

That’s where an experienced and knowledgable Buyer’s Agent comes in. Part of what your Agent does is to sift through all the properties on the market including new construction lots, homes and communities and find the top 10 that best fit your criteria and are of the best value. They accomplish this by constantly previewing the market inventory and knowing the area that you are looking to move into. While previewing the market, they will know with much more certainty what properties fit your needs because they’ve seen the homes first hand.

But, in order for your Agent to know which properties best fit your criteria, you need to provide your Agent with the most accurate and complete information possible regarding what you are (and are not) looking for in a property. The best way to do this is to compile a list of "Must Haves", "Would Be Really Nice To Haves" and "Nice, But Just An Added Bonus" and provide that to your Agent.

Start with the "Must Haves", the things that are certain deal-breakers if the property does not have them. List the 5 or so things you must have in a property. For example:

1. one car garage
2. four bedrooms upstairs
3. walk-out basement
4. not a corner lot
5. certain subdivision and/or school district

Then move on to the "Would Be Really Nice To Have", the things that are not necessarily deal breakers, but you would really like to have. List the 5 or so things that you would really like to have in a property. For example:

1. center island in the kitchen
2. kitchen flowing into the family room so that you can watch your kids while you’re preparing dinner
3. first floor study because you work from home a lot
4. large walk-in closets for all the outfits and shoes
5. fenced backyard for the kids and/or dogs

The move on to the "Nice, But Just An Added Bonus". The best way to explain this one is that you wouldn’t mind if the property did not have these things if the price reflected it so that you could put them in later and still have the property be of great value.

1. upgraded light fixtures
2. deck already present
3. neutral paint throughout
4. finished bathroom in the basement versus a rough-in
5. finished basement versus unfinished basement

If you’re having a hard time figuring out which category to put each criteria in, rate each of your criteria on a scale of 1 to 10, 10 being the most important. You’ll more easily determine which category each criteria falls in once you’ve done that.

Once you’ve compiled the lists, give them to your Agent and go over them in detail. Explain each category in detail so that they fully understand what you mean and your personal taste. The better your Agent understands what your looking for and need, the more efficient and effective they will be in narrowing down the playing field to the properties best suited for you.

Your agent should then provide you with a a list of the top 5 to 10 properties for your review. Set a time to preview these properties in person and with your Agent. Your Agent will take care of efficiently routing and arranging the showing times for you. Please keep in mind that usual showing times are 9:00AM to 6:00PM. Some are available to be previewed a little earlier and a little later in the day, but that’s the exception. And make sure that you see the home while the sun is still up in order to clearly see the property and to see how much daylight is present inside the property without the lights on.

Important note: It’s strongly suggested that you do not preview more than 5 to 7 homes in one day. If you do, they will all start to blend together and you will forget the differences between them. One of the only exceptions to this is if you are relocating to the area and will only be in town for a day or two and need to see all 10 properties in the limited time you are in the area.

The typical buyer takes about 20 to 30 minutes to preview one property. If you are previewing 7 properties that are all within a short distance of each other, give yourself about 3.5 to 4 hours, including travel time. Make sure that you have something to drink with you and that you’ve eaten something recently or have a snack in your pocket/purse.

If you know you will need more than 30 minutes per property, let your agent know so that they arrange the showing times with the Listing Agent and/or sellers accordingly. Most buyers are uncomfortable with the sellers being home so help alleviate that situation by letting your Agent know that you will need more than 30 minutes to preview each property. There’s nothing worst than showing up later than expected to find the sellers at home and trying to be sales people and give you a "tour of the property".

Now, if you’re looking at 6K to 8K+ square foot homes, that’s a different story. The average time for buyers in that category is 45 to 90 minutes and your Agent should already know that.

Make sure you bring the following things with you while previewing the properties:

• a comfortable pair of shoes that you will easily be able to take off and put back on (you’ll be walking through homes a bit and many sellers wish for people to take their shoes off)
• a note pad and pen/pencil to take notes of the properties as you’re going through them
• a camera to take pictures of properties so that you can remember them later (the pictures online and in the brochures are not always accurate or of high quality)
• if you have a significant other that will be helping you make the decision, make sure that they are present.

Once you’ve seen all the properties, you will probably know which one is the most appealing to you. If you’re waivering between a few, go back to your lists (see above) and rate each one of them on a point system to see which one is at the top of the list. Some people know the second they see a property whether they want to place an offer on it while others like to sleep on it. Whatever works for you is what you should do.

But keep in mind that you are not the only one that may know that these are the best valued properties in that price range and that there may be other interested buyers looking to place on offer on the same property. This is not meant as a sales pitch to get you to rush in and buy something. It is simply a disclaimer so that you don’t yell at your Agent (or me) for not warning you beforehand. I’ve had competing-offer situations many times even in this market because I’m always looking for the best value and typically not the only one doing so.

After deciding that you want to move forward with presenting an offer on a property, you’ll need to figure out what strategy to take with this particular seller. A great Buyer’s Agent will have great negotiating skills and know what to look for in order to negotiate in your best interest. But here’s the "Catch 22"…if you’ve already found the best/under valued properties to begin with, their may not be much room to negotiate on the price so keep that in mind.

But price is not the only thing that you should consider. That’s where the terms and contingencies come in. Here’s a list of some commonly seen terms and contingencies that you may consider:

1. Do you wish to have a Home Inspection?
2. Do you wish to have a Radon Inspection?
3. What is your preferred settlement date?
4. Do you wish for the seller or you to pay for a Home Warranty Policy?
5. Do you wish to have a copy of the seller’s Owner’s Title Insurance Policy in order to save money on your Owner’s Title Insurance Policy?
6. Do you need a pre or post-settlement occupancy agreement for you or the sellers?
7. Do you wish for your closing costs to be paid for by the seller in the form of a seller concession?
8. Do you wish for the seller or you to pay for the termite inspection?
9. What amount will your Earnest Money Deposit be?
10. What personal property and fixtures do you wish to convey with the property?
11. Do you wish to have an appraisal contingency?
12. Do you wish to have a financing contingency? 
13. Are there any other terms or contingencies you wish to have a part of the offer (Sale Of Home Contingency, Coinciding Settlements, etc)?

These are all contingencies and terms that will effect the amount of leverage you have while negotiating. As a general rule, the more contingencies you have and the impact of the particular contingencies on the seller, the less leverage you have when negotiating on the price. You and your Agent should also go over the comps when deciding on a price to offer. "Comps"  are comparable/similar homes in the same and possibly neighboring community that have sold as well as gone under contract within the last 3 months along with comparable active properties. You should also review the latest market conditions in detail.

Once you have agreed on the offering price and terms, your Agent will prepare the offer, review it with you and have you sign and initial where applicable. Your Agent will need to have the Earnest Money Deposit check and lender letter in hand in order to make a copy of them and submit them with the offer. This is to strengthen your leverage as a buyer and necessary in today’s market.

And in case you’re wondering, the new Regional Sales Contract is 10 pages; the Virginia Jurisdictional Addendum is 5 pages; the Disclaimer is 2; the Contingencies and Clauses addendum is either 2 or 3 pages depending on which ones apply; the Buyer’s Agency Agreement is 3 and the Disclosure Of Brokerage Relationship is 1 (if you haven’t already signed them) and it typically takes 45 to 90 minutes to go over all the paperwork. It’s not as bad as you think, either.

Once you’ve got the offer finalized, your Agent will either hand-deliver, fax or email the offer to the Listing Agent or seller (if FSBO). They should call the agent before delivering it as a professional courtesy and what we call "Registering An Offer" in Agent lingo. This makes it so the Listing Agent can contact the sellers and make themselves as well as the sellers available to review your offer. The typical response time is within 24 hours though it may be longer if the sellers are out of town, had an emergecny, etc. But the Listing Agent will usually make your Agent and you aware of that ahead of time.

So now the nail biting and possible sleepless night begins. You’ll probably be thinking to yourself:

                                 "What will the sellers response/reaction be?"

            "Will they accept, counter or reject my offer?"

                         "What if they counter or reject – I really like the house!"

It’s not fun, but every buyer goes through it. But keep in mind…Sellers usually want to sell their home as much as you want to buy it so they will want to get a response back to you as much as you want a response back.

The sellers have the option to accept, reject or make a counter-offer. If the reject it, you have to evaluate why and if it’s worth presenting an offer higher in price and/or with better terms. That’s something you have to decide along with a discussion with your Agent.

If they make a counter-offer, that’s better than a rejection! And they’ve already shown you that they are willing to negotiate. You have the option of accepting their counter-offer, rejecting it or making a counter-offer of your own. Typically, you end up meeting somewhere in the middle and everyone is happy. But once again, thats something you have to decide along with a discussion with your Agent.

Hopefully, you’ll have your offer accepted in its entirety. There may be some slight clerical or administrative changes, but they’ve accepted the price and terms. It’s been delivered to both parties and is now a Ratified Contract – congratulations!

So now what? What do you next? How does the Home Inspection work and when is it? Who notifies the appraiser to get the appraisal complete? What about the title search and survey? What about packing and hiring movers? What is settlement like? What all do you have to do before settlement date/moving in?

Ah, the suspense continues… We’ll cover this and more in Part Three-"From Ratified Contract to Settlement Date". Check back shortly!

Click here to request a free copy of the Real Estate Buyer’s Guide To The Home Buying Process to be sent directly to you via email.

Related Articles: The Big Picture: Rules For Real Estate Agents

Additional Resources:

• Official Loudoun County Web Site
• Loudoun County Public Schools
• Official Fairfax County Web Site
• Fairfax County Public Schools
• Loudoun County Real Estate Market Update-March 2007
• The Ashburn Community Blog