The MLS. It’s harmless… or is it? There are lots of things to legitimately be afraid of. Let’s talk about adding, or seeing, “as-is” on a listing. Should you be afraid? Some people are.
When buyers see the words “as is” it sometimes freaks them out. They think that there could be major issues with the property and that they won’t have a right to inspect it. Well that’s not entirely true. Even though it says “as is,” you can request in your offer to do a home inspection and leave in the right to opt out if substantial repairs are needed (yes, the seller might say “no inspections” and that IS scary! But sometimes still manageable). Although the sellers may not be willing to fix any issues, they could still do a seller credit or even reduce the price by $5K or $10K. And since “As Is” scares away so many buyers, it will potentially have less competition when making an offer, and thus a lower purchase price.
Click here to view the embedded video.
I actually love helping buyers with “as is” properties because there is usually less competition. Estate sales are great as well and most of the time they are listed “as is.” But consider it differently if you are selling. In this case I don’t think sellers should ever us “as is.” In the state of Virginia almost all homes for sale are “as is” already, so why even put that into the MLS remarks? If you are making a purchase more buyers will be scared away because it makes them think that there could be something substantially wrong with the home. Go figure.
Buying As Is Tips
Selling As Is Tips
Principal Broker, DC, VA, MD Frankly Real Estate Inc
* Never too busy for you!
What is it? Why should the buyer care? What does it obligate them to, and when is it smart to use one?
Like selling a Rolex at a flee market, fees might be lower but what it counts is the net takeaway. I find reality hits hard for FSBO’s that think they don’t always need a Realtor. Here’s a brief trip through my experience after helping only 300 FSBOs. Hint: Ur Doin’ It Wrong.
In most industrues, you understand “the competition.” Why should Real Estate be any different? An agent’s track record explains why you should bring your “A” game against a team you’ve never seen play before.
Is there a standard commission? Is it ethical to set standard commissions? What’s the deal with this, and why is it so expensive?
To win your business, some agents will tell you what they want to hear. What will this net you? Nothing. Here I pluck apart some of the oldest myth’s and realities in pricing.
The day you stopped caring about finding the bottom of the market and decided to live somewhere for at least 7 years. Yeah, I know about that day. Here is where I discussed whether or not it is all it’s cracked up to be.
I get it. Sometimes I can be a little melodramatic with my blog titles. Here’s the thing: everyone wants to sell fast. But I can promise you that you will never achieve a quick timeline if you aren’t listing it right in the first place. Do it right, or don’t do it. It’s that simple.
I don’t believe in a good deal. The best way to buy if possible has a simple formula: time and choices. Often those two are not available, so what do you do?
“I used to rebate but then I got good…at saving the client money.” $395 in admin fees: Junk or legitimate use of your money?
Treating a client like you would a relative, even if that means talking them out of buying, is my modus operandi. “…last week I talked to my cousin on buying a million dollar condo. I do that for client as well.” If I can’t treat a client like family, why am I working for them at all? It’s more important that you trust me (Ha. “Trust Me. I’m a Realtor!”) than getting to take home some cash.
Here’s a reality check: Realtors fudge their numbers. Bottom line: it’s unethical. Here’s how to be aware of a home that’s being re-listed, be brand new and going to sell fast even if it’s been on the market for greater than a year.
Nobody tells consumers that the insurance is actually optional. Let’s talk. I am not saying “don’t buy it,” just a word of caution.
That is all of them, hope I didn’t waste too many hours. If you prefer reading in a book format, send me an email, I can send you one. And remember, never too busy for you or your referrals.
By Frank LLosa Broker,
Frankly Real Estate, Inc.
To celebrate I have 17 free Angie’s List 1 Year memberships ($10 value) left to give out. Start by making sure you are a Facebook FAN of FranklyRealty at www.facebook.com/FranklyMLS. The first dibs go to past clients, if you already have an account I can add a year. Then readers/site users that are local, non-Realtors and that follow and enjoy the Blog or are fans and avid users of FranklyMLS.
I also have 15, $5 Starbucks gift cards to give out. Same criteria as above, just reach out directly (even if you have another agent, but love the blog or FranklyMLS). Use the Contact Us” link on the right.
As for the July 2014 market? For newly listed homes we did get a couple offers for a few homes, but the word on the street is that homes over 14 days, it is dead out there. We call it crickets. Is it the typical summer slowdown or something more? I don’t know. But buyers, you have a little more power now, while it might be inconvenient for you, it is likely inconvenient for others too, and that can be in your favor.
And as I told somebody today on the phone, stop with the “Well I wasn’t sure if I was going to buy so I didn’t call because I didn’t want to bother you, and then we accidentally bought a house.” I hear it all the time. Don’t be shy. When in doubt, reach out. Even if it is 6 months before you are ready to buy and even if you aren’t sure. Just say hi, so if that perfect place hits, we’ve gotten the formalities out of the way. Oh and don’t find any inventory? We can find it for you (non-MLS), ask how.
Frank LLosa, Esq. Broker
Frankly Realtors MD, DC, VA
Lawyer only in NJ
Cricket photo credit
Bottom line, Deadlines… I don’t like them, they can hurt you, but sometimes they are necessary.
If you have read my other posts on bidding wars and putting in offers to buy Virginia, MD or DC homes for sale, you know that I obsess with the art of negotiations. How you put in an offer matters. Want me to prove it? I can send you a 20 minute, non-public raw video I made of an analysis I did for a 7 contract bidding war. We were on the listing side. I compare and ridicule the 7 offers. You can then see how to make your contract stand out and see me yell (at the screen) for not-so-sharply written contracts and how that hurts the client. This shows you what not to do. It shows you a spreadsheet analysis and how to make your offer the best in each column… except maybe the price. I prefer my clients win with the lowest offer or at least not the highest offer. (this private link is only for people not currently working with an agent)
Back to deadlines. I don’t like them. Why? Experience. Seems logical to put in an offer and put a deadline of X days or X hours. Logic won’t win you a home for sale in Maryland in a seller’s market.
The problem with Deadlines
1. If you give somebody until Tuesday at 3:30pm, the tendency is for the home seller to wait until the entire time. A get out of jail free card, a cart blanch no stress, “we have until Tuesday at 3:30pm” to reply. The buyer sees that as the maximum time to reply. The seller sees it as the minimum time to reply.
2. During that deadline timeframe, they shop your offer. Lets say they were going to get back to you on Monday, but, you gave them an extra day to run up the price.
3. Weakness. A deadline can show weakness. When I get an offer that says to reply by X, they tend to be more desperate buyers. I use this sometimes to get my clients more money on the listing side. So on the buy side, sometimes playing it cool is better
4. Put a fast deadline? Sometimes, but pissing off the seller is also not helpful. So it is a fine balance.
On the Flipside, an example of when a Deadline WAS used.
Here is a client testimonial video where a deadline WAS used to beat out others in a bidding war, before the war could start. Amazing story if I may say so myself. The point? Every deal is different and will your aunt who might be a Realtor, do this for you?!
Tips with Deadlines if you decide to use them
1. Things always take longer then they logically should. So first ask the other side when they think they can review the contract. Then if they say tonight at 7pm, your deadline of 10pm or the next morning seems reasonable.
2. Avoid difficult times like 5pm. People work. Putting a deadline at the exact minute that people clock out… maybe not ideal.
3. Consider starting with no deadline and if things are slow, adding the deadline after the fact
4. Consider reminding the home seller that you have the right to withdraw the offer at any time. Even though this is technically the default, adding that makes it more clear that you might remove it if they wait too long. You remove the security blanket of having all the way up to the deadline with no risk.
What to do when we get a deadline, if you are the seller.
1. Remain calm! Too frequently a deadline will freak out a client. It adds stress.
2. If you are not accepting the contract, there is less of a need to counter within the deadline timeframe. A counter kills off the contract anyhow, so no need to rush to their timeline.
All of this stuff matters in winning bidding wars and ultimately trying to help a client get the best and lowest net on a home. When picking a Maryland, DC or Virginia Real Estate agent, sure you can get a “deal” elsewhere with a discount or rebate, but will your Rebate agent do this? If so… hire them.
These suggestions are general. There is no “So you never use them.” Each deal is unique. Strategy is of utmost importance. So sometimes yes, sometimes no.
If you are sick of losing deals or want to get off on the right foot from the beginning, please reach out to me about where you are looking to buy. Reach out early! As in 3-6 months before you THINK you might be interested in buying.
Frank LLosa Broker
Frankly Real Estate Inc (please report typos)
Blooper reel video on why NOT to use a Deadline in a Real Estate purchase.
Update 1/15/2014: Listen to the unplugged version of the show
Tune in for a 1 hour interview on the Real Estate Radio Washington show. Learn how Igot started in Real Estate. How I became the #1 agent in America, under the age of 30, in my first year… (self proclaimed). We also talk about “Buying a listing”, How I found my wife on Match, so finding a Realtor online shouldn’t be that big of a deal. It will be fun.
If you miss the show, I will try and get the audio and post it here. But it is much more fun to listen on air. Saturday Dec 14th at 10am station 1260 AM dial.
(welcome FranklyMLS members, to remove just reply REMOVE)
P.s. Did you know that statistically you can do just as well selling your home a week before Christmas, as you can a week after the New Year. Ask for my detailed analysis of the data.
P.s.s. Random image of the month. At airport with my scooter luggage, the 2 boys and 3 carry on bags.