Repair Request

Repair Request Negotiations: CYA - Every one in any legal transaction wants to cover their ____ and, I believe, most people also want to create a win, win, win, outcome for all involved.

CYA sometimes leads to complications for no real reason.  For example, the home inspection done our home "uncovered" flexible polybutelene piping.  The home inspector, (because he has attended plumbing workshops and inspected homes with obvious damage from flexible pipes), brings this to the attention of the buyer and buyer's agent.  Rightly so.  He further regals the buyer about the many failures in a nearby city. 

What he does not say is that the failures were due to a combinations of factors; first generation polybutelene, the plumbing also being used as part of hydro-heating system and that most failures in the early polybutelene were on the hot water supply.  That accounted for the many, many failures in the development he referred to.

The buyer's agent, trying to protect her client's best interest, is concerned about the plumbing and wonders why we did not disclose the fact that the house had flexible plumbing.

The seller (me) did not believe this was anything to disclose.  When I had my home inspection, the same plumbing was identified as 2nd generation polybutelene, not the piping that had caused so many problems. Not totally convinced, I had plumbers confirm that it is still the piping they use in homes today, especially homes on well water.  Having lived with copper plumbing in a home with well water and dealing with the green stains on fixtures AND green hair, I was happy to have non-corrosive plumbing and less lead in the system.  If anything, I felt the flexible piping was a plus.

Not sure how this will play out and if it will be a deal breaker.  Will post our progress or lack thereof.

In the meantime, still not packing.

Due Diligence

North Carolina Offers to Purchase and Contract are now more like commercial real estate contracts in that the buyer pays (a negotiated amount) to have a due diligence period ( a negotiated time) to conduct inspections and/or to consider if they want to move forward.

This is great for the buyer.  While inspections are done, the buyer can really consider at more of a leisurely pace if the property really suits their needs. 

It is good for the seller, too.  After the due diligence period.  Until then, their home is essentially off the market and if the buyers walk they have to start all over again.

To be fair, the buyer has some risk, too. Once they commit, there is no asking for additional concessions as was possible in previous Offer to Purchase and Contract documents.  Too, if they have too long of a due diligence period, the seller (depending on the market and the property) may get additional backup offers making the ability to negotiate for repairs less strong.  Indeed, the backup offer may be better than the buyers own offer.

That said, there is much more uncertainty for the seller.  Knowing whether to start packing, make arrangements for moving and for new housing is difficult without a commitment.  Further complicating this scenario is when the closing date is close to the due diligence date, making this especially challenging.

For sellers with children, elderly parents, or animals, how to proceed during the due diligence period can keep you up at night.  Take heart and take the long view. It is a short period of time in a lifetime.  BREATHE and get ready to pack!

Why the Property Went to Contract So Fast

In my last post, I said I would reveal why my house sold so quickly.

Why did my property go to contract so fast?  And why did the last property I owned sell in only two weeks?  Both selling quickly in 'bad' markets.

They were both unique in that they sold a lifestyle, not a house.

The property I sold 11 years ago had a guest cottage.  Unusual at the time, it was at the front end of parents living with children and grown children coming back to live with parents.

My current home sold to a couple looking to have rural/urban experience.  Not an unusual desire these days, but a challenge to find.  This  property has the ability to raise animals, comes with a large pond and is just minutes to a Money Magazine Top 10 town to live in location.

Selling a lifestyle home limits your market, but it also limits your competition. 

Consider some of the lifestyle properties available; historic homes, Modernist homes, homes with show gardens, homes with second kitchens, income property homes, farm homes, loft homes, just to name a few.  These properties are not for everyone, however, there are not several subdivisions of any of these properties.  They are rare. Indeed, a buyer may have to wait months or years to find a suitable property.

My advice when buying or remodeling?  Choose something unique, but that will have great appeal to a niche market.  You will always find your buyer when you are ready to sell!

Selling Your House, Yikes! I'm the Client!

Every Realtor should sell her/his house at least every 10 years.  Reminds you how difficult it is for your clients to follow your advice!

Once the decision was made to sell, we de-cluttered, depersonalized (somewhat), cleaned, we repaired (by we, I mean my handy husband) and worked on our curb appeal. 

When you have almost 12 acres, working on curb appeal in August is a herculean feat.  This year we were blessed with rain and slightly cooler weather, it could have been worse.

So, tired and apprehensive, we had our first open house.  Wow!  Everyone who came stayed for hours.  The hard work paid off.  We had two second showings that week and got an offer that went to contract.  A week later we got a backup offer.

My advice to sellers is what you hear time and again: Do the work your agent requests, or at least as much as you can.  It pays off in either a quick sale or the most money for your property, simetimes both.

In my next post, I will reveal why, I believe, it went to contract so quickly.