Loggerhead Realty - Jupiter Real Estate, Including Palm Beach County and Martin County

Open House Round-up, Week of 05/19/2012

Deidre Woollard — Sat, 19 May 2012 13:36:31 +0000

We start off this week’s open house round-up in Voorhees, New Jersey where Realtor Bob Kelly is hosting an open house on May 20 from 1 p.m. to 3 p.m.This home in an active 55+ community has three bedrooms, a two-story great room, gourmet kitchen, and a master suite with a private bath. Upstairs there are two more bedrooms as well as a loft area and separate area for reading or exercising that opens to a second floor balcony. This home is listed for $499,900.

Realtor Jenn Cole is holding an open house at this four-bedroom home in Cary, North Carolina on May 20 from 2 p.m. to 4 p.m. The traditional home on a corner lot has a kitchen with granite countertops, dining room with built-ins, and a family room with a wood-burning fireplace. it is listed for $284,900.

Realtor Jim Basquette is hosting an open house at this brick four-bedroom in Green Twp, Ohio on May 20 from 12 p.m. to 2 p.m. It has a two-car attached garage plus a three-car detached garage. There are 2391 square feet on the first and second floor plus a huge finished lower level with a large sitting/conversation area, a TV area and wet bar and a game/pool area. It is listed for $300,000.

Realtor Kerry Thornhill is holding an open house at this remodeled mid-century contemporary in Dallas, Texas on May 20 from 3 p.m. to 5 p.m. The home has vaulted ceilings, a stone fireplace, hardwood floors and more. A large master bedroom offers access to rear patio and the home has a waterfall jetted tub, separate rain shower and wood deck. It is listed for $505,000.

Realtor Dee Dee Riley has the listing for this four-bedroom home in El Dorado Hills, California which is having an open house on May 19 from 2 p.m. to 5 p.m The backyard welcomes you with a built-in pool/spa, a fire pit, and horseshoe pit, a big grass area for your volleyball or badminton games plus plenty of porch/deck space to just sit and enjoy it all. Inside there are formal living and dining rooms, a first floor bedroom or office, large family room and kitchen that both look out to the lush back yard, and a fabulous home theater with its own 1/2 bath. It is listed for $895,000.

Realtor Rolando Trentini is hosting an open house at this listing in Newburgh, Indiana on May 20 from 1 p.m. to 3 p.m. The Cape-Cod-style home has a country porch and fenced backyard. The master bedroom includes a master bath with whirlpool tub. It is listed at $194,000.

Realtor Sylvia Jonathan has the listing for this two-bedroom home recently back on the market in Irvine, California. An open house will be held on May 20 from 1 p.m. to 4 p.m. The home includes a gourmet kitchen with a view onto the covered patio. This home is listed at $525,000.

Realtor Karen Briscoe is hosting an open house on May 20 from 1 p.m. to 4 p.m. at this luxury estate in Great Falls, Virginia. The home is on 3.36 acres with professionally landscaped grounds, an outdoor terrace, and a sports court. It is listed for $3.19 million.

This mid-century home in Montclair Township, New Jersey is open on May 20 from 2 p.m. to 4 p.m. Roberta Baldwin has the listing for the home which has incredible city views and a backyard adjacent to a 150-acre nature preserve. It is listed for $1.195 million.

Realtor Catherine Richardson is hosting an open house at this townhome in Stamford, Connecticut on May 20 from 2 p.m. to 4 p.m. The home has designer finishes and a modern kitchen that opens to a great room with a gas fireplace and a picture window. The second floor has a master suite and a master bathroom finished with the latest stonework, double sinks and glass-enclosed shower stall, as well as two other bedrooms. This home is listed for $925,000.

Open House Round-up, Week of 05/19/2012

Deidre Woollard — Sat, 19 May 2012 13:36:31 +0000

Selling A Home With a Price in Mind

Ask a Realtor — Fri, 18 May 2012 23:50:11 +0000

By Bob Kelly, Guest Writer

So many of today’s sellers are tech and internet savvy. Perusing the various real estate sights they attempt to glean the knowledge of what they believe their home to be worth. A plan is then formulated, numbers crunched and voila a magic price is mentally assigned to their home. Along comes a Realtor armed with a CMA (Comparative Market Analysis) and delivers the news that the market value of the home is very different from the clients’ expectations.

“But we need $xxx to make our goal work.” says the prospective seller. When a Realtor tries to explain and justify the figure that was given, you can feel the client begin to shut down. Unfortunately it is a phenomenon that is absolutely palpable and happening far too often. I therefore decided this topic needed a dose of

Uncle Bob’s Tell It Like It Is

It may not taste good, but it will help you in the long run.

What you personally need to gain from the sale of your home has no bearing on what the list price should be. The value of the home is set in history; what has sold in the past few months. Current homes on the market may be sitting there for a long time because they are priced too high. They are not the ones to base your list price, because obviously it isn’t working.

If you persist in trying to list your home at a value too high, you could very likely run into a problem at appraisal time. If your home sale price is too high, the bank will not lend the buyer the amount of money they need to purchase the house. This leaves a deficit that would need to be closed either by you selling at a lower price, or the buyer coming up with more money (which is the less likely scenario).

The only way to successfully sell an overpriced home is to pray for a cash buyer. A cash buyer won’t need an appraisal because there is no bank involvement. The caveat here is that the cash buyer has to ignore the comparables in order to arrive at the offer you want. Now we’re talking needle in a haystack.

So what is the answer you say? Start with a CMA from a reputable realtor who will give you the truth about the value of your home. Not just someone who will tell you what they think you want to hear to just to obtain the listing. Then do your number crunching and planning. If the realistic number makes good sense with your goal then go for it. If it doesn’t seem like it will work then you need to go back to the drawing board, or should I say planning board.

Check out my blog post “Selling Your Home? – How To Set A Fair Price”

Click here to read more posts by Bob Kelly.

Is It Unethical For A Realtor To Charge Commission On Closing Costs When The Seller Agrees To Pay Closing Costs For The Buyer?

Ask a Realtor — Fri, 18 May 2012 23:48:35 +0000

Q: I am confused as to why a Realtor is entitled to profit on a payout or loss in the sale of a home. I understand they are entitled to commission on the sale price of home, but why on a payout amount? The actual sale price is the full amount of sale minus the closing costs. My home is an estate and for inheritance we will deduct the cost of the closing as an expense, that is legal. So how is it legal and ethical for the agent to charge commission on that price.
–Gem3850, Munhall, PA

A: The sales commission is typically based on the actual sales price. You had a choice when the offer was presented as to whether or not you would pay for various inspections, escrow/title costs, repairs, and buyer closing cost credits. Buyer closing cost credits help the buyer recoup lender fees, buyer’s portion of escrow/title costs, inspections and home warranty paid by the buyer, appraisal and credit verification fees, etc.

Your listing agreement with the Realtor will identify if the commission is based on the actual sales price or if it is based on a net sales price (rare but possible). Realtors do not earn commissions based on the net amount received by the Seller, as that would vary greatly, depending upon how much the Seller owed on the home. The commission paid to the Realtor is one of the selling expenses, just as are the escrow/title fees, inspections, buyer closing cost credits, etc.
Debra Kroon is a Realtor® with Yosemite West Real Estate in Yosemite, CA.

A: I am a California agent, not Pennsylvania, however, I am willing to share my experience and knowledge as a Realtor.

When you sell your home, you may negotiate any commission you like. It’s up to you and your agent to come to agreement about what commission will be paid to your Realtor.

Typically, Realtors make 6% commission based on the TOTAL SALE PRICE.

So, for example, if you agree to pay $5000 of the buyer’s closing costs and sell your house to them for $300,000, your agent would make commission on the full $300,000. Your “expenses” (like credits to the buyer) come out of your pocket only and are usually write offs for your taxes that year.

Conversely, if you agree to pay for $5000 of the buyer’s closing costs and increase the sale price to $305,000, then your Realtor makes commission on the full $305,000.

In summary, you can include verbiage that states any buyer credits given by seller will reduce the base amount calculated for agent commissions, or something like that. Just so you know, for one client in the past, I even donated $1000 of MY commission and got the other agent to do the same thing to put toward the buyer’s closing costs. You can negotiate almost any scenario.

I hope this is helpful for future transactions.
Denise Shur is a Realtor® with 1:1 Realty in San Jose, CA.

A: It is legal and ethical if that is what it said in the listing agreement you signed. I’ve never even seen one that based the commission on the net to the seller. Sometimes, Realtors will waive the commission on a portion of the sales price that is given back to the buyer as a closing cost concession. That only makes sense for the listing agent though. If the buyer’s agent was able to negotiate closing cost concessions for the buyer then it makes sense that THEY get paid based on the full sales price. An argument can even be made that the buyer’s agent should get MORE – not less – if the sales price is lowered – since that is what the buyer hired them for.
Paul Howard is a Realtor® in Cherry Hill, NJ.

A: Commission is charged on the “Sales Price” of the property, not the net to the seller.
Joan Flood is a Realtor® with Dagmer Chew HomeStead Real Estate Co in Cape May, NJ.

A: Usually the listing agreement defines the commission based on the full purchase price not the net. If you want commissions based differently that needs to be agreed at the time of the listing agreement. I wouldn’t think it is an ethics issue because the agreement spells out the arrangement between the seller and the broker.

Since it is never known what the final agreement between buyer and seller will be or what concessions a seller is willing to take it would be hard to define what price other than purchase price to base commission on. I could see a situation created for disagreement, and uncertainty.

Yes usually your closing cost including commissions paid are considered an expense of the sale. I cannot address legal questions you would need to consult an attorney.

Whether there is a profit or loss to seller, the agents still performed their duties and most likely put in many hours of work to get the property sold.
Teri Andrews Murch is a Realtor® with Lyon Real Estate in Auburn, CA.

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We Put Earnest Money Down On A Home, Could Someone Make Another Offer?

Ask a Realtor — Fri, 18 May 2012 23:15:20 +0000

Q: We put earnest money down on a home. They said they accepted but we would have to pay seller’s concessions, which was their counter offer. We agreed but just found out the Realtor has six people going through the house. Can we lose the house if they have already made us a counter offer?
–Nik, Wyoming, MI

A: If you have an agreed-upon, executed written purchase contract with the seller, then it is a legally binding document outlining the terms/conditions under which the sale will proceed. Don’t be discouraged simply because other potential buyers have viewed the home. After all, the listing agent must continue to market the home until it is deemed that contingencies have been removed and transaction will close as planned. Best of luck.
Alex Cortez is a Realtor® with Wailea Village Properties LLC dba/Island Sotheby’s in Kihei, HI.

A: The contract is binding once the counter offer has been agreed to, signed and delivered to both parties. When you say you agreed to the counter offer, was that done in writing?

The listing agent may be looking for a back-up offer in case you elect to cancel the contract during your 10 day inspection period. You should consult with your REALTOR.
Teresa Smith is a Realtor® with Homesmart- Trudy Moore in Scottsdale, AZ.

A: If you have already signed your counter offer then you are under contract and if there is a contingency about you selling a home then they may have a contingency that allows them to keep marketing the property, also has it been put as pending on the MLS so other agents know there has been a accepted offer.
Loretta Serna is a Realtor® with Berney Realty, LTD in Fallon, NV.

A: Until an offer is signed by all parties and delivered back to all parties, it is not technically under agreement.

Hope this helps.

Joan
Joan Flood is a Realtor® with Dagmer Chew HomeStead Real Estate Co in Cape May, NJ.

A: Wow. I guess I see one question in there. I ‘think’ the question is “Can the seller make a counter which you accept but then reject it and accept an offer from someone else?”

(GIve me a break if that isn’t it – your ‘question’ is one long sentence consisting of partial disconnected phrases.)

The answer to the question as I see it is: It depends on whether or not acceptance by you of their counter offer resulted in a binding contract and if it did whether or not there are contingencies that may kill the deal.

By the way – the part: “…but we would have to pay sellers concessions,…” doesn’t make any sense to me.

Normally I wouldn’t answer a question regarding an issue in a state I’m not licensed in but I couldn’t resist this one. Generally, the quality of responses will be in direct proportion to clarity of the question.
Paul Howard is a Realtor® in Cherry Hill, NJ.

A: If your counter offer is not signed by the seller, then, yes, you could loose the house. If you haven’t already done so, you should get the counter offer in writing and signed by the seller as soon as possible. In most states, agreements to buy and sell real estate must be written and signed by all parties. Until you have a signed agreement, the seller has the opportunity to receive and accept other offers. Once it is signed, the seller cannot arbitrarily accept someone else’s offer over yours. The seller can, however, continue to show the house and accept backup offers that will only be valid if your contract is terminated.
Phil Lunnon is a Realtor® with Lunnon Realty in Lakewood, CO.

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A Home We Are Looking At Is Listed Below Tax Value, How Will That Benefit Us?

Ask a Realtor — Fri, 18 May 2012 22:05:21 +0000

Q: Hi, my fiance and I are preparing to buy our first home. One of the homes we are looking at is listed almost $30,000 below tax value. How are we, the buyers, going to benefit from this? Especially when it comes to down payments and loans.
–Donna, Greensboro, NC

A: What the price of the home is in comparison to the tax value doesn’t have anything to do with down payment and your loan. Tax people assess by the year and at the beginning of the year normally -not of this year but the year prior. So, tax values are rarely anywhere close to what the sales price will be – they may be high in one part of a year or low in another. An important issue for you will be how does it compare to other homes in the area. An appraiser will give you a value – then you will know whether you have built in equity or not. That would be your benefit of buying a home less than what it is worth.
Lana Lavenbarg is a Realtor® with RE/MAX Ideal Brokers, Inc.in Grants Pass, OR.

A: ‘Tax value’ is not necessarily reflective of current fair market value – it could easily be over or under. If you are financing your purchase, the lender will order an appraisal in order to best gauge the property’s current value and that is the mark under which the mortgage will be underwritten (irrespective of ‘Tax Value’).
Alex Cortez is a Realtor® with Wailea Village Properties LLC dba/Island Sotheby’s in Kihei, HI.

A: Good morning, Greensboro, Since all municipalities handle their tax assessments differently, you should ask the tax assessor specifically whether this will cause a reassessment to your taxes. Your loan and payments will both consider your taxes in qualifying, so your benefit would be in the overall monthly payments you have to make.
Ginny Ollis is a Realtor® with Coldwell Banker Residential Brokerage – San Diego Mission Hills in San Diego, CA.

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A Home We Are Looking At Is Listed Below Tax Value, How Will That Benefit Us?

Ask a Realtor — Fri, 18 May 2012 22:05:21 +0000

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What Recourse Does The Seller Have When The Buyer Keeps Putting Off The Closing?

Ask a Realtor — Fri, 18 May 2012 21:31:26 +0000

Q: We signed contract with buyers which ended May 16 at 5 p.m….buyers are negotiating better deal with bank and keep putting off closing. Now contract is up and no mention of extension and we have already moved out and has cost us a lot – we have now defaulted on our mortgage payment for the first time in 18 yrs because it was supposed to be closed before payment was due. Realtor is a dual Realtor representing both sides (thinking that was my mistake). I cannot get a final closing date from them – they keep saying next week and we cannot afford two places. I am really questioning the Realtor as he is very vague with his answers.
–Donna, Rockland, ME

A: Please refer to the your Purchase Contract in regards to terms under which either party could extend the closing date. If time is of the essence and there is no automatic right to extend, then any extension would have to be agreed to by both parties. Consult a real estate attorney for information on your possible courses of action. Best of luck.
Alex Cortez is a Realtor® with Wailea Village Properties LLC dba/Island Sotheby’s in Kihei, HI.

A: Assuming the set of circumstances that you describe, you may be too accommodating with the buyers. It may be a buyer’s market in your area, but that is no reason for a buyer to ignore their obligations to you. You should speak with legal counsel first, but you might consider terminating the contract and keeping the earnest money. Just the idea of losing the house and the earnest money should get them to the closing table. If that seems too drastic, you can extend the contract for a short time, as long as the buyers pay for that privilege. It is not unusual for sellers to require buyers to pay a per diem penalty for not closing on time to compensate them for the costs of holding the property for an extra period of time.
Phil Lunnon is a Realtor® with Lunnon Realty in Lakewood, CO.

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Do I Have To Pay Full Commission If I Find The Buyer?

Ask a Realtor — Fri, 18 May 2012 19:59:13 +0000

Q: Lets say I find the buyer. Commission is split 3% seller 3% buyer. I agree to pay the 3% for the seller, but does the buyer even have to have an agent? Do I have to pay my Realtor the other 3%?
–Kathy, Las Vegas, NV

A: How your broker is compensated is a matter of negotiation between you and the broker. In most instances, a listing broker charges the seller a commission, which he then shares with the broker who not only brings in the buyer, but does all of the work on the buyer’s side of the transaction which is necessary to get the sale to close. If the buyer is not working with a broker, it means that the listing broker probably will be doubling his effort (not to mention his liability) to get the sale closed. In that case, the listing broker will be earning the portion of the commission he would have paid to the buyer’s broker. Just finding the buyer, while it is an important piece of the puzzle, is a small part of the job. Someone still needs to make sure the buyer is qualified to purchase, prepare the contract, make sure the buyer is providing information to their lender, coordinate the inspection, coordinate title review, coordinate receipt and review of HOA documents, make sure the buyer is obtaining homeowner insurance, review settlement figures with the buyer, and coordinate closing, just to mention some of the main functions that a buyer’s broker performs. You must ask yourself whether you have the time, resources and competence to complete those tasks on your own. If not, you will be dollars ahead in the long run by paying the listing broker the extra 3% to perform that function.
Phil Lunnon is a Realtor® with Lunnon Realty in Lakewood, CO.

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What Does It Mean If A Contract Date And Sale Date Are The Same?

Ask a Realtor — Fri, 18 May 2012 19:35:14 +0000

Q: What does it mean when a SOLD listing shows the same date for the contract and the Closing. It said CONTRACT DATE: FEBRUARY 15, 2012 and CLOSE DATE: FEBRUARY 15, 2012. Don’t you need to do a title search.?I thought it was a minimum of 30 days to close? Thank you very much for your attention to this question.
–May, Washington, D.C.

A: I would say that was most likely a mistake on the part of the agent who entered those dates. It is generally 45+ days to close.
Joan Flood is a Realtor® with Dagmer Chew HomeStead Real Estate Co in Cape May, NJ.

A: I have to answer from my knowledge of Georgia and South Carolina contracts because that is where my area of expertise lies. The contract date is the date the offer is made by the buyer. The binding agreement date or contract acceptance date is the date when the last counter-offer is accepted and delivered to the receiving party. The time period between the contract date and the binding agreement date can be hours or days. The closing date is the date when buyer and seller meet at the title company or closing attorney’s office and sign all the paperwork for the seller to deliver title to buyer (or bank) and buyer to take possession of the property. The time period between the acceptance date and the closing date is usually 1 to 2 months. If it is a cash sale, all that needs to be done is the title search. This can be done in 1 or 2 weeks,
Vilma Colon-Oliver is a Realtor® with Meybohm Realtors – Augusta in Evans, GA.

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