First pitfall:

Sellers are generally at least six months behind on market trends.  They saw their neighbors selling their homes for more money than they could have ever imagined and still think they can get in on some of that same profit.  Problem is, the buyer has figured out the market trends way before the seller and if they see a FISBO they expect to be able to really save some money on the purchase.  Additionally, any seller who thinks they’re immune to the roller coaster of a market today has his head in the sand.  Strike One.

Second pitfall:

Not having disclosures in writing for a prospective buyer to read through or inspections completed in advance of listing the property.  The seller thinks that they’re fine by telling the buyer everything that they want to tell them, but not necessarily everything that has happened to the property during their ownership. This is with-holding of material fact and this could be a law suit.  If the seller doesn’t want to pay for those inspections before listing their home, they’ve opened themselves up for a big renegotiation on the agreed upon price.  Strike Two.

Third pitfall:

FISBO’s can’t vacate the property while showing it. So, they’re there yakkedy yakking all the while people are wandering through the property.  I have yet to meet a seller who knows when not to talk when prospective buyers are around.  The seller, who is positive that they have the very best house on the block, don’t hesitate to tell that to everyone.  Truthfully, most of them can’t see the forest for the trees.  The buyer knows this, too.  Strike Three.

Three Strikes generally means you’re out, but that’s in baseball.  In real estate it means you could lose money. In California we require disclosures for everything.  And I do mean everything.  Did someone die on the property within the last 3 years?  Was there a Meth lab on the property?  What about a CLUE report?  Sewer Lateral report?  Airport noise?  Earthquake fault zone?  Flood zone?  If the sellers’ don’t know what disclosures are required today they can’t protect themselves from future litigation. The law says that the clock starts for a law suit once the discovery of the non-disclosed information is found out.  That could be five years from now, or five months.  The seller will lose in court and the excuse that they didn’t know it was required won’t be accepted.

So you be the judge.  FISBO or with an agent.  The agent could be full service or a deep discounter. At least an agent/brokerage had knowledge and forms for the seller to use.  The law suit that could follow is up to you Mr & Mrs Seller if you don’t disclose everything you know about the property.  Besides, your neighbors will be sure to tell the new owners everything you forgot to mention, so why hide it?  Finally, if you decide to sell on your own but allow the buyer to use a Realtor, don’t expect the Realtor to help you.  If you do, you have just hired them and will own them a commission on both sides of the deal.

The homes in the Burlingame area are generally older and one of the real estate forms we are required to have buyers and sellers sign has to do with the likely use of asbestos in these homes.  This form is part of the Disclosure Package.   This natural product was considered to be somewhat safe until about 40 or so years ago. It was used everywhere in the building industry, from wrapping furnace vents to floor tiles. Not today. The evidence of the health risks involved with asbestos existed almost a century ago, but it really wasn’t until 1990 when the California Air Resources Board began regulating the amount of asbestos in building applications. Asbestos had been highly regarded throughout most of the 20th century, gaining widespread use due to its fire, heat and weather resistant qualities.

Many types of asbestos occur naturally in California because of its location and geologic history. Asbestos deposits are found naturally in 44 of California’s 58 counties. Homes and buildings built before 1980 could likely still contain asbestos-materials. Potential home buyers and people re-modeling their homes today are shown many healthy options replacing the need for asbestos entirely.

The people who were exposed to asbestos in many industries years ago are now suffering from it their in later life. Asbestos exposure can cause a severe lung ailment known as mesothelioma. This aggressive form of asbestos cancer accounts for nearly three percent of all cancer diagnoses in the country. Mesothelioma treatment is unfortunately almost always unsuccessful and physician prognosis is poor.

The California Department of Industrial Relations administers a number of programs which are aimed at preventing asbestos exposure in public facilities, workplaces and homes. The removal of asbestos must be performed by licensed abatement contractors who are specially trained in handling hazardous materials. It is highly recommended that those who believe they live or work in an area where asbestos are found to leave it alone. Contractors come equipped with protective gear in case its fibers become airborne immediately after it is broken up. Once the remove is finished, healthy alternatives should be considered as replacements.  So if you have those popcorn ceilings so many of us have in our homes have it checked before you have it removed.

We’re obligated to nurture and sustain this planet of ours and to try to use as many Green products as we can. Some of these products include the use of recycled building materials like cotton fiber, cellulose and lcynene.
Implementing eco-friendly materials will also result in a decrease in energy costs and help maintain Californiaís beautiful environment. The United States Environmental Program states that that cotton fiber insulation can reduce costs anywhere from 25 to 35 percent annually. Not only do these alternatives save you money, they allow a lifestyle free of health corroding materials.

We want to see that the title on that property is held free and clear by the seller.  We don’t want any surprises such as liens that can prevent the seller from actually selling this property.  We also want to be sure that the seller really owns the property free and clear, that there are no others listed on the deed that will need to give permission to sell.  I can’t tell you how often we find someone listed who is dead and then we need to go through all kinds of hoops to clear title.  This can delay a closing by days if you are lucky, or weeks if you’re not.  One of the most common liens is a Mechanic’s Lien.  My friends at North American Title are allowing me to republish this description of a Mechanic’s Lien for your education.

A mechanic’s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property and is called by various names, most often a construction lien. It is also called a material mans lien or supplier’s lien when referring to those supplying materials, a laborer’s lien when referring to those supplying labor, and a design professional lien when referring to architects or designers who contribute to a work of improvement. Mechanics liens on property in the United States date from the 1700s.

Mechanics Liens exist as a legislative public policy to protect contractors. More specifically, the state legislatures have determined that, due to the economics of the construction business, contractors and subcontractors need a greater remedy for non-payment for their work than merely the right to sue on their contracts.

Under the statutes, the lien is usually created by the performance of labor or the supplying of material that improves the property. Some common examples are:

• Laborers, carpenters, electricians, and plumbers working on the project site
  
• Lumber yards, plumbing supply houses and electrical suppliers
  
• Architects and civil engineers who drew up the construction plans and specifications
  
• Off-site fabricators of specialty items that are ultimately incorporated into the project

The statutes creating mechanic’s liens usually give them a higher priority with respect to other interests in the title than the law gives most real property security interests. Special provisions are made in some states for determining the priority between a mechanic’s lien and the lien of a mortgage that is financing the construction on the land. Some states, like California, provide priority for a construction loan mortgage recorded before the visible commencement of construction where the lender is obligated to disburse the funds.

Mechanic’s liens are enforced exclusively through judicial foreclosure sales. Once all requirements have been met the court can order the property sold and the proceeds of the sale applied to the liens in the order of their priority.

This is why we look at Preliminary Title Reports.  In fact we see several of them before close of escrow.  We look at the one the selling agent has ordered.  We look at the one the title company the buyer selects has ordered.  And, finally we look at one just prior to close of escrow.  We dont’ want to find anything slipping under the cracks and someone filing a lien just prior to close of escrow stopping the sale.

This is one of the biggest reasons you need to have an experienced Realtor on your side.  We know what to look for and how to make sure you find a clear title.  Questions?  You can reach me at 650-696-2820.

Thank you North American Title Company for a great explanation of the Mechanic’s Lien.

Realtor with clients

For some reason people think that real estate agents only represent the
interests of the seller in a transaction.  Sure, that was true years ago but it sure isn’t the case today.  When I represent a buyer in a transaction I am their advocate, their coach, and their representative 100% of the time.  Did you know that it is possible for a buyer to have a contractual relationship between the agent and themselves, should they want one?  Yes, there’s a form just for
that so do ask about it if you think it necessary.

Here’s why it’s important for you to know who is in your
corner when you are buying a home and what a good agent does for you,
as a buyer. Good agents are….

We’re here to make sure you are working with a professional lender, one who will take your interests and needs above making additional compensation from a bank, one who is ethical and who will be there for you in the future.

We’re here to make sure you have really been Pre-Approved for a loan before writing a purchase contract.

We’re here to make sure you understand the contract you are signing and if not, to explain it to you so you do get it. You are signing a legal document that becomes binding once ratified.

We’re here to answer questions about the disclosures that you read, show you what is important and what is not (for example, a pest report mentions a loose toilet as a class II issue, and that’s not a critical thing to worry about), and if necessary, suggest additional inspections that might be needed to fully
know about your future home.

We’re here to negotiate the best price for you with the seller, to present your offer to the seller, and help you get a fair deal.

We’re here to work with the selling agent making sure all documents needed by the lender, title company and you are completed, and signed prior to close of escrow so we can close on
time.

We’re here to sit beside you during your signing at the Title company.

We’re here after you move into your home, to act as a resource for tradespeople in the community.

A good Realtor becomes very close to you before and during a transaction, and hopefully after you’ve settled into your home, they become a friend to you and your family.

Picking a good Realtor is not always easy.  It’s an intimate relationship.  We learn a lot about you and your family and your finances.  This is all very personal stuff.  A Professional Realtor keeps all of that information locked up inside of them, only using it to help you find the perfect home for you and your needs.  A good Realtor is, above all else, ethical.  Ask your friends if they had a good experience with their Realtor as friends
often refer their agents.  We have a great deal of business from referrals of past clients.  Our clients are our friends and advocates.