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21 questions on buying and selling
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Rowena keeps it light and fun while she shares various questions that come in from potential buyers moving to the mountains, and folks thinking of selling their home.

All kinds of things can affect a real estate search all the way through to the purchase of the home or property, and sometimes even after.

See if you can find yourself in any of these. Funny thing is, we never think these will happen to us, and yet….. Even though I am in the business, I once opened a store card when I got googly eyed on a save 40% on what I was purchasing when I was about to close on a home. That mistake cost me probably $10k over the life of the mortgage. Here’s a few of the things we hear on a weekly basis. Let’s bust these myths.

  1. A life-changing event has popped up.

There’s really not much to do when something major happens. Unfortunately, life throws most of us a doozie at some point. Take a moment to look at what your strategy was before this asteroid hit, and whether it still makes sense. Chat with Ro, she is known for her ability to advise you like your best friend would. She’ll quickly give you the 6 bullet points you need to make an advised decision, in your best interests. Allstar agents are chosen for their drive to do the right thing, every time.

  1. All homes are listed high so that we go in and make a low-ball offer

That’s old-fashioned real estate thinking. At AllstarPowerhouse, we have many Certified Pre-owned listings, where an appraisal has been conducted, and an inspection performed. The home offers a home warranty. Therefore, it is priced correctly and most of our CPO homes bring in much stronger offers, and buyers are more likely to put them at the top of the list. Everyone goes in eyes wide open. In fact, if you go in with your low-ball, you may find the seller is insulted and refuses to respond (see 17)  See more at www.CPOexperts.com

  1. My brother told me that I should not list at the price you are suggesting.

Your family may know a little bit about real estate. Have you ever googled an ailment you have? It’s easy to feel, when we google something these days, that we are experts in the field. A great agent is an expert. Realtors are required to abide by strong ethics (not all agents are Realtors) and if you have chosen well, your agent will be pricing your home correctly, or even better giving you a range that clearly identifies where your home should be priced. At AllstarPowerhouse we provide you with a ‘selling zone’ that puts you in the driver’s seat.

  1. I don’t care that they want the ottoman, they can walk from the sale if they want.

This is from a true story. It was a home in the 700,000 range. It has happened at least two dozen times on the Allstar team alone. Take out any items that you cannot bear to part with. When you list the home, make a list of everything else that you will let go. Put the brand on there, the retail price, then 25% of that price or lower that you will set it at.

  1. That appraiser doesn’t know what he is talking about.

Appraisers have a degree in NC. They know what they are talking about. However, occasionally, the appraisal can be challenged, which we have done before. If you have a pre-listing appraisal that you ‘don’t like’ we slip it in a draw and move forward. If it is on the buyer side we will help you challenge it. Since 2007, not one of our CPO or certified pre-owned homes has not appraised during the transaction to date of this article, something that is common place in a ‘hot’ market, when homes do not appraise for over-inflated prices.

  1. What do you mean, my prequalification letter is not a preapproval?

In the time during and post pandemic, many home sellers are requiring a pre approval letter - even to see a home. So what's the difference? It is critical in any market to get pre approved, and to start the process at least 90 days out from looking at homes. Home sellers know it is very easy to get a pre qualification, and to be taken seriously (especially when they want to limit the number of people in their home) many are requiring that level of  certification to even view a home.

Paying by CASH?  Proof of Funds letter steps in place of the pre approval - your CPA or bank can provide this valuable instrument to win you that home!

  1. Regardless of pandemics, some sellers are immune compromised, or simply only want serious people making an appointment to see their home.
  2. It may be a pain for most of us to dig out all those docs - however, if you are serious about winning that great deal, you'll need to do it anyway. Get it out of the way now and enjoy your search after passing that first hurdle. A great lender can also usually help you increase your credit score by a few (or a lot) of points, that may improve your score by the time you actually get your loan.

A Prequalification letter provides an estimate of what a buyer can borrow.

A Preapproval states what a buyer can actually borrow. it states a specific loan amount, and it is provided after a number of documents that a bank or loan provider requests.

A preapproval is like your 'certificate' that you are serious about looking at homes and ready to purchase if you fall in love with the next one you see. It also allows you to compete in home price ranges or markets that are competitive.

Please send your pre approval to your Allstar Agent ahead of time - it's the first domino! Need help? Ask us about our preferred lenders.

Contact us here

  1. But the inspection report has 33 items on it.
    Negotiations often occur at least three times before the buyers are handed the keys to the property:
  1. During the agreement of the original contract, when buyers have found the home of their dreams - and the sellers are excited to get a contract (an important note)!
  2. Inspections. *Note - In the 2300+ transactions the AllStarCertified team (at the Asheville NC headquarters) has handled to date, we haven’t once seen an inspection report with less than ten items on it that need repair - unless they have followed the CPO Process). Most often, the inspection report will contain 30+ items. Many of them are nit picky, however, if the CPO process has been followed, a handful or no items will arise. Everyone goes in eyes wide open. See www.CPOexperts for more information. As a buyer, go in informed that there will likely be 30+ items, as a seller, have the inspection up front. Disclose items if you don’t want to - or don’t have the funds to correct, or correct them with a handy person for the little things and save some money over correcting them under pressure during the transaction.
  3. Appraisals. Should the property not appraise, the buyers and sellers are thrust back into negotiations.
  1. I don’t care that the steps are loose, they’ve not bothered us in 30 years.

See 7

  1. I forgot to lock my interest rate on the mortgage and now I can’t afford it.

We’ll assist in finding other loans - FAST!

  1. What do you mean, there are attorney costs, sales tax and other fees on selling my home?

Alongside commission for the real estate agents involved, there are the loan payoff costs (call your lender now), transfer taxes, recording fees, and attorney fees, or title fees if you are in a title state.

  1. I’m perfectly happy selling it by myself. It’s only been 6 weeks and all those 12 buyers were really interested.

Here we are discussing a FSBO - pronounced FizzBo - which some people have great succes with. Generally speaking, most FSBO’s pay the buyer’s agent 3%, saving somewhere around 3% on the commission paid. AllstarPowerhouse helps you promote your FSBO at www.RealEstateNewsRadio.com Some things to watch out for on FSBOS

Make sure that you have marketing expertise, or hire someone to produce listing storyboards, professional photos, walking-tour videos, blasts to realtors, general advertising and someone to get it on the MLS. You want your home sold first time; don’t list it if you are ‘dipping your toe’ in the water. Buyers out there see the home for sale, and it can be off putting when it has been listed for a while or has gone under contract then fallen out.

According to the National Association of Realtors (NAR), the median price of For Sale By Owner homes was $210,000 in 2014. When the FSBO seller knew the buyer, which happens in about half of FSBO sales, the median home price was $151,900. The median price of homes sold by agents? According to NAR, it’s $249,000. Statistically, it takes longer to sell your home FSBO, and you may not have the skills to negotiate holding on to the home after the closing. This is something that we do frequently for our sellers at AllstarPowerhouse.

When you try it out FSBO:

Make sure you research your market, and learn about disclosure rules. Get your marketing in place, and stage your home to sell. Make sure you have a system in place with your family to set up showings with the logistics involved. When you give tours, do not discuss what the house used to look like, and definitely don’t share pictures. Host a safe open house. Have a bullet sheet to answer questions from Realtors. Go ahead and interview inspectors and attorneys to get ready for the sale, and we suggest that you don’t use the same attorney as the buyer. If anything comes up that is adversarial, that attorney is representing the buyer. They can’t represent both of you. Pick up the phone when buyers call, and make sure you are not violating any Federal or local housing laws. Make sure your potential buyers are preapproved, not just pre-qualified, unless you want to spend your days with folks who are not prepared to purchase your property.  Sharpen up your negotiation skills, and don’t use what you think has always been done - that’s old-fashioned real estate!

  1. I forgot to tell the tax office when I added 400sf in the bonus room and basement so now it’s showing up online as much smaller.

This is such a common one - talk to your agent who will get this right, so that buyers are not put off. It’s likely over a third of properties have added square footage that is not shown, which means that those auto valuations are incorrect on those same properties. Don’t go by what those auto valuations say!  To check whether yours is correct, anywhere in the USA, enter your address here:

  1. I have 4 bedrooms and I don’t care that the septic permit only shows 2. The MLS must allow me to put 4 bedrooms on there, right?
    There’s a whole show on that one. The short answer is NO.
  2. Termites, shmermites, I got rid of them and they only did a little damage.

This will scare many away. Get all of the receipts and a new report in place, asap.

  1. These folks can see through my clutter.
    If you are unable to clear up because of a disability, and it is a HOT sellers’ market (this will only stay for so long -  see the economic cycle video here.) get it out there now with a great agent who can help you!
  2. I forgot to check that the light bulbs work.

Turn on all of your lights and switch them out for some brighter bulbs if needed.

  1. That’s a low offer, I am not going to counter it, I’m insulted.

This is a business transaction. Counter. In February 2021, we countered an offer that was 75k lower than asking, and then it was increased to almost full price.  We have many of these stories, don’t take it personally.

  1. No one told me I couldn’t build the addition over the septic tank.

Yes, this is a true story, told or discovered a number of times. There’s a whole show on that one

  1. This radon stuff is nonsense.

EPA states “ Radon is a naturally-occurring radioactive gas that can cause lung cancer. Radon gas is inert, colorless and odorless. Radon is naturally in the atmosphere in trace amounts. Outdoors, radon disperses rapidly and, generally, is not a health issue. Most radon exposure occurs inside homes, schools and workplaces. Radon gas becomes trapped indoors after it enters buildings through cracks and other holes in the foundation. Indoor radon can be controlled and managed with proven, cost-effective techniques.

Breathing radon over time increases your risk of lung cancer. Radon is the second leading cause of lung cancer in the United States. Nationally, the EPA estimates that about 21,000 people die each year from radon-related lung cancer. Only smoking causes more lung cancer deaths.”

Radon is common throughout the United States. Always have the test. If you are selling, it’s wise to have a professional test so that it does not come up once you are under contract. Keep the test results for your potential buyers. A radon mitigation system can be put in - if necessary - that costs around $1200. Austin Boleman, who specializes in radon mitigation as well as home inspections, says that around half of the homes he inspects have a radon issue - which is when the test measures over 4 pCi/L.

  1. The buyers really appreciate it when I am there to tell them all the work we’ve done on the house and show them photos.
  1. Best never to be at the showing. Honestly, it can leave a bad impression for the buyers that the home used to look like THAT! They are also in ‘your space’ and with an agent, they get to be honest without fear of insulting you. You also may say something that gets you in hot water later, experienced agents know how to avoid these situations and provide a buffer. They also save you answering the same questions over and over!
  1.  I am going to make a low-ball offer to get started

This one all depends on whether it is a sellers or buyers market. In Western NC in the first quarter of 2021, we have a 1 month supply of homes; a balanced market is 6 months. Homes are listed and sold the next day.

If you like to listen to live shows to call in with questions - or win the trivia - get the link to listen anywhere at www.RealEstateNewsRadio.com - broadcast live at 10:05am EST every Saturday since 2011.

Follow our podcast for bonus short pods throughout the week, with short 5-10 minute pods that will explain the things that people ask about most frequently.

More info? Search at www.MountainHomeHunt.com or hit CONTACT US on that site.

Like to call instead? 828.333.4483

For an Allstar Experience, See all of our customer programs www.AllstarCertifiedPrograms.com

Or you can listen to short pods on some of the programs:

See our listings

See our Buyers  (do you have a home that meets their needs?) at www.AllstarBuyers.com