"It's Too Nice for Us"

Quirks of a Buyer's Market

One of the more surprising things Buyer's agents are hearing in today's market is clients who say, "it's too nice for us" (or at least, I'm hearing it).

Huh?

What I think is happening is actually a couple things.

One, prices of bigger homes, in very nice neighborhoods, have now dropped enough that there really are some steals out there. And Buyers viewing these homes know it.

However, the home represents such a big step up for the Buyer, it would literally swallow all their existing furniture and not even burp.

So, the prospective Buyers have to factor in a small fortune to furnish and re-decorate the home.

That contemplated expense, plus the much higher mortgage payment and property tax bill they'll be assuming, can be a deal-breaker.

"Our kids will trash it"

Another, more practical consideration is what their kids will do to an impeccably maintained, fine home (assuming it is).

I think there's a legitimate debate about whether kids today have worse manners, or, their parents are both working so hard that they have less time to supervise them.

Regardless, my clients who have several, young kids want homes that they can "let their hair down" in.

Homes that are owned by down-sizing empty nesters, full of lots of fragile collectibles and fine art, make them nervous -- really.

As objections go, that's certainly a good one ("the location stinks" is tough).

However, I think it's something for prospective Sellers -- and their stagers -- to consider.

What's All That Noise?

Shlitt! Rip! Crinkle! Shlitt!

What are those sounds?

Millions of unopened monthly brokerage statements, heaped in a pile, finally being sifted and opened.

Just a guess, but with stocks now up more than 40% from the March lows, lots of people now have the courage to tackle all that unopened mail . . .

Title in a Nutshell

What Buyers Need to Know About Title*

With terms like "Torrens," "warranty deed," "ALTA," "registered property abstract," etc., title is no one's idea of scintillating.

However, problems with a home's title -- the document that shows you are the legal owner -- can be every bit as expensive as a defective roof or cracked foundation.

In a nutshell, here are the 4 things home Buyers need to know about title:

One. Exactly what does the Seller own? (Call this "the Brooklyn Bridge" test.)

Lawyers colloquially refer to the various property rights as a "bundle of sticks" (right to use, right to exclude, right to convey, etc.)

Two. How many of those "sticks" are they conveying to you? (You want all of them)

Three. Is anyone else contesting the Owner's claim?

Like, ex-spouses, rival heirs, encroaching neighbors, etc.

Four. Are there any unpaid creditors who are entitled to get paid from the Seller's proceeds?

This last question is especially critical for foreclosures, where unpaid liens, property taxes, city fines, etc. can be piling up, and the Bank that owns the property has zero motivation to discover -- let alone disclose -- their existence.

You'll pay $500 or so to a good title company to carefully address these questions. Then, depending on your home's value, another $1,000 - $2,000 to buy a home owner's policy protecting you from any defects in title.

Good investment.

*From a former attorney not giving legal advice.

Obstruction Permits

"Clear a Path" (He said)

Spend too much time in traffic, and you start to notice odd, little details.

Like, the utility truck idling in front of me actually had something called an "obstruction permit," posted in its rear window.

I've heard of "construction permits," but never "obstruction permits."

Brilliant idea!

Imagine the next time someone tries to deny your (legitimate) insurance claim, blocks you at the gas pump, or holds up the express check-out line:

"Excuse me, Sir/Madame, do you have a permit for that?

No?

Then get with the #%!&@# program!"