Monthly Archives: February 2007

Seller Disclosures, Inspections, Negotiations

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Disclosure is about telling another party the things they need to know to make a decision that a “reasonable person” would make. Disclosure is a a responsibility of the seller inn real estate. They are to disclose all “material facts” that may influence the buyers decision. But…

There are many instances where sellers do not disclose. Either they feel that this is something that will go unnoticed by the buyer, the inspector, and the buyers agent, OR they feel that it will reduce the sale price of the property, OR they simply want to use it as a bargaining chip in the negotiations of price, OR they simply do not know. This last is perhaps the most unlikely as any.

Of course, an inspection may turn up the undisclosed facts. And then there are times when the undisclosed fact is actually disclosed incorrectly or inaccurately. Regardless, if you know it, you should disclose it, as a seller. In fact, we recommend to our selling clients that they get an inspection done on their own, just to show the buyer that they are not failing to disclose any material facts.

We have had an instance where a listing agent, not from our firm, had her husband give her a blank inspection form (he is an inspector) and she filled it in with check marks that all items were working properly, and that nothing was in need of repair. We found that many items in the house were in need of repair. And negotiations reflected that fact.

Don’t rely on seller disclosures, and always have an inspection done on your dime. And then always get a copy of the sellers disclosure, in any event, so that when it comes time, you will have the information you require to get the best deal you can.

Let us help you find what you need, what you want, and what you desire.

Focus Real Estate Group, the best in RI Real Estate Services.

Spring is in the air… time to buy a house?

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Spring is coming, and most real estate agents are telling their sellers that now is the best time to list their property, to get the jump on the busy season… while this is true, there is also near record inventory on the market already, and houses are staying on the market for longer than ever in the last 5 years. What does this mean for you?

Interest rates, while still near all time lows, have in fact been increasing. If this continues, the “real cost” of ownership of house will rise. With inventory high, and Days On Market long, sellers are anxious to strike deals, and, as they know that interest rates are rising, they know they should sell sooner rather than later.

So what does this mean for you?

It means that there has not been a better time to buy a house than now in 5 years or so…

But see our recent posts on why you should have a buyers agent represent you from the beginning.

Here comes the sun, and here comes the best time to buy a house in recent years.

Happy Forthcoming Spring!

Are your interests being represented when buying a house?

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Are you out looking for houses? Do you have a buyers agent? Are you thinking that you will get a buyers agent to represent your interests once you find a place to buy? Think again…

It is common practice in the real estate industry for Realtors who are listing the house to assume you are their client, or hustle you into signing up as one, because then they get both the listing agent commission and the buyer agent commission, technically referred to as the Cooperating Agent Fee. Double the money for the same work… wouldn’t you do this?

But these agents represent the seller’s interest, not yours. We recommend that all buyers be represented by professionals, so that you obtain the best advice and assistance you can, for the one of the largest transactions of your life. If you sign up with the listing agent, you are not being represented. This is a legal FACT, and you are doing yourself a disservice, especially since it does not cost you any extra to be represented.

If you are already represented, make sure you say so to the listing agent at the open house you go to… otherwise the listing agent will claim that the buyers agent is not the Procuring Cause for you being there, and will not pay the buyers agent their fee. This can result in you being liable for paying the fee yourself, on top of the cost of the house.

If you are not represented, you should be, and you should be soon. Get a buyers agent to work for you, and to protect your interests in the transaction, to help negotiate the purchase price, make sure all the inspections are completed, and to help make the process go through smoothly and with the least trauma possible. Again, if you go to open houses, and find a house you want, it may be too late to get an agent to represent your interests, since the listing agent will claim that you are their client or customer, and so the buyers agent will not be paid from the commission…

Being properly represented is key to a smooth transaction. See our sections on buyers agency and agency in general before you look for houses.

New Data for housing prices in RI

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Rhode Island Association Of Realtors Data for 2006 was just released, and the changes are to the benefit of buyers. Remember that the Association’s data is skewed somewhat, reflecting pre-owned homes, or as we say in the business, existing housing inventory. Building permits have declined as well.

Median Rhode Island home costs $ 400 less in 2006
The Rhode Island Association of Realtors released its 2006 year-end home sales data. Statewide, Rhode Island house prices declined less than 0.15 percent in 2006. The median single-family home sold for $ 282,500, still far out of reach for too many Rhode Islanders.

Foster saw the biggest median price decline (9.48 percent to $ 353,000), followed by Hopkinton (6.92 percent to $ 282,500) and Cumberland (6.14 percent to $ 305,000). Still, three communities saw double-digit increases: Little Compton ( 43.73 percent to $ 855,200), West Greenwich (18.22 percent to $ 390,000), and Portsmouth (12.63 percent to $ 423,500).

See the Association’s  community-by-community listing of 2006 single-family house prices. (Statistics for condos and multi-family homes are also available.) And read the Providence Journal stories on single-family house prices and the condo market.

Building permits decline for 6th straight year
Single-family home building permits issued in 2006 were down 9 percent from 2005, according to new data from the Rhode Island Builders Association (RIBA). This marks the sixth straight year with a decrease.

Just 1,606 single-family house permits were issued in 2006, down from 1,765 in 2005. Permits have been declining since reaching a high of 2,258 in 2000. 

RIBA, a HousingWorks RI member, feels the 2006 drop is partly due to the overall decrease in housing sales, but they point out that corrections to the housing market have not drastically impacted prices in Rhode Island.

Read the Providence Journal’s article about the data.

Housing prices dropping, interest rates rising, buyers market continues.

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New statistics are out… increasing numbers of foreclosures, and median housing prices declined more than 40% across the country, especially in metropolitan areas… so what does this mean?

It is a buyers market for sure, and as interest rates rise (up an eighth since January) prices may fall some more. Time to buy…

I will prepare a post with the latest data from HUD in the next day or so… please stay tuned.