Q: Last winter our roof had a very minor leak. We repaired the leak and repainted where it leaked, and no one would ever know it happened. Do I need to disclose this to a potential buyer?
A: By law (California Civil Code 1102) sellers are required to disclose known facts materially affecting the value or desirability of the property. If you feel you have to ask whether your issue falls under this, the answer should be yes. Even if you think something is minor, to a buyer it might be relevant -– so the safest thing to do is disclose, disclose, disclose. There is a saying: “What buyers learn during escrow, they forgive; what they learn after moving in, they sue over.”
Q: We’d like to make an offer on a house but we don’t think the property is worth near what the seller is asking –- should we even bother?
A: Ask the advice of a Realtor on the specific property in question, but in general my answer would be yes -– definitely make an offer! You can’t get what you don’t ask for, and if you don’t make an offer you’ll never know where the seller stands.
There are a lot of factors I look at when a buyer wants to purchase a property, such as:
How long has the property been on the market? Has it had a price reduction? Is it really overpriced and do I have hard data to present along with my buyer’s offer to support the price they want to offer? What is the seller’s motivation and how much is owed on the property? I encourage buyers to write an offer for what would be the ideal situation for them and let the seller counter on terms that are acceptable to the seller. To make the negotiation more of a win-win situation, choose what’s most important (like price) and try to be as accommodating as possible on the other issues (like if they want a short escrow). Finally, when it is possible, I present my buyers’ offers directly to the seller, with their agent present. This is the most effective way to present my buyer’s view of things and to really push for their position.
A good Realtor will have the knowledge and the negotiation skills to guide you through this process.
Q: I’ve had my house listed for six months and it has only been shown twice. I have a beautiful home and just don’t understand why no one is interested. Do you have any thoughts about why there is no activity?
A: Many factors could play into this, and without knowing everything about your personal situation, I cannot give a specific answer. In my opinion, though, a lack of activity on a listing is usually a result of one (or both) of two things: price and/or exposure (marketing).
When prices were climbing, it was not a problem if you overpriced your house because the market would catch up. But now that we are in a fluctuating market, it is so important to be competitively priced. You get the most activity when a listing first comes out, and if you’ve priced yourself out of the market you won’t get this. Buyers have a lot to choose from. When they see they can get way more for their money than your house, they won’t bother to look.
If you are not quick to adjust, you find yourself on the market for a really long time, and buyers start thinking “there must be something wrong with that house” — even if you are finally pricing it right. In the end, overpricing your house could result in you getting way less and in a much longer period of time then if you’d priced right in the beginning. Your Realtor should be able to help you price your house fairly and give you the facts and figures aabout why it warrants that price. Be wary if they simply agree to whatever price you suggest without first doing a market analysis to support it.
Another factor could be a lack of exposure. If buyers don’t know your home is on the market, they can’t buy it. Ask your Realtor what he or she does to market your home to get it the most exposure. I provide a marketing plan to my sellers, outlining the things I will do to get the most exposure for their home so they are never left wondering if there was an exposure issue. Many homebuyers today search for homes on their own via the Internet, open houses, etc., so just listing it on the MLS might not be enough anymore. If you are absolutely certain you couldn’t get any more exposure for your home I recommend you revisit the price issue discussed above!
Contact Lara Wells Osborn at Coldwell Banker C&C Properties – Westside, 1801 Buenaventura Blvd., Redding, CA 96001. Cell: (530) 276-3026. Fax: (530) 419-1167. E-mail: laraosborn@ccproperties.com or larawellsosborn.com.
