Risk Vs Reward…when is it worth it in Real Estate?
Today, we give you Tara Nelson’s latest blog from Trulia entitled 3
Ways Real Estate Goes Rogue – and How to Weigh the Risks and Rewards of Rogue
Behavior. For most, a Real Estate Sale or Acquisition is the biggest
decision in your life. Ms. Nelson points out common issues that have to be
weighed, the good with the bad that face both Buyers and Sellers. Before you
have to make any of the following decsions, reach out to the Dawn Thomas Team to
help!
1. The “rogue” buyer’s agent: “The rogue agent is the one who is constantly going entirely off the charts from what you’ve laid out as your criteria for a home. But in my experience, more often than not, there’s method to a so-called “rogue” agent’s madness. Some agents go rogue when there’s a real disconnect between a client’s asks and their budgets, in which case they aren’t going rogue at all but, rather, reality-checking you on what you can get for your money in your market (whether or not you are inclined to shoot the messenger). Other agents go rogue when they’ve really listened deeply to the picture you’re painting of the lifestyle you want to live ‘after’ you buy, and they have reason to believe the homes they are showing you can create that better than what you’ve asked for. Still others go rogue when they come across a unique opportunity they think you might love – frankly, part of the advantage of working with an agent in the first place is to have someone watching aggressively for opportunities that come on the market that you might miss for one reason or another.”
2. Disclosure debacles: Even though we currently in a HOT! HOT! HOT! Sellers market in the Silicon Valley, that doesn’t stop Sellers from being worried sometimes that their property won’t sell. So they want to make their home look the best and to them, the ‘best’ means the property with the least amount of issues. This is why some Sellers are tempted not to disclose all the “little” things that they’ve done/had problems with over the years. This is a SERIOUS mistake.
Reality check: “But you know what? Giving a buyer true, full disclosure also vastly decreases the chances that they will come back and sue you years down the road, when something goes wrong that they might have been able to find if you had disclosed your little plumbing peccdilloes up front. What’s way more expensive than splitting the difference with your buyer on a sewer line replacement? Paying court fees, arbitrators and attorneys to sort it all out five years down the road.”
3. HOA hijinks: HOA’s make a lot of people nervous, even some Real Estate Agents (not the Dawn Thomas Team) and sometimes can be the sole reason a Buyer is turned off by looking at a townhouse or condo. It’s no reason to limit yourself as a Buyer and with the help of an educated Realtor® you won’t have to worry–about the things you can control!
“HOA’s themselves can go rogue, so to speak, by:
• failing to appropriately budget for upcoming repairs and expenses
• levying unexpected assessments
• increasing dues beyond what an owner might think is reasonable
• failing to enforce regulations – or being overly restrictive in enforcing regulations – about any subject from paint colors, to flooring materials, to pets allowed and noise controls.
And home owners can – and do – go rogue on their HOAs, as well, including when they:
• default on their HOA dues (the HOA can and usually will send the homeowner to collections for this. Worst case: they can take your home.)
• default on their mortgage payments or
• intentionally or egregiously violate the same sorts of regulations described above, terrorizing their neighbors and fellow HOA members. (Which could lead to all sorts of messes)”
1. The “rogue” buyer’s agent: “The rogue agent is the one who is constantly going entirely off the charts from what you’ve laid out as your criteria for a home. But in my experience, more often than not, there’s method to a so-called “rogue” agent’s madness. Some agents go rogue when there’s a real disconnect between a client’s asks and their budgets, in which case they aren’t going rogue at all but, rather, reality-checking you on what you can get for your money in your market (whether or not you are inclined to shoot the messenger). Other agents go rogue when they’ve really listened deeply to the picture you’re painting of the lifestyle you want to live ‘after’ you buy, and they have reason to believe the homes they are showing you can create that better than what you’ve asked for. Still others go rogue when they come across a unique opportunity they think you might love – frankly, part of the advantage of working with an agent in the first place is to have someone watching aggressively for opportunities that come on the market that you might miss for one reason or another.”
2. Disclosure debacles: Even though we currently in a HOT! HOT! HOT! Sellers market in the Silicon Valley, that doesn’t stop Sellers from being worried sometimes that their property won’t sell. So they want to make their home look the best and to them, the ‘best’ means the property with the least amount of issues. This is why some Sellers are tempted not to disclose all the “little” things that they’ve done/had problems with over the years. This is a SERIOUS mistake.
Reality check: “But you know what? Giving a buyer true, full disclosure also vastly decreases the chances that they will come back and sue you years down the road, when something goes wrong that they might have been able to find if you had disclosed your little plumbing peccdilloes up front. What’s way more expensive than splitting the difference with your buyer on a sewer line replacement? Paying court fees, arbitrators and attorneys to sort it all out five years down the road.”
3. HOA hijinks: HOA’s make a lot of people nervous, even some Real Estate Agents (not the Dawn Thomas Team) and sometimes can be the sole reason a Buyer is turned off by looking at a townhouse or condo. It’s no reason to limit yourself as a Buyer and with the help of an educated Realtor® you won’t have to worry–about the things you can control!
“HOA’s themselves can go rogue, so to speak, by:
• failing to appropriately budget for upcoming repairs and expenses
• levying unexpected assessments
• increasing dues beyond what an owner might think is reasonable
• failing to enforce regulations – or being overly restrictive in enforcing regulations – about any subject from paint colors, to flooring materials, to pets allowed and noise controls.
And home owners can – and do – go rogue on their HOAs, as well, including when they:
• default on their HOA dues (the HOA can and usually will send the homeowner to collections for this. Worst case: they can take your home.)
• default on their mortgage payments or
• intentionally or egregiously violate the same sorts of regulations described above, terrorizing their neighbors and fellow HOA members. (Which could lead to all sorts of messes)”
This blog is courtesy of The Dawn Thomas Team who is an
award-winning Real Estate Agent team at Intero Real Estate Services in Los Altos
650-701-7822. We help nice people with selling and buying homes from Palo Alto
to West San Jose!
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