A 12-hour tour...

So, these customers (Steve and Beth) were from South Carolina.  He was planning to take a new position as a government civilian with a military command in Hampton Roads.  The timing was short; they only had one weekend to look at houses.

They wanted a large home.  It was only the two of them but they liked to entertain.  It had to be at least 4 bedrooms and 3 baths.  They had a preapproval letter for up to $600,000 but they didn’t want to spend that much.  Steve and Beth were not too fussy about the location but they did want a nice area in Virginia Beach.  That left a lot of area to cover and not a lot of time. 

I sent them a bunch of properties to consider, asking them to narrow it down about a dozen or so homes to see over a two-day period.  About a week before coming up, I got an email with their list of homes to see.  They also informed me that the original timeframe (Saturday and Sunday) had to be trimmed down to one day, Saturday, but they still wanted to see all the homes on the list they sent me.  Great.

This was going to be interesting: I set up appointments to see 13 houses in one day.  For those that have ever looked for a home, that is a lot to look at in one day.  I had arranged the scheduled times so we would go counter clockwise around Virginia Beach.  We started near Joint Base Little Creek Fort Story (formerly Little Creek Amphib Base) in the northwest part of Virginia Beach, at about 7:30 am.

The part of Virginia Beach where we started was a more mature area…more established, most of the neighborhoods had been there for decades.   were ok with an older home as long as the large ticket items were updated inside and out.  On the exterior these included windows, roof, and HVAC.  Inside the concerns were the kitchen, baths, and floors.

From the northwest part of Virginia Beach we trekked out west, towards the Chesapeake/Va Bch border.  Those neighborhoods were a mix of older homes built in the 70’s and 80’s to new construction homes.  The new construction homes weren’t really what they were looking for…not enough yard.  The older homes were too small and too “cookie cutter” for them.  So further south we went, Indian River Road towards Pungo.

There were some gorgeous new homes along Indian River Road.  Huge homes, the smallest was about 3500 square feet; the largest was almost 10,000 square feet.  These were nice a little on the extravagant side for them.

We traveled further south, down into Pungo to look at some homes with land.  Beth had expressed an interest in perhaps enjoying the country living.  That did not last too long.  The houses and properties were very nice, priced well, updated.  It was the smell she didn’t enjoy.  So the country was out.

From Pungo we journeyed over to Sandbridge to look at several homes.  Sandbridge reminds me a lot of Cape Cod…roads covered in wind swept sand, crooked picket fences blocking off the dunes in order to protect them, stores with “Closed for the Season” signs.  There were some very old homes and very new homes and home in between in Sandbridge. 

There were three homes I had scheduled.  After the second one we saw an open house sign on a For Sale By Owner (FBSO).  Both Steve and Beth wanted to stop and look.  Not a problem.  We pulled into the driveway of a great looking home.  It wasn’t brand new but newer than most, maybe 8 or 10 years old.  It was on stilts and had two stories above that.  Essentially the “first floor” was a very large foyer with some storage and a full bath.  On the other two floors were four bedrooms and two and a half baths (three and half total baths in the home).  There was fantastic wrap around porch.

The owners (Sellers) seemed very nice, giving a tour, explaining the updates they had done.  We found out the house was 11 years old.  It wasn’t quite what the Sellers were looking for so they had done a lot of work.  The kitchen and all the baths were 3 years old.  The roof was original.  The HVAC was 6 years old, because they had installed a dual zone system.  All the windows were replaced and only a year old: every one of them had working storms shutters.  Steve and Beth loved it; this house quickly went to the top of their list.  The owners were more than willing to work with a buyer’s agent too (that would be me). 

We piled back into the car and turned our voyage north.  The last two homes were located in the Northeast part of the city, along the oceanfront.  The “oceanfront” essentially starts at Rudee Inlet, which is 2^nd St and goes north to 89^th Street.  Atlantic Ave and Pacific Ave parallel each other until you get between 40^th and 42^nd Street then it turns into just Atlantic Ave.  As you travel north on Atlantic there are homes on the left (non-beach side) and right (beach).  One of the homes was on 49^th Street (on the left) and the other was on 64^th Street (on the right).  Steve and Beth really enjoyed the homes at the oceanfront and added them to the list. 

When all was said and done, by the time I dropped them off at their car, it was 7:28 pm.  It had been twelve hours since we had begun to look at homes.  Before parting, Steve and Beth gave me the top three homes they were going to consider on the drive back to SC the next day.  Once they made their decision, they would let me know and I would start the paperwork.

Sunday came and went, no word.  I didn’t bug them all day.  On Monday I sent a quick email saying that I hope that they made it home ok and that if they had any questions to let me know.  No response on Monday or Tuesday.  Called and left a voice mail on Wednesday.  After that I figured I would back off a bit.  I didn’t try to contact them again until the following Wednesday.  I figured that whatever had gotten them busy may have slowed down by then.  I called, left a voice mail, and sent an email.  Nothing crazy, just a “hey, give me a call and let me know what you want to do”.

I did not hear from Steve or Beth for another two weeks.  When I did it was not good news.  They had gone ahead and contacted the owners of the FSBO that had made such an impact.  They thought that they would save time and money by cutting me out.  Unfortunately for them, that wasn’t the case.  The Sellers had gone out and gotten themselves an agent.  What did that mean?  They would be on their own throughout the transaction with nobody looking out for their best interests. 

In the end, the Sellers (and the Listing Agent) essentially ran roughshod over them because they didn’t know what they were doing.  They ended up buying the house but regretted not signing what is called a Buyer’s Broker Agreement (BBA).

Signing a BBA would have protected them.  This agreement gives legal notice that my customers (i.e. Buyer) are represented and are therefore clients.  This means I work in the best interests of the Buyer, not the Seller.  Without the BBA, legally I would be considered as representing the Seller, even though I was working for the Buyer.

From an agent’s perspective, having a BBA ensures the Buyer that I am indeed working in their best interests.  It also protects me in that if a client tries to go out buy a house without me, a house I showed them, I would still get paid.

Now, you may ask why I didn’t have them sign a BBA upfront.  At the time, it was common practice to not have a customer sign a BBA and become a client until you sat down to write up an offer to purchase.  Signing contracts usually made people uneasy.  I had every intention to have them sign one, they just cut me out first.

The law has since been changed and Virginia State law dictates that a Buyer either has to sign a Buyer Broker Agreement or a form that says they are unrepresented.

In the end I did not get paid for my 12 hour tour.  My customer got the house but it was a very stressful and trying time for both of them.  We have talked since and both Steve and Beth agree that when it comes to but again, they will sign a BBA before we go look at homes.

A little late....

I usually try to post a story once a week. I wasn't able to write this weekend as I was at a volleyball tournament out if town. Stay tuned!!

Beware of pets...

This is a short story with a HUGE lesson learned.  I was working with a client that wanted a newer home, less than 10 years old.  Three to four bedrooms and at least 2 full baths.  Simple enough, there were plenty of homes on the market.  Although not necessarily easy, with loads of choices it can be difficult to narrow it down.  Again, manage expectations of the client.  J

The second home we went to see met all of the criteria for her “must haves”.  The current owners had a cat but you would never know it walking into the house.  When I spoke to the Listing Agent (LA), she had asked that I make sure the cat did not get out the front door.  Not a problem.  Actually we didn’t even see the cat when we entered.  Didn’t bother me at all…I’m not a big cat lover anyway.

So we toured the first floor.  Beautiful kitchen, huge living room, hardwood floors…just great.  As we went upstairs, the cat came bombing by us with its tail on fire.  I think it was the cat…just a white blur streaking by us.

We looked at the four bedrooms, the full bath and upstairs laundry room (this was a huge bonus!).  The last room we went into was the FROG.  The house had a 2 car garage so the room was pretty big.  It had two small doors on either wall that opened into storage areas.  Something to keep in mind is what is people mean by “storage area”.  Is it an area that is currently configured for and used as storage?  Or is it an area that can be used for storage?  One means spending money, the other does not.

In this case, the first door opened to an area that had plywood laid out and a light bulb fixture.  Perfect.  We went over to the other storage door and opened it.  Before I could even reach in to see if there was a light, that white ball of fur went flashing by into the finished storage area.  The area that was also open to the rafters of the rest of the house.  You know with just the right amount of space for a cat to get through.

So, there I was with a client in a house, that by any objective standard, was perfect for her.  Perfect except for the cat that was now running around inside the framework of the damn house.  Now what?  I hated cats, even if I could see the cat to get to it.

My client crawled into the storage area to try and coax the cat out.  I’m thinking about what I’m going to say to the Listing Agent or heaven forbid, the Owner.  So, my client is inside the frame trying to find the cat, calling out “here kitty, kitty”.  Kind of cliché I know.  Meanwhile, I’m pacing the room trying figure out what to say.  I dialed the LA’s cell number as my stomach is twisting in knots.  I didn’t let the cat out the front door, I just let it get into the frame of the house. 

As her number begins to ring, my client called out that she had caught the cat!  NICE!  That meant I would not have to explain losing the cat to anyone, let alone the LA or the Owner.  That was a huge relief.

So the lesson I learned was to always beware of any pets in a house that I am showing.  And if you are listing your house and you have a pet?  Make sure they don’t get lost in the framework of your home.

Don't get locked out....

The good thing about mistakes and failures are that you learn from them and try not to repeat them.  Sometimes it’s easier said than done.  In this case, I made the mistake, learned from it and have not repeated it.

The client I was working with wanted a new construction home at least 3000 square feet with four bedrooms, a large kitchen, and room for a deck on the back.  We visited several new home sites over about 3 weekends.

One home in particular we viewed was just beautiful.  Of course it was the model so everything in it was an upgrade.  But in this home it made sense, all the upgrades complimented each other.  If you have recently seen some model homes, that is not always the case.  Anyway as we walked through the home my clients were getting more and more excited.

The first floor had all hardwood floors; the kitchen, a chef’s dream.  There was a guest room (or office) with full bath at the back of the house, past the kitchen.  Out back, the yard was a good size, room for a deck and even a pool if they wanted it.  There was actually a porch covered by an overhang from the second story, and that extended out into the yard a few feet.

The first floor complete, we climbed the stairs to tour the second floor.  Four additional bedrooms, including the master suite.  An enormous FROG that was staged as a home theater room.  Upstairs laundry room.  Great flow, awesome layout.  The clients were loving it.

Off the master suite was a balcony overlooking the backyard; in fact that balcony is what was covering the porch below.  So we walk out onto the balcony and the wife half of my client shuts the door.  Common courtesy and normally not a huge deal.  What none of us realized was that it was locked.

The on-site agent was downstairs at the front of the house; we were upstairs at the back of the house locked out.  When we came in, and as we toured the home, I did not see anyone else.  Not a problem, right?  Just give the agent a call and ask her to come up and let us in.  Not so much…I did not get the agent’s card so I did not have a number.  I knew neighborhood name, but not the Broker’s name (the company marketing the home).

What to do, what to do…couldn’t climb done, nothing to use.  Wasn’t going to jump.  Couldn’t really yell, no other houses or people nearby.  Tried pulling on the door, yup it was locked.  I’m really glad that my client’s had a good sense of humor.

The end is a bit anti-climactic, no big rescue, no overnight stays on the balcony.  After about 20 minutes another family was coming through, saw us waving and let us in. 

So the lessons I learned…always get the agent’s card when you walk in.  Always check to make sure whatever door you go out is unlocked so you can get back in.  Luckily it wasn’t cold or rainy or snowy or any bad weather at all.  Bad weather would have changed the whole dynamic.  J

Something to celebrate...

There is something to celebrate everyday...it could be as simple as celebrating putting both feet on the floor in the morning or having a job to go to or the fact that your team won a championship.  Or there could be something very specific to celebrate.  Today is that kind of day.

Today we give thanks and celebrate someone who always gets frequently criticized and rarely thanked.  Someone who is always working when the weather is bad, roads impassable, hurricanes blowing, beaches washing away...

Today we say "Thank you" to the Weatherman, or Weatherwoman, or Weatherperson, or whatever name you want to give that person who tries to guess what the weather is on a daily basis.  It is truly a thankless job in which most of the time, at least in Hampton Roads, they are correct.

For some, the other reason to celebrate today may have a bigger bang behind it...today is World Nutella Day.  A whole day to celebrate that creamy chocolate/hazelnut spread that makes any food that much better.  Seriously, you could put it on almost anything and it would make it better.  How can that not be a good thing?

So today I ask that you take a moment to say a silent "Thank you" to your favorite Weatherperson, or post it on their FB page or send a Tweet or if you want to, shout it at the top of your lungs from your roof.  After you've thanked them in your own special way, reward yourself with anything covered in Nutella.

My weather guys from Fox43...Don Slater and Jeremy Wheeler.  THANK YOU!!! 
I appreciate all that you do!!




Don Slater

Jeremy Wheeler

http://www.fox43tv.com/subindex/weather/weather_team

The House with a Pool...

This deal was actually about three years into my real estate career, so I quite a few completed deals under my belt.  However, even with those deals done, I made a rookie mistake and it almost cost my clients, and me, a lot of money.

My client was a couple, Don and Sherry that had a teenage boy (17) and a teenage girl (15).  I knew them both: she was a former colleague and I had met Don several times at various social and work gatherings.  It was the second marriage for both: the boy was his and the girl was hers.  They wanted a home they could call their own and that was big enough for them all to have their own space.

It was almost an ideal situation for an agent, a well-qualified buyer (approval letter in hand for $450k) that did not have to sell a home.  The only contingency would be a home inspection.  Easy day.

Here is the criteria they gave me…the high school was an important consideration, as was the commute both parents had.  The choice of cities was narrowed down to Virginia Beach and Chesapeake (Ok, well not exactly “narrowed down” but it was a start).  Price range was $375k to $425k.  Their “Must Haves” included 5 bedrooms (or 4 with a FROG), 2.5 or 3 baths, big yard, big garage, on a cul de sac.

We started looking at houses in August; by October they had seen 41 houses.  There were a bunch of different reasons for that; he didn’t like it, she didn’t like it, the kids didn’t like it, whatever.  Now normally I would not have allowed a client to see that many houses without saying something to them.  However, they were good people, I knew them both, they really were not that demanding or in a hurry to buy and ultimately it would be an easy deal.

Finally we found a home they both loved.  It had everything they wanted and then some, it even had an in-ground pool.  It was a beautiful 2-story home on a cul de sac, 5 bedrooms, 3 baths, hardwood floors throughout; kitchens and baths updated.  The schools the home was zoned for were the best rated in the city.  The yard was about 2/3 of an acre…huge in-ground pool with a pool house…an enormous deck (20’ x 40’)…beautifully landscaped.  The commute for both Don and Sherry was about 30 minutes.  All for $405,000

The only criticism was in the master bath.  There was a large plate glass window adjacent to the jetted tub that was not safety glass.  Don didn’t like that is was regular glass, an obvious safety hazard.

Don and Sherry didn’t have to talk long.  They loved the house and wanted to me to present a full price offer with two contingencies: a home inspection and replace the glass in the master bath.  The paperwork took longer than it did for them to make a decision.

I had an answer from the Listing Agent (LA) within 2 hours…the Sellers accepted the contract, except for replacing the glass window.  Now this was a $400 window that was going to sour an otherwise great deal for everyone involved.  The LA and I went round and round on the window with no resolution.  Don was insisting the Seller replace it and the Seller was adamant about not replacing it. Ultimately I decided that I would give Don and Sherry a new window as a housewarming gift.

All was right in the world…until I realized that I did not add an inspection of the pool into the contract.  So essentially the pool would convey “As Is” and if there was anything wrong the Seller would not pay for it to be fixed.  Remember the “rookie mistake” I mentioned at the beginning?  Oops.

Ok, so “oops” is a bit of an understatement, just ask my Broker: her reaction was just a bit more than “oops” when I told her what I did.  So, how to fix it?  It still had to be inspected and possible repairs made.  I contacted the LA to see if I could get the name of the company the Seller used for the pool.  It turned out to be a small local company.  I contacted the company, spoke to the owner (Ed), and explained my situation.  Essentially, I threw myself at his mercy.

Ed agreed to come out and inspect the pool for a $50 charge, down from the $95 he usually charged.  If he found any problems, he would work with me on the cost.  Ed did tell me that he wasn’t going to guarantee me anything.  I scheduled the inspection for the next day.  Why put it off, right?

So, I meet Ed at the house and we go to the backyard in order for him to inspect the pool.  He starts walking around the pool, poking and prodding the liner.  At the pump and filter station he is on his knees pushing this lever and pulling on this cover and flipping that switch.  Ed isn’t saying much, a grunt here and a grunt there.  Every once in a while I hear a “huh” or some other ambiguous sound.  I think he was keeping me in suspense on purpose.

When all was said and done Ed had good news for me: he didn’t find anything materially wrong with the pool or the associated systems and would give a me a letter stating that.  I dodged a bullet on that one. 

I had kept Don and Sherry in the loop about what had happened.  I had accepted full responsibility for the mistake and assured them I would resolve it.  It looked I had done that and it didn’t cost me more than $50.

What was the lesson I learned?  There were actually a couple.  1) Don’t think that just because I have experience that I can’t make a mistake and 2) Always have a second set of eyes look at the contract before submitting it to the other side (LA or Selling Agent).

Everyone makes mistakes: it’s human nature.  The difference is how we deal with them.  Do we learn from them?  If so, do we repeat them?  I hope they’re not repeated if it’s learned.  I learned my lessons on that one.  Even if I do not have a 2^nd person to look at the contract, it forces me to go line by line a minimum of two more times after signing it.

 

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