In a previous post in the Wasilla Real Estate News I discussed what we do for FREE! But I was only half finished. That post only covered the work we do up until the time you get an offer. 

After the offer I will help you negotiate the tricky path toward closing.  We will need to respond to inspectors, engineers, appraisers, underwriters, loan officers, title officers, the buyer and their realtor between the date of the initial offer and recording.

•  After an offer comes in we will usually put together a counter-offer.  In fact, even if the offer is pretty crummy, I recommend countering back with something that would work.  This means that occasionally we counter back with full price and terms…but still counter
• Sometimes it takes several counters to finally arrive at an agreement.  I think my record is six counters over a three week period.  But hopefully we do finally go into contract.
• The inspection is the usually the first hurdle.  The buyer normally hires a qualified inspector to look at the house for them.  The inspector ALWAYS finds some issues that he thinks should be addressed.  I help you determine what really needs to be done and what is often just a desire of the buyers.  For example, if the house doesn’t have gutters, the inspector almost always suggests that they be installed.  Gutters are a great idea and often help prevent damage to a home, but are not a code item and won’t be required by an appraiser or underwriter.
• An engineer will inspect the septic and perhaps the house.  Occasionally an inspector asks that an engineer inspect the structure of a home.  A structural engineer might inspect the foundation or another part of the house.  The septic system will almost always need to be inspected and approved by an engineering firm.  If an engineer discovers an issue you have a real problem.  I will help you determine the best way out.
• The appraiser will determine value.  The appraiser works for the lender,  but their fee is paid by the buyer…or seller.  The appraiser is NOT an inspector and cannot be depended upon to find hidden defects in a house.  But if the appraiser does call out a safety problem the issue will almost always have to be addressed to keep the transaction from falling apart. And if the appraisal comes in below the sales price, you have a big issue, however, we can usually find a way to work through it.
• The loan is in process.  While the inspection, appraisal, engineer reports, and title work is progressing the loan is being processed.  This work is done by a loan processor that takes the file from the loan officer.  The loan officer is usually the person who takes your loan application.  The processor verifies your employment, checks the credit, and generally makes sure that everything you need for your loan is gathered together.  It generally takes some time to get the whole loan package together.  Part of our job is to check with the loan officer and loan processor during the transaction to see if we can help get anything done. 
• The title company makes sure the title is clean. There are often issues that need to be cleaned up on the title before we can close.  Sometimes there are liens that need to be released.  Occasionally there are mineral leases, easements or other items that need to be disclosed to the buyers.  We have a title search done right after we list your property to head these issues off at the pass. 
• By this time I have made ….ZILCH. 
• Almost every day we talk to the buyer’s realtor about the transaction.  Often we talk several times a day.  And there are many emails and faxes back and forth.  Communication is very important during this time and it is also important to be able to handle stressful situations without losing your cool.  We always have to remember the our purpose is to help you toward your goal of a successful transaction, not winning our personal argument.
• Schedule closing at a time and place convenient to you.  Often we will pick up documents in Anchorage to expedite a closing for you in a place that works best for your needs.  The next business day after closing the title company will normally record the transaction. 
• YOU GET YOUR PROCEEDS CHECK !  And we finally get paid. 

I actually enjoy working by commission because I feel good about being paid for accomplishing a goal.  But in one way, it is the commission system that increases the cost of selling a home.  If Realtors were paid for the work they did whether or not the house sold they could afford to charge lower fees. 

I have toyed with the concept of working on a consulting basis for years.  In fact, I have done it a few times.  Recently I discovered the Accredited Consultant in Real Estate .  I am seriously considering this training with a goal to lower Realtor fees for house sellers and buyers. 

Stay tuned. 

Until then, I still charge 5–7% commission rates depending on the level of service and marketing you feel that you need.

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This is a list of licensed home inspectors that work in the Mat-Su Valley.  As time goes by I will add to this list.  If you want to be on it, just drop me an email.

• *John and Nancy Hill, Lynne Lake Home Inspections.  232–5675
• *A-1 Home Inspections 892–4444
• *Active Inspections 376–8402
• *Certified Home Inspections 355–3591
• *Fairview Property Consultants 373–7599

John Hill has written an article as a guest author on this website about radon.

This is an incomplete list that will grow as time goes by.

John Goad (below) recommends the home inspection directory.  There appear to be no Alaskans on it yet.  But readers elsewhere may get some use from it until the Alaskans join up.

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I had a home seller this week tell me that he wanted the “brutal truth” about what it was going to take to get his home sold.  I think that is a great term.  We all occasionally need to face the brutal truth about different things in our lives. 

I’m going to let you in on a secret that most Realtors tend to keep quiet. Choosing the right Realtor is not the number one priority to getting your house sold.  You do need a competent Realtor to represent you AFTER you get the offer.  But getting the offer depends more on you than on the Realtor.

Here is the brutal truth:

• First, get the price right.  The days of slapping a high price on a house in hopes to not leave money on the table are over. Because there are lots of competing homes on the market your price needs to be attractive enough to draw in the buyers.  Not only will you not get an offer if you are not attractively priced, you probably won’t even get many showings.  You need to answer this tough question.  Is it more important to get your house sold, or to wring the last dollar out of the deal?
• Second, present it well.  You want your home to be neat and clean.  It should feel very comfortable for a buyer. You want them to mentally move in.  This is called staging a home and is a growing field in real estate.  An experienced Realtor can help you in this or you can hire a professional.   This is very important.  The curb appeal and the first 30 seconds in the home often make or break the deal. 

The Brutal Truth is that these two things are the most important in getting your house sold and you have complete control over them.  If you neglect these issues you are just going to sit on the market without any showings no matter whom you choose to market your house.

Other important factors include:

• Marketing.  You need to get the house in front of the buyers.  This is where many sellers feel one Realtor will help over another.  The fact of life is that if the house is on the MLS system it will be exposed to virtually all the serious buyers. There may be a few buyers out there that do not check out the Valley Board of Realtors MLS system or the Anchorage Board of Realtors system but they are few and far between.  The few that might not have access to these sites surely will eventually work with Realtors who do.  All the other marketing is really done just to please the sellers or to get buyers to call the Realtor.  Other marketing does very little to sell that particular home.
• Photos.  Good photos are important.  If possible the main photo should have sunshine and blue sky.  It should present the home in the best possible light since buyers will be basing a lot of decisions on the outward appearance of that photo. Occasionally the Realtor may choose an inside photo as the main picture, there is usually a reason for that, perhaps there just isn’t a way to make the exterior attractive.  I often go back several times to get a good photo.  How many realtors will wait until 10:00 PM to get the sun shining on the North side of the home?
• Ease of showing.  It’s important to make your home as easy to show as possible.  That means “call first, lock box” if you are living there, or “vacant lock box” if it is empty.  If someone is lining up homes to show and has to choose 5 out of the 25 available, what do you think happens to the ones for which an appointment is needed?  That’s right, they go to the bottom of the pile.

So do you need a good Realtor?  You certainly do . You need an very experienced person to help with negotiations with the buyer, and to avoid the many pitfalls that open up between the time you and your buyer go into contract and closing.  This is where a good, experienced representative is worth the money.  This is also where you could lose a bunch of money if you have someone who hasn’t been around the mountain a few times.  Get someone who knows the business.

For more important seller information check out my other articles here.  Or just give me a call on my cell phone….  907 232–7900

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Gale Larson, a local home stager wrote this excellent article on home staging.  Please note her contact information at the bottom.  If you’re one of my sellers, please contact me for a 50% discount for Gale Larson’s services.

The Sale

How Staging Helps

Home staging has been around since the mid-70’s and has been quietly utilized by a select few. Since the late 1990’s it has become a fresh standard in service and marketing in the real estate industry. As buyers have become more sophisticated, marketing, too, must become more refined.

Staging is the crucial bridge between sellers and buyers when it comes to residential transactions. A professional stager can turn an average property into a desirable, above average property that stands out among similar offerings and appeals to a broad audience. Home staging is a niche that is warmly received and widely accepted by realtors, investors, landlords, and for sale by owner sellers, nearly, worldwide.

A competent stager helps transition the home owner to a house seller. Making this transition is key to the rest of the process the stager is responsible for.

When the seller has detached emotionally from the house, 5 vitally important things can be accomplished towards the sale:

• – de-cluttering  
• – cleaning
• – downscaling the contents of the house
• – organizing
• – and presentation- which is the actual staging part

This results in an attractive arrangement of furniture, accents, art work, strategically placed vignettes that capture the hearts of buyers.

Just as a seller must disconnect emotionally to sell their house, a buyer must connect emotionally to spark the compelling desire to purchase a home.

An effectively staged property touches buyers on many levels allowing them to mentally move in, imaging themselves enjoying living in the house they are touring. And this is what promotes sales. After all, “home is where the heart is.”  

Capture the heart of the buyer, and you capture the sale. Staging can be the silver bullet for marketing current and new listings. Stage a stale listing and give it new life. It’s not a guarantee, but it’s close!

Gale Larson-owner

ShowCase Residential Staging

“the sizzle that sells homes”

Palmer, Ak

746-0698

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Since 2006 there have been no real estate agents in Alaska.  The Alaska State Legislature passed statutes that the Alaska Real Estate Commission put into regulation that effectively eliminates real estate agents.

That doesn’t mean we can’t earn a living, we still represent buyers and sellers and we are still paid for our services.  But we are no longer agents.  The term agent carries legal baggage that was often unintended in relationships between buyers, sellers, and real estate agents.

We are now only real estate licensees that have specific duties in our relationships with buyers and sellers.  As the real estate commission’s consumer pamphlet spells out, there are four possible relationships a licensee can have with a consumer.

• 1. We can provide specific assistance.  We would not be representing the party, just assisting them in their real estate transaction.
• 2. We can provide representation.  This entails a higher level of duty on the part of the licensee toward the consumer.
• 3. We can be a designated representative.  This is when one licensee may represent the seller in a transaction and another licensee represents the buyer, but both are part of the same office.
• 4. We can be a neutral licensee. We can help both a buyer and a seller in a transaction without representing either one. 

All four of these situations require different duties on the part of the real estate licensee but all of them require at least the minimum of duties.  This minimum is the same as that owed under specific assistance.  These duties are:

• 1. Exercise reasonable skill and care.
• 2. Deal honestly and fairly
• 3. Present all written communications in a timely manner
• 4. Disclose all material information regarding the physical condition of a property
• 5. Account for all money and property received.

The other duties are outlined in the consumer pamphlet which all consumers should read.

I will deal with the other three levels of representation in future articles.

Feel free to comment with questions or clarifications.

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I am currently in Chicago at the National Association Of Realtors headquarters taking mediation training. It has been an eye opening experience.

Mediation in a real estate setting is a way to settle disputes outside of the court room and outside of arbitration.  A successful mediation allows all parties to the dispute to put forth their issues and then the mediator helps guide them to a conclusion that is satisfactory to all.

It’s not like a trial where someone has to prove the facts or defend your innocence.  It is just a guided conversation to help each side understand the other to see if there is any common ground upon which they can agree.  Usually, after seeing the issue from the opposite perspective the parties can agree to satisfactory settlement.

It is much faster, and much less expensive than solving disputes through the legal system.  All parties can get on with their lives without spending huge amounts of money for legal fees and waiting for the uncertainty of a trial.

The parties do not give up any rights to try mediation.  If the mediation is not successful they can go on to the court system.  But 90% of mediations are successful. 

The Valley Board of Realtors provides this service to our members and to the public to help settle any issues that arise as a result of a real estate transaction.  No transaction that I have been involved with has gone to mediation, but I certainly would not hesitate to recommend mediation over the more confrontational means of solving disputes. 

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Ever since I started in real estate in Wasilla and Palmer, it has been my belief that a good transaction means that all parties are happy right up to the closing table.  If something comes up between the initial offer and the closing table it is important to communicate the issue to all parties.  Usually, good communication can ease the problem and help all to see a way to continue the transaction.  

But,if things start to unravel it is usually the buyer who initiates the recission.  In Alaska, the buyer has quite a few opportunities to walk away from a deal.  Here are a few of them.

• 1. At the beginning of a transaction the buyer should have an inspection done.  If issues come up during the inspection, most purchase agreements allow the buyer to cancel.
• 2. The buyer should receive a copy of the seller’s property disclosure before writing an offer but that is sometimes not the case.  If the buyer receives the disclosure later, he/she has three days to rescind the contract.

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