Real Estate is a Team Sport 🏈 – TBG Update 4/2
What I find fascinating about real estate these days is how much variation there is in human opinion on all different aspects of the real estate deals. An appraiser recently appraised a property that closed escrow this week for 30,000 less than the purchase price and he was positive that was the value; there were multiple offers on the property and the backup buyer was waiting at a price higher than the accepted offer, which was 30,000 higher than the appraised value. Our listing that’s in escrow for 175,000 over asking had the appraiser question the comps we provided; all parties are grateful that the appraiser decided to put the appraisal at value, which makes sense because there were 6 offers and the buyers (and the backups) are positive that the price they’re paying is right. Our buyer’s agent wrote an offer today for a buyer who knows he’s absolutely paying 200,000 over market value but it’s worth it to him because he wants to buy that house which to me makes the price he’s paying market value. At inspections this week, one chimney inspector said the structure of the chimney is compromised because it should have been rebuilt from seven inches lower; both a second mutually trusted experienced chimney inspector and the Los Angeles Building and Safety Department found the rebuild fine. Nowadays, more than ever before, it feels like it takes diving deeper and thinking things through to arrive at the truth.
I think owners are smart to put their house on the market and to give it exposure to make sure to get price opinions from so many different buyers. I think it’s smart for owners to do all renovation work to their properties with permits.
We got a full price offer on a listing this week. Before the owners accepted, we called the lender, a big box bank, to make sure the prequalification letter was good. And she said it wasn’t! I asked how the borrower has a letter that isn’t really a prequal letter. She said she gave the letter based on an application but when the supporting paperwork came in, the buyer wasn’t qualified afterall. But it took a phone call to uncover that.
Now more than ever before, it behooves everyone – buyers, sellers, owners – to be thorough and comprehensive. For owners and owner’s agents: do renovations with permits, put your property on the market with adequate time for exposure and proper marketing, make sure your buyer is really approved before accepting any offer (irrespective of a letter they share), allow all inspections and double check inspectors’ opinions to arrive at the truth if you’re not sure that what’s being reported is the truth, meet appraisers with comps and market interest to support the purchase price. Do diligence from start to finish.
Real estate is a team sport and we get the honor to work with other agents on every deal. Great agents are detail oriented, super comprehensive, and protect their clients’ interests. Great agents who care about the details are our favorite co-agents because we love working with professionals who are role models to everyone else in the profession. At our company we strive to be role models and inspire others with our work too.
Wishing all a wonderful holiday weekend with lots of time to bond with family and friends! We’re excited for Spring…and hopefully open houses again soon!