Thursday, July 19, 2012
Monday, July 9, 2012
Preparing Your Seller to Prepare the Home to be Prepared for Showings - Wisconsin REALTORS® Association
Preparing Your Seller to Prepare the Home to be Prepared for Showings - Wisconsin REALTORS® Association
Preparing Your Seller to Prepare the Home to be Prepared for Showings
Part 1: Pets
By: Cori Lamont
This article was born because of a Facebook posting. A Louisiana friend just reunited with her yellow Labrador Retriever, Emma. Apparently, Emma was let out of the house by an agent conducting a showing, and after a few days, she was returned unharmed and happy. However, Emma’s tale — pun intended — made me begin to wonder: what conversations are agents having with sellers when it comes to preparing their homes for showings?
This conversation has many layers and requires a couple of magazine installments. The first: owners of properties for sale with pets, and the second installment in the July magazine will highlight other concerns, such as protecting the seller’s personal property and the safety of the agent.
The family pet conversation can be a tricky one. For some sellers, the most important quality they look for in any person, including their listing agent, is how they treat the owner’s pet or pets. The appropriate way to address the family pet’s presence in the home during showings and open houses can be a bit like trying to navigate a boat through rock-infested waters at night — a slow, painful process that can leave holes and irreparable damage.
Often agents are equipped to go into a seller’s home and provide direction as to room décor and color, suggesting removal of personal pictures and memorabilia, and packing away extra clutter. There is no quicker barometer to determine the love for the family pet until the agent begins to discuss options regarding the presence of the pet in the home during showings and open houses. Such options during showings and open houses may include: removing the pet from the property, kenneling the pet, placing the pet in a closed-off space, or placing the pet in the enclosed backyard. It is at this time that the agent will fully comprehend what that pet means to that seller and the agent’s appropriate approach.
Per lines 174-182 of the 2008 WB-1 Residential Listing Contract:
OPEN HOUSE AND SHOWING RESPONSIBILITIES: Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an “individual showing” or an “open house.” Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold Broker harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during “individual showings” or “open houses” other than those caused by Broker’s negligence or intentional wrongdoing. Seller acknowledges that individual showings and open houses may be conducted by licensees other than Broker …
Listing brokers should review this language with all sellers. According to the terms and conditions of the listing contract, the seller agrees to prepare the property for showings. This obligation would appear to include securing any pets. The listing also states that the seller agrees to hold the broker harmless for any loss or liability resulting from personal injury occurring during individual showings or open houses unless the broker was negligent or there was intentional wrongdoing. Good communication between the listing and showing brokers would indicate if pets are present at the property and if any precautions need to be taken.
Illustrating a positive exchange, the listing agent called the cooperating agent to tell them, “the hamster got loose this morning and the family could not find where Lightning was before they left for work. So I wanted to let you know that the property is not infested with rodents; it’s just a family member on the lam.” In the event the buyers encountered Lightning, they were prepared.
In contrast, while in the kitchen admiring the space, one of the buyers opened the pantry door and out flew Leopold, the seller’s ferret. Luckily, Leopold scampered off without injury; although the buyers did not fare so well. I am told that any time that a buyer opens an unfamiliar cabinet or door, they do so with great caution. The listing agent did not inform the cooperating agent of Leopold’s presence in the home, let alone a penchant for hanging out in the pantry.
The listing agent should clearly express to the seller that the suggestion of removing the pet from the property or placing the pet in a limited space is as much for the pet’s safety as it is for the prospective buyer’s and agent’s. While a seller assures you that their pet is nice and wouldn’t hurt a fly, you should politely remind the seller that not everyone is comfortable around animals and you want to make sure that their pet is safely secured, allowing buyers to focus on the home and not the pet or the buyers’ personal level of discomfort. Also, remind the seller that the buyers may have children, which could add another layer to the safety concerns for the pet.
Tell the seller that this is as much about protecting your dog, cat, ferret, rabbit, snake, hamster, bird or pot-bellied pig as it is the buyer and cooperating agent. The ability of an open house host to monitor the activities of all guests is limited, especially if the agent is attempting to contain a pet throughout the home. I can personally recall watching a listing agent hosting an open house struggle with holding back the dog while watching the cat to ensure that neither of them made a break for the open door. The listing agent may even be able to persuade the seller to remove the pet all together from the home, and if possible, make sure all the pet’s toys, beds and the like are also put away. If a buyer is not a pet person, they may not be open to seeing a litter box right next to the kitchen island.
There is, however, a movement to promote the pet with the home. One staging blogger recently suggested staging the dog with the home. In her personal experience, she wanted to keep the dogs in the home and not locked up for hours in a small kennel. She dressed the dogs in matching sweaters and contained them in the laundry room with a gate. On the gate, she posted s sign with photographs where the dogs communicated their excitement for the prospective buyers to see the home and apologize if they were a little noisy due to the excitement. For more on this go to http://styledstagedsold.blogs.realtor.org/2012/03/26/not-sure-what-to-do-with-the-household-pet-stage-the-dog/.
However the listing agent and seller decide to work the pet into or out of the home during showings, it is important to be candid and genuine about the concern for the safety of the pet, prospective buyer and cooperating agent.
Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.
This conversation has many layers and requires a couple of magazine installments. The first: owners of properties for sale with pets, and the second installment in the July magazine will highlight other concerns, such as protecting the seller’s personal property and the safety of the agent.
The family pet conversation can be a tricky one. For some sellers, the most important quality they look for in any person, including their listing agent, is how they treat the owner’s pet or pets. The appropriate way to address the family pet’s presence in the home during showings and open houses can be a bit like trying to navigate a boat through rock-infested waters at night — a slow, painful process that can leave holes and irreparable damage.
Often agents are equipped to go into a seller’s home and provide direction as to room décor and color, suggesting removal of personal pictures and memorabilia, and packing away extra clutter. There is no quicker barometer to determine the love for the family pet until the agent begins to discuss options regarding the presence of the pet in the home during showings and open houses. Such options during showings and open houses may include: removing the pet from the property, kenneling the pet, placing the pet in a closed-off space, or placing the pet in the enclosed backyard. It is at this time that the agent will fully comprehend what that pet means to that seller and the agent’s appropriate approach.
Per lines 174-182 of the 2008 WB-1 Residential Listing Contract:
OPEN HOUSE AND SHOWING RESPONSIBILITIES: Seller is aware that there is a potential risk of injury, damage and/or theft involving persons attending an “individual showing” or an “open house.” Seller accepts responsibility for preparing the Property to minimize the likelihood of injury, damage and/or loss of personal property. Seller agrees to hold Broker harmless for any losses or liability resulting from personal injury, property damage, or theft occurring during “individual showings” or “open houses” other than those caused by Broker’s negligence or intentional wrongdoing. Seller acknowledges that individual showings and open houses may be conducted by licensees other than Broker …
Listing brokers should review this language with all sellers. According to the terms and conditions of the listing contract, the seller agrees to prepare the property for showings. This obligation would appear to include securing any pets. The listing also states that the seller agrees to hold the broker harmless for any loss or liability resulting from personal injury occurring during individual showings or open houses unless the broker was negligent or there was intentional wrongdoing. Good communication between the listing and showing brokers would indicate if pets are present at the property and if any precautions need to be taken.
Illustrating a positive exchange, the listing agent called the cooperating agent to tell them, “the hamster got loose this morning and the family could not find where Lightning was before they left for work. So I wanted to let you know that the property is not infested with rodents; it’s just a family member on the lam.” In the event the buyers encountered Lightning, they were prepared.
In contrast, while in the kitchen admiring the space, one of the buyers opened the pantry door and out flew Leopold, the seller’s ferret. Luckily, Leopold scampered off without injury; although the buyers did not fare so well. I am told that any time that a buyer opens an unfamiliar cabinet or door, they do so with great caution. The listing agent did not inform the cooperating agent of Leopold’s presence in the home, let alone a penchant for hanging out in the pantry.
The listing agent should clearly express to the seller that the suggestion of removing the pet from the property or placing the pet in a limited space is as much for the pet’s safety as it is for the prospective buyer’s and agent’s. While a seller assures you that their pet is nice and wouldn’t hurt a fly, you should politely remind the seller that not everyone is comfortable around animals and you want to make sure that their pet is safely secured, allowing buyers to focus on the home and not the pet or the buyers’ personal level of discomfort. Also, remind the seller that the buyers may have children, which could add another layer to the safety concerns for the pet.
Tell the seller that this is as much about protecting your dog, cat, ferret, rabbit, snake, hamster, bird or pot-bellied pig as it is the buyer and cooperating agent. The ability of an open house host to monitor the activities of all guests is limited, especially if the agent is attempting to contain a pet throughout the home. I can personally recall watching a listing agent hosting an open house struggle with holding back the dog while watching the cat to ensure that neither of them made a break for the open door. The listing agent may even be able to persuade the seller to remove the pet all together from the home, and if possible, make sure all the pet’s toys, beds and the like are also put away. If a buyer is not a pet person, they may not be open to seeing a litter box right next to the kitchen island.
There is, however, a movement to promote the pet with the home. One staging blogger recently suggested staging the dog with the home. In her personal experience, she wanted to keep the dogs in the home and not locked up for hours in a small kennel. She dressed the dogs in matching sweaters and contained them in the laundry room with a gate. On the gate, she posted s sign with photographs where the dogs communicated their excitement for the prospective buyers to see the home and apologize if they were a little noisy due to the excitement. For more on this go to http://styledstagedsold.blogs.realtor.org/2012/03/26/not-sure-what-to-do-with-the-household-pet-stage-the-dog/.
However the listing agent and seller decide to work the pet into or out of the home during showings, it is important to be candid and genuine about the concern for the safety of the pet, prospective buyer and cooperating agent.
Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.
Published: June 06, 2012
Some Points About Points
Some Points About Points
One of the more frequent topics discussed between loan officers and borrowers center around discount points.
“What are points?”
“Should I pay points?”
“What about NO points?”
And so on…
So today, I decided to give you some information and some things to consider:
Some Points About Points
One of the more frequent topics discussed between loan officers and borrowers center around discount points.
“What are points?”
“Should I pay points?”
“What about NO points?”
And so on…
So today, I decided to give you some information and some things to consider:
- First, a definition- Discount Points are pre-paid interest that allows a borrower to lower their interest rate on monies borrowed. Because points are prepaid interest and mortgage interest is tax deductible, points are tax deductible in full in the year you pay them when you use the proceeds of the loan to purchase a home. (Consult your accountant for rules concerning points on refinances.)
- As an example, paying a point (one point is equal to one percent of the loan amount) may lower the rate on your 30 year mortgage .25%. To give some practical numbers to it:
- On $100,000 loan, one point would be $1000.00.
- The difference in your monthly payment from a 4% rate to a 3.75% rate on a 30 year fixed rate loan would be $14 ($478 vs $464).
- Are you better off spending $1000 today to save $14 a month? It will take you nearly 6 years to make your money back. For most, it’s easier to find $14 a month than to save $1000. On the other hand, if you expect to have this loan for 30 years, your $1000 expense will wind up saving you over $5000.
- Next, talk to your loan officer about ACTUAL prices. The old guideline of 1 point for .25% in rate doesn’t hold true every day or at every price point or at different times of the month or year. Mortgages are bundled together and sold in packages called MBSs (Mortgage Backed Securities). These MBSs often are bought and sold before there are loans to fill them up. A given company may have projected (and committed to deliver) a certain volume of loans at a particular rate. To attract these loans as their deadlines approach, they may offer a “deal”. There are times when a lender can make more money selling a 3.75% Note than a 3.875% Note because of other commitments. Ask your LO the different costs (in points) you would have with different rates. Then, calculate the time needed to recoup the monies.
- Often, I have advised clients closing toward the end of the year to pay points because they can “get back” a good portion of the cost quickly if they file their tax returns early. The theory is you can spend $1000 and get the benefit of it but, after your refund, maybe you really only spent $750.
- Many deals today are structured with seller’s concessions wherein the seller (as an inducement to get you to buy their home) offers to pay all or some of your closing costs. At time of contract signing, there is an estimation of what that will be. Whether your contract says a flat dollar amount or a percentage, there is often a few extra dollars available at time of closing. A few days before closing, you should ask your LO for a more accurate number because you may have a few bucks the seller can pay to secure you a lower rate. If you don’t do it, the seller just walks away with more money than they agreed to.
- Also, you can pay non-round numbers in points to achieve your objectives. It is not unusual to see loans today with 1.045 points or.781 points. For the lender, it’s about the yield that arises from the combination of rate and points.
- Lastly, points can work in reverse. Rather than paying them, you can “create” them for your own use. That is really what a lender-paid closing costs loan is. You pay a higher rate so the lender can then sell that loan for more money. The lender then makes the additional money available to you to spend on closing costs.
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