Goodwill Games

Here is an important reminder when negotiating on the sale of a home, whether you are the buyer or the seller. Over the past 25 years of selling homes in and around the lake country area I have discovered that price, terms, inclusions and closing date are not always the final factor in a successful transaction. Goodwill, the ultimate in intangibles has a lot to do with what the final price of a home might be.

Let me give you an illustration. Recently I was working with the buyer to purchase a nice home. The buyer wrote a good offer but not at a price that the seller liked. It was well within the parameters of a normal first offer, but lower than what the seller liked. The seller decided to ignore the good offer. Because they had other showings they thought that surely someone else would offer a higher price and they could disregard the only offer that was on the table. Well sure enough no one else made an offer, the deadline passed and the buyer was offended with no reply. Nadda, zilch, nothing. The deal never came together.

Then the buyer told me that had the seller responded in a timely fashion, the buyer would have certainly paid more than their initial offer. The seller still sits with an unsold home while the buyer has moved on to a different property. Goodwill was lost with the buyer because the seller chose to ignore the offer.

If I can encourage you when selling or buying to keep the Goodwill alive, you will be more successful buying and selling your home.

Looking Back and Forward

Back in February we expected to hear more about a settlement between the bigger banks and the AG's of most of the states. Due to the "Robo-Signing" some homeowners were wrongfully displaced from their homes. Foreclosures came to an abrupt stop while the mess was sorted out.

When we look at the the numbers nationally regarding predictions for the Real Estate market it is similar to a national weather forecast. But what about our area? In April a Settlement was reached and the foreclosure process began picking up speed.

In February Waukesha County was averaging about 50 homes sold per month at Sheriff's Sale. Today the number is closer to 120 per month. This number fluctuates each week but the overall trend is upwards with distressed sales. Who is buying all these homes? The banks. The first mortgage holder is generally the purchaser of the home and it may take that bank 6 months before the home comes back on the market. We still have a window of opportunity in the market right now.

Many future sellers I talk to today are under the impression that next year the market will be back. What they mean is home prices will be appreciating and the mess will be over. Based on the foreclosure activity it seems like we might be in for a little more distress. But the good news is we are moving our way out of the mess with more sales.

Homes that are wheelchair accessible

Finding just the right home is often a challenge. Location, amenities, bedrooms, floor plan are all conditions of choosing the right home. Now add to the list wheelchair accessible and the list suddenly gets very small. Wider hallways and doorways are beginning points.

How about access to the home from the garage and the front door? In our area typically there are two steps into the house from the garage and front door. This is not exactly wheelchair friendly. Once inside the home other factors to consider are the following: wider hallways, wheelchair counters, showers with a turn radius for a wheelchair, roll-in showers, elevators for homes with multiple levels, garages that will accommodate vans with lift gates, and the list goes on. How do I make my home wheelchair accessible?  The link provides some practical steps you can take to accommodate your home. If you are looking for a home in the greater lake country area that is wheelchair accessible ask your Realtor for assistance. You can also visit this link Hartland Home for a home that is wheelchair accessible with an elevator, roll-around shower, wheelchair counters and more. I also have a condo in Merton with a 3.5 car garage and "No-Step" entry from the garage and front door.

Tips to Buying a Relocation Home

Urban legends abound with regards to purchasing a home from a Relocation company or from a seller who is being relocated. Myth #1 I can steal this house because a corporation owns it. Nothing could be further from the truth. relocation companies spend a great deal of time obtaining the right price for a home. Most if not all firms have three local real estate opinions on value. These are the people who routinely sell in a specific area and have local knowledge. Myth #2: I am taking my chances on the condition of the home because the home is being sold through a relocation company.  Just the opposite is true! The amount of tests, inspections and work orders that a relocation company requires of the home owner is far beyond a typical sale. In addition many relocation companies offer a radon warranty. They provide the option of a long term radon test conducted over weeks (most non-relo sales are done over 3 days) and in the event that the long term test shows higher radon levels the relocation company will install a mitigation system at their cost. Myth#3 If the seller accepts my offer before the relocation company accepts my offer I could lose out to another higher offer. Generally speaking in my experience this is false. Once the seller has verbally accepted the offer and as the relocation company works through their due diligence, they will not sell the house to a higher bidder.

One complaint that many buyers have with relocation companies is the length of time for approval of an offer. While this is a valid concern-- a buyer who is prepared for this ahead of time can deal with the slowness easier if they understand that this is part and parcel of these types of transactions. This is our job as Realtors to help the buyer's understand how a relocation transaction progresses through their system.