Real Estate is Complicated

The World Has Become Complicated Five broker skill sets which effect buyers and sellers People Laws Institutions Real Estate Properties Technology People skills – Ask questions and listen. If they sound like you know everything, it is probably not true and they have a confidence problem. We have to learn by their mistakes, so arguments may not help. A seller overpriced her property, after I had suggested a lower range. She does not need the money. She increased the price by 25%. Six months later she got down to the top of the price range and one year later it is now priced to sell. She paid property taxes and mortgage payments on a vacant property for one year. The most important question to ask is …. “When do you want the money?” Most likely, I will let you learn by your mistake My two most recent property seller’s did not listen to my suggested asking price. They both increased the asking price to be 10 % higher than the original starting ask price. Then later then reduced the ask price, then again reduced the price a third time. They wasted 6 months of property taxes and maintenance and made the marketing time appear to be stale. Sellers have to get through the emotional stages to have realizations to reduce the price. All of us often learn by experience. It would be nice to listen to experts with more experience. A client should know, like and trust their agent otherwise the client thinks every problem is created by the agent. Ultimately, The market is right. Most importantly, “I don’t always know.” I must admit that sometimes it is hard to determine value, especially on unique properties. You can Not use the county appraisal district value. That is why owner tax payers hire property tax consultants. Here is a list of 24 people that may be involved. Not all of them in each deal. · Buyer · Seller · Buyer agent · Seller agent · Title company · Building inspector · Bug inspector · Mold inspector · Environmental consultant · Hydrostatic plumbing inspector · City inspector · Utility company · Surveyor · 1031 Tax Deferred Exchange 3rd party Intermediary · Commercial mortgage broker · Residential mortgage broker · Property Manager · Real Estate attorney · Insurance agent · Residential appraiser · Commercial appraiser · Residential lender · Owner Association · Sometimes a locksmith Laws, Taxes, Trusts, Legal entities – The world has changed from 25 years ago. I feel like a target. Wish I had gotten a law degree to have more and cheaper ammunition. The real estate residential transaction contracts were 5 pages and are now 9 pages plus 3 addendums with 6 additional pages. The commercial contract is 14 pages plus may 6 additional pages of addendums and amendments…… And each year, the addendums and amendments are changed. The brokerage firms now have added their own docs for their client to sign and for my clients to sign. Some have added an additional seller disclosure document and a final buyer home walk through acknowledgement. I am not supposed to give a legal opinion about any documents which are not promulgated by the Texas Real Estate Commission, but often will discuss those docs and disclose I am not an attorney Do you understand the different types of written contracts and the different parts of each contract. There are more than 150 legal contract forms to understand PLUS Texas Real Estate Commission Texas Association of Realtors Houston Association of Realtors Plus recently the Managers of brokerage forms are requesting the completion of their own broker forms ….. such as a second additional Seller Disclosure form for buyer to sign and a Buyer Home Walk Through form to be signed before closing. Plus Lenders are now requiring their own loan disclosure own forms to be signed by borrowers and sometimes by sellers before closing … such property financial disclosures and environmental di...