Negotiation

So, we've made an offer to purchase, now we are in negotiations, assuming the seller countered your offer rather than accepting it as is. This is where your realtor is of great value. The buyer doesn't have to go through this process alone. Your realtor will work with the seller's real estate agent. The seller will say a price and terms to the buyer. I'm keeping it simple here. I really mean the seller's agent and the buyer's agent. The agent then contacts her client for an answer. Legally, a counter is a rejection of the buyer's offer. Legally the buyer can now walk away. But in practice, most buyer's counter back. If buyer and seller come to terms, a legal contract is signed. This is the offer to purchase. In Massachusetts, this offer becomes the binding agreement if, down the road, the buyer and seller (via their attorney) can't come to an understanding on the purchase and sale agreement. That's why I recommend to my clients that they get their real estate attorney involved in this process before a home is found. That way the attorney can be working on the purchase and sale agreement at the same time the finance agent is arranging financing and the same time the buyer is looking for a home to purchase.

If a buyer does all these things in advance, they are far ahead of the game. Many sellers want buyers to be pre-approved financially before the seller will even allow the buyer to view their home. I have lived in many states in the United States. Never before have I seen sellers decline to allow buyers to enter their homes. But in Massachusetts, this is sometimes the case, so be prepared. Get your financing and attorney in place at the same time you are looking for property. I am not an attorney. Always seek expert help if you don't understand legal issues.

Offer to Purchase

So, you've found a home you'd like to purchase. How much do you offer? Your realtor will be able to give you guidance here, provided she is not also representing the seller. Your realtor will have seen many homes in the area. She will know if the home price is right or not. But in the end, only you must make the decision on what to offer. Many sellers place a high value on their homes. They will be insulted if you offer too little. This is especially true if the home is already priced right. If your offer is way too low, the seller will often not even answer your offer. By guidance, I do not mean legal advice. I mean examples of what's happened in past negotiations and results of that experience. In other words, your agent will share experience, not legal advice. I am not a lawyer.

On the other hand, if the home is perfect for you, and you must have this home, then offer within 5% of full price. If the home is overpriced, and you are not firm in needing that home over many others in the area, then offer less. Unfortunately, sellers in this area seem to rather over-price their home and let it sit forever before they'll lower the price by more than $10,000. And in this market, many home prices need to be lowered much more than that amount.

Tip: If your realtor represents both you and the seller, ask for someone else in the office to assist you in negotiating the price. Then once an agreement is reached, you can then go back to working with your original realtor. Prudential Sawicki is a designated agency office, so we have the ability to do this for our clients. A smaller office would not be able to provide this service.

Simplicity

If I'm buying a home, what is the process? 1. contact me 2. meet in person to discuss your needs and wants and dreams 3. Learn how much home you can afford. You do this by getting pre-approved with a lender, unless you are paying cash (ask me for a recommendation) 4. Find a neighborhood. If you don't know the neighborhood that feels right to you, let me help. This is where meeting in person comes in. I'll learn a lot from getting to know you. That's where my knowledge of local neighborhoods goes to work for you. 5. Once you find a home, I'll help you negotiate the offer with the sellers. After that, the process is simple because I'll be there for you every step of the way.

Belchertown For Sale By Owner

Seven weeks ago I toured a beautiful home in Belchertown, off Allen Road, that was (and still is) for sale by owner. It is owned by a nice young man who is in the Air Force at Westover Air Reserve Base. I feel for him. Too bad he just doesn't realize the odds are stacked against his ever selling his home himself. The days where homes sell themselves are past, for the moment at least. I left him my card and sent him a note the other day. I know I can help him, my challenge now is to help him come to the same realization.

Shutesbury

Shutesbury is a tiny hilltown, above Amherst, on the west side of MA-202, on the west side of the Quabbin reservoir. I held an open house in Shutesbury the other day, on Wendell Road. What a beautiful home. Here are the stats: Four bedroom, 2.5 bathrooms, large living room, dining room, family room, unfinished basement, two-car garage, wood siding exterior, large deck off the large eat-in kitchen, three-season screened porch, cathedral ceilings upstairs with skylights, wood floors, granite kitchen counters, alarm system, smooth ceilings (not cottage cheese) and one acre wooded lot; Architectural detail galore; And a pond. All for $399,000! Would this be the perfect home for you? This home has been on the market for 14 days, so get it while its hot.

Feelings

Real estate is about feelings. Does your realtor say "How do you like this?" and then not even listen to your answers? Don't put up with treatment like that! The most important part about looking for a home (after getting financially pre-approved so you know the amount you can afford) is location. You need to find a location before you can find a home to buy. If you know just where you want to buy, that's great! It will save tons of time. But if you aren't sure, be sure your realtor shows you three homes in three different locations. This will enable you to get a feel for location. We all feel comfortable differently. I'm not talking race, color, age, gender or religion. No, I'm talking about style. To some, living in an up-scale location is more important than top school districts or large yards. To others, living in a location with people who keep themselves physically fit and like to dress accordingly, is where they want to live. But for some, space and safe schools and large yards are top priority. Only you know what works for you. But you will know what works for you when you see it, even if you can't explain it to your realtor. I'm not talking about steering*.

I'm talking about feelings. People know what they want. They just don't always know how to find it. Sometimes, they know, but are embarassed to say it to their agent. Say it! A realtor's only desire is to find her client the perfect home. Often, that perfect home is more about feelings than the home having three bedrooms and two bathrooms. Maybe you want to live where the neighbors drive only American cars? Maybe you want a place where you can have a home-office and know that your neighbors also have home offices? These are the questions your realtor might not ask. But if you want to be shown the right homes, tell these things to your realtor. She needs to know this to find you the right neighborhood.

*Steering is where a real estate agent (not a realtor, because a realtor would not do this, it violates our ethics) take certain legal classes of clients to certain neighborhoods because the agent feels that's where the client'll be happiest, because these neighborhoods are full of people the agent feels are like their client.

Ground Contamination

How do I know if the home I want to buy has ground contamination? Your senses will be your first clue. Do you see depressions in the ground? Do you see an air or intake mechanism sticking up out of the ground? Do you smell oil or other smells that don't seem right? Did the location used to be a dry cleaners/service station/repair shop/tanner? These would all be my first hint that maybe an expert should be called to check this out. I used to work for the U.S. Environmental Protection Agency in San Francisco, back in the days when they had the Superfund. I've also taken legal classes, though I'm not a lawyer. The courts have held that once you own property, you are responsible. So once you accept title to a property you will be held accountable for any contamination. If you want to try to get reimbursed from the person who owned the property before you, you must do so via the courts. In other words, get the soil tested, and the results known before closing. Or better yet, find a different property to buy!

On the other hand, if you already own a contaminaged property and need another parking lot, buy the contaminated land next door. Be sure the price is right. You may be in for huge expenses if the area becomes the next environmental clean up site.

So far I've heard of possible ground contamination on properties in Hadley, Wendell and Athol. Two are untested, so the seller is not obligated to disclose contamination. As far as the seller is concerned, there is no contamination known (only rumored by neighbors) and therefore the seller "doesn't know" and doesn't have to disclose what he doesn't know. Buyer beware! A small expense up front to test the soil could prevent a financial disaster if a contaminated property is purchased. The costs of cleaning up a contaminated property could be ruinous financially.