I occasionally get offers on my listings that are ridiculously low.  Almost always, the offer is accompanied with the phrase, “This is a cash offer” as if those are magic words which are expected to mysteriously wipe out any brains a seller may have. 

Like, ” ‘Abra Ka Dabra’ you are now so stupid you will never realize that you are giving up $150,000 of your net worth for no good reason.”

It is true that cash offers can be more tempting because it means that there are no lenders to muddy the deal, probably the number one reason most transactions fall through.   But, I have yet to see it give any of my sellers that “deer caught in the headlights” reaction. 

One listing I had got an offer that was $289,000 less than our asking price.   The offer came in as, “this is a cash offer” and my seller said, with a few explicatives, “Why do I care if they are paying cash or not?  Once it closes, I have my cash regardless.”   

I have had several offers in the last 6 months on several of my listings.  They have been between $50,000 to $90,000 below the asking price.  Not one of my sellers was even slightly tempted, not in the least bit.  I had a buyer that made an offer that was $29,000 below the listed price.  That seller did not accept our offer and that buyer is still looking for a home. 

The state of Utah is planning to make changes to the Real Estate Purchase Contract (the REPC).  I attended a public hearing Wednesday about the proposed changes.  It was very interesting to me and even though I gave up much of my day…my birthday, I am happy I went. 

There are some proposed changes that seem to be very good and other changes that I disagree with.  The comments expressed at the meeting by different people in this industry seemed to show some of the same concerns that I have had and it was good to hear all sides of the story. 

My greatest concern is the removal of section 10.2 which is essentially a warranty from the seller that certain systems in the home will be in working order and fit for their intended purpose on the day of possession.  Things like the roof and foundation are expected not to leak, the electrical, plumbing, heating cooling, appliances and fireplaces are expected to be working when the buyer takes possession and if there is a problem, the seller must fix it or offer to sell “as-is” up front.   With the removal of this warranty, the term,
“Buyer Beware” will become more important than ever. 

There are very few states that still offer this warranty in the REPC so, I guess the thinking is, and I hate to sound like a mother, but:  “Everyone else is jumping off a cliff, does that mean we have to too”?  

Other concerns are pretty minor but still annoying.  One change is to require the CC&Rs to be included with the disclosures.  I already write-in under the disclosure section that “CC&Rs if any”  be included.  It is important that they be included but sometimes that just is not possible.  Sometimes, an HOA is so unorganized that no one has a copy of the CC&Rs anymore.  

I do not like that the negotiation period for repairs is going to be removed making it easier for buyers to cancel the contract rather than work out an acceptable solution.  There is no longer going to be a “Loan Denial Deadline“.  They plan to add an option that buyers can make an offer without Earnest money…once the offer is accepted, then there is an ambiguous ”4 day period after acceptance“…so how does a seller know the money was received? and when does it get reported as ”under contract”? 

Warning!  Extremely personal opinion ahead!

Overall, my biggest pet peave is the removal of the explanations of remedies and procedures.  I know the contract.  I read the contract regularly and if a problem comes up, I know where to go in the contract to find the solution to the problem.  Currently, even with it spelled out in the contract, I, ridiculously and too often,  must argue with other agents about how to proceed.  I have had to go over the acting agent’s heads and talk to their brokers about contract default and correct procedures more times than I should ever have to.   I have even had to argue with brokers about their misunderstanding of the contract…

No! Let me correct that: about their failure to have ever read the contract that they are binding their clients to on a regular basis.

So, by removing all the explanations of remedies and procedures, I dread the Pandora”s Box that is going to open.  I think the reasoning behind this specific change is that there are too many agents out there that maybe should not be.  By dumbing down the contract, it makes it easier for these agents to continue to practice ineptly for longer periods of time. 

Have you seen my articles in the Utah Valley Magazine?  I am excited about this new feature.  I hope you will read them.  I will be writing articles related to real estate, at least through the end of the year.  I would appreciate it if you could give me some feedback.  Especially, ideas on what to write about.  Thanks

The latest issue cover:

Utah law requires that a real estate agent have a written agreement of representation. 

           6.1.11. Failure to have written agency agreement. To avoid
           representing more than one party without the informed
           consent of all parties, principal brokers and licensees
           acting on their behalf shall have written agency 
           agreements with their principals. (clients)
           The failure to define an agency relationship in writing
           will be considered unprofessional conduct and grounds
           for disciplinary action by the Division.

Getting a signed contract is easy when the agent represents the seller.  A seller wants/demands a mutual contract to spell out the terms of representation, the professional fees, etc.   

I have found though, that it is not as easy for buyers to be committed to that written agreement.  I sometimes start to feel that buyers dont want any help from agents except to unlock the door so that they can see a property.  Most buyers drive around looking for homes on their own, searching the internet for homes, on their own, then if they find an interesting home, they call the listing agent to see it.  

If they like the home and want to make an offer, then they ask the listing agent to help them write up an offer.  This is crazy.  I have written other blog posts on this issue.   Buyer’s Agent, Have Your Own

There are certain responsibilites that an agent has when a representation agreement is entered into.  I hope that explaining these fiduciary duties might alleviate some of the concerns that these buyers may have about entering into such an agreement.

          6.2.15. Fiduciary Duties. A principal broker and licensees acting on his behalf
          owe the following fiduciary duties to the principal:

          6.2.15.2. Duties of a buyer’s or lessee agent. A principal broker and licensees
          acting on his behalf who act solely on behalf of the buyer or lessee owe the buyer
          or lessee the following fiduciary duties:   ( I am going to remove the word “lessee”
          from this point since I am talking about buyers.)

               (a) Loyalty, which obligates the agent to act in the best interest of the
               buyer instead of all other interests, including the agent’s own;

               (b) Obedience, which obligates the agent to obey all lawful instructions
               from the buyer;

               (c) Full Disclosure, which obligates the agent to tell the buyer,
               all material information which the agent learns about the property or the
               seller’s or lessor’s ability to perform his obligations;

               (d) Confidentiality, which prohibits the agent from disclosing any information
               given to the agent by the buyer which would likely weaken the buyer’s bargaining
               position if it were known, unless the agent has permission from the buyer to disclose
               the information. This duty does not permit the agent to misrepresent, either
               affirmatively or by omission, the buyer’s financial condition or ability to perform;

               (e) Reasonable care and diligence;

               (f) Holding safe and accounting for all money or property entrusted to the agent; and

               (g) Any additional duties created by the agency agreement.

It really is in your best interest as a buyer to find your own agent right up front.  Traditionally, agents were needed to help find properties.  Now with the internet, buyers are finding properties on their own more and more.  It is when you find the home you want to make an offer on that it is important for you to have a professional on your side.   Buying a home is an involved process.  REALTORS® are experienced with the ups and downs of the process, they understand the problems that can arise during escrow and can help you navigate through the obstacles.    

As of July 7, 2008

There are 5215 active listings in Utah County
1144 listings sold during the last 90 days
735 sold in the last 60 days
321 sold in the last 30 days

59 of those were over 0,000

2208 active listings expired in the last 90 days
628 listings were under contract in the last 90 days
566 listings were under contract in the last 60 days
412 listings were under contract in the last 30 days

456 were under 200,000
429 were between 200-300,000
149 were between 300-400,000
63   were between 400-500,000
26   were between 500-600,000
18   were between 600-700,000
7     were between 700-800,000
4     were between 800-900,000
1     were between 900-1,000,000
3     were over 1,000,000

New Listings by Price:
60 under 119,000
339 between 120-159,999
289–160-179,999
753–180-219,999
693–220-279,999
963–280-349,999
701–350–499,999
530–over 500,000

The average days on the market is 76 days

The average list price is 265,720 while the average sales price is 260,425 which means the Sales Price to List Price ratio is 98%  …  not anywhere near as bad as the media reports. 

Please feel free to email or call me if you would like information that I have not provided. 

Have you ever noticed that you can walk into some homes and they just feel good while other homes, even though they are decorated nicely, just don’t make you feel the way you did in a home like the first one described?

Feng Shui is not a new idea but it has gained popularity in our Western culture over the past few years. My impression is that some take Feng Shui to an almost “religious” level. I don’t get into it that much but I have learned to agree with some of the basic principles of Feng Shui as far as decorating/arranging items in a home is concerned. Several of the agents in my office have taken the time to learn a few things about Feng Shui as added training we can use to enhance our services to our clients in preparing their homes for sale.

 The principle behind Feng Shui concerning home decorating has to do with placing objects in a manner so that the positive “Qi” can flow freely through the home. This is something to take into consideration in our everyday lives. If we feel good about our surroundings, we feel good about life.  Incorporating Feng Shui into your home’s decor  when it is time to stage your home for sale can give you and edge over your competition. 

Feng Shui is very indepth and there is too much to it for me to begin to cover it adequately.  I am in no way an expert on this subject, but I wanted to touch on a few ideas concerning color and how it can affect our lives and our moods in our homes.

The color Green is nature, it is an earth tone. Green words are:  Freshness, growth, peace, comfort, soothing, and balance.  Green can be restful and energizing.  Too much green can be depressing and is associated with selfishness, laziness, and jealousy.

Red is bold and is considered to induce feelings of wealth and happiness. Red is associated with “fire”.  Red words are:  bright, luck, strength, joy, motivation, happiness, and love.  Too much red is believed to generate anger, fear, and agitation.  Red is best used as accents in an otherwise subdued room. 

Yellow is associated wtih warmth, motion, friendliness, good luck, joy, wisdom, optimism, insight, creativity, light, flexibility, and cheerfulness.  Yellow accentuates natural light which can brighten the soul.  In excess, yellow can be overstimulating and irritating and is associated with cowardice and prejudice. 

 Orange  is believed to strengthen concentration and give you a sense of purpose.  Orange words are creativity, inspiration, purpose, organization, optimism, confidence, happiness, ambition, energy, and activity.  Too much Orange is believed to enhance nervousness and restlessness. 

Black symbolizes money and income, and is considered great for careers, hence, it is a good color to use in an office.  Combined with metal, it becomes even stronger for business.  Black words are emotional protection, power, introspection, absorbant, silent, dramatic, powerful,   Black is also associated with death and grief, mystery and the unknown.  Excessive black is overwhelming, draining energy and vitality.

White  is considered purity.  Poise, confidence, calm, harmony, truth, spiritualilty, and divine knowledge are associated with White.  Overdone, it can feel unfriendly, unapproachable, and sterile.  White can also mean a lack of imagination in home decorating.

Violet is associated with spiritual awareness.  Intuition, wisdom, dignity, spiritual awareness, prosperity, aspiration, and motive to do good.  Purple has been considered regal or royal.   The down side of purple is snobbery and prejudice.

Pink  hues signify spiritual completeness, self-respect and awareness,  and a sense of contentment.  Pink is a symbol of self-respect and self-awareness.   Too much can be mentally draining.

Brown is stable and balancing and can create a sense of security.  In excess, it can inhibit vitality.  

Each color affects us in different ways, each stimulating a different response.  The way each color is used in a home can also affect us.  If an office has too much blue which is a dreamy color, it can inhibit production.   Toning down or playing up colors in your home can help the way you or your home feels and functions.  

Have you noticed how many homes have a red front door?  Whether these homeowners knew anything about Feng Shui or not, something about a red door makes people happy.  Red is considered to induce happiness, love and wealth, all things most of us want in our homes.  However, if you have a bright red door and you feel overwhelmed as if your personal time is hard to manage, some consider that the bright red is encouraging the high energy and overstimulation.  You may want to try a more subdued red to experiment if that will calm things down a bit.  You may even want to try a more tranquil blue. 

Feng Shui suggests that we might use warm colors in the living room, dining room and kitchen.  Cool colors in bedrooms, bathrooms, and rooms where you might tend to meditate.  Neutral or earth colors are best used in transitional areas such as an entryway or hallway.  Neutral, earth colors have a unifying influence and can be used anywhere. 

Color is only one aspect of Feng Shui but it can be a place to start if you want to bring more balance into your home.   People that have a natural knack for decorating may have no training of Feng Shui but they unknowingly sense the basic principles.  I think that Feng Shui developed as more of an observance than an art.  Someone in the beginning just noticed that some homes have a more positive energy and promote happiness, calm, good health, etc. while other homes seemed negative, chaotic and depressing. 

If you are planning to sell your home, you may want to consider what type of energy your home is emitting.