The story of the share cropper... another Monty-ism

What the heck does THIS have to do with Real Estate?

Well, recently our MLS has stepped up to the plate and calculates months of inventory. Months of inventory refers to this concept: Let’s say today there are 15 months of inventory. That means that if no more homes come on the market, and if sales stay at their current rate, then it will take 15 months to consume the number of homes on the market. Experts have stated that if months of inventory is 6 months or less, we are in a seller’s market. If months of inventory is 6 months or more we are in buyer’s market.

So, assume that months of inventory is showing as 9 months for this market – where you are about to get a listing. The agent, bless his heart, does everything right, is knowledgeable about the market, does all the necessary research, has a bang up marketing program, builds rapport and the seller says – OK Johnny, I would love to list my house with you but I only want to list it for 2 months...

It's the Law .... NOT!

There is no law that says you have to have your septic pumped when you purchase or someone sells.
Here's the thing.

The seller has to disclose (if they use a standard Georgia Association of Realtors contract) when/if his septic was pumped. Based on this information, the buyer decides whether or not to ask for this to be done.

The buyer has a due dilligence (although this is new for the past 2-3 years). Prior to that, the buyer had an inspection period where they could inspect for anything and everything. If a home inspector has reason to believe that there is a problem with a septic system, he might suggest that it be inspected.

Roof Repairs - don't overlook this important maintenance item

This yankee has learned something about roofs from living here in the south. This story starts when a friend of mine (who was born and raised in the south) showed one of my listings and declared that the roof had to be replaced. I said, “What are you talking about, there are no leaks, the shingles aren’t curling it’s just a little stained.” (Staining occurs on a north-facing slope with algae build-up.)

She said, “Yes, but a lot of the granules are washing off.” I said, ”So? That roof is only 12 years old. It has a lot of life left.” She said, “There’s hail damage.” I laughed, “Ha Ha Ha! Where I come from, with New York winters and ice build up, etc., roofs last for ever. Surely a little hail can’t damage a roof...”

Why I need $30,000 more than your suggested price.

Here we are, 2 years into this crummy market and we still run into people who have an “I Need”. What’s that, you say. Well here’s one of many “Monty-isms” to come. (That’s what a friend of mine calls these little bits of wisdom that come rolling out of my husband’s mouth with ease, eloquently and on time.) When he first started using this analogy, I thought it was silly, but it really works.

When we talk with sellers, many times they are surprised by the affect of the market on their home price. We go and talk to them and we do detailed research before the appointment. ( Many agents will use the PFA (plucked from the air) method to pricing. I can’t do that. Since I have an appraisal background (even though it was for only one year, this experience runs deep) I try to do as thorough a job as possible. I don’t like to lie to people and I don’t like to raise false hopes.

Real Estate, a Team Sport

So, let’s pretend that you need an oil change and you go to your local Station and say to the proprietor “listen, my car is supposed to have an oil change every 3,000 miles and I want to do that. But, here’s what I propose ... How about you change the oil, check all the fluids and then, in a couple of months, when I’ve determined that my car is OK and the oil change was right, then maybe I’ll pay you....”

That’s not going to happen...

Actually, in writing this, I can’t think of any professions where you can go in, speak to the professional who will render your needed service, and have him/her perform the service without being paid.

Why you can’t always buy a foreclosure for list price.

Boy oh boy, I wish I had some disposable dollars to invest in some of these deals. Yep, they’re out there.

We’ve seen homes that previously sold for $220,000 sell for $145,000. We’ve seen new construction that was priced at $425,000 and undoubtedly would have sold for that price, sell for $275,000. Wow – there are tons of examples.

Some banks will list the property for what they hope to get. Others list for lower than what they hope to get.