A Tale of Two Houses

I‘ve been working with buyers who, for six months, have been patiently waiting for bank approval on a short sale contract. Finally last week, the approval came! The Seller’s lender gave a written OK for the transaction to go forward at “x” price and terms. Needless to say the buyers were both relieved and excited, as this was their dream home. We immediately proceeded to order the appraisal and home inspection. And what happened next was like a kick in the stomach…….Chinese Drywall :(

The presence of Chinese Drywall in a home is perhaps the most devastating news for a homeowner or buyer to hear. A roof can be replaced, bad plumbing can be fixed, and even a faulty foundation can be strengthened. But in many cases the presence of Chinese Drywall requires a complete gutting of the property down to the exterior walls and roof. Now granted I’m no expert, but I’ve just received a crash course; read on my friends...

Upon discovery of this bad news, I immediately set up an appointment for the buyer to see another property that I was almost ready to bring to market just a block away from the first one. Upon entering the home, and having learned about the Chinese Drywall just 20 minutes before, we proceeded to look in the air conditioning closet and could not believe what we were looking at…………evidence of Chinese Drywall!!!

Here are some tell-tale signs to look out for:
• Corrosion of a/c coils (black in color)
• Corrosion of electrical wiring
• Failing electronic equipment (computers, TV’s, washing machines, etc.)
• Rusting doorknobs and hinges
• Corrosion of plumbing

To learn more about Chinese Drywall, possible health issues, and remediation you can visit www.chinesedrywall.com

back to the future?

I’ve been having a text conversation with a potential home seller for about the possibility of bringing a prospective buyer to see their property. The conversation has progressed to the point that I now have a scheduled appointment to bring that buyer to tour the property in the near future. Just this morning I received a text from the owner that essentially said this, “Bring me an offer for ‘x’ amount, no low-ball offers!”

To which I replied, “ I can bring you an offer for that amount if you can supply the 1.21 gigowatts of power required to transport us all back in time to the year 2006”. Now, I’m not quite sure how that went over on the other end, but I still have an appointment for this Saturday. I’m confident that all will be fine…

The 200,000 mile machine

It’s not every day that you see a car with 200,000 miles. As a matter of fact, most people would cringe at the thought of driving a vehicle with such high mileage. But I know the owner of this one, and he wears it like a badge of honor! He makes the point that many years ago he stopped paying for this car, and it, in return, started paying him, through lower insurance rates, and by the mere fact that the car was paid off.

As the dust is beginning to settle on what will be undoubtedly be looked back upon as one of the most tumultuous times in real estate history, many may find themselves contemplating what decisions, actions, or pro active measures they would have taken, had they known then, that the unprecedented rise in real estate prices would eventually come to a screeching halt. While the 200,000 mile machine is just a car, this owner’s example and experience can really be applied to the ownership of real estate. He started with a quality product, maintained it meticulously, and probably most important; when the inevitable urge came to trade-in or trade-up, subsequently creating more debt, he simply resisted. Now it might seem odd for a Realtor to be championing the idea of buying a property, and holding onto it for an extended period of time. After all, we real estate professionals derive our income from the buying and selling of others. Yet a conservative posture such as this is just what the doctor ordered in today’s real estate environment. This is not to say that the case is not overwhelmingly strong in favor of buying real estate today; inventory is plentiful, prices are attractive, and interest rates are at historical lows. In short, the next time you’re thinking about buying a home, think about the 200,000 mile machine…

Psst………….I love my car!