Who buys the house you left behind?

June 30th, 2007

A few times, and for some reason most, most recently, we have had to walk away after a home inspection.  Every time this happens, the buyer wants to do something to warn the buyer behind them.  Every time this happens, the buyer wants to stand outside with a big red flag saying, “Don’t buy this one unless you know about X”!  And every time the buyer is amazed that the house sells, often within a few days, at full price or close to it.

One: house with rotted rafters 

After all new energy efficient windows and brand new siding with lots of insulation the house could no longer “breathe”.  All of the moisture in the air, being trapped up in the attic, caused all of the wood to be thick black mold and rot.  Worst thing was, there was a brand new roof, a second shingle placed on top of the first and on top of the rotted rafters.

From the seller’s perspective it was “NEW ROOF”; from our perspective it was “ROTTED RAFTER HOUSE”. 

Since the agent and seller just kept answering the rotted rafter question with “It’s a new roof”, we just walked away.

Two: rain water IN the house

We had been questioning the method of water drainage since before the offer was written.  Driveway slopes down.  Standing water in the drain at the bottom near the garage door.  Seller working to unclog it was the answer.

Home Inspection comes and we go inside and there is water in the house.  Now water in the house is HUGE here, as the big two car garage has to fill to 2-3 inches, before the water can make it into the living areas.

Many inappropriate responses.  When the seller answers inappropriately, there is almost no way to resolve an issue  as the seller doesn’t agree that it IS an issue.  When the agent simply acts as a courier pigeon, and keeps repeating the unsatisfactory response as if saying it ten times will make it sink in, we just have to walk away. 

Saying “It doesn’t usually rain this much” ten times is NOT the answer to there is water in the house.

Three: House falling down cliff

I love this one.  Foundation shows ten patches to keep the house from falling down into Lake Sammamish.  Seller knows nothing about foundation problems so we look at the Form 17.  Nothing about the foundation patches.  Seller says someone must have patched it ten times while he lived there, without his knowledge.  Not a problem.  Never was a problem.  Has no idea who might have applied the band-aid fixes to the “not problem” LOL

Four: LaBrea Tar Pit house

Another foundation issue.  This one over in Queen Anne, but much like the roof problem in number one, new stacked on top of problem.  The entire main and second floor were spectacular.  Massive remodel.  Well over $100,000 in improvements.  This is definitely the best house until we go to the basement.  My God, I felt like I as visiting the LaBrea Tar Pits.  I had never seen a basement floor with so many cracks and rises and falls.  It looked like an earthquake aftermath down there.  Scared me, and I don’t scare easily. 

Agent response:  New foundation poured all the way around existing foundation and remodeled main and second floors laid on top of NEW foundation.  OK.  Call inspector.  ONLY ONE CORNER of foundation is new and the rest was a bunch of band aids about to pop off.  Call agent and tell him only one corner is new.  Oddly enough, he is not at all surprised.  I ask if he has the paperwork from when the new foundation was poured.  Once in a while an inspector is incorrect.  Answer:  “the seller’s attorney advised them not to release the engineers report regarding the foundation.”  Yikes!  Run!

Important to note, agent’s demeanor throughout and up to that point was “Seller wants NO contingencies.  Seller wants loan contingency to expire in 10 days.  Seller wants this and that.  Yes the sale fell apart once already, BUT it fell apart on financing (right…best lie in the business.  Pulling out on the finance contingency might have been the METHOD of cancel, but not the reason.  Watch that one.)  Big agent, very busy, very hoighty toighty.  Pushing everything through in command mode LOL.  Command mode is fun to encounter.  Makes you look even harder for why he’s pushing everything in the wrong direction in such an aggressive manner.

So Who Buys The Houses We Leave Behind?  The buyers always want to know how the house sells at full price or almost full price behind them when they leave.  They want to go find the new buyer and tell them what they found out about the house.

I don’t have an answer for that one.  Maybe someone else does.  Oh, Craig will say “Give me the addresses so I can help the new owner sue”.  Or maybe we should go write it on Zillow pointing out that someone got taken.  Morally it may seem appropriate to warn the next buyer, but that is up to the seller and the seller’s agent.  That brings up the subject of another topic:  WHY is the inspection report not required, and almost always not given, to the seller if the sale falls apart on inspection.  Seems like it is so that the seller can click off “Don’t Know” on the Seller Disclosure Form.

If we are really focusing on getting real estate transactions lifted above the status quo, the contract should REQUIRE that the buyer give the seller the FULL inspection when it is available.  In fact why don’t inspectors automatically give a copy of the report to ALL parties?  Shouldn’t the seller be fully advised of what is wrong with the house when the buyer cancels on inspection?  Seems the form favors sellers vs. the next buyer coming down the pike.

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Buy For $10 Million, Sell For $33 Million?

June 30th, 2007

Filed under: Estates


How's this for an investment? Newsday reports that investor Chris Knight bought Shorewood Manor a 7.5 acre waterfront property in Shelter Island, New York for $10 million in March and has now re-listed the property at $33 million. Apparently the reason for this ultimate act of real estate optimism is an appraisal that Knight received for securing the loan on the estate that gave the value as being estimated at between $1.25 million to $4 million per acre.

The estate seems to be a tear down waiting to happen, the Victorian manor on the property, though charming, is not exactly modern. In fact, the previous owner, a former governor of New York had been given permission to raze the home. The grounds are the perfect for a mogul's dream home however offering absolutely beautiful views. According to Albert Hammond, chairman of the Shelter Island assessor's office Knight's $10-million purchase is to date the highest anyone has paid for Shelter Island property making $33 million seem like true pie-in-the-sky dreaming. The listing is here with a few more exterior pics and one interior shot.
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Buy For $10 Million, Sell For $33 Million?

June 30th, 2007

Filed under: Estates


How's this for an investment? Newsday reports that investor Chris Knight bought Shorewood Manor a 7.5 acre waterfront property in Shelter Island, New York for $10 million in March and has now re-listed the property at $33 million. Apparently the reason for this ultimate act of real estate optimism is an appraisal that Knight received for securing the loan on the estate that gave the value as being estimated at between $1.25 million to $4 million per acre.

The estate seems to be a tear down waiting to happen, the Victorian manor on the property, though charming, is not exactly modern. In fact, the previous owner, a former governor of New York had been given permission to raze the home. The grounds are the perfect for a mogul's dream home however offering absolutely beautiful views. According to Albert Hammond, chairman of the Shelter Island assessor's office Knight's $10-million purchase is to date the highest anyone has paid for Shelter Island property making $33 million seem like true pie-in-the-sky dreaming. The listing is here with a few more exterior pics and one interior shot.
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Girls? Night Out - Boys Can Come :)

June 30th, 2007

Don’t forget, June 30 at 7 p.m.is Welcome Karen to Seattle Night at:

Roanoke Park Place Tavern

2409 10th Ave. E

Capitol Hill

Kim has some funny stories about when he lived nearby.  Karen, Rhonda, Jillayne, Kim and I will be there.  Not sure who all else.  Post a comment if you know you are coming and we’ll keep an eye out for you.  It’s not a big place.  Not a fancy place.  A neighborhood place.  Just my kind of place.  Seattle attire required…no fancy-shmansy garb :)

See you there. 

 

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Friday?s Rate Sheet

June 29th, 2007

Rates are improved over last week based on stronger than expected economic reports that were released this morning following yesterday’s decision from the FOMC to keep the Prime Rate unchanged at 5.25%. The Core PCE and Chicago PMI came in better than anticipated indicating that inflation may calming down a bit.  Inflation has a negative impact on bonds so the mellow reports translates to improved mortgage rates for you and me. 

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties).  Conforming rate quote below based on owner occupied with minimum credit scores of 680 with an 80% loan to value or lower.  Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.   I’m including how much rates have changed since last Friday’s rate post (in parenthesis).

30 Year Fixed: 6.375% (APR 6.533%).  Payment per $1000 = $6.24 (improved 0.250%).

30 Year Fixed with 10 Year Interest Only:  6.500% (APR 6.667%).  Payment per $1000 = $5.42 (improved 0.250%).

40 Year Fixed:  6.625% (APR 6.789%).  Payment per $1000 = $5.94 (improved 0.125%).

7/1 ARM:  6.125%% (APR 6.281%).  Payment per $1000 = $6.08 (improved 0.125%).

5/1 ARM:  6.000%  (APR 6.144%).  Payment per $1000 = $6.00 (no change).

5/1 ARM with 10 Year Interest Only:  6.125%  (APR 6.270%).  Payment per $1000 = $5.10 (no change).

JUMBO (Non-Conforming) Rates.   Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).   

30 Year Fixed: 6.500% (APR 6.669%).  Payment per $1000 = $6.32. (improved 0.125%).

30 Year Fixed with interest only payments: 6.625% (APR 6.779% ).  Payment per $1000 = $5.52. (improved 0.125%).

40 Year Fixed:  6.625% (APR 6.781 %).  Payment per $1000 = $5.94 (improved 0.125%).

5/1 ARM:  6.000% (APR 6.155%).  Payment per $1000 = $6.00. (improved 0.125%)..

5/1 ARM with 10 Year interest only payments: 6.000% (APR 6.155%).  Payment per $1000 = $5.00.  (improved 0.125%)..

Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR.    This is just a small sample available of rates and products.    For loan amounts over $650,000, please contact me.

Note:  Ardell suggested that we close comments on Friday’s Rates…and so I am giving it a whirl.    The rates are being posted in order to provide information and to give you an idea of the direction mortgage interest rates are going.   By closing the comments, the rates are effectively becoming a memo or “rate sheet”.   So if you do have a comment for me regarding rates or mortgage questions simply contact me by visiting another one of my post or send me an email.

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Carpinteria Deluxe, Estate of the Day

June 29th, 2007

Filed under: Estates


The listings of Suzanne Perkins are always those that inspire daydreams. Last time, we checked out the amazing Terra Bella. Now, this home in Carpinteria, California has a bit of a more contemporary style. The home overlooks the Pacific and has a wide open floor plan with lots of glass showing off the amazing views. The home has five bedrooms including a 1,300-square-foot master suite. The home also includes his and hers library/offices and a state-of-the-art kitchen. Down by the shore there is a beach pavilion for enjoying the water. The home is filled with designer furniture, the sort of pieces that are instantly recognizable giving the home an almost predictable fabulousness. A few days ago, I was admiring a twisted wood table in a high-end furniture store, it was no surprise to see not one but two of those pricey tables used on the beach pavilion. This home is listed at $24 million. After the jump, and of course, there are Warhols.

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Carpinteria Deluxe, Estate of the Day

June 29th, 2007

Filed under: Estates


The listings of Suzanne Perkins are always those that inspire daydreams. Last time, we checked out the amazing Terra Bella. Now, this home in Carpinteria, California has a bit of a more contemporary style. The home overlooks the Pacific and has a wide open floor plan with lots of glass showing off the amazing views. The home has five bedrooms including a 1,300-square-foot master suite. The home also includes his and hers library/offices and a state-of-the-art kitchen. Down by the shore there is a beach pavilion for enjoying the water. The home is filled with designer furniture, the sort of pieces that are instantly recognizable giving the home an almost predictable fabulousness. A few days ago, I was admiring a twisted wood table in a high-end furniture store, it was no surprise to see not one but two of those pricey tables used on the beach pavilion. This home is listed at $24 million. After the jump, and of course, there are Warhols.

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Prince Charles Helps Save Historic House

June 29th, 2007

Filed under: Estates, Celebrity Shopping, Charity


Prince Charles has helped save one of Scotland's most historic estates, the Dumfries House. The Dumfries House in East Ayrshire was designed in the 1750s by John, Robert and James Adam and was known not just for the home itself but for the treasure trove of Chippendale furniture specially made for the home. The home was facing an auction through Christie's on July 12-13 to break up the 2,000-acre estate and the antiques inside. The owner John Bute was selling his family home to concentrate on another estate that he owns on the Isle of Bute. Prince Charles spearheaded the plan to raise £45 million pounds. The organizations involved include The Prince's Charities Foundation, the Scottish government, The Art Fund, the Garfield Weston Foundation, The Monument Trust, the National Heritage Memorial Fund and SAVE Britain's Heritage. The home may be open to the public as soon as next year and will be managed through an independent trust. The Prince's Charities Foundation borrowed a large part of the £45m and there will be continued fundraising to help repay the loan.
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Prince Charles Helps Save Historic House

June 29th, 2007

Filed under: Estates, Celebrity Shopping, Charity


Prince Charles has helped save one of Scotland's most historic estates, the Dumfries House. The Dumfries House in East Ayrshire was designed in the 1750s by John, Robert and James Adam and was known not just for the home itself but for the treasure trove of Chippendale furniture specially made for the home. The home was facing an auction through Christie's on July 12-13 to break up the 2,000-acre estate and the antiques inside. The owner John Bute was selling his family home to concentrate on another estate that he owns on the Isle of Bute. Prince Charles spearheaded the plan to raise £45 million pounds. The organizations involved include The Prince's Charities Foundation, the Scottish government, The Art Fund, the Garfield Weston Foundation, The Monument Trust, the National Heritage Memorial Fund and SAVE Britain's Heritage. The home may be open to the public as soon as next year and will be managed through an independent trust. The Prince's Charities Foundation borrowed a large part of the £45m and there will be continued fundraising to help repay the loan.
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Real Estately on Rails

June 29th, 2007

Looks like our friend Galen has been busy….

In case you haven’t heard, ShackPrices has been rebranded Estately. With a new name, a new logo and a more publicized business model, it appears this old Shack has been retired. Here’s what the ole RE.net blog-o-rama has posted thus far…

Before you all say HouseValues 2.0 or HomeGain SP1, I think the Estately business model seems pretty sound (for a lead generation / referral model).

Galen, correct me if I’m wrong, but I assume by taking a 12% cut of the agent’s commission, Estately only gets revenue if a closed transaction occurs (and the agent gets revenue from your referral)? Also, Estately doesn’t ask you for personal information unless you are actually looking for agent, so you are giving your customers a high quality lead (unlike some other companies that sell leads that resemble a Bart Simpson crank call to Moe’s Tavern). What’s really interesting is that they match agents to potential clients using Wetware (a/k/a humans) and not just some tricked out SQL statement, in order to help guarantee that consumers and agents will have a pleasant and successful transaction.

Galen, couple questions for ya…

  1. Who does your creative work (coming up with name, the logos)? Whoever it is, buy them a beer! A good one like Pyramid or Redhook!
  2. Has anybody submitted any good tag lines yet? (”We put the e in stately”)
  3. How long did it take to change the site name/images/documentation/branding from ShackPrices to Estately? (I remember being a part of product/feature renaming issues in my Microsoft days and it’s surprising how much work a single name change can take…)
  4. What are your expansion plans (I assume dominate the NWMLS service area, go where the winds of the marketplace take you?)
  5. When are you going public again? I think it’s finally time to buy some House Values PUTS

Anyway, I wanted to congratulate Galen and Doug on their hard work and success to date, and wish them well on their future adventures.

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