Tips for First Time Home Buyers in a HOT Market: Get a Home Inspection

A headline in a April 2018 St Paul Pioneer Press article reads, "White Bear Lake Man Believes Old Batteries Robbed him of Health and Home". The foundation of his 1939 built lake home and surrounding retaining walls around the property were constructed using emptied out battery casings filled with concrete. 

White Bear is  a community where I have sold many homes, and this situation is highly toxic. While this issue was not apparent to him when he purchased decades ago, it was to a local home inspector who actually mentioned the very home in another article about why get a home inspection. 

This is not only a very sad story and unbelievable situation, this is a reminder of why buying  a FSBO (For Sale By Owner) can be costly. The form for a home disclosure in Minnesota wasn't as comprehensive as it is today. A homeowner could get an inspection but not all buyers did. Which is happening again today.

Because of the low housing inventory and extremely high demand for existing single family homes buyers, who are often desperate for their opportunity to own a house, take short cuts. This is not a wise decision. As an professional REALTOR®, it is my job to make certain my home buyers have contingencies in place for the opportunity to have one (or more) professional inspectors comprehensively view the home before moving forward on with their purchase. 

Inspectors cannot see everything but do guide home buyers on where to look further if necessary. In the White Bear home the basement was unfinished and the battery casings complete visible when this family purchased. While this is a very unusual circumstance, home inspectors do uncover many issues that help home buyers make good informed decisions. 

I always encourage a thorough top to bottom home inspection to my home buyers. Buying a home is one time where cutting corners does not make sense--even in a hot seller's market!

READY to Make YOUR Move? It IS essential to have a knowledgeable agent at your side. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of BOARDMAN Realty, a call at 651-336-7073 or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
 
Copyright 2018 terieckholm.com

Crockpot cooking is easy—Real Estate Should be too!

I don’t like to cook and I especially don’t like to clean up a bunch of pans or dishes after making a meal. So recently, almost all of my cooking has been in a slow cooker. I put ingredients in the morning and 6-8 hours later we are eating chili, chicken with carrots or even homemade soup.  And cleaning up is a breeze too with only one pot to wash. I like making my life simple. 

Buying or Selling a home is simple too

I know there are dozens of websites out there that help the average person to do-it-themselves. You can be a FSBO seller (For Sale By Owner) or a BUBBA (Buyer unrepresented by a Buyer’s Agent) but why? As an experienced REALTOR®, it is my job to make my client’s life easier. I scrutinize comparables, I obtain information from other agents and city/county administrators on properties, I set up closings, I market properties, I recommend stagers, inspectors and loan officers. I wear many hats to help make my clients' lives easier. 

I have time to do this…because I don’t spend a lot of time cooking!

Need to know more about buying or selling a Twin Cities home? Let me be your professional guide. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of Boardman Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2015 www.terieckholm.com

Revisiting the Idea of BUBBA--The Opposite of FSBO

Buying as a BUBBA is down in 2007 though still higher than FSBO. What is a BUBBA you say? It is a Buyer Unrepresented by a Buyer’s Agent. In 2006, almost a quarter of all buyers’ were BUBBAs. In 2007, according to the National Association of REALTORS® 2007 Profile of Home Buyers and Sellers, that percentage has dropped to 16%. Is this possibly due to all of the short sales and foreclosures that started appearing across the country at that time and buyers felt a NEED for the services of a knowledgeable professional? Maybe…I wonder if the number will drop again when NAR’s 2008 survey comes out in November.

At any rate…Buying as a BUBBA is still happening at a higher rate than FSBO (16% vs. 10%). As the real estate market becomes more complicated, professional assistance is more critical than ever when buying a home. Here’s my original post from back in March 2007, where I explained the BUBBA acronym in detail….Enjoy!

****************************************************************************************************************BUBBA—The Flipside of FSBO
Originally posted 3/9/07 by Teri L. Eckholm

Most people, whether in the real estate industry or not, have heard of the FSBO--A For Sale By Owner seller. The acronym has been used for quite awhile as there has always been a segment of the market that chose to sell their home directly to a new buyer. But, there's a new acronym being used by REALTORS® these days--BUBBA or Buyers Unrepresented By a Buyer's Agent. It is making it's way into the real estate agent vocabulary because this market segment is growing.

In 2006, according to the National Association of REALTORS® 2006 Profile of Home Buyers and Sellers, nearly a quarter of all sales (23%) were BUBBAs. Although many of these home buyers did work directly with a builder or at a sheriff's foreclosure sale, 9% purchased directly from the home seller.

The internet is probably the most contributing factor to the growth of this buying segment. Buyers are certainly more educated--shopping on-line for as many as 6 months prior to making their house purchase. The homes are listed on the web. There are guides as to how to purchase a home. The whole process is less mysterious and seemingly simple that many self-educated buyers are foregoing working with a REALTOR®.

Are You Considering BUBBA? Before you move forward unrepresented, here are a few things to consider.

BUBBA can cost more. Buyer's representation does NOT cost anything. But being represented can save thousands. When you sign a contract for buyer representation, your agent owes specific fiduciary duties to you to work in YOUR best interest. They are required to keep your information confidential. A REALTOR® does this as a profession, not once every 10 years like most buyers. They are experienced in negotiating a deal on a home that is in your best interest.
So how does a buyer's agent get paid? Every home listed in the MLS states a commission agreed upon by the seller with his agent to be paid to the buyer's agent of the particular home. Yes, the seller pays the fee for you to your agent.

But this does raise the question, "If I buy directly from the seller and he doesn't pay a commission, won't I get a better price?"

Probably not. Think about it this way, the seller set the price in the first place. If he is not working with an agent, how can you be certain that you received a good price on the home? And why would a seller, who doesn't know you, give you the savings he intended to pocket by not hiring an agent.

In this buyer's market, with so many different homes to choose from, it is easy to be overwhelmed in the purchasing process. So you just wander into a FSBO open house and the seller has an amazing charismatic personality. He is very slick and used a three year old refinancing appraisal to set his price. Is it a good deal?--Probably not.

Buying a home is not as simple as walking into a discount store for a new computer...And that process can be overwhelming. There are details to a purchase that many home buyers just don't anticipate. How old is the roof? When can we take possession after closing? Is the septic system in compliance with current state and local statues or does it require replacement? Are there encroachments, like a neighboring fence or driveway sharing issues? Are there assessments pending and who will pay for them?

All of these are situations an experienced Realtor will try to anticipate and resolve in writing as the transaction moves toward the closing.

Some people are accidental BUBBAS. They start out in a "learning" stage...That time period of six months to years where they are "dreaming" of a new home but don't want to commit to a REALTOR® or be pressured into a contract. They wander into an open house and it "is" their dream home. Since they didn't have an agent when they first came in, they feel uncomfortable informing the seller that they want representation and just move forward without one.

As a REALTOR®, I try to coach potential clients into developing a relationship with an agent early in the process. If you want to see a home, contact that agent and sign a contract for a specific house. That way your interests would be represented, if the house is perfect for your family. But you would not be locked into a 6 month contract, if you are not ready to make a decision.
Before becoming part of this growing trend in home purchasing, do research and carefully consider your options. You may be giving up more than you think to when making the one of the most important financial decisions of your life.


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Don't be a BUBBA! If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008 terieckholm.com