Friday, January 11, 2008

More Costs to Plan for When Purchasing a Property
Apart form the Stamp Duties, legal fees and various searches that you may need to do, there are yet more costs to factor in to your budget when purchasing a property. This may seem like bad news, yet they are there for your protection and could save you much more money down the track.
Two of these are building and pest inspections. Many contracts are signed with an added clause about these two inspections. You don't want to go to all the trouble and expense of purchasing your dream property only to discover that it is riddled with termites, or structurally unsound. Much better to pay for the advice of specialists to assure you that all is well – or not, as the case may be. At least if you find out that it's not, you'll have a legal way of cancelling the contract.
A property Valuation by an independent party will also give you peace of mind that you have not paid more than the fair market value for your property. The bank will probably do one before they approve the loan, but that is not usually made available to the purchaser.
Last but not least is the cost of your mortgage insurance. This may not apply to you, but if you have less than 80% of the purchase price, the bank will want to be insured just in case the worst happens and you can't pay the loan. Hopefully, this won't happen to you.
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The Tragedy Of Termites
There is a statement used locally, by Realtors and pest control companies alike, that there are basically three types of termites: termites you had; termites you have; and termites you're going to have. Unbeknown st to many North Scottsdale homeowners, there are scores of termite colonies, which have invaded, or are about to invade, their homes.... maybe YOUR home!
Let's take a look at some termite facts:
1) Locally, we have subterranean termites; they live in colonies underground, from which they build tunnels in search of food. They are dependent on moisture for survival, so they cannot live inside the wood frame of your home. They build mud tubes, primarily along foundation walls, from the ground up.
2) One in twenty homes are infested each year by termites.
3) Concrete foundations are not a deterrent. Termites only need a crack of 1/64 inch in the slab floor to invade your home.
4) On average, there could be as many as 13 to 14 termite colonies, 1 million in each colony, per acre of land. A typical home may easily have three to four colonies situated under or around it.

What can YOU do to reduce the risk of termite attack on your home?
1) Eliminate wood contact with the ground. Wood elements should be at least six inches above ground level. Make sure the soil around your home is graded properly, away from the foundation.
2) Don't allow moisture to accumulate near the foundation. Divert water away from the foundation. Check faucets, water pipes and air conditioning units for leakage and repair immediately.
3) Do not store firewood, lumber or other wood debris against the foundation or within any crawl spaces. These materials attract termites and are a source of food.
3) Do not store cardboard / corrugated boxes on the floor of your garage.
Probably one of the most common things we are all "guilty" of, these boxes provide tasty havens for scores of termites. If necessary, construct shelving in your garage to store your boxes and cartons.

If you had a home built, which was landscaped after you moved in and was never re-treated, the chemical barrier was probably broken, and the home is very vulnerable to termite infestation. The best advice is to consider having your home treated by a professional pest control firm, such as Burns, Orkin, Terminix, etc. Although you can take certain action to make your home less attractive to termites, the best way to prevent infestation is to treat the soil around and beneath the building with a termiticide.
Preventively treating a home for termites is a reasonable investment, especially if the structure has had no prior history of treatment. If a pest control firm previously treated the building, it's a good idea to maintain the warranty by paying the annual renewal fee. Should termites re infest the building (which is a definite possibility), the company will return and re-treat the affected area at no charge.
As the adage goes, "An ounce of prevention... may protect YOUR home from termites!
Bob Nachman is a REALTOR® specializing in Arizona real estate. Bob has extensive training in the world of real estate and is dedicated to providing customers with an elite level of service and information. For more info on Arizona homes and properties contact Bob soon at Bob@MoveToArizonaHomes.com


Buyer-Broker Exclusive Agreements
Visualize this... you're lying in bed late one night, thinking about what you accomplished that day. You took a new buyer, a couple and their two children, out to look at some resale homes in the morning and early afternoon. After you dropped them back at the office, you headed over to the title company to.. wait a second... let's go back... you dropped them back at the office - as panic starts to set in, you wonder ... what if... "no"... they were a nice couple... but... what if... what if they went back to that area they really liked, and went into that new home complex, and signed in with the builder you really don't care for? What if... what if they went back to that For Sale By Owner (FSBO) home that was down the block from one of the listings you showed, (the one you turned down another street to avoid passing?) What if... what if, tomorrow, while you're at another client's home inspection, the couple and their children go into an "open house" they see, like the home, and "strike a deal" with the listing agent? What if...?
Did this "visualization" cause you any anxiety? Can you relate to the emotions evoked from this "fictitious" scenario? Chances are, you said yes to one, if not both! Good news! You can do something to alleviate these anxieties and fears. It's called the Buyer-Broker Exclusive Employment Agreement. Wait...a few of you...maybe even most of you... just said, "I don't use that," or "I would never sign that myself; how can I make my client sign that?"
Let me ask you a question. Let's say you go to a listing appointment, and agree on terms/pricing. Would you go back to your office, order full-color flyers, arrange for a virtual home tour on the Internet, order an ad in Homes and Land, call in line ads for your local newspaper, put the home on office tour, set up an "open house" schedule, send out "Just Listed" cards to the homes surrounding the listing, etc., without a listing agreement? Of course not! Then why would you spend dozens of hours of your time (the equivalent of spending your money), with a buyer, without a Buyer-Broker Agreement (which is basically the same as "listing" your buyer?
If you're asking, "Well, how do I get them to sign it?", I will tell you that it's all in the approach. You can't "fear" the agreement, or you will never be able to present it, let alone ask anyone to sign it. Try sitting down with your client, after you get them pre-approved, and before you show them any homes. Conduct a buyer counseling session with them, discussing all facets of the home-buying process. In the course of your presentation, present the Agency Agreement and Buyer-Broker agreement, then set it aside until the end of your discussion. After you have developed rapport, and a confidence/comfort level, you can re-introduce the agreements, and ask for their signatures.
No, it's not always as easy as it sounds! Many consumers have never been exposed to the Buyer-Broker agreement, and ask why other Realtors have never asked them to sign it. I usually say that it is similar to signing a listing agreement to market their home; this is a "listing" agreement to help them purchase a home. I go on to explain that most Realtors give "customer service", while I give "client service", which is on a much higher plane of care and commitment to them, their needs and objectives.
Another objection I get occasionally is the client saying they will work with me in finding a resale home, but not a new home. I explain to them they will not be paying any more for my services on a new home; the builder/developer pays my compensation, and I am able to represent them (the client) exclusively, in the transaction. If the prospective client continues to hedge, I explain that since I can help them with resale or new, we must commit our allegiance to each other fully, or not at all. Don't hesitate to "walk away" from these "customers". You can't lose what you don't have!
One final point: practice your Buyer-Broker presentation, as you would your listing presentation. Try it out on an associate in your office, or record it on a video camera and/or on an audio tape. The more comfortable you get with the approach and presentation, the more relaxed your prospective client will be!

Just remember... it's just like listing a home!
Bob Nachman is a REALTOR� specializing in Arizona real estate. Bob has extensive training in the world of real estate and is dedicated to providing customers with an elite level of service and information. For more info on Arizona homes and properties contact Bob soon at Bob@MoveToArizonaHomes.com