Let's start out by making a few preliminary statements before we get going here:

As a result, laws have been created to govern and control the business, the process, and the results of the sale.

As a highly experienced RealtorÒ, Dan Bouchard can keep you on track and guide you through the hurdles of your obligations, liabilities, rights, and entitlements.

Client is a legally defined, contractural relationship. A customer is any person who does business with a service provider wherein there is no signed contracturally defined relationship. In other words, it is the difference between a real estate agent who works for you and is obbligated to you with certain loyalties, OR A real estate agent who works for the opposing party, but who may be processing your transaction without being bound by contract or law to look out for your best interest. Doesn't sound like a very desirable situation does it?

Brokerages: Companies that Real Estate agents affiliate themselves with.

Agent: A generic term for a state licensed Real Estate Practitioner who employ him/her self as representative of buyers and/or sellers in a transaction.

Realtor®: Registered trademark term for members of the National Association of Realtors which promise by their membership, to subscribe to certain ethical standards.

Agency: defines the relationships that Real Estate Agents find themselves in when transacting Real Estate with the various parties.

Listing Agent: Is legally obligated to give due diligence, loyalty, and confidence only to the seller.

Buyers Agent: Is legally obligated to give due diligence, loyalty, and confidence only to the buyer.

Dual agent: combine the two elements together and are entrusted to be completely neutral in all respects. Dual agency is illegal in most states and is sometimes considered to be a disservice to the respective clients as they are not as effectively advised as they would otherwise be.

Buyer agency: Means finding a RealtorÒ you can trust and have confidence in him/her. A  Buyer Agency Agreement signed by you and the RealtorÒ for a specific short duration, as early as possible in your home search process. This is an exclusive relationship and you should never try to work with more than one agent at a time. It isn't fair to them and is unproductive for you.

For the most part, RealtorsÒ do not receive a salary for their services and only get paid once there is a successfully completed transaction. Therefore whenever a RealtorÒ begins working with you, he/she is investing time energy and certain resources in you in anticipation of making a profit eventually. Similarly, you are investing your confidence and trust in them to get you your resulting objective.

Unlike some other RealtorsÒ, Dan Bouchard does not charge an additional fee to his buyer in order for them to become his clients. Therefore Dan must be very selective in only working with committed, serious, fully qualified buyers who have a current pre-approval from a reputable mortgage lender and who retain realistic expectations of what the real estate market can offer them in the metro DC area.

Your Buyer agency should initially be for a relatively short period of time, perhaps 2 weeks or so, if additional time becomes necessary, it is always easy to amend or extend the duration. Why commit to an extended Buyer Agency only to discover that your agent is not working out for you? This agreement is usually an exclusive agreement so do not try to burn your candle from both ends by having several agents working for you at the same time.

We had friends who bought a home and their experience was excruciatingly painful. The seller was out to get them, the Listing agent was impossible and the Buyers agent let things get out of control and didn’t know how to regain control. They ended up in the condo but very unhappy with the process.

Legally binding document that has serious obligations to all parties involved and consequences to the parties should they not complete the terms. There are many variations of home sale contracts available for use today from many resources.

There is always the opportunity to engage a real estate attorney to oversee the process in your interest . Should you have questions concerning legal obligations, rights, and considerations use a competent experienced Real Estate attorney to answer any concerns as the final authority. Dan Bouchard is not a Real Estate attorney.

With this thought in mind however, whether you choose to use an attorney or not for your purposes, No contract can ever be written (whether by an attorney or Realtor®) to anticipate all possible contingencies, and potential problems. But Dan Bouchard’s experience and objectivity will ordinarily be invaluable in attempting to anticipate and/or advise you of the most common risks and minimizing those

At best, any contract agreed to, by parties will reflect reasonable diligence to the party liability, obligation, and penalty and will usually be a compromise position to the same diligence of the opposite party.

We could sit down today and write a contract for purchase of your perfect dream home that would guarantee the world handed to you on a silver platter every evening after a fine 4 course meal served by only the most beautiful servers. Followed by a relaxing massage and a tuck-in, bedtime story every night for the rest of your life. All at bargain basement cost to you.

But, do you think we would ever get the sellers to agree to that?

Likewise, we could do the same with all possible legal, mortgage and other technical contingencies that we can come up with, and write those into a contract. But if it places the opposite party at an unreasonable or unfair disadvantage, they will not agree to those terms, and you will never get to live in that dream home.

The Northern Virginia Assoc of Realtors ® and the Greater Capital Area Association of Realtors ® have developed a “Residential Sales Contract” that tries to balance the protections and securities of the Buyer with those of the seller in the most equitably represented way possible. It is the standard document we use and has opportunity for some specific special arrangements.

Dan uses those opportunities for specific needs that are of particular importance to you. Both buyers and Sellers have opportunity to include and exclude items in the contract as is necessary, keeping in mind however, that adding modifications, contingencies, requirements and stipulations, all contribute to making your offer less attractive with each additional requirement. Therefore it might be wise to balance your needs or desires with strategically eliminating some provisions in order to make your offer more acceptable:

How much do you want This particular home?

How much is it worth to you?

Under what circumstances are acceptable?

Vs.

How badly they want to sell to you? (are they likely to get a better offer, if so how soon? How strong of a buyer vs. you?)

What is their bottom dollar?

Under what terms are they willing to cooperate with the buyer?

Get Loan Pre-Approval BEFORE beginning your Shopping: When multiple offers come in on a property for sale, your offer needs to be as attractive as possible to the seller. Most contract offers written and considered for a purchase will be accompanied by a loan Pre-Approval letter for the buyer from a reputable mortgage lender. The lender you select is also critical. Make sure you are comfortable and confidant with the lender you choose. Rely on recommendations from friends and your Realtor for the best results and terms but make sure you shop your rates and terms before committing a loan package.

Only Minimal Contingencies: Sellers are extremely confidant nowadays and feel they are likely in position to not to want to entertain contracts with loads of contingencies, among these deal killer contingencies is if you have to sell your home before purchasing theirs, your offer stands little chance of being accepted if that is the case. List your home for sale first, and include a contingency that allows you some time to find YOUR new home upon accepting an offer. Other contingencies that might be necessary to waive might include Building Inspection Contingencies.

Commit with a Buyer Agent: The probability of success in finding your home will increase exponentially if you find a good, personally compatible, seasoned RealtorÒ who knows the market, understands your needs, and has the tools and resources to help you find it. A good agent will be able to provide detailed analyses of the property.

The First home purchase is always the most difficult. Fear, uncertainty, not knowing who to trust. Many people are uncomfortable, even fearful, of the process and financial aspects of the largest investments of their lives.

Be sure to have a good relationship with a Realtor Ò and lender you can trust.

Get your Loan Pre-approval in advance.

Consult your tax specialist or personal accountant

Be sure to factor in your savings from rental losses.

When calculating your costs and proceeds always factor in a margin of error and expense of a few thousand dollars. Don’t position yourself to be in a panic crunch at the last minute because you came up short with your expenses/profits. Anything can happen between contract acceptance and closing. Inspections sometimes reveal areas of concern that a seller is unwilling to fix, or the repair costs are higher than expected. Or the interest rates may fluctuate.

Years ago, real estate agents by law, represented the seller only. Buyers had no advocate in the process of buying a home and frequently were left out in the cold alone to fend for themselves. Since then, changes in the law were implemented which provided for buyers to now have unbiased representation by hiring their own RealtorÒ.

Today, savvy buyers like you count on a designated buyers agent to get them the best possible results in their home searching without worrying about. They want their own representation, someone looking out specifically for their interests primarily.

A buyer agent is hired by you and works only for you. Look for an experienced agent who has a diverse background in Residential Real Estate and is eager to provide you the service you will require without sending you out to fend off the wolves on your own.

Though a seller’s agent (or listing agent) has a duty to treat all buyers fairly, remember that he/she is working for the owner - not for you. So be sure to have your own dedicated agent working for you from the start of the home search process.

Anything that you reveal about your needs and desires is between you and your buyer agent. The agent cannot and will not disclose any private information about you to the seller, but will keep your interests first and disclose every bit of information possible to you to inform your decisions.

Dan Bouchard Does not charge any additional fees to his buyer agency clients. His entire commission comes from the listing agent commission in most transactions.

The combination of various fees associated with the buying or selling of a home are called “closing costs“. Certain fees are automatically assigned to either the buyer or the seller.

Curb appeal

When you're preparing your home for sale, remember that the first impression is the most important. It can be the deciding factor whether they even want to go inside for a look.

Frequently, half of all houses are sold before the buyers even get out of their cars. Listen to your realtor when they give you constructive advice. The words you hear may seem harsh, but they are only the words that your prospective buyers will utter as well. Similarly these words will likely be the difference between the writing of an offer and the dismissal of your home in their consideration, or their diminished valuation of what your home is worth.

Would the flaws you see in your property prevent you from buying the home again? How many buyers might be turned off by what they see in your home given it’s price?

Clutter

Try to clear away the clutter and have your home in pristine condition before clean putting it on the market. If you are planning on moving, get rid of the clutter now, put it away in boxes and store away from the property if necessary so that your house will appear larger. Make more space.

 

Odors

Odors must be eliminated especially if you have dogs, cats, or young children in diapers or if you are a smoker. Believe it or not your home has your distinct household odor attached to it. You probably can’t smell it because you are in it all the time but others do and rarely will ever tell you about it. Ask your realtor to be objective about this and follow the instructions they give you without cutting those corners. ODORS are a major subconscious deciding factor for many buyers. Don't take offense if your agent confronts you about odor problems they are only being as objective as a prospective buyer will be.

Cleanliness

Sellers lose thousands of dollars because they do not adequately clean. If your house is squeaky clean, you will be able to sell your home faster and net hundreds, if not thousands of dollars more.

Showings

Don’t try to be in the home to show or explain your home to prospective buyers. The best way to have your home shown is to provide a comfortable environment for the buyer to examine and study your home with ease and concentration.

Many agents will not even show a home if the keys are not readily available by lockbox and showing instructions are easy and minimal. The best strategy for successful sale of your home is to make it as easy as possible for as many buyers as possible to see it is a quick and short timeframe. Allow showings between 8am-9pm 7 days a week.

Keep all lights on

Keep all drapes and shutters open

Keep all doors unlocked

Eliminate clutter

Allow a buyer’s agent to do their job without you there. Over-anxious buyers and sellers reveal too much personal info to opposing parties and diminish their negotiating leverage in doing so. Frequently without even realizing they have done so.

A sellers presence in a home during a buyer showing usually is counter-productive in convincing a buyer to write a good contract.

Most potential buyers feel more comfortable if they can speak freely to their agent without the owners being present. The buyer needs to be able to look thoroughly and focus on contemplating your home rather than to be distracted with trying to be cordial, polite, and guarded with you present.

Most sellers don’t put a lot of thought in their moving transition and then get pressured into a corner at the last minute when all of their options and plans come together wrong. Don’t make the common mistake of trying to schedule back to back real estate settlement transactions.

Nothing is more stressful than trying to move out of a home and move into another property within the same week, let alone the same day. Compound those factors with the necessity to transfer ownership on within that time frame.

Owner's Responsibility

Moving companies accept no liability for your mechanical, electronics, computers, office equipment, electrical equipment and appliances and whether or not they are properly serviced for shipping. For safety, have these items serviced by a properly trained technician. This service may be performed by a technician of your choice or by qualified personnel of the moving company

Estimate of Moving Costs

Unless you have been given a binding estimate from a corporate relocation plan with your employer, where a firm cost is established in advance, you will find that most moving companies will not give you an exact cost of a move until after the shipment has been loaded on the van and weighed. The weight on which charges are based is calculated by weighing the van before and after loading. The total cost of the move will include transportation charges, any charges for declared valuation, plus charges for any extra services performed at your request

Consider also that the first and last few days of the month are extra busy. If you plan to sell your house, make sure to structure the contract so that you have a gap of at least two weeks between moving out of the old and settling on the new properties.

Subscribe to the area's local community newspapers prior to moving. Become acclimated to the neighborhood, its issues, concerns, and developments.

Pro-rations

At the closing, certain costs are often prorated (or distributed) between buyer and seller. The most common pro-rations are for property taxes, condo or homeowner association fees, or rents in multifamily dwellings. If you settle on the purchase or sale of a property in the middle of the month, you should only owe the share of expenses which reflect the time you owned the property.

will credit the buyers for half the taxes at closing.

Determining down payment amount for the most part should not be of concern to prospective sellers. “As long as the money is green”, a seller should not care how the buyers lender structures the down payment amount.

The down payment amount should be decided on with the mortgage lender given the terms of any specific loan. Ask your Realtor for his/her advice. Also ask your financial advisor to learn all the pros and cons of different amounts.

The down payment is a percentage of the purchase price of the home, and varies depending on the loan type.

Generally, The more you put down the better the loan terms and rates. Usually the typical down payment is 20%, but there are also loan programs that allow 15%, 10%, 5%, 3% and even 0% down in many cases with good credit terms.

U.S. Government financing programs, such as those offered by the Dept. of Veterans Affairs (VA) or the Federal Housing Administration (FHA), also require minimal down payments.

The greatest factor in selling a property at the right price is establishing the right price from the start.

Many buyers and sellers are under the misconception that the sale price of a home must be at or below a certain % of the list price.

What price a property sells for has much more to do with how accurately priced it was listed for to begin with given market supply and demand.

If an overzealous listing agent and/or owner allows the property to be listed higher than the supply and demand will allow given the properties amenities, the property will remain on the market for a long time.

If a property is priced too low to begin with the seller will become short changed and the buyer will get a lucky deal.

The goal then is calculating the expected sale price accurately from the start, while coming up with a successful strategy for accomplishing that goal.

Establishing a list price that is too high can be as bad as if it were too low. Even over-pricing by a few thousand dollars could mean that your house will not sell

The instinctive reaction for most buyers who see a property that is priced to high, is to simply “blow it off” and not bother writing an offer. If the listing price is too high, you'll miss out on a percentage of buyers looking in the price range where your home should be.

This is the flaw in thinking that you'll always have the opportunity to accept a lower offer. Chances are the offers won't even come in, because the buyers who would be most interested in your home have been scared off by the price and aren't even taking the time to look.

By the time the price is corrected, you've already lost exposure to a large group of potential buyers. It is very important to price your property at a competitive market value right when you list it.

Paint & Carpet Factor .

Decent paint and good carpet or flooring condition is part of basic maintenance. Installing new carpet, refinishing floors, and repainting is part of routine maintenance and in reality should NOT be considered a home improvement. If you fail to keep these finishes kept up then you must expect to face diminished property value as a result.

Don't think that buyers have more money than you have to replace carpet. They don't. They will simply buy another property elsewhere with better finishes.

Front Yard Factor .

Your front yard immediately implies the inside condition of your home to the buyer. A creative tasteful inviting yard, can set the right mood for a prospective home buyer. Keep the trees, shrubs, grass trimmed frequently so the house can be desirably seen from the street. Walkways should be repaired and cleaned. Clean away debris. Remove abandoned or unsightly cars and other possessions. This all adds to curb appeal. If a buyer doesn't like the outside, they may not stop to see the inside.

What kind of home insurance should I get? Copyright 1999 Inman News Features

A standard homeowners policy protects against fire, lightning, wind, storms, hail, explosions, riots, aircraft wrecks, vehicle crashes, smoke, vandalism, theft, breaking glass, falling objects, weight of snow or sleet, collapsing buildings, freezing of plumbing fixtures, electrical damage and water damage from plumbing, heating or air conditioning systems, according to the Insurance Information Institute, a Washington, D.C.-based nonprofit group for the insurance industry.

Such policies are "all-risk" policies, which cover everything except earthquakes, floods, war and nuclear accidents.

A basic policy can be expanded to include additional coverage, such as for floods and earthquakes and even workers' compensation for servants or contractors. Home-based business-coverage, an increasingly popular rider, does not cover liability associated with the business.

Insurance experts recommend that homeowners obtain insurance equal to the full replacement value of the home. On a 2,000-square-foot home, for example, if the replacement cost is $80 per square foot, the house should be insured for at least $160,000.

For personal items, homeowners can increase their coverage beyond the depreciated value of items such as televisions or furniture by purchasing .

Many people are uncomfortable, even fearful, of the financial aspects of what is probably the largest purchase they will ever make. Jackie Von Schlegel's background as a mortgage banker has given her an expert understanding of everything from financing options to calculating your mortgage costs to the details of settlements. If getting you into the home you want requires a little "creativity", count on our team to be the most innovative advisors in the business.

What are COOPS?

For information on co-operative housing, contact the National Association of Housing Cooperatives, 1614 King St., Alexandria, VA 22314; (703) 549-5201.

 

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