Category Archives: Actual Experiences

Generic Real Estate Legal Forms

Did you know that many of the cheap flat fee mls companies use cheap forms?

If you hook up with a company that sells you cheap legal forms because they were $100 cheaper, you are going to pay a lot more for your attorney for the simple fact that he/she is not familiar with them. Stick to LOCAL FORMS ! It makes the whole process easier!!!

And did you know that you will pay through the nose when your deal gets to your attorney because he/she has to reinvent the wheel?  Every MLS has different forms even in the same state.  Don’t make your attorney think- use local real estate forms!!!!

Don’t go with a national company and have to buy cheap real estate legal forms, Go with List2Move.com since the infrastructure was built with you in mind and get FREE Local Real Estate Legal Forms!!

List2Move.com was started in Rochester, NY with the belief that if you gave the FSBO all the tools, including all the LOCAL LEGAL FORMS available to the local professionals, they could compete with the professionals for their equity!

Hey Bob, you’re missing the boat!!!

Dear Bob,

I saw the article about your sale in the NY Times this morning.  Dude you are totally missing the boat.  Love the effort but you are wasting your time and money!

I get it, you are in it on principle, but you are spinning your wheels in a big way.  Brokers know this too, so they are just waiting in the wings for you to cave.  Why? Because they know if you stay the course, it’s not a matter of when you are going to list but whom your going to list with.

So let’s get this straight;  you’ve got money to burn (that’s cool), you went to school with Bill Clinton (very cool), and you have this big ass house that you are trying to sell yourself (super cool).  But you wanted to employ romance while selling the house?  Something is totally out of whack here… Continue reading

Flat Fee MLS in Rochester NY

List2Move.com has been doing Flat Fee MLS in Rochester NY now for over 7 years and their business philosophy hasn’t changed from day one;

“if you give homeowners the same tools as the professionals, they will succeed.”

When we started years ago there was only one other company doing flat fee and they were doing it for over a thousand dollars.  We hit the market using technology and the Internet and at a fraction of their cost we put them out of business.  We developed systems to eliminate the middlemen in the equation which equates to big savings.

The founder of List2Move.com delivered a talk to the the NYS Bar on New Business Models in real estate in 2006. Continue reading

Exactly what you shouldn’t post

Let’s face it not all Sell by Owners are Advertising Executives, but some of the things that get posted on Craig’s List really outrageous!

How about this one for starters….

IMPORTANT: If you respond to this ad requesting more information, please give me some details about who you are, where you live, and what your specific housing interests are. There are simply too many spammers on Craiglist for me to reply to everyone who sends me a response like, “Could you send me some more pictures.”

Isn’t this a little odd?  An “Important” notice to buyers with requirements?  Really?  This certainly wouldn’t sit well with me if I were hunting for a home.

No phone number, No Name to call or email and No Address for the property.  Not sure we get it.

Don’t Confuse a Repair with an Improvement

We get these questions all the time.  Should I replace windows, roofs, garage doors etc… My response is usually, “if it is not broken, don’t rebuild the house!”  For Sale by Owners should always use common sense!  If the window is broken you can replace the glass but you don’t have to replace the fixture.

 

From Investopedia.com.

Unfortunately, not all home expenses are treated equally for the purpose of determining your home’s basis [for tax purposes]. The IRS considers repairs to be part and parcel of home ownership –something that preserves the home’s original value but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn’t care — you did get a discount on the purchase price because of those unmade repairs, after all. It’s only improvements, like replacing the roof or adding central air conditioning, which will help decrease your future tax bill when you sell your home. For gray areas (like remodeling your bathroom because you had to bust open the wall to repair some old, failed plumbing), consult IRS Publication 530 and/or your accountant.

Negotiation beyond the Engineers Inspection

Can a buyer negotiate after signing off on the engineers inspection?

 

Not really…. unless you let them.

 

We just had this happen to one of our Rochester NY For Sale By Owner clients.  The buyer signed off on the engineers inspection, then right before closing they threatened not to close unless the seller agreed to fix something which would have cost the sellers 5 thousand dollars.   We suggested they talk to their attorney, and ask him about suing for what they call…..”Specific Performance.”  Specific Performance basically means that in this case, the buyer would be forced by the court to buy the sellers home.

 

Long story short, the sellers did talk with their attorney and they closed two weeks ago, without having to pay for the repair!  Don’t let buyers push you around, talk to your attorney about any legal questions.

Earnest Money Control

Yesterday I got a call from one of our Rochester, NY For Sale By Owner clients.  He was asking questions about the earnest deposit money that a buyer “traditionally” puts into an escrow account.

He had a situation where there was a buried oil tank on the property and the buyer didn’t want to go through with the purchase, except the buyer had already signed off on the engineers inspection.

So to make a long story short the buyer wants the seller to pay the $4-5K to remove and replace the tank and the seller doesn’t want to nor feels it is part of the contractual agreement.  Chances are the buyer will walk (but could also be in breach of contract) but what happens to the $10k sitting in the escrow account?

First of all, earnest money (Earnest Money) is NEGOTIATED up front!  Where it is kept it is spelled out in the purchase and sale contract!!!!!  Sellers should always take delivery of the down payment and it should be sitting in your attorney’s escrow account! You ask why?  Control You want to have control of that money for situations like this.

In this case the money is sitting in the buyers agent’s escrow, and even though the sellers would have to sign a release for the buyers to get it back, control of the money could be 9/10ths of the law…

1. Always review the contract with us before you sign it.

2. Always have your attorney look at your purchase and sale contract before you sign it!

3. Always make sure you have control over the escrow monies!

Adding the commission to the purchase price

This could be a first. Could times actually be changing?

I got a call this evening from one of our newer listings who had an offer brought in by a real estate agent.  This agent obviously saw in the MLS (database) that our client was only offering $1.00 (one dollar).  But to the agent’s credit, she didn’t moan and groan about how the seller has to pay her commissions. Instead she counseled her buyers, explained the situation and wrote the commission into the offer.  This is called being a PROFESSIONAL.  She was upfront and honest with all parties involved!

 

So we talked about the offer, and it was legit.  Good price, good closing date, good time for financing etc, so basically, it was a “clean” offer.  But I could tell the seller was interested in the win/win her and for this agent.  They weren’t quite at their price and the agent wanted her 3% commission.  The answer to me was simple, just add the cost of the commission to the price that the seller wanted in a counter offer.   I explained that this is done all the time when buyers need help in the form of seller concessions.  The client went on to explain that the agent was very “nice” and accommodating and that she had communicated several time since she brought the buyers in.  And before we ended our conversation, I got the feeling that the sellers liked this agent and maybe they weren’t going to counter with the full 3%.

 

We are going to find out sooner than later, but if I were to guess…I am thinking the sellers are going to counter less then the full cost of the commission and pay it.

 

What about grouping your showings?

I was talking to one of our clients this afternoon and she was concerned because she had a showing set up tomorrow at 5:15pm and another agent had just pushed his way in the door at the same time.

At first I could understood her concern, but after a second to process this, I thought it was great!  It brought back memories of me showing my apartments across town to perspective tenants all at 6pm so I didn’t have to make a million trips.  What happened, if they all showed up on time, was a competitive feeding frenzy.  Tenants competing for my rental apartment.  I loved it.  Still do it today.

Years ago I helped my brother in-law sell his home in Irondequoit.  I remember pricing it high for even a good market.  When we had our first Open House, there were lots of buyers in the house at the same time, so jokingly I told them we were looking at offers at 7pm.  Sure enough, we had two offers that night.  It was a scramble.  The first offer was at list price and the second was 5K over.

Hmmm, wonder which one we accepted.  This is more psychological than anything else but guess what?  It works, sometimes.  Think about it.

Real Estate Rebate Check Cut in Pittsford, NY-Just Smart

Last month we cut our first rebate check of  the year!  Buyer bought a $265,000 home and got a sweet rebate check of $3975.00 after closing!

Not something you see everyday!  A real estate broker coming to your door with a check for thousands of dollars!

These people worked the system so well on both ends of the deal that they saved over $10,000 in commissions easily!

If you are buying, you are going to a lot of the work yourself so why not get paid to do it?  It is about savings, it is about keeping your money, it is about being smart.