Short Sales for Buyers

HOW TO BE SUCCESSFUL IN PURCHASING A HOME THAT IS A SHORT SALE

Mr. Seller goes to his mortgage company(s) and says, “I want to sell, but I don’t have any equity and the house is worth less than the amount I owe you. I need to sell anyway because based on my current circumstances, continuing to keep the home is a serious hardship and I can't hold on, so what do I need to do to get out?”

What the Seller has just done is to ask his lienholders to take a loss when his property is sold, this is called a SHORT SALE. Mortgage companies/lienholders don’t like to take losses (an understatement) and they are going to be resistant to this request from Mr. Seller. However, the current "perfect storm" of poor market conditions has forced them into a position where they may agree to Mr. Seller's short sale as long as it is going to be more favorable to them than going to foreclosure - in time, trouble or money lost.

But, (and there is a big, whopping BUT ...) the mortgage companies reserve the right to approve EVERY term, condition and cost of the sale. So not only are we in a Buyer's Market with lots of inventory to choose from, we have a seller who is virtually powerless in the transaction.

ARE THESE NOT THE PERFECT CONDITIONS FOR BEING A BUYER?!!!

There is another short-seller we should discuss, the reluctant seller. While Mr. Seller above is so very motivated, let’s take the case of the family that is forced to sell thanks to their loan being one of those adjustable rate or combination loans that has adjusted and is now beyond the point of their ability to pay. They have to sell, they are going through the short sale process, but they really aren’t motivated. Why? Because they have to move. And where are they going to move? Depending on their situation their credit may be less than stellar because of late payments and the short sale itself may show as a delinquency on their credit report. Who will rent to them?

Let’s say you get into a home to view it and you love it and want to put in an offer. You can do very well by buying a short sale house, but there are some things you need to know about this process. This is the point at which you need to put aside everything you have learned about the sequence of how a home is sold. Here's how you should go about it:

1. GET TO KNOW ALL YOU CAN ABOUT THE HOME.

You are advised by your buyer's agent that this home, typical of most short sales, is being sold "As Is" (see my blog post, "What does 'As Is' Mean?", for more detailed information on this legal term). The seller might provide you with a seller's disclosure of property condition if you're lucky, but that's about all you'll get. They may or may not have pulled permits for upgrades or work done on the house - you'll need to investigate. They definitely will not negotiate issues you uncover during a home/pest/lead paint/radon/mold/septic inspection. Do you spend money to have inspections done or wait for the bank's response? My advice, wait, but be prepared to move forward very quickly once you hear back from the bank.

Also if the property is a condominium or governed by a home owner’s association, your bank/mortgage company will most likely require a full set of condominium documents, meeting minutes, recorded deeds, occupancy rates, tenancy ratios, and more (what's called a Full Review). The condominium association can and will charge you money for this. Your mortgage is contingent upon receipt of this, but it's going to cost you around $400 for copying charges. What do you do? My advice is to ask your mortgage broker, but don't do anything to jeopardize your pre-approval/commitment.

You have decided to submit your offer and now the wait is on…

2. PATIENCE IS A VIRTUE, GET READY TO HURRY UP AND WAIT.
A short sale is the sale of a parcel of real estate that is short of the equity needed to sell it and pay off all liens। It is not short “time-wise”. You should plan on at least 120 days from your offer, but the amount of time can vary widely depending on the lenders, and if anyone says you will hear back in "x" number of days, you can't believe them.

What happens during the wait? Well, besides Mr. Seller getting anxious waiting for his departure, the short sale file/package/request gets in line in the lender’s short sale department (also called the Loss Mitigation Department). This line is long, sometimes very long.

So, what happens during the wait is just that….the wait. Oh, the agent for the seller will be in contact as needed to re-fax lost documents, explain their research, answer questions about the local market, re-fax lost documents, etc. But you, the buyer…you just wait. It’s like the military … hurry up and wait. Or better yet it's like the hospital ... wake up and take this sleeping pill.

Many sellers’ agents do not give your buyer agent status updates on what’s happening while you wait…you just wait. When I represent the seller, I email the buyer agent every week to say what I know, even if it's nothing, just to make sure that you, the buyer, are still there and somewhat paying attention. But as your buyer agent, there's nothing I can do ... if there were, rest assured, I'd be doing it.

Oh, as the buyer’s agent I know what’s going on….the paperwork is collected, the file is assigned to a “negotiator” who “negotiates” the short sale with the seller’s agent/attorney, and once the negotiator has the file’s required documents (exactly what that is varies by the lender) complete, it has to be signed off by their “team leader” or upper management, or a committee of managers. I check with the seller's agent regularly to ask what is happening but again, often there is nothing happening, just waiting….
3. KNOW YOU MAY GET "BUMPED".
Here is the big elephant in the room: you have no guaranteed place “in line.” If this short sale’s turn in the line comes up on the 80th day after submission, and someone else submits an offer slightly better than yours on day 79, you will be bumped! It is not impossible that a seller’s agent will work with offers one at a time until an acceptance is granted and you won’t get bumped, but this is a rare occasion, hasn't ever happened to me yet. It's not fair, it's not right, but it is reality. This is because the lienholders are losing money and need the most they can get, and it is the seller’s agent’s fiduciary responsibility to get the highest and best price for their sellers.

4. AFTER A LONG WAIT YOU MAY BE DISAPPOINTED.

If you are willing to be patient, knowing that you could get bumped, and you're convinced you want to purchase a home that is a short sale, I might advise you to submit multiple offers on multiple short sales. You may get the one you kind of like, and not the one you love, which might be a disappointment. You might not get any one at all, which can be very disappointing. The question then is, how well do you handle disappointment? Can you accept the lost short sale?

5. YOU JUST MIGHT GET A GREAT HOME AT AN EXCELLENT PRICE THAT MAY MAKE YOU SOME GOOD MONEY SOME DAY WHEN YOU SELL.

So why would anyone consider buying a home that is subject to a short sale?

Quite simply - price! If a seller is not going to make any money on the sale of their home anyway, you can imagine they are much more flexible on terms and price of the sale of their home. If you are the only person making an offer on the home, the bank will need to take the offer seriously, even if you offer significantly less than the asking price for the house. In many Massachusetts neighborhoods, short sales represent some of the best deals around.

There is no reason to be afraid of a home that will be subject to a short sale. In fact they may be some of the best values out there. Just be prepared for a longer timeline, a little more hassle and be sure to use an attorney, mortgage company and if I may be so bold, real estate agent with some experience in short sales. You may just find that incredible hidden gem at a bargain basement price.

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Things to do in New England in the Fall

Fall is my favorite time of year in New England, the air is crisp and has the smell of falling leaves and harvest time is upon us.

If you like picking apples, there are lots of opportunities in Metrowest Boston, about 45 minutes from the city. You can pick your own or buy them in their country stores, and remember no pets allowed, so even though the idea of having Rover run through the fields sounds great, leave him/her at home (it's for their own safety). Here are some of my current favorites:

1. Honeypot Hill in Stow (http://www.honeypothill.com/) is open daily 10-5 and they have a petting zoo of farm animals, a hedge maze, hayrides and lots of easy apples to pick. Be sure to check out their apple cider donuts, yummy.
   
2. Berlin Orchards in Berlin (http://www.berlinorchards.com/) is also open daily 10-5 and a little later on the weekends, they also have barnyard animals and hayrides.


3. Shelburne Farm in Stow (http://www.shelburnefarm.com/) open daily 9-6. They have farm animals, pony rides, a moon bounce and on the weekends they have a hay mountain and toy tractor rallies.
   
4. Tougas Family Farm & Kitchen in Northboro (http://www.tougasfarm.com/) open daily. They have wagon rides to the orchards on the weekends, be sure to check out their apple crisp.


5. Belkin Family's Lookout Farm in Natick (http://www.lookoutfarm.com/) open daily 10-5. Lots of weekend activities, including train rides and an expanded childrens play area with burlap maze, hay pyramid, and pony/caterpillar rides.

There is also a unique place in Bolton, called the Nashoba Valley Winery (http://www.nashobawinery.com/) open daily 10-5, where you can pick apples as well as enjoy tasting some of their micro-brews and locally produced wines. Their restaurant is both excellent and has a spectacular setting so you can get great food with a view.

I hope you enjoy visiting some or all of these places.

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Fall Foliage Touring in Massachusetts

The changing of the leaves from the many shades of summer green to the beautiful colors of autumn is the result of the tree's natural process of shifting the sugars and starches from their leaves to their roots for winter storage. The colors are always there, but as the green is removed the underlying colors are exposed to show their flaming glory before they return to the earth to nourish the tree in the following years.

Local TV stations will give you day-by-day updates on where the peak foliage colors are. Here are some of my favorite day trips to see mother nature in her crowning glory. Make sure you bring your camera!

My absolutely favorite trip to see the foliage is along Route 7 in the heart of the Berkshires. If you can only take a day to see the foliage, this is the drive you should take. The colors usually peak in the first two weeks of October. Best way to get there is to go west on Route 2 until you hit the end/NY border and then head south on Route 7. While there, be sure to take a detour on Route 20 into Hancock and the Shaker Village where you get a tremendous view of the Taconic Range to the west. It feels like you've gone back in history a couple hundred years.

Anywhere along the Connecticut river (starting in Hadley is usually my route and then going north until I hit Route 2) should be in full color from October first through the middle of the month. There are some spectacular farms and bottom-lands where you can also see local pheasants and woodcocks picking over the corn drops and asparagus berries.


Route 2 west, also known locally as the Mohawk Trail, is especially beautiful in the area between the Connecticut river and the Berkshires. While on your way there, be sure to stop at all the furniture outlets in Gardner, where you can find some great bargains, and don't forget to have lunch at the Ale House in the square. Once you get into the Berkshires, you should drive through Charlemont to Williamstown (surprize the family at the hairpin curve when you get to the Whitcomb summit, it's a blast).

In mid-October the foliage usually hits the north-shore of Boston, and a wonderful drive past the farms and coastal villages starts on Route 133, going through Essex, Ipswitch and Georgetown. There are usually little farm stands with local produce and baked goods and I rarely come back without a trunk-full of goodies.

Later in October, from the 15th pretty much until mid-November, your best foliage is found at the Cape (Cape Cod). Tour Route 6a starting in Hyannis or Yarmouth and go as far west as your time allows for a liesurely drive to enjoy the many shades of red, orange and gold. For an extra treat, if you're going south from the Boston area, you should get there by driving down Route 58 through Carver, as the cranberry bogs will be brilliant red and ripe with berries.


I think this year will be an excellent fall foilage season with some of the most brilliant colors we've had in years. So get out there and join the legions of "Leaf-Peepers" this year, you'll be glad you did.

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How to Attract Butterflies to your Garden

You too can have a great butterfly garden – it can start small and grow with time, bringing you year-round beauty and delight to all the senses. But to maximize your butterfly visitors later in the year, you need to plant the right foliage this spring. There are many beautiful plants that you can add to your garden that will attract butterflies. There are also some very homely ones that shouldn’t be overlooked.

When planning your garden, you need to think of two classes of plants, those that are food plants for caterpillars, and those that are nectar-producing plants for the adults. You should also have something flowering in the spring, summer and fall to help the butterflies through their entire lifecycle. When selecting flowering plants, use those with colors which complement your garden design, but know that butterflies are attracted to purple, pink, white and yellow flowers. Also, most of the plants attractive to butterflies grow in full sun, so make sure that the area you select gets at least 6 hours of sun a day. And remember to plant “en masse,” that is group similar colors together in a clump rather than spreading them around as individual plants. This makes it easier for the butterflies to find them.

To attract butterflies, your garden is not complete without some common milkweed - also called swamp milkweed. These plants typically grow in sunny field environments and are notorious self-seeders, so plant them along an edge of your property that you want to see “naturalized”. Milkweed is important because it is the main food plant for the caterpillars of the Monarch and Queen butterflies. The milkweed is also a nectar source from which adult butterflies such as the Monarch, several types of Swallowtail, the Sulfurs, Painted Ladies and more feed. They flower in the summer and are not what one could call attractive, but if you want butterflies, you’ve got to have milkweeds.

The most popular woody shrub that you can plant to attract butterflies is called the Butterfly Bush or Buddleia and comes in colors from lavender to deep purple. The Monarchs and Swallowtails love these bushes and will be all over them in late summer when they bloom. My garden has three giants in the front of the house that are lavender and two smaller plants in the back of the house that are the deep purple. Either color seems to attract the butterflies just as well, and their sweet, lilac-like scent is a welcome addition to our late summer landscape. The secret to cultivating Buddleia is to cut them back every fall to about 18” above the ground level. They will easily grow back to 8’ tall in one season, but what's most important is that the best flowers grow on new wood.

Another woody shrub they like is the Staghorn Sumac. We’ve got some growing up on a hillside, and that’s where it belongs. You don’t want it near your house, as it can cause skin irritation if you rub against it. Blueberries, Blue Iris flowers, Rhododendrons and Spicebush are also very popular with butterflies and their early flowers make them a key part of any butterfly garden. Tall perennial flowers that butterflies love are Queen Anne’s lace, Black Eyed Susan, Purple Coneflower, Asters, Coreopsis, and Daisies. They can be purchased at a local nursery in pots and will come back year after year. In the fall, cut them to about 6” above the ground, and rub the dried flowers between your hands to release their seeds and spread them where you want some more.

Low-growing perennial plants that they like are clover and mint. If you’re a lawn fanatic don’t plant either of these as they will spread and take over in direct proportion to how much you don’t want them to. Our garden has some pineapple-scented mint that the butterflies love and we eat in teas, salads and our annual mint juleps. They also smell wonderful when mowed with the lawn mower and seem to thrive. In the vegetable garden you can plant anise, parsley and carrots to attract butterflies. These also attract some types of moths, so you need to be prepared to lose some of your harvest to them, but I think it’s worth it.

And last, to the less beautiful but hardy common weeds that attract butterflies. Some of the weeds that shouldn’t be overlooked are Fireweed, Goldenrod, Butterfly weed, Wild Geraniums, and Cinquefoil. They grow in poor or good soils, and are best used as naturalizing elements in the transition zone from your woods to your lawn along the edges of your property. With a little planning, your garden can look beautiful to you and to all sorts of butterflies. When you see dozens of bright orange Monarch butterflies flitting about in August when everything is turning drab, the rewards of your efforts will be obvious!

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Professional Photos Sell Your House

No Matter What Style and Price Range Your House Falls In, I Always Use Professional Photos - Always!

Statistics vary from 60-85% of buyers fwho first saw the home they bought on the internet but one thing is for sure, the great majority of buyers and their agents will find your home either on the internet or through the Multiple Listing Service. Because of this, your house has to look its best on the web - with quality photos and rich marketing text. The effectiveness of your brochures, internet and print advertising is only as good as your photos. If you don’t have great photos you are not ready to market your home.

A picture is better than a thousand words.

In today's information overload society you've got a very small window of opportunity to get attention and your pictures had better show both "features" and "benefits". If you don’t attract the attention of buyers and their agents through one fabulous "lead-in" picture then they won’t even look at your home. After putting in their basic search criteria, the next thing they will scan is the "lead-in" picture of all the homes and they will only look at the home's additional photos if that first photo is enticing.

What Your Main "Lead-In" Picture Should Be

Your main picture should capture the essence of the home, and an experienced, professional photographer will do just that. For example, if the home has a spectacular setting then the picture should be of the house encompass some of its surroundings. If your home is an adorable cottage than your picture should be a tight close-up, with lots of detail. If your home is in a neighborhood of similar homes, you know exactly what makes your home stand out from the others and your photos should accentuate those details. Some houses are an architectural stye that shows off its features better if the photo is taken from an angle rather than the traditional head-on shot. Certain seasons and the color of daylight at different times of the day make some houses look better - use that to your advantage.

Marketing is all about "Creating Demand" and great "feature" photos are key.

Once the buyers/agents get interested by the first photo, you've got their full attention, but there is very little room for error, one false-step and they're on to the next property, and won't even call you for a showing. My rule of thumb is that if it doesn't help it hurts. Realtors often put over 20 bad pictures on a listing without understanding this very basic concept. For example, if your living room has quality built in cabinets and crown molding then a well-lit and composed photo can capture the benfits of having those features. You don't need three pictures of the same thing from different angles. Another example, if you have a larger and more private back yard than your competition, a great picture of the view from the seating area on the deck or a back view of the house with your flowers in focus in the foreground will convey the benefit of your great yard. You don't need a picture of an individual flower or pictures of the deck from the backyard showing the stuff hidden underneath - they don't help but they do hurt.

Professional photos will keep your home from being considered "Generic".

A great photographer with a great eye and sense of composition can bring out the emotional appeal of your home. Even if you have no views and a very average exterior, great photos can make a statement, make your home stand out, and attract attention. How many times have you seen photos of a home with a bright window and a cave-like room in front of it? A home does not have to be high end or large to have photos that show each room as light and welcoming.

Require that your realtor provide good photos of your home

Your home is your most valuable asset, you should trust it to a professional Realtor who uses a professional photographer for all their marketing materials. When seeking out a Realtor ask about the photos - who takes them and are they willing to hire a professional? The Realtor you trust to sell your home should understand the importance of photos and all marketing, and should be willing to go the extra mile and invest in hiring professionals if needed. You don't want a Realtor who is lazy or won't make all the effort they can to sell your house. I always use a professional photographer because I want your house to look as good as possible in order to help you achieve your goals!

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Metrowest Hospital Satisfaction Poll Results

The Metrowest Daily News had a fascinating article today, reporting the results of a nine month study called the Hospital Consumer Assessment of Healthcare Providers and Systems. The survey was given to patients who had overnight hospital stays in the time period from October '06 to June of '07.

At the top of the list, in terms of patient satisfaction was Newton-Wellesley Hospital, in Newton, with a solid 82% of all patents saying they would definitely recommend the hospital. At a close second, with 81%, was Emerson Hospital, in Concord. Third, with 76% was Milford Regional Medical Center. Fourth, with 71% was UMass Memorial Medical Center in Worcester. Fifth, with 65% was Marlborough Hospital. And rounding out the pack, with 61% was MetroWest Medical Center.

What's not shocking to me, given my very high regard for all the people involved in health services in the region, is that with the average for all hospitals in Massachusetts being 70% of all patients saying they would definitely recommend the hospital, and with the National average being close, at 67%, the strong majority of the hospitals serving the metrowest community had patient satisfaction above both these great results.

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What Does "As Is" Mean in Real Estate?

The real estate industry has its own unique language that can sometimes be confusing. One term that comes up a lot, especially in these times of bank-owned properties, short sales, and foreclosures, is "as is" and its variations "where is", and "in its present condition". There are some agents who feel that part of the reason we see "as is" cropping up more and more is because more buyers are being coached to use the home inspection as a reason to reopen negotiations (sometimes justified, sometimes not) and that sellers and their agents, who may have already lowered the price several times, are using it as a tactic to close the door on this practice.

This is not a term to be used lightly by sellers, because there are costs as well as benefits, and if you don’t know what it really means, you shouldn’t use it. Sellers commonly mistake "as is" as a way to avoid making any repairs, rationalizing that a lower asking price will reflect the condition and eliminate expectations. Buyers, however, tend to interpret "as is" differently. They sometimes take it as a sign of blood in the water and think that they can bargain way down from the asking price because they are now suspicious that many things are wrong with the house. Often buyers will be very wary of "as is" houses and even avoid viewing them or putting in an offer for fear of hidden defects that will reqire a lot of time or money. You might be better off without using that clause and having your agent stress that the inspection will probably not result in repairs or a price reduction.

"As is" is actually a legal term and concept used to disclaim liability for the condition of the house being sold. It says that the seller is selling, and the buyer is buying the house in whatever condition it presently exists, and that the buyer is accepting the house "with all faults", whether or not immediately apparent. It is most commonly (and correctly) used in estate situations or when banks or relocation companies own the property, where the sellers may have never lived in the house and have no knowledge of any issues/defects. In Massachusetts, the seller and their agent must disclose any known defects in the property in an "as is" purchase, but they don’t have to disclose what they don’t know.

This is the ultimate "buyer beware" situation, where a buyer must take the time to examine the home before accepting it. The buyer should also obtain expert inspection and legal advice and do what their experts recommend. They should also make sure their contract is contingent upon acceptable inspection approved by buyer, but understand that their only option is to take the house or walk-away, the seller is under no obligation to re-negotiate any inspection issues.

There are currently many great deals on "as is" houses, and I hope this post has been helpful.

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What I Like About Sudbury, Massachusetts

Sudbury, Massachusetts is a progressive town where history coexists peacefully with modern lifestyles. Located just shy of 20 miles from downtown Boston, the town of 18,000+ residents is conveniently found halfway between the inner (Rt. 128) and outer (Rt. 495) beltways.Typical commutes for the townsfolk are 30 minutes.

As it was incorporated as a Town in 1639, you can imagine there’s a lot of early American history in Sudbury. One of my favorite sources for the history of the town of Sudbury is hosted and written by the members of the Senior Center, have a look, you’ll find it interesting and informative.

For anyone who craves data and facts and figures, there’s a great wiki here. Knock yourself out.

Here’s some of the stuff you might want to know:

Shopping: You are 15 minutes to the shopping Mecca’s of Metrowest in Natick and Framingham. For really upscale you can go to Chestnut Hill in Brookline or Newbury Street in Boston in about half an hour.
Schools: 4 Elementary and 1 Middle – all outstanding. High School is regional, shared with the Town of Lincoln – also outstanding.

Restaurants & Markets: There are a number of fine restaurants in the town, a Starbucks, and a Dunkin Donuts. There’s also the original Sudbury Farms supermarket with a killer take-out/deli. Down the road a piece there’s a Whole Foods supermarket.

Taxes: Not cheap, but a good value.

Transportation: You pretty much have to drive everywhere. There’s a commuter rail in Lincoln/Weston that takes you to North Station. There’s one in Framingham that takes you to South Station.

Religious Institutions: Currently there are Baptist, Catholic (2), Congregational, Episcopal, Church of New Jerusalem, Jewish (2), Lutheran, Methodist, Presbyterian, Unitarian, and Non-denominational parishes in town.

Hospitals: There are three excellent hospitals nearby: Emerson Hospital in Concord, Metrowest Medical Center in Framingham, and Marlborough Hospital in Marlborough. Obviously, some of the finest hospitals in the country are minutes away in Boston.

Government: Town form of government with three Selectmen and a professional Town Manager. One of the oldest continuously running Town Meetings in the US – if you’ve never sat through one you really should, it’s in March, and it’s really a tribute to the staying power of our democratic principles.

Overall Rating: It’s a really nice town and I’d like to live there.

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Haunted Real Estate

Are you looking for or selling a house with a little extra atmosphere? Would you like the feeling of having a permanent unseen houseguest? Some people, perhaps someone like you, actually want to buy a house that is haunted.

So how do you go about trying to find a haunted house for sale, or sell your own house that has a resident ghost? When househunting, how do you find a house that comes with a ghost, and if you're selling a haunted home do you have to openly divulge that information to everyone?

Hauntings fall into a shadowy area of disclosure, in part because there's typically little or no solid proof that the ghost exist, and only "facts" have to be disclosed. The Commonwealth of Massachusetts is a "don't ask/don't tell" state regarding hauntings in houses for sale. You have to specifically ask the agent/seller if there is paranormal activity in the house, and they have to tell you what they know. But if you don't ask, they don't have to offer it up front.

The law in MA, Chapter 294 of the Acts of 1998, An act further regulating the disclosure of certain information in real estate transactions states: Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 93 of the General Laws is hereby amended by adding the following section: - Section 108. The fact or suspicion that real property may be or is psychologically impacted shall not be deemed to be a material fact required to be disclosed in a real estate transaction, except as provided in this section. "Psychologically impacted" shall mean an impact being the result of facts or suspicions including, but not limited to, the following: (a) that an occupant of real property is now or has been suspected to be infected with Human Immunodeficiency Virus or with Acquired Immune Deficiency Syndrome or any other disease which reasonable medical evidence suggests to be highly unlikely to be transmitted through the occupying of a dwelling; (b) that the real property was the site of a felony, suicide or homicide; and (c) that the real property has been the site of an alleged parapsychological or supernatural phenomenon.
No cause of action shall arise or be maintained against a seller or lessor of real property or a real estate broker or salesman, by statute or at common law, for failure to disclose to a buyer or tenant that the real property is or was psychologically impacted.
Notwithstanding the foregoing, the provisions of this section shall not authorize a seller, lessor or real estate broker or salesman to make any misrepresentation of fact or false statement.

Although it took place in the State of New York, it's worth looking at the most famous court case on the subject - Stambovsky v. Ackley (572 N.Y.S.2d 672 NY App. Div. 1991), regarding the sale of a magnificent Victorian mansion at 1 Laveta Place in Nyack, NY . The sale was contested after the Stambovsky family made an earnest payment of $32,500 on the $650,000 home. Even though the house was clearly spooky at first sight, the couple was from out of town and did not know about its reputation. For a long time, the sellers had promoted the home as haunted, had a write up in Reader's Digest, and had featured it on a haunted walking tour of the city. When the sellers chose to sell the house they stopped promoting it as haunted.

Once the couple learned of the house's reputation, they tried to back out of the deal and get their deposit money back. The owner refused to cancel the sale or return the down payment, so the Stambovsky's took the seller to court and lost, only to win with a narrow margin of 3-2 in appellate court, after the court found that by deliberately fostering the belief that the house was haunted, the seller had to, by law, disclose that the house was the psychological impacted.

Some great links for more information on haunted real estate:

http://www.sdparanormal.com/Haunted_House_Listings.html

http://www.realtown.com/articles/haunted-real-estate-a-primer-for-real-estate-agents

http://www.hauntedrealestate.com/

http://www.ghostsandstories.com/haunted-real-estate.html

http://www.hauntspot.com/haunt/articles-and-news/haunted-real-estate.shtml

http://www.associatedcontent.com/article/421456/selling_a_haunted_house_a_satiric_real.html
Articles on Real Estate's Scary Side:

http://money.cnn.com/2003/10/21/pf/yourhome/househaunting/

http://realestate.msn.com/buying/Article_bankrate.aspx?cp-documentid=1102007&GT1=10534

Ghostly Appraisals: http://www.realestatedamages.com/index.htm

Ghost Removal Solutions and Housecleaning: http://www.moonslipper.com/

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Why You Should Have a Buyer's Agent

The listing agent shows you the house - you love it and they can write up the offer for you! That listing agent loves you. And the agent's realty company loves you even more! Normally a commission gets split 4 ways. When you work directly with the seller's agent, they and their broker (company) get to keep the whole commission. Congratulations to the seller's agent!

The home seller is their only client. You are not their client and they have no responsibility legally to act in your interest. Client means that the agent has a fiduciary duty to that person, just like attorneys or doctors do with their clients & patients. That includes privileged information about your level of desire, need and ability to buy that home. If the seller is highly motivated, you're not going to know that you could've offered 10% below market instead of 5%. If the seller's agent is good, they are going to be sure that you think you're getting a "wicked good deal" when you're really paying top dollar. They also are going to make sure that their seller has every opportunity to keep your earnest money deposit if you mess up even a little bit. And they'll make sure any contingencies benefit their client, not the poor unrepresented guy on the other side of the deal (which is you).
And where are you getting your analysis of market comparables? Hopefully it wasn't from the seller's agent. Comps, like any statistical analysis, can be easily manipulated to favor a top dollar or a low ball offer, depending on which homes the agent chooses to include or exclude from the mix.

When you put in an offer on a house with the listing agent, you have basically tipped your hand and all your information will be shared with the seller. But the realtor seems nice, and why would this be so bad, you ask? Let's say you've shown the realtor your mortgage approval letter - for an amount equal to or above the asking price. Well, there goes all your negotiation edge.

A buyer agent (ABR) is the only person in your house search and offer process looking out only for YOU. They are your advocate in a major and life-affecting purchase. Using a Buyer Agent costs you no money, and may even help you save money in the initial negotiation and using inspection issues to re-negotiate.

Would you want to go to a court trial having the Prosecutor do double duty as your defense lawyer? Absurd and ridiculous? So is using the listing agent as your realtor and expecting them to act in your best interest.

Call me today (978-580-1069) if you’re ready to buy and want your own buyer’s agent! You deserve it.

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