On occasion we encounter a buyer who wants to “float” an offer verbally to purchase a home for sale in Fredericksburg.  I’ve even encountered cases where someone wanted the contract to be verbal.  Not just a verbal offer, but the entire contract to be verbal.

A verbal offer is very rarely a good idea.  First, the seller is very unlikely to take an offer seriously if it hasn’t been reduced to writing.  From the standpoint of the entire contract being verbal, there is another problem known as the Stature of Frauds.

The Statute of Frauds requires that real estate contracts be reduced to paper to be enforceable. The statutes say that a contract for the sale of real property, or a lease over a specific amount of money is unenforceable if the principals have not reduced the contract to paper.

This is a general interpretation of the statutes, and is not intended to be legal advice or a complete review of the law.  In some circumstances certain elements of the verbal contract could be enforceable.  But talk about an explosive and potentially damaging situation… that would be what you would have with verbal real estate contract.

So, your offer should be in writing, and the real estate contract should also be in writing.

If you have legal questions or need legal advice, we recommend you seek counsel from an attorney.  This is not, nor is it intended to be legal advice.

I am saddened by a conversation that I had yesterday with recent home buyer that purchased a home in another state.  This buyer had purchased a home and has been living in and enjoying his home for a couple of months now.  Everything was going quite well… until he received an extremely high electric bill.  The electric bill was probably three times as high as it should have been!

He delved into trying to figure out what was causing the problem, only to learn that he was heating his home using only the emergency heat function of his heating system.  Why you ask?  Because the heat pump that contractually was a component of the home, actually doesn’t exist at the home.  That’s right, the heat pump isn’t there.

How did this happen?  Well, the easiest and most likely time for this issue to have been discovered prior to the purchase of the home was during the home inspection.  However, in this case, instead of using a qualified, licensed and experienced home inspector, they used a family member to check out the house.

Is there a problem with using a family member to do the home inspection?  No, not if the family member is a professional home inspection.  But if not, then you are gambling with what is likely to be your largest lifetime purchase.  No matter how well intentioned the family member, they likely just don’t have the knowledge, skills and experience to adequately help you protect your investment.

I did some mental calculations and determined that the decision of not using a professional inspector will likely cost this buyer a minimum of $4,000.  At least 10 times what a professional home inspector would have cost.  Not to mention the now worrisome consideration of what other issues were missed?

So, please recognize how important this issue is to you as a purchaser.  Using a professional home inspector is critical.  It is so important that every time we help a buyer purchase a home, we recommend they get a professional inspection.  In fact, we have buyers sign off on a statement that shows we have made this recommendation.  Don’t gamble with such a huge purchase.  Latent (hidden) defects in a home can be very costly.

If you are a veteran who is planning on using your VA loan to purchase a home for sale in Fredericksburg, the Realtor you choose can be a vitally important choice.  There are nuances to the VA loan product that are specific to that loan product.  For instance, there are certain expenses that are typical with a real estate purchase, however, with the VA loan product the buyer may be prohibited from paying for some of those expenses.  Another primary differences between the VA loan and some other loan products is the minimum property requirements. (MPR)

The MPR is a set of standards regarding the property’s quality and condition.  These standards will be assessed by the VA approved appraiser who does the formal appraisal for the property.  The appraiser’s job will be to determine if the property’s value is sufficient as collateral for the amount of money that the bank is loaning for the purchase.  But, along with that, the appraiser is looking for condition, code and quality issues that affect the property.  This is designed as a protection for the veteran who is purchasing the property.

Therefore, sometimes there are things that a VA appraiser will identify as conditions of the appraisal that will need to be repaired, replaced, or corrected before the bank will loan the money for the purchase.  It is important to work with a Realtor who is familiar with the MPR standards.  A Realtor who is knowledgeable of the VA loan can help the veteran identify properties that are good candidates for the VA loan, and can also identify potential appraisal issues.  It is a far better scenario to negotiate repair of these issues in the contract, and to have them repaired before the appraisal ever happens.

Working with a Realtor who is experienced and capable of guiding you through this process can save you hundreds, and even thousands of dollars.  Thinking of purchasing a home using a VA loan?  Call us today (540) 538-7222 for more information purchasing a home using a VA loan.

I am not the type of Realtor who is constantly shouting from the rooftops that “It’s a great time to buy!”  Coincidentally, that same agent who will always tell you its a great time to buy, will also tell you it’s a great time to sell at the same time.  The fact is there are swings in the real estate market, and some times are better for buying, and some are better for selling.  The only truly great time to buy is when it makes sense for you, the buyer.

With that being said, what we try to do with our Fredericksburg real estate clients is educate and inform.  If someone is considering buying, we want to give them the data and information they need to make an informed decision.  The same thing applies to someone looking to sell a home in Fredericksburg.  Information is king to critical decision making.

A word of caution that I have mentioned many times….  The national media, and quite often the local media as well, are not riding the current wave of real estate information.  For instance, just today I saw an article talking about the wild craze of multiple offers and escalation clauses that have swept the market.  Ummm…. they are behind the curve for sure as it relates to Fredericksburg.

Three or four months ago multiple offers and escalation clauses were indeed the topic of the day.  But, the market has shifted quickly.

Here are a couple stories to this point. Both of these stories have played out in the last week here in Fredericksburg….

Home Buying Story # 1

Home priced under $125,000.  Four months ago a $125,000 home listing would MAYBE have seen one sunrise before it was under contract.  It also very likely would have sold for more than the asking price.  In this case, the home was on the market for over a week before the buyers made an offer.  The negotiations on the deal took about a week.

In the course of the week long negotiations no other offers came in on the property.  Instead of multiple offers and escalation clauses, the seller agreed to take the offer at around 6% below the asking price.

Home Buying Story # 2

Home priced under $175,000.  Same situation as above, a few months ago this would have been under contract before it even permeated the internet.  In this case after a couple weeks on the market, no offers had been received.  The buyer entered and offered about 11% below the asking price.  With no other offers on the horizon, the seller agreed to the offer.

Sound like a hot seller’s market with multiple offers and escalation clauses to you?  Me neither.

The point I am trying to make here is that if you are considering buying or selling a home, sit down with a local, reputable Realtor to discuss the market.  Don’t listen to national media, and don’t trust a real estate agent who doesn’t know the local market intimately.

Want more information about the local market and what it means for you?  Call us at (540) 538-7222 or email us at jedmisten@cbeva.com.  If you’d like, we can even have a cup of coffee (my treat) and talk about the market.

The following article is reposted with permission from master blogger Matthew Rathbun

Virginia Requires A Boating License For Boats and Jet Skis

Last summer I was at a friend’s lake-home enjoying the boats and jet skis when he asked if I had a boating license, so that I could drive.  I didn’t even know there was such a thing.  Since I’m under 50 years old, I apparently needed a boating license.  The law went into affect that in a progressive manner, depending on age, all watercraft drivers would need a license.

According to the Virginia Department of Game and Inland Fisheries website a law went into affect in July of 2012 requiring drivers of watercraft that are under 50 (as of 2014) to have a driver’s license.

As of July 1, 2012, all PWC operators age 14 and older and motorboat operators 30 and younger must complete a boating safety course. This is the next phase-in of the Education Compliance Requirement for all Virginia boaters. Beginning July 1, 2013, all motorboat operators ages 40 and younger need to take a boating safety course.

PWC Age Restriction: No person under the age of 14 may operate a PWC. Those operators 14 and 15 MUST show proof of completing an approved and accepted boating safety course either in a classroom or online. The challenge exam or other provisions of the Education Compliance Requirement do not meet the requirements of the age restriction law.

Since I love my summer activities and I’m leaning toward acquiring a boat of my own, I went in search of licensing class.  There were a few options for Saturday classroom sessions, none were exactly close-by where I lived, but all were free.  I’m not one to have a lot of Saturday’s to give to sitting in a classroom.  I decided to check out online classes.  Since I couldn’t find a great resource for getting information about the classes, I thought I’d share my experience with three services.

The law requires 6 hours of actual learning and the online programs are timed to ensure you stay active for the entire six hours.  I looked at three websites, completed the first session of each and then decided to complete the program with BoaterExam.com.

Best Online Option – BoaterExam.com

BoaterExam.com isn’t free, it’s $30, but it’s worth it.  First, I’m a Mac user, so the fact that it works on Safari was important to me.  Second, BoaterExam was easy to sign-up for, had a current website and easy to follow videos and program information.  Each session has a video to lead off which is very easy to follow and the session allows you to forward if you’ve completed watching the video and reading the materials.  You’ll still need 6 hours of interaction.  Some of the other online classes would make you stay on the page until the time ran out, even if there was minimal information on each session.  Additionally, the site works well on my iPad, which is important since I’m on travel so much.

I found the reviews at the end of each chapter to be very helpful and the tests made a lot of sense.  They were practical and easy to read.

I also looked at Boat-ed.com which was just “ok”.  The interface was not nearly as user friendly, clean and current as Boaterexam.com.  It was also $30 to complete the program. The quizzes, videos and information was not very well produced.  I had problems running the site on my iPad.

Lastly, the site that I started off this adventure with was a site called BoatUs.org.  The first session was so bad, that I almost abandoned the thought of an online class.  The class is free, but the materials are congested, poorly written and very hard to follow.  The quizzes seemed designed to be particularly difficult and, unlike the other two programs, they seemed to be a lot of information that no one will really need.  The sessions weren’t very practical.  This site didn’t work on anything other than Internet Explorer and Firefox and desperately needed a user-interface expert to advice them on how to improve the learner experience.

We love a good success story!  This is Daniel and Penny’s story.

Daniel and Penny had owned their home for nine years and now found themselves in a situation where they needed to relocate south.  Timing was critical for them and they were referred to us by their friends Melissa and Cody.  Their fears were that the home would take a good while to sell, and that they wouldn’t realize as much money from the sale as possible.  A lengthy time on the market would have seriously disrupted their plans and caused a good bit of hardship on their family and the move.

We evaluated the home and the market conditions.  Because of the love and energy they had put into the home we told them we believed we could sell the home quickly and at a price of about 6% more than the neighborhood sales indicated.

With the help of our professional photographer/videographer we were able to put together a great marketing package for their home. The home marketing was then rolled out using our Elite Edge Marketing System.  Daniel and Penny were delighted to have their home under contract with a full price offer in just 5 days.

Daniel and Penny indicated that they were very happy to have been referred to us and that our services exceeded their expectations.

Who do you know that is considering selling and would like to sell their home quickly and for the most money the market will bear?  Please call us at (540) 538-7222 or email us at jedmisten@cbeva.com with their name and situation.  We promise they will receive the excellent service they deserve.

Let me tell you a story, but put yourself in the agent’s shoes for this story…

Imagine you are a Fredericksburg real estate agent and you are scheduled to show a home to a prospective buyer.  You and your team do your research and know the details of the property, the neighborhood, the current market conditions, and the history of the property.  You pull all your materials together, and take some last minute preparations to make sure you put forth your best professional image.  Then in the car you go.

You arrive early, open the home and are ready to greet your clients.  While you wait, you walk around the home checking for any defects and issues that may affect value or the investment your client might make.  This is a 4 bedroom, two-story colonial style home, with a coveted first floor master suite.  The property is in great condition.

You walk around the outside of the home taking note of important issues.  You note the age of the HVAC system, note that the roof looks good, and you look over the construction of the deck.  The deck is actually more like a balcony in that it is off the master suite and doesn’t have stairs down to the ground.  The only accessibility is from the master bedroom.

Finally, your clients arrive.  You carefully guide them through the home, pointing out nice selling features and a couple of deferred maintenance issues that should be addressed in the contact.  You can tell the clients like you and seem to be impressed with you and your preparation.  All is going well.

You come to the master suite and it is obvious that the clients are in love with this spacious room.  Being the ever vigilant real estate professional you throw open the doors to the balcony/deck and invite your clients outside.  As they step out onto the balcony and take in the view, you close the door behind you and hear a sickening click… just as you realize you do not have the keys with you.

Now, guess what.  You and your clients are now stuck on the balcony about 12-14 feet above the ground with no way to go back in the home, and no way to safely get down to the ground.  This is embarrassing.  But trying to shimmy down the deck supports in a skirt would be even more embarrassing.  Your only option left is to call your team leader and ask for help.

This is the phone call and the scenario we had a few years back with one of our teams buyer specialist agents.  I laughed uncontrollably for several minutes after receiving the phone call.  Fortunately, our clients were very good sports and handled the situation well with a proper degree of levity.  The agent who called me would probably say that I had an improper degree of levity in the situation.

But, I have often thought about that house and that situation.  Quite often when I think about it I wonder what would have happened if that had been an emergency.  Having no stairs off the deck would make for a rather dicey jump to the ground 12 feet below.  If I were the owner of that home I would want some sort of Emergency Escape Ladder.

We are coming into a season where it seems likely that more home fires are bound to happen.  People are using fireplaces, wood burning stoves, electric heaters, electric blankets, deep fryers for turkeys and much more.  Fire is no joke, I would encourage everyone to have an escape plan, and if you live in a two-story house, I would highly recommend an escape ladder or some safe way of exiting the second floor in case of an emergency.

Here is to your safety this winter season.  If we can be of any assistance to you in purchasing or selling your home in the Fredericksburg area and surrounding counties, feel free to call us or send a message with the form below.

A question that often arises when selling a home in Fredericksburg and the surrounding counties revolves around homeowners association violations.  When a home owner in the Fredericksburg area decides to offer their home for sale, they need to understand that they will be responsible for ordering and delivering a copy of the Homeowner’s Association Resale Disclosure package if their home is in a Homeowners Association.  Upon receipt of the Resale Disclosure Package, the buyer then has three days to review the package and decide whether or not they want to void the contract.

In many cases, while preparing the package, the association will do a cursory inspection of the property.  If they note any violations of the rules, regulations and covenants, they will note these violations within the package.  If a buyer closes or settles the transaction then they have inherited the violations.

The question that often comes up then is if the three day review period has passed, and the buyer has not voided the contract, is the seller still responsible for remedying the violations.  The short answer is yes.  Check out the video for more details.

Note: This post and the information contained within is the opinion of the author alone and is intended for informational purposes only.  Nothing in this post is intended to be construed as legal advice.  If you have legal questions consult a qualified attorney for legal advice.

One of the most significant lessons anyone can learn in life is to realize that “It” is not all about you.  It’s not all about me.  There is no sweeter victory in life than to sacrifice something of yourself to impact another person’s life in a positive way.  This video is one of the best demonstrations of this profound fact that I have ever seen.  Check it out!

Middle school football team’s life-changing play

I had to chuckle as my clients walked through the home for sale in Fredericksburg that I was showing them last week. It was obvious that they were liking it more and more with each room.  I chuckled because while I know they are highly qualified to buy, I also believe that their finger isn’t on the trigger, so to speak.

These folks aren’t new clients, in fact they are friends and we have helped them buy a couple of homes.  Their family is growing, and with the growth comes their desire to move up again into a larger home.  So, they are serious buyers, but they aren’t in a desperate situation.  They don’t have to move, but they will when the right house comes along.  To be honest, I think they kind of hope the right house comes along a bit down the road in time…not right now.  So, every now and then they will take a look at some Fredericksburg real estate that has potential.

That’s how we came to be in the home I was showing them. But this time may have been a little different.  I heard some soft gasps as we went from room to room.  The conversation between them became a little more excited, as witnessed by the oohs and aahs.

I walked with them and as we talked I could tell that they hadn’t expected to like this home as much as they did.  Now, they may have some tough decisions to make.  Not only do they have to ponder if this is the right house for them, but is the timing right for them?

This made me ponder the timing issue a bit. Like I said, this family is highly qualified to buy, but often that may not be the case.  Take many first time buyers who may intentionally try to avoid getting pre-approved before looking at homes.  They, in most cases, truly don’t know what they qualify to buy.  Even if they know they qualify for the price point, do they know what the payment will be in that price point?  How can you make good shopping and offering decisions if you don’t know how it fits into your budget?

I understand the desire to not be pressured. That is why some buyers will avoid Realtors and lenders until they absolutely have to engage them.  Ultimately, that decision will often cost them.  It can cost them in dollars by not positioning themselves as strong buyers.  It can cost them the perfect home of their dreams because it took too long to get qualified and make an offer.

Friendly advice, freely offered…Look for a Realtor who is professional enough to listen and understand your story.  The true professional agent isn’t going to pressure you, they want to help you accomplish your goals.  That Realtor can then recommend some lenders who conduct their business in the same professional manner.  Don’t forget to ask friends for referrals if you aren’t finding a good match in a Realtor.

Bottom line, this process should be fun and exciting.  Not a pressure scenario, and not one that you are ill prepared for.

Want more information on the home buying process? Want a referral to a great lender to get pre-approved? Call us at (540) 538-7222 or use the form below to contact us and we’d be happy to point you in the right direction.