Boise Home Inspections: The Second Sale

Many (most?) sellers heave a sigh of relief when they achieve an accepted offer and their agent puts up a SOLD rider on their sign.

What they don’t realize is that they will probably have to negotiate a second sale ~ the sale after the home inspection.

Most Boise home inspections almost always reveal some issues needing repairs.

Sometimes those issues are minor, but they can also be significant ~ like water in the crawlspace, a roof needing repairs, or a HVAC system that has been neglected.

Those repairs get negotiated between buyer and seller and if the seller refuses to make repairs requested by the buyer, the deal can collapse.

It’s somewhat rare for a sale to fall through due to repair issues, but it can happen.

That’s why sellers need to understand that negotiating inspection repairs is the second sale when they sell their home.

 

Boise Home Buyers: In-House Listings

Attention: Boise home buyers!

Have you ever wondered why your agent is pushing you to buy a home that’s listed with her own office?

Well, it might be due to her broker offering her a bonus commission for selling an in-house listing.

Here’s how it works:

Most agents split their commissions with their broker.

There are two “sides” to every sale – the listing side and the selling side.

The broker obviously benefits by encouraging his agents to sell his company’s (in-house) listings because that means the company gets the selling side commission in addition to the listing side commission.

That means the broker gets a cut of two sides of the deal vs. just one.

So, what better way to generate additional commission dollars than offering his agents a bonus if they sell an in-house listing?

For example, if the selling agent is on a 60/40 split with his broker, she might receive a 70/30 split if she sells an in-house listing.

The interesting thing about this is that the buyer and seller never know about this practice because it only appears within the broker’s internal accounting records.

While entirely legal, this practice creates the appearance of unethical conduct and should be disclosed to the buyer.

In case you’re wondering, the RE/MAX business model avoids that temptation because most RE/MAX agents pay to be affiliated with the company, then retain their earnings instead of splitting their commissions with their broker.

 

Boise Listings: They’re Not All Mine!

I’m often asked, by visitors to this site, about “my listings” they’ve seen using the MLS search function on this blog.

It would be nice if I could be the listing agent for all of the listings in MLS, but I’m not.

What you’re seeing is the result of something called IDX ~ internet data exchange.

IDX allows agents to display all of the listings in MLS on their respective sites with their own contact information.

If you look at the bottom of each listing, you will see a line that says “Courtesy of XYZ Realty”.

IDX allows consumers to view all listings that meet their criteria, then contact the agent whose site they are viewing for additional information.

While convenient, his practice is also confusing for many consumers.

I can’t count the number of times I’ve had to explain that I’m not the listing agent for every listing that someone has seen on this blog.

But, I can still answer your questions about every listing in MLS because I have full access to MLS data, including information that isn’t displayed to the public.

Do you have questions about listings you’ve seen online?

Give me a call at (208)938-5533 or e-mail me and I will be happy to answer your questions.

 

Meridian Idaho Home Inspections

Nearly all of the homes sold in Meridian Idaho are purchased subject to the buyer’s approval of a home inspection report.

In the Meridian Idaho real estate market, the buyer pays for a home inspection to be performed by an inspector of their own choosing.

A home inspection will cost $300 or more in most instances, depending upon the size of the home and the scope of the inspection.

After the inspection, the inspector will prepare a report with his findings and deliver it to the buyers and/or their agent.

If there are no significant defects noted on the report, the transaction will proceed normally.

If, however, the inspection report notes problems, the buyer will have the option of asking the seller (in writing) to correct those items.

At that point, the seller can agree to complete the requested repairs, in which case the transaction will proceed normally.

The seller, however, can refuse to complete the requested repairs, thereby giving the buyers the option of canceling the purchase and having their earnest money returned.

Some sellers opt to have their home “pre-inspected” by a home inspector of their own choosing prior to listing their home.

This allows them to control the selection of the inspector, and a positive report can be used as an effective marketing tool.

 

Boise Home Appraisals

If you’re financing your home, your lender will have the home appraised by a licensed real estate appraiser to confirm that the value is adequate for the requested loan amount.

This assures you that the price you’re paying for the home is reasonable, because the lender wants to confirm they’re not lending more than they should.

Lenders are required to order the appraisal through an Appraisal Management Company (AMC), which then assigns the appraisal to one of their approved appraisers. This prevents the lender from influencing the outcome of the appraisal. Lenders do not know the identity of the appraiser until they receive the appraisal report from the AMC.

It’s important to understand that the purpose of the appraisal is to justify the value of the property for the intended loan; not to establish fair market value.

The appraiser looks at the physical characteristics of the home, as well as the condition.

Depending upon the type of loan (think FHA and/or VA here), the appraiser may note items needing repairs.

In the Boise area market, the seller often pays for the appraisal.

The cost of a typical residential appraisal in our area is usually between $350 to $450, but larger properties requiring more complex appraisals can cost more.

Appraisals for non-owner occupied properties typically cost more due to the additional economic analysis required.