Thursday, October 27, 2005

 

What is a REALTOR and What do they do? - A Look at the Buyer's Agent and the Transaction Process.

I hope that this is informative. This Blog is inspired by recent occurrences which make me realize that people must not understand what a REALTOR does.


What is a REALTOR and what do they do?

A REALTOR is a real estate professional that is licensed by the state to do real estate transactions and is a member of the NATIONAL ASSOCIATION OF REALTORS.

A REALTOR wears many hats to perform their job well.

In the case of representing Buyers, a REALTOR must first find out what the Buyer is looking for. After finding out this criteria, the REALTOR must search for any prospective properties that the Buyer may consider. This can be a long process usually about 3-6 months, stretching up to or even over a year. Throughout this time, the REALTOR is usually sending property listing info to the Buyer and also personally showing prospective properties at every chance. Now, if the Buyer decides not to purchase after all, then the REALTOR makes no money, as they are paid by commission…and “No Successfully Closed Transaction = No Money”…a sad but common tale. However, in the event that the Buyer does decide to purchase a property, then it is time for the REALTOR to change Hats.

Now they would enter the phase to make an offer, this of course involves a bit of paperwork which can be easy or difficult, depending on how eye-to-eye the Buyer and Seller agree on terms. Now, if the offer is not accepted and the Buyer and Seller cannot come to agreement on the terms, then the offer expires and the search for the perfect property resumes. Unfortunately, if the Buyer decides now not to purchase after all, well here’s our sad but common tale again. But, if they do agree then once in an agreement, and the original offer is signed by all Buyers and Sellers then Escrow can be opened.

Escrow is the side of the process where the deposit money is held and is the “impartial party” to the transaction. The Buyers have their agent, as is being described and the Sellers have their agent, which will be described at a later time. So, there needs to be an “impartial party” to watch over it all, hence Escrow. Usually Title is also tied into Escrow, and Title makes sure that the Seller actually is legally able to sell the property and that all liens on the property are cleared, so that the new buyer starts with a clean slate. Back to the Buyer’s Realtor’s Process…after entering Escrow there is more paperwork to do, inspections to schedule, calls to make. This is a rather busy time for the REALTOR and pretty much all parties involved, as most Escrows are scheduled to close 30-45 days after entering Escrow.

A huge thing here is to know that the Buyers can actually afford the property that they are looking to purchase. Many Buyers need to borrow money, enter the Loan Agent. The Loan Agent will pull the Buyers Credit to make sure that they are in good standing and also speak with the Buyers and get current work and salary info. Many more experienced REALTORS know that this can be a problem area and that this has been a lot of work for it just to fall apart, if the Buyer cannot even afford the property that they have been searching for the past 3 months to 1 year. With this in mind, those experienced REALTORS would have had their Buyers “Pre-Qualified” or “Pre-Approved”. This means that the Buyer would go to the Loan Agent and already know what their max price range would be before ever looking at properties. Now if the Buyer cannot afford the property, then the Escrow falls out and again our sad but common tale happens.

But, in the case that the Buyer can afford the property, then the inspections begin...Hat Change! I, personally, always try to go to any inspections, as I feel that it is an important part of the process to represent my client’s best interest. The biggest inspection to schedule right away is the Home Inspection. This is an overall view of the entire workings of a house and its working components. The Home Inspector should be a licensed and insured professional. They are there to give an overview of the house. If there are any specific “Red Flag” Areas, they will let you know within their written report. All houses have deficiencies and hopefully the Home Inspector finds them. They of course are people too and are not always able to find everything…that is why it is important for them to be insured. So, of the “Red Flag” Items that they Home Inspector finds, they will also give suggestions. For example, if there were foundation issues, they would suggest that you get a Foundation Expert to do their own Inspection of the property. Of course, there are not always problems this big, but it is important to know what you are getting into as a Buyer. That is why a Home Inspection is very important. A good agent will schedule this Home Inspection immediately after getting into Escrow, as usually the Buyer has only 17 days to back out of the deal without losing their deposit money to the Seller.

The deposit money is usually written out in the form of a check, when the original offer is made on a property. When the offer is signed by everyone and is submitted to Escrow, this deposit check is also given to Escrow. They take this deposit check and open it in its own account, so it DOES get withdrawn from the Buyers account. This usually happens immediately after opening Escrow. If the Buyer decides to withdraw from the deal and no longer purchase the property within the agreed amount of time, as stated in the purchase contract (usually 17 days from acceptance), then they will get their deposit money back. If it is after the agreed amount of time, then the Buyer could possibly lose their deposit money. If the deal falls apart and the Buyer decides not to purchase, again our sad but common tale comes true.

But, if they decide to stick through it all, then the REALTOR must get all of the different disclosures and paperwork signed by all of the appropriate parties, back to the "Paperwork Hat". The amount of paperwork depends on the situation, but usually ends up about an inch thick of 8.5x11 paper.

After having the Home Inspector do the Home Inspection and the Buyer now has in hand all of the “Red Flag” Items, it is time for the Buyer to decide if they would like any items taken care of by the Seller. Some properties are sold “as is”, so those properties would not be included. The Buyer and Buyer’s REALTOR would come up with a “Request for Repair” List. This is a Request, as the Seller does not have to perform any of these, but they usually do some items, at least. This can also be a renegotiating period, if there are many items that the Buyer wants fixed and the Seller does not wish to fix them. Then, an addendum can be drawn up to adjust the purchase price or to give the Buyer a credit through Escrow. If the Buyer and Seller again do not see eye-to-eye, then once again our sad but common tale comes true. But provided that they do, then it looks like we may have a successful close of escrow after all.

There are of course other hitches along the way, usually some sort of issues on the Lending side. Not so uncommon things for Buyers to do is get “Pre-Approved” or “Pre-Qualified” by the Loan Agent and then go out and buy a bunch of stuff on their credit cards or buy a new car or even quit or change jobs. These are all items that will still affect their Loan and Qualifying until their loan is done and the escrow is closed. If the deal falls apart here at the very end of the process, yep still the end result for our REALTOR is the same, the sad but common tale.

But, if it goes through successfully our REALTOR actually gets paid for all of the hard work that they have done, but then has to split their money with their Broker. So, when you think that REALTORS make too much money, think of what they have to go through just to get a paycheck. Of course, people in general wish to get paid for their work and time spent, REALTORS are no different.


All scenarios are not covered in this brief description of a Buyer’s REALTOR, however all attempts were made to give a descriptive and accurate portrayal of an actual transaction.

Wednesday, June 22, 2005

 

LOS OSOS WASTEWATER PROJECT GETS THE "A-OK"

Great news for people that have been waiting to see if and when Los Osos would ever proceed and tackle the sewer issue that has been lingering for quite some time.

Here is some information provided by the Los Osos CSD from their website at http://www.losososcsd.org/notices.html

Ventura – The Second Appellate Court today denied CCLO’s appeal of the May 24, 2005 San Luis Obispo Municipal Court Verdict and dissolved the Stay that it had issued on June 1, 2005. According to the Appellate Court’s web site, the appeal petition was summarily denied and the Appellate Court’s Order is final. This action allows the Los Osos Community Services District (LOCSD) to proceed with construction of the Los Osos Wastewater Project.

The District Board of Directors on June 2, 2005 awarded construction contracts to three firms as soon as the stay was lifted by the appellate court. Monterey Mechanical of Oakland, California submitted the low bid of $46,167,000 for construction of the Wastewater Treatment Facility. Whitaker Construction of Santa Margarita, California submitted the low bid of $24,507,014 for construction of the collection and disposal systems in the Southern half of Los Osos. Barnard Construction of Bozeman, Montana submitted the low bid for construction of $43,493,400 for the collection and disposal systems in the Northern Half of Los Osos.

LOCSD expects that the contractors will break ground by the middle of July. Completion of project construction is expected to take two years.

For more information on the hearing or the loan program, please call Bruce Buel at the Los Osos CSD office at 528-9375.

Tuesday, May 31, 2005

 

Least Expensive Single Family Homes Available in SLO County

RandallTheRealtor Here!

I get a lot of calls and inquiries as to search for different areas of San Luis Obispo County for many people.

So, today I thought that I would go through the system and try and find the least expensive, single family homes available in SLO County. Mainly for those of you from out of the area, that are unaware of the current asking prices for those different areas of San Luis Obispo County.

You will find the asking prices, # of bedrooms, # of bathrooms, and the city in which the property is.

These prices reflect the current market, as for Single Family Homes. As most would expect Condos and Mobile Homes would, of course, be less expensive.

If you would like more specific info on properties of any kind, please feel free to visit my website RandallTheRealtor.com or email me at RandallTheRealtor@yahoo.com


$419,000 2b/1b Arroyo Grande
$379,000 1b/1b Atascadero
$450,000 2b/1b Cambria
$549,500 2b/1b Cayucos
$439,000 3b/1.75b Grover Beach
$429,900 2b/1.75b Los Osos
$449,000 2b/1b Morro Bay
$407,000 3b/1b Nipomo
$369,000 2b/1b Oceano
$389,900 3b/1.25b Paso Robles
$559,000 3b/2b Pismo Beach
$474,500 2b/.75b San Luis Obispo
$528,900 3b/2b Templeton




These are homes that were listed within the MLS system. Best attempts were made to make certain that the properties selected were actually Single Family Homes, however the information relied upon is not guaranteed as accurate. RandallTheRealtor does not represent any of the properties or owners of the properties listed above. This information is for informational purposes only and not intended to advertise these specific properties in any way. No warranties or guarantees with this information or of any kind are to be considered as offered by RandallTheRealtor, RandallTheRealtor.com, or any related website or business.

Tuesday, May 24, 2005

 

Summer is Coming!

Well, I think summer is officially on its way.

I went to Pismo Beach this past weekend and the weather was beautiful. I have the sunburn to prove it!

For anyone that has never been here...you have to come visit! There are lots of hiking/biking trails, wineries, good restaurants, shopping...pretty much something for everyone.

Again, for those of you that have never been here or are unfamiliar with the area, we have some pretty decent tourist attractions. One of the more famous ones would have to be Hearst Castle in San Simeon. That's a nice day trip to take along the coast and they have a few different tours that you can go on to view the property.

Another good thing to do is visit some of the great wineries around. Paso Robles has many, many wineries. San Luis Obispo also has quite a few. Paso Robles is approximately 30 minutes North of San Luis Obispo. East of Paso Robles and a bit North is Lake Nacimiento. This is a great lake to go to in the Summer. This area gets nice and hot during the summertime (90 to 100+ degrees regularly)...perfect for some water activities! If you want some nightlife, San Luis Obispo is probably your best bet. Now the nightlife is usually a bunch of college kids running about downtown...as San Luis Obispo is home to Cal Poly. There are at least 10 (or so) popular bars downtown and at least one or two usually have live music or something fun going on. During the daytime this same stretch of road, Higuera St, is usually pretty busy with many downtown shoppers. There are lots of shops with everything from shoes to ice cream!

If you wanted to do some bargain shopping, you may want to drop by the outlets in Atascadero or Pismo Beach. For those of you that are a little more relaxed about their vacations and are just looking to lounge at the beach...we have many, all with different feels to them. The more nothern beaches of San Luis Obispo County are on the whole more rocky (not so sandy). The most sandy beaches are Morro Bay, Avila Beach, and Pismo Beach. Grover Beach is also the spot for you people that love to ride dirt bikes, quads, and sandrails. The entrance to the beach to take is just East of Grover Beach on Hwy 1.

Now, this has just been a brief highlight for what San Luis Obispo County has to offer. There are plenty more things to do and see. So come visit and fall in love with California's Central Coast. And when you decide that you don't want to leave and you want to stay and live here...I will be more than happy to help!

Until next time!

Thursday, May 19, 2005

 

RandallTheRealtor's Introduction

Hello All,

This is my first Blog and I am sure that there will be many more to come!

I am planning on posting at a minimum of once per month, however I am hoping that I will find time, within my busy schedule, to post even more.

To begin with I will introduce myself...But in future Blogs you will find examples of what I can do and have done for clients. Also, I am planning to include information on the San Luis Obispo Area...Such as Restaurants, Hiking Trails, Things To Do, etc.

So, without further adieu...My First Blog!

Since moving to San Luis Obispo on the beautiful California Central Coast in 1998, I've established strong roots in the community. Through various local San Luis Obispo county activities and events I've met numerous people - in all walks of life. I've found each person to be an amazing individual, with each life telling a unique story. When starting my career in real estate, I immediately realized that there was a correlation. Each home - just like their owners - has a unique story to tell. Whether a new couple beginning their life together, a retiring couple winding down from their wilder days, or anywhere in between, let me be the one to hear your stories. By listening to you, I know I'll be able to find a property that is a perfect fit. And when you choose to move on to a new chapter in your life, I'd be more than happy to assist you in the sale and pass along that special story of your home.

From Paso Robles to Santa Maria and everywhere in between, with "RandallTheRealtor" real estate just became personal.

I am Here for YOU!

RandallTheRealtor
Century 21 Team Realty
San Luis Obispo, CA 93405

Office (805) 541-1921
Cell (805) 801-7223
Fax (805) 541-1947
RandallTheRealtor@yahoo.com
www.RandallTheRealtor.com

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