Robert Guthridge's Blog

Practice Tips for Newer — and Not-So-New — Twin Cities Buyers’ Agents What does the Fall 2020 Parade of Homes (starting this weekend) have to do with passing out Realtor business cards? Just this: if a Buyer you’re working with goes through a Parade home and decides to buy it, you may have a “procuring cause” issue with the property’s builder and/or the agent representing them. Translation for laymen: you may not get paid. “Procuring Cause 101” That’s because the “payout” commission — the part of the commission offered to the Buyer’s agent — is technically payable to the agent who’s responsible for the sale. That’s usually the Buyer’s agent, but there’s a multi-factor test including such criteria as, “who introduced the Buyer to the property?” “Who had control of the Buyer?” and “Who wrote the offer?” Rather than get into a messy debate over a commission, most veteran agents — myself included — simply instruct their Buying clients to let the agent hosting the Parade open house...

When you buy a house and obtain a mortgage, most lenders will let you skip the first monthly payment. If you buy a house in April, you may not have to make your first payment until June 1st or even June 15th. Lenders will make this sound like a huge advantage, but are you really ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/3bw9kpU via IFTTT

Pluses & Minuses (2 Apiece) At least in my experience, for every long-time homeowner who’s (overly) invested in their home, psychologically-speaking, and can only see it through rose-colored glasses, there are another 3 (or 10!) hoping their home is a teardown, especially if it’s located in a hot area. Ditto for the listing agent waiting in the wings to sell it. Their two-part logic? One . The Seller doesn’t have to spend money fixing or updating anything,** never mind staging consultations, showings, or any other sales-related headaches; and Two . There won’t be any inspection issues to wrangle over . . . because there won’t be an inspection . Inspecting the Soil, Not the House Of course, those two pluses can be at least partially offset by these two negatives: One . While the home’s condition may not matter, the condition of the soil underneath it might (softer soil or land near wetlands can require pilings, which increase construction costs). As a result, any...

 . . . And Isn’t Likely to Volunteer Fake it till you make it.” –Career advice to newbie real estate agents. In a hyper-competitive field where sales bluster is an ever-present temptation, real estate agents aren’t exactly the type to betray ignorance or confess a lack of confidence. And even consummate Realtors with years of experience can’t predict the future, any more than Wall Street analysts, economists, or politicians can. Which is why no agent is likely to publish a tell-all with these four confessions: One . “I don’t know who’s going to buy your home.” Combine a highly fragmented market and a big metro area, and there are literally hundreds of active, local real estate agents (out of something like 10,000  licensed Twin Cities Realtors) who could potentially bring the Buyer for any given listing (Note: which agents are likely to show a given home is easier to predict). It wasn’t until after a decade selling homes that I worked on a transaction with the sam...

As Opposed to, “Income-Gushing Investment Property” If the facts are against you, argue the law. If the law is against you, argue the facts. If the law and the facts are against you, pound the table and yell like hell.” –Carl Sandburg’s advice for lawyers. What do Realtors often mean when they tout a “For Sale” duplex or other multi-family property as “perfect for an owner-occupant?” At least in my experience, one of the two following things: One . The property and location are nicer than the typical rental (“investment”) property. In fact, they’re  so much nicer that the owner may want to consider living in one of the units themselves . The flip side of that coin, however, is a tacit acknowledgement that . . . Two . The investment return(s) may be sub-par. Rents That “Could be Higher”  There are really only two reasons people own any property: to enjoy it themselves, or, to make money from it, i.e., to earn an investment return. In turn, there are two ways to ...

Unfamiliar Sight:  Empty Store and Parking Lot During Daylight Hours You know a retail store is popular when a steady stream of cars pulls up in front, and is momentarily frustrated/perplexed by the sight of an empty Costco store and parking lot — a store that might otherwise have thousands of people and hundreds of cars on a busy holiday weekend (full disclosure: one of those cars was mine). But, unlike most retail establishments on Labor Day, Costco is closed. Good! As both a regular Costco shopper and (very small) shareholder, it makes me like and respect the company even more. P.S.: the store is also closed Easter, Memorial Day, July 4, Thanksgiving, Christmas, and New Year’s. from RSSMix.com Mix ID 8230700 https://ift.tt/335il5l via IFTTT

When you buy a house and obtain a mortgage, most lenders will let you skip the first monthly payment. If you buy a house in April, you may not have to make your first payment until June 1st or even June 15th. Lenders will make this sound like a huge advantage, but are you really ... Read more from RSSMix.com Mix ID 8230700 https://ift.tt/3bw9kpU via IFTTT