Case Study: Move-Up Buyer – Part II

Having closed the sale of my client’s former home, our next challenge was to find the larger, nicer home they wanted.

That turned out to be a genuine challenge in our current market with meager listing inventory.

We were looking for a clean, sharp, well-maintained home with four bedrooms, at least 2,000 sq. ft., and (if possible) a three-car garage.

Despite searching MLS several times a day for 2-3 weeks, we found only two potential solutions.

One was slightly above my client’s price range with  non-negotiable sellers who were threatening to pull the home off the market if they couldn’t get “their price”, so we eliminated that one.

The second home was 2,200+ sq. ft. with four bedrooms, a three-car garage, beautiful hardwood floors, in move-in condition, and priced to sell.

We chose the latter home and made a full price offer (concurrent with closing on my client’s existing home) that included the seller paying my client’s closing costs.

The offer was accepted and the home inspection will be done tomorrow.

Stay tuned for Part III

 

Case Study: Move-Up Buyer – Part I

I’m currently working with a terrific young couple who followed this blog for a couple of months before asking me to help them move up to a larger home.

At our first meeting, a few weeks ago, we discussed their home’s value/equity position and considered various options.

As a precaution, I recommended that we get them pre-approved for the financing of their new home before listing their present home to ensure that they would be able to buy before listing their home.

As much as I enjoy working with homeless people, I don’t want to be the cause for their homelessness! 🙂

My recommended lender promptly approved their new financing and provided a firm, underwritten loan commitment.

Then, we listed their present home.

I recommended a “retail” price for the home, despite having a very low short sale comp two doors away, because the home was in model home condition and gorgeous.

The home went into MLS at 2:00 p.m. three weeks ago today and we accepted an all-cash offer by 6:00 that evening.

Fortunately, we sold their home to an investor with an all-cash deal that avoided what could’ve been a low  appraisal.

As part of the deal, I negotiated a rent-back provision so my clients could rent back from their investor purchaser until we could find and close on another home.

We closed escrow for the sale of their home this past Thursday after a smooth 18-day escrow.

Our next challenge?

Finding that nicer, larger home my clients want and need!

Stay Tuned For Part II

Case Study: Finding A Home With Guest Quarters

I have a buyer client who would like to buy a home with living quarters (aka a guest house) for their aging parents.

They can go up to $500,000 and would like to be on at least an acre in either Eagle or Meridian.

They would like separate living quarters with a kitchen, living area, bedroom, and full bathroom.

600 to 800 square feet of living area would probably work.

Sounds reasonable, right?

Well, it isn’t easy, thanks to a variety of reasons.

You wouldn’t believe the myriad rules that apply to separate living quarters in Ada County and its various cities.

There are regulations pertaining to zoning, attached vs. detached quarters, square footage, kitchens, and other features.

Naturally, the rules are inconsistent when considering properties in a city vs. Ada County.

To further complicate things, many homes are in subdivisions that have CCRs that prohibit having more than one living dwelling on a lot.

We’ve been looking for a year or more with no luck so far.

Interestingly, I have run across several such properties that were created without governmental approval and are illegal.

It shouldn’t be this difficult, given the number of families who are interested in this living arrangement.

I was told, yesterday, that the City of Eagle is considering a new regulation that would allow separate living quarters under certain circumstances.

If it passes, it’s a step in the right direction, but it would not remove the provisions in subdivision CCRs prohibiting guest quarters.

In the meantime, we will keep on looking.

 

Case Study: This Week's Buyer – Update #1

Here’s an update on my earlier post about last week’s buyer:

  • I researched 57 properties and previewed 11 of them.
  • I selected 4 properties that best matched my buyer’s criteria.
  • Over the course of the week, two of those four properties sold with multiple offers on each listing.
  • I showed my buyers the remaining two properties.
  • My buyers made a full-price, all cash, offer on the property they liked best.
  • The seller accepted my buyer’s offer as written within two hours.
  • I have opened escrow and the home inspection will be done this afternoon.
  • We are scheduled to close on 3/11, but will work toward closing sooner.

Closing will be somewhat of a challenge because we must coordinate our closing here with closing the sale of my buyer’s home in another state.
Stay tuned for further updates!

Case Study: This Week's Buyer

I am currently working with repeat past clients who are relocating to Boise.
They, and their family, have completed several transactions with me and we have become good friends.
Because I helped them buy and sell their previous home here, I have a clear understanding of what they want and where they want to live, which allows me to go shopping through their eyes.
Their present home is sold and scheduled to close in early March; thus we cannot consider short sales or tenant-occupied properties.
As many of you know, I don’t like to show homes “blind” (that’s real estate speak for showing homes the agent hasn’t seen).
I think it’s unprofessional and inconsiderate of their buyer’s time for a real estate agent to show homes they haven’t personally seen and evaluated.
When I’m working with buyer clients, I prefer to:

  • Counsel my buyers to identify needs, wants, likes, and dislikes.
  • Search MLS for listings matching my buyer’s criteria.
  • Review those listings thoroughly and eliminate the obvious misfits.
  • Drive by and eliminate listings that don’t meet my buyer’s criteria.
  • Preview (personally inspect) and eliminate listings that don’t meet my buyer’s criteria.
  • Show only those listings that meet my buyer’s criteria.

My Progress So Far:

  • My initial MLS search yielded 57 listings.
  • I eliminated 54 homes that were on busy streets, beat-up REO listings, homes not yet built, etc.
  • I have 3 beautiful homes that match my buyer’s criteria and will show them to my buyers this Saturday.

Yes, it’s lots of work, but it will make the home buying process easier for my buyers.
Stay tuned for results!