Q: We sold our home with the stipulation that we could Rent-Back the house for up to six weeks. The Buyer’s agent is now asking us to sign a Rental Agreement and put up a deposit. We feel this is a little silly based on the circumstances. Our friends just rented back their home for two months without any rental form. My husband does not want to sign, which is causing a flurry of e-mails. How common are these Rent-Back agreements anyway?
A: Not common enough! Savvy agents will reference a Rent-Back agreement in the blank part of the purchase contract under “additional terms or conditions.” Other agents will simply write something about a rent-back period and rate, but not stipulate that a written rent-back form will be executed. Regardless, many Sellers feel it is a personal affront to even suggest a rental deposit is required. It is important to note: Sellers seldom damage the home, the movers often damage the property ~ for example, marked-up vinyl or hardwood, doors and door jams. It’s equally important to remember that rent-back agreements protect everyone’s interest. So much so that those agents should incorporate a Rent-Back form with the original purchase offer or counter-offer.
Now is certainly not the time for a cumbersome three-page residential lease agreement. Instead, make sure the agents involved use a preprinted one- or two-page rent-back form. It includes terms such as “seller in possession after close of escrow” or “seller occupancy after sale.” The rent-back forms should not make your husband uneasy. In fact, its purpose is to make him feel at ease about his brief tenancy.
4/3/10
Send questions for the Market Wise column in the San Jose Mercury News to Pat@SiliconValleyBroker.com
The June 2010 Completed Sales Report for zoneCupertinoSingle-Family Homes saw a closing of 76 sales receiving 101.45% of list price. These closings represented a median price of $1,005,000 and an average price of $1,014,145 Total Sales: $77,075,095
The June 2009 Completed Sales Report for zoneCupertinoSingle-Family Homes saw a closing of 64 sales receiving 97% of list price. These closings represented a median price of $979,444 and an average price of $1,020,672. Total Sales: $65,322,988
June 2010~Zone Cupertino Condos/Townhouses had 16 closed sales receiving 98.81% of list price. These closings represented a median price of $649,000 and an average price of $587,625. Total Sales: $9,402,000
June 2009~Zone Cupertino Condos/Townhouses had 17 closed sales receiving 97% of list price. These closings represented a median price of $550,000 and an average price of $525,412. Total Sales: $8,932,000
KAPOWICH REAL ESTATE is a leading real estate brokerage for buyers and sellers in Silicon Valley, providing an unparalleled level of research, education and service. The father/son team has extensive experience in single-family and townhouse/condo buying and selling. Their specialty is “move-up” and “down-size” transactions for clients who wish to sell a home and buy a replacement simultaneously.
Q: My wife and I moved into our new home and found that the seller had switched out the washer and dyer. Our buyer’s rep did write in the offer “appliances per MLS” in the personal property clause of the contract. This is a little sleazy, but the agents involved are of no help. What should we have done? Include the brand, model and serial number of the appliances?
A: Yes! It’s been a sign of the times that agents, now more than ever, need to go back to the basics. Years ago it was common to write down the make and model of all appliances, fixed or portable. If it’s in writing, sellers will be less likely to play slight-of -hand with such large items. Plus, buyers should complete a written walk-through of the property one to three days before the property changes hands. Both agents should be communicating their expectations prior to a walk-through for the sake of avoiding surprises. Conversely, some sellers try to save a few bucks by not removing unwanted washers, dryers and refrigerators and the old freezer in the garage, later claiming, “Well, we thought it would be a nice gesture.”
2-6-10
by Pat Kapowich SiliconValleyBroker.com, owns Kapowich
Real Estate in Cupertino. E-mail questions to him at
pat@siliconvalleybroker.com
Q: We were recently involved in a multiple-offer situation. The seller’s agent collected six bids at the 5 p.m. deadline on Tuesday. This agent presented the offers to the seller on Wednesday. We were then granted a multiple-counter offer, along with the other three top offers. Clearly, the other buyers had already gone above the list price and this was a squeeze to get the seller a second round of bidding. This seems like a real questionable area of real estate. Besides, how could a seller’s agent present an offer better than the buyer’s broker who created it?
A: They can’t. This is usually a control issue that listing agents accept as a Standard of Care. Granted, some sellers are elderly or too ill to withstand in-person presentations. However, real estate attorneys find is hard to believe that listing agents promote the idea of not meeting every buyer’s agent in person, and especially avoiding including sellers in live presentations. After all, it’s the sellers who will be entering into a legally binding contract with the buyer. Having sellers miss in person-presentations and negotiations prior to signing a buyer’s offer is, according to one prominent real estate attorney, just plain silly.
8-1-09
Pat Kapowich, SiliconValleyBroker.com, owns Kapowich Real Estate in Cupertino. Send questions to pat@siliconvalleybroker.com
Q: We are thinking about making an offer on a property, The seller’s agent is insisting we make the offer through him because we attended his open house. Can he do that? We are not comfortable with using the same agent. Will we lose out on the home if we hire our own broker?
A: Don’t worry, I’m sure the agent would be glad to see an offer presented to
his sellers, no matter who is handling the buyer. You are wise to seek
your own professional. Dual-agency exists anytime the same real estate
brokerage firm is representing both the buyer and the seller. Unfortunately,
while the licensee is acting in such a transaction might be striving for twice
the compensation, done correctly, dual-agency is three times the work, four
time the responsibility, and five times the liability.
These transactions can easily produce a regretful seller, or, more likely, a
remorseful buyer. There is nothing more foolhardy than a seller promoting a
dual-agency situation, hoping to save commission dollars. Most brokers
don’t know the ins and outs of properly operating as a dual-agent. Keep in
mind, too that unhappy buyers are apt to file claims, which usually include
naming their agent. It’s problematic (expensive) when it’s the seller’s agent who
purportedly failed the buyer.
3-1-08
Do you have any questions for the new real estate Q&A Market Wise column in the SJMN? If so, please email them to: info@SiliconValleyBroker.com
Q: We were prepared to wait almost a week to make an offer on a property because the listing agent said offers would be reviewed Wednesday at 4 p.m.. The day before the offer deadline, the home was designated a pending sale on the Multiple Listing Service’s consumer Web site. We thought we were upset, but our buyer’s agent was absolutely livid. Our agent complained to the listing agent’s managing broker who apparently couldn’t care less.
Is such behavior by the listing agent acceptable; or is this unethical sequence of events punishable by some governmental agency?
A: If both licensees are members of all the local, state and national associations of Realtors, then your buyer’s agent can file a grievance against the seller’s agent at the local level. If the grievance has merit it will be forwarded to a Professional Standards Committee for a hearing where all parties will be present. If a licensee is found in breach of the Realtor by-laws or code of ethics, he or she can be fined and/or have their membership suspended or revoked.
Real estate attorneys agree that the listing agent’s actions would not warrant a legal action or a hearing at the Department of Real Estate. However, that said, many licensees will bring a real estate attorney to a committee hearing.
Saturday, July 7, 2010
By Pat Kapowich, SiliconValeyBroker.com owns Kapowich Real Estate in Cupertino. E-mail questions to him at pat@SiliconValleyBroker.com
