There are many aspects of the real estate industry that combine to make it what it is. Within each are nuances that are subtle, but contribute in their own way to every transaction.
As nuances, they are usually not significant enough to be featured in an article so we thought we’d randomly review some of them together.
Negotiating is a part of every interaction in real estate, whether overtly or not. It can start within the family, whether or not to sell, then moves to the Seller and Agent interaction. Agents audition for the job of selling the home and Sellers don’t want “to give it away.”
When an offer appears they align to focus on negotiating with the prospective Buyer. Buyers experience the same process only in reverse, to buy a property.
Most negotiations focus on price, but the real nuances that make things work involve other matters, the emotional, timing and practical matters that have a direct impact on the participant’s lives.
Taxes seem to lurk around every transaction. Buyers don’t want to pay high real property taxes and are sensitive to the current tax rate of properties they are looking at. Tax liens can affect the course of negotiations or even impede a Seller’s ability to complete a sale.
Tax consequences of a sale must be known and evaluated. This is very important and a critical component of investment real estate. Real estate Agents should have working knowledge of tax matters, but are not accountants.
We are at the end of the calendar year which many people use as their tax year. The timing of a transaction can affect your taxes, act accordingly.
Real estate is affected by many laws and ordinances. Most residential transactions don’t involve an attorney in the West, but if you have any doubt about something it is money well spent to buy some consultation time.
It is amazing how often laws or ordinances change. Agents aren’t lawyers, but have working knowledge about the Federal, State and County laws and ordinances that will affect you and your buy/sell.
It’s the details of those many controlling factors that make a transaction safe, or risky, depending on how they impact you specifically.
When you buy a home it is a good idea to change the locks and get new keys. Call a locksmith and get them all keyed alike. That way you don’t have to worry about any keys that may be floating out there with family members, ex-boyfriends, etc.
Very cheap insurance for your peace of mind. Likewise, change the garage door opener connection to your remotes if you have a newer unit.
Beware the Prepayment Penalty. Most residential loans don’t have them, but read your documents carefully if you got a “special” loan. We’ve encountered two lately, one paid $300,000 to complete the sale while the other is leasing the property rather than pay over $700,000 if he were to sell!
Noise encroachment is a personal matter. Whether from an airplane, off road vehicle, or the fighting couple or garage band next door, its effect on people is on an individual basis.
This is but one of many items that you can’t see yet can have a tremendous impact on your enjoyment of your property. Pay attention to the environment of your potential home.
Our Advice: This is just a glimpse into the vast variety of matters that contribute to the character of a transaction. They can help or hinder, but their impact is undeniable.
Your Agent will go over many, many things during the course of a buy/sell. Make sure you understand what you are being told and why.
Like listening to the mechanic talk about your car, you don’t have to understand in depth, but get the concept so you know if it is going to start when they are done and how much it will cost you.
Lisa Wetzel & Jim Valentine, CDPE, SFR, work for RE/MAX Realty Affiliates in the Carson Valley. Visit carsonvalleyland.com or call 775-781-5472 for information.
