Your Version of “As Is” May Leave You Unsold

Understanding “as is” in the Hilton Head area real estate market.

I think consumers watch way too much HGTV.   TV is NOT reality and a good agent will explain to you the laws in your state and practices in your market.  Real estate is truly local. For example, in the Hilton Head area market, we have a different purchase contract than the rest of the state.  In Section 8.  It clearly states:

“8. CONDITION OF PROPERTY. At Closing, all appliances and systems referenced in Section 4, including heating, air conditioning, electric and plumbing systems, fireplace/chimney, irrigation, pool and spa, shall be in good working order, and their physical condition shall be subject to reasonable wear and tear regardless of age. Further, the structure shall be reasonably sound and the roof free of leaks at Closing.”

This is very important to note to sellers who have a property that is a little older or perhaps has some maintenance issues to address.

Also of note is that this area of the contract also does address what buyers expectations should be:

“Other than the Property condition requirements set forth in this Section, the Property shall be conveyed in its present condition “As Is”. “As is” means the Property shall be conveyed in the condition existing on the Effective Date, subject to the terms of this Contract. The Property is a resale property. It is not new construction. Normal wear and tear is to be expected. For example, fogged windows, appliance rust, overgrown or dead landscaping, tile or countertop cracks, missing or torn screens, and uneven walkways or driveways are considered normal wear and tear and are not subject to repair unless otherwise required by this Contract. Seller shall not be obligated to make the Property comply with current building codes if the Property was constructed in compliance with the then applicable building codes. The Property shall be habitable, and Seller must repair deficiencies which render the Property uninhabitable as determined by licensed professionals.”

This is certainly a lot different than what you see on TV, right?     In a hot selling market sellers still need to make sure things are in working order.  And even in a hot buying market, buyers can’t expect a home to be perfect.   I like this clear definition in our contracts, but not enough agents take the time to clearly explain it to their clients.

Also of note, is that Sellers can not expect an “as is” clause to relieve them of the responsibility to disclose any material fact affecting the habitability of the home.  They still MUST be honest and truthful when filling out the mandatory Property Disclosure.  This even applies to every FSBO (for sale by owner) sale.   It also does not remove the buyers right to inspect the property.

Furthermore, we as agents need to explain how lending affects the sale of the property.   Especially in the case of FHA/VA loans, the government wants to ensure that property is habitable and in good working order.  They won’t grant the loan otherwise.  For example, if the roof is more than 20 years old (sometimes as little as 15 years!) they won’t grant a loan unless it is replaced.  This can be done in two ways, with the seller doing it during the inspection repair period, or WITH APPROVAL, an escrow for the roof (or repairs) to be done by after closing.   The funds are often requested from the sellers proceeds.

In fact these days, I’m often seeing this same request from conventional lenders as well.   A bank doesn’t want to grant a loan on a property that could potentially be damaged by negligent maintenance.   Understandable right?

Well a lot of sellers still think that they can mark their home in the MLS for sale that they will accept financing (FHA,VA, & Conventional) but then sell it “as is.”   Yeah, no.    Especially, if your definition of “as is” is to do nothing.

And agents, if you are marking your homes in the MLS that you are accepting financing and you know that your seller won’t fulfill such requirements, you are MISREPRESENTING!   Such listings should be marked Cash Only.  Sellers should be warned that this practice can severely limit their pool of buyers and can actually cost them more money as the home lingers on the market, than simply repairing items to make the home “habitable’ and in “good working order.” It also will definitely affect the amount buyers will be willing to offer, as well as appraisals.

Agents, you may also want to consult with an attorney about using an entirely different contract than the standard one in our Hilton Head area market if your seller insists on a bare bones “as is” sale, because the transaction won’t match the language in ours.

If any of you, even my fellow agents, have any  questions about this, I’m happy to help.  I’m not posting this as sour grapes, I am truly posting to help everyone get the deal done.  I love my job and I love helping people sell and buy homes, but we all have to understand the process to accomplish that.

Best Wishes !

What is Your Home Worth?

Are you wondering what your home is worth and if it’s time to sell?   Well it very well might be.  Inventory is down 10% overall in the Hilton Head area, and even more in the the under $300,000 price point.  Many buyers are struggling to find the home they really want because of the inventory shortage.   But you are wondering,  has my home value recovered from the recession…   And what would it be valued at on the market today?

Well check out this instant valuation tool built right into our website at http://loribee.exphiltonhead.com/sell.php  and let me put my 17 years of expert marketing and listing experience to work for you!   Lori Bee, exp Realty, 843-505-3132

http://loribee.exphiltonhead.com/sell.php

Cozy oceanfront homes with fireplaces on Hilton Head Island

Feeling frigid today?   Would a Hilton Head Island ocean front home with fireplace warm you up? There are 35 to choose from today.  Call me if you’d like this kind of cozy living. Lori Bee, eXp Realty, 843-505-3132

Click for Cozy Fireplace Homes on the Beach! Or create your own search.

 

 

January Views

Which January View is You?

Which view would you enjoy most on a 70 degree plus January day? The beach view from Hilton Head Island, or the May River view from the coastal village of Bluffton?

Customer vs. Client

The new SC Real Estate Agency Disclosure explained by Lori Bee.

New SC Disclosure of Real Estate Brokerage Relationships

So it’s a new year, and there are lots of new changes to real estate law in South Carolina.   I can’t begin to cover them all in a blog, but wanted you to be particularly aware that the previous Agency Disclosure that wasn’t required to be signed,  now does require acknowledgment, aka signature(s).    It is still not a contract, nor does it obligate you to any one firm or agent.  It is simply a required disclosure.

Why the change?  Well, consumers now have the option to remain “customers” in a transaction, and not sign a exclusive agency agreement obligating them to a commitment to a brokerage and agent.  The agent would simply facilitate the transaction.  All parties still have a responsibility to be honest and ethical divulging known material facts, but would not afford the consumer with client level of services including offering advice, negotiating on your behalf, protecting confidentiality, nor be your advocate. You would essentially be representing yourself with the agent simply completing the paperwork to make the deal happen.  The agent does NOT represent you.

It is my recommendation that obtaining an exclusive right to sell or buyers agency contract is always still in the consumers’ best interest as it does provide client level duties of:  “obedience, loyalty, disclosure, confidentiality, accounting, and reasonable skill and care.” It also allows an agent to provide advocacy, negotiation including advising you on price, terms and inspections, and allows the agent to promote your best interests.  Aren’t those the reasons you solicit an agent in the first place?

This disclosure also includes explanations on Single, Dual and Designated Agency which most consumers have become familiar with in past disclosures. It’s still a good idea to read all documents in a real estate transaction thoroughly so you understand.

This new disclosure is required by law for all agents to present to consumers at “first substantive contact.”   ‘Substantive contact’ means contact in which a discussion or dialogue between the consumer and the associated licensee moves from casual introductory talk to a meaningful conversation regarding the selling or buying motives or objectives of the seller or buyer, financial qualifications, and other confidential information that if disclosed could harm the consumer’s bargaining position.

The purpose of this blog post is to keep consumers informed of the changes in relationships in real estate.  Working with a real estate agent that understands and can explain agency relationships should be a high priority in your search for a real estate agent.   It’s important that you understand your options.

I look forward to a prosperous 2017 together.

Happy Thanksgiving

Happy Thanksgiving from Lori Bee, exp Realty.

I am grateful for your business, your referrals, and most of all, for your friendship.  I hope you and yours, have a very Blessed Thanksgiving.

happythanksgiving

Summerton Model overlooking pond/lagoon, just listed in Sun City!

2 bdrm/2bth Summerton Model just listed in Sun City with Lori Bee, eXp Realty. 843.505.3132

Check out this maintenance free, Sun City 2 bedroom/2 bath with formal living room and screenporch with great pond & lagoon views filled with wildlife. Priced to sell at $175,000. More information found on website here.  Call Lori Bee, eXp Realty, at 843.505.3132 for your showing today.

http://www.propertypanorama.com/instaview-tour/hhi/354615

Bee at the Beach….

Lori Bee asks if you want to “Bee at the Beach?” 843.505.3132 eXp Realty

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New Logo. What do you think?

Rebranding is hard.   Or maybe I overthink it.  You want to appeal to everyone, but you want to be different.  You want to bee remembered.  Oh, there I go again.

So yes, for many years I was known as Bee Realty, when I had my own firm in Waxhaw, NC (Charlotte area).   I still own the domain name. And everyone knew me by my last name and logo.  It stood out.  Short. Easy.  Well, easier to remember than it is to forget that marriage.  HA HA!

But hey, I got a great name out of it.  Not to mention 18 yrs  and 2 beautiful kids.   I always look at the bright side. I’ve now had this name longer than I haven’t.  Bee positive !  😀

So now that I am back in full time sales, and can “brand” myself again…  well, why break it if it wasn’t broke.   So here’s my new logo designed by the fabulous Justin Oldt of Auditory Aesthetic Designs.  What do you think?  Is it me?  Does it make you want to “Bee at the Beach?”

And yes, of course I bought the domain name too: http://BeeAtTheBeach.com  And I certainly hope you will remember that for you or anyone else you know, who wants to live here.   Let me help y’all BEE here too!  843.505.3132

 

And the survey says….

Lori Bee, Realtor with eXp Realty Hilton Head, shares her most recent satisfaction survey.

Satisfaction of my clients is of the utmost importance to me.   Proud to have received this 100% overall satisfaction rating.   It was my pleasure Brad!

 

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My most recent satisfaction survey…. Proud to say he was 100% satisfied! Yay!

Dreaming of Daufuskie?

Doesn’t this video help you dream of Daufuskie Island and Haig Point Club? Well I can help you make that dream a reality!

There’s something about a trip to Daufuskie that takes you on a trip back in time, and to a quieter way of life. The only way to get to Daufuskie is by boat or by ferrry. Haig Point has it’s own ferry service available for residents and guests, and the rest of the island is serviced by various ferry and charter services. Very few cars are permitted on the island (outside of Haig Point) and the primary mode of transportation is by golf cart. So yes, it is a little difficult getting here but oh so worth the effort.

The 8 square miles of Daufuskie Island hold a wealth of history, pristine golf courses, sparsely occupied beaches, artistic & culinary surprises, and friendly people. There is also an Equestrian Center, a an artisan village, farm & community garden, a marina if you happen to have your own boat, and a lighthouse you can actually rent for a weekend or special event.

I am happy to arrange a Discovery Experience for you on Daufuskie Island to find out if you’d like a piece of paradise here. In the meantime, here are the current listings for Daufuskie Island. Contact me at 843.505.3132 or email me to arrange your personal tour of homes.

Daufuskie Island Homes for Sale

 

Lori Bee, eXp Realty serving Hilton Head Island, Bluffton, Beaufort and the surrounding SC area. Contact her at 843.505.3132 or e-mail her at Lori@LoriBee.com .