Thursday, September 29, 2011

Don't Put Your Clients in the "Litigation Crosshairs"

If you sell Real Estate in Las Vegas, I am sure you are aware of the controversy surrounding sellers not providing state required disclosures. This phenomenon began when the foreclosures went through the roof. At that time, agents were mis-interpreting our law regarding the Seller’s Real Property Disclosure (SRPD) and advising the Asset Managers for the “Bank Sellers” that they were exempt from providing the SRPD because the property was a foreclosure. This was bad advice. There is an exemption regarding foreclosure but it means when the title is conveyed during a foreclosure. It does not apply when the “Bank Seller” is selling their foreclosed assets.

So in 2008, this became the norm. Buyers were being told they HAD to waive the right to receive this disclosure, seller agents were declaring the seller would not sell the property to a buyer who would not waive the rights, and it went on and on. And this was only the beginning. Next lead based paint disclosures were not being provided to my buyer clients. The Listing Agents were declaring that the Asset Managers would not fill out or sign a lead based paint disclosure unless the buyer filled it out and signed it. Buyers are not supposed to sign a blank lead based paint disclosure. This is a Federal Requirement that was, and still is, being ignored.

We as agents have a fiduciary duty to advise our clients correctly. By insisting buyers waive disclosures or sign disclosures that are blank, is putting these “Bank Sellers” in the Litigation Crosshairs. Imagine if a buyer closes on a property, moves in, finds out from a neighbor that there was flooding from a burst pipe 2 weeks before closing, hires an attorney, tells the attorney that they were told they HAD to waive their rights to the disclosure or they wouldn’t get the property ~ do you see where this is going?

When I work with Asset Managers, I get the SRPD filled out and signed. It is a simple conversation ~ Provide the necessary disclosures so the “Bank Seller” is protected from future litigation. If you or “Bank Seller” don’t know of any material defects in property, state that. If you or “Bank Seller” know of any, disclose them. The financial ramifications that would result from a lawsuit are too high.

As an update to this post, as of October 1, 2011 with the passage of SB314 there is now a law prohibiting the waiver of the Seller’s Real Property Disclosure Form (SRPD). So if you are selling REO properties as either the seller’s agent or the buyer’s agent, make sure you get this form filled out and signed by the “Bank Seller”. And let’s use this as an example and start providing all required disclosures to buyers regardless of who the seller is. They were put in place for a reason. Now let’s get back to using them.


Jennifer Moran Foland ~ 702-232-7721

Keller Williams Realty Las Vegas

http://www.JenniferMoranFoland.com

Tuesday, September 13, 2011

Advice to FSBOs

To all those people out there selling their home on their own, my hat's off to you! As a professional in the business, I know first hand what you are up against. With that said, I have a few pointers I'd like to share to help make the process smoother for you.

First, prepare your home before putting it on the market. Remove clutter from all rooms by packing all items you don't use on a regular basis. Take down all personal pictures and mementos. Focus on curb appeal and make sure your home looks its best from the street. The walkway to the front door should be spotless and if your front door needs a fresh coat of paint, paint it!

Second, screen callers and be selective on who you let in your home. Best thing you can do is solicit the help from a mortgage professional to pre-qualify potential buyers before you let them in your home.

Third, don't discount Buyers' Agents - if an agent calls with a prospective buyer, agree to pay them a commission if it results in a successful sale. By doing this, you know at least the buyer is being represented by a professional and you know their agent will make sure all appropriate and necessary paperwork is filled out and signed.

And finally, disclose, disclose, disclose! Know the state requirements and be sure you provide all necessary documents to the buyer(s).

If you'd like a copy of my FSBO Reference Guide, go to www.JenniferMoranFoland.com and download a copy.

Good luck with your sale!

Wednesday, April 1, 2009

How To Go Green At Home

Do you want to make changes to incorporate Green into your life but you don't know where to start? Here's a guide to lighten your carbon footprint at home.

Give up plastic bags: Invest in some canvas bags. Most stores offer bags for as little as .99 so it is a wise investment. So you never are without your canvas bags, make it a habit to put them back in your car after unloading your goods. A few times of this and it will become a habit.

Clean Green: In the two most often-cleaned rooms, eco-friendly cleaners make a big difference. Be careful though; some products say they're "green" in reference to packaging only. If nothing else, vinegar and water clean most anything.

Give up plastic water bottles: Invest in a reusable stainless steel thermal bottle and stop contributing to the more than 60 million plastic water bottles that are thrown away each day in the US. Most end up in landfills or incinerators, and millions litter America’s streets, parks and waterways.

Purchase EnergyStar rated appliances: Look for the EnergyStar sticker. Also, change all faucets, toilets and showerheads to low-flow fixtures.

Unplug appliances when not in use. Think toasters, coffeemakers or hair dryers for starters. Electricity flows even when they're not turned on.

Save water: Turn off the faucet when you brush your teeth. Use the sink basin for rinsing dishes, rather than running constant water.

Insulate the basement: There are wonderful alternatives to fiberglass. Recycled denim is a new, popular choice.

Stock your workbench with nontoxic supplies: Choose water-based or plant-based caulks, sealers and stains. Also choose paints w/low or no volatile organic compounds (VOCs).Green your kitty litter:

Replace strip-mined clay litter with Swheat Scoop or Feline Pine, made of wheat and pine chips, respectively.

Plug computers and printers into a power strip and switch off when not in use. A lot of devices go on stand-by and use a lot of energy.

Furniture: Consider eco-friendly furniture such as those that use sustainable-wood frames and soybean-oil fill foam made from soy-based products.

Shade glaring sun to cut your energy bill.

Choose sustainable bedding.Use rechargeable batteries.

It's not as tough as it used to be to go green at home. So incorporate some of these changes into your everyday life and be one of thousands that are doing their part to reduce their carbon footprint.

For more information on Green Living, go to http://www.jennifermoranfoland.com/Nav.aspx/Page=%2fPageManager%2fDefault.aspx%2fPageID%3d2129795

Thursday, March 19, 2009

To Feng Shui Or Not To Feng Shui

How to make your house stand out amongst the competition.

I recently heard the quote "You've got to do what it takes to get it done." This especially rings true in today's Real Estate market.If you are selling or want to sell your property, you have to do more than put a sign in your yard and have your property listed in the MLS. It takes some "thinking outside the box" to get your property sold. This is where staging comes in.

Once you decide to sell your house, the most critical step is preparing it to be put on the market. What you do or don't do prior to allowing your house to be shown to prospective buyers, can mean the difference between getting offers or not getting offers. Most people know what "staging" a property means. But I take it one step further and advise my clients to hire a Feng Shui Stager to evaluate their house.

Feng Shui is both an art and a science and uses visible and invisible forces to find maximum harmony and balance. A Feng Shui Stager may re-arrange furniture, add or take away color, move or remove figurines/artifacts, utilize chanting, numerology and other traditions to balance and harmonize your house, so when a buyer walks in they immediately feel they are in a "positive" home. Feng Shui practitioners can also utilize techniques to dissipate the negativity of financial woes, which is more relevant today than any other time in recent history.

Hiring a Feng Shui expert may cost a couple hundred dollars for an initial consultation and for a complete overhaul it is usually priced based on square footage, so it does mean an investment up front. But all things being equal, a staged house, especially one that has been staged using Feng Shui principles, will cause the property to sell faster and at a higher price than the "non-staged" competition. So when you are considering the question to feng shui or not to feng shui, I think you know the answer.

For more information on the Las Vegas Real Estate market, go to http://www.jennifermoranfoland.com

Friday, March 13, 2009

Buyers - Have You Seen Your Good Faith Estimate?

I feel the need to write an informational piece on the Good Faith Estimate because too many times buyers come to me with little or even worse, no knowledge of what one is and its importance in the Real Estate transaction.
In short, a GFE is a worksheet provided to the "would be" borrower by their lender/broker which outlines the fees associated with borrowing money, the monthly PIMI, their down payment and estimated prorations. It is used to inform the borrower of how much money they should expect to bring to the closing table.
When a borrower initially applies for a mortgage, they are to be provided with an estimated GFE. Once they get an accepted offer on a property and their lender/broker locks in their rate they should be provided with a Final GFE. It shouldn’t vary greatly from the estimated except where charges were based on a percentage of purchase price, the interest rate and of course fees associated directly with that particular property. This is a requirement and a critical tool for the buyer in the Real Estate transaction. As a REALTOR, I require a copy of the GFE upfront from my clients’ lender/broker so I can be confident I know how much money my client needs to close the transaction and to ensure the accuracy of the HUD-1.
Recently the RESPA Rules were reformed and these changes will be effective Jan. 1, 2010. That may seem a long way off but it’ll be here before you know it. Here are some of the changes that’ll apply if you decide to purchase Real Estate after 1/1/2010.
1. The new GFE will have a summary of key terms of the loan, an estimate of total settlement charges, and an estimate of total settlement costs.
2. Page 3 offers a comparison chart format so a lender/broker can present the borrower with additional loan options (this is not a requirement but as a borrower you can, and should, request it from your lender/broker)
3. Page 2 explains what settlement charges may vary in the HUD-1 and which ones cannot change.
4. The HUD-1 form is redesigned to have the same categories of loan information as the GFE form.
5. The HUD-1 has a table on page 3 that lists the settlement charges as they were on the GFE and as they are on the HUD-1 so that the borrower can easily compare the charges. (There are many other changes to the RESPA rules which can be found on HUD’s website.)
The long and short of it is if you are applying for a mortgage to buy real estate, make sure you receive your GFE from your broker/lender and that you fully understand the figures and how they apply to you and your transaction. If you have any questions regarding GFEs or other Real Estate matters, go to www.jennifermoranfoland.com or call me directly at 702-232-7721.