BUYERS QUESTIONS
1.)
Q-1: Why should I hire a Real Estate Guide?
A: In the past, real estate agents
were the only source of information for Buyers and Sellers. Today's
Buyers and Sellers are better informed than in the past. We’re
grateful for the technological progress of our business, which
allows us to be incredibly efficient helping you find and acquire
properties. We’re not pushy sales people. We’re
professional Guides. >> back
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Q-2:
How do we work?
A: We’ll start with a map
and your dream location. We’ll arrange a conversation
with one of our brokers/agents, who will listen intently to
your plans and interests. We’ll ask whether you’re
looking for a home, condominium, or a lot to build your dream
home. We’ll want to know your vision: a house in a town,
a country escape, or a slope-side retreat. Then we’ll
talk some rough numbers. >> back
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Q-3:
Are We Compatible?
A: The most important thing we’ll
learn from this first conversation is do
we have the compatibility to work well together? We
take your potential business seriously. We take our business
seriously. We respect the magnetics of personality types. In
other words, we’ll attract the
people that we may attract, and we’ll also repel the
people that we must repel. For these reasons, we’ve referred
lots of business to our competition over the years. And that’s
okay. Just like you, we don’t want to work with just
anybody. >> back
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Q-4:
What if we decide to work together?
A: If we all agree that we want
to work together to help you achieve your Park City Area real
estate objectives, we will formalize our agreement in writing.
This Loyalty Agreement outlines the responsibilities we have
to each other in the pursuit of your goals. We
will not work with you if you have a concurrent Buyer-Broker
Agreement with any other Agent/Broker in our local area. This
could subject you to paying double commissions, and is not
in alignment with the relationships we desire or require of
our clients. >> back
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Q-5:
How do we help you find what you want?
A: Let us do the homework.
We’ll
preview all the properties that fit your criteria and select
the best. We
won't waste your time looking at properties
that just won't suit you. We can arrange a showing of anything
on the market, thanks to our membership in the Multiple Listing
Services (MLS) of the Park City Board of Realtors® and
Wasatch Front Regional MLS. We make sure you see all appropriate
properties, no matter which brokerage has them listed. Contrary
to popular belief, we will even arrange for you to see homes
that are For Sale By Owner (FSBO). Read our Testimonials
to learn about the steps we take to make sure our clients
find the right property!
>> back
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Q-6:
How long does it take?
A: Our schedule
is your schedule. Some of our clients find properties they
love immediately. Others take a more leisurely approach.
Our objective, always, is to direct you to properties that
will suit your needs relatively quickly. But if it takes
months and miles, that's not a problem. Our cars are comfortable
and we’ll have
fun in the process.
When we find the one, we’ll guide
you through the nitty-gritty legal and technical details
and make sure you reach your destination without any nasty
surprises along the way. You get to relax and enjoy the journey
as well as the destination. >> back
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Q-7:
What if you're located elsewhere?
A: If you’re still searching
and have to leave the area, we’ll bird-dog the project
for you, pursuing every possible avenue. This is where our
technological proficiency really works for you. If a property
that fit’s your parameters gets listed, you
will automatically receive an email from us within 15 minutes
of the listing becoming active! In the meantime, if
you see an ad or a sign for a property that looks interesting,
call us, and we'll secure further information and photos.
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Q-8:
Can't I just do it myself?
A: Sure, but why would you? The
Internet has opened up a world of information that wasn't
previously available to homebuyers and sellers. The
data on listings available for sale is almost current - but
not quite. There are times when you need the most current
information about what has sold or is for sale, and the only
way to get that is from a competent agent or broker. In
fast moving markets like ours, good agents depend on their
personal relationships to learn about available properties
before they ever hit the computer systems…and these
properties are often sold before you ever knew they were
available. Do you want to risk missing good opportunities? >> back
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Q-9:
How do you get the best price?
A: Make offers as clean as
possible, with minimal contingencies. Seek diamonds in the
rough. Many buyers can't visualize "potential"...if
you can, that's an opportunity. If you want to finance your
purchase, get pre-approved by a local lender and submit that
approval with your offer. We understand the emotional undertones
of negotiation. Often we’ll compose a letter to the
Sellers telling them about you and your family, explaining
why you love their property, etc… We'll submit it
along with the offer to purchase. It’s extra work for
us, but the payoff for you justifies the investment. Making
yourself real to the Sellers can have enormous impact. >> back
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Q-10:
How do you arrange financing?
A: The majority of Park City
and Deer Valley® Resort buyers secure financing through local mortgage
brokers. We’re also happy to work together with your
private banker from a depository institution outside the
State of Utah. Beware
using out of state mortgage brokers not licensed in Utah! We’ve
seen an increasing number of failed transactions in these
circumstances, because out of state underwriters just don’t
understand our local marketplace. For example, our local
amenity-rich “Condo-Hotels” are
some of our most treasured investments…and are appreciably
different from what most lenders think of when they hear “condo-hotel.” We
dare you to try it—they’ll turn and run! >> back
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Q-11:
How much are the local Property Taxes?
A: In Wasatch and Summit counties,
you can expect to pay about 1.1% of the assessed value of
your property each year for property taxes. Utah is a non-disclosure
state, so the sales prices of real property are not reflected
on the public record. The county assessor will re-assess
your property on an annual basis. Primary residents can receive
a discount of 45% on their property tax bill for their home
by filing a notification with the County. >> back
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Q-12:
Can we do this long distance?
A: These days, we handle most
closings long distance, thanks to email, FedEx, and the wire-transfer
system. Our Guides will handle all the details of the transaction,
in conjunction with a local title/escrow company. >> back
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Q-13:
What will you do for us?
A: Besides helping you find
and acquire your dream home? We handle the big picture and
lots of little details like:
- Order the appropriate inspections.
- Work with your lender and the appraiser to be certain your
loan is approved in time, if you’re leveraging other
people’s money.
- Confer with the title company about hundreds of closing
details and the preparation of your settlement statement.
- Help you transfer utilities into your name.
- Make sure you receive a recorded deed and title policy.
- Remain your primary source of information and assistance,
months and years after closing.
- Locate and select a local property management firm to take
care of your home while you’re away.
- Refer you to all of the affiliate services (transportation,
child-care, etc…) that will make your property search
and subsequent enjoyment of the area more efficient. >> back
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Q-14:
How can we be sure this is right?
A: The bottom line is that
we won't sell you any property that we're not comfortable
with or don't believe in. The reason? We want you to do business
with us again and refer us to your friends and associates. >> back
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Q-15:
When do we start?
A: How about now? Explore these
pages and see what ignites your imagination. Then grab that
map and contact us to begin tracking down your dreams. The
bottom line is that we won't sell you any property that we're
not comfortable with or don't believe in. The reason? We
want you to do business with us again and refer us to your
friends. >> back
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Q-16:
What happens when we fall in love with a particular property?
A: Smile. Our guides will help
you prepare an offer. We use State-approved Utah Real Estate
forms with modifications and addenda specific to this area,
with additional provisions tailored for you. >> back
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Q-17:
How much earnest money is required?
A: Your offer to purchase is
normally presented with a 3% to 5% earnest money deposit,
often wired-transferred to a local title company or Brokerage
trust account within two days of acceptance. New developments
sometimes have unique purchase agreements that require specific
amounts of earnest money, often up to 20% of the purchase
price. >> back
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Q-18:
When can we close?
A: If the seller accepts your
offer, you can expect the closing to take place within 30-60
days, depending on your due diligence requirements and financing. >> back
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Q-19:
Any flexibility in those prices?
A: Some sticker shock is normal.
Prices are high compared to some other areas of the country,
but so is the value. Prices for Park City and Deer Valley® Resort
real estate are negotiable, with most properties sell within
5%, of their list price. While there are always exceptions,
it's unrealistic to expect to find many "steals." Demand
continues to be strong, giving sellers a fair amount of leverage. >> back
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Q-20:
How does Agency work in Utah, and who pays agent commissions?
A:Good question, as this varies
from state to state. In most transactions, there is
a Listing Agent and a Buyer's Agent. A listing
contract creates an Agency relationship between Sellers and
their agent/broker, and specifies a fixed amount of commission
the Seller has agreed to pay for the services of their agent/broker. When
a home sells, the commission is split between the agents
for the Seller and the Buyer.
Some agents market themselves as buyer's agents, exclusive
buyer's agents, or buyer's representatives, indicating they
are working exclusively for the buyer in a particular real
estate transaction. This means they have the full array
of fiduciary responsibilities to their Buyer clients. Even
though the Seller is technically paying the commission, the
Buyer's agent represents the Buyer, not the Seller. The
National Association of Realtors (NAR) conducts a specialized
designation program called Accredited Buyer's Representative
(ABR). Agents/brokers who market themselves as
ABR's have invested extra time and money taking
classes, and have passed a test to earn this designation. >> back
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Q-21:
Is it legal for an agent to represent both a Buyer and a
Seller in Utah?
A: Yes, as long as the relationships
are fully disclosed, and agreed to in writing by all of the
parties involved. Agents/brokers who act in the capacity
of representing both a Buyer and a Seller in the same transaction
are called "limited agents." They are limited
because their fiduciary duties to their clients are limited...they
can't say or do anything than would compromise the negotiating
position of either of their clients. Limited
agents can facilitate the transaction, handle the paperwork
for both sides, and act in an unbiased capacity to complete
the transaction. >> back
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Q-22:
Why would I want a limited agent? Why wouldn't I?
A: Good agents handle limited
agency with delicacy and professionalism. Communication is
streamlined. The agent has more to gain and more to
lose, so they pay extra attention to the details. If
they don't, call their broker...Immediately! The potential
drawback is that limited agents cannot suggest prices or
other terms that could potentially harm the negotiation position
of either party. They may complete the paperwork, but
only according to your instructions. >> back
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Q-23:
The property I want to buy is listed by an agent. Do
I need my own agent or can I negotiate a lower fee if I act
as my own agent?
A: If you have to ask this
question, you probably don't have the necessary knowledge
to properly represent yourself. It doesn't cost you
anything extra to have your own agent represent you because
the Seller is already paying for it. If you don't have
your own agent, the Seller's agent will often represent both
you and the seller as a "limited agent" who
facilitates the transaction with unbiased responsibilities
to both parties. >> back
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Q-24:
Can I negotiate the price of a bank owned home?
A: Everything in real estate
is negotiable. However, banks are more sophisticated about
pricing than they were years ago. Those "Get a great
deal on a foreclosure!" days aren't what they used to
be. Lowball offers generally don't go very far, particularly
in the Seller’s Market we are currently experiencing
in the Park City/Deer Valley® Resort marketplace. >> back
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Q-25:
Do I use a standard Purchase Contract if I buy a new-construction
home? What risks and exposure do I have if I use the wrong
one?
A: Most people don't know the
difference between the various purchase contracts used in
Utah, when to use which agreement, and the
big problems you might experience if you use the wrong one. Don’t
worry, our experienced brokers and agents can educate you
about the differences to protect your interests and your
earnest money. >> back
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Q-26:
How do I know if the price per square foot is reasonable
or if I’m overpaying?
A: Though this seems like an
easy question, it is not as simple as it sounds. Keep in
mind that much more goes into the market value of a house
than it’s square footage. For example, two houses next
door to each other can have the same square footage, but
if one has three bathrooms and the other has only five, guess
which one will probably be worth more? It will also cost
more per square foot. However, if you compare recent
sales of similar homes, the cost per square foot should be
similar to those properties. ParkCityRealEstateGuide’s
agents and brokers can help you compare "apples to apples." >> back
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Q-27:
Can I negotiate when making an offer on a new-construction
home?
A: Making an offer on new construction
is not the same as making an offer on a resale home. Builders
know how much it costs them to build and sell the home, and
roughly the amount of profit they require to take on the
project in the first place, so there is typically little
or no negotiating. You can try, of course, because "everything
in real estate is negotiable," but do not expect too
much. >> back
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SELLERS QUESTIONS
Q-1: My home has been
listed with an agent for over three months and I’m
not happy. What options do I have?
A: All listing contracts have
expiration dates. When is yours? If it is not coming
up soon, tell the agent and/or his manager that you want
to cancel your listing. Often they will let you cancel easily,
since they do not want to build ill will in the community. If
they won't, you can pull your home off the market until the
listing contract expires. Call your attorney if you
have questions. >> back
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Q-2:
I signed a listing agreement, but am having second thoughts
about selling. How do I cancel and will it cost me anything?
A: It should be pretty simple.
Just tell the agent you have changed your mind and decided
not to sell after all. Since your cooperation is required to
sell the house, most agents won't give a hard time about canceling.
Their hope is that when you later do decide to sell, you will
get back in touch with them. However, if you attempt to put
it back on the market during the contracted listing period
using another agent, your original agent will attempt to enforce
their contract. >> back
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Q-3:
Just listed with a realtor for 3 months but decided I would
like to change to another. Is that allowed or legal?
A: Since you have a contract
for 90 days, you would have to get your broker's permission
to be released from the contract so you can go with another
agent.
Most of the time they will attempt to dissuade
you from making the change, but will release you because they
don't want to engender any bad will. The agent will be reluctant
of course, especially since you just "changed your mind," and
cannot point to any lack of performance problems with your
present agent.
The agent can refuse to release you from the
listing agreement and there are various reasons they may do
so. In that
case, you're either stuck or you have to simply take your home
off the market for the rest of the listing period. >> back
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Q-4:
A Little Story About Pricing Your Home...
A: So you’ve decided to
sell your home and have a fairly good idea of what you think
it is worth. You've been collecting flyers from the neighbors'
homes over the past year. Plus, you can always trust
the neighbors to tell you the truth. Being a sensible
home seller, you schedule appointments with three local listing
agents you know. Each Realtor comes prepared with a "Comparative
Market Analysis" on fancy paper and they each recommend
a specific sales price. Amazingly, a couple of the Realtors
have come up with prices that are lower than you expected.
Although they back up their recommendations with recent sales
data of similar homes, you remain convinced your house is worth
more. When you interview the third agent’s figures, they
are much more in line with your own anticipated value, or maybe
even higher. Suddenly, you are a happy and excited home seller,
already counting the money.
But which Realtor do you choose?
If you’re like many people, you pick Realtor number three.
This is an agent who seems willing to listen to your input
and work with you. This is an agent that cares about putting
the most money in your pocket. This is an agent that is willing
to start out at your price and if you need to drop the price
later, you can do that easily, right? After all, everyone else
does it! The truth is that you may have just met an agent
engaging in a questionable sales practice called "buying
a listing." He "bought" the listing by suggesting
you might be able to get a higher sales price than the other
agents recommended. Most likely, he is quite doubtful that
your home will actually sell at that price. The intention from
the beginning is to eventually talk you into lowering the price.
Why do agents "buy" listings?
There are basically
two reasons. A well-meaning and hard working agent can feel
pressure from a homeowner who has an inflated perception of
his home’s value. On the other hand, there are some agents
who engage in this sales practice routinely.Whichever the case,
if you start out with too high a price on your home, you may
have just added to your stress level, and selling a home is
stressful enough. There will be a lot of "behind the scenes" action
taking place that you don’t know about. Contrary
to popular opinion, the listing agent does not usually attempt
to sell your home to a homebuyer. That isn’t very efficient.
Listing agents market and promote your home to the hordes of
other local agents who do work with homebuyers, dramatically
increasing your personal sales force. During the first couple
of weeks your home should be a flurry of activity with buyer’s
agents coming to preview your home so they can sell it to their
clients. If the price is right. If you and your
agent have overpriced, fewer agents will preview your home.
After all, they are Realtors, and it is their job to know local
market conditions and home values. If your house is dramatically
above market, why waste time? Their time is better spent previewing
homes that are priced realistically. Later, when you
drop your price, your house is "old news." You will
never be able to recapture that flurry of initial activity
you would have had with a realistic price. Your house could
take longer to sell.
The news gets worse...
Even if you do successfully contract an above-market price,
your buyer might need a loan. The lender requires an appraisal.
If comparable sales for the last six months do not support
your sales price, the house won’t appraise. You deal
falls apart. Of course, you can always attempt to renegotiate
the price, but only if the buyer is willing to listen. Your
house could go "back on the market." Once your
home has fallen out of escrow or sits on the market awhile,
it is harder to get a good offer. Potential buyers will think
you might be getting desperate, so they will make lower offers.
By overpricing your home in the beginning, you could actually
end up settling for a lower price than you would have normally
received.
Remember those two conscientious agents who got aced out of
the listing? If your listing agent routinely engages in "buying" listings,
he has probably aced out scores of other agents in the same
way. Being human, Realtors talk to each other. If they don’t
like your listing agent, not as many of them will be showing
your home.
In short...
You may have ended up with an agent who was good at selling
you, but not good at selling your house. And you’re going
to pay them a commission for it. It is human nature for
you to want the highest price for your home. However, when
you choose the agent who promises what you want to hear, it
often leads to stress and frustration. Most of the time, it
will take you longer to sell your home. Possibly, you will
end up selling at a lower price instead.
Or maybe as a result of reading this article, you will choose
one of the "good" Realtors in the first place. They
are out there, you know. >> back
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For
Sale By Owner QUESTIONS
Q-1: I’m selling
my home "by owner," and a real estate agent who
wants to show my home to a buyer said something about "agent
protection." What does this mean?
A: This refers to the agent wanting
to protect their right to a commission should you elect to
sell to their client. It identifies the client, the commission,
and prevents you and that buyer from negotiating directly at
a later time, with the intent to cut the agent out of the deal
and not pay a commission. >> back
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Q-2:
On a FSBO, what is financial obligation, if any, to sell
to client with Buyer Agent?
A: That depends
on whether you choose to "cooperate" with
agents or not. If you do not, agents will not bring buyers
to your house. If you do wish to "cooperate" the buyer's
agent will prepare an offer that will typically ask you
to pay the agent's commission. The offer will ask you to either
pay the commission directly to the agent and their broker,
or apply a "credit" to the buyer so that the buyer
can pay the commission. Either way it comes out of the proceeds
of your sale.
On the one hand, you might save money over
traditional agent marketing. On the other hand, you won't
make as much as if you sold the home at its full market value. Studies
have shown that sellers working with agents usually get a
higher price for their home than seller who work by themselves.
It is a difficult decision for you to make...Choose wisely. >> back
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Q-3:
How do you make an offer on a "for sale by owner" home?
A: Contact us and we will help
you prepare the necessary paperwork. The owner of the
FSBO should have prepared for this contingency and have the
proper forms available. You can also obtain forms from
your local stationery store. >> back
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Q-4:
How can I find out how much my house is worth?
A: In your situation, you may
actually have to talk to several Realtors, get their opinions,
and come up with some sort of consensus. I would not
recommend hiring an appraiser, however, even though a lot of
books recommend this. Appraisers are better at "justifying" a
price than in determining market value. >> back
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