by Mary Pope-Handy | May 2, 2023 | Buying Tips, FAQs
If a buyer wants to view a property, does the listing agent have to show it to him or her outside of regular open houses? The answer might surprise you! Here’s a quick overview:
- The listing agent and seller decide about showings that the listing agent is expected to do. Does the listing agent have to show it privately, or during open houses, or only on one weekend before offers are reviewed?
- The listing agent will make showings possible for buyer’s agents with instructions on scheduling in the comments that members of the MLS can read.
- In many cases, the real estate licensee working with the home seller will hold the property open for the public on the weekend and sometimes mid-week as well. It may or may not be the listing agent holding it open.
- For safety reasons, many listing agents will not have private showings with buyers whom they don’t know and who aren’t clients of theirs. Realtors are harmed every year in the line of duty.
- For agency reasons, a listing agent who plans to only represent the seller may not want to have an appointment with a buyer who plans to write the offer with someone else.
- There are many other reasons why the listing agent will not personally show the home for sale outside of open house times, but may be able to arrange for the buyers to see it with another agent.
When does the listing agent have to show it?
The most important thing for buyers to understand is that the accessibility of the home for viewings depends upon the agreement, verbally or in writing, between the owner of the property and the agent/brokerage hired to market, negotiate, and sell the real estate as to whether or not the seller’s agent is obligated to show it privately.
It’s not an “on demand” situation where an interested buyer can insist on seeing the property as desired. To make an absurd point, no one would say “doesn’t the listing agent have to show it to me at 10 p.m.?” Without any thought, we know that’s unreasonable.
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by Mary Pope-Handy, Clair Handy | May 1, 2023 | Buying Tips, Selling Tips
When it’s time for your final document signing prior to the close of escrow or refinance, is signing with a mobile notary better, or should you do it at the title company? These aren’t papers that you can DocuSign – they must be done in person.
What is a mobile notary?
A notary, or notary public, is someone who can check your identification and verify that you are who you say you are. A mobile notary public, usually called a mobile notary, is someone who travels. They come to you.
Quick summary
- You often have a choice about signing with a mobile notary, or signing at the title company.
- Be aware that in most cases you will pay a little more in closing costs if you elect to sign remotely.
- Some lenders and title companies may nudge you to using an out of office signing and may have built that fee into their closing cost estimates for you, but it is optional, not mandatory!
- Even if you sign at the office, you may not get the escrow officer but still have a notary and still have an extra charge. Or just a higher fee than at other title companies for this service. Different title companies have different fees and policies.
- Best bet is to call the title company and ask if the fee will be less if you sign at their office.
During most of Covid, home buyers and sellers did not have a choice about where to do what we call a signoff: title companies did not allow signings in their office for most of the pandemic. Instead, buyers, sellers, and refinancing home owners would meet with a notary, often outdoors, to sign documents prior to the close of escrow or completion of the refi.
At the beginning of the pandemic, and for about the first 18 months or so, Realtors were not permitted to attend the signoff. We are now, though.
Fewer restrictions, title company office signing is now permitted
Now that things are opening up, consumers have the ability to sign at the title company in nearly all cases. A mobile notary remains an option, and may be preferable for you, but make sure that you are informed so that you are making a choice with all the factors on the table. (As of October 2022, if the Covid pandemic worsens again, this could change.)
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by Mary Pope-Handy | Apr 20, 2023 | Buying Tips, Contracts & Forms, Most Popular Articles, Selling Tips
If you are buying or selling a home in Silicon Valley today, you may be considering including the option to have a seller rent back after closing. What does this mean?
What is a rent back?
A rent back refers to the seller staying in possession of the home after it’s been sold to the new owner. Sometimes it is free, other times there is a cost. Normally, a security deposit is paid and held in escrow or by the new owner. (These are sometimes called rentbacks or rent-back agreements.)
Most of the time, it’s for 60 days or less, because longer than that and the buyer’s lender will consider the property as “non owner occupied” and the interest rate will be higher.
Upon close of escrow, the buyers get a gets a set of keys, but can only enter the property for certain reasons.
Rent back agreements
If you are going to do a rent back in Santa Clara County, you may run into one of three forms that sets this agreement in writing. These can impact each party’s rights and responsibilities.
CAR Forms
With the California Association of Realtor forms (CAR forms), there are two distinct addenda depending on the length of stay for the rent-back after closing.
- For stays up to 29 days, the form used is SIP for Seller In Possession, which is barely 2 pages long with no other addenda attached. With this one, sellers are called sellers and buyers are called buyers – not tenants and landlords, an important distinction due to the many tenant rights that exist in California. The agreement is called a license and not a lease or rental.
- For sellers remaining 30 days or more, the form is RLAS, Residential Lease After Sale. This is quite long – 8 pages plus ancillary documents, about 15 pages in all. With the RLAS, we no longer refer to the principals as sellers and buyers, but tenants and landlords. That reflects the shift in rights and obligations present in this addendum.
PRDS Forms
A second set of forms is sometimes used for real estate transactions, the Peninsula Regional Data Service (PRDS forms). In the past, these were popular just in some areas from about Los Gatos through Saratoga and Cupertino and then up the Peninsula and San Mateo County. They are not as widely used now, at least not in Santa Clara County, as most agents have switched to CAR forms.
PRDS has just one rent back form, the Seller Occupancy After Sale Addendum. It is 1 page long, refers to buyers and buyers and sellers as sellers.
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by Mary Pope-Handy, Clair Handy | Feb 15, 2023 | Almaden Valley (SJ), Blossom Valley (SJ), Buying Tips, Cupertino, Environmental Hazards, Foothill Areas, Los Gatos, Monte Sereno, Neighborhoods, Safety, Santa Clara County (all), Santa Teresa (SJ), Saratoga
High Voltage Power Lines from around the West Valley.
High voltage power lines are a “location issue” that impacts real estate values, and it sometimes elicits worry regarding safety.
High voltage power lines: how far is far enough?
Something we have spoken about recently with our clients is being far enough away so that if the tower and high voltage power lines were to fall, they’d miss your home and property. In our recent series of atmospheric rivers in January 2023, in San Jose one of these large transmission towers did fall down. It’s rare, but not impossible.
I have not seen a website that can tell us how tall any given tower is, but from what I have read online, it seems that most of them are under 200 feet tall, but some could be higher than that. In most cases, that puts the lines about 4 houses away if the lots are a typical 6,000 SF lot of 60′ across the front and 100′ deep.
We cannot speak to the concerns around potential increased risk of cancer or other problems. Each consumer should research that issue on his or her own.
Where are the high voltage power lines?
Years ago, I painstakingly mapped out the transmission lines from what I knew on the ground and what I could tell from tracing the Google satellite view. (You can find that link near the bottom of this article.)
Today, though, there’s something better than my map available online. The California Energy Commission has a map of the transmission lines that you can view using THIS LINK. Or click on the image at the left.
From the landing page you can zoom in or out. It covers the entire state of California – you might find it interesting to navigate around a little.
Also, a few years ago, PG&E published an interactive map where you can view the location of electric lines (I’ve filtered the imbedded map below to show Electric Transmission Lines in the South Bay), and another map of natural gas pipelines, searchable by address. This doesn’t cover the entire state, but it does cover all of the Bay Area / Silicon Valley.
The PG&E map:
On the map I hand-drew at the bottom of this article I did also include the location of schools. Quite a lot of schools do have transmission lines present.
What other location issues are there to factor in?
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by Mary Pope-Handy | Feb 1, 2023 | Buying Tips
Listing agents sometimes receive emails or calls from buyers’ agents with questions from home buyers before writing an offer. (This isn’t usually done by text.) Depending on how it’s handed or worded, this could help the buyers or hurt them.
A few years ago, I wrote an article on this blog about the real estate questions that consumers ask and the relationship between them and the ultimate outcome. Today we’ll again consider questions, but instead those which are posed to the listing agent by home buyers or their Realtor before an offer is drafted.
One way to think of it is this: when the questions are submitted, the listing agent will be sizing up those buyers and their agents. What kind of impression should a buyer try to make?
Getting noticed in a good way helps: questions from home buyers can be good
In the days or week prior to offer submission, the better Silicon Valley buyer’s agents will make sure that they show up on the listing agent’s radar (surprises are not usually appreciated, so getting a contract out of the blue without a phone call or email prior is a mistake which is likely to make that offer a little less likely to be the winning one if there are multiple bids).
This is a chance to ask some questions and also to let the seller’s agent know that there is progress on the buyers’ side.
Even if there aren’t any questions per se, it’s a good idea for serious buyers to have their real estate agent “check in” and express interest early on. This is helpful in cases where there’s a pre-emptive offer (you might still get a chance) but also with multiple offers since that agent who’s said hello will look more professional and better to work with. It can be a good first impression.
Some agents consider this contact “massaging the relationship” to establish that the buyer’s agent is knowledgeable, professional, pleasant, and would behave well in escrow.
There are many questions to ask when buying a house, but many of them will be answered by reviewing the disclosure package, so proceed carefully and try to avoid asking questions that are answered in the package.
Good questions from home buyers before writing an offer
Helpful questions from home buyers include these:
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by Mary Pope-Handy | Jan 23, 2023 | Buying Tips
Not long ago I heard someone gleefully say “I got a really good deal on a house!” When I looked up the county records, I discovered that the “good deal” was on a busy 4 lane road. The same kind of joyful exclamation might be made when purchasing next to a high voltage power tower, backing to a grocery store, or adjacent to a freeway onramp.
Guess what? If you buy a property with a major location defect, it will cost less than if you buy it in a quieter, interior neighborhood location. Getting the property for less doesn’t make it a good deal on a house. It just means you bought real estate that is less expensive because it’s an undesirable location. Someday, when you go to sell it, it will also sell for less than nearby homes in better areas.
Beware the “good deal on a house” thinking
Sometimes when home buyers score a great price on their new home it does not have a location defect. A closer look may reveal, though, that they didn’t look very hard at the disclosure package and there are fundamental issues with the property condition that will be expensive to repair, or that there are expensive items to replace.
Several times in my career, which is sneaking up on 30 years, I’ve worked with clients who were bargain hunters. This probably works better in locations outside of the highly competitive Bay Area and Silicon Valley markets. When these folks decide on a home, as often as not there is something wrong with the property that makes it less appealing to most buyers and therefore attainable for a lower price. Translation: it’s having trouble selling now, and if you buy it, you will have trouble selling it later, too.
The good deal on a house situation often comes down to one of these issues:
- Location defects. Realtors are notorious for saying “location, location, location” because it is crucially important. Choosing a less desirable one is the #1 mistake made by misguided home buyers looking for a steal of a deal.
- Land use issue, such as a large lot but almost no backyard or no useable yard (think large hillside lot with steep slope).
- Living space misallocation, such as having a very small kitchen but a house with 5 bedrooms.
- Property condition in need of expensive repairs and remodeling
What’s usually the case is that it’s difficult or impossible to fix what is wrong.
Related to this can be the issue of who you hire to assist you when buying a home. Maybe your sister just got her license last month in California and she lives 350 miles away, but if she’s your agent, she’ll give you 75% of her commission back. This is the largest purchase that most buyers ever make, and I would suggest that it’s wise to have the best agent guide and help you, not the cheapest one or the one who gives you a big rebate.
Most home buyers don’t know what to look for in the disclosures, inspections, or in the property condition when viewing the home, and most new licensees don’t, either. Consumers either don’t realize or don’t remember that not all buyer’s agents are equal in their skill set, knowledge, experience, or willingness to really fight for you. Some are just in it for a quick sale.
In short, the buyers looking for a bargain are setting themselves up to make a purchase that may not serve them as well in the long run as if they had made one with the basics in mind.
Next: 3 tips to help you get the best deal in any market.
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by Mary Pope-Handy | Jan 10, 2023 | Buying Tips, Finance Information, Multiple Offers, Selling Tips, Working in real estate
The probable buyer’s value for a home is very similar to market value, as a home is only worth what a buyer will pay. If the seller wants more than that, it won’t sell. If it’s unlikely that their ranges overlap at all, we’ll have a listing that is difficult or impossible to sell.
Quick summary on the probable buyer’s value:
- The probable buyer’s value is a range of what most buyers would pay for a particular property if there was no undue pressure on the buyer or seller.
- The probable buyer’s value will be impacted by many factors, such as the timing (if there are other houses which are more competitively priced or no other inventory), the property condition, the presentation of the property, the accessibility of the property (how hard is it to see – is it vacant or occupied?), the marketing (photos, floor plans, etc.), and many other things.
- The buyer’s terms weigh heavily on what the buyer can or will pay for any home.
Sometimes it can be tricky to estimate what a home might sell for. I usually talk with my seller clients about trying to find the probable buyer’s value. The seller may have a range of prices that he or she anticipates and would accept. So too with the buyer, whose range will likely be lower than the seller’s. The key is finding where the buyer and seller price ranges overlap.
Let’s take a hypothetical case of a home worth about a million dollars (see image above). The seller would love for the property to sell close to $1,040,000. The buyer would like to purchase it for $960,000. The agent’s competitive market analysis indicates that similar homes have sold or are selling at around a million dollars, give or take a percent or two. If the buyer and seller can come to a meeting of the minds, and there’s no undue pressure on either one of them, we have (hopefully) a sale and we have the fair market value.
But as we know, sometimes homes sell for much more than they would seem to be worth, and other times much less.
What causes property values to go above or below what would seem to be the probable buyer’s value? Undue pressure can certainly cause values to rise (desperate buyer who just has to get into a house, even if overpaying or desperate seller who has got to unload a property, even if selling too low).
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by Mary Pope-Handy | Dec 27, 2022 | Buying Tips, Home Improvement, Remodeling, Safety, Selling Tips
Younger home with large bedroom window, low to the ground
If you are buying or selling an older ranch style house or historic home in Silicon Valley, there’s a good chance that original bedroom windows may be smaller or higher than your home inspector might like. What is the big deal with the height or size of the windows? The inspection report may mention ingress and egress.
On this site and others of ours, we bring up health and safety topics from time to time. For example, we shared info on unsafe electrical panels here. In the case of fire or other emergency, children and adults may need to get out and rescue personnel may need to get in. If bedroom windows are poorly configurated, the room could end up being a death trap.
For fire safety, it’s important that:
- bedroom windows be an escape route for persons in the home (egress) – for this, they must be low enough to the ground and big enough so that children and adults can both get out in case of an emergency
- emergency responders such as fire fighters, with their large backpacks on their backs, can get in through the same openings (ingress)
When windows are too high, kids, and perhaps adults, cannot get out through them. And no matter how low or high, if the windows are too small, emergency personnel cannot enter through them.
Bedroom windows and safety: how big and how low do the windows need to be?
There are varied requirements, and exceptions, depending on whether the home is new construction or a remodel. Additionally, there are different rules for basements and 2nd story bedroom windows. Cities and towns each have their own codes, too. Your best bet is to check with your particular town or city to see what you must do if remodeling or replacing your windows.
In Los Gatos, ground floor windows must be
- no more than 44″ off the ground
- at least 20″ wide
- at least 24″ tall
- There are additional requirements, though – please see the link at the bottom of this article to view the details.
San Jose’s requirements are similar.
City of San Jose: Window Replacement Requirements
All sleeping rooms and basements – Must meet these specifications:
– Minimum 5.7 square feet opening*
– Minimum height of 24 inches
– Minimum width of 20 inches
– Maximum height to bottom of clear opening of 44 inches
* In order to meet the required 5.7 square-foot opening, either the width or height or both must
exceed the minimum dimensions shown. If bottom of clear opening is le
When remodeling your home and switching from single pane to dual pane windows, many people will be tempted to use the same sized windows with the new replacement set in order to save money, and in many areas, skip the need for permits and finals by not disturbing the stucco. But rather than target the least expensive way to upgrade your windows, I’d like to suggest making safety a priority. Upgrade not just your home’s energy efficiency, but its safety too.
Ranch style house with original casement windows – impossible for ingress by emergency personnel.
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by Mary Pope-Handy, Clair Handy | Dec 21, 2022 | Buying Tips, Cambrian Park (SJ), FAQs, Market Info, Market Reports, Selling Tips, Uncategorized, Working in real estate
The online home valuation websites are in high demand for spot checking a price. They are fast, easy, and free.
Everyone wants an easy answer, but often the easy answers aren’t all that accurate.
Online home valuation confusion
Sometimes our clients present us with “THE VALUE” of property per one of these free online home valuation websites sites and in some cases, they challenge us to disprove it (Zillow says it, or some other site, so it must be right, goes the thinking). If they want to buy a house which is listed for more than the auto-comped value, it may cause some emotional anguish. And if they want to buy one which is listed for less, they may feel a little giddy – unless multiple offers are looming.
The same is true with home sellers. They agonize when Zillow, Trulia or some other big name site places a worth on their property which is less than what they feel it should be.
Often the best way to respond is to show many of the online valuations and not just the one the client is focused on (often that’s either Zillow or Redfin, but some are attached so some other site’s numbers.
What might surprise a lot of people is the huge discrepancy in values given.
Sample auto comp values online
A good exercise is picking a home that you know fairly well and then seeing what the online home valuation tools say for each one. I picked a home that I know and ran the address through several websites that provide automatic pricing info. Here are the results, from low to high:
Not included in online home valuation study:
Eppraisal $2,072,000 (too high)
Included in the online home valuation study:
Chase $1,721,800
Collateral Analytics (via Realtor.com) $1,671,000
Redfin $1,644,906
CoreLogic (via Realtor.com) $1,631,300
NAR RPR $1,617,440 (subscription only for Realtors)
Zillow $1,580,300
Quantarium (via Realtor.com) $1,566,759
Bank of America $1,504,391
(Please note: the Trulia home value estimator is the same as Zillow’s Zestimate because Zillow owns Trulia.)
From top to bottom, the amount varies by $217,409! That’s a 14% gap between top and bottom. Had we included Eppraisal, it would have been even crazier.
How can the online home valuations disagree so much?
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by Mary Pope-Handy, Clair Handy | Dec 14, 2022 | Buying Tips, Environment
We’ve learned about two websites for measuring noise pollution and thought our readers would be interested. In some cases, it can be surprising that the sound levels are lower or higher than anticipated!
These are great tools for getting a general idea on volume, but you’ll want to check out any properties in person and perhaps even talk with neighbors to know for sure if it’s an issue.
Measuring noise pollution: two sites
How Loud
The first site is How Loud.
With HowLoud, the higher the score, the quieter the location. You can check for just the volume from different sources. In my experience, it does not cover all sources of noise. It does reference the influence of traffic, airports, and local sources of noise.
Noise Map
The other site is Noise Map.
Noise map appears to focus on the roar from airplanes landing and taking off as opposed to any other sources. It provides a decibel reading, which is helpful.
Sources of sound pollution
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If a buyer wants to view a property, does the listing agent have to show it to him or her outside of regular open houses? The answer might surprise you! Here’s a quick overview:
