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I've moved out of the active practice of real estate. I got tired of people looking at me like I'm scum. We all carry around the burden of real estate agents who are scum. So now I'm a referral agent, and am all the happier for it.

What do you think about this? I'm trying to boost the understanding of real estate among the public. Is this helping? Post a comment. And follow me on www.twitter.com/TimBosworth

Real Estate is to me an entrepreneurial activity. Entrepreneurial ideas are the life's blood of my practice. For my entrepreneurial course, Entrepreneurship on Line, go to www.hatman2.blogspot.com. For entrepreneurial writing go to www.kearneymusicschoolmurders.blogspot.com

The Credible Offer, Part 37: The Agreement of Sale, Certificate of Occupancy

Paragraph 18 is a big, long, ugly thing dealing with "Notices, Assessments & Certificates of Occupancy." so big, long, and ugly that I won't include it here.

In Philadelphia, this document is informally referred to as a "City Cert" which shows if there are any judgements or zoning issues related to the property. It's required no later than 5 days before settlement. A "clean" city cert tells us that there are no judgments or violations as of the date of the search. It doesn't search everything, and it doesn't talk about financial liens. For example, there may be a $5,000 water bill due on the property, but it wouldn't find that. There may be a ticket issued for improperly putting their garbage out. It wouldn't show that. But it covers most things. The seller's agent is required to get that.

What do you think about this? I'm trying to boost the understanding of real estate among the public. Is this helping? Post a comment. And follow me on
Twitter.com.

Real Estate is to me an entrepreneurial activity. Entrepreneurial ideas are the life's blood of my practice. For my entrepreneurial course, Entrepreneurship on Line, go to www.hatman2.blogspot.com. For entrepreneurial writing go to www.kearneymusicschoolmurders.blogspot.com

The Credible Offer, The Agreement of Sale, Part 36: Zoning Contingencies

Paragraph 17 gives you the opportunity to make your offer contingent on rezoning the property. Maybe you want to buy a home and change it into a bed and breakfast, but the area is not zoned correctly. But if you can't make it into a B&B you don't want the home. So, you make the offer contingent on your ability to change the zoning.

Every municipality uses zoning laws to control the types of businesses that develop in a given area. So, you have to apply for a zoning change.

You haven't selected such a thing in your offer, thank goodness. It can take months to get such a thing granted, if it will be, and in the meantime, your seller is paying the expenses of the house, i.e. insurance, taxes, etc. Your chances of getting a seller to sign such an offer are probably slim, unless you get the right seller of course.

What do you think about this? I'm trying to boost the understanding of real estate among the public. Is this helping? Post a comment. And follow me on
Twitter.com.

Real Estate is to me an entrepreneurial activity. Entrepreneurial ideas are the life's blood of my practice. For my entrepreneurial course, Entrepreneurship on Line, go to www.hatman2.blogspot.com. For entrepreneurial writing go to www.kearneymusicschoolmurders.blogspot.com

The Credible Offer, part 34: Home warranties

Paragraph 16 talked about home warranties. A home warranty is like an insurance policy on the systems in the home. Generally they cover air conditioning systems, appliances such as the dishwasher, refrigerator, etc.

They serve as an inducement to the buyer. A seller might offer a home warranty to cover his home during the period up to settlement and the buyers for a year or so afterward. It's not nirvana on earth. It won't cut your grass or wash your car. But it can save you a little bit and reduce the risk of the buyer.

Usually, if your washing machine breaks down, you contact the company, and they sens somebody out to check out the problem. They that person calls an approved repairman. You pay a for the repair minus a deductible.

Different warranties work differently, so always check with the company. What you can't do is go hire your own repair person and send them the bill. That doesn't work.

A lot of buyers don't want to go for it, because they don't want to mess with all the steps. But, it can be a plus for you as a buyer. Some buyers make purchase of the house contingent of the seller paying for a home warranty. Usually payment is done at time of settlement.

What do you think about this? I'm trying to boost the understanding of real estate among the public. Is this helping? Post a comment. And follow me on
Twitter.com.

Real Estate is to me an entrepreneurial activity. Entrepreneurial ideas are the life's blood of my practice. For my entrepreneurial course, Entrepreneurship on Line, go to www.hatman2.blogspot.com. For entrepreneurial writing go to www.kearneymusicschoolmurders.blogspot.com

The Credible Offer: the Agreement of Sale, Part 33--Water and Sewer

Paragraphs 14 and 15 cover water and sewer contingencies. You've waved these in your offer because you can't change the water or sewer system, so even if you found problems about either, you'd have to address it at the water and sewer company levels.

The agreement of sale is also used in rural areas where there are other kinds of water and sewer systems in place. Maybe the house you want to buy has a well and a septic tank. You might want to test both systems to make sure they were working properly and have your offer contingent upon those inspections as well. You treat the contingencies exactly as you would the property inspection contingency.

Well, that doesn't apply to your offer, so so much for that.

What do you think about this? I'm trying to boost the understanding of real estate among the public. Is this helping? Post a comment. And follow me on
Twitter.com.

Real Estate is to me an entrepreneurial activity. Entrepreneurial ideas are the life's blood of my practice. For my entrepreneurial course, Entrepreneurship on Line, go to www.hatman2.blogspot.com. For entrepreneurial writing go to www.kearneymusicschoolmurders.blogspot.com

The Credible Offer, Part 33--Agreement of Sale, Radon Inspections

You also have the right to inspect for radon. Radon is a colorless, odorless, potentially lethal gas more prevalent in some parts of the country than in others. It results from the decomposition of certain kinds of rocks, I'm told. You have every right to test for Radon.

If you're going to save some money, here's where I would save it.

You did not select it as a contingency in the agreement of sale, so your offer is not dependent upon it. You can still test for it, but you can't turn down the property without consequence if you find Radon present.

But, no big deal here. You can buy a tester at a local home improvements store for a reasonable amount. A Radon test might cost $200. And even if you do have a Radon problem, simply leaving a window open or door open a few hours a week will allow the Radon to escape and drive your risk down to 0.

In Philadelphia, we don't have a radon problem because, I'm told, so much of the bedrock has been removed for sewers, water conduits, etc. Well it's your decision, and if you feel more comfortable knowing, go ahead. $200 isn't that big a deal if it makes you feel better.

What do you think about this? I'm trying to boost the understanding of real estate among the public. Is this helping? Post a comment. And follow me on
Twitter.com.

Real Estate is to me an entrepreneurial activity. Entrepreneurial ideas are the life's blood of my practice. For my entrepreneurial course, Entrepreneurship on Line, go to www.hatman2.blogspot.com. For entrepreneurial writing go to www.kearneymusicschoolmurders.blogspot.com

The Credible Offer, Part 32--Paragraph 12: Wood Infestation Inspection Contingency

You also have the right to inspect for termite damage, and there's on excuse for not doing this one. It's usually cheap, $75 or so, and can be done at the time of the other inspection.

I showed a house once that had severe termite damage. We were in the basement, and my buyer reached up and grabbed a two-by-four supporting the floor. It crumbled to dust in his hand. We looked at each other and were out of there.

Usually there's only minor damage, if any. And treating it is easy and can be handled on a yearly basis. Still, you need to know if any of those little beasts are chowing down on the house.

I remember in Wisconsin termites were not so much of a problem. The babies couldn't live through the winter. Here in Pennsylvania, the winters are not severe, and they make it through just fine.

So have a termite inspection. It's a good investment. You have chosen to have one. You have the same response options as on other things. If they find termite damage, you can accept it as is, turn the house down and walk away with your escrow money, or work with the seller to craft a sensible response.

What do you think about this? I'm trying to boost the understanding of real estate among the public. Is this helping? Post a comment. And follow me on
Twitter.com.

Real Estate is to me an entrepreneurial activity. Entrepreneurial ideas are the life's blood of my practice. For my entrepreneurial course, Entrepreneurship on Line, go to www.hatman2.blogspot.com. For entrepreneurial writing go to www.kearneymusicschoolmurders.blogspot.com