Doug Buenz
Real Estate Broker
Alain Pinel Realtors
(925) 463-2000
I am a local Real Estate Broker with
Alain Pinel Realtors serving the
Pleasanton and the Tri-Valley
area. I am an avid watcher of the
local real estate market, as well as
cultural and political events.
But that is what I do, not who I am... » read more
Real Estate Q & A
Unreasonable buyers asking for more money from Seller
I entered into a contract to sell my house a couple of weeks ago. Because the market is slow, I ended up taking a lot less for my house than I was planning on. Now the buyers have had inspections, and they want me to credit them $3500 for repairs, most of which are complete B.S. I am really mad about this. Should I tell them to take a hike? Fred W.
Fred, take a deep breath and relax. In some ways this market can be called "Revenge of the Buyers". Remember 4 or 5 years ago when Sellers told buyers things like "take it or leave it" or "don't ask for anything to be fixed... we have 2 other buyers who want it". Now the tables have turned. Don't get hung up on the details of what the buyer wants. Some may be legit, and some might be categorized as outright extortion. But so what. If you want to sell you house, swallow hard and sign it. If you think you can do better in this market, tell them no. It is really that simple. But tread carefully, because working with buyers today is a little like trying to feed a squirrel. They don't really trust you, they are skittish, and at the first sign of trouble they go scampering for the woods. If you refuse the $3500, it could end up costing you $5000, $10,000, or even $20,000 more to get the next buyer in contract.
Stubborn Seller Won't Move Out?
I am buying a house in Pleasanton, and the contract is signed and the escrow is getting ready to close, and the seller decides he does not want to move out at close of escrow, but wants a week after close to move out. When we express the fact that this will not work for us, he threatens to cancel the contract. Can he do this? Ben in Pleasanton
Ben, I have good news and not so good news. The good news is that no, the seller can not unilaterally cancel a ratified contract just because he doesn't get his way. If all contingencies are removed and you are coming down to the wire, the seller can't arbitrarily start changing the terms. And he certainly can not cancel a contract. Real estate contracts are bilateral. they require the agreement of both the buyer and seller. If he attempted to cancel the contract, you could likely tie up his property so he could not sell it to someone else, and take him to court to force him to sell to you under the terms of the contract. That is the good news. The not so good news is that this course of action is time consuming, emotionally draining, and costly. If the seller becomes difficult to deal with, try to relax and work around him if you really want the house. You can always take him to small claims court after the close to recoup any out of pocket expenses you incur. Unfortunately, there is virtually no protection in a contract for an obstinant seller. You can either put up with him as best you can, and then seek renumeration in small claims court, or threaten him back, but it is difficult if not impossible to physically force the seller out of the premises. As always, consult an attorney about the specifics of your case.
Confusion on Commission Agreement?
Doug, my friend listed her house with an agent with the understanding that if one of her friends (named specifically) buys her property, the agent would be compensated at 4% commission. So one of her friends has made an offer. When the agent sent my friend the estimated pay out from the transaction, the agent put in her commission as 6%. Her explanation is that the original deal was only good until she listed the house in MLS. Is this ethical? Or legal? Or standard practice? Ginny C.
Ginny, that is a great question. As is often the case, the devil is in the details. Any agreement involving the sale or transfer or brokerage of real estate in California must be in writing to be enforceable. So if there was no written clause regarding the friend, then your friends are out of luck. So is it legal? I think a better question is the agent legally entitled to the 6%. Based on what you have described, the answer is yes, since there obviously is no written agreement regarding this situation. Is this ethical? I always have a problem with any party that does not honor the spirit of an agreement, even if the details are not specifically spelled out. But keep in mind that neither you nor I heard what was actually said. Again, this is why all agreements dealing with real estate must be in writing. I this standard practice? Again, I am not sure what you are referring to, but if there is an exception or exclusion to the commission agreement for one party, there normally is a time limit during which the party must act. Whether or not that was clearly stated in writing, or clearly explained, is a matter of conjecture at this point. The lesson here is to always get agreements in writing, especially if they are modifications to standard agreements.
Nestled in the rolling oak-studded hills of West Pleasanton, The Preserve is a high end community of semi-custom and custom homes. Located just West of Foothill Rd at the end of Stoneridge Drive, these homes were built originally by Presley homes, who was later acquired by William Lyon Co. They were built between 1997 and 2001. The Preserve is surrounded by approximately 100 acres of open space, complete with hiking trails, as well as a neighborhood park.
There are 4 basic floorplans in The Preserve, ranging from 3400 sq ft to over 4300 sq ft. The Laurel is a single story floorplan with approximately 3420 sq ft featuring 3 bedrooms (all suites), with a den/optional 4th bedroom. A second single story floorplan with 5 bedrooms and 3 1/2 baths was added after the initial phase, with approximately 3600 sq ft. This model was mostly built on sloped lots, and a downstairs bonus room was usually added in this event. The Le Blanc floorplan features 4 bedrooms plus a den, 4 1/2 baths, and approximately 4000 sq ft. The largest floorplan is the Mounier, which features four bedrooms plus a loft and den, with approximately 4350 sq ft. Some of these floorplans offered expanded bonus space over the detached garage, which brings the square footage of this model to almost 5000 sq ft. These homes feature both 3 and 4 car garages, and lot sizes typically range from 1/3 to over 1/2 acre, many with views of the valley and/or backing to open space. Many of the homes in The Preserve feature detached guest houses, from studios to 2 bedroom, 1 bath units up to 800 sq ft. This is a highly desirable feature to many buyers. Prices in The Preserve range from $1,500,000 to over $2 million.
Kolb Ranch Estates is a pocket of high end semi-custom homes and lots within The Preserve. They range from 4500 sq ft and up, on 1/2 to 2/3 Acre lots. These homes were built in 2007, and are in the $2 million to $2.5 million price range. There are also custom lots for sale in the $1 million range. There are also a handful of custom homes at the end of Crosby Dr that were built in the last 5 years.
Buyers are attracted to The Preserve because of its incredible setting, topography, and views of the ridge and the valley. It is also extremely convenient to all major commute points, including BART, I-580, and I-680. Buyers who are commuting to Oakland, San Francisco, and the peninsula are especially attracted to the location because of commute considerations. Values in The Preserve have held up reasonably well in the current market, and there seems to be strong demand for homes in this neighborhood.
Here is a video tour of The Preserve and Kolb Ranch Estates:
Post on Wednesday, February 27th, 2008 | Permalink
I recently went to Zillow.com to find a “zestimate” for a home in The Preserve area of Pleasanton. For those not familiar with The Preserve, it is a high end subdivision of approximately 100 homes nestled in the hills of West Pleasanton, surrounded by acres of open space and ridgelands. It has always been a very popular neighborhood because of it’s scenic quality and convenient location.
Anyway, the home I checked was over 4000 sq ft, and the “Zestimate” came in at around $1,575,000, which is easily $200,00 or more less than it’s probable value today. I was shocked that it was so low, since the last sale in the neighborhood was $2,175,000. And there is a new home in Kolb Ranch Estates, which is in The Preserve, that just sold for $2,530,000, and it is approx 4500 sq ft. Now, one key point is that The Preserve is on the norther border of Pleasanton, and Dublin is just on the other side of I-580.
Low and behold, the Zillow estimate used comparable sales from Dublin to arrive at the “Zestimate”. Anyone who is in real estate, or has more than a passing interest in Pleasanton real estate, this is “Ztupid”. Pleasanton homes, especially on the high end, command much higher prices than Dublin homes do. In fairness to Zillow, they don’t claim to provide appraisals, and they recognize that there are flaws in their algorithm.
This is just another illustration that while Zillow.com is a fun site to visit, and a good source of conversation, it is a mathematical guess, and not the same as an appraisal, as many of the determinates of value (view, upgrades, neighborhood differences) are not easily quantifiable. Zillow works better with cookie-cutter subdivisions without variances in view, location, and lot size. I have seen several buyers use Zillow as a bible, and put faith in it’s ability to accurately predict the value of a home. And I have seen several scenarios where Zillow has been off, sometimes way off. I recently had a house in Fremont that Zillow pegged the value at $1,100,000. It sold and closed for $1,500,000. It was a custom home with a large, private lot, and it was surrounded by smaller, less expensive homes. Not even close.
So be careful about putting too much faith in Zillow and other online valuation tools, and get some input from an experienced, professional real estate agent who can show you comparable sales that are actually relevant. It’s only your money…..
Loading ...
RSS
