Do We Have To Use An Agent If We Want To Buy A "For Sale By Owner" House?

Dave,

We’ve been on the hunt for a new house! We’ve used an agent to look at four houses so far, but last night we were driving through a neighborhood that we love and saw a great house that is currently for sale by owner. We called the phone number on the sign and they happened to be home. We took a tour of the house and had a great time talking with the owner about all of the house’s character and history. To make a long story short, my husband and I went home and after a lot of discussion we think this house is the one! Do we need to use the agent that showed us houses before to make an offer on the house? We don’t really feel attached to him, he did not find us the house and we think we can navigate the process from here on our own. Any advice?

Thank you!

Becky, Fruita

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Becky,

Ugh…. Why this question?  You are cruel and must love the thought of seeing people squirm!  I can think of few questions I would rather avoid than this one.  The reason I would choose to avoid this question is that the answer may not sit well with my peers, potentially even those on my own team!  First, if you signed an Agency agreement, you are likely bound to this agreement and kicking him to the curb may prove difficult.  However if you did not sign an agreement, then the decision is fully in your court.  This answer boils down to has your agent earned the right to work with you?  Regardless of who found the home or if it is in the MLS or FSBO (For Sale by Owner), has he earned the right to work with you, regardless of who found the property?

By earning the right, I am not just referencing the act of showing you homes.   Showing homes is truly one of the easier and more enjoyable parts of a Realtor’s job.  I will start by pointing out that showing a buyer houses is generally the product of many hours invested in trying to find you the perfect house.  It often means taking calls on the weekends, during family picnics, in the evening or during baseball or soccer practices.  Good Realtors, or even bad ones for that matter, are never truly “off” work and typically behind every showing there are countless unseen and often underappreciated hours of work trying to locate you the perfect property.  I would be willing to bet, if you took a minute of honest reflection, you know if your agent has earned the priviledge to work with you.   If he has, stick with him and have him help you find a solution to your dilemma.  Be honest with him and give him the opportunity to “earn” his keep.  Our agents welcome the chance to earn their commission….. we do not want, or expect, to be paid unless we have earned it and I believe most agents would agree with that position.  

Give him the chance to negotiate a better price, or build his commission into the price of the home to help assist you and the FSBO in making the process go smoothly and avoid some of the legal pitfalls that can be encountered if everyone does not dot their I’s and cross their T’s.  More often than not, we have found that FSBO’s welcome the help and guidance and are willing to work with a real estate agents who can provide value!  Providing value is key in this discussion, because cost is an issue when there is an absence of value.  If he has provided value thus far, give him the opportunity to continue doing so!

Listen, if he really has not “earned” the right, and you are not kicking him to the curb to simply justify or facilitate financial savings, then move on and purchase the home on your own and forego representation. My Grandfather told me long ago, “you will find out all you need to know about a person’s character when you dig into their wallet.”   I am not sure a truer statement has ever been made.   Don’t make the decision based on dollars and cents, make it based on his ability and track record of providing you value and service.  Hope this helps, but I am confident a little soul searching will point you in the right direction.

Dave Kimbrough

The Kimbrough Team

Should I Build A Shop?

Dear Dave,

I have been throwing around the idea of building a shop at my house.  I live on about an acre lot and have a fairly new home, built in 2007.  I have room to build a detached shop and also room to add onto my current 2 car garage.

My question for you is, what do you think would make the most sense when I go to sell the house someday?  Do people appreciate a detached shop or would they like it connected to the house?

Thanks for the help -

Robert, Grand Junction

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Robert,

I believe this is an idea that virtually every man throws around from time to time, where can I build a shop?  Building a shop has almost become part of the American dream.  Right behind the dream of a detached shop is a three car garage or three car garage with large storage shed!  As you wander through life accumulating “things” that you probably no longer need, but can’t force yourself to part with the idea of more and more storage becomes increasingly important.

In my opinion, build a detached shop.  The nice thing about a detached shop, over one that is attached, is that what is in or what is happening at the detached shop is less likely to spill over to the main garage and house.  This is a simple function of being “detached”.   A detached shop can be a man’s private kingdom and it is hard to put a price on that.  The fact that a garage or shop is detached from the rest of the house implies that not everyone is invited, there is limited access.  Having a shop that is detached also gives one the opportunity to separate his or herself from the chaos or activities of the main structure and provide a place of solace and privacy where anything goes and being clean are not words that need to be feared!  Having a place that is a safe haven is valuable and for those who are used to having it, it is VERY valuable.  

Go detached and live longer and more prosperous and when you go to sell, enjoy the rewards of having a detached shop!  I am kidding about the longer and more prosperous part, but the rewards will be no joke!  It will, no doubt, be a big selling feature that will have you seeing more green! ($)

Dave Kimbrough

The Kimbrough Team       

What Do You Think About Home Warranties?

Dear Dave,

We are looking to buy a house and have narrowed it down to some of the older neighborhoods and older homes.  One of the houses we looked at included a 1 year home warranty.  We decided that house wasn’t right for us - but we did like the idea of the home warranty.

What do you think of home warranties - are they worth it or not?

Thanks for the help,

Rich and Lydia - Delta, CO

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Rich and Lydia,

How exciting!  It is always so much fun house hunting for that special new home, that’s one reason I love my job so much.   Moving on to your question about warranties…. I have changed my stance on warranties over the past couple years.  I used to think they were not worth the money and I still have some reservations, however recently I have become more informed and now believe they can be a valuable asset to some home purchase.   

They can prove useful on any home that has problems after close, but the real benefit does come with an older home where age has run its course and items like appliances, heating or cooling systems, roofs, hot water heaters are nearing the end of their anticipated lifespan.  It is not unheard of for one or two of these things to fail within a year or two of closing.  If you purchased a home warranty you will love the fact that all you may have to pay is the deductible.  Trust me, nobody wants to move in and have to replace a furnace that fails 3 months after close.   You can often times sign up for them year after year so you can maintain the coverage benefits for several years after you close.   Bottom line, it is nice to have some peace of mind that you will receive some financial help if something fails.  On older homes, they are worth it.

Dave Kimbrough

The Kimbrough Team

Is A Dog Door A Selling Feature Or Should We Remove Before We Sell?

Dear Dave,

We are getting ready to list our home this spring.  We have been getting it all cleaned up and show ready.  We have a dog door that leads from our laundry room out into the backyard.  Our question for you is this – do we leave it or remove it and repair the hole that is left?  Do people not buy a house because there is a dog door or is it a good selling point? 

Help!  Just not sure what to do about this. 

Thanks -

Barbara – Grand Junction, CO 

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Barbara,

Please call me when you decide to sell!  If you are perseverating about a dog door, your home is going to show wonderfully.  I am confident it will show like a dream.  All kidding aside, don’t even concern yourself with such a small item.  Many will find it a value add and if they don’t, offer to have it removed and covered for the new owner.   Trust me, you are ready for the market.  Sit back, take a deep breath and enjoy a few weeks of calm before you hit the market!  Happy selling.

Dave Kimbrough

The Kimbrough Team

If Brass Fixtures Are Out, What's The New Timeless Options??

Dave,

You have stated on multiple occasions that brass fixtures are outdated.  What is the current trend, what will it be next week, next year, or when I I decide to sell in a few years?  What would be a neutral selection for cupboard knobs and other fixtures? Every year it is something different so the industry can sell product.

Nancy -Grand Junction

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Nancy,

Ok… guilty as charged!  You are right, I have mentioned several times over the years that brass is out of style and I will continue to stand by those assertions, however I must admit that brass is making a comeback when people are going after a mid-century modern look.  Keep in mind that the vintage look they are after is not necessarily the look in my grandmother’s bathroom with shag carpet and those sexy chandeliers, but a trendier, updated style with a modern twist!  I also believe that your question pretty much sums up almost every industry that exists… cars, cell phones, televisions, furniture, home fixtures and the list goes on and on.

It is every industry’s job, in fact it is vital to their continued existence, to come up with new and innovative (or even recycle the old) products to keep the consumers consuming!  If we (the public, do not continue to consume and if we no longer change our likes and dislikes, the retail world would literally stop turning and our economy would go right down the drain with it!) Change is the one constant that keeps our economy moving and honestly keeps things interesting.  How boring would it be if we were still watching black and white televisions, driving Model T fords, listening to Big Band Music or wearing 70’s bell-bottoms?  Ok… maybe the bell-bottoms might still be kinda cool and I am sure my parents would love for Big Band music to still be mainstream but, for the most part, it is a good idea that all of these trends rest in peace!

That being said, you can run the gamut from oil rubbed bronze, polished nickel, chrome, brass, rose gold, matte black, or white for your fixture choices, but none guaranteed to be the “in” thing when it comes time to sell.  My recommendation would be to choose what suits your taste best (with the exception of brass) and be prepared to make changes if need be when the time comes to sell.  I think virtually any choice you make can maintain somewhat timeless qualities, depending on what other finishes accompany your fixture choice.   Of all the fixture finish choices, it is my opinion that chrome or brushed nickel have the best opportunity to maintain a timeless quality…..least likely in my opinion would be old school brass or rose gold.  I honestly think the newer black matte finish has a chance to last, especially in a more industrial or contemporary setting.  I would also suggest that once you choose your fixture finish, let that help guide you in choosing your knobs.  I have seen it done several times and if done right you can mix and match your knobs by using all kinds of different styles or stick with a knob that coordinates with your fixture finish.  Fortunately for you, mixing and matching is in these days so go for it!

Regardless of the route you take, I encourage you to take a road that will bring you joy and choose something that you will love and enjoy living with.  If you are going to sell in the next 2-5 years, my bet would be that nothing you choose will be completely “out” of style by then, so the stakes are probably not very high.  Choose what you like the most and when the time comes to sell you can make some minor adjustments if need be.  I hope this helps and I hope you have fun with choosing new fixtures.  It's always fun to spruce up a space with some new fixtures and textures.  Good luck!

Dave Kimbrough

The Kimbrough Team