You’re on your computer in California, or maybe you’re in Arizona or Nevada right now looking at homes on the MLS in Sequim or Port Angeles.  “Darn it,” you say to your spousal unit.  “There are no photos of the back of the house or the rec room or the garage or shop in this MLS listing either.”  As your beloved multi-tasks from the kitchen, you hear this soft response, “Well, honey, we’ll just have to wait ’till we get there to see the rest of the house.”

I have good news for you.  You don’t have to wait until you get here to see more of that house or the property.  Email me or call me, and I’ll go take some additional photos for you.  I find that clients really appreciate being able to narrow down their search as long as they are fully informed, and that includes good photos of the whole house and property.

I love photography, so I try to capture good photos for my own clients, but let’s face it, most Realtors are not trained in photography or the use of software and the Internet to edit and upload good photos.  A look through the MLS and the photographs that are posted will quickly demonstrate that point.

I’m here as your Sequim Buyer’s Agent or your Port Angeles Buyer’s Agent to help you filter through the available homes in the inventory, so when you get here you don’t have to waste your valuable time looking at homes that simply don’t match your criteria.  Want more photos?  Let me know.  I’ll be glad to help.

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Yesterday I showed houses to a client from California.  We had a great day.  The sun was shining brightly without a cloud in the sky in Sequim and Port Angeles, and I always have fun looking at houses with my clients.  We toured eight houses.  For those hunting for a home here, this might be especially entertaining.

Of course my client had been using my online MLS search, and he had narrowed his search from 800 homes to less than a dozen with specific parameters, such as three bedrooms, his geographic preference, 1,800 square feet or more, and the price not to exceed $270,000, but the age of the house and the condition of the house were not limited in our MLS search by my client’s choice.

We started with the older homes as a matter of convenience in mapping out our driving route.  The first home was built in the 1920’s, and just trying to figure out where the original kitchen was located and how many additions there had been in the past 80 years was itself quite entertaining.  Once we got through the spider webs in the old slab garage, we played the game of guessing when concrete floors were added and how old the decomposing wiring actually was.  Price:  North of $230,000

The second house was built in 1913.  Touring this house was like going back in time before WWI.  Walking across the floors was an exercise in maintaining balance, since one side of the living room must have been two or three inches higher than the opposite corner.  The windows of that era were small, which meant the house did not get a lot of natural sunlight.  Staircases were narrow and steep.  I cautioned my 12-year old daughter, who came along for the fun, against bumping her head on the way down the basement stairs (and she’s only 4′9″).  Closets and the crawl space “were scary” according to my daughter.  Price:  Above $170,000

The third house was built in 1964, and like the others, was vacant.  The 1960’s were an interesting time in architecture:  dark brown panelling, small kitchens, cheap fixtures, square rooms and narrow hallways.  On top of that, the driveway was so steep, it made me nervous thinking about my car rolling down and into the living room of the house across the street.  According to my daughter, “the bathroom sinks were gross.”  Price:  Over $200,000

The fourth house was tucked in the trees and we almost didn’t see the sign.  We felt a bit uneasy walking down the walkway, which obviously had not been maintained since 1942.  But that wasn’t our greatest excitement with this house.  As soon as we entered, we immediately began to feel nauseous.  Have you ever walked into a home with the strong pungent odor of cat urine?  No sale.  Price:  Over $160,000  (Good luck selling this one!)

The fifth, sixth, and seventh houses are too boring to write about here.

The eighth house was a 1970’s style with add-ons and a makeshift apartment.  There were rooms and doors in odd places.  Apparently for someone this was the ideal home.  That someone would not be my client.  My daughter had no opinion at all on this home.  That concerned me.

At long last we arrived at a brand new home.  It was a spec home built by a builder who had kept building long after the recession started.  Everyone wondered what he was doing, building houses like it was 2005, but he had a line of credit at his bank, so he kept building.

It was a relief to walk through a home with a modern floor plan with the fresh smell of new wood and carpet.  While this home was what I would call “mid-level” quality in materials and construction, it was definitely much easier to imagine this one as home, rolling on the floors with the kids and dog, or relaxing in the bath tub off the master bedroom.  Finally, my daughter gave her nod of approaval.  How did my client feel?  This could be home.  Price:  South of $270,000.

Have you had any good entertainment lately?  Tour anyone?

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For decades real estate agents represented the seller either as the listing agent or as a sub-agent of the listing agent.  That meant that if you hired a Realtor to help you find a home and draft an offer and negotiate, that agent whom you thought was working for you was actually a sub-agent of the listing agent, and that was the law around the country.  In other words, “your agent” was really working for the seller.

But consumers woke up one day as if out of a long dark sleep, and demanded that the misrepresentation stop.  Consumers wanted their own agents who represented their interests and not the sellers’ interests, directly or indirectly.

In 1983 the Federal Trade Commission concluded that 72 percent of all buyers believed the agent they worked with was representing their interests. The report was the catalyst for a nationwide legislative movement that forced the real estate industry to disclose who their Realtor represents. By 1988, most states had disclosure laws.  This also woke consumers up to the need to be sure they addressed this issue when hiring an agent.  Agents began to respond to the need as buyer’s agents.

Janet Branton, executive director of the 44,000-member REBAC (Real Estate Buyer Agent Council) said, “A survey conducted in 2001 found 46 percent of home buyers used buyer representation. Buyer representation is not the exception anymore, it’s the norm. Consumers now know they have the right to be represented.”

Here’s something I find interesting.  Many buyers from outside the Sequim or Port Angeles area will see a sign and simply call the agent off the sign.  That’s fine, but here’s where it gets interesting.  The majority of these callers assume that the listing agent they call can represent them as their agent, too.   Many hire that agent to write an offer on that agent’s listing without any thought to the inherent conflict of interest.  I’ve interviewed many buyers and other agents, and there is almost never any attempt by buyers to interview their agent, to do their due diligence on experience and knowledge, or to discuss dual agency.

Dual agency is legal in Washington, and it is codified as legal in RCW 18.86.  That certainly doesn’t prove it’s in your best interests.

As much publicity as dual agency has gotten (and all the lawsuits over it), and as much as “buyer’s agency” has been discussed and written about, many buyers are still unaware of the need to hire their own buyer’s agent.

I strongly recommend that you hire your own buyer’s agent in Sequim or Port Angeles.

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Searching the Sequim MLS for homes and land (and Port Angeles MLS) on the Internet has made the gigantic challenge of finding the right home, filtering through the maze of listings (over 800 homes in our MLS) so much easier than it used to be.  Does anyone else remember the old printed MLS books?  They were about 250 to 350 pages thick in 10 point Helvetica and organized by area and then by price.  There was no easy way to search by parameters (bedrooms, square footage, acreage) and get an instant list of qualified homes.  But you can do that on the Internet now, and you can do it in a matter of seconds.

Technology has take giant leaps forward in the past three to seven years, and you are the beneficiary.  Some of my friends in the print newspaper business and in the print magazine business have gotten the short end of the stick in these shifting times, but consumers like you are coming out ahead.

What a difference a few years can make!  Thirty years ago traditional print media was the way to advertise and the way to find real estate.  Today, the Internet and the many tools available on the Internet, have left the old behind.  Thirty years ago this snow machine seemed like a modern marvel.  Who would think of trying to drive it today to get somewhere?  Why not use modern technology to help you find your next home?

You can use a very powerful MLS search website, one I had programmed and has the features my clients requested, including all the parameter and advanced search options, and the visual map search:   Search the Sequim MLS.  Don’t forget to bookmark this MLS website tool.

But do not sell the Internet short.  It is much more, much more than just a convenient way to search the multiple listing service.  It is also a powerful tool to find an experienced professional Realtor, who can make your search and negotiation so much more enjoyable (not to mention saving thousands of dollars in the negotiation).  Don’t underestimate the value of a true professional with 20 to 30 years of experience in your corner.  Did you know that a professional buyer’s agent does NOT cost you a dollar, but negotiates exclusively for you to get the best possible price, and the seller pays his fee at closing?  Is that amazing, or what?

The Internet is also a great information gathering tool on the communities of Sequim and Port Angeles, recreational activities, volunteer activities, hobbies, and nearly everything under the rain shadow of Sequim.  Do you have a niche interest?  Is it not amazing how powerful the Google search engine can be when you are searching for something rare or unique?

You can use this site, and the affiliate sites to search almost any subject on real estate for the Sequim and Port Angeles areas, including checklists for buying vacant land, tips on finding a builder who will build you the highest quality home at a guaranteed contract price, tips to avoid traps for the unwary, powerful and proven techniques to negotiate the best price, articles on earnest money, contract language, contingencies, adverse possession, easements, well logs, dual agency and how it can cost you money, and hundreds of other topics.

You’ll find photos of Sequim and Port Angeles, video tours of the area, links to the best local resources, and video instructions from an experienced local real estate attorney and now buyer’s agent.

Use the Internet as a resource right here.  All of this is given to you at no cost, courtesy of Chuck Marunde, your favorite buyer’s agent.

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When you write an offer on a house in Sequim or Port Angeles, you’ll have to write a check for the earnest money.  The earnest money is what makes the contract a legal offer that can become a binding contract.  In contract law there must be consideration, and the buyer provides that consideration with earnest money.  The seller’s consideration is the promise to sell you his house at the agreed price.

How much should earnest money be? There is no rule, just guidelines.  The more expensive the home, the more the earnest money should be.  I’ve seen earnest money for as little as $100 and as much as $10,000.  It is common to see earnest money checks in the amount of $2,000 for a house priced at $200,000 and up, but it is also common to see earnest money of $5,000 for more expensive homes, especially in these uncertain times where financing can be questionable.  If a buyer is serious and can afford to purchase a $350,000 or $750,000 home, he or she can write a check for $2,000 to $5,000.

The earnest money check is not even deposited until there is mutual acceptance on the price and all the terms.  Once that happens, the final contract and the earnest money check are given to the escrow company, and they deposit the check.  Most real estate brokers, including me, don’t keep a trust account for that purpose as the regulatory requirements have gotten far too cumbersome.  Escrow companies have trust accounts and are set up to account for all the debits and credits on the HUD-1 settlement statement.

What happens if you reach mutual acceptance, give the escrow company the contract and they deposit the earnest money, but subsequently a contingency is not met (like you don’t qualify for your loan)?  How do you get your earnest money back?

Your buyer’s agent must draft a termination of the transaction and release of the earnest money, and the seller must sign that agreement.  While this is not required by law, the escrow companies all insist that they have a signed release from both buyer and seller. You can imagine that if the sellers refuse to sign the release, the escrow company will not release the funds to you.  In that case, after 14 days, the escrow company must tender the money to the superior court, and you either walk away from your earnest money or you hire an attorney and sue the seller for the return of your earnest money.

The reality is that most sellers are going to sign the release.  They realize that if you did not get your loan, or could not satisfy some other contingency, you are entitled to the earnest money, and the vast majority of sellers gladly cooperate and move on.

I recommend you hire an experienced Buyer’s Agent to watch your backside when it’s time to make an offer on a home.  We live in challenging times, and it’s easy to get in trouble these days without even trying.  May I suggest you hire me as your Buyer’s Agent?  I’d love to work with you to find your perfect retirement home.

Chuck Marunde (retired real estate attorney and now Sequim buyer’s agent)
360-775-5424

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I recently read a blog by another real estate agent somewhere in the U.S. who wrote that if you are a buyer you can get good professional help in any real estate office by any agent, or words to that effect.  I disagree with that statement.

Does anyone think all lawyers are the same?  Or how about all school teachers, or football coaches, or dentists, or auto mechanics?  Of course they are not the same.  Neither are all real estate agents equal.  I recently received a very insightful question from a prospective client.  I love his question, because it shows me he really is thinking about who he retains as a Realtor, and he knows it makes a difference.  Here is his question and my answer.

Hi Chuck:

I have been corresponding via email with a couple of agents in your neck of the woods.  All are very helpful. I have read some of your articles and a question came to mind:  why should a potential buyer pick you over  other agents working diligently in the market? We haven’t visited Sequim as yet, but will in June ’09, and we will at that time decide if this is the place to buy a home.

Thanks, [name withheld in this article]

My response follows:

I love your question.  I wish every buyer asked that same question.  One of my pet peeves is that I compete with every Tom, Dick, and Jane who got a real estate license, but if clients don’t do some due diligence, how will they ever differentiate us?  I’m not able to talk too much about my own resume on my blogs, because that would be arrogant and turn people off, including me.  [Remember reader, I'm  breaking my rule here and answering a question about myself.]  My business is client-centric, so I try to write about subjects that clients are actually interested in.  BUT since you asked a direct question, “Why should a potential buyer pick you over other agents working diligently in the market?,” I will answer it directly.

1.  My education includes a B.A. in economics, a law degree with a focus on real estate, and three decades of real estate seminars on legal issues, sales and marketing, and negotiating.  But education without more is meaningless.

2.  My experience in detail would bore you here, because it includes 30 years in real estate, but suffice it to say that I’ve handled thousands of transactions as a Realtor in Alaska, Nevada, and Washington, and as a real estate attorney of 20 years.  (See my detailed resume.)  I just sold a $475,000 house to a buyer from California, and his testimony is probably the best reality check you could possibly get on me.  I called him and asked if he would mind if you called him and asked him how it was working with me, and he said he would be delighted to talk with you.  He’s worked with other agents, too, so he can give you a real comparison.  [Client's name and number withheld]

3.  As your buyer’s agent, I cost you nothing.  The seller pays my fee.  I love that.  I enjoy negotiating for my clients to get the best possible price and terms.  In once case I saved a client $80,000.  In another recent case, I helped a client as a buyer’s agent buy a house for$251,000 in a very intense negotiation that saved him about $38,000.  As a buyer’s agent, I’m selling a house every other month.  There are agents here who haven’t sold a house in over a year.  By the way, I do no print advertising.

Here are more detailed articles that I’ve written for your benefit on these subjects:

How to Research Your Next Realtor
Dual Agency Can Cost You
Dual Agency and the Exclusive Buyer’s Agent
Chuck Marunde’s Detailed Resume

You may have seen my sites, but here are the links:

SequimRealEstateNews.com
SequimPortAngeles.com
Search the Entire Sequim & Port Angeles MLS

[name withheld], I’d love to work with you, and I honestly believe you will get more from me than any other agent.  I would recommend you meet with me when you get here, and see if you are convinced I’m competent and trustworthy.  I’m looking forward to meeting you and working with you.

Chuck E. Marunde, J.D.
Broker/Realtor
Sequim & Port Angeles Real Estate, LLC
618 South Peabody St., Suite I
Port Angeles, WA  98362
360-775-5424

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Are you buying Sequim real estate, an existing home or a vacant lot?  If you are searching for the ideal property, I recommend being careful about the neighborhood, and I’m talking about junk freaks.  They live in every city and town in America.  They’re typically nice people:  they just happen to be junk freaks.

The problem isn’t the junk freak–it’s what he does to his property that will adversely effect your property.  Who wants a disaster of a junk yard next store or even down the street.  Many buyers have told me as we drove around looking at homes that they would not consider a particular listing because there was a grotesque junk yard nearby.

Driving around the block is important, but drive a larger radius and see just what is out there.  You may not have to look over or through the fence at broken down cars, rusty barrels, and refrigerators from the 1960’s, but if you ever plan to sell your home (or your children do), consider that buyers either won’t buy a home near a disaster zone, or they will pay a lot less.

Even when you do buy a lot or home in an attractive area, does the neighborhood have CC&R’s (covenants) that prohibit junk yards and pig farms?

If you are moving to Sequim or Port Angeles from California or Arizona, I recommend that you do what many of my clients do before they arrive here.  Email with me while you gather information to make a wise decision, search the MLS on my website, ask me about particular listings, the neighborhood, schools, recreation, and covenants.  By the time you get here, you and I will already have a sweet list of good prospects, and you’ll feel like you have a good feel for the area.

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The fact that hundreds of real estate brokers are in trouble across the country is no surprise at all.  This real estate and economic downturn has spared no one, and certainly not real estate agents and brokers.

I’ve written elsewhere about the dramatic changes taking place in how people buy and sell real estate,  and the extraordinary changes in how real estate is advertised.  I’ve written about the dying breed of traditional real estate brokers who hang on to large brick and mortar buildings (and massive mortgage payments or huge leases) and expensive traditional advertising that no longer is effective, and the way-too-high overhead associated with that model.

With real estate commissions way way down, and overhead maintaining a level financial strain for brokers, it is no surprise that hundreds of real estate brokers around the country should seek bankruptcy protection, merge with other companies, or just close their doors.

Here are just a few large offices that are seeking to survive or morph into something that can survive:

1. Prudential Americana, a brokerage company in Las Vegas, Nevada that has 1,100 agents.
2. Century 21 Advantage Gold, a real estate brokerage in Las Vegas, Nevada with 300 agents.
3. Century 21 Town & Country, a real estate brokerage in Rochester, Michigan, that has 550 agents.
4. Prudential Cranbrook Realtors, a real estate brokerage in Troy, Michigan that has 90 agents.
5. LandAmerica Financial Group, which was the third-largest U.S. title insurance company
6. Help-U-Sell Real Estate, a fee-for-service real estate brokerage franchisor that has 1,000 offices in 46 states
7. Foxtons, a cut-rate commission real estate brokerage company in West Long Branch, New Jersey
8. WCI Companies, a Florida-based luxury home builder
9. Haskins Realty Northwest, a real estate brokerage in Portland, Oregon
10. RE/MAX Town Centre, a real estate brokerage in Orlando, Florida that has 60 agents.
11. Robert and Loraine Dyson, luxury home real estate brokers in Solana Beach, California

What does all this mean?  It means the real estate brokerage of tomorrow is not the traditional real estate brokerage that is top heavy.  It means buyers are looking for an experienced real estate agent who has powerful tools they can use from the comfort of their own home computer.  It means sellers are no longer willing to pay high commissions to cover all the overhead of a traditional brick and mortar.  Buildings are still nice, and we all need a place to work, but clients are not as interested in the beautiful hard wood conference tables and the luxurious furniture of real estate offices anymore.  Honestly, they spend very little time, if any, in those offices, but the brokers still have to pay for it.

At Sequim & Port Angeles Real Estate, LLC, we are working hard to meet our clients’ needs and desires, and we’re doing that on the Internet more dramatically than any of our competitors.  How can we help you?

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I’ve written elsewhere about the conflict of interest inherent in dual agency, and why simply calling the listing agent and hiring the listing agent to also represent you as your agent can cost you money. Read more from a Seattle Buyer’s Agent who also writes about the danger of dual agency.

This cartoon does a good job of visually making the point.

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Real estate and the way people buy and sell homes has been going through a dramatic change of tidal wave proportions.  For several years now, even before the real estate and national economy fell from its perch, this has been true.  Consumers have been voting with their checkbooks, and consumers have been voting based on how and who they retain as their Realtor, if they use one.

The change has taken many traditional real estate brokers off guard, although it has been a slow and consistent change, and has been obvious to some of us for several years.  I’m reminded of a phrase we used as children, “Ready or not here I come.”  Like playing hide ‘n’ go seek, consumers have been saying to the real estate profession, “Ready or not, this is what I want and how I want it.”

Here’s what my clients and prospective clients tell me they want, and I think this is a national trend:

1. I want the convenience of being able to search for homes using an online MLS search.
2. I don’t want to be harassed by an aggressive and obnoxious agent.
3. I want to be able to use the Internet to further my research, and I am not willing to pay a fee to use the Internet to do my MLS searches and my research.
4. I get turned off when I am forced to register to search the MLS.
5. I truly do not care about a brick and mortar building or a plush conference room at a Realtor’s office, because I am interested in finding my home, and I don’t see that as essential to helping me find my home.
6. When I look for a Realtor, I do not fixate on a franchise name.  I don’t even think of saying to my spouse, “Honey, let’s hire a franchise to help us find our next home.”  I’m hiring one agent, not a corporation and not a building.  It always boils down to one agent helping me.
7. Like over 80% of other home buyers, I start my search on the Internet.
8. When I do need or want a Realtor, I am thinking about finding a Realtor who is actually knowledgeable, experienced, and professional.  Not to sound harsh, but this is a huge investment for me, and I want to get it right, so I’m not interested in hiring a man who previously was a janitor for a school district and was recently licensed, or a female agent who got her real estate license recently after being a housewife for 20 years.  Nothing wrong with being a housewife, but I need a professional, not a housewife, to help me find and negotiate the best deal on my home.  So I will want to know what my agent has been doing all these years.  I feel I’m entitled to know before I retain him or her.
9. I don’t expect my Realtor to wear a $2,000 pin-stripped suit, but I’m not going to hire someone who is unkempt, wears shabby clothes, and doesn’t give me warm fuzzies with his or her demeanor.  Appearance is an indication of professionalism to me.
10. The Realtor I hire must be competent and trustworthy.  I expect that he or she will be able to answer every question I have, including every aspect of a real estate transaction.  If I know more than my Realtor, I have the wrong Realtor.
11. I expect and demand total loyalty and honesty from my Realtor.  I am not willing to do what 95% of all consumers have done in the past:  ASSUME that the first Realtor they talk to on the phone is “the one.”  I will do some due diligence and interview a Realtor, and maybe more than one Realtor.  The truth is, I want to find the best Realtor out there who can do the best possible job for me.

Consumers are taking control, and they should.  I applaud this kind of thinking, and I hope and expect that anyone who is considering retaining me as their Realtor would also do this kind of due diligence.  Any prospective client can learn more about me on the Internet (at no cost and with no required registration and no obligation) than any other agent or broker in all of Sequim or Port Angeles.  I give away more information on real estate (after almost 30 years in real estate, 20 as a real estate attorney) than any other agent I know of anywhere.  Why?  I believe people deserve information and honesty.  And if I can help to improve the quality of someone’s life by freely sharing what I have learned and experienced, I think it will eventually come back to me in clients, friends, and even commissions.

As a close to this argument, here is a 2002 video of a traditional brokerage approach, which is definitely so outdated, one would think it was made by cavemen back when dinosaurs still roamed the earth.

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I do a lot of writing and give away a lifetime of real estate law and sales tips for buying and selling real estate in Sequim and Port Angeles. It’s not too often I simply write a short and bold sales pitch for my services, so I hope you’ll give me a second to do that here. I was thinking that unless I actually tell people what I offer, they may not know.

I’m a Realtor and Broker and practiced real estate law for 20 years, which essentially means when you hire me as your buyer’s agent, you get all the experience of a real estate lawyer for free. Clients seem to love that, and during the process and after closing they realize the value.

I have 30 years in real estate law, sales, marketing, and Internet marketing. All of this is yours absolutely free, because sellers pay my real estate commission.

On this site, you can find hundreds of articles to help you decide how to buy and sell real estate in Sequim and Port Angeles, articles on buying an existing home, land, or building your retirement home. I hold nothing back. I tell you insider secrets you definitely won’t find anywhere else.  My philosophy has always been to give it all away, and eventually it will come back, and that has been true.

You can search the entire MLS in Sequim and Port Angeles, and you can watch videos I’ve produced to help you gather relevant information on the market, prices, inventory, negotiating, building, avoiding nightmares, and much more.

If you are in the market to buy, I would love to take all of my professional experience and offer it to you at no cost. As I say, the sellers pay my commissions. If I can help, simply email me.

If you are wanting to sell a home, you might want to take a look at my 1% commission  video (2.5% for the selling agent, total 3.5%).

Chuck Marunde, J.D.
SequimRealEstateNews.com

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You’re looking for a real estate agent, but have you thought about how you will find one? This is one of my pet peeves, not just because I am a Realtor, but because I have learned that the vast majority of buyers simply call the agent from a sign or advertisement and hire the first agent they talk to. I’m not kidding, and the National Associaton of Realtors learned this in a nationwide study.  I believe the statistic is that 85% of buyers work with the first agent they talk to.

I honestly don’t think most buyers realize how important it is to research and select a Realtor who is professional, has integrity, and has the experience to do the best job for them.  I am a Realtor, and I’m sure someone will complain that I’m biased.  Look, I’m writing this article for a national audience, so this is not all about me.  Sure I could use business right now in this recession.  Who couldn’t?  But I’m also writing about a very real issue that is important from a buyer’s perspective.

I think buyers (85% of them) assume the following when they talk to that first real estate agent:
(more…)

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For buyers of real estate in Sequim or Port Angeles, this is most definitely a buyer’s market.  It’s a bad time for sellers, but WOW what a good time for buyers.  Sure it’s unfortunate for sellers.  I have many good friends and clients who are selling, and I certainly wouldn’t wish anything but good for each of them.  But let’s face reality on the buyer side for a moment.  Buyer’s could not have better market conditions in Sequim and Port Angeles, whether they are buying an existing home or a lot on which to build a home.

Here’s the challenge for buyers.  When everyone is saying the market has bottomed, that means you’re long past the bottom and prices are already headed upward.  Remember, whether it is real estate or the stock market, the majority are always wrong.

Whatever your timing, let me encourage you to hire an exclusive buyer’s agent when you do decide to make a move.  For your own protection, I strongly urge you not to hire the listing agent, because then you will have a dual agent, and your agent will have to promise to get you the lowest possible price while also promising to get the highest possible price for the seller.  Think about it.  Do you really want an agent who has a conflict of interest representing you?  Email or call me.

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If you are buying a house in Sequim or Port Angeles, dual agency can cost you!  What is dual agency and why could it cost you?  Is it really a big deal to have your own exclusive buyer’s agent?  Watch this video for the answers.

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Can a buyer represent himself when he purchases real estate from a FSBO or from a listing agent?  Yes, but there are traps for the unwary, a few documents that are required by law and some documents that can protect you from calamity.

Buying real estate used to be a matter of a few pages signed by the parties and a simple closing in a real estate office.  It’s not so easy anymore.  In the State of Washington here is a short list of the kinds of documents used in a typical real estate transaction.  Each document has its appropriate use and timing, and each document must be the latest revision, and they are revised regularly to comply with new law and new court rulings.

1. Law of Real Estate Agency Pamphlet
2. Lead Paint Hazards Pamphlet
3. Mold, Moisture, and Your Home
4. Seller Disclosure Statement-Improved Property
5. Seller Disclosure Statement-Unimproved Property
6. Multi-Family Purchase and Sale Agr.
7. Residential Purchase and Sale Agr.
8. Financing Addendum
9. Financing Contingency Notice
10. Buyer’s Sale of Property Contingency Addendum
11. Payment Terms Addendum
12. Optional Clauses Addendum
13. FIRPTA Certificate
14. For Your Protection: Get a Home Inspection
15. For Sale By Owner Addendum
16. Snohomish County “Right to Farm” Discl. St.
17. Snohomish County “Right to Practice Forestry” Discl. St.
18. Disclosure of Info. on Lead-Based Paint and Hazards
19. Identification of Utilities Addendum
20. King County Addendum
21. Land and Acreage Addendum
22. Promissory Note (Fixed Rate of Interest)
23. San Juan County Tax Addendum
24. Seller Warranty-No Foreclosure Sale Pending Add.
25. Island County Addendum
26. Skagit County “Right to Farm” Disclosure
27. Buyer’s Pending Sale of Property Contingency
28. Well Addendum
29. Septic Addendum
30. Short Sale Addendum
31. Title Contingency Addendum
32. King County Seller’ Notices of OSS
33. Kitsap County Septic Addendum
34. King County Buyer’s Declaration of OSS Receipt
35. Homeowner Insurance Addendum
36. Island County Noise Disclosure
37. Pierce County Septic Addendum
38. Oak Harbor Noise Disclosure
39. Kittitas County Surface Water Rights Addendum
40. Extension of Closing Date Addendum
41. Kittitas County Right To Farm Discl. St.
42. Snohomish County Smoke Detector Certification
43. Open Space Addendum
44. Manufactured Home PSA
45. Vacant Land Purchase & Sale Agr.
46. Presale Addendum
47. Presale Addendum - Optional Clause
48. Condominium Resale Certificate
49. Condominium Purchase & Sale Agr.
50. Condominium New Construction/Conversion Addendum
51. Earnest Money Promissory Note
52. Assignment of Buyer’s Interest
53. Cooperative Apartment Addendum
54. General Addendum
55. Inspection Addendum
56. Inspection Response for Form 35
57. Escalation Addendum
58. Feasibility Contingency
59. Neighborhood Review Contingency
60. Pre-Inspection Agreement
61. Counter-Offer (Addendum)
62. Withdrawal of Offer or Counteroffer
63. King County On-Site Sewage System Discl.
64. Back-Up Addendum to Purchase & Sale Agreement
65. Notice to Back-Up Buyer that First Sale has Failed
66. Second Buyer’s Addendum
67. Commission Disbursement Form
68. Buyer’s Agency Agreement
69. Buyer’s Agreement No Agency
70. Selling Broker’s Commission
71. Agency Disclosure
72. Reservation Agreement
73. Notice to Remove Contingency (“Bump Notice”)
74. Notice from Contingent Buyer to Seller (“Bump Reply”)
75. Authorization to Disburse Earnest Money
76. Rescission of Purchase and Sale Agreement
77. Conditional Release of Listing
78. Rental Agr. (Occupancy Prior to Closing)
79. Rental Agreement (After Closing)
80. Lease/Rental Agreement (Residential)
81. Move-In/Move-Out Inspection Agr.
82. Pet Agreement
83. Option to Buy Real Estate
84. Homeowner’s Policy of Title Insurance
85. Receipt for Earnest Money
86. Blank Notice
87. Notice of Rescission of Agreement Pursuant to Form 17
88. Notice of Termination of Agreement for Failure to Pay Earnest Money
89. Failure to Close-Notice of Termination by Buyer
90. Failure to Close-Notice of Termination by Seller-Seller Keep Earn. Money
91. Failure to Close-Notice of Termination by Seller-Seller to Elect Remedies
92. Buyer’s Notice of Waiver of Financing Contingency
93. Buyer’s Notice of Termination (Financing Unavailable)
94. Buyer’s Notice of appraisal Less Than Purchase Price-Termination
95. Seller’s Notice of Consent-Second Contingent Sale
96. Seller’s Notice of Consent-Delayed Closing
97. Notice of Termination Pursuant to Neighborhood Review (Form 35)
98. Notice of Termination (Disapproval of Park Rules and Regs-Form 23)
99. Notice of Termination-(Unable to Assume Lease - Form 23)
100. Notice of Termination (Feasibility Contingency Disapproval-Form 25)
101. Notice of Termination (Public Offering Statement Disapproved-Form 28)
102. Notice of Termination (Resale Certificate Unacceptable-Form 28)
103. Seller’s Notice that Title Commitment is Available
104. Buyer’s Notice of Termination (Homeowner Insurance is Unavailable)
105. Buyer’s Pending Sale Contingency Notice

I have always been a strong advocate of using a professional, in every profession, but here it is especially important that a buyer know when and how to use these documents.  And drafting unambiguous language in each of these primary documents and addendums is critical to avoid disputes and even a transaction that fails because of poor drafting.

More than ever, buyers are wise to use exclusive buyer’s agents to represent them.  When I represent a buyer, I cost them nothing, because the seller pays my commission.  There is absolutely no conflict of interest, because I don’t worry about getting my buyer the lowest price while trying to get my seller the highest price at the same time!

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Buyers of real estate today are taking their searches and their methods to entirely new levels, thanks to the Internet.  Buyers want access to instant information that is free, and they do not want the kind of uncomfortable confrontation that occurs when they have to pick up the phone and call a salesman.

I believe there are two powerful reasons for this change.  First, the Internet has given consumers the ability to search the multiple listing service in their target markets at no cost anytime of the day or night.  When I first started in real estate before the Internet, I had an MLS book that was published every Friday with all the listings in it.  People had to actually come into the office and sit down with me while we thumbed through this two-inch thick book.  Now, buyers can jump on the Internet from the comfort of their homes and search the MLS without even talking to a real estate agent.  They like that.

Second, there is a cultural shift occurring that is fueled by consumers.  Technology has facilitated consumers’ desires to move away from traditional high pressure sales and from traditional advertising.  Buyers do not like being force fed news and advertising without choice.  They don’t like being told what to do.  Consumers want to have the power to decide what they look for, who they talk to (or don’t talk to), and who they do business with.  And they want to be able to come and go as they gather information without being hindered.  The advent of the Internet and the explosive growth of technology on the Internet to facilitate consumers is a Godsend for the majority of Americans.

Even the news that consumers are reading is part of this cultural change.  They are shifting from print newspapers to the Internet at the speed of light, and they are loving the fact that they get to choose what news to read.  A fascinating study by the Pew Research Center’s Project for Excellence in Journalism examined what news consumers are reading when they have a choice:

The question of whether citizens define the news differently than professionals is becoming increasingly relevant. It started with offering visitors a sense of what others found interesting: what news stories were most emailed and most viewed?

Soon, establishment news sites like CBSNews.com allowed users to make their own newscasts. Then, names like Digg, Reddit and Del.icio.us emerged as virtual town squares that became a way to measure the pulse of what the web community finds most newsworthy, most captivating, or just amusing. The trend continues, as even Myspace, the social networking site popular among 20-somethings, has launched a news page (http://news.myspace.com).

Some key findings include:

• The news agenda of the three user-sites that week was markedly different from that of the mainstream press. Many of the stories users selected did not appear anywhere among the top stories in the mainstream media coverage studied. And there was often little in the way of follow-up. Most stories on the user-news sites appeared only once, never to be repeated again in the week we studied.

• The sources user news sites draw on are strikingly different from the mainstream media. Seven in ten stories on the user sites come either from blogs or Web sites such as YouTube and WebMd that do not focus mostly on news.

• The three user news sites differed from one another in subtle ways. Reddit was the most likely to focus on political events from Washington, such as coverage of Vice President Cheney; Digg was particularly focused on the release of Apple’s new iPhone; Del.icio.us had the most fragmented mix of stories and the least overlap with the News Index.

• On Yahoo News—even when picking from a limited list of stories Yahoo editors had already pared down—users’ top stories only rarely matched those of the news professionals.

Consumers are taking control of what and how they gather information.  That is true with the news and the advertising they choose to read, or ignore, and it is true today about how they search for and buy real estate.

Home buyers can search a beautiful map based multiple listing service (see example of an MLS search that is easy to navigate and graphically pleasing), they can search the locale of interest with a Google search to find for-sale-by-owners, to find an exclusive buyer’s agent, to read local real estate blogs, and view photos of the area.  They can do all of this from the comfort of their home without talking to a single salesman.

The vast majority of buyers are not using real estate portals either.  Buyers are no longer pulled by the big names of real estate companies branded on billboards or on TV commercials.  The dominant branding of big names that was such a major factor in the 60’s, 70’s, and 80’s has faded just as the Internet has grown.  Consumer loyalty is no longer to the “branded companies.”  Consumers are loyal to themselves, and that is the way it should be.  Technology has finally given the consumer what they have always wanted–the power to choose.  They choose the information they view, how and when they view it, and they choose what to do with that information without interference from anyone.

Buyers are taking control, and they love it.

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It is an honor for me to know that this blog is an educational tool for real estate agents who are trying to take their game to the next level using cutting edge technology on the Internet and the latest in marketing.

We are living in challenging times in the real estate business. What used to work, no longer works so well. Most agents have figured out that traditional methods  of doing business are no longer as profitable. Time itself seems to have accelerated progress, but that comes at a cost for tradition.

Buyers are very good in a free enterprise system at finding new and unique (read “inexpensive”) ways to buy and sell their goods and services. The real estate industry has been slow in responding to the consumer, but we are seeing new technology, new hardware, and whole new ways to connect buyers and sellers.  And I love the fact that buyers are becoming very savvy.

This blog continues to provide buyers and sellers information that helps them make wise decisions, even in this crazy market. This blog also serves as a great resource for real estate agents who are trying to learn how to negotiate this new paradigm.

My own focus of late has been to connect with buyers. I enjoy working with qualified buyers from outside our area to help them find their ideal home at a nicely negotiated price. If I can represent you as your exclusive buyer’s agent, email me. Let me know your plans and how I can help.

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Will your real estate agent fight for you when you buy a home?  Yesterday I talked with a very savvy buyer. He questioned whether a real estate agent who has a home listed for sale could also act as a buyer’s agent on that same property, in other words, a dual agent representing both the seller and the buyer. The answer in most states, including Washington, is that it is legally acceptable to be a dual agent, provided the necessary disclosures are made in writing. But . . .

This buyer was quite right in feeling that while dual agency is legally acceptable, it is not financially acceptable. His argument is one I have been making for years.

Imagine what a listing agent does for a seller. He or she has worked with a seller for six months to one year to list and market a property, with many many hours of paperwork, planning, writing ads, posting listings, meeting with the seller many times and having phone calls weekly, emailing and talking with prospective buyers, spending numerous hours behind the scenes, encouraging the seller and building an emotional bond, and who has committed his or her best efforts to get the highest possible price from any buyer who does show up.

Now imagine a buyer who drops into town and who calls that listing agent to drive around and look at homes for one afternoon. How can we honestly suggest the agent can fairly represent both the buyer and seller without bias?

The arguments are: it’s legal, all you have to do is comply with the law, there’s nothing wrong with being a dual agent, if you do the full disclosures it’s okay, an agent can be fair and honest and be a dual agent, and so on. All true, but not all buyers are buying it.

Buyers want to be absolutely certain that their agent works for them, and only for them. Buyers want to know that their agent is loyal to them without any potential conflict. Buyers want someone who will fight for them, negotiate for them, and watch out for their best interests in every detail, every contingency, and throughout the process all the way to closing.

Some buyers do not know the dangers of simply calling the listing agent and making an offer through that agent. I strongly recommend buyers retain their own exclusive buyer’s agent. Only then can a buyer be sure he is zealously represented and that someone is working to get the best price and terms possible.

For a real life example of a buyer who got hurt in this kind of scenario, see the Washington Post article, Agents Falling Short on Disclosure.  “Stern believed he was induced to sign a contract on a house with an excessive price because the agent he thought represented him as a buyer’s agent was in fact functioning as an agent for the seller.”

“If the agent’s role is to negotiate for you, how can he get the best price on the home if his real duty is to get the highest price for the seller? “  See another excellent article on Joel Stern’s case, Well-kept Secret That Harms Home Buyers, in the International Real Estate Digest.

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Buying real estate in Sequim or Port Angeles?  Did you know that you could save a lot of money if you are represented by an Exclusive Buyer’s Agent?  The difference between an ordinary agent and an agent 100% committed to assisting buyers could make all the difference for you.

Why wouldn’t you use an Exclusive Buyer’s Agent?  Email chuckmarunde@gmail.com or call his cell at 360-775-5424.

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