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Avoiding Real Estate Clichés Like the Plague (see what I mean??)

“Not a Drive-By!” “Must See!” Yada, Yada, Yada

One of my favorite Mad magazine cartoons (circa 1970) shows a vendor in front of a food stand with the following sign: “turkey burgers,” “chicken burgers,” “buffalo burgers,” “tuna burgers,” “veggie burgers,” etc. etc.

The caption: “we have some with ham, too, but we don’t know what to call them.’

So, too, in real estate, avoiding clichés — overused, and therefore meaningless phrases — is an occupational necessity.

Step #1

Of course, to avoid using clichés, you first have to know what they are.

If you’ve been in real estate longer than six months, that’s like shooting fish in a barrel (sorry).

Some of the choicest clichés:

–“Not a drive-by! –“Must see!” –“Amazing opportunity!” –“Great bones!”

(For more in this vein, see “Real Estate Euphemisms ” New & Improved“).

Step #2

The problem with all of the above — besides suffering from overuse — is that they’re generic; far better to shine a spotlight (last one — promise) on specific, factual information.

Such as:

–“Five(!) Bedrooms!” –“Over 6,000 square feet!” –“Walkout abutting lakeshore!” (if you can’t see it from the street). –“Solid ’50’s construction with cherry mill work, hardwood floors, and cove moldings.”

All of the above draw Buyers’ attention to unique and easily overlooked attributes — and give Buyers a concrete reason to see the home, vs. just telling that they should.

See also, “Real Estate Euphemisms — New & Improved.”

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Uh-Oh! What Happens When a Tornado (or Earthquake, or Flood) Damages a “For Sale” Home Before Closing??

Short Answer: Buyer’s Call

[Note to Readers:  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.  If you need legal advice, please consult an attorney.]

RISK OF LOSS: If there is any loss or damage to the Property between the Date of this Purchase Agreement and the date of closing for any reason, including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller.  If the property is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer’s option, by written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase Agreement, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid here to be refunded to Buyer.

–Minnesota Purchase Agreement, lines 321. – 326.

While the Twin Cities has been blissfully spared (so far) severe weather this Spring, outlying areas haven’t been so lucky.

What happens if, after the Buyer and Seller come to terms, a tornado or other storm significantly damages the home?

“Force Majeure” Clause (aka, “Risk of Loss”)

As with most residential real estate matters . . . step #1 is to consult the contract. 

For those allergic to legalese, let me translate the “Risk of Loss” clause (above) that governs such situations for Minnesota home buyers and sellers: “It’s up to the Buyer.”

Just one word of advice to emotional Buyers, however, before they (too) hastily pull the plug on their now-sullied dream home:

Look past the temporary damage, and consider this: once insurance has replaced the roof, windows, and any other storm-related damage, the home you’re taking title to may actually be in better condition than the one you originally contracted to buy.

Perhaps that’s why severe weather derails fewer home deals than one might expect . . .

P.S.: Once upon a time, the term “Final Acceptance Date” was used instead of “Date of this Purchase Agreement.”

I’m guessing the change was prompted by one or both of these reasons: 1) “Final Acceptance Date” — when all parties have signed all the contract’s terms, making it officially “executed” — was too technical for consumers; and 2) if the tornado damaged the home after the date on page 1 of the Purchase Agreement, but before the date of “Final Acceptance” . . . the parties wouldn’t have consummated the contract (at least, not without first explicitly addressing the storm damage).

See also, “Accepted Offer” vs. “Fully Executed Purchase Agreement”.”

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The Five Definitions (at least) of “I Can’t Look!”

Definition #5: What Someone Says, Post-Neck Surgery

You might not guess exactly how versatile the expression, “I can’t look!” is.

That is, until you literally can’t look, thanks to recent neck surgery (mine – ouch!).

Here are the other definitions I’m aware of:

One. “I can’t bear to watch (someone — or something) come to harm.”

What spectators say when the amateur juggler starts twirling razor-sharp machetes. Example #2: at the movies (remember those?), before the homicidal clown jumps out of the bushes. Example #3: Chicago Cubs fans going into the bottom of the ninth of a playoff game with the opposing team’s tie runner at bat.

Two. “It’s physically dangerous to look.” Friend #1 during the solar eclipse: “Wow! Would ‘ja look at the sun’s corona?!?” Friend #2: I can’t, I’ll hurt my eyes.”

Three. “I’m busy/preoccupied right now.” Four-year old girl (plaintively): “Tommy (older brother) wrecked my dollhouse!” Mother: “I can’t look (right now) — I’m in the middle of preparing dinner.”

Four. “I can’t handle the emotional pain.” What onlookers said when 3 year-old JFK Jr. saluted his father’s passing casket.

Five. What says someone says, post-neck surgery (me, recently):  Laura Kaplan (wife/driver of car) at four-way stop: “Is there anyone coming from the right?” Ross Kaplan (husband/passenger): “I don’t know — I can’t (physically) look.”

Thankfully, after a few weeks of pain meds, rest, and ice, now I CAN look.

Next milestone: resuming driving.

See also, “The Multiple Meanings of “Watch Your Back!”“; ““Take it Outside”: the ORIGINAL Meaning“; “You Take the Cake!” (& Other Ruined Expressions)”; “The Multiple Meanings of “What Do You Know?!?”; and ““Shut Up!” Has 9 Different Meanings? Shut Up!! (No, YOU Shut Up!).”

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Will Soaring Home Building Costs End Up in Consumers’ Lap??

Lumber Prices Are Through the Roof, Punishing Apartment Builders.”

—The Wall Street Journal (5/25/2021).

[Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.]

Home builders nationally are facing soaring costs.

That includes inputs such as lumber, copper, and steel; fuel prices; and, last but not least, spiking labor costs — assuming builders can find skilled workers (hundreds of thousands left the industry after the 2007-2012 housing bust).

Will those costs be passed through to clients?

“Absolutely,” at least prospectively (as if there were any doubt).

Which leaves home currently under construction.

Work-in-Process

How do consumers know whether their home builder can legitimately pass along increased costs?

Step #1: read their contract.

Assuming such language: a) exists; and b) is reasonable, the answer would appear to be “Yes.”

The catch for consumers is that, even if the language isn’t reasonable, it will likely require a third-party — either arbitrator or court of law — to determine that.

Which means delay(s), potential legal fees, and sundry other headaches, complicating an already stressful process.

Practical Considerations

Even if the builder isn’t contractually allowed to recoup some or all of their increased costs, practically, clients face another risk (presumably greater with small(er) outfits): the builder doesn’t have the financial wherewithal to absorb the costs.

Which means their project(s) could potentially come to a halt.

All of which is why doing careful due diligence at the beginning of the process is more important than ever . . .

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Determining the Discount (Premium??) for Homes Located Across From a School

Key Variables: Type of School, Buyer Characteristics

Homes on busy streets typically fetch a discount.

Is there an equivalent discount for homes located across from a school? (which, in a way, is really just a subset of “busy street” — call it, an “intermittently busy street”).

I’ve never seen formal data on this, but I’d guess “yes.”

I’d further speculate that the discount varies depending on the following three factors:

One. School size.

Here’s my formula: Bigger = more traffic/congestion = bigger discount.

Two. Upper or lower school.

In Minnesota, at least some 16 year-olds start to drive, smoke, litter, and generally call more attention to themselves. You’d guess that being next to a teenager-filled high school would be more disruptive than being next to an elementary school — and therefore warrant a bigger discount.

Three. Combination of setback, setting, and aesthetic appeal.

At one extreme, the lower campus of the Blake School in Hopkins is straight out of a postcard: set on a picturesque hill several hundred yards removed from the street.

I doubt very much its neighbors mind that view — in fact, they might be willing to pay a premium for it!

By contrast, being near a loud, dirty, graffiti-covered school that could pass for a minimum security corrections facility would likely require a hefty discount.

Discount or Premium . . . to Whom??

As with anything in real estate, the identity of the individual client and their subjective preferences matter.

In that vein, wanna guess the ideal Buyer for a home located directly across from a good school?

A big family with lots of young kids.

P.S.: Due to federal and state anti-discrimination laws, listing agents (representing Sellers) avoid using such seemingly benign terms as “Family-sized,” “Perfect Family Home,” etc. in their marketing.

See also, “Explaining High Turnover on a Busy Street“; “Marketing a Home on a Busy Street”; “You Can’t Change a House’s Location (Can You??)”; and “Garage/Driveway Switcheroo.”

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Real Estate Marketing 101: “Alcove” vs. “Studio” Apartment

Is an “alcove apartment” easier to rent than a “studio?”

Apparently, at least one Twin Cities developer seems to think so.

So far, the term only seems to be a feature of the rental market: out of almost 1,000 condo’s currently for sale on the local (NorthStar) MLS, only five use the term — and not as a synonym for “studio,” but as a substitute for “nook” (e.g., “gas fireplace, alcoves for cabinet, 10′ ceiling, etc.”).

P.S.: the vast majority of the building cranes evident in the Twin Cities now appear to be for apartment (rental) buildings, not “For Sale” condo’s.

Someone (read, “lenders”) seems to think that’s the better bet right now . . .

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“Sold?” No, “Spoken For” (or if you prefer, “Under Contract”)

When “Sold” Doesn’t Mean “Sold”

At least in Minnesota, when you see a “Sold” rider above a “For Sale” sign in front of a house, it doesn’t mean “Sold” — it means “Pending.”

Huh??

The (admittedly confusing) convention is to pronounce a home that’s under contract and past Inspection — but not yet closed — as “Sold,” even though it’s technically still “Pending” on MLS.

So, why not just put up a sign that says “Pending?”

That would be my suggestion (and is the practice in at least some states).

However, I suppose then people would just be confused about what “Pending” means.

Whichever term is used, the goal is to let prospective Buyers know that the home in question is spoken for (and maybe, just a little, cement the Buyer’s sense of ownership).

When the home is really sold, you’ll know . . . because the “For Sale” sign will be gone.

P.S.: “Confusing Real Estate Terms – Advanced Beginner”: so, who are Realtors referring to when they say the “selling agent?” The agent representing the Buyer (the listing agent represents the Seller).

See also, “Quick! Who Does the Selling Agent Represent?“; “Accepted Offer” vs. “Fully Executed Purchase Agreement”; and “Final Acceptance” ” Real Estate Edition.”

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4-Season Porches in a 2-Season Climate (“Winter” & “Road Construction”)

“Screened Porches” vs. “3-Season Porches” vs. “4-Season Porches”

Quick! Which kinds of porches are included in a home’s finished square feet?

A. Screened B. 3-Season C. 4-Season D. All of the above.

Correct answer: “C.”**

If Realtors routinely confuse the various types of porches . . . I don’t know what chance a layman has.

Perhaps that’s why, as a public service for Twin Cities Realtors, the local MLS helpfully describes the differences — and critically, addresses when to include an enclosed porch in a home’s finished square feet.

According to the Northstar MLS’s “Rules Roundup”, here are the distinctions:

4-Season Porch/Sunroom

“A 4-season porch is a room that functions as an interior room, but allows you to take in the views of the outdoors year-round. It has permanent heat and is included in the finished square footage of the home.”

3-Season Porch

“A 3-season porch has windows with integrated screen systems and can be used for long periods throughout the year. They can shield you from outdoor elements such as rain, wind, sun and insects, but 3-season porches are not heated. Therefore, it is not a part of finished square footage, but is considered an enclosed space.”

Screen Porch

“Screened porches are a covered porch that has screened openings instead of windows. A screened porch may be less sheltered from the outdoor elements, but still offers protection from the sun and bothersome insects in the summer. Screen porches should not be included in the finished square footage.”

Practicing Conservatism

With that as prelude, here’s a practice pointer (my own, vs. MLS’s):

When in doubt, under bill vs. over bill.

That is, better to call it a 3-season porch than a 4-season, and safer to exclude the porch from finished square feet than to include it.

P.S.: Given how conspicuous a porch (of any type) is, it’s arguable whether — even if a Seller misstated its attributes — a Buyer would be entitled to rely on the Seller’s misrepresentation(s).

That’s especially after viewing the home multiple times (likely before making an offer), then subsequently inspecting it once there’s a signed Purchase Agreement.

See also, “Partial Bathroom“; and “Proposal: the Fractional Kitchen.”

**Note what’s missing from the possible choices: a “2-Season Porch.”

That’s because there’s no such thing.

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“Wait a Second! Don’t Sellers Try to Get MORE for Their Home, Not Less?!?”

Multiple Offers and Appraisal Worries (Still)

Alice in Wonderland would’ve loved today’s bizzaro housing market.

That’s because — in the midst of an unprecedented Buyer feeding frenzy — “up” is often “down,” “in” is “out,” and “down” is “up.”

Exhibit A: the Minnetonka home seller who reportedly countered a Buyer $20k below the price offered by the Buyer.

Outlier Offer

The background: almost immediately after listing their home at $400k recently, the Seller received multiple offers above their asking price.

Well above.

The presumptive winner?

An (over)eager Buyer who offered $450k, leaving their competition (never mind the asking price) in the dust.

Done deal, right?

Not so fast.

Seller’s Counter-Offer

The Seller — no doubt counseled by their listing agent — worried that their home wouldn’t appraise at $450k.

Instead of taking the deal at that price, they countered the Buyer at $430k — as in, $20k below the price the Buyer offered.

In addition to the lower price, the Seller’s Counteroffer stipulated that the Buyer: a) waive any recourse if the home appraised below $430k; and b) agree to put in more cash to cover any appraisal (and therefore mortgage) shortfall.

“Done” and “done.”

Just don’t expect to see that scenario repeated when (if??) the housing market ever becomes more balanced . . .

See also, “Buyer: “Too Low!” Seller: “Too High!” (Huh?!?).”

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Getting the “Homestead” Disclosure Wrong

Closing Headaches — Exhibit A

[Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.]

It’s not the biggest mistake Sellers can make — the maximum exposure is typically “only” a couple hundred dollars — but it’s still a headache that can delay if not jeopardize closing.

The mistake?

Representing that a non-homesteaded home is in fact “homesteaded.”

Background

What’s the distinction — and why does it matter?

At least in Minnesota, the government cum taxman distinguishes between principle residences . . . and everything else (2nd homes, investment property, etc.).

Depending on how you look at it, either the former qualifies for a (negligible) property tax discount, or the latter are assessed a slight premium.

In the standard Minnesota Purchase Agreement, if the Seller indicates that the property is non-homestead, the Buyer and Seller must then decide if the Seller is to pay any of the difference between non-homestead and homestead taxes.

If the “homestead” box is mistakenly checked . . . the Buyer and Seller have to address that issue prior to closing.

P.S.: “Homestead” status can also qualify homeowners for lower insurance premiums.

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“Mid-Century Modern?” Or Just “Mid-Century?”

The “You Know it When You See it” Test

While it’s true that every Mid-Century Modern home was built in the 1950’s (or thereabouts), it’s decidedly NOT the case that every home built in the 1950’s is a “Mid-Century Modern.”

In fact, in real life, very few are.

On MLS, for every home that I see billed as being a “Mid-Century Modern,” perhaps only one in four (25%) really qualify.

The rest are more properly described as “inspired by Mid-Century Modern design,” “Mid-Century Modern style,” “Mid-Century Modern influence,” and other adulterated adjectives.

Not-So-Telltale Sign: Name Brand Architect

So, what qualifies as the real thing? (apologies to Coke).

If the home was designed by an architect famous for their Mid-Century Moderns, their firms, or by one of their disciples . . . it probably is.

That list includes Joseph Eichler, the Keck brothers (George Fred and William), Henry P. Glass, Ludwig Mies van der Rohe, and Frank Lloyd Wright.

Of course, if any of those architects designed the home, the listing agent would loudly trumpet that fact ” and the home’s list price would likely include an extra zero (or two!).

Test: “Perpendicularity”

Assuming that’s not the case, however, how else does one identify a genuine “Mid-Century Modern?”

It’s more of a feel than any particular list of attributes, but I’d include such things as: sleek, spare design; horizontal, almost Prairie-style lines and spaces; 90° angles and what I’ll call “perpendicularity”; a flat or barely pitched roof; recessed lighting; and lots of glass and windows, especially transom windows that show off the tall ceilings.

And while I suppose it’s possible for a Mid-Century Modern to be two stories or a split-level, the classic version is just one, albeit with the aforementioned high or lofted ceilings (excepting those by Frank Lloyd Wright, whose homes famously have low overhead).

Finally, Mid-Century Modern homes typically have Mid-Century Modern furniture — sometimes custom-made for the home (however uncomfortable — another hallmark of Frank Lloyd Wright homes).

P.S.: Memo to listing agents: if you say a home is a Mid-Century Modern and it isn’t, it’s worse than simply not saying it at all.

Discriminating Buyers know the difference, and will feel misled once they’ve seen the home (if the pictures didn’t already give it away).

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What to Do About the Pornographic Statue** on the Neighbor’s Front Lawn

When the Neighbors are the Dealbreaker

Prospective Buyer: “We love the house. But we could never live across the street from that pornographic statue.” Phil Dunphy: “Oh . . . huh . . . I never noticed it.” Prospective Buyer: “Yeah . . . you can see it from inside when you look out the window.” Phil Dunphy: “Oh . . . ahh . . umm . . are you talking about that one?” (points). Prospective Buyer: “It’s quite large.” Phil Dunphy: “I’ll take your word for it.”

—-Modern Family; “Marble With Wood” episode.

Unlike TV Realtor Phil Dunphy, I’ve never had a listing torpedoed by an obscene statue on the neighbor’s front lawn (this is Minnesota, after all).

But, I’ve had sales where the neighbor’s snowmobile(s)/kayak/under-repair-motorcycle was an issue.

Sugar vs. Vinegar

Step #1 is always a friendly, “We’d really appreciate it if you could relocate your [ _____ ] while our house is on the market.”

If the “For Sale” homeowner doesn’t feel comfortable making that request, it’s certainly appropriate for their agent to (note: a six-pack of beer and/or a helping hand can help grease the skids).

If that doesn’t work — depending on exactly how odious the item is — step #2 is in order.

Namely, contacting the local municipality to see if the offending item(s) violate any city ordinances.

See also, “More Phil Dunphy-isms.”

**The TV producers digitalized the statue’s offending parts.

P.S.: Next-door dumpsters can be a turn-off, too.

But, as I like to point out: a) they’re temporary; and b) they can indicate that the homeowner is doing a (major) remodel, which is good for adjacent home values.

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“Minnesota Twins” x 2

Identical or Fraternal?

Look closely in the photo above, and you’ll see not one but two trunks at the base of this tree, about 1/2 mile west of Minneapolis’ Cedar Lake in St. Louis Park’s Fern Hill neighborhood.

The tree — make that tree(s) — command a key intersection, which give passing motorists (and pedestrians) a treat this time of year.

P.S.: a (slim) silver lining to this year’s coolish Spring: the prolonged blooming period — I’d guess 7-10 days instead of the usual 3-4.

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May Closings & (Minnesota) Property Taxes

But First . . . a Brief History Lesson

I don’t know about other states — I’m only licensed to sell real estate in Minnesota — but here, residential property taxes are due twice a year: May 15 and October 15.

Those non-randomly chosen dates stretch back to when Minnesota’s economy — like practically every other state’s — was agrarian-based.

The two times a year farmers predictably had money were in the Spring, before they’d planted; and in the Fall, after they’d harvested.

Tax collectors ” no dummies about such things ” realized that those were the best times to dun its citizens for property taxes (note: the May 15 payment covers the first half of the year; the October 15 payment the second half*).

Debits and Credits

Which leaves the more contemporary question, “if you’re selling your house in early (or late) May, do you pay the first half property taxes?”

The short answer (or at least mine) is, it depends on whether the Buyer’s lender is escrowing (collecting in advance) for it.

That’s usually resolved by a quick call to the Buyer’s closing company.

Generally, though, the safe guidance is to tell Sellers closing before May 15 to pay their first half property taxes, those closing after . . . not to.

Settling Up at Closing

Either way, the federal closing statement (called “the ALTA”) should reflect a pro rata adjustment between the Buyer and Seller.

If the Seller paid the first half taxes, they’ll get a credit for the May — June 30 portion corresponding to the new owner’s time in the home.

If the Buyer escrowed the property taxes, the Seller’s net proceeds will be debited (subtracted) for the interval between January 1 and the May closing, when the Seller still owned the home.

*Calculating pro rata property taxes for closings on (or close) to June 30 and December 31 is easy: they should be zero (or very small).

See also, “What’s in a Name? From “Settlement Statement” to “HUD-1” to “ALTA” Back to “Settlement Statement.”

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“Changing the Closing Date” Multiple Choice

Contractual Assent . . . and a Veto Power

[Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.]

To successfully change the closing date of a home sale, which of the following must agree?

A. The Buyer. B. The Seller. C. The Buyer’s lender. D. The Buyer’s title company. E. The Seller’s title company. F. The Realtors (Listing agent and Buyer’s agent).

Correct answer: all but “F.”

If you think that’s a lot of parties to sign off on a change . . . you’re right!

Which is why it seldom happens — especially within 7-10 days of the originally scheduled closing (and especially between April and July, prime time for closings following the super-busy Spring market).

Privity of Contract

While the title companies don’t get a contractual say in changing the closing — that requires a Purchase Agreement Amendment, signed by both the Buyer and Seller — they effectively wield a veto, especially over a desired faster closing.

That’s because the title company representing the Seller must comply with various filing requirements, which can be especially time-consuming when an estate or trust are involved, and the property is Torrens (= evidence of legal title; the older system is known as “abstract”).

Golden Rule

Of course, de facto veto #2 is wielded by the Buyer’s lender (assuming it’s not a cash deal).

Before lenders will fund a mortgage, they must finish vetting both the Buyer’s finances and the home they intend to buy, which in turn requires requires marshaling the Buyer’s W-2’s and tax returns, having the home appraised, etc.

If the lender’s underwriting department** can’t accommodate a faster close . . . also no dice.

P.S.: other things affected by a changed closing date: utility bill cut-off’s; moving company arrangements; and insurance coverage.

**After the lender has completed underwriting, they typically provide what’s called a Written Statement that ultimately gets forwarded to the Seller. Once that’s delivered, if the Buyer doesn’t close, their earnest money is non-refundable.

See also, “The 2nd Most Important Date in a Home Sale“; and “You Mean There’s No Deal, AND the Buyer Gets Their Earnest Money Back?!?”

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Housing Market’s Waiting List: “The Backup Offer”

As expectant high school seniors (and their anxious parents) know all too well this time of year, colleges have waiting lists.

But so, too, does residential real estate.

They’re called “backup offers.”

First in Line

Such offers are increasingly popular in a screaming Seller’s market, for several reasons.

For Sellers, a backup offer ensures that if deal #1 hiccups, deal #2 is teed up and ready to go.

In fact, that’s the definition of a backup offer: all terms are pre-negotiated, and the Purchase Agreement and all Addenda are signed by the Buyer and Seller.

All that’s needed to “activate” the offer is deal #1 formally canceling.

Seller Advantages

Sellers who have a backup offer in hand need not repeat the whirlwind of showings, second showings, home prep, etc. that accompany debuting on the market.

Not to mention going through a second negotiation days (or weeks) after the first one is complete (backup offers are typically negotiated on the heels of the first deal — the notion being, “striking while the iron’s hot”).

Too, simply having a backup offer in hand increases the odds that deal #1 will go through.

After all, Buyers who know that there is someone immediately behind them are less likely to aggressively negotiate any inspection issues, dawdle lining up their financing, or otherwise risk jeopardizing their deal.

Advantages for Buyers

So, what’s in it for Buyers?

Having a signed backup offer in hand ensures that they won’t have to compete against any other “runners-up” Buyers if deal #1 falls apart — a genuine risk in more and more deals these days.

The chief drawback?

The backup Buyer typically has to sit tight for 10-15 days while deal #1 plays out.

Which is still better than the excruciating 2-3 months high school seniors have to sweat it out on college waiting lists.

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Proper (& Improper) Purposes of Realtor Previews

Why “Just Previewing” (Usually) Serves Sellers’ Interests

A Realtor showing is when a Realtor takes a prospective Buyer through a “For Sale” home.

No competing Sunday open house traffic, no busybody listing agent (representing the owner) present, and — perhaps most importantly — no owner around.

The convention is to set up the showing online anywhere from a few hours to a day or two beforehand, and to block out a one hour window (since Covid-19, 30 minutes is now standard in many markets).

“Preview,” Defined

So, what’s a Realtor preview?

When the client isn’t along.

As a courtesy to the homeowner, the convention is to allow them to stay put while the previewing Realtor takes a look.

That’s significant because the owner can forego the whole “lights-on-vacuum-clean-the-Kitchen-sink” fire drill (that’s only appropriate if the Realtor brings the client back).

Practically, previewing can also mean that an owner with a bunch of little kids doesn’t have to bundle them up and divert them at the mall for an hour-plus when it’s 10 below in Minnesota in January.

Previewing can be appropriate for many different reasons, but the three most common are:

One. Busy or out-of-town clients.

Especially with relocation Buyers who have perhaps a weekend to make a home choice (in a brand new city!), time is of the essence.

Rather than squander precious showing time on homes that aren’t “best of class” at any given price point, a good Realtor will preview as many as 20-25 homes in order to find 8-10 to show the client (that number allows time for second showings at the 2-3 finalists).

Two. Narrow(er) Buyer criteria.

Some clients have broad criteria, e.g., “any style, in the West “burbs, with around 2,500 FSF in good condition for between $300k and $400k.”

Some clients . . . don’t.

When clients are looking for a truly unique or hard-to-find property, it can save everyone time for the Realtor to preview, and determine if something is in fact billed as advertised on MLS.

“Water View” or “Water . . . Glimpse?”

For example, I recently previewed homes for a client who has a strong preference for a water view.

Out of 8 properties (so far) that checked “water view” on MLS . . . only 3 actually did (the others had what I’ll charitably call a “water glimpse”).

Amazingly, another property that had a water view neglected to market that fact.

Which leaves the third reason, and the one that most frequently irks Sellers, what I’ll call . . .

Three. Listing agent “due diligence.”

Yes, agents about to list (and price) a home want to see what their competition is — and how their client’s home stacks up against it.

Why should home sellers be OK with this?

Because, in a few weeks, when the listing agent hosts an open house, and a prospect passes on their listing, the agent may very well double-back to the home they previewed (and which may actually be a better fit for the Buyer).

Of course, for every home seller who’s disappointed to hear that an agent is “just previewing,” there’s also usually another agent — the one listing their home — who earlier previewed on their behalf in the course of doing a Comparative Market Analysis and preparing to list their home.

They just may not have emphasized that to their client.

Four. Curiosity/Rubbernecking.

So, what’s an improper motive to preview a home?

George Clooney and Oprah don’t have homes in the Twin Cities (at least as far as I know), but plenty of celebrities do.

The list includes Bob Dylan (actually, northwest of the Twin Cities), Garrison Keillor, and a bevy of Twins, Vikings, and Timber Wolves.

Of course, as the headquarters to a slew of Fortune 500 companies like Target, 3M, General Mills, and Medtronic, the Twin Cities has (more than) its share of marquee homes.

When such properties are for sale, you’d suppose that there’d be at least a few curious Realtors who’d want to check it out ” client or not.

It’s also the case that such homes are usually (way) out of the price range of most Buyers.

Which is why their owners (and listing agents) invariably screen — and financially pre-qualify — all prospective Buyers.

And frown on Realtor previews . . .

See also, “Real Housewives of the Twin Cities”; and “Is Andrew Wiggins Leaving the Timberwolves?.”

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