Page 26 - Palm Beach Vol 7 No 2

Real Estate
April Fool’s Top 10 Real Estate Errors
FBy Laurie Dubow
or years, my husband has been amazed
as I report back to him my daily activi- ties as a real estate broker. We constant- ly joke, “You couldn’t possibly make
this stu up!” Every Monday morning, as I sit with my Paradise Realtors in our weekly meet- ing, we discuss their activities – past, present and future, and as we lament or celebrate their trials and tribulations, someone ultimately ex- claims, “You couldn’t possibly make this stu up!” When I have lunch or cocktails with one of my professional colleagues, we trade tales of success and woe, and the waitress will overhear the laughter as we exclaim, “You couldn’t pos- sibly make this stu up!”
roughout my real estate career, I have participated in thousands of transactions, and no two are the same. ere are o en twists, turns, and nuances that occur, and inevitably, it is one’s ability to navigate through the maze that creates the positive outcome that everyone hopes for. To me, a real estate transaction is
similar to a game of chess. I have to be thinking 12 steps ahead, planning for all of the possible contingencies that might occur, in order to protect my client and make sure that we have the highest chance of getting to closing.
Below are 10 errors that can create havoc and cause a real estate transaction to go south: 1. Errors in Qualifying for a Mortgage:
ere is so much involved in properly pre- qualifying a buyer to get a mortgage. It is critical that the lender fully examine all materials, including tax returns, bank state- ments, credit reports, divorce paperwork, and any other necessary supporting docu- ments, prior to issuing a pre-approval. It is devastating to all involved if a buyer nds out days prior to closing that the loan was denied because the person qualifying the buyer did not do their homework.
2. Appraised Value vs. Market Value: Un- derstanding the di erence between the appraised value and the market value, or marketability, of a property can be an im- portant distinction that can have a huge impact on the true value of a property. is will be particularly important in situations in which there is distribution of property in a legal case, such as divorce, termination of a partnership, the sale of a business, or an estate sale.
3. Underestimating Carrying Costs and Repair Costs: When evaluating the a ord- ability of a property, it is customary to look at PITI (principal, interest, taxes and insur- ance) as well as HOA/Condo dues. O en overlooked are the other costs, such as elec- tric, water, pool and lawn maintenance, etc. In addition, when considering purchasing or remaining in a property, it is critical to take into account the age and condition of the appliances, roof, A/C, and anything else that might need repair or replacement. Sometimes, these carrying costs or poten- tial repairs can add up to make a property una ordable.
4. Details of the Contract DO Matter: e addition or subtraction of a single word, paragraph or addendum can be the di er- ence between a successful transaction and a disaster. It is important that the Realtor and real estate attorney work together to
ensure the best outcome for our client.
5. Missing Signatures or Initials: One miss- ing initial or signature can cause a contract, listing agreement or lease to become inval- id. It is important to make sure that we dot
every “I” and cross every “T”!
6. Deadlines DO Matter: ere is a reason
why contracts have dates and deadlines for contingency periods. If a deadline is missed in a contract, it can have devastating con- sequences.
7. Probate/Trust Document Details: Under- standing the nuances of trust documents, probate documents, and a power of attor- ney is essential when they are involved in a transaction. It is important to enlist the expertise of an experienced attorney early in the process, to avoid any last-minute surprises.
8. Finding the Right Inspector: An inspec- tor that is overly dramatic can kill a deal, and an inspector that is not thorough can miss major problems that can be very cost- ly to a buyer.
9. Emotional, Psychological and Financial:
In my opinion, the area that most o en leads to errors in judgment with regards to real estate occurs when clients make choices based on emotions rather than a comprehensive plan. It is important to help them make decisions about their housing based upon a combination of emotional, psychological and nancial considerations. By helping them sort through the issues they will get the best outcomes.
10. Putting Together a Good Team: It truly takes a village to complete a real estate transaction. Putting together an experi- enced team and utilizing extensive contacts within the professional community is criti- cal to the success. is includes an array of attorneys, nancial professionals, inspec- tors, mortgage brokers, insurance agents, and service professionals.
roughout all of my real estate transac- tions, I become a trusted adviser, not only to my clients, but to all of the other professionals that are involved throughout the process. It is a tremendous responsibility, and even though it sometimes feels like April Fools, it is de nitely no joke!
A true real estate concierge, Laurie Dubow has an extensive background in counseling with a master’s degree in psychotherapy and a post- master’s degree in business administration. A licensed real estate broker and mortgage bro- ker, Laurie is the broker for Signature Paradise Realty International LLC and co-broker of Sig- nature Commercial Group. She is a certi ed luxury home marketing specialist, and a trained certi ed distressed property expert. This training included instruction on how to perform a broker price opinion or letter of opinion of value, which she has utilized in her experience testifying in court as an expert witness. For more informa- tion, visit www.SignatureParadise.com or call (561) 929-3329.
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