11/12/09We've been thinking about buying a new house for a little while, but the newly announced tax credit for second time home buyers pushes over the edge.
What can I say? We are suckers for free money, especially with a Democrat in charge who is just going to take it back later. Sure! We'll take your free money President Obama! We'll consider it a temporary loan since we're pretty sure you'll raise our taxes more than enough to demand it all back next year.
Today we go see a house where we meet the agent who will eventually sell us our home. We like this house a lot, we even discuss putting an offer in on it, but there's one problem. Our current home is not on the market yet and we need to sell it before we buy a new one.
We go home and gape at the photos of the Potential House. We imagine ourselves living there and spend the next few days torturing ourselves.
11/16/09
An agent named Dana comes to our house to convince us to list our home with her brokerage. She has a PowerPoint presentation and uses fancy words like "Twitter" and "Social Media." I am not impressed and I think I'm probably smarter than she is. (No offense to Dana, but, uh, it's the truth.)
They want the standard 6% commission. Thus begins a week long intellectual exercise wherein we discuss whether the Real Estate Commission Model is Fair? Equitable? Motivating to Whom? And what do we get for 6%? Is it worth it? Should we sell it ourselves?
WE DON'T KNOW.
We talk in circles, constantly, for a week. We get riled up and egg each other on. We can't decide what to do. My stomach hurts when I think about it at night - this question of whether selling our house is worth many thousands of dollars. We can think of a lot of things to buy with that money.
11/23/09
In the end, we decide to hire Dana after I have an email fight with her boss about commission and rates and what's fair and how he should Earn My Business Dammit. She seems moderately smart but mostly we hire her because their listings have the best pictures.
She also works with our buyer's agent who is showing us houses. They'll give us 1% back when we buy our new house from them, dropping total fee to 5%.
We still feel ripped off, in a major way, but we figure this is just how the industry is and even though we don't want to play along and perpetuate what we think is a crap business model, we do anyway because we are busy people and we really do want to move.
Harrumph.
I spend a great deal of time over the next two days fretting about whether the towels look fluffy enough on their hooks in the bathroom and lots of other stupid things. We take carloads of extra furniture, photos and anything personal, to the hangar to store until the house sells. I replace all of the pictures of people with photos of flowers. I buy some gerbera daisies. We drink a bottle of wine.
Over the next few weeks Dana does exactly nothing to help sell our
house. We knew what we were going to price the house at, we did all
the "staging" unassisted and I do a lot of buyer feedback follow ups.
It appears that she sent the photographer, stuck a sign in the yard and
filled in some forms to put it on MLS. After that, nothing.
Yep, Dana is worth just about as much as we suspected in the first place.
11/25/09
A man called Stuart shows up and takes photos of the house. He has a tripod and a wide angle lens and he takes these 30-second exposures that seem to last forever. He is in and out in 30 minutes. I'm pretty pleased with the photos.
Looking back, I think this, more than anything else, is the key part of selling a home these days. If you have a decent house, getting AWESOME pictures is really key to generating traffic. I think next time I might list the house myself and handle the contracts on my own, but I will DEFINITELY hire a professional photog for a couple hundred bucks.
Here's our old living room. It was a big room with not a lot of furniture (really, it was designed to be a dining room/living room but we just used it as a living room), but the wide angle lens really stretched the thing out. You can tell that it's distorted when you look at the TV; it's too long for its height. With my point and shoot I could only capture about a third of this space in one shot. Putting it all in one frame really helps tell the visual story.

Here's the same room from the opposite direction. Look at how weirdly shaped the front door is. Distortion Alert!
Here's our old kitchen. I painted it myself, and in person you can totally tell that I did, but the long exposure makes everything sort of hazy, so you can't tell here. You also can't see that the linoleum is nicked up and separating a bit at the seams and badly in need of replacement. Photo Magic!

And now, from the opposite direction. Are you starting to see what I'm saying about the professional photog? Dude knows how to stretch a room and make it shiny/blurry so it looks way classier than it actually is.
Check out the dishwasher - the dimensions aren't right because his lens makes everything wider. Cool trick, huh? Now when you look at house pictures you will totally be able to tell who walked in with a point and shoot and who had a tripod and good lens.

I liked my home a lot and it was clean, organized and decently decorated
(if I do say so myself), but it was definitely not considered "high end." We long ago stopped investing in it because we knew we'd never get the money back when we sold. It was not finished
out with top-of-the-line anything. It was a first home and was
finished out to match.
We priced it accordingly and hoped for the best.
11/26/09
Our house is for sale! OMFG! We are out of town for Thanksgiving and are encouraged when an agent calls to show the house that morning. We were warned that putting our house on the market right before the holidays might be a bad idea - people don't want to move at Christmas.
But we reason that a lot of people will probably list their homes for sale after the New Year and the market will get crowded, fast. We'd like to sell when there are fewer homes for sale in our neighborhood to choose from so that our house shines and looks like the best bargain to potential buyers.
12/4/09
Today we find House #1 that we try to buy. House #1 has a pool and spa. It also needs a complete kitchen remodel because it's stuck in the early 90's, but this sort of project appeals to me a bit. It's a big house in a great location.
Its been on the market for one day and we decide to come back tomorrow and see it again, just to be sure. We like it the second day and we make an offer.
12/10/09
Ever since putting the house on the market, we've seen a steady stream of people come look at it. We're getting good feedback through the showing service, even though it seems like a lot of people aren't quite ready to buy yet.
Buyers
liked the large living areas and open kitchen. Covered patio is nice.
Would prefer a little larger garage. Just started looking and must sell
their home before making any purchase decisions.
Clients
loved this house. They wished that the bedrooms were larger. They have
a contract on a short sale and like that one best. They are going to
wait on the short sale. This is a nice house.
Buyers did like the home. The only concerns they had were the size of
the secondary bedrooms. They need to get things in order with their
finances so it may be a while before they can move forward on anything.
Buyers loved the curb appeal...the backyard was large and covered patio was a plus.
We feel good that we'll be able to sell our house quickly after the holidays. We think this is going swimmingly.
12/14/09
We're finally under contract (with a contingency to sell our current home, of course) with House #1. It took a long time to negotiate and, in retrospect, this should have been telling.
The house is priced well below market (we think because of the horrible kitchen) and we offered 5% below list price. They counter with 4% below list price. We think this is pretty good and get excited about our "bargain."
And then we get the Seller's Disclosure.
(Cue scary music.)
On page 3 there's a vague reference to a shower leak and, oh yes, MOLD REMEDIATION. There are no attached invoices.
This spools me up in a hurry. I immediately suspect that they are hiding something and my suspicions are raised even more when my agent tells me that they were very insistent that we include language in the contract about the home being sold "as is." "AS IS" was a huge fight between our agent and theirs.
I start to think that this house is damaged and perhaps even dangerous. Maybe THIS is the reason it's priced below market and NOT the ugly kitchen. I begin to wonder if this is really a bargain after all.
I turn to Google, the place we all go to get spooled up EVEN MORE when we are scared.
Google is pretty helpful. In the State of Texas any mold remediation work should be issued a certificate by the state that basically says, "It's all cool now. Everything is fixed." I ask them to produce the Certificate and it takes several days.
Primarily, I lack context to evaluate the disclosure properly. Was this a slow leak over many years and the entire bathroom was covered in furry mold? Or was it a burst pipe where everything was replaced as a precautionary measure? Either way, I'm pretty sure that it's safe, but I worry about resale in the future.
In a buyer's market, why bother messing with a house with an asterisk when there are plenty of homes for sale without?
12/16/09
While they're looking for the Certificate of Mold Remediation issued by the state, we go ahead and perform the inspection because we're in our option period and we figure we need to find out if there's anything else wacky going on. Because really, we love this house. We love the location. We love the pool. We love the price. We're optimistic that the mold thing will resolve itself once the Certificate is produced.
The
inspection comes back relatively clean. There are 3 or 4 safety
related items and the dishwasher is broken. They agree to our requested repairs.
But, I've had a few more days to research mold and I'm completely freaked out. No, that's an understatement. I am outright panicked and having major doubts by now.
I wonder if we should perform an environmental inspection. We get the invoices from the Seller's Disclosure and they are...complex. It looks like a major job was done. I am overcome with stress and worry that this house is a terrible investment and WE won't be able to sell it and maybe we are really stupid buyers for wanting it in the first place and that's why they sold it for so little. THE MOLD, THE MOLD, THE TERRIBLE MOLD!
They produce the certificate but by now I'm so far gone to crazy town it doesn't matter. I need an environmental inspection to feel good about buying this home.
12/19/09
They finally deliver the Mold Certificate on Day 6 of our 7-day option period. I am highly annoyed and it does nothing to alleviate my case of the Mold Crazies.
12/21/09
We get an offer on our house today from a dude who left the following feedback:
Wasn't what my buyers are looking for and didn't like the street.
WELL. That was kind of him. Seems he really likes the house, huh?
His offer is ridiculously low. Laughably low. It also includes $6,000 for closing costs on top of the stupid-low sale price. We are excited (Woo, an offer! Someone likes our house!), but also realistic. This dude wants a crazy-bargain and we're not going to give him one.
We counter with something closer to reality and he immediately withdraws his offer completely.
12/22/09
We perform an Environmental Inspection today at House #1. We have extended the option period a week to cover this.
The inspector is a nice girl about my age, who went to Texas A&M and has a degree in bio medical macro chemistry something or other. She goes through the house with a moisture meter and shines her flashlight into the HVAC vents.
And that's where we find....MOLD!
It's ALL OVER the upstairs HVAC and it's visible in several rooms. I feel incredibly validated. I'm not crazy! This home has mold issues.
Then again, there's mold everywhere in the world, right? She says that it's not toxic and it's more the sort of thing that could give you allergies. Maybe. It's not really a big deal. Just replace the HVAC and you're golden. The house isn't a death trap.
But still. MOLD. I WAS RIGHT. (Incidentally, the bathroom that had all the actual remediation comes back clean.)
***
Okay, Part 2 to come later this week. This is a way longer story than I thought it was going to be. And I think I'm only 1/3 of the way through it.