Q. Tom, I plan to list my home for sale in the next 30 days; we live in an upscale community – the value of my home is $1,500,000 +. I have seen some real estate firms advertise their ‘luxury home’ or ‘estate home’ sales marketing expertise; is that kind of exposure beneficial to me as a seller or is it just marketing ‘smoke & mirrors’?
It can be either, depending on which company and/or agent you work with. A select number of real estate firms have experienced agents in the upper-end or luxury sector of the market and you will most likely benefit from the exposure they can provide for your home. Agents who specialize in the luxury markets tend to have detailed information on past and current sales, usually have ‘inside info’ on upper-end homes that were privately bought and sold (not on the MLS), a database of business contacts with upper-end clients who fit the ideal target buyer profile and sometimes an exclusive affiliation with an international luxury marketing brand that provides a bit more advertising sizzle. So, how do you find out which agents and companies have the best luxury marketing resources? Pay attention to the “for-sale” signs on similar homes in your community (especially if a SOLD rider is hanging at the bottom). Conduct internet research and outright ask the agent you are interviewing which and how many $1,000,000+ buyers & sellers they have represented in the last 12 to 24 month period. If your home is more ‘Nordstrom’ than ‘Wal-Mart’, you’ll want to align yourself with a real estate company that caters to affluent clientele who can afford a fine home in your upper-end price range.
Q. I am a buyer and I feel a bit uneasy providing a big ($20,000) deposit check at the start of a home purchase transaction for fear that I may lose the money if I later back out for a legitimate reason. At what point does the seller get to keep my deposit?
I’m not an attorney but as a licensed real estate broker I can assure you the seller cannot retain your deposit money until it is proven that you, the buyer, have breached the contract. And it takes a lot to do that. Among other safeguards, the standard California Association of Realtors’® (C.A.R.) purchase contract has three major contingencies: 1) loan, 2) appraisal, and 3) inspection. Upon releasing or waiving those contingencies, you ‘firm up’ the contract. If the buyer (you) walks away from the transaction after that, the seller may then lay claim to the deposit.
Q. Nearly every agent I speak to regarding selling my home wants to put a lockbox on or near my front door so that agents may access the house key inside it when I’m not home. Is a lockbox a smart thing to agree to? Is it safe?
In the vast majority of instances, electronic lockboxes are a very secure way of providing access to a home. Many sellers are not home (nor should they be) when agents show the property to qualified buyers—and that’s what it’s really all about—getting the right buyer in to see the home. So, allowing agents access by utilizing a state-of-the-art lockbox is a wise thing to do. Keep in mind, only agents can access the house key in the lockbox, agent ‘access codes’ are updated weekly as a security precaution and each entry to your home is recorded electronically, to the minute, should your agent need to identify who was in the home for any reason. One last feature: most newer electronic lockboxes automatically ‘lock down’ every night about 9 pm, until the next day, to keep everyone, including agents, out of the properties in the later evening & night time hours providing peace of mind for all.