It’s pretty standard now to show homes that have been vacated by the owners, either by foreclosure or in a short sale situation.  In both cases, the owners have fallen behind in payments, and one way or the other, either by force or by choice, they leave the home vacant.

Enter the all knowing, all seeing, all too oblivious real estate agent.  That would be me, by the way, at least the oblivious part.  Today I was showing homes in the Temecula area, when at our last home at about 2 pm in the afternoon we entered a vacant home in a very nice neighborhood.  The home  had a pool that was in apparently good shape, an interior that was slightly outdated but clean, and although there was pretty good light entering through a number of windows, it was otherwise impossible to see because the electricity had been shut off.

That’s when I wandered down an interior hallway and into a very dark bathroom just adjacent to a downstairs bedroom.  I took one step in while at the same time running my hand along the wall inside to find the light switch.

Then this. 

Yep, unmistakable sound of a very loud, very nemesing rattle from a sound I’ve heard many times before at my rural home in Vista.  Mr. Rattlesnake was lying in the dark, and he certainly wasn’t going to let me come into the bathroom without giving me fair warning.

I’m just writing this now, although it’s been a few hours, because it took quite a long time for the goosebumps to subside and my heart medicine to kick in.  If you think seeing a rattlesnake is scary, then you out to encounter the sound of one in the dark.  Yikes!

I’ve been bitten by the lure of real estate most of my life, but I think I’ll take a pass on being literally “bitten.”

Anyone out there had any similar experiences?

Writing this today is about the easiest thing I’ve done in quite a while.  My neighbor, a good guy originally from St. Louis, was kind enough to email me this really touching video. 

Stop what you’re doing and watch this.  One of the reasons I love helping people buy and sell homes is that the diversity of each client speaks to all that is vibrant and real in life.  This video, in a venue we have probably all seen, wrapped me in some pretty moist eyes last night when I watched it.

I hope it will moisten your eyes, lift your spirits, and perhaps make you a little more sensitive to beauty in its true form.

This post is reprinted from an article I wrote for the Oceanside Business Journal a few years back.  It bears some review now that many buyers are purchasing real estate in San Diego and other areas that are bank owned, or REO’s as they are called. 

THAT WAS THEN…………….

Question:   Don, my wife and I bought a home that was built 7 years ago.  Now, there seems to be a problem with the plumbing in two of the bathrooms.  Is there anything we can do? 

Answer:  There well may be.  California has rather stringent rules (Siegel v. Anderson Homes) that may make contractors and builders liable for construction defects that occur or are discovered within the first 10 years after the home is built.  Here’s how it works.

 Builders are responsible for any latent defects that arise within 10 years after the home is built.  So when you and you wife discovered recently that there was a problem with your plumbing, and if that problem was caused by a construction defect, then the builder of  your home is liable.  You may rightfully contact the builder and ask that the problem be corrected.  

 You don’t mention whether you were the initial buyer of the home, and in fact you do not need to be.  Even if you are the 2nd or 3rd owner you may benefit from these construction defect laws.  But what about purchasing a home that was built 20 years ago?

 Unfortunately you will not be able to go back to the original builder when the home was built over 10 years ago.  However, if there is a defect, and the defect was KNOWN by the previous owner, then you may very well be able to ask that owner to correct the problem.  As we often say in this column, it is imperative that any known problems be disclosed to buyers, and withholding information may make the seller liable at some time in the future if the defect is discovered. 

 So, here’s our advice.  If you buy a home that’s 10 years old or less, then you may look to the builder should you discover a problem.  If you buy a home that’s older than 10 years, you will not be able to look to the builder for repair, but you may be able to obtain relief if any previous owner of the property withheld information on the defect.  And, if you find yourself as a seller of property, always remember that you must disclose, disclose, disclose, or potentially have a subsequent buyer come back to you for compensation.

THIS IS NOW……….

If you are in the midst of buying a home that is bank owned, an REO, then you need to pay close attention.  In all cases, unlike what has been described above in the typical arms length transaction, the bank is going to provide you with NADA, nothing, and they are going to do it so you will feel as if you have no recourse.  They’ll do this by having you execute an addendum to the standard purchase agreement.  In the addendum they will let you know that they (the bank) never lived in the property, and thus they don’t know anything about the property, and thus you are buying the home “as is." 

The banks will never negotiate over this.  Their contract is intended to be a full proof way for them to never have to revisit any issue related to the condition of the property.  Their lawyers will just tell you to pound sand if you change or ask for any change in their non-disclosure part of the contract.

So what to do?  First, understand that while the contractual aspect of the disclosure process has not been agreed to by the bank, YOUR RIGHTS have not been diminished in any way.  It is still your right, and your responsibility, to do a thorough and complete investigation of the property, searching any known records, asking neighbors, agents, title companies, insurance companies, etc. what they may know about the property you are about to buy.  It is still your right and responsiblity to have the very best physical inspection of the property, and be there with eyes and ears open while the inspection is being done. 

If you find a major problem, let the bank know.  While they may not want to repair or remediate the problem, they often will if it is the kind of problem that won’t go away in the future for any potential buyer.  If the problem is one of health and safety, then the bank is likely to be particularly cooperative.

In the end, know your rights about disclosures, and know how those rights are altered in a bank owned, REO sale.  Good house hunting! 

I took a young couple out looking for homes today. First time we had met, and our initial introduction had been through my web site and a couple of emails.

In the course of our meeting I engaged in my usual convivial chatter, finding out in small snippets where they were from, what they were dreaming, and of course, what they “did for a living.” Now an old philosopher, Soren Kierkegaard, once wrote “if you label me, you negate me", and being not quite that old, but old enough to remember and revere the 60’s, I always ask “what do you do” hoping it creates something that really takes me to the core of that person, not just to the superficial meaning of his or her life as labeled by a job.

So today I asked “what do you both do?” She said, “I’m ex-military, and he’s still on active duty.”

“What branch?", I asked.

“I was in the Air Force", she said, “and he’s in the Marines.”

We’re here in Oceanside, California, home of Camp Pendleton, and some of the finest young men and women in the whole world. I myself served as a Marine many years ago, but continue to find that meeting and interacting with young service people always makes me glad I live in the San Diego area where so many opportunities arise to do so.

“What do you do in the Marines?", I asked.

“EOD’s,", he said.

I’m looking at him, and he’s a young guy who clearly loves his gal, his country, and is not a big talker like me. So I ask him, “EOD’s….what are they?”

“Explosive Ordinance Devices,” he says. “You know, when they set the roadside bombs, me and my unit find them and neutralize them. We make it safe for the rest of the guys.”

“Been to Iraq yet?", I asked. “Three tours,” he says, and again he’s taking his girl’s hand and
concentrating on her.

He’s not even looking straight at me, and I think I sense he’s reluctant to make it sound like anything he does is important. After all, I have my Realtor’s badge on, my head filled with facts about the market and all the homes I’m going to show them. It’s clear he’s looking at me as though I am important.

Well, for today, and to once again remind all of us, Real Estate, is NOT AN EOD!! It’s a job, and it’s a job some of us do well, love, and that can make a difference, but one that nonetheless “labels” us. I want to say that the next time someone meets me and engages in small talk, including asking “what do you do", I’ll say something really honest, really revealing, and perhaps really dangerous. I’ll say, “I met a Marine who did EOD removal…..do you know what that is?"…..and then talk about this young man and young woman until the subject changes to why what THEY do make what WE do possible.

In January of 2007 I began my quest. to start talking about, no shouting about, equity sharing, its benefits and value to the new generation of home buyers and their parents.  Almost a year and a half later, with much help and encouragement from real estate pros, lenders, attorneys, financial consultants and friends, our dream has finally taken material shape, and buying and selling real estate in San Diego with the proven strategies of equity sharing are about to become a reality.

I have enlisted the aid of some very smart, and some very good people to make this happen.  As we move along, you’ll come to meet them.  You’ll enjoy the discussion, learn a lot, and hopefully lives will be changed.  Dreaming?  Perhaps.  But this is the stuff that makes life the wonder it is. 

Dream along with me……………..