Tag: transaction process

How The Wrong Real Estate Attorney Can Screw Up Your Transaction

How The Wrong Real Estate Attorney Can Screw Up Your Transaction
9 years ago – almost to the day – I wrote a blog post about How To Choose A Real Estate Attorney, in which I explained some of the things that an attorney does to close a real estate transaction and where home buyers and sellers often make mistakes in choosing someone for this important... Read more »

Zillow Offers: Are They Putting Their Money Where Their Zestimate Is?

Zillow Offers: Are They Putting Their Money Where Their Zestimate Is?
Zillow has gotten themselves into a bit of an awkward position with their new Zillow Offers program. They are now in both the business of providing ostensibly unbiased estimates of home values AND buying and selling homes. It’s awkward because, on the one hand, if they determine home values using something other than their Zestimates... Read more »

Lawyers & Realtors Are Screwing Up Cook County Property Tax Prorations

Lawyers & Realtors Are Screwing Up Cook County Property Tax Prorations
Because Cook County property taxes are paid in arrears a home seller always owes back property taxes at closing which need to be paid. The home buyer certainly doesn’t want to pay them. However, the actual amount owed is unknown at that time. Therefore, the buyer and the seller have to agree upon some sort... Read more »
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How Dual Agency Affects Commissions And Rebates

How Dual Agency Affects Commissions And Rebates
Last week I wrote about how some researchers had measured the cost of dual agency transactions. They were able to determine that home sellers lost roughly 1.4% of the purchase price even when dual agency was disclosed. However, there are also some additional impacts on the home buyer and the seller and it all has... Read more »

The Cost Of Dual Agency In Real Estate Transactions

The Cost Of Dual Agency In Real Estate Transactions
In numerous past blog posts I’ve alluded to the problems of dual agency. The fundamental problem is that when there is only one real estate agent “representing” both sides of the transaction whose interest takes priority? In Illinois the way it’s supposed to work is that the real estate agent who is about to work... Read more »

Don't Put Too Much Faith In That Real Estate Appraisal

Don't Put Too Much Faith In That Real Estate Appraisal
3 1/2 years ago I wrote a blog post about some of our worst experiences with real estate appraisals and some of the systematic problems with that entire process. Needless to say that post was not well received by many real estate appraisers out there. Not surprisingly, they wouldn’t really admit to any problems in... Read more »
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Writing A Home Offer Letter To Win In Multiple Bid Situations

Writing A Home Offer Letter To Win In Multiple Bid Situations
In hot markets throughout the country, where home buyers are running into multiple bid situations, buyers often write home offer letters in an attempt to persuade the sellers to give them the edge – even over buyers offering more money. Frankly, it doesn’t even have to be a multiple bid situation since you could use... Read more »

What Happens To Earnest Money When A Real Estate Contract Falls Apart?

What Happens To Earnest Money When A Real Estate Contract Falls Apart?
In all the years we’ve been in business we’ve done hundreds of real estate transactions so we’ve seen our share of deals fall apart. In the Chicago market I estimate that 15 – 20% of all contracts written die on the vine and I believe our own experience is relatively consistent with that. Out of... Read more »

Hundreds Of Millions Pouring Into ibuyer Real Estate Business Models

Hundreds Of Millions Pouring Into ibuyer Real Estate Business Models
The smart money knows that the traditional real estate model is broken and dying. It was designed for a time when information about homes was hard to come by and everyone depended upon their local realtor who relied upon voluminous binders of listings. A dramatic change is long overdue. That’s why new real estate business... Read more »
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Real Estate Negotiation Myths And Reality - When Selling A Home

Real Estate Negotiation Myths And Reality - When Selling A Home
It turns out that you can understand a lot about what happens in the real estate industry by just trying to answer one simple question: Why are real estate commissions so high? And the mythology around the real estate negotiation process is a perfect example because one of realtors’ chief value propositions is that with... Read more »