Which direction is the housing market moving? (Huntsville: real estate market, houses)

[friday13]

RE: sqft >> Whoever said "bring three things to a house viewing: measuring tape, marble, flashlight" wasn't a stupid man. It was an "educator" . And that was my first DIY house-hunting lesson. You take your findings home and compare with the other homes on your short-list. But this is just one step (of many).

[Seth Parker]

Originally Posted by HB2HSV

Unless you realtors force a change within your organization, we the consumers will continue to have this perception. You MLS attorney is just a legal beagle, they have no incentive to tell you otherwise. If fact, you will minimize your "legal liability" (potential of getting sued) if you don't have any information posted at all. Does that make sense to you? One must balance "image" (marketing) and "legal". Those legal beagles can not make those decisions for you.

I had a recent conversation with a Relator. She complained that one particular builder will not accept a "contingency" on the sales contract guaranteeing the house is within X square footage as advertised. My reaction is do you as realtor go personally measure the square footage, then tell your buyer what your measurement is? I did not get a response. I'd suspect realtors don't do that because they too, are afraid of being sued by a buyer! Well, are you worry of being sued because your "market comp" was not accurate? Afterall, buyers rely on your "market comp" to make their buying decision, do they not?

So everyone is covering their behinds in the name of "legal issues" these days. The only motivation for changing this behavior is for educated buyers (like those of us in this forum) demanding these information. If changing these behaviors project an image of honesty & sincerity, hence will bring more sales commissions, then realtors have a much stronger incentive to change. Otherwise, they simply will tell you to go pound sands (in a diplomatic way).

Realistically, I worried of being sued for absolutely anything in this business. The things I say on my blog, the information I give a buyer, did I word it properly...etc. We are so limited to the things that we can and can't say for risk of being sued or losing our license, it's ridiculous. The question I get asked the most? "What kind of area is this? Is it pretty nice?" I know exactly what kind of area it is....I just can't answer, no matter if it's a $5million neighborhood or a crime filled New Orleans Housing Project. I have to give the "Go knock on doors, talk to neighbors, call the Police Dept., etc" answer.

Square footage on a home listing is derived from one of about three ways. 1. Tax records 2. Building plans/specs 3. Realtor goes out and measures. All three are consistently wrong. I could send three appraisers out to a house and all three would bring back different square footage numbers. A builder can build the same house 5 times, and every one of them will have slightly different numbers. It's the nature of the beast. Maybe it should take a consumer driven movement of educated buyers (like the ones on this forum) to remove some of the liability realtors face for answering and providing the information they desire? Just kidding.

I would say more, but I fear for getting sued lol

[friday13]

Originally Posted by Seth Parker

Maybe it should take a consumer driven movement of educated buyers (like the ones on this forum) to remove some of the liability realtors face for answering and providing the information they desire? Just kidding.

Kidding not, that's easy money. I cannot even imagine how a weblog or listing could hold any liability toward a realtor, unless the info was written into a contract that both parties agreed on. But again, that lack of legal creativity steered me away from the legal profession.

P.S. I guess a well-versed lawyer can still sue valleymls for the school info erroneously posted there soooo many times. The client could claim emotional distress for their kid would not be attending a 9GS school, but an 8. >> maybe I don't lack creativity after all...

[HB2HSV]

Originally Posted by Seth Parker

We are so limited to the things that we can and can't say for risk of being sued or losing our license, it's ridiculous. The question I get asked the most? "What kind of area is this? Is it pretty nice?" I know exactly what kind of area it is....I just can't answer, no matter if it's a $5million neighborhood or a crime filled New Orleans Housing Project. I have to give the "Go knock on doors, talk to neighbors, call the Police Dept., etc" answer.

LOL... I asked the same question when I was house hunting 2 yrs ago. My realtor said the exact same thing (we are not allowed to tell you...), but she said that she always locks her car if we're in a bad neighborhood <then she winks at me>, so I got the hint... LOL

I then asked her do y'all hire Mexicans to mow lawns like we do in California? She almost spit her coffee all over her dashboard.

Square footage on a home listing is derived from one of about three ways. 1. Tax records 2. Building plans/specs 3. Realtor goes out and measures. All three are consistently wrong. I could send three appraisers out to a house and all three would bring back different square footage numbers. A builder can build the same house 5 times, and every one of them will have slightly different numbers. It's the nature of the beast. Maybe it should take a consumer driven movement of educated buyers (like the ones on this forum) to remove some of the liability realtors face for answering and providing the information they desire? Just kidding.

Well then, may I suggest the following disclaimer:

*Disclaimer* the square footage # I just gave you is based on personal estimate I just pull out of <pointing butt>, you should not make a purchase decision based on my wild a$$ guess (WAG) *Disclaimer*

[Seth Parker]

Originally Posted by friday13

Kidding not, that's easy money. I cannot even imagine how a weblog or listing could hold any liability toward a realtor, unless the info was written into a contract that both parties agreed on. But again, that lack of legal creativity steered me away from the legal profession.

The problem arises based on how our real estate system is based. The simple fact that I'm a Realtor automatically means that I'm representing the seller on any particular home, right out of the gate. If we were to meet for the first time at a house, I'm immediately liable for anything I say, contract or no contract. If it's a $500K house and I say the seller will take $400K, I can be held legally accountable for the difference if the seller would not make the deal.

Most of our liability comes from specific listings. If I were to speak about listings in general, I'm pretty safe. We also have to be very careful with what we say about neighborhoods and areas due to being sued for steering. Schools are another hot point. We can provide factual data, but not really an opinion as to how "good" a school is. It all comes down to this. If we provide information that can factor in to someone's decision to buy a home....if we're wrong....we can be sued. They harp on that stuff like crazy in our Risk Management classes.

[Seth Parker]

Well then, may I suggest the following disclaimer:

*Disclaimer* the square footage # I just gave you is based on personal estimate I just pull out of <pointing butt>, you should not make a purchase decision based on my wild a$$ guess (WAG) *Disclaimer*

lol. I need to convert that into writing....and include stick figures for the pointing references

[Elizabeth_G]

As Realtors, we DO have to be careful. I was shocked when I recieved a call threatening to sue me over a comment I made HERE about a local builder. I was also TOLD that I would "go in and change my comment". I told them NO way. I was speaking the factual TRUTH. See where it gets us? This builder was threatening to sue ME, city-data, AND the BBB. Sadly, the thread was removed. I didn't appreciate being threatened nor did I appreciate someone telling me how to conduct myself professionally. I believe in being transparent with all of my clients. Honesty above all else. Isn't this what buyers and sellers are here for? If the market stinks, tell them. I'm not sugar coating a darned thing to keep "others" happy. I sleep just fine at night, by being open and honest at all times, regardless of how others think I "should" conduct myself.
*rant over, thank you very much*

The entire square footage issue does put us at risk...one I"m no longer willing to take. If a home is beyond my measuring capablities, I hire an appraiser to measure it for me. I also have disclaimers stating "if square footage is important, please verify". As Seth stated, 3 appraisers will get 3 measurments. I'm guilty of thinking "wow, this is only priced at "x" amount per square foot and am hopping mad if the appraisal comes back a bit below the stated square footage. So, I now include a disclaimer on the contract stating "if square footage comes back below stated square footage on listing, seller shall reduce sale price by "x" amount of dollars per square foot". Now, any smart agent would add in their counter "and if square footage is HIGHER than "x" amount, sales price will be increased. See where I'm going with this?

[friday13]

Originally Posted by wakeboarder

I'd be interested to hear from people that live there. Does it seem like housing prices are going up or down? Are homes selling quickly?

We don't know. But this is crazy! One's first thought would be "WHAT"S THE CATCH?" -the Proposed SFD at Savannah ($50-68/sft). I have a few ideas, but I might get sued for merely making observations and compiling info (opinions) I've been reading on Hsv RE market. But to my point, with more listings (s/d) like this, it looks like the prices are going down.. Or are they?

[Seth Parker]

the Proposed SFD at Savannah ($50-68/sft).

Savannah and a few others are exceptions to the rule. They actually have well built, energy star certified homes in those communities. There's lots of reasons why they're less expensive than the rest of Huntsville, but most have to do with amenities. These homes are built more for size and affordability than the "extras". It's not like someone will go into Savannah and get the same type of home that they'll get in Lake Forest for $80/ft cheaper or anything like that.

Prices across the board have definitely not gone up, though. They've come down some, but that's mostly from builders with excessive inventory dropping prices to survive. Resales have seemed relatively steady.

[FAL50]

Originally Posted by Seth Parker

A builder can build the same house 5 times, and every one of them will have slightly different numbers. It's the nature of the beast.

With all respect for you, but the above statement is just a proof of incompetence of the builder it that was so, that is the only way one can translate "the nature of the beast".

An architect draws the plans, a builder build exactly as is on the plans and each and every house will be exactly the same.
There will not be one inch difference in the footage.
Yes I have an architect and a builder in the family in Europe.
Each and every time when I see how sloppy a house is build in this area, I'm still surprisized how they get away with it.
And it does not make a difference that it is a $100,000.00 or a $1,000,000.00 house.