Mitch Canin, the Canin Group

(520) 907-6526

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Mitch Canin

35 Years Experience – Over 1500 Transactions

  • Dedicated
  • Exacting
  • Compassionate
  • Innovative

Phone

(520) 907-6526

Office

  • 7423 E. Tanque Verde Rd.
  • Tucson, AZ 85715

Email

Canin.mitch@gmail.com

Life in the Real Estate Trenches

THE HALLMARKS OF SUCCESSFUL NEGOTIATION

October 16th, 2017

Too often, opposing parties locked in negotiation approach the process from the standpoint that in order for one party to win, the opposing party must lose. This “all or nothing” philosophy is not only limiting but often counter-productive, resulting in no agreement whatsoever.

The best negotiators approach the process with a win/win philosophy, one that acknowledges the goal is for each party to walk away from the negotiations feeling satisfied.

Negotiating parties do well when they understand that they must often compromise in some areas in order to reach a consensus in others. This is how some sellers will be flexible on price in order to get the ideal closing date, or why a buyer will pay a higher price in order to get the seller to absorb some of the buyer’s loan fees. This is why some sellers will include the $2,000 refrigerator in the sale in exchange for extending the closing date 3 weeks.

SELLERS, BEFORE YOU PICK A REALTOR, GET ANSWERS TO THESE QUESTIONS:

October 14th, 2017

  1. WHAT IS YOUR NEGOTIATING PHILOSOPHY?
  2. DO YOU USE A PROFESSIONAL PHOTOGRAPHER?
  3. HOW MANY HOMES HAVE YOU SOLD IN MY AREA?
  4. HOW MANY HOMES HAVE YOU SOLD OVER THE PAST 12 MONTHS?
  5. DO YOU HAVE TESTIMONIAL LETTERS FROM PAST CLIENTS?
  6. DO YOU FOCUS ON REPRESENTING BUYERS, SELLERS OR BOTH?
  7. WHAT IS YOUR FEELING ON DUAL AGENCY?
  8. HOW DO YOU FEEL ABOUT OPEN HOUSES?
  9. IF YOU HAVE A TEAM, HOW MUCH TIME WILL I ACTUALLY BE SPENDING WITH YOU?
  10. WHAT ARE YOUR PERSONAL STRENGTHS AS A REALTOR?

TOP 10 BUYER MISTAKES

October 13th, 2017

  1. USING THE SELLER’S REALTOR TO REPRESENT YOU…DUAL AGENCY.
  2. NOT VERIFYING SQUARE FOOTAGE DURING THE INSPECTION PERIOD.
  3. BUYING A HOME ADJACENT TO VACANT LAND WITHOUT CHECKING INTO ITS ZONING.
  4. FAILING TO STUDY AND UNDERSTAND THE MARKET ANALYSIS OF THE NEIGHBORHOOD BEFORE MAKING THE OFFER.
  5. ALLOWING FEAR TO IMMOBILIZE YOUR RATIONAL DECISION MAKING CAPABILITY.
  6. RAMAINING CALM DURING NEGOTIATIONS.
  7. FAILING TO HIRE A GOOD HOME INSPECTOR.
  8. FALLING IN LOVE WITH THE HOUSE BUT NOT PAYING ATTENTION TO THE NEIGHBORHOOD.
  9. WALKING AWAY FROM NEGOTIATIONS OVER RELATIVELY MINOR ISSUES SUCH AS APPLIANCES, WHO PAYS FOR THE HOME WARRANTY AND A SMALL CHANGE IN THE CLOSING DATE.
  10. BEING UNREASONABLE OR OVER ZEALOUS DURING THE INSPECTION PERIOD.

WHY IT MAY BE WISE TO HIRE A SEPARATE LANDSCAPE INSPECTION WHEN YOU BUY

October 11th, 2017

Most home inspections fail to focus enough time on areas outside the home, such as soil and grading issues, size and location of trees and watering and lighting systems. In fact, most home inspection reports specify that the inspection does not cover the aforementioned.

Therefore, it becomes the buyer’s responsibility to hire separate specialists to insure the discovery of deficiencies or lurking expensive projects. Hiring landscaping, irrigation and outside lighting specialists may set you back another $200 in inspection fees, but it’s often money well spent.

Mature trees can sprout roots that upend sidewalks and driveways, a faulty irrigation system can waste water and increase utility bills and lighting systems can cost several hundreds of dollars to fix or even thousands to replace. Make sure everything works!

Q & A

October 9th, 2017

Q) We are under contract on a $300,000 home. The listing of the home cites the square footage as 2175 and notes the Pima County assessor’s records as the source. The Seller Disclosure Statement cites that the square footage “may” not be as much as is cited on the Assessor’s records. We raised no issues about the footage during the inspection period, nor did we hire anyone to perform a measurement. Two weeks after our 12 day inspection period, the appraisal came back at $300,000 but the measured footage was 2025, a good 150 feet less than was represented! Can we renegotiate or even cancel due to the misrepresentation of the footage?

A) If you cancel now, your earnest money is subject to default. The time to dispute the footage was during your inspection period. Besides, the seller even raised the possibility of less footage in his “Seller Disclosure Statement.” Most importantly perhaps, in spite of the square footage discrepancy, the home appraised at the sales price.

Q) On Monday at 9 AM, we submitted an offer giving the seller until Tuesday at 6 PM to respond. On Tuesday at noon, we still hadn’t received a response. At 3 PM Saturday, the seller’s Realtor notified our Realtor that we were now competing with another offer. I thought Realtors had an obligation to submit offers to their sellers “as quickly as possible?” We feel manipulated by the seller’s Realtor.

A) Though you have a right to your feelings, I see no unethical behavior by the seller’s Realtor. In fact, the seller’s Realtor likely submitted your offer “as quickly as possible” and the sellers, as is their right, utilized the time given to respond in your offer; 6 PM Saturday. In the interim, a competing offer came in. The sellers may accept or counter either offer. They can even issue counter offers to you as well as the other party.

Q) I’m going through a particularly an acrimonious divorce and am tired of living in an apartment. I qualify for a home on my own and found the perfect property. Can I still buy even though my divorce is not final?

A) Yes, you can, but there are hurdles. Both the lender and title insurance company will require your estranged spouse to execute a “disclaimer” relinquishing any interest in the property. Obtaining a disclaimer is a simple matter in amicable divorces.In acrimonious divorces obtaining the disclaimer, if it can even be obtained, is often “negotiated” either between the estranged couple or their attorneys.

TOP 10 WAYS SELLERS SABOTAGE THEMSELVES

September 6th, 2017

1) Primary criteria in choosing their agent? Whomever quotes the highest price.
2) Choosing a Realtor based on family or friendship, rather than due diligence and credentials.
3) Failure to correct deficiencies likely to trigger buyer objections, before going on the market.
4) Remaining in the house during showings.
5) Failing to corral pets during showings.
6) Discounting or ignoring the feedback garnered from showings.
7) Not allowing the Realtor keybox for easy access.
8) Exhibiting rigidity, inflexibility during negotiations.
9) Actions motivated by Greed. (This requires an entire article)
10) Actions motivated by fear and distrust. (Again, an entire article needed.)

PROACTIVE VERSUS PASSIVE SELLERS

September 6th, 2017

Homes seldom sell right off the bat. More often than not it takes weeks or months for a property to generate the right buyer.
One of the key functions of the seller’s Realtor is to gather and interpret data over time, using it to dispense advice designed to accomplish the seller’s stated objective of selling.
The listing agent’s practice of gathering data runs the gauntlet from garnering feedback from showings, tracking real estate activity in the immediate area and staying abreast of the seller’s often evolving circumstances.
A seller’s reaction to data provided by the listing agent typically sees them falling into one of two categories; Passive or proactive. Let’s examine the disparate traits associated with passive and proactive sellers.
PASSIVE SELLERS tend to have relative blinders on about their home. Even though the feedback points to the need to address problems (clutter, pets, deferred maintenance, price considerations etc.) the seller remains unresponsive, rebutting the feedback and investing in hope and denial at the expense of action. “Maybe the next prospect will pay my price.” “Why paint the interior when the next buyers can choose their own color? “ No showings before 10:00 AM.” “I’m in no hurry to sell.” “It’s only been on the market for 3 months.” “I’m not going to give my house away.” “Why should I pay $2,500 of the buyer’s loan fees?”
PROACTIVE SELLERS are responsive to feedback about their home, objective about the home’s potential drawbacks as well as the realities of the market. They exercise relative flexibility, especially in a tough market or if theirs’ is an unconventional home. Proactive sellers will pay for a buyer’s home warranty, some loan fees, even both, as long as doing so leads to a reasonable meeting of the minds and a net at closing that enables them to move on and let go of the responsibilities of a home they no longer need or want. Finally, proactive sellers are typically far sighted in the way they respond to both suggestions and offers. They understand the relationship between risk and reward and are able to grasp that time is money.

Q & A

September 6th, 2017

Q) When we bought our home in 2001, the then- seller stated on the Seller Disclosure that the polybutylene piping had been replaced in 2000. In May of 2017 we put the house up for sale. Naturally, when we filled out our Seller Disclosure, we answered identically, that the polybutylene had been replaced. Unfortunately, the buyer hired a plumber to inspect our piping (Something we failed to do in 2001) and it turned out to be polybutylene. Now, in order to sell, we have to replace the “poly” to the tune of $9,000. Two questions; “Do we have a claim against the previous seller?” “Does our current buyer have a claim against us??
A) You have a claim against the previous seller as they knowingly supplied false information. As to the second question, your current buyer would not seem to have a legitimate claim for these reasons: 1) You can provide the previous seller disclosure as proof you did not knowingly falsify the disclosure you filled out. 2) You have agreed to replace the polybutylene. Through the lens of 20/20 hindsight, you’ve learned the hard way that the difference between a claim and a fact.
Q) Our home is under contract and the buyer, who has been difficult throughout the negotiations, is past the inspection period. Yesterday the buyer’s Realtor issued a request that he be allowed to return to the property several more times with contractors in order to obtain numerous bids for his planned renovation. Do we have to comply with this?
A) You do not. The buyer’s negotiated inspection period (Typically 10-12 days) and the final buyer walk-thru inspection are the sole times a seller must make the home available to a buyer. You are within your contractual rights to decline the request.
Q) We’re about to put our home on the market, have lots of deferred maintenance and a relatively small amount of capital (Under $4,000) with which to address it. How much should we spend and on what shall we spend it?
A) The question is best answered by a Realtor who can actually assess the degree of deferred maintenance in relationship to the $4,000 you have to address deficiencies. It may well be best to preserve your capital in that throwing $4,000 at $20,000 worth of issues may not change the overall response to the house. For example, let’s say the entire interior needs painting, four bedrooms need to be re-carpeted, the yard is neglected and you need a $9,000 roof. Simply re-painting the interior does not increase the value or enhance the marketability of your home.
Q) After the buyers performed all their inspections, the “Buyer Inspection Notice and Seller Response,” they submitted asked us to pay up to $4,500 of the buyer’s loan fees in lieu of various deficiencies noted on the inspections. We think the figure should be about $2,500 but we don’t want to lose the sale. How should we respond?
A) Unlike negotiating the purchase contract when the parties can counter back and forth endlessly, during the inspection period, the seller’s response to the buyer’s repair request must either be accepted or the sale cancels. Therefore as it relates to whether you should attempt to negotiate the $4,500 down to $2,500, you must ask yourselves the following question; “Are we willing to start marketing our home again over $2,000?

A FEW INSIGHTS ABOUT HOME INSPECTORS

May 10th, 2017

Always remember, a home inspector is a generalist. If the home you’re attempting to buy has areas of vulnerability, it may also be wise to invest in additional inspections performed by specialists who are licensed in specific systems. The Seller Property Disclosure Statement will typically point a prospective buyer to aspects of the property that may require review by a specialist. These typically include but are by no means limited to: Roofs, pools, termites, structural engineers, electricians, termites, plumbers etc.

Before settling on a home inspector, talk to at least two who are recommended by reliable sources. Ask for their designation and to see a sample copy or their inspection and summary reports performed for another property. Obviously, cost and willingness to explain the various systems inspected is also essential.

Q & A

May 4th, 2017

  1. Q) I’m a seller who just received an offer on my home. How should I evaluate its overall strengths and weaknesses?
  2. A) Obviously, the two most important indicators are the price and the ability of the prospective buyer to qualify for the loan. Beyond that, negotiating sufficient earnest money, an acceptable closing date and insuring the fewest number of contingencies that could jeopardize the closing are also crucial. If there’s a weak link in any of the preceding elements of the offer, be prepared for frustration and disappointment.
  3. Q) We got a full price offer on our home but the buyer’s obligation to close is subject to the closing of his home in 45 days. Your thoughts?
  4. A) There is another layer of seller risk whenever entering into a contract that is contingent upon an unrelated property closing escrow. That said, the sale of your home is not contingent upon another party finding a buyer for their home, only closing the sale with an existing buyer. Regardless, your listing agent should not only review the contract of the other property but insure the other house is past the inspection period and that the buyer of that other home is well qualified.
  5. Q) When we bought our home 6 years ago, the Seller Property Disclosure Statement (SPDS) cited a previous roof leak that had been repaired. In our 6 years, there’s been no leaking. Now that we’re selling do we have to disclose the previous leak, even though we didn’t own the house then?
  6. A) Yes, you must disclose. The questions in the SPDS relate to your knowledge of the property, period…. and not simply your knowledge during your ownership.
  7. Q) We just entered into a contract to acquire a 27 year old home. Our Realtor says that one of our inspections should include hiring a plumber to run a camera from the roof to the street to check the sewer lines. The test costs $150. Is it worth it?
  8. A) The older the home, the more corrosion and build up could be clogging the lines to the street. Tree roots on properties as young as 10-15 years can work their way into the lines, causing thousands of dollars of damage. I think the $150 is worth it.