Real Estate | Real Estate Articles & Blog – Don Dunning

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Today’s seller’s market is creating future victims: An Insider’s Look at Multiple Offers

By Don Dunning | April 5, 2013

“Common sense is the most fairly distributed thing in the world, for each one thinks he is so well-endowed with it that even those who are hardest to satisfy in all other matters are not in the habit of desiring more of it than they already have.”
– Rene Descartes

It is no secret that a shortage of inventory, combined with historically low interest rates, has led to a market where, in certain areas and price ranges, multiple offers are the norm. Recently, I wrote about the dangers of contracts without contingencies.

There are few areas of real estate where buyers need outstanding representation more than in the handling of multiple offers. Sadly, some buyers are working with licensees who lack the knowledge, caring, or both to protect them from paying more than necessary.

Contingency-free contracts can be dangerous

By Don Dunning | March 9, 2013

“It’s like deja-vu, all over again.”
– Yogi Berra

Unbalanced markets lead to unbalanced behavior that buyers often later regret. Today, extremely low inventory combined with record-low interest rates have buyers scrambling to be one of a horde vying to buy a home or condo.

The rules change when a substantial number of buyers compete for one property. This could result in five offers or over 25, depending on many factors. The compelling question for buyers is, “How can I get this home?” The answer, in my experience, can sometimes be detrimental to a buyer’s financial and emotional health.

Remember old truths in the new year

By Don Dunning | January 25, 2013

“Ignorance more frequently begets confidence than does knowledge.”
– Charles Darwin

Dunning-Kruger Effect

The “Dunning-Kruger Effect” is a simple, yet brilliant notion, but not because my name is attached to it (I am not related to David Dunning, who was one of the Cornell researchers behind this concept). It states that people tend to overestimate their competence and underestimate their incompetence in various areas.

Another way of saying this is that many folks don’t know what they don’t know and they think they know more than they really do. This is the definition of ignorance.

There are fundamental aspects of the real estate business that were not understood by buyers and sellers when I began over 33 years ago. They continue to be disregarded today. Ignoring these basics can be a costly mistake.

Buyers: Listing Agent is Not Your Agent

By Don Dunning | December 10, 2012

There are ethical restrictions and legal considerations for Realtors in dealing with another agent's client. This is related to making sure the agent acts in the best interests of his/her buyer or seller. These are generally unknown to the public.

Buyers are often not clear about what real estate licensees do and the differences between the role of the buyer’s agent (selling agent) and the seller’s (listing agent). This can lead to misunderstandings and upsets on all sides. Two recent situations illustrate this point.

Seller’s Market for How Long?

By Don Dunning | October 28, 2012

Human beings consistently fail to learn from history. If you are or will be in the market to buy or sell a home, not paying attention to the past could cost you dearly.

Trials and tribulations of a real estate expert witness

By Don Dunning | September 21, 2012

Being a Bay Area real estate expert witness can sometimes be fun, like the time I testified in court with a giant blow-up of one of my newspaper articles in front of the jury. Mostly, however, it is a stressful assignment that only a handful of real estate licensees choose to experience.

As an expert witness, I volunteer to be verbally accosted by opposing attorneys. In their zealous attempt to discredit my opinions and testimony, many lawyers on the other side of my cases seem to want to chew and spit out my larynx.

Aside from the jousting at depositions, arbitrations and court, other issues add to the difficulties of doing expert witness work.

Formula for listing – good for sellers?

By Don Dunning | August 10, 2012

Sellers often ask my advice on what work needs to be done to prepare a house for sale. In certain cases, they had spoken with other agents and were uncomfortable with suggestions which seemed to benefit the agent more than the seller.

Some agents fall into a pattern of how they approach sellers and what they recommend to get the home sold. The agent’s advice tends to be similar for all sellers, despite differences in the properties and/or the sellers’ needs. This one-size-fits-all approach is often not best for the seller. Sadly, the average seller rarely takes the time to investigate what a listing agent should be doing for him.

Not the sharpest knife in the drawer

By Don Dunning | August 9, 2012

I received a call from the seller of one of my listings. He told me a very funny story. He happened to look out his window in time to see a car pull up in front of his home. He watched as an agent got out, walked to his front steps, sat down and pulled […]

Beware of dogs in homes

By Don Dunning | June 30, 2012

It is estimated that 39 percent of U.S. households own 78 million dogs. Or, as dog lovers like my wife and I understand, the dogs own us. In spite of all the joy these creatures bring, they can cause damage in a home. Most folks recognize this.

Sometimes, however, what we think we know takes on an entirely different dimension. That was the case with a woman who bought a lovely East Bay home over a year ago, but has yet to move in.

Electronic signatures: Convenience with concerns

By Don Dunning | May 18, 2012

Digital signatures have been legally authorized for over ten years, but rarely used in real estate because of resistance from California banks; however, they are becoming increasingly common.

What is gained in expediency and convenience needs to be balanced by the potential risks of buyers and sellers “speed-signing” without fully understanding the real estate documents they are approving.

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