Wednesday, April 23, 2014

Our Buyer's Home Scoring System Protects You!

As a real estate broker, 20 years ago in 1997, I created or invented a system and process to score homes based on various factors.  This scoring method is good for any buyer, including new home buyers, rental investors, renters, property flippers, subdivision planners, etc. 

This is something only my firm has; no other firm has it! We believe you should have all of the inspections that are normally done when you buy a home.  They include, 1) appraisal, 2) termite inspection, 3) whole house inspection, 4) roof inspection, and those are the main ones. Now buyers can go a step further at NO COST!  Through MFN Realty, we have one more inspection that measures factors in a home that are not ever measured.  

We have 5 categories a home must reach a minimum score on. Then the total of those 5 scores must reach a certain "total" score.  You can now see your score of your next home, but not before you make the offer, but rather, before you are obligated to do the final contingency removal and are bound by contract. This scoring will help you know: 

1) if the home can resell reasonably well; 
2) if you can expect a market value when you resell; 
3) if the home has some sort of functional obsolescence; 
4) if you are buying a white elephant that has no obvious outward appearance of issue to a layman's eyes; 
5) If the neighborhood has a hidden item that would not be notice-able to a layman; 
6) If the home has too many items that people consider negative that add up to a failing score.
7) If the price or condition being accepted is good enough to create a passing score.  This can help a buyer who is caught in a bid war and concerned about the price being paid.

This score system is not a deal killer, as the score test is fairly easy to pass, but it IS a buyer protector. Why?  The average real estate transaction has no real uniform way for agents to warn you of issues not covered by the current due diligence inspections, not only because it does not exist except for my service, but also because no matter how savvy and honest your agent is, you never know if they will tell you everything that they can see from their vast professional experience, knowing their huge commission is on the line if they do. This is a subtle and hidden conflict that goes back decades in our industry.  A simple napkin test could alleviate this issue.  We have it. 

We are not saying the average agent is dishonest, because they are not. What we are saying is that it is sad that agents are, at times, put into the position of choosing between the client's welfare and survival or monetary rewards. 

I must make it clear that this inspection and scoring system does not exist anywhere but in my firm at this time.  I created it to better serve my clients and protect people. The many years of real estate background and experience that I have are poured into this unique scoring method.  Soon, other agents will be using this method too, but we are beta testing it now.  You can be in it for no charge. I believe God gave me this idea, and the way I mostly know that is because it has "serve" and "care" and "truthfulness" written all over it. 

The process takes about 1-2 hours, and it is done during the inspection period after escrow has begun. It is thorough but very fair.  It allows a buyer to feel confident that there are very experienced eyes on their next home that know what to look for. And yet, through an easy software application, any agent will be able to run the scores. 

Call me to get more information if you are planning to buy a home.

Greg Nichols
Broker Owner
916-742-1777 Office
916-580-7235 Cell Phone

A Licensed California Real Estate Broker #00632894 

copyright 2014 by Greg Nichols

No comments:

Post a Comment