Which Comes First – The Buying or the Selling?

In the ongoing Saga of myself as a Realtor buying and selling my own home, my husband and I too were presented with the classic chicken and egg debate:  “Do we buy the house to move to first and then sell our home?” OR “Do we sell the house we live in not knowing where we will go after it sells?”

When I have on my professional Realtor hat, I start the dialogue with people who present the dilemma by asking:  “Can you can qualify and afford to own two homes at the same time?”  Because if you can’t do that financially, then the question has already been answered for you.  You will have to sell and then figure out where you will go, and that may entail living in temporary housing or renting while you determine the next move.

If you can qualify and afford to own two homes at the same time, then the next question is:  “Do you want to?”  Many people cannot tolerate the risk associated with that scenario.   So once again, the question has already been answered, put your home on the market and get it under contract, then go out and purchase a home requesting coinciding settlements in the offer.

Coinciding settlements is where the money that is coming from the sale of the current residence will be applied to the purchase of the next residence.  In Virginia, where I practice real estate, it is a Wet Settlement Act state.  This law requires that the deed be recorded at the court house before funds can be disbursed to pay off liens and proceeds sent to the owner (if there are any).  Bottom line in Virginia, the owner does not leave after settlement of real property with the funds and thus cannot utilize them to purchase the next home until they become available, thus the necessity of the coinciding settlements clause.

The question on the other side of the coin is:  “Can you tolerate not knowing where you will go if you do sell first?”  This is the scenario that my husband and I found ourselves in.  As many empty nesters do, my husband and I more frequently would look at each other and say, “What will we need with all this space once our youngest leaves for college?”  The yard that was so much part of our family life started to feel like the weekend noose – requiring more work than anyone has time and/or desire to attend to.

Thus we had very specific requirements of where we wanted to move next and satisfying those were the priority, which included:  an end unit town home, an elevator or the ability to economically retrofit one (for my elderly parents), walking distance to downtown McLean, built within the last 10 years and at a price we can afford!

When I found a property that met all of those criteria, it happened to be the Friday before Thanksgiving of last year, which whirled us unexpectedly into the entire selling and buying process.  The next few contributions to my blog will follow this journey as I blend both  professional and personal insights.  If you find yourself in the need of some guidance from a professional Realtor, please contact Karen Briscoe with the Huckaby Briscoe Group at 703-734-0192 or at Homes@HBGroup.us as we would be delighted to be of assistance.

Briscoe Saga Part I

Recently I wrote in my blog titled “Life Cycle of Shelter” about how most people go through stages in the course of a lifetime in the type and size of shelter they seek out.  Or, perhaps their type and size of shelter seeks them out!

Currently, my husband Andy and I are on the downhill side of the bell curve of the shelter life cycle, which, as I had mentioned, typically corresponds to when the nest begins emptying out.  Our oldest, Drew, is graduating from Southern Methodist University in May and our youngest, Callie, is graduating from McLean High School in June of 2010.  Of course we need a place for them to stay when they come home to visit, but no longer do we need to consider their needs first in selecting a home.

As many empty nesters do, my husband and I more frequently would look at each other and say, “What will we need with all this space once Callie leaves for college?”  The yard that was so much part of our family life started to feel like the weekend noose – requiring more work than anyone has time and/or desire to attend to.

Being a Realtor, I obviously see houses all the time.  The way I view houses is from an objective, professional perspective.  Thus my response to clients and customers wanting my opinion on their home or a home they are considering purchasing is usually with these words:  the market thinks this, or this is how I believe the market will respond.  I remember vividly one client who said,  “Karen, you always respond with the market’s viewpoint, but do you have an opinion of your own?”

Well as it turns out, I do have an opinion when it comes to buying a home for my family and for selling the home we had lived in for 10+ years.  The next few contributions to my blog will be how we went through this process, blending both professional and personal insights.  If you find yourself in the need of some guidance from a professional Realtor, please contact Karen Briscoe with the Huckaby Briscoe Group at 703-734-0192 or at Homes@HBGroup.us as we would be delighted to be of assistance.

A Tale of Two Markets

The famous opening line of A Tale of Two Cities by Charles Dickens is:  It was the best of times, it was the worst of times. The residential real estate market for McLean and Great Falls in 2009 has a similar theme, depending on the price range.  I shall now tell “A Tale of Two Markets” and my opening line is:  It is the best of times in McLean and Great Falls for homes priced under $1.25 million and it is the worst of times for those priced above.

In McLean and Great Falls the overall number of transactions went up in 2009 by 14.1% over 2008.  However, the significance of “A Tale of Two Markets” is evident when broken down by price range. The number of sales under $1.25 million is up by 25.9% which is the “best of times”, and the number of sales over $1.25 million is down by 18% which is the “worst of times”.

In my view, the reason the upper bracket market (anything over $1.25 million) has suffered so much in 2009 is twofold.  First is the issue of mortgage funding.  It is perhaps obvious and may go without saying, but everyone is not independently wealthy and can pay cash for a home in McLean or Great Falls.  Most home purchasers have to obtain financing from a lender.  In this market area, the upper limit for Conforming loans from Freddie Mac and Fannie Mae for 2009 (and continuing for 2010) is $729,750.  If you add the typical buyers’ down payment of 20% to the maximum conforming loan amount of $729,750 you get about $900,000 as the purchasing power for the majority of buyers in the market.  To purchase anything over $900,000 means that the buyer would have to come up with a larger down payment and/or pay higher jumbo rates.  Other mortgage options are only now coming out allowing for financing up to $1 million, with 20% down, yielding maximum purchasing power of typically $1.25 million in 2009.  Even today, the best mortgage option is 15% down payment up to a purchase price of $1.47 million.  Any purchase price above that usually requires a larger cash down payment.  Further, once the loan is greater than $1 million, the interest on the portion of the loan over $1 million is not tax deductible (always check with your tax advisor for specifics).

The second issue is supply.   There are fundamentally fewer buyers for the upper bracket homes, therefore that supply hasn’t been absorbed and continues to not be absorbed by the market.  Thus, inventory continues to build.  Basic economics underscores that when there is more supply than demand, prices go down.

From year end data as illustrated by the chart below, homes that would have sold for over $3 million in 2008, probably sold between $2 to $3 million in order to find a buyer.  The homes that sold between $2 and $3 million in 2008 moved to the lower end of that range or sold below $2 million in order to be able to sell.  And down it went.

What is my prediction for 2010?  I believe that it will be more of the same.  While I feel that we are at the bottom of the trough in the under $1.25 Million market in McLean and Great Falls, I anticipate that we will not recover the prices of the peak of the market until at least 2012 or 2013, if even then.

One of the themes of A Tale of Two Cities is the plight of the peasantry under the aristocracy which led up to the revolution.  “A Tale of Two Markets” has a similar theme in my view.  Housing prices escalated in 2004-2006 to levels that even the average affluent person couldn’t afford.   The fundamental reality is that not everyone is independently wealthy.  As long as the majority of the buyers in the market are dependent on obtaining financing at the Conforming loan level, the upper bracket real estate market will be obtainable to only a very few and is dependent on what financing the banks can offer.  When there is a limited pool of qualified buyers in one portion of the market, that market segment is forced to shrink in order to survive.  It shrinks by lowering the price to what the market will bear.     

McLean & Great Falls Market Analysis of Homes Sales: A Tale of Two Markets
	(Based on Final Closed Price)
	>$3 Mil.	$2-3 Mil.	$1.25-2 Mil		$750k-$1.25 Mil	<$750k
2008
22101	16	20	60		111	144
22102	10	18	25		39	169
22066	7	8	47		72	41
	Total: 33	Total: 46	Total: 132		Total: 222	Total: 354
	Combined Total: 211				Combined Total: 576
			All Sales 2008: 787
2009
22101	3	29	52		142	184
22102	7	7	22		51	204
22066	3	12	38		80	64
	Total: 13	Total: 48	Total: 112		Total: 273	Total: 452
	Combined Total: 173				Combined Total: 725
			All Sales 2009: 898

The Life Cycle of Shelter

As a Realtor I have witnessed first hand a form of life cycle that people fall into in terms of choice of shelter.  The young person after completing their education and moving from the parental home typically seeks out apartment/condominium or town home living.  This selection of housing is usually in a more urban environment near shopping, restaurants, nightlife and transportation.  Access to employment centers is greater in an urban environment, so commute time is usually minimized.  Further many of these communities offer amenities that people in this stage of life desire, such as:  workout room, swimming pool and club room areas.  In exchange for the convenience, the trade off is often dwelling square footage and land.  Over the years I have sold a number of properties to people in this stage of life and they all have these similar qualities in common.

As one matures in their professional career and marry, many start to think about getting pets and having children.  It is interesting how many young people and couples get a dog as preparation for family life.  Some urban areas have designated dog parks in response to this phenomenon, which is interesting because most parks in cities were originally designed for family recreation.  What this stage turns to in housing choice is more interior living space and a yard!  If having children is part of the long range plan, then school consideration usually moves to the top of most people’s list.

Location is the most basic determination of value in real estate because as we all know it is the most fundamental quality of real estate since land uniquely cannot be moved.  Next in line in determination of value in my view is school quality as perceived by the public.  Thus the public school where the home is should be researched, even if one does not or will not have children in the public school system; it will more than likely have a significant effect on value for many years.

I recall working with a young couple who after marrying I assisted in purchasing a condo in the Pentagon City area of Arlington, Virginia.  They were happy there for a few years until they were expecting their first child and needed more space, so I helped them sell the condo and purchase a townhouse in the Ballston area of Arlington.  In my view the townhouse did not really provide any more space and there was a deck but not any yard.  Because of this I urged them to look instead at buying a single-family detached home with a small yard.  They resisted my counsel, not ready yet to give up the life style they loved of living in an urban area, walking to shopping and restaurants and metro.

Lo and behold, it was but 2 years later when that same young couple called me and said that they were totally out of space, what with the stroller, the high chair, all the toys and other child paraphernalia.  They also explained that their son needed a yard to kick a ball in and space to learn to ride a tricycle.  They even sheepishly admitted that they should have listened to me because to sell their townhouse after only living in it 2 years in a time of no market appreciation meant that they didn’t break even on the costs of home ownership.  So goes the next stage of life, which reflects the expansion of the family unit.

Typically at this stage, most people are moving into their peak earning years, thus they have the income to qualify for what will probably be the largest home purchase they will make.  If not at this point, it will probably occur sometime during the next 7-10 years as one enters middle age.  This is when many people move up and out to the suburbs, in order to gain the most living space and land for the money.  Often times this is when people are in the sandwich stage, caring for children and aging parents – this may require the conversion of a basement or other space in the home for a separate apartment for elderly relatives.

We are now at the top of the bell curve in terms of size and expense for the primary residence.  What happens on the downhill side of the bell curve, in my experience typically is the reverse of the stages it took to get to the top.  Next in line is the gradual occurrence of the nest emptying out.  As children go off to college or their own lives, then oftentimes a couple will look at each other and think “what do we need with all this space?”  The yard that was so much part of the family life what with the swing set and a place to kick a soccer ball around, now has become the weekend noose – requiring more work than anyone has time and/or desire to attend to.  Sometimes this stage is accelerated by the fact that one of the couple has deceased or there is a divorce, but most arrive at the juncture at some point.  Those that don’t and chose to “live in place” leave to their heirs the task of cleaning out a lifetime of possessions and memories.

Where do these empty nesters tend to go to downsize?  Into townhouse or condominium living, where there is less exterior maintenance demands, more turn-key so that they can travel and spend time with the grandchildren that are coming along.  Some move in with family members who can tend to their personal needs, some go directly from the family home into a retirement community or an assisted living facility.  It is interesting to note that community living in the later stages of life mirror those in the early stages.  Think of how dorm life compares to retirement center – social opportunities abound in both and 3 meals a day are served.

We have now come full circle in the shelter life cycle.  Do you see where you are?  If you are contemplating the next stage in the shelter life cycle, please contact the Huckaby Briscoe Group as we would be delighted to be of assistance.

The Orchestration of a Real Estate Transaction

Earlier this month my husband and I were staying at The Breakers, the famed hotel of West Palm Beach.  One of the managers likened the coordination of the services at a hotel to that of an orchestra director.  The conductor is key to the coming together of many unique instruments playing sounds at just the right time and place in order for beautiful music to occur.  In a hotel with the rich heritage of The Breakers, it means team members making certain everything is in place at the right time.  And in a real estate transaction, it means the coordination of a myriad of details in the process of selling and buying a home, which also requires a master conductor.

That master conductor is often the Realtor.  In the marketing and selling of a home, the following are just a few of the details that the Realtor orchestrates:  photography of the property, preparing a marketing brochure, consulting with the client on improvements and/or staging, obtaining a plat from the county or homeowner, entering the property into MRIS and distributing to numerous internet websites, configuring a virtual tour, hosting a Broker’s Open with refreshments for other agents to view the home, installing a sign and lock box (if appropriate) or showing the home by appointment, having Sunday open houses if desired by the seller, advertising in newspaper and other media outlets, sending out “Just Listed” postcards to potential purchasers.  Until the property receives an offer, many of these aspects of the marketing chorus are repeated, in addition to contacting all the agents who have shown and/or previewed the home to obtain feedback and keeping the seller apprised of market conditions.

Once an offer is received, then the negotiations begin, a new verse in the orchestration analogy. Contract negotiations require an entirely other level of expertise.  A master Realtor contacts all other parties who have seen and expressed an interest in the property to see if additional offers can be generated, and or the current offer be bettered.  The Realtor works together with the agent on the other side to provide the best possible outcome for the client.

After the contract has been ratified, which is when all parties have agreed to all the terms in writing and the offer has been delivered, the next verse begins.  These are but some of the many steps that can occur:  home and radon inspections performed and agreement reached between parties; home or condo association documents obtained, delivered and acknowledged; meet the appraiser at the property to provide comparables and improvements; application made for property insurance; application and completion of all underwriting requirements for lender; wood-destroying pest (commonly known as termite) inspection completed; delivery of copies of the contract to and complete necessary paperwork for settlement company; determine if a re-issue rate is available on title policy and obtain documentation if necessary; be certain the survey and title have been ordered and all is acceptable to parties; verify that the earnest money has been deposited and the funds have cleared; coordinate septic and well inspections if applicable and repairs/replacement as necessary; coordinate the performance of any work required under the contract and agreed to by parties and provide receipts to parties; complete home warranty paperwork if applicable;  obtain a HUD-1 from the settlement company for review by all parties; coordinate the walk through inspection; and attend settlement with the client.

As you can imagine, harmony can flow from all of these efforts, or there can be great discord.  “Experience You Can Trust” has been the motto for the Huckaby Briscoe Group for many years.  In dealing with the purchase or sale of a home, which is frequently one’s largest financial asset, shouldn’t you be working with a Realtor who is a master conductor, who has the experience you can trust?   Please contact us if we can ever be of assistance in buying or selling a home.  It would be our pleasure to provide you with an experience that will be like pleasant music to your ears!

Why Do Buyers Have Good Manners?

Often I hear from sellers: “just tell the buyers to make an offer.”  And that seems so simple, so why don’t they?  I believe it is because buyers have good manners.  Buyers don’t want to offend or hurt the feelings of a seller by making an offer that could be considered “low ball” or “bottom feeding”.  So instead, in my experience the buyers wait until the price is within 10% of what the buyer has determined to be the market price.  In a rising market, sellers can overcome the possibility of overpricing because the market is moving towards them.  When demand is great, buyers have less choice, basic supply and demand fundamentals say that it is a time of rising prices.  When supply is great and buyers have lots of choice, then there is price pressure down.  The market is smarter than all of us, because it is the collective wisdom of all of these independent people buying and selling.   When people say “this time is different,” that is when one should proceed with caution as it is more than likely from a subjective frame of reference and oftentimes a means of justifying one’s own point of view.

Notice that I haven’t even addressed what is being sold and what the buyers are purchasing.  Let’s apply the “good manners” phenomenon to my field, upper bracket homes and real estate in Northern Virginia.  When I hear “my home is different” or “my situation is different”, it is my opportunity and duty to explain that the market is not subjective.  This is the basis for the reasoning that attorneys shouldn’t represent themselves and medical professionals shouldn’t practice on family members.  It is difficult to remain objective when one is too close to the situation.

I heard internationally acclaimed personal finance expert Susie Orman speak and she shared this wisdom:  Calculating the price you “could have had” is a dream.  That’s why selling in a down market is so hard. The biggest mistake people make is getting greedy.  It is better to have 50% of something than 100% of nothing.  That reminds me of an old southern saying my partner, Sue Huckaby, used to share:  “pigs get fat, but hogs get slaughtered.”

How do sellers know whether they are priced at market?  I believe that if a purchaser hasn’t made an offer within thirty days, and for sure by sixty days, the market is speaking to them and in effect saying the price is greater than 10% of what the market perceives the value to be.  At that time a seller should adjust the price by preferably 10%, but at least by 5%.  If after another thirty to sixty days the buyers still have too good of manners and no one has made an offer, then the seller should follow this procedure until the market price is found.

New Home Trends: Green & Smaller

Recently the statistic came out that for the first time in 2008 the average new home being built in the United States is smaller by 200 square feet than two years previous.   This trend shows a decline in desire for McMansions and square feet at any cost.  Homebuyers are now considering whether they really need that extra 1,000 square feet.  Further, smaller homes by virtue of size alone are more energy-efficient and are less expensive to maintain.  There is no way of truly determining which trend came first, building green or smaller, but they work in tandem in my view as both offer similar benefits of energy-efficiency and decreased maintenance costs.

This week I had the opportunity to attend the McLean Chamber of Commerce private tour of the Charity Works Green House in Salona Village.  The Green House was designed by Cunningham/Quill Architects PLLC who illustrated beautifully that great design can come in small packages.  It was designed to exceed the highest Leadership in Energy and Environmental Design (LEED) standards for houses.  This carbon-neutral house was built in partnership by GreenSpur Inc. and West Group.  It is expected to use 80 percent less energy per square foot than a comparable new house.  The craftsman-style home boasts only 4,000 square feet of living space on almost ½ acre of land, which is small by new homes in McLean standards.  Of greatest impact to me was the fact that the room sizes were intimate.  This signifies a turning point in design, where bigger is no longer the default choice of architects and builders.

I was curious to know if this trend in smaller home design has come to McLean, so I did a market analysis of new detached homes built and sold the year they were constructed for both 2008 and 2009.  The square footage numbers used came from the Fairfax County tax record for the property.  In 2008, the average above-grade square footage for new homes was 5,268.  In 2009, the average above-grade square footage for new homes was 4,861. In just one year that is a reduction in home square footage by 7.7 percent.  It also signifies that the Charity Works Green House design is blazing a trail in more ways than one.  In my view, both green and smaller are trends that architects and home builders should pay close attention to.

Huckaby Briscoe Group Helps Struggling Homeowners

In 2008 Fairfax County was ranked second in the nation in household income of $107,448, second only to Loudoun County at $111,925.  It may surprise you to know that even with the first and second household income levels in the nation, there are a number of homeowners in jeopardy of losing their homes in the Northern Virginia area.  As a Realtor serving primarily the upper bracket market in Fairfax County, I have helped a number of homeowners in this situation.

It is projected that 2.5 million JUMBO option ARM loans will reset by April 2010 in the United States.  Thus we anticipate a Tsunami of homeowners in the upper bracket markets that will owe more for their home than it is worth resulting in an unprecedented number of short sales.   This phenomenon could put additional downward pressure on home prices until the delinquent inventory is cleared.

Perhaps the homeowner purchased at the peak of the market and now that the market has corrected, the financing obtained in a robust market is now absorbing so much of the household income that it is causing financial hardship.  Perhaps an unfortunate life event has occurred, such as divorce, death, loss of job, medical condition, which has now caused financial difficulties.  Whatever the case, please know that we at the Huckaby Briscoe Group are spreading the word that we are here to help.

Swift and sudden market shifts often causes unexpected distress in a household both emotionally and financially.  Homeowners struggling financially can face difficult choices which contain a myriad of dangerous consequences.

The Huckaby Briscoe Group works with reputable local professionals who are able to assist homeowners in understanding the choices available to them and the consequences associated with those choices.  If you are aware of someone struggling to make ends meet, we would love the opportunity to help them.  Please contact us or let us know if you are aware of anyone whom we can assist.  Be assured that all information shared will be kept in the strictest confidence.

What makes a home a luxury property?

Frequently I am asked by buyers and sellers:  What makes a home a luxury property?  According to the Institute for Luxury Home Marketing it is those properties in the upper 10% of their metro area that have either sold, are under contract or are active on the market for the previous 12 months.   Recently I earned the prestigious Certified Luxury Home Marketing Specialist (CLHMS) designation which is awarded by the Institute.  The purpose of the Institute for Luxury Home Marketing is twofold.  The Institute provides training, information and cutting edge tips for today’s market specifically geared for the upper bracket home market.  Further the Institute creates connectivity amongst others in the industry across the United States and abroad, further expanding the marketing capabilities of its members.

The Certified Luxury Home Marketing Specialist (CLHMS) designation assures affluent buyers and sellers that the agents who have earned it have the knowledge, expertise, competence, and confidence they require.  It is recognized as the mark of accomplishment in luxury markets around the world.  In order to achieve the designation, agents are required to have settled on a minimum number of transactions in the upper 10% of their metro market area within the past 12 months.  This assures that members are currently active in the luxury home marketplace.  In addition to earning the CLHMS designation, I also have obtained the Million Dollar Guild status, awarded to those agents that have settled on a certain number of transactions in the $1 million plus market.

The book:  Rich Buyer, Rich Seller by the Founder and CEO of CLHMS, Laurie Moore-Moore is insightful into this unique market niche.  Properties in the upper brackets are often highly customized and determining value is different when there aren’t comparables available.  Rather it is critical to know all of the relevant properties and what makes each unique.  As is true in all real estate, location is the first key.  For example to claim top premium value in Northern Virginia almost always requires Potomac River views or access.  Second is usually neighborhood and schools.  Next in priority are lot size, typography of the land (i.e. flat is always more desirable than huge grade variations) and proximity to desirable locations.  Final considerations are usually square footage, layout and features of the home.  It is critical that the agent be intimately knowledgeable about all relevant properties in order to best serve the client.

If you are in the market to purchase a luxury home, wouldn’t you want to be represented by an agent that has this extensive knowledge and experience in this market niche?  And if you are a seller, you are best served by that same agent.  This is just one other way that the Huckaby Briscoe Group is serving their clients in the Northern Virginia markets of McLean, Great Falls, Arlington, Vienna, Oakton, Alexandria and Falls Church, Virginia.  Visit our website at:  www.HuckabyBriscoe.com Contact us today for information on buying and selling a home in Northern Virginia at 703-734-0192, Homes@HBGroup.us.   The Huckaby Briscoe Group is affiliated with the Keller Williams-McLean office located at 6820 Elm Street, McLean, VA  22101.

The Buyer is Just not That into Your Home

The Buyer is Just not That into Your Home

There is a movie currently playing in the theatres entitled: “He’s Just Not That Into You” based on the book written by Greg Behrendt. It is a fabulous comedy that is so funny because there is so much that rings true. The basic premise is that if a guy doesn’t pursue a lady, it is because he isn’t really interested. There are all kinds of excuses and women tend to make rationalizations for the fact that at the end of the day he just didn’t care enough to do anything about trying to see her again.

It seems to me that many sellers could take some advice from the movie. In fact, purchasing a home has at times been compared to falling in love. A home is more than shelter, it is a place with many layers of meaning and so it is no wonder that often deep emotion goes into the selection. As a seller, you put your best foot forward, just like men and women in the dating phase of a relationship. A home seller emphasizes the best features of the property and goes out of their way to make sure it is most presentable at all times. And if buyers do not select your home to see, then it feels like rejection, because in many ways an owners home is his/her castle, an extension of self. There are unspoken rules in dating relationships, the guy does the calling and pursuing. If a guy doesn’t call and pursue, then bottom line, no decision is a decision. By deciding not to call and pursue by default he is saying that there isn’t even enough interest to come back a second time. And so it is with the home buying process, if a buyer doesn’t want to come back a second time, then in effect that home was not the home for them. There are many rules of thumb that Realtors have to know when a home has been “rejected” by the marketplace: 15 showings or 15 days on market, whichever comes first; 30 days and no buyer has come back a second time; 12 showings by qualified buyers with agents and no offer has been presented. All of these are indicators of the same bottom line: the buyer is just not that into your home.

So how does a woman get a man interested? By allowing him to pursue, by not appearing needy and desperate, and to move on when she realizes that he just isn’t that into her.

So how does a seller get a buyer interested? There are a few fundamental points of value in real estate: location, home condition, and price relative to the market. It is impossible to change the location of a property, that’s what makes it so unique. That leaves the only two things that a seller can change to increase interest by buyers: home condition and price relative to the market. Just as in the movie, as soon as the characters realized where they really stood in relation to the intended other, that is when the light bulb went on. And in the case of a home purchase, when a contracts is written by the buyer and presented to seller.