Team Reba Real Estate

Yes, at least half of the team was born in 1968 just like the Fair Housing Act.  Michael’s birthday is in April and mine is in August.  Can you believe it?  I certainly understand my friends that say, “I don’t feel old” because I don’t either.  Actually, I feel pretty darn good overall.  What does really blow my mind though is how short a time we’ve had fair housing in play - the same 40 years.  I like to think that I’m a very open person and I look at people individually, and not by the color of their skin, religion, background or otherwise.  Along those same lines, one of the reasons I love traveling outside the USA is because I love to learn about other cultures, foods, and social practices.  All of these experiences with people and places provide me with an appreciation for many things outside my own upbringing.

One thing I will credit my family with, as I was growing up, was the opportunity to be oblivious to racism, at least within my own immediate family ranks.  We had a diverse set of friends and family contacts so I really didn’t think about it much until I ran across it from other people - and when that happened I was usually flummoxed about how or why someone could be such a jerk to another person.  It’s not that racism wasn’t around me, but I just stayed away from people I knew who were bigoted and I spoke my mind when others tried to force their opinion on me.  Most of my early experiences were either at school and then later on when I entered the work force.  (Those who know me, know that I do not have a problem speaking my mind so I did tend to get into some heated conversations.)

For years, I worked in the tech industry.  First in electronic componentry sales and then moving into software licensing of database connectivity products.  In both industries there were shifts in the manufacturing sector and hiring patterns that you could see were making those organizations go through cultural shifts - literally and figuratively.  In fact, if you walk on a Microsoft campus today you will see one of the most diverse workforces around and it has completely changed the way that the Eastside is populated.

Getting into the real estate industry though has to be the biggest slap upside the head for me that race still dominates in some people’s minds.  My first couple of client transactions opened my eyes to this and started me on a quest to understand how race impacts real estate transactions.  It also got me focused on straight talk with clients about fair housing.

Example 1: An African-American client selling a house and buying a new one. During the sale of his former home we start having trouble with an escrow company that kept putting him off and not taking his paperwork as it’s being brought in, in person, to be handed off to complete the transaction. The administrative staff is continually ignoring him or saying he is lying about whether or not he’s provided documentation.  My client is seething mad because he’s never been treated this way and when he hears they’re saying he is lying he about loses it.  I don’t blame him, I would be ticked too. I take his complaints to management and apparently we aren’t the only people having this problem.  Staff involved gets fired. 

Example 2: American-Chinese client is buying a rental property that he may eventually want to move into some day. He’s doing a 1031 exchange from family owned property outside the WA area. He identifies a 1926 year built single family home to purchase and we tie the property up on day one of the listing ahead of several other offers.  The home has had one family ownership since it was built, passed down from parents to the now 80-something year old son who is now in a nursing home and his brother is selling the house for him to pay medical costs and care.

During the transaction we’re working out an inspection problem with the electrical - the seller (actually, the brother) isn’t budging.  I can’t figure out why because we’re offering half the cost of the repair and insurers won’t touch the house without the upgrade from fuses to electrical panel.  I’m getting a bad gut feeling.  After a very long conversation with the listing agent, I learn that the seller wanted to sell to a “nice white family with kids”.  “ARE YOU KIDDING ME?”, I think.  This guy has just given me details that would allow my client to sue him - and sue him big too.  Right or wrong, I did not share this info with my client immediately because my job was to negotiate the electrical issue at that point and to help my client purchase the property.  Also, not buying the house would have possibly put the buyer in financial jeopardy because of the timelines associated with 1031 exchanges. A lawsuit would have dragged this out and gone beyond his 180 day period.  So, I pressed the other agent - mentioning that this was a fair housing issue (he agrees) - and telling him he needed to work this out with his client NOW or risk a tougher fate.  Thankfully, he pulled through and we were able to successfully close the transaction without my client having to learn of the ugly truth of what had gone on.  I couldn’t bear the idea of sharing that comment with him and tainting how he might feel about his purchase because someone else’s racist view isn’t a material defect and in the end the client got what he negotiated for and what he wanted.  I will say though, that if the transaction had begun to fail, this would have been told to my client immediately so that he would know his options.

These kinds of situations come up more frequently than you’d think.  To begin trying to understand the mindset of these issues I started reading books like One Man’s Castle.  The story is sad but it is a stark reminder of what we as a nation need to recover from in our past.  Yes, it’s 40 years later but we’ve all still got a long way to go.

Let’s hope that as they years continue we’ll see less and less of these kinds of situations occur.

This article came out over the REALTOR network last week providing a look at a FORBES review of foreclosure market.  Before you think it’s because we have a lot of foreclosures, think again.  The reason we’re in a top 10 list is because we are noted as one of the better places to pick up a foreclosure where there might be a bargain in the making.  With housing prices having remained solid and our economic forecast still good, picking up a home in foreclosure could be a good deal - IF you know what you’re doing.

But let’s quickly outline what makes a good deal:

1.  Price - many foreclosures do not have equity built in to them so you have to choose wisely so you don’t pick a loser.  You must do your homework!

2.  Location - getting a house cheap isn’t a deal unless it’s in an area that people want to live.

3.   Pre-foreclosure can be better because you can use financing to purchase the home.  Buying a foreclosed home on the courthouse steps requires cash.

4.  Having an idea of what to expect the condition of the property will be and having the resources to fix problems and get the home ready to resell or turn into a rental.

Many people don’t understand the mindset of a person that is in foreclosure.  Of all the homes I’ve ever had to walk into foreclosure ones are the worst.  Usually they are filthy, there is a lot of deferred maintenance, and more. You don’t want to know about the times I’ve walked in a house where the stench is so bad that it makes you almost lose your cookies, so to speak.

5.  If you’re planning to turn the house into a rental, be sure the home you’re buying meets the definition of a cash flowing property.  Buying a $600k foreclosure with financing, only to turn it into a $2800 a month rental, is most likely going to be a bad deal.  Do the math BEFORE you buy.

6. Do your homework on other issues.  Many foreclosures can also come with other liens on the title that you don’t want to take on as the new owner.  If possible, you’ll want to learn how to do the due diligence you need to not get a big surprise at the end of a transaction.

 This information was sent to me via Cris Anderson, the Northwest Division Manager with Asset Preservation, Inc.  The company is a subsidiary of Stewart Title company, a leading national IRC 1031 “Qualified Intermediary” and is efficiently handling exchanges in every state in the nation.  I met Cris in 2003 when I took my first 1031 exchange class for continuing education credits for my real estate license. My second client in this industry was a person doing a 1031 exchange so I needed to learn about it fast and Cris happened to be the instructor, teaching the course via the local Seattle King County Association of Realtors (SKCAR).

Since then I’ve had several clients work with Cris’ organization and we’ve had very good results.  Now he’s doing me a favor by providing some interesting content regarding news in the world of 1031 exchanges.  Check out the one below regarding vacation home exchanges.  But before you begin reading, I must put in the obligatory disclaimer…

Asset Preservation, Inc. cannot give tax or legal advice.
The preceding legal development update contains only
a brief summary of these issues, and tax and legal
advisors should review the entire decision to ascertain
all of the issues involved before advising clients. Every
taxpayer should review their specific situation with a
CPA, accountant and/or attorney.

NEW TAX COURT DECISION ON VACATION HOME EXCHANGES
Taxpayers use Internal Revenue Code (IRC) §1031 tax deferred exchanges to defer paying capital gain taxes.  Frequently, a taxpayer may consider exchanging out of or into property held for investment in a vacation or resort area.  Many tax and legal advisors believe it is possible to perform an exchange on a vacation property that is held for investment purposes, provided the personal use is incidental (generally less than 14 days a year or less than 10% of the time rented) and the taxpayer can substantiate that the primary purpose was to hold the property for investment, not personal use.  A recent Tax Court   decision, Barry E. Moore v. Commissioner, T.C. Memo 2007-134, provides a significant case concerning whether a vacation home would be considered “held for investment.”  The court’s analysis also indicates certain tax planning strategies that taxpayers may wish to utilize when considering exchanging a vacation home. 

LAKEFRONT PROPERTY EXCHANGED FOR LAKEFRONT PROPERTY

In Moore v. Comm., the taxpayers exchanged a lakefront vacation property with a mobile home in Lincoln County, Georgia (the Clark Hill property) for a lakefront property with a larger five bedroom and 4.5 bath house on 1.2 acres in Forsyth County, Georgia (the Lake Lanier property).  The taxpayers in this case argued that both of these properties were held for investment, specifically for long-term appreciation purposes, and thus qualified for tax deferral under IRC §1031.  However, based upon the taxpayers’ significant personal use of the property, the tax court concluded that both the relinquished Clark Hill property and the replacement Lake Lanier property should be viewed as “held primarily for the taxpayers’ personal use and enjoyment.”  In reaching this conclusion, the court considered the following:  (i) the taxpayers never rented or attempted to rent the  property to others; (ii) the taxpayers deducted mortgage interest as a “home mortgage interest”   expense rather than investment interest expense; (iii) the taxpayers did not take (and probably did not   qualify for) depreciation or other tax benefits associated with an investment property under the  Internal Revenue Code, including deductions for  maintenance expenses.

 The court accepted the taxpayers’ argument that both the relinquished and replacement properties were held for appreciation but concluded that “…the mere hope or expectation that the property may be sold at a gain cannot establish investment intent if the  taxpayer uses the property as a residence.  The  proposition that holding a primary or secondary (e.g. vacation) residence motivated in part by an  expectation that the property will appreciate in value is insufficient to justify the classification of that property as property ‘held for investment’ under    Section 212(2) and, by analogy, Section 1031.  There is no convincing evidence that the properties were held for the production of income, and there is convincing evidence that petitioners and their families used the properties as vacation retreats.  The evidence overwhelmingly demonstrates that petitioners’ primary purpose in acquiring both the Clark Hill and Lake Lanier properties was to enjoy the use of those properties as vacation homes, i.e. as secondary personal residences.”

ADDITIONAL PERSPECTIVES IN VACATION HOME EXCHANGES

In the tax court case, Rivera v. Commissioner (2004), the tax court noted that, “…the term ‘income’ is not confined to recurring income but may also apply to gains from the disposition of property.”  In this case, the court found the owners held the property for investment purposes because they had purchased it with the expectation it would increase in value. The court referenced Section 1.183-2(b) of the Income Tax Regulations that outlines nine factors indicating whether or not a taxpayer is involved in a venture that is intented to produce a profit. Although 1031 exchanges are not discussed directly, this section does define income and expense deductions for a vacation property and the intent to hold property as an investment.

Another reference for tax guidance on vacation home exchanges comes from Private Letter Ruling (PLR) 8103117 which states, “…the house and lot you acquire in this trade will be held for the same purposes as the properties exchanged; to provide for personal enjoyment and to make a sound real estate investment.” Although a PLR only applies to the facts and circumstances in a specific situation, in this instance, some limited personal enjoyment of a property did not prevent a taxpayer from benefiting from a 1031 exchange.  In this PLR, however, it is important to note that the personal use was minimal on the relinquished property in the years before the owners sold this property and initiated a 1031 exchange.

PLANNING STRATEGIES FOR VACATION HOME EXCHANGES

Despite the court’s conclusion in the Moore case, a taxpayer should be able to substantiate investment intent with proper planning, even with some limited personal use and enjoyment of the property (see T.C. Memo. 1997-401; Frazier v. Comm., T.C. Memo., 1985-61). The reporting of rental income, attempts to rent the property or the outright conversion of the property from a vacation property to a rental property before a sale of such property could be helpful in establishing investment intent. It also appears that a taxpayer would have a stronger argument if the property has been treated as an investment property on the tax return over a period of time. Obviously, there are tradeoffs in taking this position on the tax return in that eligibility for depreciation and other tax benefits associated with income and/or investment property may restrict the amount of personal use the taxpayer may make of the property. Most importantly, taxpayers should consult with their tax or legal advisors regarding any vacation home exchange.

And there you have it.  Thanks, Cris!  We’ll be posting another of your helpful articles in the weeks to come.

Depending on what you’re reading about the housing market you’ll either hear that sales or up, or that they’re down.  How can it be both?  Well, that’s the fun of the various reporting and measurement of the housing market.  It’s not one big lump sum which is what most of the general public believes because a house, is a house, is a house - or isn’t it?

Reports have come out from the Census Bureau that show new home sales are down.  But, on the other hand you’ve got the National Association of Realtors that released a report stating existing homes sales are up.  What is a buyer or seller to do? 

If you’re a buyer who wants a brand new home and not a resale then you’ll want to read the report that talks about new home starts and see if there is news to give you an idea if a developers might be willing to provide incentives for a sales such as free upgrades or buyer discounts or points paid to lower interest rates on your loan.  In my quick gleaning of the report I narrowed in on the fact that there is over 9 months of inventory on the market which is up from the 6-7 month ranges from most of 2007.  This could be a great time to buy a new home especially if some freebies are thrown in.

If you’re a seller, then you’ll want to learn more about what is going on in the resale market.  For those of us on the West coast you’ll note that our numbers are actually opposite almost every other regional market and our resale numbers went down 1.1%.  Why might that be?  My guess would be that the impact comes from the drop in sales for large segments of California.  The NW gets lumped in with CA so we have a harder time really separating our data to show what’s going on here in the Puget Sound area. But, if you look at the USA as a whole then the numbers were up - all those other markets helped pull up the national average.

Another thing that showed in the resale report was that we went (nationally) from a 10+ month stock of inventory to in the 9 month range.  So while new home sales are slowing, the resale market is picking up some and these two market segments are about neck and neck right now with respect to inventory turning.

One last thing I want to point out is that these resources do a comparison of 2008 to 2007 in terms of volume.  Please keep in mind when you read reports that do this that 2007 was one of the highest volume sales years for homes on record…. ever.  Actually, I believe 2006 was the best ever and 2007 was almost as high so when everyone wants to make it sound doom and gloom they are forgetting that we have been hitting astronomical numbers.  I’d like to see someone put this in better perspective by showing a volume chart that outlines the past 10 years worth of sales.

Anyone got a link for me?

I’ve been eyeing the ads for a new NWSource.com Dining Out program akin to the 30 for $30 deal.  This time it is a 2 Courses for $25 program with some of Seattle’s long time and well known restaurants taking center stage.  The $25 covers either an appetizer and entree, or an entree and  dessert.  This is a pretty good deal and with me focusing more on keeping my waistline in shape, it’s better than gorging on 3 courses - even though I always have the best of intentions of taking a doggie bag home with me.

Be sure to read the fine print though because these programs only run Sunday to Thursday so the busy nights of the dining week aren’t included.  And, be kind to your server and remember that the cost doesn’t include liquor, tax or gratuity.  With entrees at a lot of these restaurants normally being close to $25 for the one dish, this is a deal.

Here’s a rundown on the restaurants listed in the ad I’m reading right now:

13 Coins (Downtown)

Anthony’s HomePort (Kirkland)

Elliott’s Oyster House (Downtown)

The Fisherman’s Restaurant & Bar (Downtown)

The Georgian (Downtown)

Il Bistro (Downtown - we lovingly call it “the beast”)

Ivar’s Acres of Clams (Downtown)

Lombardi’s (Ballard)

The Madison Park Cafe’ (Madison Park, duh)

Queen City Grill (Belltown)

Salty’s Alki Beach Seafood Grill (West Seattle)

Shuckers (Downtown)  Both this restaurant and the Georgian are part of the Fairmont Hotel.

Bon Appetit!

When buyers and sellers and their agents are using MLS forms for their contract there is a regular addendum used for inspections called the Form 35.  This addendum typically outlines the procedures and timelines for the buyer to perform inspections on a property that they’ve chosen to purchase.  If default timelines are used the initial inspection period can go up to 10 days but since there is a blank space in the document it is possible to alter this period to any timeline that the parties will agree to. 

There is also a segment of the addendum that makes an allowance, as long as proper notice is given from buyer to seller, for the inspection period to be extended if the initial inspection finds that an item (or more) needs further evaluation by the buyer.  The default period for this timeline is 5 days.  Then there are elements that dictate the timing of responses back and forth regarding the inspection requests, if any, between the two parties which is a default of 3 days apiece.

In the “go-go years” of the past half decade (2002-2007) where we experienced quick growth and appreciation on homes, and there were lots of buyers competing for properties, we saw buyers either waiving inspections (I don’t recommend this unless you’ve done a pre-inspection), doing pre-inspections, or making the inspection period very short (anywhere from 1 to 5 days).  We aren’t seeing much of this anymore although a few listings I’ve been watching did go directly to PENDING status so the buyer either did a pre-inspection and waived it, or they just decided to forego one - again, I personally don’t recommend it.  And, if a client ever did want to do so I would have them sign a big fat waiver stating that I was against it and they chose to do it anyway.  Unless you’re a professional contractor or other building professional (such as an architect or structural engineer), it’s not a wise idea.

I’ve been watching several different houses posted on the MLS closely to track what is occurring in the marketplace in various areas where our clients have interest in buying or selling.  One thing I’ve noticed is that timelines between when an offer is accepted and the STI (subject to inspection) status is changed to PENDING is taking longer and longer.   Here are some examples:

One $350k-ish single story Renton house went through 5 weeks of inspection period before going pending in mid-February and it’s still not closed.  A mighty long closing period if you ask me (STI on 1/14, pending 2/19, and not yet closed).

A $600k range Tudor style home in Maple Leaf/Ravenna that went STI on 3/16 and still hasn’t gone to pending.

A newer $800+k home in Sammamish that went STI on 3/15 and still hasn’t gone to pending.

On a quick search of area 705 (Ballard/Greenlake), for homes priced between $500-700k, there were 2 out of 12 homes in STI status that were well outside of a 10 day inspection period range.

For buyers, this is good news in general because it may mean that you’ve got a lot more time to figure out if the house you’ve got under contract is really in the condition you expect it to be before finalizing a purchase.  For sellers, this may not be bad for you, really, because it can mean you’ll have less likelihood of liability issues after the sale. How so?  Because a buyer will have had more time during an inspection period, or an actual inspection versus the waiving craze we had earlier, before purchasing.  So, if legal issues hit after the sale you can point to the fact that the buyer had ample opportunity to find problems prior to closing.  Granted, I’m not an attorney or legal expert, so I’m not making a blanket statement that you’re covered, especially if you’ve “hidden” a defect from a buyer.  But it’s a step in the right direction and with the newer forms from Fall 2007 putting more emphasis on who’s responsible for liability of issues found after the sale, it’s good to have an inspection from a seller’s point of view.

Either way, it’s a good sign of a market place that has balanced back out and is no longer a seller’s market.  I’m still not 100% of the mind that it’s a buyer’s market in the Seattle area as some people (mostly the buying public and the media) want to believe, but things certainly have balanced out so that common sense can rule more regularly than buying hysteria.  I like the renewed balance also because it really does let agents, like me, that like the negotiating part of our job to really get involved to work out issues between parties and to get more cerebral in how we approach a transaction and the needs/issues that come up throughout the process and which need to be addressed.

Happy negotiating!

A friend alerted me to this article on TechCrunch today where the folks at TC submitted for review “data” supplied by Redfin that touts their benefits over working with a traditional agent or REALTOR.  My response at first to my friend’s email was, “what exactly are you trying to say?”  Especially since his only line of text besides the link to the article was, “This can’t be good news.”

After my initial response wore off I was able to really think about the article and I replied to my friend, who then prodded me to put my comments onto the post.  I’ve done this now and it will be interesting to read what any replies to it might be.  Michael has some interesting commentary too regarding the math of it all and constitutes a good study.  I’ll ask him to post those here.

I came across this article that the local Washington Association of Realtors(R) sent out about an ugly lawsuit whereby an agent tried to tell her clients that an architectural review wasn’t necessary any longer in a neighborhood.  Ooooh, was she sorely mistaken!  In the end she paid for the removal of the property that her clients had started to have built (ouch!) and she also listed the lot/property for them to resell - and my guess is that she wasn’t going to make much of a commission, if any, in the sale.

You can read the full story here.

I will say that frequently clients want the agent to have all the answers and they’ll run all kinds of crazy questions past you.  In a lot of cases you have to educate your client as to what you can and cannot claim knowledge about and in what areas you have expertise.  Clearly, in this gal’s case she didn’t have the right expertise and she should NEVER have assumed that the HOA was completely dead just because it hadn’t been having regular meetings, etc.  I take the old CC&R info on older development projects as seriously as the new stuff and frequently I’ve pointed out items to clients that they just shrug off as unimportant.

If you are a buyer it is to your benefit to read everything that affects a property you may purchase.  Don’t get lazy just because the search to find the house you like is over - this is the time to really scrutinize everything so you know you’ve made a good decision.  Review title and ask questions.

If you’re the selling agent, I would suggest pulling preliminary title and have those underlying documents ready for review as soon as possible so that you can get past the issues that may come up as soon as you can.  This will help your seller to get more quickly into a stronger, binding contract position.

Today I had a conversation with an agent that made me flash back to when I started in real estate 5 years ago.  This guy has a listing with only 1 photo showing - and here it is… This initial photo is terrible and does the house no justice.  What motivating factor does this photo give to a viewer that would make them want to jump in their car to drive out to look at it further?  In my humble opinion - NONE. 

Update to this post, folks, and the reason for the strike outs above, since I put up this commentary the agent has now finally hired a professional photographer who has taken some very nice photos of the home.  What can I say?  It’s about time!  I wonder if he saw my post? 

What’s interesting to me is that his description of the home is as follows, “This beautiful brick tudor has been meticulously maintained for years. The original 1930s charm remains in the mahogany woodwork, coved ceilings and leaded-glass windows. Huge rec room in basement. New roof & gutter system.”  Now, without photos, how do you REALLY know that this is true and to what degree is the maintenance?

I’ve been looking at this house online off and on for a few weeks as a possible place of interest for a client but without the photos it’s hard to tell if it might be worth going over there.  Plus, when a seller is still living in the home people tend to be naturally reluctant to bother an owner for a showing if it’s possible that the house is way outside of what the client wants or needs.

A specific example of my concern about this house is this; I have clients that want a particular type of kitchen - a big one - because they cook and entertain a lot.  Well, I can’t tell what the kitchen in this place will look like and neither can they.  My clients have busy schedules, like most people I know today, and with a dual-income household it’s not like one person can be available to go look at houses during the weekday to go show their sweetie on the weekend or evening when he/she is free.  The listing info says that the house has been meticulously maintained but does that mean a 40 year old kitchen has been maintained or did they do any recent remodel work that would bring it up to today’s standards or possibly make it larger than it may have been built originally?

So, I called the agent to ask about details and he tells me, “I’m old fashioned and I don’t stand around at listing appointments taking 15 pictures to upload in the MLS!”  Wow, maybe your old fashioned way of doing business explains the recent $50,000 price drop on the house. 

Yes, I did just write down $50,000 and it’s not a typo.

This is one of the many reasons that TEAM REBA hires a professional photographer for our listings as part of our Concierge Services  (Scott, have I mentioned how much I love you lately?).  It has been shown over and over in internet surveys that people looking for a home start their search on the internet and they want as many photos as possible to view BEFORE going out to look at a home. 

So, how does this scenario remind me of 5 years ago?  Well, back then I had just come from the software industry into real estate and I used email prolifically for agent contact.  I had several older, male agents yell at me and tell me, “stop sending me email, I only check it once or twice a week!” 

Yes, you read that right too.

Today, savvy internet users expect agents to respond within 2 hours of an email request.  I had predicted 5 years ago that old fashioned agents that didn’t pick up at least a minimal amount of today’s technology would have their business suffer.  It has happened to some degree and a lot of agents started retiring - some perhaps just because they were older and ready for it.  Heck, the average age of an agent is somewhere in the early-to-mid-50’s so it’s not too surprising.  But, there are still plenty of people who like things done the old way - but I know very few who do.

Do you have a funny story or comment about a similar situation?  Feel free to share it here…

Insurance is a big part of the real estate puzzle when we’re working with clients - maybe more so than most people think.  Examples would be: availability of a reasonably priced insurance policy can impact whether or not financing is possible for a purchase (buyer issue but eventually also a seller’s);  it can have limitations on coverage if a house is vacant (affecting sellers); or there might be issues to consider if you put in a commercial range in your private kitchen.  Which brings me to the meat of this post….. (warning, be prepared for puns in this post!)

I’ve been looking with some clients at mid-price range homes in the Seattle area (ok, maybe $600-700k to some isn’t mid-priced) and one we came across has what seems to be a serious range/oven.  So serious the owner is claiming it is the same make and model as what Julia Child used to use in her own home kitchen.  The brand is Garland and they make some hot cookin’ stoves!

When my clients started looking seriously at a house with a Garland range/stove I started talking to Gerald Grinter, of our contributors here on the Team Reba blog, and here are some of the bits of important information I gleaned from him about commercial ranges in private, home use settings.  I’m consolidating his answers to keep space to a minimum and interest high regarding the info. 

In something like this, a main concern is cleaning.  Are there hoods/vents that need to be cleaned regularly?  Usually commercial equipment like this is cleaned on contract every 6 months depending on how much they are being used.  Was it installed professionally with pavers etc.?  These are needed to handle extreme heat.  We see this a lot in high end homes and expensive remodels.  Other considerations are whether or not the electrical load is appropriate or upgraded properly in the home to handle both the stove and the hood venting. In older homes this is a major consideration unlike a custom home that may have been built with this type of equipment in mind.  Weight of the stove is also important because older homes, such as the ubiquitous Craftsman found in Seattle, weren’t necessarily built to accommodate 1000 lbs of direct weight in the kitchen.

Insurance will also be impacted by the reason for having a commercial range/stove in a private residence.  Is the owner teaching cooking classes? In those instances, you’d likely need a different kind of insurance product to cover the commercial use of the stove in a home and to cover other liability issues.

As a listing agent I would want to be sure and ask the seller to make it clear if the stove is commercial or residential in nature and to provide what info you can on it.  While the agent in this case is telling us - via his client’s input - that this is a residential range you wouldn’t think so by looking at it.  And, when you turn on the venting hood it sounds like a jet engine turning on. 

This photo is not from the listing I’m talking about but it is a listing that is in Vermont with a massive Garland range similar to the one I’m discussing in this post.