7 Reasons to Work With a REALTOR®

7 Reasons to Work With a REALTOR®

REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference for home buyers:

1. Ethical treatment. Every REALTOR® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment in all transaction-related matters. The first obligation is to you, the client.

2. An expert guide. Buying a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.

3. Objective information and opinions. REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs® can use that data to help you determine if the property has what you need. By understanding both your needs and search area, they can also point out neighborhoods you don’t know much about but that might suit your needs better than you’d thought.

4. Expanded search power. Sometimes properties are available but not actively advertised. A REALTOR® can help you find opportunities not listed on home search sites and can help you avoid out-of-date listings that might be showing up as available online but are no longer on the market.

5. Negotiation knowledge. There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows enough time for you to complete inspections and investigations of the property before you are bound to complete the purchase.

6. Up-to-date experience. Most people buy only a few homes in their lifetime, usually with quite a few years in between each purchase. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.

7. Your rock during emotional moments. A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

Souce: RealtorMag
http://realtormag.realtor.org/sales-and-marketing/handouts-for-customers/for-buyers/7-reasons-work-realtor

How to Find Open Houses: A Guide for Home Buyers

Whether you’re intent on buying a home or just curious, hitting up open houses is probably the most fun part of house hunting. It can help you get the lay of the land, too.

Every weekend, hundreds of homes for sale open their doors so prospective buyers can pop in and check them out.

But how do you find them? And aside from ooohing and ahhing over backyard pools and walk-in closets, what should you do while there?

Keep these tips in mind to make the most of your open house visiting spree.

How to find open houses
Try any or all of these techniques to zero in on your dream home:

• Do an online search. We have to toot our own horn here! Not only can you peruse listings on realtor.com®, you can find info on upcoming open houses, too. Just click the “open house” box under the More Filters tab, where you can select the size and type of home you’d like to visit, and even whether it has a pool or other amenities you can’t do without.
• Find them on your phone. Yep, realtor.com has an app for that, too. Filter your search for open houses, and you’ll get an actual map of properties in your area with upcoming open houses. Tap on each one for times and other specifics.
• Use Instagram and other social media. Simply search #openhouse plus your city on Instagram, and you’ll find plenty of listings with gorgeous pictures. “I also like to keep an eye on Realtor® signs in my area and find their personal Instagram accounts,” says Alexander Ali, founder of The Society Group PR firm, who has put on some memorable open houses. “Most agents have personal accounts, and they’re great to use as a communication tool. Follow and direct message them! It’s faster than an email, and they check their social constantly.”
• Look for the signs. Even in today’s digital world, actual “open house” signs are still put up in front of properties for sale in hopes of attracting potential buyers. Try driving by or walking around a neighborhood you like, and see if there are signs or posters about upcoming open houses. Make a note of the date and time so you can plan your route. Also check your mail for open house mailers, and keep an eye out for fliers in local establishments.
• Visit local real estate offices. If you’re not ready to commit to working with one buyer’s agent, consider popping in to a few offices in your target area and asking what open houses they have coming up. It can be a great way to find listings and get a feel for which agent you might want to work with in the future.

How to make the most of open houses
It’s easy to wander aimlessly through home after home, but if you arrive at an open house with a game plan, you’ll get much more out of it. Here are some tips to help you make the most of your visits.

• Plan your path. Open houses tend to congregate on the weekend, so if you want to hit many of them or just cut down on running back and forth, it’s best to plot them out on a map, with the times they’re open, to visualize the best order to tackle them. If you’re walking from one to the other, be sure to wear comfortable shoes!
• Take photos. After seeing lots of houses, they might start to blur together. Therefore it’s a great idea to “chronicle” your open house journey with a series of photos from each house, plus notes, so when you’re reviewing them later you can remember what you liked and disliked about each property. At each house, start with a photo of the exterior and a flier, so you can identify it easily when you’re reviewing the pictures later.
• Think beyond the home you’re in. Chat with the Realtor® about the neighborhood, not just the house. “If the home isn’t something you like, they probably have others they could show you,” says Ali. “If you don’t like that house but you like the Realtor and aren’t working with anyone yet, tell them so and ask what else they have. Try not to leave an open house without at least one new phone number or listing idea, and soon you’ll find the right place for you.” But beware of engaging anyone as a dual agent.

Source: Realtor.com, Kimberly Dawn Neumann
http://www.realtor.com/advice/buy/how-to-find-open-houses/?iid=rdc_news_hp_carousel_theLatest

Sellers: Are You Making Your Agent Crazy?

These 5 common homeowner behaviors can make listing agents lose it.

The agent/seller relationship is like none other. No other professional spends the majority of their client time in the client’s actual home. We get very close to our sellers, not just physically but mentally and emotionally.

Because we see them in this somewhat vulnerable setting, and for an extended period, sometimes special bonds form. The line between the business and the personal sometimes blurs, and the seller feels comfortable enough to indulge in some behaviors that drive the agent crazy.

Here are five things sellers do that make agents go nuts — and diminish their chances for a successful sale at the best price and in the shortest amount of time.

Failing to keep the home clean
When your home is on the market, it needs to be ready for a showing on a moment’s notice. That means you need be “seller aware” 24/7.

If you’re serious about selling, keeping things tidy is par for the course. Make a plan to remove Fido’s saliva-stained tennis ball from the couch or Susie’s Barbie doll off the floor.

Before you list, move out the stuff you won’t need until you settle into your new home. Make a particular space in a closet or storage bin for the day-to-day stuff that could turn off potential buyers. Doing so will only ensure a positive experience for your prospective customer, the buyer.

Sticking around during an open house
There’s a reason real estate agents don’t want sellers hanging around when potential buyers arrive. While you may be perfectly friendly and agreeable, your presence can alienate your customers or make them feel uncomfortable without you even knowing it.

They want to dig their feet into their potential new home. That means they need to feel free to open closets, poke around in cabinets and make comments to their partners or kids.

Your presence prevents them from getting to know your home — and it can backfire. If you’re desperate to find out what’s going on at an open house or how buyers are responding, make a plan with your agent to show up anonymously during the open house.

Holding out for extra money at the last minute
A home sale negotiation can be a rocky road, even in healthy markets. If you sense the market is in your favor, you may second-guess the list price if you see activity quickly, particularly in the form of multiple offers.

It’s a great and powerful feeling. But imagine if, in an attempt to squeak out an additional $3,500 from a serious buyer, you pit them against a not-so-great buyer, and you lose both?

It happens, much to the dismay of the listing agents who advocate working with the best buyer and not necessarily the best “offer.”

In other words, you should always be thinking of the big picture — which isn’t always the same as the most significant offer.

Neglecting to clean up for the new buyer
Imagine you’re the buyer. Would you want to walk into your new home and find 12 cans of old paint in the garage? How about an old baby carriage in the attic?

Clean your home and deliver it in good condition to the new buyers. Not only will they appreciate the gesture, but they’re more likely to be on your side if you need them in the future for favors like forwarding mail or packages.

Insisting your home is unique
Your home is no doubt very special to you. You’ve built memories, tracked major life events and used it as more than just a place to lay your head at night. When it comes time to sell, it’s often hard to think of your home as a product on the open market.

Because of your emotional attachments to it, you may feel your place is unique, which you then equate to being more valuable.

If you find yourself resisting your agent’s pricing advice, take a step back and consider if you’re ready to sell. Resisting may be a sign you’re not yet willing to emotionally detach.

Keep in mind that an overpriced home, even in a strong market, will ultimately sell for less than a home priced well from the start.

Source: Zillow Pourchlight, Brendon Desimone
http://www.zillow.com/blog/annoying-things-sellers-do-152317/

Pounding the pavement in Cupertino meeting homeowners

Here's a selfie pic that I took with my fellow Realtor friend Vendy Chan while were door knocking in Cupertino this past weekend in 90 degree + weather. We had a great time meeting a number potential home seller clients. 

Realtors Reveal: 4 Unbelievable Open House Horror Stories

So you’re having an open house. It’s no big deal—people do this all the time, right? The only thing you have to worry about is steering clear until everyone is gone and then waiting for the offers to roll in. You’ve totally got this.

Or do you?

An open house can be a terrifically efficient way to get lots of potential buyers in the door at once. But sometimes things don’t go as planned. Sometimes open houses are the stuff of nightmares. Check out these true (and hilarious, because they didn’t happen to us) tales from open house hell. Be afraid. Be very afraid.

The dead deal

“I was showing an awesome rental in a beautiful building in the Upper West Side of Manhattan, going for a shockingly low price. I had to ask: Why so cheap? My partner pulled me aside and told me the previous resident had died of old age in the apartment, and his body had stayed there for two months. The apartment had been completely gutted, but there still lingered a faint odor. So, when I was showing the apartment, I had planned to gently and tactfully break this information, but that’s when a neighbor walks in and says she was curious about the apartment ‘because of what happened.’ At which point I had to explain on the spot.” – Emile L’Eplattenier, real estate agent and writer with Fit Small Business.

Lesson learned: Sure, you don’t want to just blurt out that someone died and rotted in the home on the open house flyer. But if your home has a particularly sordid past, the open house is a good opportunity to come clean. Serious buyers will find out regardless when it comes time for seller’s disclosure. And on the chance that nosy neighbors come around asking about it in front of potential buyers, you won’t look like you were trying to hide the home’s history.

———

Curse of the unwanted gift

“I was hosting a busy open house, and the home was vacant, which meant the utilities had been turned off, including the water.  About half-way through the open house I hear a mother shriek from the hall bathroom.  She had allowed her son to use the restroom, and this 5-year-old laid a load that a buffalo would have been proud of—in a nonworking toilet! The mother was mortified and they ran off as quickly as they could.  Thankfully, the neighbors had a bucket on the side of the house, which I filled with water and used to fill the tank on the toilet.  It flushed just fine and all was well.” – Morgan Franklin, Realtor with United Real Estate Lexington.

Lesson learned: Realtors have told us again and again that buyers will use the bathroom during a showing. If you’ve already moved out, it might be for the best to leave the water on for a while (buyers might want to test the plumbing or shower pressure, after all). Or at least pop up some cautionary signs on your toilets.

———

The house of horrors

“Going back a few years to our first year in real estate, we were really pressing for getting listings—hard. We get a call to list a property, agree to meet the owner, and when we roll up—well, I wish we could’ve captured our looks to each other on film. Horrendous. The look, the odor, the whole package. Literally the nastiest house I’ve seen even to this day. Long story short, we list, immediately hold an open house that weekend. And held our breaths.” – Robert Page, The Realty Cousins with Century 21 Alliance Realty Group in Hudson Valley, NY.

Lesson learned: Sometimes you can get lucky. “Who comes strolling in to make a cash offer? The next-door neighbor!” says Page. “We thought looking at this place was bad for a few days. This woman had been looking at this house from her windows for decades and couldn’t take another day of it. She’s since fixed the whole place up and it looks great.”

No, you may not be quite so lucky. If your house is a blighted mess, we hope you’ll take this opportunity to think about your life choices and then, for goodness sake, do some updating before you put it on the market.

———

The looky-loo stalker

“Last year I was hosting four open houses in one day which is typically the max. But so was everyone on my team! We had a total of 14 homes for sale ranging from $980,000 to $11,500,000. And the same buyer went to every single one! We have no idea how he did it, but clearly he wasn’t a (legitimate) buyer for any of the properties. Over the next several weeks he would continue to show up at our team’s open houses and oddly always wore the same outfit and had the same shopping bag from a very well-known retailer.” – Eleonora Srugo, Realtor® with the SLS team at Douglas Elliman

Lesson learned: Don’t expect everyone who walks through the door to make a serious offer. Some people may just be there out of curiosity or boredom, or because they’re a little, well, strange. Thankfully only your Realtor will have to deal with the crazies up close and personal. Just remember to take it on the chin if the number of offers on your home doesn’t quite align with the attendance at your open house.

Source: Realtor.com, Angela Colley
http://www.realtor.com/advice/sell/open-house-horror-stories/

Is it Time to Retire the Real Estate Agent?

I've seen a number of articles like this over the years; suggesting that Realtors are irrelevant. These opinion pieces do make some good points, but they often fail to take into account the overall value that we Realtors provide to the public such as leveraging our local neighborhood and market knowledge to the benefit of the buyers and sellers and knowledge of the overall home buying process.



There was a time in the not so distant past when the only way to book a flight or vacation was to call a travel agent. Now, thanks to the internet, you have access to all the same tools and resources that they do. Unless you are planning an elaborate trip, it’s faster and easier to just do it yourself. Many times it is even cheaper.

Selling your home is another example of how times have changed. In the past no one would even consider trying to sell their home without the expertise of a real estate agent. Most of us thought real estate agents were the only ones who possessed all the knowledge, data, and secrets of how to professionally sell a home. When records were kept locally on paper, that may have been the case.

Today, it’s a different story.

Your laptop and hand held device now contain all the same secrets. Could it be that it’s time to retreat from the traditional route and retire the real estate agent?

The Seller’s Objectives

Homeowners with their house on the market have three goals:

1. They want to sell their home as fast as possible.

2. They want to walk away with as much money as possible.

3. They want to close with the least amount of stress as possible.

It may seem obvious, but there is a delicate balance between each of these motivating factors. Personal priorities will determine the correct balance and what a successful sale looks like for each homeowner.
The good news is that today’s online resources can give you more control than ever before to achieve these objectives, with or without the help of a real estate agent.

Been There, Done That

If this isn’t your first home sale, you already know what lies ahead. That is of course, if you go the traditional route and use a real estate agent or even attempt a traditional “For Sale By Owner.” You’ve been through the steps it takes to “stage” your home to make it more appealing to the average buyer.

Let’s not forget the dreaded “Open Houses” with multitudes or no one walking through your home. Meanwhile you need to be absent for the day.

Then there’s picture taking, the spur of the moment showings (always at dinnertime), and all the other trappings, de-cluttering, and time spent maintaining a near perfect home during the selling phase. Now it’s all coming back. Pay attention first time sellers.

This might be called the “Hurry up and wait” phase.
After all the preparation frenzy, you are at the mercy of someone coming to view your home. With or without a real estate agent, this part is stressful and it can take months before you receive an offer.

Unlimited Online Resources at Your Fingertips

Isn’t this the price to pay for having an expert determine your home’s value and walk you through the process? Possibly, but the truth is you have access to all the data you need to find the optimum price, and you don’t have to rely on someone else to do this work. It’s at your fingertips.

Familiar websites like Trulia, Zillow, and Realtor.com all provide deep data on recent sales in your area. You can look at what homes are currently for sale and their list price. You can learn what has already sold in the last 3-6 months and at what price range. All this information offers insight about how to settle on your own list price.

Zillow provides valuable information plus the ability to list your home for free and without a real estate agent. It even allows you to put your home on their site without officially listing it, called “Make Me an Offer.” This is a huge advantage for those who want to eliminate the agent.

Trulia also allows sellers to list their home on their site for free. It supplies the pertinent data you want when deciding upon a reasonable list price.

Realtor.com gives you useful tools and data, but you can only list your home on their site if you hire a Realtor.

Using a website to list your home minus the real estate agent should put more money in your pocket at the end of the transaction. Real estate agent fees for listing a home are typically around 6%. This may be the path for some, if you don’t mind the unknown time period and the effort of staging and showing your home.

OfferPad is a site that affords you even more options and the ability to take full control. Using this platform, sellers can eliminate the time, home improvement costs and anxiety associated with the traditional listing process. This site advertises a service that provides a competitive offer to buy your home within 24 hours and the ability to close on the day of your choosing. Pick 5 days or 60 or anything in between.

OfferPad is an option if you want to sell your home quickly and efficiently. You pay the same 6% you normally would pay to a real estate agent, plus an additional 3% for the service. If you go this route, there are no Open Houses, no showings, no staging, no real estate agents, and no waiting.

What are Your Priorities?

So, is it time to retire the real estate agent?

Only you can make that call. It depends on your priorities: your time frame to sell, your non-negotiable bottom line, your tolerance for stress, and where you fall on the control-freak chart.

The good news is you have multiple options when it comes time to sell your home. Now it’s possible to take control of part, or all, of the sale process from start to finish.


Source: Huffington Post, Toby Nwazor
http://www.huffingtonpost.com/toby-nwazor/is-it-time-to-retire-the-_b_10610052.html

5 Ways Home Buyers Make Their Agent's Job Harder

Buying a home can be a long and challenging process. It’s a big, expensive and infrequent transaction that can cause lots of stress and anxiety.

Some buyers take years to complete a purchase, and they require a lot of hand-holding and make lots of requests. Others are more self-sufficient, and only bring in the agent from time to time.

Good real estate agents can accommodate any buyer at any time — as they should. We’re in the service business, and I always say the customer is always right.

But let’s face it: All buyers (and all agents) are not created equal, and since buyers don’t pay for the agent’s time, there can sometimes be a disconnect.

Here are five buyer behaviors that can make life tough for agents.

Planning a (secret) price swap

It’s one thing for a buyer to ask a seller for a credit if the final home inspection uncovers a problem. But after you have a deal, planning to negotiate the price down without telling your agent is a big no-no. It adds stress and ill will among all parties involved, during what could already be a difficult transaction.

It’s better to be upfront about your intentions. If the deal is not meant to be, it’s better to not go down the path at all.

Making unjustified lowball offers

The seller’s property is on the market for $400,000, and it’s worth close to that, based on recent comparable sales. And yet, a potential buyer offers $300,000 and won’t budge on the price.

It’s not because the home is grossly overpriced or there’s something seriously wrong with it, but simply because the buyer wants a bargain.

Unjustified lowball offers can be a waste of time for everyone involved. The seller isn’t going to swallow $100,000 for no reason, even if the property has been on the market a while.

In fact, a lowball offer will likely just help the listing agent get a small price reduction, thus opening the window of opportunity to another buyer.

It’s certainly okay to offer less than the asking price, but be realistic.

Requiring too much during the showing
It’s typical for a potential buyer to view a property during an open house, then ask for a private showing — even two or three times. That’s par for the course.

However, it’s frustrating when a buyer arrives to a showing with a designer, architect, contractor or just some friends, then spends an hour or two at the home checking out and measuring each room. This is counterproductive, particularly if you do it at one home after another and never make an offer.

Some buyers have even been known to bring their psychic, who, after making a big splash with tarot cards and numerology charts, declares that the property has “negative energy” and isn’t a good fit, mainly based on the numbers in the property address. Did the psychic really need to see the property in person to figure that out?

Buyers typically give themselves an opportunity to gauge their own reactions to a property before bringing in friends, family or hired consultants. To go over a home inch-by-inch on the first or second visit is often a waste of everyone’s time.

Demanding loads of attention early on

Some people are just beginning to think about buying a home. That’s fine; buyers have to start somewhere.

Unfortunately, sometimes buyers are a year or two away from being ready to pull the trigger, yet they make a lot of demands on the agent’s time.

Asking an agent to research city building permits on a house just because you’re curious — and even though the property doesn’t fit your requirements — is probably not a fair request.

Agents can’t be as effective with their active clients if they’re spending lots of time researching tax records or city permits for clients who are years away from being ready to purchase.

Changing your mind repeatedly

It’s fine to shift course based on what you learn during the home shopping process. This is a common part of the buyer evolution process.

Many buyers set out for X but end up with Y after learning the market and seeing where their dollar goes. By the time you’re ready to start making offers and moving in the direction of acquiring a home, you will be laser focused.

But if you find yourself moving around and you’re uncertain about the object of your search, it’s possible you just aren’t ready to buy. That’s fine. Take your time and learn the market.

The home-buying process is a journey, and a good local agent, brought in at the right time, can add so much value. Be mindful that agents work for free until a buyer or seller closes. Agents should be leveraged as a huge resource — when the right time comes.

Source: Zillow Porchlight, Brendon DeSimone
http://www.zillow.com/blog/5-annoying-things-buyers-do-152693/

5 Reasons You Shouldn’t Buy A For Sale by Owner (FSBO) Home

Realtors and agents across the country dread the FSBO (For Sale By Owner), and it’s not just because these sellers are playing dress-up and pretending to be real estate agents. There are all sorts of headaches and hiccups that can happen when not working with a professional, and here are the top five:

1. Trust
A FSBO is the owner of the home they want to sell, and they are not a licensed real estate agent. They aren’t bound by the Code of Ethics that Realtors are, and may do and say whatever they want to get their home sold. This is like buying sand from a guy on the beach, or taking nutrition advice from Little Debbie.

2. Documentation
It is required by law for disclosures to be made about the condition of the home, and if any repairs were made. A real estate agent will have access to the database of paperwork and have it properly documented, and know how to pull records to verify there aren’t outstanding liens, assessments, or back taxes owed. A FSBO may not even know this documentation is required, and possibly may try to cover things up.

3. Negotiation
Throughout a real estate transaction, there are so many back and forth negotiations going on you’d think it was a tennis match. This is because real estate agents are hired to best represent their clients, and there are so many complexities involved, including: the offer, closing date, financing terms, comps, appraisal report, inspection report, daily occupancy rate, and more—so it’s best to let the professionals handle it all. FSBOs, on the other hand, are representing themselves and don’t care what you need or want.

4. Finances
It’s easy to assume that a FSBO is broke; otherwise they would’ve hired a professional real estate agent. If the seller is broke, then what happens if the home doesn’t appraise? Or if the inspection report reveals the furnace and roof are on their last leg and need replacing? It’s also easy to assume that a FBSO is just cheap; otherwise they would’ve hired a professional. This may be worse, actually. Do you really want to buy a house from someone who might have also cut corners on their home instead of paying a professional to fix the plumbing, electrical, roof, etc.?

5. Sense of urgency
Anyone who wants to sell their home, and wants it to sell it quick, will hire a real estate agent to get the job done. Maybe the sellers are relocating, or need a larger home and want to move over the summer before the kids go back to school. Or, maybe they’re just really smart and trust a professional to do the job right! You won’t find as much urgency with a FSBO, because most times they have no clue where they’re moving or when. And according to a recent news report, you could even run into problems getting them to vacate after closing!

In summary, why do some people think they are qualified real estate agents and list their homes FSBO? Statistics show that an overwhelming 85% of them do list with a real estate agent eventually, so that speaks volumes. As for the 15% that don’t? Well, most will probably die trying… in the same house that’ll be eventually sold by a real estate agent.

The Bottom Line
There are some wonderful homes on the market that are listed by owner. It’s not that you should necessarily turn a blind eye to them; rather, don’t go into the situation alone. If you don’t have an agent, hire one to represent your best interests. And if you already have one, now is NOT the time to go rogue. Oftentimes the only thing that’s able to salvage a FSBO deal is the help of an experienced agent.

Source: The Lighter Side of Real Estate, Sarah D'Hondt 
http://lightersideofrealestate.com/real-estate-life/5-reasons-shouldnt-buy-sale-owner-fsbo-home

6 Reasons Real Estate Agents Aren’t Extinct

It’s 2016, and it seems our need for real live people is ever-diminishing. There’s self-checkout instead of cashiers, selfie sticks instead of photographers, self-driving cars, self-watering plants, self-administered colonoscopies … well, you get the idea. Given that technology has become so important to buying and selling homes, you’d also think real estate agents would be a dying breed—yet they aren’t showing any signs of slowing down, with approximately 2 million active real estate agents throughout the country.

So why did real estate agents make the technology transition fully intact as opposed to, say, travel agents? We asked some experts to weigh in.

Reason No. 1: Selling is complicated

For many people, “a real estate transaction is financially momentous and complex—the most complex transaction people do in their life,” explains David Reiss, a law professor and academic program director for the Center for Urban Business Entrepreneurship at Brooklyn Law School.

Comparatively, personal travel agents—the kind where you’d walk in their office and have them book you a hotel and a flight—have gone the way of the dodo, because now that’s all simple DIY stuff (to be fair, not all travel agents are out of a job—there’s still a healthy travel agency sector that thrives on corporate and luxury bookings).

“People like having an expert when dealing with large, complicated transactions,” says Jeff Tomasul, founder of Vespula Capital LLC, an investment management company based in Greenwich, CT. “Why do people still have financial advisers? They want someone who does it full-time to make sure they are not doing anything wrong.” Same with real estate agents.

And real estate transactions are often anything but straightforward. Some deals, like short sales, can be “much more intricate than a regular transaction,” Reiss says, with lenders who have requirements that “a regular person would have no idea about.”

Reason No. 2: Buying ain’t easy, either

Buying a home, even if you come in with all cash, is not a cookie-cutter task, and you can find yourself drowning in paperwork and stressed out juggling things like meeting buyers, and dealing with the seller’s agent, lender, and title companies. Agents ease the whole transaction, and it’s something that has kept their profession alive.

“They can hold your hand through the process,” Reiss explains. “They might say, ‘This lender takes a long time, so put in your contract immediately and sign this and that paper and get all this stuff ready before you’re walking over hot coals with the lender for money.”

Reason No. 3: It’s their top priority

Your own interests and priorities will very likely always be split—because of those pesky little things like, say, job and family—but a Realtor® can be laser-focused on getting the deal done. “A Realtor has a singular aim: to sell houses,” Reiss says.

Simply put, having a real estate agent can make your life easier. Tomasul found himself in a frustrating position when he tried to sell his apartment in Manhattan without an agent. “Showing it was so tough with my schedule, and it was hard having a full-time job and keeping up in a timely matter with potential buyers,” he recalls.

That means the less you make time for buyers, the longer your place will stay on the market—and that’s not good for your bottom line.

Reason No. 4: They know the market, and the players, better than you

“The agent knows the market intimately, even more than a pretty informed resident,” Reiss says. And all that knowledge saves time. “Tracking sales, knowing listings, spending a lot of shoe leather on houses already for sale—right off the bat, they know more than the ordinary Joe and Jane. They understand condo boards and title companies. As a player in the game, they know what the other players are looking for and how to deliver.”

Reason No. 5: They’re objective

Without an agent showing your house for you, you have no shield from criticisms that can—and will—be made about your house from prospective buyers. Your favorite room in the home might be described as “tacky,” “needing a renovation,” or much worse. Sometimes such comments are negotiating tactics. Sometimes they are heartfelt, off-the-cuff opinions. But either way, they can lead to problems.

“It impacts objectivity for a seller to hear negative things about their own place,” Reiss explains. “Realtors aren’t emotionally invested. They don’t take comments personally. It’s not ‘Oh, you don’t like my chandelier? Then get out of my house.’”

Reason No. 6: The cost is worth it

We’re not saying a 6% commission is chump change. It can be a good amount of money when you’re selling your house. But using an agent saves a ton of time. Even with a 6% commission, time is money—for many people, time saved negates the cost. Plus, given that home buying and selling is a negotiation where you can save big if you bargain right, skilled real estate agents can step in to fight on your behalf, saving you major money. In other words, typically the money you pay an agent will come right backatcha.

Feeling a bit more confident than ever that you should have a real estate agent watching your back? Then Find a Realtor now and get moving.

Source: Realtor.com, Craig Donofrio
http://www.realtor.com/advice/buy/why-realtors-are-here-to-stay/?iid=rdc_news_hp_carousel_theLatest

Listing Your Home? How to Avoid Seller's Remorse

In many real estate markets around the country, inventory is low and sellers are in the driver’s seat again.

In some cases, homes are selling for more than asking price. After years of a sluggish buyers’ market, many real estate agents are trying to get would-be sellers to list their homes now.

It seems like a great time to sell. But how can you know for sure if it’s a great time for you to sell?

If you experience buyer’s remorse, you can usually get out of a contract through contingencies or other out clauses. If you start to feel seller’s remorse, you don’t have that luxury. So you must be certain you’re ready to sell before you sign the contract —or, better yet, before you list the property.

To avoid seller’s remorse, and to make the sales process go as smoothly as possible, keep these strategies in mind.

Develop a solid pricing strategy

Agents often encourage their sellers to list their homes competitively, so that the market receives it well. Sometimes sellers see that as the agent pushing for a quick sale. But often, it’s truly the agent looking out for the seller’s best interests.

Whatever the scenario, pricing is the most important discussion a seller can have with an agent. When there’s a disconnect on price, raise it as a red flag from the get-go. If you find yourself resisting your agent’s suggested price, talk through the options or get a second opinion.

You might try starting out with a higher number. This might be against your agent’s better judgment, but it can be worth a shot. If there’s no activity in the first few weeks, you can always reduce the price.

Alternatively, sellers who increase their asking price after the home has gone on the market are often seen as frenetic, lacking a strategy and having a clear disconnect with their agent.

Bottom line: If you haven’t had a serious pricing discussion with your agent or you aren’t sold on your list price, don’t go on the market.

Have a clear post-sale plan

The sellers of an Essex, CT home heard the market there was hot and that they could get the price they had tried but failed to get just six months earlier. They’d already done the appropriate clearing out, painting, and fix-it work, and even had the property inspected. So, for them, going on the market was easy.

However, they didn’t expect to receive three offers, all of them above the asking price, within hours of their first open house. The buyers they chose wanted to close in 30 days.

The problem: The sellers had nowhere to go. They didn’t have a plan. Like many sellers today, they heard the market was healthy again. And after dreaming for years of finally getting what their home is worth, they jumped in while “the getting is good” without thinking it all the way through.

Be ready to negotiate with buyers

Feeling strong and in the driver’s seat, the Essex homeowners decided to wait and see if they could get terms that would suit them better. The sellers’ listing agent negotiated a quick close with a 30-day-free rent-back and another 30 days rent, in which the sellers would pay the new buyer’s PITI (Principal, Interest, Taxes and Insurance). It was a win-win for all.

While this couple in Essex had the luxury of a competitive bidding situation, it may not always be the case. That’s why having a clear plan in place for all conceivable outcomes and a willingness to negotiate can help you get through the sale process successfully.

When in doubt, stay out

Home selling is happening quickly in many parts of the country. While this is great news for the housing market and most homeowners, sellers need to plan for the sale months in advance. Hooking up with a good local agent early on in the process and staying engaged is the best way to approach this new market.

If you have any doubts about your physical or financial situation, hold off on listing. Watch from the sidelines, and only jump in when you’re truly ready. The biggest mistake a seller can make is to go on the market and fail to sell — at a time when everything else is selling.

Source: Zillow Porchlight, Brendon Desimon
http://www.zillow.com/blog/avoiding-sellers-remorse-123175/

6 SUCKY Realities About Selling Your Home, And 8 Ways To Make It Happen More QUICKLY

Selling your house while you live in it sucks. There is no other way to describe it. And if you don’t live alone it sucks exponentially more with every family member, including pets. You may think I am exaggerating… but these words are the awful TRUTH.

The Sucky Truths

1. You need to keep your house pristine. Not only neat and clean and picked up… but PRISTINE. Sparkly. Shiny. With absolutely no evidence that humans live there. No dishes in the kitchen sink, no toothbrush on the side of the sink in the bathroom, not one water drop on your mirrors. You are competing with model homes, you think model homes have water spots on their mirrors? Never.
2. Not only do you need to keep your house pristine, but you need to keep your yard the same way. The lawn must be mowed and green, and you actually have to edge as well. No weeds, no leaves, no spiders in the corner of your patio. It needs to look like a story book… which is not an easy thing to do in this dust bowl we call home. You know those adorable bright red cushions you bought at Target last summer? They show every speck of dust, and you must clap them out every single day. You must keep the story book fantasy alive for your buyers!
3. You must leave when you have showings. Not only must you leave, but your animals must leave too. Every single man on the planet and several women will say they are allergic to cats, so your cat should not be seen. Don’t even get me started on the litter box, get it outside. And Fido, he’s got to go too. Lots of people are legitimately afraid of dogs. Terrified. Irrational fear. Even if they hear the barking of a dog before they enter, they won’t enter. Forget it. If they don’t enter, guess what, they aren’t buying your house.
4. So now you, your cat, dog, and three kids are in your car driving around in circles waiting for the agent to show up and show your house… and waiting, and waiting, and waiting. Susie forgot to use the potty, and she is hungry, the cat just peed in your car, and you are missing Dr. Phil… where is the agent??????? Finally, 32 minutes after he said he would be there he shows up, wearing shorts and a t shirt, and takes the buyers in… and 5 minutes later they leave??? What the heck was that? What happened? When your realtor calls for feedback she finds out they only want a single level home, no two stories. Are you kidding? It is listed as a two story, there are several pictures showing clearly it is a two story, you even have a picture of the stairs!!!! So you did all of that for nothing… again.
5. When you send your listing to friends and family everyone will tell you how nice your house is, and why again are you moving? They will make you second guess and question every decision you have ever made, and really, look at that beautiful pool…
6. You will get a ridiculous offer. It will ask for crazy things, like for you to pay all of their closing costs, or for you to leave your brand new Rainbow swing set in the backyard, or sometimes even your pet if they happened to catch a glimpse of the adorable thing before you got him in the car. What are they thinking? You are just selling your HOUSE, not your life!

After hearing about some of the challenges of having your home on the market you might be thinking why on earth would anyone ever do that???? Well, because you want to sell your home. Maybe you want, or need, to relocate. Maybe you want, or need, a bigger house, or a smaller house. Maybe you want to be closer to work, or closer to family…maybe you want a pool, or are done with taking care of a pool. Whatever it is there is a reason sellers put themselves through this.

So what is the solution? How can you make this process easier, as painless as possible, and as fast as possible… while still getting the most money for your house?

Before you go on the market:

1. Stage your home. Put away all of the clutter. Pack up half of your stuff and store it in the garage. Make sure closets aren’t stuffed, rooms don’t feel crowded, and your personal items and photos aren’t making it impossible for a buyer to imagine the home as theirs.
2. Make sure your pictures are phenomenal. Whether that is a professional photographer, or your agent, pictures are what 90% of buyers will use to decide if they want to see your home in person. Shine your best light on your house in your photos, get as many people through as possible. But do not overly edit your photos, that will turn people off, and make them feel cheated when they see the real thing.
3. Price your house reasonably. People will skip your house if it is over priced. Buyers don’t like to haggle with unreasonable sellers, so be reasonable, from the start. Don’t dig your feet in during negotiations. Go for the win/win. If you want way above what other homes around you are selling for, don’t list your home for sale. The chance of finding a buyer is slim, and if you do, chances are they will need a loan… and loans need appraisals. Those are tough enough even pricing at market value, don’t set yourself up for a disaster. And if you real estate agent is letting you choose the price, find another real estate agent. One that will support the list price with comparable sales and with market knowledge… someone that does real estate full time.

While you’re on the market:

1. First of all, do numbers 1-6 of selling sucks when you are on the market. Don’t take anything personally, and if you fail occasionally, don’t beat yourself up.
2. Make the house as available as possible. Real estate agents might not be able to give you 24 hours notice, sometimes buyers don’t give them the proper head’s up of what they want to see. Occasionally they will forget to make the appointment and will call from the driveway. If you can, let them in. They might not make it back.
3. Crank your air down if it is hot outside. Make sure it feels good, smells good, and is as pleasant as possible for the buyers while they are in your home.

After you’ve accepted an offer:

1. Expect to make repairs to your house. Lots of issues the buyer will bring to you will be warranted items, make sure you understand this before you accept an offer.
2. Pack up, move out, and leave a clean home for the new owners…by the closing day. Leave your extra keys, garage remotes, mailbox location and keys, and any good to know info for them. Move on to your next home knowing you just completed an awesome win/win sale!

Source: Lighter Side of Real Estate

http://lightersideofrealestate.com/real-estate-life/6-sucky-realities-selling-home-8-ways-make-happen-quickly

'Double agent?' A rift over how real estate is bought and sold reaches the California Supreme Court

Here in the Silicon Valley I can't count the number of times where I came across another agent's listing that ended up "double ending." Double ending a real estate deal is when an agent represents both the buyer and seller in a real estate transaction. I can think of a number of agents, whose name will remain nameless, who use this as their primary business model. I prefer to stay away from double ending my real estate deals because their is too much potential for conflict of interest and what-not.



When Martin Welc asks his real estate classes at Saddleback College if one agent should represent both the buyer and the seller in a negotiation over a house, the students widely disagree.

"We ask them: 'Dual agent or double agent?'" said Welc, co-chairman of the college's real estate program, in encouraging the students to play devil's advocate. "We look at all of the pros and cons. We say, 'Can this be done?'"

It is done, but the controversy over its fairness to buyers and sellers goes beyond a homework assignment. Real estate agents, lawyers and consumer advocates all have opinions about it. Now a rift involving what's known as "dual agency" has reached the California Supreme Court.

Those on both sides of the argument know the high court's decision in the case — pitting a Malibu homebuyer against brokerage Coldwell Banker — could shake up the industry.

"There is a great deal of concern about this ruling in the California real estate community," said Bob Hunt, a San Clemente agent and a director of the California Association of Realtors, of the appellate court's conclusion. "It runs counter to the way — rightly or wrongly — that agents and brokers have thought things were."

A FINE LINE

A dual agent must walk a fine line, careful not to favor the buyer or seller. There are details that cannot be shared — for example, the agent can't tell the buyer the seller is frantic to unload the house because of a divorce or job change. Nor can the agent share with the seller how much the buyer privately said she's willing to pay.

Lee Stimmel, a San Francisco attorney who opposes double-ending deals, said the rules create a conflict of interest for the lone agent, who must serve two masters as a "superhuman."

But as Hunt and many other agents see it, a dual agent, privy to what's motivating each side, is in a position to more swiftly and efficiently get a deal done.

"Hiring a real estate salesperson is not the same as buying a burger," the association says in court papers. "It is all about the relationship ... The real estate salesperson is the equivalent of a therapist, a bartender, a friend."

In California and many other states, the law mandates that a broker must have a fiduciary responsibility to clients. But laws in about two dozen states have allowed agents to act as "facilitators" or "transaction brokers" without fiduciary loyalties, according to a report on Inman, a real estate industry site, titled "Buyer and Seller Beware: Your agent may not represent your best interests."

THE CASE

At the core of the case before the state Supreme Court is a discrepancy about the size of a Malibu manse.

Hong Kong multimillionaire Hiroshi Horiike bought the Tuscan-style home overlooking the Pacific Ocean for $12.25 million in cash in 2007. A high-profile listing agent provided him with a brochure stating the house had 15,000 square feet of living space, but county records said the residence actually was under 9,500 square feet.

The difference in square footage was complicated by Malibu using a different metric than elsewhere, extending the measurements to garages and other spaces beyond the primary residence.

Both Horiike's agent and the listing agent worked for Coldwell Banker, so the brokerage was the dual agent of the buyer and seller, as confirmed in the disclosure forms Horiike signed.

A couple of years later, when seeking a permit to remodel a room, Horiike discovered the house wasn't as large as he thought. In 2010, he sued the listing agent, Chris Cortazzo, and Coldwell Banker, stating they violated their fiduciary duty to him. (He did not sue his own Coldwell Banker agent, however.)

The jury disagreed that the listing agent had a fiduciary duty to the buyer or that the broker was liable for a breach of fiduciary duty based on the agent's acts.

Horiike prevailed on appeal. The justices found that Cortazzo "did not add a handwritten note of advice to hire a qualified specialist to verify the square footage of the home" to a visual inspection disclosure, as he had done with a previous prospective buyer.

"A trier of fact could conclude that although Cortazzo did not intentionally conceal the information, Cortazzo breached his fiduciary duty by failing to communicate all of the material information he knew about the square footage," the justices wrote in their decision.

They also stated, "When a broker is the dual agent of both the buyer and the seller ... the salespersons acting under the broker have the same fiduciary duty to the buyer and the seller as the broker."

And they cited a finding in another case about confusion in the industry:

"Salespersons commonly believe that there is no dual representation if one salesperson 'represents' one party to the transaction and another salesperson employed by the same broker 'represents' another party to the transaction. The real estate industry has sought to establish salepersons as 'independent contractors' for tax purposes and this concept has enhanced the misunderstanding of salespersons."

FRIENDS OF THE COURT

Some compare a dual agent to an attorney representing opposing sides in a legal claim, which is not allowed.

"Use common sense ... you have fiduciary duty to both. How do you do that? Could you be a lawyer for both?" said Stimmel, the San Francisco lawyer.

Besides, he said, it gives the real estate industry a bad reputation: "Most real estate agents are honest, and I don't think they understand how much their integrity is undermined by dual agency."

Hunt maintains that a real estate deal isn't necessarily adversarial; instead of winding up with a winner and a loser, as in a court proceeding, the goal is to satisfy both sides.

Other agents add that often the seller can benefit because a dual agent will reduce the commission; the standard 6 percent doesn't have to be split with a buyer's agent.

The National Association of Exclusive Buyer Agents, which opposes double-ending deals, has filed an amicus — or friend of the court — brief before the state Supreme Court. The California Association of Realtors has filed its own brief, asking the court to reject the appellate ruling and uphold the jury's verdict.

As both sides watch closely, "It is certainly possible that dual agency, as it is now commonly practiced in California, will become untenable," Hunt wrote in an article for RealtyTimes, a trade site.

The high court could add further rules or disclosure requirements. But, noting that the state generally has been strict about matters involving fiduciary duty, Stimmel hopes the argument over double ending doesn't end there.

"If any state is going to stop it," he said, "it's going to be California."

Source: San Jose Mercury News, Marilyn Kalfus
http://www.mercurynews.com/business/ci_29839736/double-agent-rift-over-how-real-estate-is

How Do You Know If You’ve Found Your ‘Perfect Match’? [INFOGRAPHIC]

Realtors Reveal: ‘The Hardest Home I Ever Had to Sell’

You hear how hot the market is, and how there aren’t enough homes for sale. So selling your house should be a snap, right? Right?

Well, not always. Even in the fastest-moving, most in-demand areas, certain homes—for whatever reason—just sit … and sit … and sit on the market. As a seller, this may lead you to contemplate harm to yourself, your pet canary, your life-size Jeb Bush doll (hey, who are we to judge?). But don’t do it! There’s always hope.

As inspiration, check out these true-life tales from real estate agents on the hardest home they ever had to sell. Their hard-won lessons may benefit sellers struggling to unload their own digs.

Smells like sabotage

“The most difficult home for me to sell was a five-bedroom in Diamond Bar, CA. The seller had her daughter and the daughter’s children living with her. No matter how much notice I gave them to leave before a showing, they were always there—frequently walking around in their underwear, the smell of weed wafting through the air, even ‘Do Not Enter’ signs on certain rooms. Eventually, my listing expired. There was no shortage of other agents wanting to show the property, so they listed with someone else, but big surprise: It still didn’t sell. Six months later, I received a call from the seller asking me to relist. I told her only if the family agreed to follow my directives. This time around, they cooperated, and in 2015—two years after my initial listing—the property sold.” – Julie Marie McDonough, real estate broker and author of “How to Make your Credit Score Soar”

Lesson learned: Listen up, home sellers—if your agent offers some advice, take it. They’ve sold hundreds of homes, so they know what works. So leave the house during showings, already. And put on some damn clothes.

———

Bring in the drones

“A $12.9 million Fifth Avenue trophy property had been on the market for three years with several different brokers. Everyone said this property was overpriced and would never sell. My co-worker and I weren’t daunted. We took a risk and brought a drone into Central Park—which is technically illegal—and shot some stunning visuals across the reservoir for a promo video for the apartment, even with cops standing nearby. Drones open up the world in visual marketing, and this gave us the ability to shoot and record some grand and spectacular footage from high up in the air. We had so many people taking photos of us and the drone. Lots of attention. But it worked! We got interest in the place, and it sold soon thereafter. The sellers thought it was a straight-up miracle!” – Phillia Kim Downs, Phillia & Claire

Lesson learned: Use the latest tech advancements to shed fresh light on your home. This new perspective not only grabs new eyeballs but could also inspire someone to make an offer.

———

Doughnuts for dollars

“In Portland, OR, Voodoo Doughnuts has a cultlike status—and one of my agents had a listing for a home that was owned by one of the founders. After being on the market for years, the sellers were getting frustrated, so we decided to throw in an offer for free donuts for life to whoever bought it. Now, someone is getting all the glazed, cake, and sprinkles they want: The couple who bought the home had actually gotten married at a Voodoo Doughnuts and had doughnut tattoos!” – Jenelle Isaacson, owner, Living Room Realty

Lesson learned:  Doughnuts rule. Also, sometimes the quirkiest offer or (sweetest) enticement will help you stand out from the pack.

———

Eminem infamy

“We had a property in West Bloomfield, MI, that was clouded by several vacant properties throughout the subdivision. It wasn’t moving at all. So we decided to hold an auction—and the centerpiece of our marketing plan was using the owner’s notoriety as the award-winning producer for Eminem‘s hit song ‘Lose Yourself’ to drive up the price. In the end, we sold the property for $924,000—the highest comparable sales price in the last five years.” – Sara Rose Bytnar, Beth Rose Real Estate & Auctions

Lesson learned: Celebrity connections, even tangential ones, can grab added attention that can get a home sold.

———

Trailers and trash

“As a newer Realtor®, I took on what ended up to be a nightmare in El Sereno, CA. The sellers—a brother and sister who weren’t speaking to each other—were unloading a lot with a burned-out house that had become a dumping ground littered with cinder blocks, old tires, five motorcycles, and countless beer and wine bottles. They wanted to sell it as is, so we tried. We were in and out of escrow three times where investors would offer, than cancel as soon as they saw the lot. But we stuck with it. After eight months—and nearly giving up—we finally sold it to buyers who were young and excited to turn it around. And for a surprisingly large sum!” – Stephanie Miller, associate partner, Partners Trust

Lesson learned: No matter how long the sales process drags on, take heart: One person’s trashed property is another person’s treasure.


Source: Realtor.com, Kimberly Neumann
http://www.realtor.com/advice/sell/hardest-home-to-sell/?iid=rdc_news_hp_carousel_theLatest

These 10 Expenses Are Why Realtors Don’t Make The Kind Of Money You Think They Do

People often think when I tell them I am a Realtor that the money is rolling in and I do little work. The fact is that the opposite is usually true. Real estate IS NOT an easy business despite what many think, and the money, well, it can be relatively good, it's not just rolling in.



Much of the general public is oblivious to all the costs associated with being a real estate agent. They mistakenly believe we all drive Benz’s and are grossly overpaid. Nothing could be further from the truth. Carrying a real estate license comes with great expense, and we have to charge our clients accordingly to cover the costs of doing business.

According to Payscale.com, the median yearly salary for real estate agents is $44,488. Most agents don’t even sell five homes per year. With that in mind, there’s a myriad of monthly costs that must be covered, whether we sell a home that month or not.

To demonstrate that it’s not all fancy cars and mansions in the lives of agents, I’ve listed 10 things real estate agents blow their commission checks on which the public has no idea about.

1. Lockboxes:
These little guys, who hang on your door when your home is for sale, are not cheap. Think about it, these are boxes that are destruction proof and operate by satellite. Not to even mention the expensive supra key that you have to buy and have a subscription to, in order to unlock the boxes. Agents who have 10+ listings have thousands of dollars in lockboxes alone.

2. Signs:
An agent can’t sell a home without a sign. Signs aren’t free. Much like lockboxes, when an agent has dozens of signs, they have lots of money invested. The design and shipping alone is hundreds of dollars. Agents use yard signs, open house signs, location signs, sold signs, pending signs, and in the HOA controlled neighborhoods, designer signs. It adds up very quickly.

3. NAR Dues:
The National Association of REALTORS® (NAR) is America’s largest trade association, representing over 1 million members involved in residential and commercial real estate. Not all real estate agents opt to join NAR and become REALTORS®, but the vast majority do. And guess what—NAR wants its money every month. And they don’t take IOUs.

4. MLS Dues:
On top of belonging to NAR, you have to pay monthly to have access to the MLS. The MLS is the source that lists all the homes for sale. Trulia and Zillow don’t have near as much data as the MLS. The MLS charges a hefty monthly fee to list and sell the agents’ homes. It’s very much a necessary tool in the agent toolbox.

5. Marketing Materials:
The agent’s main job is to market. They market properties and themselves. Between websites, business cards, flyers, and belonging to sites like Zillow and Trulia, the average agent will spend almost $1,000/month on marketing materials. Some spend $10,000+ in marketing each month. It’s not cheap to spread the word about a multi hundred thousand dollar asset for sale.

6. Advertising:
Paid ads aren’t cheap. Whether it’s on Facebook, a billboard, or the baby seat in a shopping cart, ads cost a lot of money. They’re the lifeblood of a good agent. That’s how they sell your home—by advertising it.

7. Website Hosting:
If you’re going to sell real estate in this digital age, you need a website. You’ve got to have a place for your prospects and clients to come and search for homes. That website has to feed into the MLS (another fee to do that), and the website has to be responsive. The average custom website costs $5,000 and comes with a monthly charge of $200. You starting to see the pattern here?

8. Open Houses:
You may think that we just sit in your home using up your free wifi, but that’s not the case. Depending on the agent, there’s food involved as well as balloons, signs, ads, and staging—all designed to make the place look and feel like a million bucks. I’ve even paid to have someone mow the yard and trim the bushes before an open house. I didn’t have time to wait on the owner to take action.

9. Closing Gifts:
In most markets its customary (but not necessary) for agents to give a gift to the clients after doing business with them. What most don’t know is that they usually send one to the title company and the loan officer as well. When everyone puts in hard work, the agent wants to reward them so they continue to do so. You may view it as frivolous, but you can never be too nice to title companies and banks. When you need a favor, gifts go a long way.

10. Office Space (often included in an agent’s commission split—read more here)
Most people think that agents have a job with an office. They don’t realize that the broker charges for the office space and the furniture that occupies it. Just know this: Nothing is free in the real estate game. Not even a place to do your work. Agents are nickled and dimed to death. And as you know, commercial office space isn’t cheap.

So next time you’re thinking about hiring an agent, and you think their fees are a little high, think of this list (which is just a fraction of what’s really paid for). They’re all things to facilitate properties getting moved faster and for higher dollar amounts.

It’s not easy, cheap or always fun being a real estate agent, but the smile we see on our clients’ faces when they buy a new home or profit from selling their old one, makes it 100% worth it.


Source: LighterSide of Real Estate, Ryan Stewman
http://lightersideofrealestate.com/real-estate-life/agent-life/10-expenses-realtors-dont-make-kind-money-think

8 TIPS FOR GETTING THE NEW HOME YOU WANT IN A COMPETITIVE MARKET

Late last year, eager homebuyers lined up overnight at a new-home community in the Dallas suburb of McKinney, TX to get first crack at a new phase release. Shades of pre-recession days when campouts for new homes were common? In the mid 2000s, we bought a new home in a popular California suburb that became so in-demand, the builder started splitting phases in half to accommodate larger price increases per phase. The homes that sold at the tail end of the community were $150,000 more than those purchased in the first phase.

Are we headed there? Maybe not. There have been a sprinkling of campouts over the last couple years as the real estate market continues to improves and inventory shrinks, like here and here. In the case of that McKinney community, Prestwyck, competition among all homes in the city and surrounding suburbs is steep.

Line up, and you only have to worry about the people in front of you, unlike the increasingly hostile environment of existing home purchases in popular areas - especially when all-cash buyers are shutting out those who have the nerve to need a 30-year mortgage. So how do you make sure you get the new home you want?

1. Be informed

If you have specific neighborhoods, communities, or builders you're interested in, start researching and following them on social media, and set up Google alerts. The first line of defense is to know what's going on so you can act fast to get the home you want.

2. Register your name on the interest list

Communities and builders reach out to those on their interest lists with news about model homes, property releases, new phases, and other updates. If you want to be among the first to know, make sure the community/builder knows about you. You also want to be aware that many new-home communities have a policy regarding real estate agent representation; you typically have to tour the community with your real estate agent on your first visit in order for your agent to receive a commission when you purchase. Which brings us to our next tip…

3. Work with a REALTOR®

REALTORS® have the inside track on new releases and in many cases will be able to alert you to important news before the public has been made aware.

4. Make a friend

It doesn't hurt to makes friends with the sales agents in the community. They're great resources for neighborhood details others might not be aware of.

5. Get preapproved

If you're not preapproved for a loan when you go to buy a new home, you could lose it to someone who is.

6. Check for financing options through the builder

Using a builder's in-house mortgage option won't move you up an interest list, but it can provide other benefits. Depending on the builder, there may be incentives like closing cost help or upgrades for financing your home with their mortgage partner.

7. Talk to your REALTOR® about options and upgrades

This is important when securing your financing. The model home, if there is one, will likely be significantly upgraded and full of options that raise the price well beyond the base price. Having an idea of the options and upgrades you want, and the cost involved, is an important step in the process because it helps ensure you are approved for the correct amount. Finding out after the fact that you can't qualify for the home you want because the decked-out kitchen you're coveting has pushed the sales price out of reach would be a drag.

8. Familiarize yourself with the community and the properties

Intense community interest - the kind that incites campouts - can breed a frenzied energy and cloud judgment. And, you never know which homesites the people in front of you in line will choose. It could be that the one you were dreaming of is gone by the time you get to the front. Knowing the community well and having notes outlining which sites meet your needs will help you make an informed choice when it's your turn.

Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/buyersadvice1/item/42747-20160303-8-tips-for-getting-the-new-home-you-want-in-a-competitive-market

Time Your Listing in the Magic Window to Sell Faster and for More Money

In early May, homes sell fastest and for more money, according to the newest data. This is the new magic listing window for the country’s 25 biggest metro areas.

Weather and housing market dynamics affect the exact best window to sell in different areas, and this year, a low supply of homes on the market has pushed the window later in the spring. In Zillow’s first analysis of the best time to list, homes listed between mid-March and mid-April sold fastest and for the highest price. But the decline of the number of homes on the market has increased competition, so shoppers who start looking for a home in early spring may need to look at several homes and will often still be shopping a few months later. By May, some buyers may be anxious to get settled into a new home before the next school year — and will be more willing to pay a premium to close the deal.

For sellers hoping to sell quickly and get the maximum sale price for your home, the time to list is right in the first half of May. Nationally, homes sold May 1-15 sell about 18.5 days faster and for 1 percent more than the average listing. That means an average premium of $1,700 for the seller of a median home.

Today, Zillow has launched a new tool to personalize this data for individual sellers. The new Best Time to List feature estimates how much more money a seller can make by changing the listing date on their individual home. The tool is live for 71 million off-market homes, and registered Zillow users can find it by clicking the “Sell Your Home” on the home details page for an individual home. The methodology for the analysis, originally featured in “Zillow Talk: Rewriting the Rules of Real Estate,” is detailed on Zillow Research.


Source: Zillow Blog, Emily Heffter
http://www.zillow.com/blog/magic-window-to-sell-faster-193229/

Let’s Get Crystal Clear On How Real Estate Agents Are Paid

So you’re thinking about buying or selling a house? Odds are good that the first thing you did was contact a real estate agent to help you out. According to the 2013 Profile of Home Buyers and Sellers published by the National Association of Realtors, 88% of buyers purchased their home through a real estate agent or broker.

So how exactly do real estate agents get paid?

SHORT ANSWER:

Real estate agents work for real estate brokerages, and they earn money via commissions when they assist buyers and sellers buy or sell homes.

Now let’s dispel a false assumption right off the bat…

REAL ESTATE MYTH – Agents must be rolling in the cheddar. Word on the street is that some of them make 6% or even 7% commission on every house they sell! Not exactly… Most agents are not living the lavish lifestyle you may assume they are. The income is much more modest than you might expect. Real estate agents have a median income of $40,990 with the top performers making more.




LONG ANSWER:

First, let’s go over some terminology.

When brokerages hire real estate agents they typically set them up on what is known as a commission split. This means that when a commission is paid to a real estate brokerage, it’s split between the brokerage and the real estate agent. Some common commission splits are 50/50, 60/40, 70/30 & 80/20. This will vary from brokerage to brokerage and even from agent to agent. There may be a brokerage with 5 real estate agents who all have different commission splits.

Generally speaking, in any given real estate transaction there will be between 1 and 4 real estate agents or brokerages involved in the transaction — all of whom expect to be paid.

Listing agent – This is the person who meets with a homeowner who is interested in selling their home. This person works for a real estate brokerage. This person is then hired by the sellers to sell their home. The sellers signed a contract which explained the amount of money they were going to pay this listing agent’s brokerage to sell their home. This contract is known as a listing agreement.

Listing brokerage – All real estate agents work for real estate brokerages. Every real estate brokerage has a licensed real estate broker who is in charge of the real estate agents working at that brokerage. Every real estate agent you meet will work for a brokerage like one of those mentioned. The brokerage that employs the listing agent is the listing brokerage.

Buyer’s agent – This is the real estate agent who meets a person who wants to buy a home. This agent will show a potential home buyer homes that are listed either by themselves or other listing agents.

Buyer’s brokerage – The brokerage for whom the buyer’s agent works.

It is important to note that these roles can be different in each transaction. A real estate agent can be a buyer’s agent, or a listing agent depending on the deal. A real estate agent can even be both the buyer’s and seller’s agent.

Let’s go over some different scenarios to illustrate how each of these agents and their brokerages get paid.

Scenario A

A buyer wants to buy a home. She meets a real estate agent named Brian. Brian works for The Holton Wise Property Group. Brian is on a 60/40 commission split with The Holton Wise Property Group. Brian takes his buyer to a home that is listed by Carla. Carla works for Century 21. Carla is on a 50/50 commission split with Century 21 and has been hired by the owners of a home on 123 Main Street in Cleveland, Ohio. The price this home has been listed at is $249,900.00 The sellers have agreed to pay the brokerage Carla works for 6% of whatever she can sell the house for.

Brian and his buyer put in an offer on 123 Main Street for $225,000.00 That offer is accepted by Carla’s sellers. Carla’s brokerage is going to get paid 6% of the sales price by the sellers, but why did Brian take his buyer to Carla’s home on 123 Main Street? Who is going to pay Brian and The Holton Wise Property Group?

Answer: Carla and her brokerage.

When Carla was hired by the sellers of 123 Main Street she entered their home into something called the multiple listing service (MLS). This is a website that real estate agents and brokerages use to help their clients buy and sell homes search for homes. When Carla put 123 Main Street on the MLS she offered all other real estate brokerages a share or split of the commission she gets from the sellers of 123 Main Street if they were able get their buyers to buy the house. In this situation Carla and her brokerage offered Brian and his brokerage 50% of the commission for the sale of 123 Main Street.

So let’s see how this whole thing played out.

The house sold for $225,000.00 The sellers agreed to pay a commission of 6% to Carla’s brokerage. That amount is $13,500.00.

Carla’s brokerage agreed to pay 50% of the commission to Brian and his brokerage. Carla is on a 50/50 split with her brokerage and Brian is on a 60/40 split with his.

Here is the breakdown of the commissions earned by all who were involved.

• Total commission paid by the sellers $13,500.00
• Total commission paid by the buyers $0.00
• Carla’s commission $3,375.00
• Carla’s brokerage commission $3,375.00
• Brian’s commission $4,050.00
• Brian’s brokerage commission $2,700.00

Scenario B

As I stated before these roles can change by the deal. There is not always that many people involved in the scenario.

Let’s assume Brian’s buyer did not like Carla’s house. Instead, Brian’s buyer liked a house that Brian had listed himself. This house was also listed for $249,000. The sellers signed a listing agreement with Brian that paid him a commission of 6% of the sales price. Brian’s buyer put in an offer of $225,000.00 that was accepted by the sellers.

Here is the breakdown of the commissions earned by all who were involved.

• Total commission paid by the sellers $13,500.00
• Total commission paid by the buyers $0.00
• Brian’s commission $8,100.00 (60% of the total)
• Brian’s brokerage commission $5,400.00 (40% of the total)

Source: LighterSide of Real Estate, 

http://lightersideofrealestate.com/real-estate-life/how-real-estate-agents-are-paid

Going Solo: 5 Steps to Buying a Home on Your Own

The home-buying experience often portrayed in advertising generally seems to focus on couples and families. But these days, only 40 percent of first-time home buyers are married, down from 52 percent in the late ’80s, according to Zillow research.

The process of purchasing a home for a sole owner may be fairly similar to that of anyone else, but there are a few slight differences in how a single buyer might approach the home-buying experience.

Here are five ways to make your solo house hunt a success.

Find your agent

Don’t choose the first real estate agent you find in an online search. Try posting a query on social media to get insights from your friends and family, and search for agents in your area, taking plenty of time to read reviews. Look for positive agent reviews that may comment on purchasing alone versus as a couple.

Once you find a few agent options, meet with each of them. You’ll want to ask plenty of questions — don’t let them do all the talking.

Read up on your resources

So you’ve met with multiple agents and found the one for you. Great! But having a wonderful real estate agent doesn’t mean you don’t need to read up on your own.

Don’t rely on your agent to explain every detail of the process. They probably will, and should, but it’s your job to be an informed buyer. Head to the library or check out online resources to find out your rights as a buyer and learn about home-buying programs.

When you’re deciding how much home you can afford, consider all recurring expenses that come with owning a home. Think beyond mortgage payments and closing costs — include expenses such as home maintenance and repairs.

And if you’re nervous about being turned down for a loan because you’re buying on your own, try not to be. While qualifying for a loan on one income may mean you purchase a smaller home, it doesn’t mean you can’t buy. In fact, banks are not allowed to discriminate against potential home buyers based on marital status.

Singles buying a home on one income should consider an FHA loan, as borrowers with good credit can qualify for a small down payment.

Choose the right home type for you

Are you looking for something to grow into? Or do you want a small starter home you can rent out in the future? Whatever your current and future home needs are, know that you have options regarding the type of home you purchase.

Buying a condo or townhouse may leave you with a lower mortgage, but don’t forget about possible homeowners association dues and storage fees. And while a smaller place means less to maintain for one person, regular maintenance is still a homeowner must.

House hunt with confidence

Pursuing homeownership on your own doesn’t mean you have to decide everything solo. Bring one or two of your close friends who have recently purchased a home and who you know can offer honest feedback.

If you plan to move to the suburbs to get more house for your buck, consider if you’d really be happy living away from your favorite downtown spots. Try commuting to and from your potential home from work, your friends’ homes, and your favorite shops and restaurants. If you discover it’s a tad too far for comfort, narrow your home search.

Once you find a few neighborhoods you love, look at the crime data. There are plenty of online tools that can help you check the safety of a neighborhood. And as you scope out houses and communities, take note of enclosed backyards and security gates. Because there may not be someone home during hours you’re typically away, you’ll want to be mindful of security precautions during your house hunt.

Make an informed offer

If you’re buying as a singleton, you may not have someone by your side to help you figure out what to offer or how to negotiate. This is where finding the best real estate agent for you will serve you well. Talk to your agent about how your offer may stack up against recent sales in the area, as well as the possible concessions you can get from the sellers.

Whether you’ve just started considering purchasing your first home or you’re newly single and buying on your own for the first time, these five steps will ensure you’re a smart and savvy solo buyer, and help you land a home of your own.

Source: Zillow Blog, Sarah Pike
http://www.zillow.com/blog/buying-a-home-on-your-own-192824/

The Most Common Questions Asked by Home Sellers—Answered!

Selling a home you’ve lived in and loved over the years isn’t exactly like unloading your collection of old Slayer LPs on Craigslist (or is it…?). It’s hard. It’s emotional. And above all else, it’s complicated. A slew of questions will likely pop into your head throughout the process—and possibly keep you up at night.

Last week, we revealed the most common questions asked by home buyers. Since people on the other end of this deal have a lot on their minds, too, today we’ll tackle the most common questions that real estate agents hear from sellers—along with some answers, of course.

Q: How much needs to be done to my house before putting it on the market?

“Many sellers have extreme anxiety over the thought of having to clear out and fix up their home, so much so that it can prevent them from putting the place on the market in the first place,” says Alyssa Blevins with Pierce Murdock Group. But in most cases, there’s no need to panic here—or to overshoot your goals. “Very often, there’s far less to do than homeowners think.” So before spending months and millions (figuratively) upgrading your place—or just throwing up your hands and giving up before you begin—show your home to a Realtor®. You might be pleasantly surprised by your current sales prospects.

Q: How much is my house worth?

While the median house price in 2016 is $228,000, the exact price of your own home will depend on its size, neighborhood, and lots of other factors. Further complicating matters is your own skewed perspective: We tend to mentally inflate our home’s positives and airbrush out the flaws that are all too apparent to the cold, calculating eyes of buyers. “People always seem to compare their house to the most expensive sale in the neighborhood,” says Mary Ann Grabel, an agent at Douglas Elliman in Greenwich, CT. Instead, look at the prices of similarly sized homes that have recently sold in your area—data that agents call comparative market analysis, or “comps.” Then, price your place strategically. “If you price too high, the home is likely to linger on the market,” says Grabel. Meanwhile, pricing low can have major upsides, resulting in multiple bids that could ultimately jack up your price. So, do your homework. Then, discuss a number with your Realtor that feels right—and is realistic.

Q: How long will it take to sell my home?

Right now, nationally, houses spend around 100 days on the market before they sell, although the time varies wildly based on area and price. So, price competitively and make sure that you and your Realtor are getting the place in front of as many eyeballs as possible. “The higher the exposure, the faster the offers,” says Felise Eber, a real estate associate affiliated with Coldwell Banker Residential Real Estate and part of the Miami Beach luxury real estate sales team The Jills. Spread the word through your own social networks——real ones and virtual ones. You never know whose passing it along to that special someone will lead to a sale.

Q: Is staging really important?

On average, a staged home sells 88% faster—and for 20% more money—than a home that’s left as is. The reason it works, of course, is it gives buyers a “stage” onto which they can play out their home-owning fantasies and envision themselves living in your home. “Choose neutral paint colors and remove any family photos,” says Johnson. Give would-be homeowners a blank canvass that they can mentally fill with their loved ones and themselves.

Q: Should I be present when buyers view my house?

“NO!” says Johnson. (Hey, no need to shout. We’re right here!) “There is not any situation in which this is appropriate. Having the owner in the house makes the buyers uncomfortable. They feel as though they can’t make comments or ask questions that could be offensive. The owner—who has a history and attachment to the house—has the tendency to argue if a potential buyer makes a comment that could be a little negative. This can turn off buyers and lose you offers.” Got it.

Q: What is the agent’s commission?

While the commission can vary, it is typically 6% of a home’s sale price—and that’s usually shared with the buyer’s agent. But what’s implied by this question is “What are Realtors doing to earn that fat check?” Here are some facts to keep in mind: Unlike lawyers who get paid by the hour, or doctors who are paid by the appointment, listing agents don’t get paid unless they make a sale. For every hour an agent spends with a client, he or she will typically spend nine hours on average working on that client’s behalf doing everything from networking to finding potential buyers to filling out paperwork. And no, not all agents are created equal. Since most contracts last for a year, Realtor Susan Ratliff recommends that sellers “interview three agents prior to selecting one to represent them. It’s no different from choosing an attorney, accountant, or the doctor who will deliver your baby. You want to be sure that you trust that person and are comfortable with them.”

Amen.

Source: Realtor.com, Margaret Heidenry
http://www.realtor.com/advice/sell/most-common-questions-from-home-sellers/