Welcome to Becky's Late Nite REALTOR Blog!

6/6/2009

Wow! What a Tough Year It's Been! But New Opportunities Emerge!

What a tough year it has been for many of my fellow REALTORS and for our CLIENTS! Like many of my peers, I have worked hard to survive in an unbelievably difficult economic environment! Friends, family, clients, and prospects are out of work, laid off, losing their homes to foreclosure or forced to sell at a loss! Many good people who were only a year ago enjoying the fruits of their labor and paying their bills are now waiting on the unemployment checks, applying for jobs, and struggling to pay the mortgage each month with little extra money for nonessetial items. This summer, for many there will be no family vacation to a National Park or faraway destination...instead families will take advantage of local events and recreational activities nearby while they watch their budget carefully.

But, HOPE is on the horizon! I am noticing an increase in property viewings and a renewed interest in buying now before the $8000 tax credit expires! Not only this, but buyers are becoming more aware of the market and are learning about foreclosures and short sales! They are asking questions and they are listening. Many average citizens who never thought about buying an investment property are now considering it as a viable income vehicle that can benefit them long-term. Most of these buyers are contacting a reputable REALTOR to represent them in the transaction...not only to explain the process every step of the way, but to ensure that every t is crossed and every i dotted so that when their offer is submitted, it will be technically accurate, complete, and ultimately seriously considered.

If you are thinking about purchasing a property for investment purposes, don't consider acting on it until you secure the services of an experienced REALTOR to guide you in the process. As the mattress lady says, "It doesn't cost you a thing" and you'll be glad you did.

Thanks for your time!

Becky

Send your comments and suggestions for topics to:

beckyc@AccessHomePro.com

7/19/2008 12:00 Midnight

It's A Tough Market Out There and Agents Can No Longer Work for Free

I'd be lying if I said that real estate is easy and I'd be lying if I said that business was great! It's not, but the good agents are hanging in there serving their clients, spending their own money on advertising, and hoping for a turnaround soon that will enable more buyers to qualify to buy the home of their dreams and to enable more sellers to get their desired value for their current home.

We are the agents that are there when you call, no matter what time. We are the agents who will research a property or real estate question and get back with you in a timely fashion. We are the ones who will drop what we are doing to show you a house on short notice. We are the agents who will give you honest feedback about the chances of your home selling in its present condition...even if this means we do not get the listing. We are the agents who will honestly tell you that your home is overpriced for the market...even when we risk losing the listing. We are the agents who will tell you when a property you like is not a good buy even though we need a sale badly. This is still true, but consider the following.

We were the agents who would show you homes without your signing a single agreement. But unfortunately, we can no longer afford to do this. Real Estate is our livelihood and we must ensure that we have an income in order to do our jobs effectively.

Consider any service industry...can you think of any service that is provided for FREE by a provider merely hoping that the customer will agree to pay when the service is completed?...Me neither!

Real Estate is a service industry and some of the services we provide include:

1. Research & Information - properties on the market, properties SOLD, properties PENDING, properties under CONTRACT/OPTION, Comparatives - neighborhood, zip code, and region, trends, tax information, home seller information, property history information, and inside information not published but known to us because of our expensive membership in organizations like the National Association of Realtors, Texas Association of Realtors, MetroTex Association, etc.

2. Use of Our Time - hours and hours of time spent researching and compiling information on homes for clients to visit, time spent arranging and scheduling showings, time spent corresponding with seller agents about their listings, time spent actually showing properties (also the client's time), and time spent providing feedback on those properties shown! Then there is time spent following up with all customer/clients on a regular basis. Much of what a REALTOR does involves the use of his/her time while saving the client's time.

3. Use of our Resources - computers, software programs, printers, ink cartridges, paper. We print customer flyers and customer MLS sheets, forms to sign, contracts, disclosures, notices, and more from expensive software programs only available to REALTORS for our client's exclusive use. We provide booklets at our expense on Staging, Selling, Financing, and more in order to help educate the client.

4. Mortgage Lending Information...resources and referrals to lenders who have a proven track record of closing a high number of loans. We don't just pick these out of the yellow  pages...we work with these lender and know their track record.

5. Contract Explanations and Qualified Negotiations with the other party in a purchase transaction. Because we work for you, the client, we negotiate in your best interests at all times. Buying a home is the single most important and usually the most expensive transaction a consumer engages in today. Contracts are detailed and sometimes complicated and we try out best to explain each phase of the buying/selling process as clearly as possible. We refer the client to legal counsel if indicated.

6. Loyal Dedicated Representation of the client in all real estate negotiations and transactions. Because we negotiate in your best interests as a client, we do not reveal confidential information that might impact our negotiating position. We do, however, provide any facts forthcoming from the other party so that we can properly advise you with regard to your acceptance, counter, or decline of an offer. As stated, we do refer clients to legal counsel if indicated.

7. Personal Service geared to your particular needs. This is with regard to correspondence, meetings, scheduling, information provided, transportation, lodging arrangements if traveling out-of-town, etc. If the client has a need with regard to the real estate process, the client's REALTOR makes every effort to meet those needs.

As a Customer, when a REALTOR shows you a property or several properties and asks that you sign an agreement with them to ensure that they receive payment for their service, please don't be offended. If you feel that the REALTOR gives you good service and attention and you get along with them, please sign the agreement to let them help you find a home. If however, you do not "click" with the agent or you feel they are not giving you good service, simply say that you don't feel there is a good connection, don't sign, and thank the agent for their time. The next time you are shown a property, follow this same procedure until you do find an agent that meets your expectations and that you feel a connection with. As a considerate consumer, please don't use the agent to answer all your questions and show you dozens of homes when you know you are not going to sign with them. Save this for the agent you feel the connection with...the one with whom you will sign an agreement for him/her to represent you.

Thanks for your time!

Becky
 
Send your comments and suggestions for topics to discuss to:

beckyc@AccessHomePro.com

6/4/2008 4:00 AM

Open Letter to Homeowners Who Want to Try FSBO

First of all, I totally understand your desire to market your own home. Many owners try to do this before listing and I am happy to answer any questions you may have about the process. I would also like to provide some useful information about market conditions that may assist you in making this important decision.

The 1st reason homeowners choose to list with a professional REALTOR®is exposure. REALTORS®not only know the market, but they know a lot of prospective buyers and they know other agents who are searching for theirbuyers. Not to mention the Multiple Listing Service (MLS) where your home is marketed locally and across the country. Agents spend most of their time showing homes, previewing homes, talking to buyers who want to buy a home, and talking to sellers who want to sell a home and THEN buy a home. So it's easy to see that the exposure a homeowner gets through brokerage representation is Tremendous!

The 2nd reason homeowners choose to list with a professional REALTOR®is price. It's very difficult for homeowners to price their homes right according to the market and according to how soon they need to sell. It's hard to be objective when it's your own home because you love it and you know it is worth every penny you are asking! There are other issues as well; pricing can be complicated on several levels.

Often, FSBO homes are considered (whether true or not) by Buyers to be probably overpriced and as a result, Buyers think they can purchase the home for a really low price, hence the low offers that many FSBO sellers receive. Buyers assume that because the Seller has no agent to pay, that the Seller can discount the home even more, which is rarely the case.

In truth, both Buyer and Seller are at risk when buying/selling a home FSBO because neither party has any professional representation with regard to the contracts, offers and counteroffers, option period and fees, earnest money, escrow accounts, using correct legal forms, ensuring that the contracts are completed correctly with proper signatures, etc.

If the Buyer has representation, the Buyer will have the advantage of professional advice and guidance that you the Seller do not have. The Buyer’s agent may offer to help with the contracts and other details and you may think this is a reasonable idea, but remember that the Buyer is not accustomed to paying anyone’s commission; the Buyer is accustomed to all commissions being paid by the Seller. Because this is true, you the Seller may still be asked to pay the usual 3% commission as a condition for the sale, i.e. if the Buyer’s agent must work the Seller’s side of the transaction as well as the Buyer’s side, then they are in fact earning the commission for both sides; because the Seller has no agent, he is obviously at a disadvantage. Usually, the Buyer’s agent receives 3% for bringing the buyer to the sale (sometimes this is lower) and for all the accompanying work involved on the buyer’s side, but if the Buyer’s agent is doing paperwork for the Seller, he/she may ask for a larger percentage of commission to be paid by the Seller as part of the sale negotiations.  

In the end, the Buyer's agent may actually perform the work of 2 agents effectively earning commission for both sides of the deal for however long it takes to negotiate, arrange inspections, create amendments, handle correspondence with title company and lender, and coordinate all paperwork and copies until closing takes place...usually at least 30 days. In the event that neither side hires representation, a title company can help with contracts, but a lot can go wrong between the time of an offer and the closing date. This is the time you really need your REALTOR® to guide you through the maze of title work, terms, dates, option periods, earnest money, escrow accounts, and the closing process while watching out for your interests and protecting you from any unknown seller pitfalls such as required disclosures and physical property issues.

If the Homeowner/Seller is a real estate attorney and can do their own contracts, this scenario would be a bit different, but without seller representation, you will likely be on your own or will be represented objectively by the Buyer's agent, who is bound by ethical and legal rules to act as Intermediary between the Buyer and Seller and is not allowed to represent your interests or the buyer's interests exclusively.

Answer honestly...If you were the Buyer, would you want to buy the FSBO house where you might have to do the work of an absent seller’s agent, or one that has Seller representation? If you were the Agent, would you want to sell an FSBO house? When you search for your next house, will you look for an FSBO house or one where the Seller has representation and is obligated to legally to disclose pertinent facts and perform his duties according to TREC laws and ethics? Will you want a REALTOR to represent you, guard your interests during the buying process, and disclose important property conditions that might affect your purchase?

The 3rd reason homeowners choose to list with a REALTOR®is market expertise. The professional REALTOR®knows the market and knows your area because they have researched it before making their listing presentation to you. A good REALTOR®will have done this research and will be able to tell you the selling price of homes in your area. The selling price is key; the listing price of homes on the market is almost irrelevant. The market value of a property is whatever price a buyer is willing to pay TODAY and the only comparables that really matter are the SOLD homes in the area.

The fact is that homeowners often list too high even when advised against this by their REALTORS®, feeling that they "want to test the waters" or "let's try it at this price first". This is a really faulty strategy because the manner in which a home is presented in the first 30 days of listing determines whether it will be sold sooner or later. The home MUST be priced at a good market value when it is first listed! The home MUST be clean, clutter-free, and free of personal decor, pictures, extra furniture, storage items, and personal items.

The home MUST appear more like a model home so that anyone who walks in can picture themselves living there.

Survey statistics bear out the fact that FSBO homes generally end up selling for less than homes listed with a brokerage firm, partly because the buyers wanting to buy them are looking for a "deal" and because the serious buyers use REALTORS®to find their homes.

Last but not least, the 4^th reason homeowners choose to list with a professional REALTOR®is to protect their interests. Since selling their home is probably the most expensive and the most complicated transaction they will ever take part in, Sellers usually find that their peace of mind and their pocketbook is best served if they know they are represented by a REALTOR® and brokerage who is watching out for their interests, negotiating with their interests in mind, and working hard to get top dollar for their property.

I hope this information has been useful to you and I wish you much success in your FSBO venture. If you ever have questions, don't hesitate to call and I'll try to answer them. If you find in the future that you need honest, straightforward representation with unmatched personalized service, please give me a call.

I actively market your property. I host GREAT Open Houses with refreshments, produce color brochures, and provide free staging advice when needed. I am a proactive REALTOR®who prequalifies buyers early on to save you time and stress. I will always give you my honest opinion even if it loses me your listing. I don't want to list a house that I can't sell. It's very unpleasant to both the Seller and the Agent as my story above illustrates!

I will call for an appointment to preview your home in the coming week. I will NOT pressure you to list with me.

Thanks for your time!

Becky
 
Send your comments and suggestions for topics to discuss to:

beckyc@AccessHomePro.com

5/4/2008 12:00 Midnight

Listen to Your REALTOR

Here is what can happen when a homeowner doesn't follow the guidelines and advice of his/her REALTOR:

Homeowner “John” decides to list his house but wants to try a higher price first to see what interest he gets. Agent holds an Agent Tour and all agents remark that you can't see the house for the clutter and personal things, that the kitchen needs updating, and that the price is at least 10K too high. Agent spends own money to advertise, create and distribute color flyers, hold Open Houses, spread the word to other brokerages and agents, etc. Agent gets some Open House visitors but virtually all think the home is cluttered and overpriced. The kitchen is old, counters are worn out, and the appliances need updating. Agent advises that many decorative items need to be stored along with some furniture. Agent advises that kitchen needs updating. John acknowledges this fact, but doesn't think this matters to buyers and thinks they will want to choose their own appliances, etc. Seller is convinced that his décor has no effect on the buyer perceptions.

No offers come.

After a month, the price is reduced. Agent spends more $$ to advertise, holds more Open Houses, and gets more visitors, some of which become clients and to whom she is able to sell other houses… but not this one because this house is still too expensive and there are still dozens of comparable homes in the area priced 10K less.

Gradually, showings slow down to a dribble and Agent finally gets an offer from a buyer called Smith with no REALTOR representation. Smith offers a low-ball price for the house. Since the buyer has no representation, Agent corrects all the errors Smith has made on his contract including using an outdated form and presents it to John. John is offended and rejects the offer without making a counter offer. Smith verbally offers 5K more, but doesn't want to do it in writing (which is all that matters legally) and Smith says "No" verbally. End of this negotiation. During this time, there are agent showings but all buy another house in the area (with updates) at a lower price.

John’s home is reduced again and finally John agrees to buy upgraded appliances to enhance the kitchen. This time, 2 young couples show interest, but they have no REALTOR®representation.

First couple, the Agent writes a contract spending hours with the couple, then presents it to John. This offer is 5K more than Smith has previously verbally offered, but John wants more $$ and counters with the fact that he doesn't want to do any repairs AT ALL. This turns off the young buyers and they change their mind.

Next couple, Agent writes a contract, again spending hours with them on terms and presents it to John. It is exactly the same offer as the other young couple, but they don't have their lender letter yet. The next day, they call to say they didn't qualify and are backing out.

By now, the listing has expired and John has re-listed for an additional month, but there is almost no interest in his home. Open Houses are idle, although the Agent manages to sell a different house on the same street to an Open House visitor and sells a larger house in the area to another Open House visitor. No offers come on John’s home, however. Other agents who show the home occasionally eventually sell their clients a different home in the area for much less money. Agents say John’s home is "very nice" even if cluttered, but the buyers like another one better. Eventually, agent showings disappear.

All this time, Seller's Agent is contacting everyone who ever visited the home and showed an interest with the fact that the home has been reduced and the appliances upgraded, but all these potential buyers have gone on to buy other houses and are no longer prospects for this one.

Seller John finally tells his Agent 2 weeks before listing expires that he will accept the price originally offered by the buyer Smith early on. Agent agrees to call Smith back to see if they are still interested. Miraculously, Smith says that "yes" they are still interested at that price. Agent writes up the offer and presents it to Seller John. He doesn't appear to be pleased and sits on it for almost 2 weeks. The day before the listing finally expires, he contacts the Agent and wants to accept that offer! Agent calls Smith and finds that she has purchased a house around the corner just 2 days after Agent called her 2 weeks ago. Because John waited hoping for a miracle offer, he lost the only real offer he had at a price he said he was willing to accept!

Bottom line is, Seller has missed the market window to sell his house at the right price. Now expired, Seller is painting and redoing the counters thinking again about selling FSBO because the Agent "failed" to sell his house. Seller still thinks his home is worth more than the Agent has indicated and plans to sell higher in the Spring. Seller says he "needs" to net a certain amount in order to buy another house in the new city and he "must" sell for a higher price. This may work out for him in the Spring, but by then, he has paid over 6 months of house payments, had to leave his family here while he starts his new job in another city, and is spending even more money on home maintenance during this time.

This experience didn't end well for the Seller or the Agent. Agent spent $1000 of own money to market the property, not to mention the long hours of Open Houses and negotiations with buyers that didn't work out. Seller didn't get his house sold and had to start job in another city without his family. John isn't happy; Agent isn't happy.

What John doesn't realize is that it doesn't matter what he "needs" to start life in another city. It doesn’t matter that his market value is close to what he originally paid for the house 3 years ago! There is no guarantee of high profit when you sell your house. There may be good profit if the market conditions are right, but it could be a down market or level market where values have stayed about the same over several years. It is simply a fact that if you need to sell your home for whatever reason, it must be priced at current market value to sell quickly.

Finally, even if you are NOT in a hurry to sell, if you market your home for an extended time, buyers see this and wonder why it has been "for sale" for so long and why no one has purchased it. They imagine that there must be something wrong with it for it not to be sold, or that the price must be way too high.

Send your comments and suggestions for topics to discuss to:

beckyc@AccessHomePro.com

3/5/2008 - 12:00 Midnight

Home Buying Process - It's Worth It!

Remember when you were a first-time buyer and you were so confused about the process? And every time you turned around, you were paying for another inspection or survey or SOMETHING?

Well, don't feel alone! Almost all new first-time buyers feel this way! The home buying process seems incredibly complicated and not only are you totally LOST about what is going on from day to day, but you feel like the entire Real Estate business is purposely organized and designed to confuse YOU, the buyer!

This really isn't the case you know....and it's certainly not on purpose! Real Estate is just a really detailed and legally complicated process and it takes an educated professional REALTOR to guide a new buyer through the maze of paperwork, inspections, surveys, appraisals, loan programs, offers and counter offers, amendments, disclosures, and agreements.

Although the home-buying process may seem chaotic and complicated, your professional REALTOR understands every phase of the process through negotiation to closing and will do whatever he/she can to make this process progress smoothly without hangups so that you will be spared as much stress and worry as possible!

Remember that the home buying process is not easy or simple because anything of great value usually is not easy or simple. And buying your First Home is one of the most...if not THE most MAJOR decision you will make in your life. It's important and doing it RIGHT makes all the difference! Home Buying is about long-term investment, about equity, about value, and about working toward all of these for your successful economic future.

So remember when you grumble about the process and all the details involved, that being a HOMEOWNER is WORTH every minute of the trouble you've gone through. You will soon be owning something of real and lasting value...something that can grow over the years and provide you with security and equity that you can use in the future. Owning a home is a Savings Account that you can't touch....money socked away where you can't find it and this is all GOOD! Relish this moment and go with it! You will be glad you did!

Thanks for your time!
Becky

Send your comments and suggestions for topics to discuss to:

beckyc@AccessHomePro.com