I Have Seen the Enemy and It Is Me!

Well, it had to happen, I guess. I have become my own nightmare – the buyer who wants it all! Yes, with prices low and the tax credit extended and expanded (which now makes me eligible), I’m in the market for a home.

And wouldn’t you know it? I want it all. I didn’t think I’d be that way. I found a home that got my attention, thought it was reasonably priced and in pretty good condition. Then I did some research and found that one comp, the one that totally screwed everything up. The house across the street had recently sold for substantially less than the list price of the home I was looking at AND it was bigger.

Now the first house looks over priced, even though other comps support the asking price. But that one comp keeps haunting me like “the ghost of buyers past” and I can’t bring myself to offer a price near the list price.

So I did what other buyers do – I made a lowball offer. Which, of course, was rejected. Then I did what I’ve seen other buyers do – I decided to wait and see if the seller would get “realistic”.

In the meantime, while I wait, the seller has had two price reductions – just not to my number. But now it’s really priced great (unless you think about the comp across the street)!

This is why doctors shouldn’t treat themselves and lawyers shouldn’t have themselves as clients. I need objective advice from a Realtor® who is not afraid to tell me what I need to hear. Instead, I have me. Stay tuned.

There Has Never Been a Better Time to Begin a Real Estate Career

In any lifetime there are a handful of opportunities for greatness.  Some we take advantage of, while others we let slip away, then live to regret later.

This is one of those times when opportunity is here, for those who have the vision to jump in.  Fortunes are being made, and will be made, by those visionaries who have decided to begin a career in real estate now.

Why would the middle of the worst recession in decades be a great time to get into real estate?  Well, for one thing, the “faint of heart” have gotten OUT of the game.  There are fewer agents now than in years so the competition for the customer is at its lowest.

Another reason is timing on the factors that most influence the market:  interest rates are at all time lows, the government is handing out tax incentives, home prices are down, and inventory is high.  That translates into a potential home-buying frenzy with people who have been on the fence about buying for the last few years. 

The real estate meltdown caused the economic realities we face today.  Everyone, including the government, knows this.  So what industry is the government looking to boost back up to turn things around?  Real estate!

 There has never been a time, and probably never will be again, in which all the stars have aligned to create such a perfect time to be in this business.  Will this be something you regret later or do you have the vision to take the plunge?

Selecting the Right Agent is Like Picking the Right Quarterback

The person who leads the football team is the quarterback.  The person you select to sell your home is just as important.  There are a lot of factors involved in the selection, and just as in football, it’s easy to be influenced by the wrong things.

Heisman Trophy winners are not always the most successful quarterbacks in the NFL and just because an agent won awards doesn’t always mean he’s the best person for your needs.  First of all, the quarterback can only be as good as his team.

What company is behind your quarterback?  Does the “team” lead in market share? Is the team owner involved in the team and is it a person of integrity?  You can have a rookie quarterback that is surrounded by a talented team and come out a winner.   And you can have a new agent who is backed by a company with knowledge and support and resources and come out with the same kind of success.

Behind every successful quarterback there are coaches and trainers that have helped with his success.  A quarterback who is trying to go it alone and do everything himself is one that is going to get sacked.  A good agent needs experience and leadership in his company and resources at his disposal in order to be successful in the sale of your home.

Pick the right team and the right quarterback to sell your home if you want to come up a winner when the game is over.

Are You a Homebuyer Looking for a Prince but Keep Kissing Frogs?

As picky homebuyers (and I include myself in this category) we want it all.  We really want a “prince” of a home, but we keep running into a lot of “frogs”.

Now I don’t know about you, but I really don’t want to live in a “frog”.  I want a nice kitchen and up to date bathrooms and I don’t want the roof to leak and stuff like that.  In essence, a “prince”.

But to be in the location I want and the size home I want, I keep finding more frogs.  Well, guess what?  There is a mortgage that can turn your frog into a prince.

It’s called a 203K, but what it amounts to is a fixer-upper mortgage.  We usually imagine that we buy a home in whatever condition it’s in and then spend our own money to fix it up.  With a 203K you don’t have to do it that way.

You find the home and it costs X.  Then you get an estimate of what it will cost to make this frog into a prince and that plus the home price becomes the amount you finance.

The result is no out-of-pocket costs and a mortgage amount that may be only slightly higher than the unfixed-up amount.  Variations on this mortgage allow anything from just some cosmetic upgrades to a full blown renovation.

Want to know more?  Contact me and I’ll help you find a frog that has prince potential!

How Much More Convincing Do You Need?

You’ve been hearing it for months – “Now is the time to buy a home!”  Well, how much more convincing do you need?  The homebuying tax credit just got expanded and extended.  If you qualify (and a whole lot of us do) then there may never be a better time to buy a home.

Just think, the government is going to PAY you – hard cash – to buy a home.  An $8000 or $6500 check could actually pay your mortgage for a big chunk of next year!

Add to that the record low interest rates.  The last time we had interest rates this low they were tied to adjustible rate mortgages.  Now those record rates are for FIXED rate mortgages.  Do the math.  You can buy more home for less money!

Speaking of home, prices have dropped to numbers we never thought would come around again.  There isn’t a market in the country that isn’t more affordable than in recent years.  There are some areas in which you can get a home for as much as 65% off what homes were selling for in the peak years.

But the clock is ticking.  Government is not going to continue to offer this kind of assistance indefinitely.  Under the new plan a home has to be under contract by the end of April 2010 and close no later than 60 days past that.

This is an extraordinary time.  Years from now there will be people looking back with regret, singing that old song – “If only I’d bought then.”  Don’t be one of them.

Watson Jar Openers Can Prevent Swine Flu

It’s not only flu season, it’s double flu season.  Everyone is reading about the H1N1 virus, commonly known as swine flu, and they are concerned about how NOT to get it.

Well, if you are a Watson customer, you have probably been given a Watson jar opener in the past.  If not, they are available at every Watson office, free for the asking.

Over the years we’ve come up with over a hundred uses for jar openers, but you’ll be happy to know they also work to prevent the spread of swine flu.  Here are the top 10 ways:

1. Use a jar opener to open public restroom doors.
2. Put your cell phone on a jar opener instead of other surfaces to avoid picking up germs on your phone.
3. Use a jar opener to pump your gas.
4. Select your items using a jar opener in the grocery store.
5. Place a jar opener over open beverages in public places to avoid air born germs.
6. Avoid confusing drinks at a party by always setting yours down on a jar opener.
7. Give your baby a fresh jar opener for teething if the other one is dropped.
8. A jar opener makes a perfect cookie placemat when snacking at work or school.
9. If you have to sign something with a public pen, hold it with a jar opener.
10. Use a jar opener to grab the office coffee pot handle.

And if all else fails, punch two holes in a jar opener, tie on a string, and use it as a face mask.

 

Open Letter to a Bunch of People: Maybe You Shouldn’t Buy or Sell Right Now

This may get me into trouble but let me be honest – if you don’t HAVE to sell your home right now or you aren’t really committed to BUYING a home right now, then maybe you shouldn’t. 

Right now there are many people who DO have to sell their homes.  They have financial hardships due to job loss, illness, family situation, etc. and we’re doing our best to help them sell their homes and avoid foreclosure. 

That increased inventory is depressing prices and you may be disappointed when we tell you what the market value is for your home.  So you may want to wait until we have sold the homes for the folks who really need to sell.  Then prices will begin to rise again and you can jump back into the market to sell yours.

Buyers?  This is the best time in decades to buy a home.  Interest rates are low, homes are at unheard of prices, and there is a huge selection of available homes.  So if you are buying your first home, or taking advantage of an opportunity to make an important move for your family, now is the time. 

However, it really isn’t a good market in which to buy a home to flip quickly.  If you are trying to buy someone’s home for pennies on the dollar with the idea of making a huge profit by selling tomorrow, this isn’t the right market for you.  Buying a home that is a good value and holding on to it for some time IS a good idea.

The truth is that we are constantly learning more in order to be able to advise our customers about foreclosures, short sales, tax credits, deficiencies, etc.  For many of us, this market has been more fulfilling on a personal level than ever before because our services and ethics have never been appreciated or needed as much. 

We still want to help buyers and sellers who NEED our help.  If that’s you, then give us a call.

Why Are Designations Important?

Real estate is like medicine.  Neither is a static profession that once you learn it that’s all you need to know.  Both are changing daily.  You would not go to a doctor who got their degree ten or twenty years ago and never bothered to learn anything new since then.

So the same thing applies to real estate.  Real estate is ever-changing.  The real professionals in our industry are growing their skills and knowledge as the market evolves. 

For example, take the CDPE designation.  That stands for Certified Distressed Property Expert and in this market it’s probably the most vital designation to have.  One in eight homes in the United States is in some form of financial distress at this moment.

In the past, the average real estate agent typically did not handle pre-foreclosures, short sales and other complicated, financially distressed situations.  When they did have these situations, they had to rely on the advice of others on the process.  Now so many people are “upside down” on their mortgages that a good agent has to be trained and educated on how to help these owners.

A CDPE knows how to help a seller make informed decisions that can prevent foreclosure and minimize financial repercussions.  Knowing how to help a seller with a short sale, negotiate with the lien holders, and explain tax consequences to a home owner can make the difference in a person’s credit status for years to come. 

In medicine, when it’s serious, you call in the specialist you know has the training and expertise to cure you.  In real estate, it’s just as important to use the right specialist when your financial future is at stake.

Why You Should NEVER Try to Cut Your Agent’s Commission

Let’s look at commissions.  Unlike in most transactions in life, you only pay your listing broker a commission if the home sells.  If your doctor fails to cure what ails you, you still pay for his services!  But not in real estate.  You are only paying for a “cure”.

So why would you want to cut the commission of the person who is responsible for successfully selling your home?  If your doctor prescribed a treatment that cured you of your illness and did it quickly, would you believe he is entitled to a lower fee because he didn’t have to work as hard?  Maybe all the education and training and experience he put in before he ever met you contributed to his ability to cure you quickly.

You may say, “But I only want to cut the commission by 1%”.  That’s not really what you mean.  You mean you want to reduce the commission from, say 5%, to 4%.  That’s actually a 20% reduction in the total dollars.  Do you want to take 20% less for your home?

Don’t forget that the listing broker also has to share the commission with the selling broker.  After the brokers take their cuts the agents are paid.  Out of their part of the commission the agent has to pay taxes, Social Security, their private health insurance, marketing costs, their business expenses, etc.

You don’t want your listing broker to skimp on marketing for your home.  Nor do you want them to skimp on the commission for the selling broker by de-incentivising them.

Sure, there are discount brokers out there.  There are also discount doctors.  If you need life-saving surgery, will you argue about the cost with the doctor?  Then don’t entrust the sale of your largest asset to the person who is willing to discount the value of the service they provide.  You will get what you pay for.

Having Your Home Shown is Like Going on a Blind Date

Remember the dating years?  You reluctantly get set up and then you worry about what it will be like.  You wonder what they will think of you.  Do you look like what they expected?  So you spend a little more time dressing and primping than normal.

Well, your home is going on a blind date every time someone schedules a showing.  Just like on a blind date, you only get one chance to make a first impression.  Did you ever have a blind date smile, only to see food stuck between their teeth?  The same thing happens when a prospective buyer shows up and the outside of the home is poorly maintained.

A blind date that didn’t dress appropriately for the date may make you rethink the idea of going to a fancy restaurant.  A home that isn’t clean and in good repair may make the buyer begin to make mental price reductions.

More evaluation goes on while on the date, just as more evaluation of your home takes place on the showing.  But the bottom line at the end is the same.  Did the blind date result in another date made or were the final words “I’ll call you.”?  Did the showing end with the scheduling of a second showing or a contract or did the buyer just say “I’ll think about it.”?

If you really are looking for a relationship, or looking to sell your home, you take the same care and attention to detail in preparing for one as you do the other.