Tuesday, December 30, 2008

What Can We Expect For 2009?

We are very optimistic about real estate in 2009. The markets of the past few years have set this year up to be one of great healing and activity. The market slowdown of 2006, the crawl of 2007, and the economic roller coaster ride of 2008 all have served to bring Buyers and Sellers to their senses. We believe 2009 will be a year to stabilize, recover, and move forward.

Our reasons for optimism are plenty. We have the “Perfect Storm” Market for a Buyer. Interest rates are at a 37 year low with the potential for government-directed further reductions in the near future. There are many homes to choose from in most market segments and most of the deadwood, exorbitantly high priced properties, has been removed or is so out of touch with reality that it doesn’t confuse the market anymore. This is good for both Buyers and Sellers. The many overpriced listings of unrealistic Sellers previously served only to confuse other Sellers and cause Buyers to wait for the market drop. Well … the market has dropped, and most Sellers have adjusted their expectations to where they are closer to reality.

Entry level housing is currently available for payments that aren’t much more than rent with little or nothing down given the marvelous interest rates. Many first-time home Buyers are looking and acting right now before the market gets traction. They are delightfully surprised with what they can buy and how affordable it really is today.

At the other end of the market, the just, or soon to be, retired folks will soon be coming to grips with their stock portfolio losses, generally touted in the media at 40% for most of them. They are/will realize that the home they wanted to buy has also dropped that much percentage-wise, and is pretty close to the being the same percentage of their total net worth that it was when they panicked, picked up their marbles, and went home to wait and see what was going to happen.

While Sellers have gone through a tortuous 18 month steady decline in their home’s market value, for the Buyers their stock loss was “instant”, 30 days, or so. BAM! It was, of course, unbelievable. Then it was real … then really real. As they recover from their shock they will be ready to take action, and we believe real estate will be the preferred investment avenue of choice for those looking to mitigate their losses and to protect their economic future.

Our Advice: Real Estate prices are generally around where they were in 2003, and the stock market is around where it was in 2003 - they are about on par with one another. The entire world is working to remedy the economic situation. With that much positive intention it only makes sense that the collective consciousness of the Nation, now one of panic, denial, and inactivity, will change to one of positive expectation and decisive action. As it does everyone will breathe a little easier and the fun and joy will return to our industry.

This is the year of the solution and you can be a part of it. The rebound will come later, but we look to a recovery in 2009 that will establish a new foundation for our market. Get off the sideline and into the game – its where the action is!

When it comes to choosing professionals to assist you with your real estate needs…
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Sunday, December 28, 2008

My Agent Keeps Telling Me To Reduce My Price … Can’t She Sell Anything?

Your Agent is continually talking to you about lowering your price because the market keeps dropping and your home clearly hasn’t sold. Quit the ostrich act! It isn’t your Agent that is necessitating the downward price adjustment - it takes a willing Buyer and a willing Seller to make market value. When there are many listings and few Buyers, the market value declines … supply and demand. It isn’t your Agent’s lack of selling skills or incompetence (we hope) that are causing your home not to sell if it isn’t priced right for what you are offering.

Agents don’t make the market … but the good ones monitor the variables closely to enable you to stay current in the market such as: interest rates; the economy – local, regional, National… even Global today; the inventory – existing and new product coming on line, the overall Market activity, Buyer demographics; other investment opportunities or vogues; changing area amenities, i.e.- increase in medical services in the community; and many more.

When the market runs up some Agents don’t have their Sellers make adjustments. When the property sells the Seller doesn’t know how much was truly left on the table. When the market drops it is evident to all if a property isn’t priced right – the property sits on the market … and sits…and sits. Properties that are priced right are for the most part selling. The price is up to you, the Seller, and what a Buyer is willing to pay for what you have.

Buyers today want a great buy … your Agent can’t control that. She can tell them how your home stacks up in the Market, but she can’t prevent the “lowball” offer that so offends you. She can tell them why your home is priced so well, but she can’t overcome their “media paralysis”, their fear to act because of what others have told them they should fear. Some are so afraid by what they see and hear that you could give them your home and they’d be afraid of “the catch”.

Our Advice: Your Agent cannot overcome the collective consciousness of our society which today is in such a panic that many people have simply put their lives on hold. She can, however, be realistic, positive, energetic, and attentive to your needs as she approaches her fiduciary duties daily to get your home sold by finding the good smart Buyers that are out there today taking action. Good agents can help you save, or make, money by helping you make good decisions. That can be interpreted for some Sellers as minimizing their ultimate loss. It shouldn’t be a test of wills between you and your Agent – you should be working towards a common goal – selling your home for the best possible price in a reasonable time and protecting you from problems.

Money seems to be ready to flow back to real estate from stocks given the great real estate prices, incredible interest rates, and brilliant future of real estate. As the money flows, prices will gain traction and things will turn around. This is now the peak opportunity for Buyers to make their best buys, and for Sellers to maintain their optimism about their home selling. Enjoy it – these are the Good Old Days! When it comes to choosing professionals to assist you with your real estate needs…
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Thursday, December 25, 2008

51 Comments on The Cheapest Trick in the Book!

Our last posting produced many comments from our associates across the country, here is a sampling of their response.

51 Comments on The Cheapest Trick in the Book!

It is so embarrassing to read that agents still use these old, old tricks to get a listing. Of course, I wonder why any owner would fall for that line, "I have a buyer, but. . . ", but, they still do.
The more things change, the more they stay the same. I've heard of that old trick since I've been in this business.

I remember when I had a house listed for sale in MD in 2005, I was approached by just about every sleezy opportunist agent in the county. The listing for my house disclosed that the owner was an agent/broker. Apparently they didn't read that part. I just referred them to my listing agent.

Thanks for writing about his subject. Perhaps it will make a few agents think twice about using such disgusting tactics. TOTOH, it could give some ideas.
Oh well.

12/18/2008 05:05 AM
Lenn Harley Homefinders.com MD & VA Real Estate

Thanks for sharing with us - great advice ----
12/18/2008 05:29 AM
Norma J Elkins Realtor Elkins Home Selling Team ( Exit Triple "E" Realty)

They should lose their license for such actions. Why regulate a profession if you don't intend on weeding out the bad ones.
12/18/2008 05:41 AM
Greg Bell (Bell Inspection Service)

This is a great topic to write a post on. I recently went on a listing appointment where the 1st agent said the home would sell for 760,000 and I thought it needed to be priced at 650,000. Imagine the look on the seller's face. The sellers got an appraisal and called me back & said it appraised at 650,000. I did get the listing.

It doesn't pay to be dishonest in this business & we should work to get our seller's homes sold not list a home to improve our inventory in the market!
12/18/2008 05:50 AM
Laura Karambelas-Chicagoland Real Estate (Baird & Warner)

"Sharks don't feed on Sharks", that's what an attorney told us long long ago. Most of the time it's more trouble and more work than it's worth to report these slugs. Add to that , its a lot of negativity and who needs that in this business climate?

12/18/2008 05:53 AM
Jim Valentine (RE/MAX Realty Affiliates)

Whne I worked at a franchise office I watched an agent making those calls from the office. His line was "we just sold the home at so and so address and we have still some ready buyers looking in that neighborhood".
What a crock
12/18/2008 05:53 AM
Fred Pickard Innovations Realty Inc

We have that kind of situation. We are adjacent to an "Upscale" Resort community just 15 Miles west and up the hill, "Lake Tahoe"- you might have heard of t. Some of the Agents up there like to tell sellers in the valley below that they are a better choice as a listing agent because they are accustom to deal with the high end buyers.
Funny ... the MLS statistics show that most of the upper end sales in our market are NOT orginated from those Brokers.

12/18/2008 06:01 AM
Jim Valentine (RE/MAX Realty Affiliates)

Jim, I had one here recently called the seller and you know the rest. I explain to my seller what should happen next time if the agent call's. Well you know the agent called again. I then called her and told of the problem I had with these types of actions. You know she called again to the seller. Now we are handling it between brokers. If she does it again it will time to call the Board. If you have a offer bring it so we can all make money and sell property.
12/18/2008 06:19 AM
Frank Rubi -Louisiana Real Estate- (7824 Real Estate of Louisiana, LLC.)

It is agents like this that bring a bad name to other ethical agents. Good post.
12/18/2008 06:51 AM

Jim, the list of scams pulled by some Realtors is a long one and unfortunately it only adds to the bad image of the good Realtors. I think every Ethical Realtor unfortunately faces these scam things all to often in their career, not only have I received the calls you mentioned in your post but I've actually been out on appointments and been told these things by Sellers. The problem for me has been that since they don't know me yet, they tend to believe the b*ll sh*t from the other Realtor(s) and many times they list with them.

Do I get the deal after the Listing Expires, usually not since the Seller is either embarrassed to contact me when they expire and they list with someone else or their house eventually went under agreement during the first Agents time.

12/18/2008 06:52 AM
Christopher Bonta,Realtor/ Integrity and Honesty (Better Homes &Garden/Masiello Group)

Posting this is a good thing.
Shining the light on unethical practices helps all of us.
Educating the client and setting expectations helps a lot.
12/18/2008 07:11 AM
Erby Crofutt, the Central Kentucky Home Inspector, Lexington KY (B4UClose Home Inspections & Radon Testing (www.b4uclose.com))

Jim - Some agents will do anything to get a listing; including the unethical. The consumer needs to be aware of these deceptive ploys and be wary of agents that use them. Unethical agents give everyone a bad name.
12/18/2008 08:28 AM
Jon Wnoroski, Summit County Realtor (Geneva Chervenic Realty, Inc.)

It's very interesting that this is such a common problem and that its experienced by agents all over the country. We should all be working to clean up our industry. We'll admit,we have been lax in following through with this in the past. Maybe if we all took a firmer stand we could make a difference.
12/18/2008 09:37 AM
Jim Valentine (RE/MAX Realty Affiliates)

I would rather have 0 listings than a listing that was owned by a client who felt like I cheated, lied, and basically hated me!

I may satisfy your transaction and years down the road you forget my name, but remember "He was good". But a disgruntled client will remember you always. Somebody will ask them for the name of an agent and they will reply "I do not know of a good agent, BUT I can tell you NOT to call (insert name here).

12/18/2008 10:00 AM
Chad Baird (Re/Max Spirit)

We see this around here. Sometimes agents use the one party listing to segway into an exclusive right to see. Other agents may suddenly develop a run of buyers to show a specific home to a week before the listing expires, just to leave cards on the counter a couple of times just before expiration to get a food in the door for a listing.
12/18/2008 10:34 AM
Brenda Carus (Re/Max Towne Square Realty)

Chad - we agree with you! Our reputation and good name is much more valuable than a 6 month listing contract.

Brenda - How about this one! The agent that writes a note on the back of their card to the Seller while on MLS tour saying, "Call me when your listing expires." Ever had that happen? We have.
12/18/2008 11:13 AM

by Jim Valentine (RE/MAX Realty Affiliates)

Yes it is an old trick, unfortunately in this market sellers are desperate sometimes. It like preying on seniors. It seems that those the most in need get the worst treatment. Usually, that type of agent only gets business in a dishonorable manner.
12/18/2008 12:59 PM
Richard Stabile Bergen County New Homes Builder Realtor (REMAX real estate associates)

The sleaziest one happened to my mother. About a week after my Dad died a Realtor called my Mom and said she had heard that her husband had recently passed away and wanted to know if she was ready to put her home on the market because it was to big for her to take care of on her own.
12/18/2008 01:07 PM
Denise Gray (Coldwell Banker Stucky)

Thats some of the lowest BS I have ever heard.......I would have to bring this up to the board...
12/18/2008 01:15 PM
Scott Stulich (Home Selling Assistance Platinum)

Could be an ethics violation... Realtors MUST be honest and ethical with all parites... does not sound like they were to me???
12/18/2008 01:31 PM
Mark Ryan, Broker, CRS, ABR (Mark Ryan Group / Re/Max Victory)

Where do these agents learn these techniques? From brokers with less than stellar standards...
12/18/2008 03:10 PM
Gary Waters -Real estate agent Viera Suntree Melbourne and Rockledge FL (Century 21 Baytree Realty www.moving2brevard.com)

I don't understand that logic. If you really have a buyer... I (as the seller) am happy to sign a contract that gives you a co-operative fee, if you sell it... in fact I'll sign a "one time showing" before you show it.

If you "need the listing" in order to sell it to your buyer (in order to double side it)... I say... Sayonara, Heigh-dee-hoo, There's the door, See ya later, and all sort of other ways to say "hit the road".
12/18/2008 03:13 PM
Alan May Coldwell Banker, Evanston, Realtor® (Evanston, IL)

Yep, it's used a lot around here also. We don't do a lot of buyer agency in these parts, but if I have a buyer for a FSBO, or expired listing, we have a conditional listing agreement for the buyer only that we can use.
12/18/2008 03:24 PM
Gabe Sanders, Stuart Florida Real Estate (Premier Realty Group)

Thanks for pointing that out. If there is one thing I teach my agent clients, students and practice myself with prospects is to NOT use that old hand-me down BS. Gone are the days of slick car salesman tactics.This was really a great post to read.....confirmed my thinking exactly.Good work!TD
12/18/2008 03:30 PM
Tamara "The Real Estate Therapist" Dorris (Top Producing Techniques)

There are a few agents in our town that try that trick. It always comes back to haunt them, but I think it makes us all look bad. It is so much better and easier to be honest!
12/18/2008 03:55 PM
Jean Groesbeck - Jean Groesbeck & Assoc. REALTOR, Assoc. Broker, e-PRO, ABR, ASP (Coldwell Banker Deception Pass Realty)

No matter how much we hate it, there will always be a few agents out there using deceptive practices and making the rest of us look bad. Listing a home higher than others would have, "buying a listing', happens all the time but hopefully sellers will be smart and choose the best agent not the one who would price it the highest.
12/18/2008 03:56 PM
Dan and Amy Schuman,e-Pro,ASP (Keller Williams Realty Greater Cleveland)

Dear Jim,

Great article!

12/18/2008 04:34 PM
Barbara Delaney (Park Place REALTORS, Inc.)

Not only what you said, but it never amazes me how some agents that work "Expired" listings also have a buyer.

If I have a listing that's about to expire, and the seller chooses not to re-list with me - I prep them for the "Expired" calls.

I suggest that they ask the calling agent where their buyer was yesterday.
12/18/2008 04:59 PM
by Larry Bergstrom

Hi Jim - For as long as I have been in the business (22 years) this has been going on. It is kind of incredible though that sellers still fall for it.
12/18/2008 05:04 PM
Bill Gassett Metrowest Massachusetts Real Estate (RE/MAX Executive Realty)

We had a seller contact us in a similar situation where they felt they were being pressure to see to the buyer way under market. The seller were right and we listed the property at market value and the buyers vanished.
12/18/2008 05:19 PM
Richardson TX Realtor Mindy&Jay Robbins Richardson Texas Real Estate Specialist (Robbins Real Estate Group www.teamrobbins.com)

Complaints should filed to your local board about agents like this, especially the one going to the seller when the property is still listed. After a few agents are put in front of an ethics committee things like this would stop in a hurry.

I know we can't be bothered to file an ethics complaint, then expect this kind of behaviour to continue. If you aren't willing to do something about it maybe you are part of the problem.
Think about it

12/18/2008 05:34 PM
Alan Brown (Coldwell Banker Montrose Colorado)

This was a great post, I've enjoyed reading the other comments and their experiences too. It's just amazing what some agents will do for business. I live in a relatively small community and you'd think that some of this behavior would come back to haunt them. Sorry to say that some of the "big guns" here practice some of those techniques.
12/18/2008 05:39 PM
Erika Rogers (St. George GMAC St. George Utah)

Before I was a realtor, at the hight of the market, I use to get "the call" that went something like this.

Hi, this is so and so from XYZ Realtors. Is this ______________.
"Yes, how may i help you?"
"Well Mrs. _________, the purpose of my call is to find out if you were thinking about selling your home now or in the near future. You see, I'm working with this nice, young couple and I promised them I would call the neighborhood because well, we look at a lot of houses and they haven't found one that they like to buy. Have you thought about selling now or in the near future?"

I mean in this business, you have to really mean it to make this call. But its dialogue that the gurus teach. I've heard it on tapes and it gives people false hope.
I mean when I got the call, I was excited. It meant to me that my neigborhood was desirable. For a sec, I thought about selling. Then, I reminded myself, I wasn't looking to move.
We are amazed that people still fall for it. but why won't they? If they didn't fall for it, they wouldn't trust us, which means we are burning a bridge when we list and don't bring in any buyers. We burn bridges when we fail to do the promises we made in general.
Good Post. It makes me think some of the gurus need to change the dialogues/scripts they teach.

12/18/2008 05:41 PM
Audeliz Perez (Weichert, Realtors)

Early on in my career I lost a listing to an agent who did this....I now know that it is the oldest trick in the book...back then...I had no idea how to combat that.
12/18/2008 05:49 PM
Konnie MAC Northern Virginia Real Estate (Konnie McKee )

We are in a small town market as well and you would think the word would get around, but we too have expierenced a "big gun" who has used these improper techniques for years.
12/18/2008 06:31 PM
Ron Spanton (RE/MAX Real Estate Associates)

Jim- Well some people just never learn that this is so tacky and do not understand that sales is about relationships. They never get ahead for long. We had one agent tell our seller, your agent has not sold your house in over 560 days! Well, she was so dumb she did not even know how to read the mls on this 2 million dollar expired listing, BTW- he relisted with us today, he could not believe their dumbness. He told her, apparently you have not studied my property before you called me, my agent had it for a 180 days and in this market, it will take a while to sell a property like this. Katerina
12/18/2008 06:39 PM
Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.)

I closed on a home today after another agent pulled the same stactics. After having it listed a few months, I took her the offer and had to convince her it was not a bogus contract! These type of listing agents will not be forgotten. Honesty is always the winner!
12/18/2008 06:46 PM
Kay Van Kampen, Broker, Springfield Missouri Real Estate (RE/MAX Solutions)

It amazes me when I hear stories like this. How do these characters get their license in the first place? Maybe we should have some sort of background check.
12/18/2008 08:33 PM
Darla Jensen (Edina Realty)

These really are the oldest tricks in the agent's books. Good blog.
12/18/2008 08:56 PM
Barbara S. Duncan ABR, CRS, GRI, e-PRO Searcy AR (RE/MAX Advantage)

Alan in Colorado - Yep! You are right ... we deserve what we get if we don't police our own industry! We say that and we don't always do that! Sometimes it's easier to let the bad penny slip away. That doesn't mean it's right ... that just means it easier.
We have notoriously obnoxious Agent in our market that every shudders when he enters the room ...we look the other way but don't step forward and deal with him because no one wants to get his slime on them. Right ... NO! Easier ... Yes!
Who makes that call? It happens alll the time!
12/18/2008 09:02 PM
Jim Valentine (RE/MAX Realty Affiliates)

I have had a buyer who wanted to view a home that was off the market or newly expired, rather than take the buyer to see the home, I asked the seller to sign a ONE day listing with me before I took the buyer into the home. because I have been taken advantage before from the seller trying to negotiate me out of the deal when I brought them the buyer. NOT COOL.
12/18/2008 09:32 PM
by sonny kwan

Maybe Ethics should be taught more often! I can't believe some of these tricks. I was listening to an older set of guru tapes and they were doing some techniques that I thought were fairly close to being unethical and just chose to overlook it.

I think we should all report brokers who pull these dirty tricks, especially when the house is under contract. When realtors violate ethics, we need to hold them accountable because it makes our whole industry look bad!

A background check is required in Oregon, but that doesn't stop people from being unethical, but it is a good idea- some states don't require it?

12/18/2008 09:40 PM
Kim Hamblin (Bella Casa Real Estate Group)

With the prospect of loosing your license over this I cant see anyone taking that risk doing something so unethical. I might be naive but I cant see anyone doing this, These agents have guts.
12/18/2008 10:19 PM
Wayne Warshawsky (RE/MAX Four Corners)

Actually even with the possibility of losing the license this does not surprise me at all... One, most likely wont get caught... Two, desperation makes people do strange things... sad but all to true
12/18/2008 10:45 PM
Mark Ryan, Broker, CRS, ABR (Mark Ryan Group / Re/Max Victory)

I hate sleazy tactics. It gives us all a bad name.
12/18/2008 11:14 PM
Overland Park Homes & Real Estate:: Michael Russell (Overland Park KS Realty Executives )

Jim: I have heard this over and over for the past 10 years in this business.. I HATE it when I hear someone mis-leading a home owner in hopes of getting the listing..
12/18/2008 11:40 PM
Roland Woodworth "Clarksville-Fort Campbell Area Realtor" (Exit Realty Clarksville)

Some agents are the products of the brokers who teach them. We have seen this over and over. These agents "grow uo" in the business (so to speak) learning these shifty habits and really don't know any better because that is the business model they think is normal.

12/19/2008 01:27 AM
Jim Valentine (RE/MAX Realty Affiliates)

Oldest and cheapest.....and one that was taught by the first brokerage we were "parked" with....THEN they will list with you....and THEN can you sleep at night ?
12/19/2008 06:21 AM
Sally & David Hanson Realtors WI Residential-Commercial-Short Sale (First Weber Group)

Oldest, cheapest and still used on a regular basis...sometimes by really successful agents. I can look out my window and see a house whose listing was obtained by that method 6 months ago, no buyer and still overpriced! Lisa
12/19/2008 05:53 PM
Lisa VonBargen GRI, CRS, e-Pro, NAPP (The Yellow Mailbox Real Estate Services)

We had one like that, the seller's elected to list with the agent who told them what they wanted to hear, not the truth. Now, one year later, they are still in the house, it's worth even less that it was a year ago. They weren't able to go on with their moving plans and have tlost the opportunity they had to buy a great property in the community they wanted to move to ... where's the sense in all that?
12/19/2008 06:04 PM

We have thought about this situation several times. What to do? Contact the sellers who rejected us before and try and revive the business relationship once their "BAD" listing expires? The sellers need us now more than ever. Will we look silly or will they just reject us again because they made a poor choice the first time and now they want to validate their last decision? What is the right thing to do?

One seller called us and said, "OK ... you were right! Will you list my property again?" That doesn't happen very often.

12/21/2008 06:37 AM
Jim Valentine (RE/MAX Realty Affiliates)

Thursday, December 18, 2008

An Agent Told Us She Had a Buyer So We Listed Our Home With her … We’ve Never Seen The Buyer!

We recently received a call from a property owner in our community who had an unpleasant situation occur with another local agent. The agent told the property owners that she had a buyer for their property but needed to have a listing to protect herself before she actually showed the home to the potential purchaser.

Our response … You are likely the victim of one of real estate’s oldest and cheapest tricks. An unscrupulous agent will use this ploy to get you to list your property. An agent with a serious Buyer that has an interest in your home will either have a Buyer’s Broker Agreement with the Buyer, or will ask you for a One Party Listing for protection, but an extended Exclusive Right to Sell Listing need not, and should not, be a condition precedent for such a showing.

Understand, too, that such a showing does not mean you must list with that agent. You should evaluate your listing agent in the conventional manner – considering their production, the type of property you have and the type of property the agents sell, the agents’ willingness to provide customer references from recent transactions, how you generally feel about the agents and their business morals, values and practices, and these days … are they full time agents?

Another old trick is to list at a high price, higher than all the other agents said they could get you, and then beat you up week after week for a price reduction. Between their incessant pressure, the lapse of time from the listing date with no offers, and your increasing frustration and motivation to sell, you will begrudgingly accede to the reality of the market value of your home and reduce your price by either a listing price reduction or accepting a lower offer. In the interim you lose time and experience unnecessary frustration. You are truly a victim in this situation and you’ll never know it.

Our Advice: This is a challenging market that needs competent professional services from professional real estate agents, not cheap trickery. With many Sellers under pressure to sell, these unbelievable gutter tricks have resurfaced lately.

One agent recently called the Sellers of a property that we have listed … properly listed with a sign, with brochures, in MLS, in our ad, and has been on the MLS tour! … and told them she had a Buyer for their home but needed a listing. She was actually so bold as to leave a message on the Seller’s work phone at his office. The seller called her back, reminded her it was listed, and even offered to pay her a bonus to bring her “Buyer” to boot! He asked her to call us and arrange a showing … we are still (two weeks later) waiting for the call.

If its time for you to sell be sure you work with one of the many great professional agents in the area, not one using old “tricks”. If they trick you now to get your listing for their benefit … what do you think they’ll do when it comes time to sign a sales agreement … when it’s your money on the line?! We believe they’ll “trick” you then too, not always considering your interest in the consequences of your selling decisions, rather only thinking of their gain in the situation. Most agents will treat you courteously and professionally, but it is important to be aware of the predators and their ploys – “forewarned is forearmed”.

An agent approaching you with a Buyer – whether you are a FSBO, or it is unsolicited – can be a good thing. Pay attention to their approach and the representation of the parties. Are you being properly represented? It can and should be just fine – just be aware. When it comes to choosing professionals to assist you with your real estate needs …
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Wednesday, December 10, 2008

What Will A Low Rates Economic Stimulus Program Do For Me?

What Will A Low Rates Economic Stimulus Program Do For Me?

There has been talk out of Washington, D.C. lately about offering Low Rate Fannie Mae and Freddie Mac real estate loans to stimulate the economy. The banter has centered around the idea of 4.5% interest rates. That certainly will initiate action, but one must look at the situation realistically to ascertain how it will affect you.

There are no actual details now as there are no programs, its just talk. Some ideas have been floated, and it is important to know the limitations that are being considered for this program if you are basing your immediate real estate plans on it. Re-fi’s are presently excluded, you won’t be able to refinance your existing higher-priced loan at that low rate. In fact, there is talk that it will only be for first time home Buyers.

Regardless of who can qualify, what does it mean for those who do? Here are some examples to illustrate in dollars what the percentages mean to a Buyer: A $200,000 loan at 4.5% would cost $1,013 monthly. Just a few weeks ago loans were around 6% and that same loan cost $1,199, or $186 per month more! Another way to look at it, if you qualified for the $1,199 payment, and rates go to 4.5% you can buy $36,655 more house if you are so inclined.

So it sounds like a good idea to wait for the low rates, right? Well… maybe. Rates are really pretty good right now. We had a customer lock in a loan this week at 5.2%, or just $84.85 more monthly than the 4.5% rate would cost. Is it worth the wait to see if: 1. The lower rates do, in fact, materialize, 2. You qualify for the program(s) they offer, and 3. The property you want qualifies for the program(s).

Our Advice: If the real estate loan economic stimulus program becomes a reality, and you qualify, it is important to remember that there are people just like you out there that will also benefit. That means you will probably have competition for the home you want to buy since most of the first time home Buyers will be in the same price range that you are in, $120-300,000. That is already a very active segment of the market in which homes that are priced right are selling, some with multiple offers. The Rate Stimulus program will not only generate additional buying competition, it could make owners “proud” of their property to the extent that they adjust their price upwards. That is part of the intent of the program, to stop the real estate price freefall.

Prices and interest rates are great right now! If you are considering buying work with your agent to identify your true wants and needs, and what is available in the market for you to buy. You will likely be wonderfully surprised. After that… take action! Don’t wait for something that might not be forthcoming – control your own destiny and future emotional and financial happiness. When it comes to choosing professionals to assist you with your real estate needs…
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472.

Monday, December 8, 2008

We Don’t Want To Pack During Christmas … Should We Stop Showings?

Your moving date is a negotiable component of your sale, and can be adjusted according to your Holiday plans … within reason. It is unlikely that a Buyer is going to try to move in before Christmas unless a house is vacant. A contract providing for a 30 day closing will have you moving in mid-January. Work with your agent and the Buyers on an acceptable move-out date. You can close escrow and move out later with the cooperation of your Buyer, or negotiate for a longer escrow. Candid discussions between the parties on “humanity” topics such as this usually result in a reasonable outcome.

If you have the opportunity to sell in this market we highly recommend that you work with your potential Buyer even if it means being inconvenienced. There are Buyers buying in this market, and they are driven by three things – price, price and price. If your home is priced to sell, and you have a serious Buyer, this might be the Christmas that you don’t put up the lights. If your sale is hung up on one item, i.e. the occupancy date, consider the benefits of selling now versus enjoying the perfect Holiday and waiting indefinitely thereafter for another offer. Caveat – it is not a good idea to let your negotiations get down to a single item

regardless of what it is. If the moving date is the only item of contention in an offer that you are negotiating, you must have a great offer. Look at the offer in the context of the whole, not a single item. Keep an overall perspective of your wants and needs when considering the offer.

Buyers will be in the area for the Christmas Season to visit family, ski, or just plain look at houses during their time off from work. If they are looking at houses during their vacation they are usually quite serious about buying. They are taking time from their recreation, or the family members they are visiting, to look at property – that is a good level of commitment. Just the fact that they are looking should reassure you that your time and effort of welcoming them to your home is worthwhile … and it is very much in keeping with the spirit of the season.

Our Advice: Buyers looking at homes this time of year are usually very considerate when entering your festive family atmosphere. Homes rarely look better than this time of year – spruced up, decorated, full of good smells and treats. The energy is positive and the home in its most alluring condition. Welcome Buyers as you would any other friends and family, with a cookie and a smile, and they’ll think better of your home than they will of others that lack the positive emotional impact viewing experience of your home.

Embrace Buyers this time of year. They are investing their Holiday time to find and buy what you have. Show it to them and enjoy the resulting Christmas present…a wonderful offer with terms you love!

When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com Visit our website at www.carsonvalleyland.com .