13 Things your Real Estate Agent SHOULD tell you

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I recently read an article in the Readers Digest April 2012 issue that was titled “13 things your Real Estate Agent won’t tell you”  and was shocked by some of the information in it.  The comments came from Real Estate agents in different parts of the country and was for home buyers and sellers.  Here is a summary of what they say agents will not tell you:

 

1. At open houses – most of the people that attend are nosy neighbors and won’t help sell your home

MY COMMENT:  While this is very true in most cases (in fact I actually send invitations to the neighbors!), you never know when one of those neighbors has a relative that would like to live near them and this could be the perfect home.  I always tell my sellers that they probably will not get that many serious buyers at an open house but it never hurts to try.

2.  Air Fresheners are a turn off to a lot of people

MY COMMENT:  This is pretty much common sense and it is something I tell all my sellers when we discuss staging their home.  Many people are very sensitive to air fresheners, perfume, carpet sprays and even candles and incense.  The best thing is to have some fresh baked cookies in the oven!  Who can resist those?

3.  Let buyers in that call at the last minute – they are often the impulse buyers.

MY COMMENT:  Why would you NOT tell your sellers this.  Although I have many sellers that will require a 24 hour notice or even a 1-2 hour notice, I always tell them that buyers may call at the last minute.  They may be in the neighborhood looking at other homes and spot your home and want to see it or they be a buyer that is in town for just the day and does not have 24 hours to  schedule and may need an exception to the rule. It is true that these buyers may be the one that ultimately buy your home and you need to be as flexible as you can when your home is on the market.

4. Don’t be offended by low ball offers.

MY COMMENT: I coach my sellers upfront that they can expect low ball offers almost every time and for them not to take it personally.  This market is almost a guarantee that buyers will shoot for the best deal they can get and they are not afraid to throw out a low ball offer and even an insulting offer to the seller.  The more prepared your seller is, the less impact when it happens.

5. A top producing agent may pass you off to a junior agent after you sign a contract.

MY COMMENT:  I am a one person show so you know exactly who you are going to get every time.  I think I would be a little upset with my agent if I was not told upfront that I would be passed off to someone else but with the formation of Real Estate “Teams”, it is a good question to ask.  If you want to work solely with the agent you hired, make sure you are clear before you sign an agreement.

6.  There may be an “admin fee” to cover brokerage administrative costs hidden in the listing or buyers agreement.

MY COMMENT:  I sit down with each and every client and I go through the agreement line for line so that they understand exactly what is contained in the agreement before they sign.  I also give a copy of the listing agreement or buyers agency agreement to them in advance of our “sit down” so that they have time to read it themselves and have an opportunity to have questions for me on things they need clarified.  Don’t ever just sit down and sign a contract blindly.  You never know what is in the small print.  BTW:  We have no Admin Fees at Exit Home Team Realty!

7.  Don’t skip the final walk-thru

MY COMMENT:  I cannot imagine an agent NOT telling their clients to make sure they attend the final walk through.   Especially in today’s climate.  Many homes are being vandalized and stripped of the HVAC units while vacant or the previous sellers may have left you a big mess that you will have to clean up, or maybe they were supposed to leave the refrigerator and now it is missing.  Once you sign that contract at closing and the deed is recorded – it is very hard to go back and fix things.  ALWAYS do your final walk through with your agent – I provide a great list to my buyers that help them keep track of what they should be watching for.

8. Watch out for sellers agents that will tell you your home is worth more than it actually is just to get the listing.

MY COMMENT:  This is part of the listing agents job to educate the sellers when they go to the listing appointment.  Of course the sellers want to hear that their home will sell for more but my job is to prove to them what the actual numbers are for their market and then show them the damage of sitting on the market for an extended time because the house is overpriced.  I guess the agent doing the overpricing is not going to tell you – BUT I WILL!

9. Houses with no furniture in them do not look larger.

MY COMMENT:  I always tell my sellers that a home will show better if it is staged.  Sellers need to remove everything they are not using at the moment (after all, you have to pack it up eventually) and make the home look as spacious and organized as they can.  I understand that you have to still live in the home but a cluttered home hides the features and an empty one does not show off the best use of space.  Work with your agent to make your home look the bEmma Mae Drive 035est it can before you put it on the market.

10. Clear off countertops in baths and kitchens

MY COMMENT:  Now why would you not tell your sellers this?  The kitchen is one of the biggest selling points in a home and it needs to be pristine. Buyers need  to see the amount of counter space available and they do not need to see your toothbrush!

11.  Check zillow.com for and estimate of values in your area but don’t lock on that number.

MY COMMENT:  The Zestimate is just an average of sales and does not consider the individual home or the features available.  The computer does not have eyes.  Use an appraiser or have your agent do a current Market Analysis of your local market to determine the correct value.  I make sure to tell all potential sellers this information, why hide that?  I would think a seller or buyer would want accurate information.

12. New agents may have relatives or friends as their references.

MY COMMENT:  This one is true and it is probably not likely that a new agent will tell you that they have no references.  We have all been a “newbie” at one time or another and sometimes, that agent may work harder for you than a veteran agent.  Do your homework and if you like the person, give them a shot.  Just make sure they have a mentor or Broker in Charge to help them and make sure everything is correct.

13. I can’t share the economic standing or ethnic background of people in the area or the local crime rate.

MY COMMENT:   You better tell them this if they ask the question!  You are violating Fair Housing laws if you discuss these things with clients but most don’t understand that unless you explain WHY you cannot talk about these things.  Let them know that you can direct them to the resources to find that information on schools, crime stats and ethnic makeup of the area.

 

When I work with buyers or sellers, I am an open book and I am more than happy to pass along all the information I have learned over the years.  Why hide things that could benefit you in the end.  Most of those omissions will come back to bite you in the butt later and I prefer to keep my butt in one piece!  In the end, most professional Real Estate agents WILL tell you what you need to know to buy or sell a home.  So if you are in the market for a home in Statesville NC, look me up…..I have nothing to hide!

Negotiating the deal! What to know BEFORE you place an offer.

Realtors_Care_Day

This article is an excerpt from my weekly buyer blast that I send every Friday.  I have been experimenting with other days of the week but you will receive it at least once per week.  I send out a List of area Foreclosed and Distressed Properties in the Statesville, Mooresville, Troutman areas of Iredell County.  I also include Charlotte and Catawba on occasion.  If you would like to receive my weekly article and Foreclosure listings, please SIGN UP on my website and I will add you to my list.  I will not call or bother you, just provide you with helpful, useful information.

Today I am out working in the community as a site captain for Realtors Care Day 2011.  Our local Realtor Organization will be working on over 20 homes from Statesville to Charlotte.  Over 600 Realtors will participate and help out our fellow residents that are unable to maintain their homes.  It is always a pleasure to see my fellow Realtors come together for such a good cause! 

You can keep up to date on happenings in Statesville by "liking" my Fan page on Facebook.  I try to post timely articles of local events, new listings, new businesses, market updates and much more. 

 

This week I would like to talk about the negotiation process.  Many first time home buyers are unsure of what happens when you finally find a home you like and want to make an offer.  It used to be a much easier process before the "foreclosure" and "short sale" era (as I call it).  Normally you would sit down with your buyers agent and look at area comps to find a good price to offer initially, decide on the amount of earnest money to deposit (this is your "good faith" money), set the proposed inspection and closing dates, decide if there are any other conditions you want to include, sign and present the offer to the seller along with your pre-qualification letter.

Here is a link to the basic process offered by REBAC (Real Estate Buyers Agent Council):
Negotiating Process for Buyers

Today, however, you need to know much more about presenting offers such as:

Is it a HUD house?  This process is completely different and involves submitting a bid online to HUD on their paperwork and adhering to a VERY strict timeline.  Your buyer’s agent will need to understand the different types of HUD home offerings, the required timelines and earnest money, any "escrow" amounts for repairs and type of finance programs. 

Is it owned by Fannie Mae or Freddie Mac?  These homes may offer specialized finance programs with other incentives and home warranties.  They will have their own bank addendums and instructions for submitting offers to them.  They prefer shorter closing times but are relatively easy to work with.

Is it a Short Sale?  These homes are much more difficult to work with.  The home has not foreclosed and the lender may agree to accept less than is owed on the home however, the process is painfully slow and may take 4-6 months to get an answer.  Please be sure you have an experienced agent before attempting one of these!  Your offer is submitted to the seller for acceptance first and then to the bank for approval, then the mortgage insurance company and then possibly Fannie Mae or Freddie Mac or HUD.  If there is a second mortgage on the home, it gets even more complicated.  Get an attorney upfront to do a title search and know what you are walking into.

Is it owned by another bank?  All banks will have their own addendums that will need to be signed after your offer has been accepted.  You need to be sure you read them thoroughly and know what you are signing.  It is a good idea to have your attorney read them over before finalizing them.
Here are some links from some of my past Blogs that offer additional information:

A few things to consider before purchasing a distressed property

03-10-2011 23:58:47 PM

I have been working with lots of buyers of foreclosed or distressed homes lately and wanted to give you some hints on how to make this type of purchase a little easier.  First, let’s talk about Short Sale Properties:  A … Continue reading →…»

How to Purchase a HUD home in North Carolina

02-10-2011 14:23:57 PM

How to Purchase a HUD home In recent months, there was a huge backlog of HUD homes that were held up for closing in NC and changes were made to try and streamline the entire process.  There are now three … Continue reading →…»

What is this new "Due Diligence" Fee in North Carolina and how does it affect me?

01-26-2011 17:16:00 PM

I know I will be explaining this question for a long time to come!  As of January 1st 2010 in North Carolina, we no longer have just the Earnest Money deposit option on the Offer to Purchase Sales agreement.  Our … Continue reading →…»

Using your IRA to invest in Real Estate

Ever thought of using your IRA to buy investment properties?

One stumbling block that many of the leads and inquiries I receive is the lack of finance options for investment property.  Many of these deals are cash buyers but investors often seek out finance programs to purchase one of the “great deals” out there on today’s market.  One option I would like to offer is using your IRA to purchase real estate.  Did you know you had that option?  Neither do a lot of people.  I had attended a training class a few years ago that gave me some great information on the subject and it has stuck with me ever since. I thought I would pass it along to you this week.  If you want an alternative to the stock market and would like to avoid financing an investment property, check out this link: 

Investing in Real Estate with your IRAj0402784   

Got you thinking yet???? 

Tom Lundstedt is an excellent real estate trainer and accountant and really knows his stuff.  I have his workbooks on purchasing and analyzing rental property and if you would like to look at his worksheets, let me know. I am happy to share (and I have permission to share with you!)  One thing you want to be sure of is this…that you have a good accountant that knows how to handle this this type of transaction on your tax return.  Make some calls and do your homework. 

There are alternatives to traditional financing, you just need the resources to find them.  Put that IRA to work for you today.