It's a buyer's market ...To that, I say "really? who told you this and do they even know your set of circumstances better than your own Realtor?"

Everybody thinks it's a buyer's market. I cringe when I here a buyer say that. As a Realtor I wear two hats because I represent both buyers and sellers. Working different sides of a real estate transaction is what makes me a well rounded agent.  I can be objective at all times.  It's not that I don't fight for my clients, but I do help them to put things into perspective. 

One of the biggest misconceptions today is that this is a buyer's market. I have heard it over and over, from buyers of course.  While in preparation of making an offer and through negotiations it almost always comes up. 

"It's a buyers market" my client will tell me and that's when I have to stop and take a big deep breathe. They do say patience is a virtue. I have only so much patience when it comes to other people giving my clients advice. But, I realize that sometimes it's not just well-meaning family or friends who know nothing about the real estate business trying to interfere, but perhaps it's the media hype and those conflicting news reports which are always sending out mixed signals. Real estate consumers don't know what to believe anymore and that's why they need to trust their agent to educate them.

Now, don't get me wrong. I am not disputing reports that it's a buyer's market. It certainly is - IF you are a "well qualified buyer" and IF you are realistic about home values after I have provided all the information and market statistics to help you make an informed decision.

This past summer a lovely couple I had been working with submitted four low-ball offers and insulted each seller to the point that nobody would negotiate much with them. Even after providing them with a wealth of information on recent sales of comparable properties they tried anyway to find a seller who was desperate enough to take 15% less than asking price in a market where homes are selling within 5% of the final list price. It was an "I told you so" situation, although I know better than to use that phrase. We finally had successful negotiations on the 5th attempt, and only after the buyers grew reasonable enough to understand that the kind of houses which appealed to them were not owned by financially distressed or desperate sellers and they would be hard pressed to find a homeowner willing to just give their home away at far below market value. I had to explain that if a seller would even consider such a low offer, he or she would first lower their price substantially just to see what other opportunity is out there in the pool of buyers who are shopping at the lower price point.  

When another hopeful first time buyer tried to remind me that "it's a buyer's market" I had to inform her of the reality of her financial circumstances. A buyer with very little down payment money requesting a large seller's concession to cover closing costs has very little leverage even in today's market.  In a declining market, few sellers want to face the burden of whether or not their house will appraise by the bank at an inflated price which includes a credit to offset a shortage of funds on the part of the buyer.  If given a choice between a buyer who has a substantial amount of money down and can cover their own closing costs, why would a seller take a chance?

Is it really a buyer's market? That depends.  Be  objective ...put yourself in the seller's place.

In both of the examples above, I was working with well-educated buyers who just were just not well schooled about real estate. It's easy to be swayed by news reports and fantasize about home-ownership opportunities. There will always be well meaning individuals, family, friends or casual acquaintances who give unsolicited advice and plant a seed that "it's a buyer's market" - and buyer's listen without ever realizing that sometimes things are not always as good as they sound. And, of course during all the discussions of discouragement over the process of buying a house, these buyers never let on to their family and friends that maybe their expectations were just too high or that they have very little money to make it work. Nope, the hard working Realtor is usually the scapegoat because few buyers would ever admit that the real reason for their frustration is that they need a reality check.   

It's only a buyer's market if the buyer is not presenting too many challenges because their idea of buying is more of a fantasy than reality. Otherwise, the seller is in the driver's seat - especially if they are not desperate to sell.

It wasn't soon after I moved into my current home twelve years ago when I began thinking about downsizing.  I was still in my 40's then. During my adult life up until that time, I kept wanting more and more and MORE. When you're in your 20's and 30's it's easy to believe that the only way to really measure success is by the size of a person's house or the type of car they drive. 

I purchased my first home at the age of 23. By the time I purchased my 5th home in my late 40's, I still imagined one more house one day that would be BIGGER and better.

Then the heating bills arrived. And the tax bill followed. We purchased our home that year after our firstborn had entered her first year of college. Still, there was one child left at home and due to my husband's business travel he was only home part time.

Soon, I was almost solely in charge of maintaining a home after many years of having a my helpful daughter around to pitch in and help from a supportive husband who always pulled his weight when it came to household chores. 

I soon realized what a mistake it was to want a bigger house, and soon instead of dreaming of the next house being BIGGER and better ...I began wishing for a smaller home with maybe more whistles and bells. I realized that smaller means less to furnish and decorate, and less space would equate to a larger budget for upgrading. I liked the idea of having less to maintain, less space to heat and paying LESS in taxes.

Recently, my first time buyer clients were disappointed to be outbid on a starter home that needed a lot of work. And, while I hated to be the bearer of bad news, Realtors will always say that everything happens for a reason. I didn't have the heart to tell them that maybe they were biting off more than they could really chew. Finally, w found another house with a minimal to-do list. It was smaller. During the process of putting the deal together, I mentioned how I was very happy with their selection. I was pleased for them that they were getting a better maintained home, although I knew they were so lured by the idea of having MORE space and an extra bedroom. I don't know, maybe I was trying to justify how things worked out and ease any remaining disappointment. But, I felt assured when the wife smiled and shared with me something her sister told her - "smaller house, less to heat"  ....Exactly!

In this part of the country, it appears that mostly what is selling right now are the smaller and more affordable homes.  Perhaps small and simple has become the new trend in housing. Goodbye McMansions!

Country living in the heart of the Hudson Valley. Sun-lit and immaculate period home with a beautiful first impression welcoming 40' wrap around glass enclosed porch. Boasts spaciousness throughout. Hardwood flooring, eat-in kitchen, formal living & dining areas, wide open family room with gorgeous stone fireplace. The massive sized master suite provides a nice retreat. Many amenities include a 20x40' inground pool with adjoining screened cabana, a partially heated 4 car garage and large separate 1000 SF barn which can accommodate up to 6 more vehicles or heavy equipment. Ideal for car enthusiasts, boat owners, contractors, artists, industrialists – so many possibilities. Situated on rolling manicured grounds with beautiful perinneals, trees and a pond. Circular driveway provides easy access to Rt 9G. Needs some work. Anxious owner, relocating – present all offers. $300,000.

Google me, Google my competition.  If they cannot promote themselves nearly as well online, then chances are they have not embraced technology enough to be promoting their listings effectively.  Many agents still shy away from social media. I have had other brokers and colleagues tease me about being on Facebook too much. Imagine that.

Facebook, Twitter, Linkedin - I'm everywhere, all the time.  It doesn't mean I am sitting around with too much time on my hands and not working out in the field. No, not the case.  Most of the time I'm updating my Facebook status or tweeting from my smart phone while briefly stopping throughout my busy day as a Realtor.  

And, let's not forget Active Rain, you found me here somehow. Google?

Most Sellers see the value they are getting when they select me as their listing agent. My seller clients don't tease me.  They love that I am making every effort to promote their properties and going the extra mile.  After all, who wants to settle for mediocre?

Have my online activies paid off?  Well, my local newspaper found me recently.  And today I was featured on a front page article in the real estate section of the Sunday paper.

Title: Social media have big role in real estate

Here is the link to the article:  http://fb.me/W6ZGcxyJ 

http://www.poughkeepsiejournal.com/article/20111016/LIFE07/110160339/Social-media-big-role-real-estate

I was quoted in the last section of the article as follows: "I blog and use social media a lot, and it accounts for about 65 percent of my business."

"When I promote my listings online, my seller clients just love to see their homes showcased with all the photos after they have worked so hard to get things 'market ready,' and I get many more buyer inquiries these days than ever before"

The article also quotes retired real estate agent turned motivational speaker James Goddard who was the top agent in the state of New Hampshire for three different franchises during his real estate years.

"While a number of real estate agents already take advantage of social media platforms to grow their businesses, most do not."

Why not?  Well, maybe those are the agents who are teasing people like me - they think it's pointless.

Seriously, I wish I could have seen their faces when they saw the article this morning and realized that my online activities ARE paying off in a big way.  Who will you hire to list your home?  Go ahead, google me ...and, then google them!

CAROL CULKIN, ABR, SRES  (845) 430-6543         Helping Dutchess County Residents Avoid Foreclosure
Associate Broker,                                           Helping Dutchess County Residents With Short Sales
Century 21 Alliance                                         Helping Dutchess County Residents Move On     

I am often the one giving advice but it’s important for my seller clients to know that I do practice what I preach.  I’m a Realtor and I also happen to be trying to sell my own house. Today I reduced the price AGAIN.  I decided to bite the bullet today after reading a news article about interest rates falling below 4%.

http://money.msn.com/home-loans/news.aspx?feed=AP&date=20111006&id=14357070&ocid=vt_fbmsnmon

30-year mortgage below 4 pct. for first time ever  

Once I sell my house I will be purchasing a new place to call home.  I will also be financing the purchase.  It doesn’t make sense for me to refinance my current house if I am moving. It only makes sense for me to unload what I have quickly so I can take advantage of the current low interest rates.

The article makes the following point: Consider a homeowner who owes $250,000 and is paying 5.09 percent on a 30-year fixed mortgage. That was the average rate being offered in January 2010. Refinancing the loan at 3.94 percent could save him or her more than $2,000 a year.

So, what's the point of holding out for a price I might not actually get?  If I cut my losses now, I stand to gain more over time from what I will be saving by purchasing sometime soon ...before interest rates begin to climb back up. I'm keeping my eye on the prize ...I might not get my price on the sale, but I will get a bargain on the purchase AND a very low interest rate to boot! Why wouldn't a seller who is buying in the same market be motivated by this news?

30-year mortgage below 4 pct. for first time ever ....I want it NOW!

Sellers ask me all the time "what would you do?" ...for me, it's no longer just a hypothetical question.   

It was reported by the showing agent that the buyer loved the house but felt it was overpriced.  Like a good listing agent should do, she encouraged the buyer's agent to just make an offer, but there was reluctance. The buyers were afraid of offending the sellers. 

The listing agent suggested that maybe down the road if there is a price reduction then the buyers might lose the house to another buyer because they waited too long.

No offer came even after the listing agent followed up a couple of times.  So, the sellers reduced their price once, then twice.

The third time was a charm. Finally, at the third price point the activity picked up, and that first set of buyers who saw the house at the original price ....well, they resurfaced. After a second showing, they hemmed and hawed, asked lots of questions about the maintenance costs of the home, giving the seller the impression they were crunching numbers. They had a third showing with a contractor present to give some estimates on their plans for an addition.  After more numbers crunching, they finally made an offer but by this time there were indeed other interested buyers. In fact, one of the other buyers had already submitted an offer and the seller was waiting to find out if there would be a second or third.

That first offer came from a buyer who knew right away he wanted the house, no questions asked and no second or third showing. He was very decisive and the seller was impressed with that.

When the first buyer's agent called the listing agent to announce that she was finally submitting an offer on behalf of her clients. with permission from the seller, the listing agent advised that there was one other offer already being considered. 

The buyer's agent insists, "well, the buyers don't want to end up in a bidding war"  ...well, too late - they waited too long to make a decision. 

After much back and forth, the two offers ended up almost comparable by just a few thousand dollars ...and, although it did come down to price, the seller also liked the buyer who was more decisive.

Decisiveness wins.  And, this ended up being the classic "I told you so" situation.

So you are trying to sell your house and there have been few showings, not alone offers.  The marketing is superb, your agent is dynamic and your house is a gem (or, so you've been told).  The feedback is good to excellent.  Anything that you could have done better to improve on showcasing your home, you have put forth the effort.  Yet, you are not getting showings.

It's likely and understandable that you are frustrated.

So, you ask over and over - what's the problem?

When it's not the condition of your home, there is only one factor left that needs fixing. Unfortunately, there is only one cure and it's one you have been resisting.

Great marketing, reputable agent and a beautiful house - but, what about price? 

Yes, the truth of the matter - even when everything is perfect, your house just might not be worth what you planned on, no matter how much work on your part went into getting it market ready, how much money has been spent to advertise in print and various websites or how many open houses your agent has hosted. And, your agent is probably just as fustrated as you.

What feedback is your agent giving you? Sometimes there are things that just cannot be changed, like architectural style or location.  When that happens, a seller has no other choice but to price accordingly.

It's nice to see all the hard work and effort that went into creating the picture perfect house and if you're like many sellers, you have been viewing your creation online and are obsessed with how beautiful your house looks. But, in a price driven market the dollar amount matters just as much as the photo shoot.

It's hard to tell sellers that their home does not command their price.  The listing agent of a very unique property might need to test the waters and start out high because of fiduciary responsibility. However, even when the agent can pinpoint a most likely sales price and set realistic expectations, most sellers want more for their home than what a buyer is willing to pay.

Price it accordingly, and if you're going to take a hit, it's better to do it fast and easy than slow and painfully. 

The market is not getting better any time soon so all things must be taken into consideration. Usually, price is the last resort when everything else seems perfect. So, stop viewing online and admiring the house you have made your home.  You're selling now.  That house is now a product which needs to be marketed at the right price. Show motivation. Without further ado, pick up the phone and call your agent to request a price reduction.

After all, what's that house really worth to you anymore if it's causing you to be miserable, frustrated and anxiety riden because it's not selling? You just can't put a price tag on happiness, no matter how hard you and your agent have tried.

It was a significant price range and an extravagant house valued at almost half a million dollars. The buyers were in contract on the sale of their existing home and needed to move fast to avoid temporary housing.  Yet, they weren't going to just settle for a deeply discounted price after negotiations. Instead, they wanted it to be winner-take-all situation.

I advised against bickering back and forth over an inspection issue amounting to just a few hundred dollars. But, my role as a fiduciary was to get the most I could out of the seller and the New York State agency disclosure states that I must be obedient and follow the directions of my buyer client. 

I knew what was going to happen. I warned them, as I had been warned by the listing agent.  I was told that the sellers were not going to budge after they had already negotiated a more than fair price and had given in to almost all of the other requests on the buyer's laundry list of inspection issues. 

The sellers were cash strapped and would not pay for what they felt was only something optional rather than a necessity.  The issue did not involve a code violation nor did it pose a safety concern. They felt they had been pushed to their limit, and dug their heels into the ground. They were adamant about killing the deal if the buyers pressed further on this one issue. I warned the buyers.

The buyers pressed anyway, causing them to lose a week just to gain nothing. So, eventually the buyers conceded and had to accept NO for an answer.  But, then they bickered further about a change the sellers had tried to make to extend the closing date by another week. And, the going back and forth on this cost yet another week, and again the sellers would not budge.  The buyers continued to lose valuable time although they did confide in me that they would be comfortable living in a hotel for a few weeks. They seemed to be more caught up with the art of negotiating and seeing how much they could push the envelope.

Well, the buyers ended up being disappointed they couldn't have the upper hand in a buyers market. So what did they do?  They walked away from the deal.  The seller's agent told me they were bluffing, but I wasn't so sure.

Wouldn't you know, one week later they still did not find another home they liked as much so we resurrected the deal. By this time, we lost THREE weeks time on a transaction that was suppose to have had a sense of urgency according to the buyers. 

Suddenly, I found myself in the hot seat. The attorney was in the hot seat. All because the buyer squabbled over pennies and wanted to "win" the game - it wasted three weeks of time.

We couldn't close the deal fast enough.  Then, surprise ...we had title and certificate of occupancy issues later in the transaction just days before everybody had been hoping to close. If only we didn't already lose three weeks bickering and getting nowhere. 

Yes, by now the buyers were living in a local hotel and even though they told me they would settle for that, they weren't liking it one bit.  Paying for storage besides.  They were miserable and putting pressure on everybody. On top of this unnecessary stress, my mother had been in serious condition after needing emergency surgery and I was dealing with a life and death situation. I remember being at the hospital one day and fielding 20 text messages.

The mounting anxiety, the calls, the multiple texts & emails and the persistence on the part of the buyer made this a more stressful transaction than it needed to be. And, it all started over an inspection issue costing only a few hundred dollars.  Or maybe it was that poker player mentality ...winner-take-all.

Before all this I thought is was odd when initially the buyer complained to me about the home inspector.  Why did it seem the inspector had not uncovered a lot of problems with this home which was only a few years old?  Hmm. maybe because it was almost new? Then the buyer complained about the attorney not being so responsive to what should have been a time sensitive transaction? Yeah, well maybe the attorney has more than just one transactions to handle at one time.

And, then there were a few days when the buyer made the phone calls that I would normally have made myself upon conclusion of my office meeting or a morning closing. But, I guess they felt they had to take matters into their own hands because I was not on top of this transaction 24/7 and working fast enough. In the end, nobody could move fast enough for these frustrated buyers, nobody was efficient enough and being penny wise and pound foolish from the start had nothing to do with their moving date being delayed. ....Or, admit it, maybe we just shouldn't have dragged our feet so long and bickered back and forth for days.

We all did the best job we could under the circumstances but no matter how hard we could have tried it wouldn't it have been enough.  Some people have their own agenda, some are chronic complainers who would rather hold everybody else accountable than to admit to their own foolishness.  The parents were there in the end to help with the move, they seemed disgusted with how the transaction had been dragged out and for all the stress the buyers had endured.  Wait, what about the Realtors and attorneys?  We were stressed out too, after giving good sound advice.  Did these kids tell their parents THAT? I mean, I hate to say "I told you so", BUT... 

Sometimes people who talk badly about their Realtors and vent about frustrating real estate transactions have only themselves to blame. In a perfect world the buyer client would follow the advice of their real estate agent or at least hold themselves accountable.  Do you think these penny pinching buyers realize how pushing the envelope cost them more time, money and frustration in the end?  Do you think these buyers are telling their friends and family that they did not heed the advice of their Realtor and that's what caused them so much stress? The next time somebody tells you about a bad real estate experience, remember that there are always two sides of every story.

Is it possible that today’s real estate consumers are just as savvy as they are naive?

Today's buyers and sellers are turning to the Zillow website and relying on the “zestimate” to determine property value, and they are often unaware that they are using this online resource to make all the wrong decisions regarding pricing.

Time and time again, Zillow has been an unreliable source of information, and yet the unsuspecting real estate consumer will trust it enough to go it alone or not heed the advice of their Realtor. With Zillow at their disposal, buyers and sellers feel that they have all the answers they need.

If the real estate business was this easy we wouldn’t need Realtors now would we?  After all, most people would rather find the answers on their own and dismiss research coming from a professional who is just trying to sell them something.  But, only Realtors have the most up to date and reliable tools through their local Multiple Listing Service (MLS). So, when it comes down to evaluating price and estimating value a real estate agent is the best source to turn to.

For example, according to the local MLS which I pay my membership dues, a transaction closed 2 days ago with a recorded sales price of $665,000.  Because this property just closed escrow, the information did not travel to the Zillow website yet. I beat Zillow to the information today. The “zestimate” had not been updated and the value given for this property by Zillow was $556,700.  Big difference!  It’s a good thing the seller did not rely on Zillow to determine the asking price for this property. How about that!  Zillow was off by $108,300.

On the buying side, Zillow can be just as inaccurate. Two years ago as a potential buyer looking for lakefront property three and a half hours away, I turned to Zillow for a "zestimate" on a home which I had grown interested in and considered making an offer. Because I am not an agent in that market and do not have access to the local MLS, I tried gathering my own information. After all, I am a Realtor and with the right amount of information I can probably represent myself. Well, I was wrong about that. The “zestimate” was significanlty off compared to the asking price. At first, it appeared that the seller had overpriced the property. But, I finally figured out too late that the property was worth every penny. Zillow was compiling values from the same street and neighborhood, but not taking into consideration that this property which I had fallen in love with was right ON THE LAKE - lake rights and views from every room. It certainly could not compare to the house across the street. Guess what ...by the time I figured this out and resigned to the fact that the house had been priced right I lost the house to another buyer. After that I hired my own local Realtor. 

If you are a real estate consumer in today’s market you have the ability to make informed decisions through many consumer websites.

Zillow is just one of many good real estate websites, but it's mostly helpful if you rely on all the other features except pricing.

Time and time again, it's been proven that Zillow is inaccurate when it comes to pricing. To determine fair market value, the very best source of all is your local Realtor. Relying on anything else could cause you to make decisions you might later regret.