If you are seller that previously had your home listed with an agent that has now expired or you are trying to sell your home on your own, you need to read this!  I don't list homes for sale, so I don't call expired listings or for sale by owner homes for the purpose of securing a listing.  I understand that the real estate business is very competitive and each agent is always looking for an edge.  It really doesn't matter to me what an agent chooses to do to try to add to their tally of listings, as long as it is ethical and honest.   If an agent calls/writes you and tells you any of the following, be sure that you are smart about things before you sign any type of agreement. 

1)  If an agent tells you that they are working with buyers that are looking for a home just like yours, be prepared to ask a lot of questions before you sign anything.  In Wisconsin, we must have a signed listing contract, spelling out the duration and commission, among many other things.  Perhaps this agent will ask if you would be willing to do a "One Party Listing", even offering you a reduced commission.  This still must be in writing, have a duration, state the commission terms and state the potential purchaser's name.  This needs to be done prior to there being any type of showing of your home.  Don't be afraid to ask the agent questions about this purchaser before you agree to anything.  Some things that you might want to ask are:

  a)  Can the agent supply you with a preapproval letter for this buyer prior to you agreeing to a showing?

  b)  How long have they been working with this buyer?

  c)  What are some of the other homes this buyer has previously looked at with the agent?

  d)  What type of paperwork would you need to sign?

  e)  What commission is the agent asking you to pay?

  f)  How long would you be in any type of contract with the agent?

If the agent can't, won't or simply chooses not to share any of the above information with you, then this may not be a good arrangement for you, the seller.

2)  If an agent calls you and tells you they are willing to list your home for x% commission (an amount that seems to be significantly less than you have ever heard of before) for 30 or 45 days, you need to be cautious.  In Wisconsin, listing brokers and their agents are required to put directly into the listing contract the commission rate potentially owed to them, as well as any variables in that commission.  The listing broker/agent is also required to state in the listing contract how much commission they will be offering to other offices that may bring a buyer to your home.  This is called a cobroke- when one office lists the home for sale and another office brings a buyer through.  You, the seller, have the right to tell the listing office exactly how you want that commission shared.  If you want your listing agent to get x% and the agent that works with the buyer to get y%, then tell them that and get it in the listing contract.  Here are some things to be consider when someone offers to significantly discount their commission:

  a)  Does this discount only apply to a situation where the listing agent also has the buyer?

  b)  What is the commission amount that will be offered to other offices/agents?  A good way to handle this is to tell the listing agent what % you want to pay the listing office and what % you want to offer to the agent that brings a buyer through your home.  Have them put this in the listing contract and then there are not any questions.

A recent situation I was told about was an agent that called a listing that had expired and stated they had a buyer looking for a home just like theirs.  The agent said that there wasn't anything else on the market within the price range they were previously listed for, so could the agent bring a buyer through the house.  The sellers agreed.  That buyer, shockingly, wasn't interested in the house, but the agent would be willing to list their home for half of what the agent normally charges for 30 days.  The sellers agreed.  Interesting, right?  The multiple listing service does not show that house as being a reduced commission, nor does it show that there is a variable commission if the agent sells the home.  Both the amount of commission being offered to a selling or buyer's agent, as well as whether the commssion is variable, are required to be stated in our multiple listing service here in Central Wisconsin.  The concern becomes whether this agent is being deceptive to the seller, other agents, or both.  Deceptive business practices are unethical and if you are going to be listing your home for sale with an agent, I would certainly believe that you want the most ethical agent possible representing you and giving you advice.  Please be very cautious and remember that sometimes, if something seems too good to be true, it probably is!

As a seller in any market, it is important that you are prepared to have your home shown on a moment's notice.  In the tight real estate market the Marshfield area is currently in, allowing showings is imperative if you want your home to sell!   Recently I was representing a buyer client who had written an offer on a property.  The day that we had an appointment to finish negotiations on that property, a new listing came on the market.  This new listing was in the exact neighborhood that the buyer wanted to be in, was priced right and a very good possibility for my client.  I made a call to the listing agent to find out if the seller would allow us to go through their home in about an hour.  The listing agent made a call and the seller approved our showing.

I called my client and let him know to meet me at the new listing prior to his making a decision on the first property.  We viewed the new listing, which was in immaculate showing condition even on such short notice, and went back to my office to discuss things.  The buyer was impressed with the new listing.  I performed a market analysis, which we went over, and he decided to reject the counter offer from the sellers we were negotiating with and write an offer on the new listing.  It was a great offer and the sellers ended up with an accepted offer the first day their home was on the market.

The importance of allowing showings, even when they are short notice, can not be understated.  As a seller, you really need to understand exactly what is at stake when you turn down a showing.  If these sellers had not allowed for a short notice showing, this buyer would never have had an opportunity to put in an offer.  If the sellers had not kept their home in "show ready" condition, this buyer may not have written an offer on it.  These sellers were well-informed by their listing agent as to what condition a buyer expects a home to be in and how important allowing short notice showings is.  If you were that seller, what would you have done?

Yesterday we had our local agent open house and I was in a home that was significantly overpriced for the market.  As we were driving, a discussion began about why agents overprice homes.  We are all going to read things a little differently and everyone has an occasional off day, but I am talking about those agents that time after time grossly overprice a property.   I can't understand this.   

I like being able to tell people yes.  I don't like to be the one that has to tell someone the cold hard truth.  Unfortunately, there are times when yes is not the answer and I need to kindly tell someone things they may not like to hear.  I have children, so I have some practice at this.  Practice doesn't make it any easier, though. 

When going on a listing appointment, there are times that the sellers' expectations for what they can sell their home for are not at all in line with what the market is most likely going to support.   Other homes may be in need of some repair, sprucing up or simply a good, deep cleaning.  These are times an agent has to have an honest conversation with the sellers about price or maintenance issues.  The sellers that understand that an agent is just doing what they called him/her to do, be a real estate professional are the ones that will do the staging and maintenance things suggested and choose to list their homes at a competitive price.  For the sellers that disagree with an agent's professional opinion and feel that they can still get x for their home, even though there is not a comp to be found to support their price, a real estate professional should stand his/her ground and politely decline to take the listing. 

People call us to do a market analysis because we are real estate professionals.  It is our duty to give people an honest snapshot of the current market, no matter what they hope to get for their home.  Taking a listing that is grossly overpriced, just because that is what the seller wants to list a home at, is not being a professional; it is being a "yes man."  As Realtors@, we are in jeopardy of violating our Code of Ethics, Standard 1-3, when we are afraid of being honest and deliberately overprice a home.  A seller has a right to hear the truth, even when they may not necessarily want to.  That is our job, no matter how difficult it is. 

Today two loan officers from a local bank visited my office.  They came in to talk about their loan products and the different loan programs that they have available.  They also excitedly showed us their online preapproval application system.  A home buyer can go onto their website, fill out the online application form, have their credit run and receive a preapproval letter to print off, as long as credit checks out.  We were even told that the entire application is run through the underwriters.  They then proudly handed each of us a sample copy of what the preapproval letter would look like, should someone come into the office with it.  Here's the catch!  The letter states that it is a prequalification, not a preapproval. 

One of the other agents in my office asked about the fact that the paperwork states it is a prequalification rather than a preapproval.  The answer that was given is that it is a wording glitch, but it is most definitely a preapproval and the potential buyer's credit is run.  Here is my question:  How can it be a true preapproval letter if the information the customer provides online has not been verified?  Yes, their credit is run, but what if the person filling out the application is self-employed?  As we all know, the self-employed person's income has a lot of variables.  Not to mention, someone may have excellent credit and state that they make more than they actually do, and still get a preapproval based on this exaggerated earning amount.  Am I looking too far into this?  I would love to get input from all of the wonderful, insightful AR minds! 

I have been in real estate for almost 4 years, and one thing that I have learned is how much I really enjoy the opportunity to work with home buyers, especially those that are buying their first home.   When preparing my business plan for 2010, I decided that I was going to only work with buyers.  This is a decision that I did not come to lightly, as there is not one other agent in my market that does so, and everyone here believes the old phrase, "He who holds the listings holds the business."  I have been advised by people whose opinions I respect that this is not a wise choice, and I have been told that I won't make any money if I don't take listings.  Everyone keeps asking me if I am sure this is what I want to do.  My answer is, "Yes!  This is what I not only want to do, but this is what I am going to do."

I love to educate people on the home buying process and working with first time home buyers gives me that opportunity.  My goal is to have them feel confident in themselves and the decisions they make- from deciding on a home to choosing an inspector.   I want them to be able to reflect on the process and be proud of themselves, as well as feel that it was a smooth process. 

Working with buyers helps me to always be looking at my career as exciting and new, because I am able to view things through fresh eyes.  It's kind of like when I take my 7 year old some place that I have been a million times before.  She will always notice something that I never had or she will see it differently than I ever could have without her.  That's a great feeling!

I work very hard for each and every person that I work with.  I am extremely patient, and I am willing to be there with my clients every step of the way.  I have only missed being at one home inspection, and that was the first month I was in the business.  I've only been unable to attend one closing in four years, and that was due to the closing date being moved up and I was scheduled to be at an ethics training class an hour away.  I talked with the buyer about this before the change to the closing date was agreed upon.  He was okay with this and I had an agent from my office be there with him.

The bottom line is that I am really good at what I do; I feel that it is important and working with home buyers makes me happy.  I love what I do and I wouldn't change it! 

Your home will most likely be one of the largest investments you will ever make.  When it comes time to decide on which home is right for you there are a lot of factors to consider.  Of course the house has to feel right to you.  After all, this is where you will create memories and plant your roots.  The emotional aspect of deciding which house will become your home is something that only you can put value on.  You are the one that needs to be able to see yourself living day to day, entertaining friends and family and simply relaxing in the home you've created. In addition to how you feel about a house, you will need to consider condition, location, floor plan and price.  These are things that will play a part in the actual market value of your home.

It is my job as your buyer's agent to help find you a home that fits your wants and needs as best as possible, while addressing the investment side of the equation, as well.  We will talk about the things you simply can't live without, as well as the things that would be added bonuses.  We will talk about your needs in terms of location and pricing, as well as style and condition to determine which homes you would like to look at.

The condition of a home is an important aspect of home shopping.  Are you someone that is looking to find a home that you can move right into with little or no work or are you looking for a home that you can build some sweat equity into?  Condition can also play a role in your financing. Some loan programs will require a property's condition to meet certain standards in order to obtain financing.  I will help you find homes that best fit your needs and financing requirements. 

 Along with condition comes the location of the home.  Not only do you need to consider how far from work and school you are comfortable with being, location will play a part in your ability to build equity and sell the property in the future.  If you are looking at building sweat equity or simply making improvements or upgrades, it's important to know the market conditions of the neighborhood the home is located in.   I will help you determine what the homes within a neighborhood are currently selling for, and we will look at where the home you are looking to purchase fits into that.  This is important to know if you are planning on doing any type of improvements to the property.  We will also look at the history of the neighborhood sales and values to assess whether the area is one that seems to be staying steady, decreasing or appreciating in value.  Remember that most home owners will move within 5-7 years, so resale ability is very important.

 As we begin the process of viewing properties, you will begin to get a feel for the layouts and floor plans that best suit your needs and lifestyle.  Floor plans are very important because it is something that can not be easily changed.  While the condition of a home often can be addressed by minor updating, painting or flooring, changes to the basic layout of a home could become an extensive and costly project.  As you look at homes, be sure to share what it is about the layout that you really like and things that you do not care for.  This will allow me to begin narrowing our searches and showings as you begin to determine what floor plan appeals most to you.

 Price is something that will play a role throughout the process of looking for your new home.  There are a lot of factors in addition to the listing price that we need to keep in consideration.  The amount of yearly taxes, utilities, maintenance and upkeep are a few of those additional factors.  Figuring the per month amount of taxes, as well as the approximate monthly utility costs, will help you decide if the monthly outgoing costs of owning the home will fit into your personal budget.  You also will want to be sure to consider whether there are monthly upkeep costs that will affect your budget.  When you are ready to write an offer to purchase a home, we will analyze the market data to help you determine what is fair and reasonable to offer the sellers.  I can offer you my opinion, as your buyer's agent, and give you advice and strategies for negotiating based on my experience and knowledge of the market, but ultimately the final terms and conditions that you are willing to offer to purchase your home is your decision.  After all, no one can determine the value of this home to you, but you!

You know you want to buy a home.  Now what?  It's a question most first time home buyers find themselves asking.  Knowing what steps there are to get you from wanting to buy a home to owning a home will give you comfort and confidence.  The following is an overview of the home buying process.

 •1)        Find a lender:  This will be the first thing that you want to do.  You will want to talk with a lender about the various financing options available and get preapproved.  When talking with your lender, be sure that you are honest about your finances and what your monthly budget is.  If you are not comfortable doing this, than you need to find a different lender that you are at ease with.  The lender will help you determine what price range will best fit your family, based not just on your income, but also on your personal lifestyle and budget.

•2)       Interview Agents:  Once you have gotten your financing preapproved, you will want to find an agent to work with.  Working with one real estate agent throughout the process will benefit you greatly.  You will want to interview a few agents to determine which agent you are most comfortable with and which seems best suited for you and your needs. 

•3)       Viewing Homes:  Now that you have chosen an agent to work with, you will want to sit down with them and discuss your needs vs. wants in a home.  The agent will then search for homes that best fit what you are looking for and begin setting up showings for you to view them.  Remember there is not a magic number of homes that you need to look at before you make a decision!

•4)       Writing an Offer:  You have found "the one", and now it's time to sit down with your agent and write an offer to purchase the home.  This is where you will offer a purchase price, ask for any items that you would like included in the purchase, determine when you would like to close, and list any contingencies (conditions) to buying the home.  Once you write the offer, your agent will give it to the listing agent to present to the sellers.

•5)       Negotiating the Offer:  Once your offer to purchase has been presented to the sellers, there are four things that the sellers can do.  They can accept your offer, reject your offer, counter your offer, or accept a competing offer, if one exists.  It's important to remember that the sellers are not required to negotiate and they can accept a competing offer at any point prior to accepting yours. 

•6)       Accepted Offer:  Congratulations!  You have negotiated an accepted offer on your soon to be new home.  Now you will need to stay on track with your contingency deadlines.  You will want to schedule any inspections or testing that you wrote into the offer, as well as get in touch with your lender.  Your lender will get your appraisal scheduled and let you know if there is any additional information that they may need from you.  You will also want to talk with your insurance agent and get your homeowners insurance set up.  Your real estate agent should help you stay on schedule with your deadlines and keep in contact with your lender.

•7)       Closing:  A day or two prior to closing on the house and becoming official homeowners, you will want to schedule a final walk through with your agent.  You will want to go back through the house to be sure that any items that were agreed to be included in the purchase are there, as well as checking to see that the condition of the home is in as good of condition as when the offer was accepted.  The day of closing you will meet with your lender and go over all of your mortgage paperwork.  If you have any questions, now is the time to ask!  Once you have signed your loan documents, it is time to sign the paperwork transferring ownership to you.  Normally you will do all of this either at the bank or at a local title company.

 This is a general overview of the home buying process.  Each circumstance is different, which is why it is so important to work with an agent that is knowledgeable and you trust.  

You are so excited!  After careful thought and number crunching, you have decided that now is the right time for you to purchase a home.  You visit your local bank, crunch some more numbers and get preapproved for a mortgage.  Next you head home to look online and start previewing homes that fit within your price range.  You find a few that appeal to you, but now what? 

Before you make a call to an agent, you need to understand the different roles real estate agents can play in the home buying process.  There are agents that work for the seller and there are others that work for you, the buyer.  Knowing what the differences are, and how this can affect you throughout the transaction, is something that you need to be aware of before looking at any homes.  In Wisconsin, there are 5 potential roles, or agencies, an agent can play in the home buying process.

First there is the Listing Agent.  This is the agent that has the home listed.  The seller has hired the agent to represent them in the sale of their home.  When you are viewing a home with a listing agent, that agent's role is to work in the best interest of the seller, to get the seller the best terms and conditions.  This agency relationship is normally formed when the listing contract is signed by both the agent and the seller.

A real estate agent can also be a Selling Agent, sometimes called a subagent.  This is the agency most often misunderstood by home buyers.  No matter how many homes a selling agent shows you or which office actually has the home listed, if you do not have a signed agreement with the agent, this agent's job is to look out for the seller's best interest.  The selling agent cannot give you advice on pricing or negotiating.  They can work with you, but they do not work for you, the buyer. They work for the seller.

The Buyer's Agent is an agent that has a signed agreement with you, the buyer, to represent you.  Their job is to work for you, in your best interests.  Your buyer's agent can provide information to help you with pricing strategies, offer you their opinions and give you negotiating advice, even if that information may give you a distinct advantage over the seller. A buyer's agent can also represent you in purchasing a home that is for sale by owner.

The Dual Agent is one that represents a seller, through a listing contract, and a buyer, through a buyer agency agreement.  If written disclosures are made and all parties involved in the transaction give written consent, the dual agent can act as a facilitator in the process.  The agent can not give either buyer or seller advice that could hinder the other party.  If this type of agency arises, be sure you clearly understand your agent's role in the transaction before consenting to this.

In Wisconsin, anytime that a buyer or seller has a written contract for representation with an agent, that contract is with the broker that the real estate agent works for.  Because of this, occasionally there will be a situation in which your buyer's agent would become a designated agent, as long as both you and the seller agree in writing to this.  This occurs when a buyer's agent shows a property to a client that another agent within the same office has listed.  In the case of designated agency, your agent can still represent your best interests.  They can still give you information, advice and opinions, even if it elevates your position in negotiations. 

When you purchase a home, it most likely is one of the biggest investments that you will make.  The seller is being represented in the transaction, so as a buyer it is wise to also have an agent that is looking out and working for you.  If you are looking to be represented by a buyer's agent, be sure the agent you choose is educated in buyer representation and regularly practices buyer agency.  You should interview agents before deciding on an agent to work with.  It is very important that you chose an agent that fits your needs and that you feel the most comfortable with.

Foreclosure properties are on the rise, and buyers are being told about all of the great deals they are going to get when buying a bank owned property.  What buyers aren't being told is that not all foreclosure properties are created equal.  I recently had someone ask why they need a buyer's agent when buying a foreclosure if it is being sold "as is".  My answer was that especially when looking at foreclosure properties, buyers needs full representation!  There are so many variables with REO properties and the transaction process, that it would be very easy for a buyer going it alone to get lost in the mix. Here are just a few of the reasons you will want to have an agent representing you in a foreclosure transaction:

1. You will need an agent to help you navigate through the details and help you find homes that will be a likely fit for your circumstance.  A good agent will speak with you and your lender about what type of loan program you will be using to finance the house.  Many programs, especially those for first time home buyers, have criteria that the home needs to meet before they will lend the money.  In our area many of the foreclosures don't meet the standards and therefore you may need to have some repairs completed prior to closing or money set aside in escrow. 

2.  Wouldn't it be nice to be able to verify that the furnace and plumbing work before you buy it?  Many times the homes have been vacant for a long time without any utilities on.  If you want to have a home inspection performed, which I highly recommend, so that you have a good idea of what you're getting into, your agent may need to help you negotiate getting the utilities back on and dewinterized so your inspector can do a complete job. 

3. Paperwork, paperwork, paperwork!  With any real estate transaction, there is a lot of paperwork involved.  When buying a foreclosure property that is multiplied immensely.  Most REO companies have their own set of paperwork that will have to be completed, and it can seem overwhelming.  An agent will be sure that you have a solid grasp on what you are signing and initialing.  In most cases, the paperwork of the foreclosure company overrides any other form.  If their paperwork has a different deadline or different wording, once you sign it, you have agreed to the changes.

4. An agent representing you will not just show you the home and help you write the offer.  They will also walk you through things once your offer is accepted.  The agent will make sure that everyone is staying on track.  There are a lot of people doing a lot of things behind the scenes to get you to closing, from the title company to the appraiser and lender.  Imagine if there is not a point person for them to call! This is especially important in a foreclosure situation, because if you don't close on time you could very well end up owing a per day "penalty" for every day that ticks by past the original agreed upon closing date.

   Each transaction is different, so this list could be endless.  The important thing is to look for a real estate agent that you are comfortable with and that you feel you can trust to help you through your unique home buying experience.