Today represents the opportunity of a lifetime for real estate investment. One only needs to study the wealthiest people in the world to know how to capitalize on timing. Warren Buffet recently pointed out that when everyone else is selling is the time to buy.  

In Santa Cruz County home prices and interest rates are at historic lows. Never has the affordability index been greater in our adult lifetime.  Affordability translates to the ability to purchase a home and this is represented by the percentage of a median family's income consumed by the median mortgage. Nationally in 1981 a mortgage represented 36% of a family's income, today the national percentage is 15% of the family's income. This affordability combined with low prices and low interest rates is known as a "Buyer's Market" and a buyer's market is defined as the time to buy. It is not the time to kick the tires or to wait hoping the market will go lower.  The waiting is over.

Now is the time to capitalize on the low prices and low interest rates which make Santa Cruz homes more affordable than ever.  In August 2010 inventory of single family homes for sale in Santa Cruz County was 1102, in August of 2011 it was 1014 which represents an 8% decline.   In August of 2010 we sold 150 homes countywide and in August 2011 sales of single family residences increased to 164 which represented a 9% increase in sales.  So our inventory has decreased and our sales have increased.  The average price of a Santa Cruz County home decreased from $578,159. to $557,810. and the median price decreased from $522,500. To $490,000 when comparing to August 2011 to August 2010.  

For years I have advised my home buying clients to wait to buy unless they planned to hold their home for 10+ years.  I also previously advised my home selling clients to sell quickly if they had to sell since the market showed all indications of decreasing in value for years.  Agents used to say  that we need a crystal ball to know what the market will do in the future but the years from 2005 until now have had such obvious economic indicators that only a person living under a rock would not have seen the signs leading to the continual decline we have experienced as a result of stalled sales and ballooned inventory through these years of lending issues, short sales, REOs, phantom inventory, high unemployment and numerous other blows to the real estate market and to the economy. 

While the national economy has a ways to go, the Silicon Valley economy is on the upswing and historically our market follows the Silicon Valley market due to the nature of our bedroom community.  In other good news we now have 6.18 months of inventory of single family homes currently on the market and 6 months represents a balanced market.

I am reminded of my dear Mother, Margaret McCallister, when I hear the saying "do unto others as you would have them do unto you." She lived by this principle and ingrained it into her children on a daily basis. 

Often people will ask me about my success in real estate and wish to know "my secret formula."  When I reflect on this question, my belief is that what I achieve in my career and in life is a direct result of treating my clients, other agents and people in general how I would like to be treated. It is a simple philosphy which encompasses all aspects of who I am and of what I do.  

Many people believe that real estate success must come from a complex master plan. I believe it really comes down to how I treat people. The end result of doing unto others as I would have them do unto me is a large network of friends/clients, highly valued referrals from clients as well as referrals from agents and ultimately smooth transactions.  No transaction is stress free but all transactions have the opportunity to end with all parties knowing that a win/win was achieved for all involved.

When Gary Keller of Keller Williams says "Win-win or no deal" as part of our company mission statement it reminds me of my Mothers values and makes me feel good about the amazing company that I work for.  I believe that such values is why Keller Williams is the #2 real estate company in the nation and is on pace to become #1.

It is rewarding to see that when I treat clients and other agents well that they treat me well in return. The best part is that the coop agents and your clients become some of your closest friends. Work becomes fun and life is good for all involved.  :-D

Purchasing a home is a large investment and as such it is important to be prepared by following the right steps. 

First ask for Realtor referrals from people who’s opinion you trust. Interview the agents who are referred to you and then choose the agent who you feel will best represent you based on their experience, their negotiation skills and your comfort level with their personality. Many people choose a Realtor “because they are nice.” Feeling at ease with your agent is important since you will be spending a lot of time together but equally important are their reputation, their experience and their ability to best represent you in terms of what is important to you in your real estate transaction.  Once you find the ideal agent for you, commit to working with them as they will commit to working hard for you. 

Always avoid working with the listing agent of a property that you wish to buy. The listing agent is already employed by the seller to represent the seller’s best interests in the transaction.  As a buyer you want the lowest price and best terms and conversely the seller wants the highest price and best terms.  So having one agent represent both sides is a conflict of interest.   A misconception is that you will save money if you go through a listing agent. The truth is that having a strong buyer’s agent represent you will protect your best interests and will save you more in the transaction than going through a listing agent which will yield you no representation.

The next step is to ask your agent for lender referrals (unless you are paying cash for your home).  Many people have a friend or relative who is a lender and don’t bother asking their agent for advice on this topic. Full time agents work with the best mortgage loan officers on a daily basis and can advise you on which lenders have a reputation for performing on their loans and for providing unsurpassed service.  The mortgage loan officer is a critical person in terms of you closing escrow on the home that you want and like Realtors they differ greatly in terms of knowledge, service, communication and the ability to perform. 

Last of the most important home buyer tips is to make the time to sit with your agent for an in depth Home Buyer Consultation. Many home buyers feel they are too busy to meet with the agent and as a result waste weeks or months that could have been saved by all decision makers taking the time to communicate all of your wants and needs up front.  The more your agent understands about what you want and need the sooner they will find the ideal home for you and the better chance they will have of finding it before someone else does.  Keep in mind that the agent’s job is only 5% about finding the home (which anyone can do online) and most importantly about representing your interest in one of the most important investments that you will make.

 A common misconception among home sellers is confusing what was paid for a property,  how much was spent to improve a property or the price of listed but unsold homes in the area with fair market value.

There are many variables that determine fair market value. The most important being homes that have actually sold in your area that are comparable to yours.  The best way to reach that value is to hire a full time local Realtor who knows the inventory and market values. In order to really know the comps an agent needs to regularly preview the inventory so that they can be informed on the differences between homes after they have sold.

Many of the differences between sold comps are not obvious on the MLS so seeing the homes and knowing which home required $30,000. in termite repair work and which one was at the edge of a cliff and which one had major drainage issues etc is a key factor in helping you access the value of your home in terms of how it compares to the sold comps.  Taking the advice of a knowledgeable, full time and local agent's advise on your pricing is the most important key to you selling the home in a timely manner and not chasing the market down.

An obstacle homeowners face when attempting to sell a home is clutter.  Professional home stagers should always be consulted and their advice followed when a homeowner wishes to sell a home in the shortest amount of time for the highest price. Professional staging sheds a home in its best light and is a critical key to a success. Like any profession, home stagers have varying degrees of ability and varying quality of furniture and decor used.  When staging a home, always ask your agent for a stager referral and when you meet with the stager ask to see an example of a before and after which was impactful and resulted in a timely home sale.  I personally always take the advice of Yolanda Slattery and Joanne Cureton of Turnaround Interiors in Santa Cruz when I am listing a home. Their staging of the vacant homes I sell as well as the redesigns they create for the non-vacant homes I sell are one of the most critical aspects of my marketing plan. It is their talent that helps me keep my "days on market" well below the average in my county. 

Another tip for sales success, in any market, is to work with a full time local agent who knows the market and has a thorough marketing plan which includes various forms of advertising, staging, professional photography etc.  Ask to see marketing materials and ads they have placed for other homes so you can determine if that is how you wish to have your most valuable asset represented.

Ask people who’s opinion you trust to recommend a couple agents to you and compare their level of service and marketing plan in addition to the resources and reach of their company to ensure you have the best representation for your valuable asset.  Once you find the person who you want to work with, follow their advice. If you have chosen a full time successful local agent then they are the expert.  You hired them for a reason so listen to them and take their advice in order to get the highest and best price for your property.

As it gets more difficult for agents to make ends meet, I am hearing more and more in the Santa Cruz County market about property owners being told by agents that not putting their property on the MLS for the first so many weeks of the listing is beneficial to the homeowner. One local company has recently adopted this as their marketing thrust. This ill advised concept is presented as an "exclusive" or a "private offering" rather than what is really is... as an opportunity for one agent to make 2 commissions with neither the buyer nor the seller receiving the representation that they deserve. When this occurs, neither side has an agent who is negotiating what is best for them.

Sellers and buyers are being told that they can "save money by letting the listing agent represent both sides of the transaction." NOT true and NOT in the best interest of the buyer or seller. The only person who gains from the dual agency is the listing agent and his or her broker.  A buyer saves zero as a result of  the small percentage that a listing agent is willing to take off his/her commission in order to "write the deal" for both sides (since commission is paid by the seller). A seller can net far more plus receive more favorable terms when represented by an agent who is an effective negotiator as opposed to the seller giving up their right to have their agent negotiate exclusively on their behalf and only in their best interest. 

The seller's best bet at getting the highest and best price and most favorable terms for their property is to offer the property on the MLS (Multiple Listing Service) therefore exposing the property to every licensed agent in the market area and offering those buyer's agents a commission to represent the buyer. This element in the marketing of the property is critical and time sensitive. As such, verbiage is incorporated into the contract written by the California Association of Realtors emphasizing the value of having a property on the MLS and the risk associated with not doing so.  The MLS exposes a Santa Cruz County property to buyer's agents and buyers in five counties.  No other real estate marketing provides such a widespread audience and all of the most widely used real estate web sites require a MLS # in order to market a home on those sites.

The most critical weeks to the success of a listing are the first few weeks. Studies have shown for years that the first few weeks are when a listing gets the most attention. So in those first 3 weeks all of the key elements to success must be in place, including MLS mass exposure.  To ensure success, a listing agent must also have the cooperation of the seller to offer a fair market price, feature the home through professional photography (which draws the maximum number of buyers to the property) and must provide a comprehensive marketing plan that reaches every set of eyes that are in the market for such a property.

Many agents will respond to this blog saying that "in certain circumstances it is OK if the buyer and seller already have a meeting of the minds and just need someone to write the deal." I disagree, if both sides has representation, a far different meeting of the minds would occur and the person represented by a skilled, full time, professional negotiator would not get the short end of the stick.   I welcome any and all comments from those for or against one Realtor double ending a transaction.

As I search the Multiple Listing Service (MLS) in my home of Santa Cruz County. I see the majority of homes are overpriced.  It is sad to me that after decades of debunking the concept most sellers still believe that the surest way to get the highest price is to start high "and see what happens." As real estate professionals know, that is a sure fire way to "chase the market down" and net far less than you could have had you priced at fair market value from day one. A small percentage of the homes listed in my local MLS are actually "in the market." Most in Santa Cruz County are "outside the market" as a result of being priced above fair market value. Many list prices are based on what a home seller paid for the property or what a home seller has paid to improve the property or what other homes in the area are currently listed for. The reality of the situation is that what a homeowner paid for their property does not reflect the value of said property when the average value in Santa Cruz County has declined in value as much as 35% since the height of the market in 2005. Some pockets of the county have decreased by lower percentages but there is no neighborhood which has been completely insulated from the decreases in value resulting from overwhelming economic forces. Pricing a home based on the dollars spent on improvements does not pencil out either since "improvements" are most often perceived differently by a buyer and a seller. What is a valuable improvement in the mind of a seller may hold zero value to a buyer due to color or style etc. The third common mistake sellers make when formulating their opinion regarding the value of their home is by looking at the list price of other homes that are on the market in the area and unsold. A true comp is only a sold property and in a declining market it should be a sold comp from the past few months. So the homes that sit outside of the market due to overpricing only accomplish to help sell the homes which are priced right. When an overpriced home goes thru a series of price reductions, therefore chasing the declining market down, it eventually hits fair market value. By that time the listing is an "old listing" and buyers wonder what is wrong with it and they low ball their offers since it has been on the market a long time. When buyers or a buyer's agent see high "days on market" they figure there is more room to negotiate on the "old listing" as opposed to a new and exciting listing which all buyers turn their attention to when priced right. The good news is that Santa Cruz County is one of the most majestic places on Earth with the mountains at our back door and the ocean at our front door. You can be mountain biking thru a redwood forest in the morning and kayaking along the shore in the afternoon! The one-of-a-kind setting, the amazing weather and the laid back attitude will always make Santa Cruz County property desirable. I have lived here my entire life and cannot imagine a more wonderful place to live. On the topic of good news... when a home is priced right from the start along with the other key components to a comprehensive marketing plan in place, a home will sell and will often sell with multiple offers. This process nets the seller the highest price and best terms available in any given market.  So when you sell your home, make the wise decision and price it right based on a current market analysis of sold comps and make sure your agent has a comprehensive marketing plan that will expose your home which is "priced to sell" to the eyes of all potential buyers worldwide.

If you want to sell your home quickly and want to yield the highest and best price possible in a given market, my advice (besides pricing the property correctly from day one) is to always have your home professionally staged prior to going on the market. 

I have professional stagers stage each of my listings (Yolanda Slattery and Joann Cureton of Turnaround Interiors) and the sales results speak for themselves. Of the top agents in Santa Cruz County I have been fortunate to hold the record for shortest days on market the past couple years. A key component to short days on the market is the amazing work done by my staging team - Yolanda Slattery & Joanne Cureton.  A home must look warm and inviting to sell and a vacant or cluttered home does not look inviting. Home buyers cannot visualize how wonderful a vacant or cluttered home can look and when there are personal items decorating a home a buyer cannot visualize the home as their own. The home must be arranged in a way that emphasizes the size of the rooms and highlights the strongest features of a home. If a homeowner is living in a home that I have listed, my stagers consult the sellers by viewing the home and providing a list of items that are suggested to be removed from every room. Once these items are packed away the stagers return to the site to perform their magical art of placement with the remaining furniture and decor in the home. Home owners often resist the staging idea but once the staging is done, 100% of the time my home sellers are hugging my stagers and thanking them for showcasing their home so beautifully.

Many times I see homes in Santa Cruz County go on the market unstaged. Often they are on the market for many months with the homeowner wondering why no offers. Sometimes these homes are later staged by a professional and then sell quickly but by then they are "old listings" and as such yield a much lower price than they would have had they been presented property from the onset.  Another critical component  to the success of the sale is professional photography. After all, it is the photographs that make home buyers want to view a home and the photographs can look ten times more beautiful and impactful with the vital combination of professional staging and professional photography. 

Remember...  the first few weeks are your opportunity to sell the home for the highest price with the best terms so get it staged, get it professionally photographed and price it right for success.

My name is Melody Russell and I am constantly taking a stand against what is known as "dual agency" in the real estate industry. I am not referring to when one real estate firm has two different agents represent different sides of a deal. In such a case, I feel that both the buyer and seller can each have their best interests protected by their own Realtor who is representing only one side of the transaction.

What I am passionately against and wish to educate home buyers about is when one Realtor represents both sides of a transaction.  We as agents have a fiduciary responsibility to do what is in the best interest of our client and we have a vow of ethics through NAR to be "loyal" to our clients. The best interest of a buyer and a seller are not one in the same.   They are naturally an opposing force.  The seller has a goal of obtaining the highest price possible with the most favorable terms to the seller. The buyer has the opposite goal of obtaining the lowest price possible and obtaining the best terms in favor of the buyer.  How can one Realtor be loyal to both clients and act in the best interest of each client when the goals are polar opposites? I have heard many justifications over the years but I can, and will, honestly tell you the answer is simple. The agent cannot and in my humble opinion, should not. 

Being one of the top ten producing agents in Santa Cruz County, California, I am faced with the opportunity of acting as a dual agent on a regular basis.  A large portion of my business consists of listings as far North as Los Gatos and as far South as La Selva Beach.  As a result of having much of my business come from listing, marketing and selling homes for my clients, buyers call me or come to my open houses and often want to work with me in order to place an offer on one of my listings. The buyer is often confused when I explain that I am representing the best interests of the seller and they would be better served to have someone watching out over what is best for the buyer in the transaction as opposed to working with the listing agent. 

I don't enjoy turning away business or money but I do it on a regular basis because I understand quite clearly, and without a shadow of a doubt, that it is a conflict of interest for me to represent both sides of a transaction. As required by my fidcuiary obligation as a Realtor and because I know in my heart that the only option for my client's best outcome is for me to work, with a single purpose, until I obtain the best price possible and the best terms that can be negotiated for the client that I am representing. I was excited to learn that there is a percentage of agents who agree and who also never represent both sides.

I have seen many agents who advertise that they will get their client the best price and the best terms and many of these agents jump on dual agency when the opportunity presents itself.  What is wrong with this picture? There is plenty of business to go around with each buyer and seller preserving their right to representation on the purchase of what is most often their largest asset. Why is it even legal? It is not legal in some states and I wish that it were not in California.

Many people will not agree with my stance in regards to dual agency and each person is welcome to their own perception based on their own life experiences which have created thier own reality. From my perspective, buying a home is a huge investment. It is the American Dream and in pursuit of that dream, it is each person's right to have an agent who will represent them (and only them) to the best of the agent's ability while putting all other interests (including the agent's) aside. It is my hope that one day  home buyers understand that they are cutting themselves short by having a listing agent "double end" a deal. Likewise, I hope that agents who represent both sides will stop to consider who they are truly serving when doing so.  

Many consumers freeze during a "buyer's market."  Many believe it is time to kick the tires, question home prices, question the market in general.  Many feel they should wait "in case prices continue to decline."  Not true, the definition of a "Buyer's Market" is that it is the best time to buy! The market cannot be timed, no one has a crystal ball and when you find the ideal home for you, you need an experienced professional that can negotiate the home to the price that you are willing to pay.

Keep in mind that the listing price is irrelevant. The value of a home is simply what an "able, willing and ready buyer" is willing to pay for the property. "  If the Realtor that you have signed up with to represent you in the purchase of your home is skilled in negotiations, the result will be a win-win transaction and a fair price, no matter what the market conditions are.  Make sure that your Realtor is representing you and not both sides of the transaction, that way you have representation working toward getting you the best price and the best terms and the seller has their own representation and that person will be working toward the best interests of the seller. While a minority of properties in every market are priced right and are not negotiable, the majority of listings are currently overpriced.  Don't wait for the price on your ideal home to come down.  When that happens, there will be multiple offers which result in the price getting bid up to "fair market value."  If you want the best price, it is much more effective to be the only buyer at the negotiation table.

It is important, even critical, to an effective negotiation, that you do not get emotionally attached to a property. Make sure that the Realtor that you choose is as willing to walk away from non-fair pricing and bad terms as you are. Don't wait and try to predict the bottom when all is in your favor in terms of a buyer's market, low interest rates, tax credits, etc. but don't be in a hurry to settle for a home that does not meet your needs or for one that takes you out of your monthly payment comfort zone.

Before even beginning the search get preapproved by a reputable lender who works in your local market and is referred by your Realtor of choice. Experienced Realtors have a network of professionals who will perform on the loan once you are in a transaction. Make sure you understand the total monthly PITI (principle, interest, tax, insurance) payment before you decide on a price range you will shop within. Make sure to keep in mind that you will also need to set aside funds for repairs and maintenance in order to protect your investment. If done with the help of your local skilled professional, you can build the wealth of your lifetime thru wise real estate investments.