PETER's Blog

STEPS FOR FIRST TIME BUYERS

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Mon, 20 Oct 2008 10:03:02 -0500

CORRECT STEPS TO BUYING A HOME

"The process of finding a home involves a number of steps. The good news is that there is a fairly logical sequence by which this occurs."

Step 1: Choosing a real estate agent

A real estate transaction should be a collaborative effort between you and your agent. A good agent will ask specific questions to streamline the process.

HOW TO CHOOSE AN AGENT

* You can go to the websites of local agencies and read what they have to say about themselves, check out their picture etc...

* Go to some Open Houses and "interview" them. (Don't laugh ! The home purchase ranks as one of the higher stress situations next to marriage. It is important that you feel comfortable and trust them and their advice)

As the "Buyer" you are not charged for their services, but in return You should only work with one agent at a time.

* Most people ask friends, neighbors or relatives for a referral to find an agent . This can be good or bad. You need to find someone that YOU work well with.

* Find an agent who is computer literate.

* Lastly, everyone has a friend who is an agent. This can be a tricky, sensitive situation. Working with a friend can be good or bad. (For the process and the friendship)

If you choose not to use your friend, explain to them beforehand.

Hint: Bring a token gift at the time you tell your best friend you are going to be working thru another agent. Let them know that you are aware of how they make their living but "you felt the friendship is better served by not mixing business with pleasure".

Realtors work on commission only (No salary). Your friend may be "disappointed" with you at first if you choose to not use him or her for both social and financial reasons.

Step 2: Qualifying for a loan

Picture going to the grocery store, filling up your cart and saying;

"Someone please hold this here while I go home and get my money"

It is imperative prior to any offer to have the banks picture of what you can afford.

Before you begin looking at houses find out what type of loan you will qualify for ! A good mortgage rep can work with you to answer these questions.

This process will truly let you know what your financial comfort zone is.

Most people think the loan process would come after finding a home, but that is wrong.

"Unless you are paying cash for a home, you will have to go through a loan approval process. By completing the necessary forms in advance, your lender will have the opportunity to check credit history, employment, and other essential aspects of loan qualification."

"Nearly every lender requires homeowners insurance. As with the pre-approval process for a loan, shop early for insurance."

Step 3: Looking for homes

After steps one and two you are"ready to go".

Let your agent know your needs, wants and must haves in a home.

Much of the "leg-work "can be done on your computer.

My clients receive the available listings via e-mail. This allows them to view inside and outside photographs of homes for sale, the school systems, current taxes etc. .. without having to leave their desk. After selecting the ones that look interesting, then you and your agent can go see them in person.

A few tips;

1) If there are no inside photos of the home, there is usually a reason. 2) Don't be too restrictive in your search criteria. You may miss "a home of your dreams" 3) If it looks too good to be true, it is.

Step 4: Making an Offer

When making an offer to purchase a home, ask your real estate broker about the strategy they use.

Having the agent make the offer in person is usually the best. You will have to rely on your broker to represent your interests.

"Remember, the negotiation of a sale is one of the most critical points in a transaction and can be a very sensitive time for all involved. Do your best to maintain composure during this process."

Make sure your sources of information remain your Attorney, Agent and Broker...not friends, parents, and other well meaning but often harmful contributors.

ALMOST EVERY "FIRST TIME BUYER" STARTS QUESTIONING:

I bet I could have gotten it for less.

The perfect home may come on next week, for less.

DON'T OVER ANALYZE

Step 5: The Attorney

In New Jersey the only individual authorized to write a contract is an attorney.

The document you have just signed with your agent will be re-written .The first line of every attorney review letter usually will read "We disapprove of the "contract" in its current form".

There will be a "Attorney Review" that can last anywhere from 24 hours to, well there is no real limit. That is why it is essential to use an Attorney who does a good amount of Real Estate work.

Like a marriage, all it takes is one bad apple to derail the whole process.

Having a good attorney on both sides usually makes for a smooth transaction.

(As with the pre-approval process for a loan, shop early for an Attorney).

Step 6: The Home Inspection

Depending on the state you live in, this may or may not be part of the procedure

"The buyer can hire licensed Home Inspectors to prepare a detailed report on the home they are purchasing." In New Jersey it is popular to have a full home inspection.

These reports can be very useful in protecting you from purchasing a home with major problems. There are many items that the keen eye of an expert can ferret out, that normal individuals would look past. Unfortunately there is another side to the process.

I have seen many deals fall apart due to an "alarmist" home inspection.

This is especially true of First Time Buyers.

Even though the agent should not comment on the report, let me just share an analogy.

Let's say you were to hire an auditor to review your finances; they would approach the task like a blood hound hot on the trail. That is what you are paying them to do.

Depending on the mind-set of the home inspector, the report can read like a death sentence.

There is an old joke about the man who comes back from the doctor's office and tells his wife of forty years what the doctor said..."He said I was going to die" "Oh my gosh, when?" she replies "He didn't know exactly, somewhere in the next sixty years"

I may be losing my friends who are licensed home inspectors but I just want to say "There is not a house (or pyramid) that they could not find traumatic fault with

Don't be afraid to ask them

"If I do nothing on your list, will the house stand another 50, 30 15 (when you get down to 10 they usually answer) years?"

Then you will get a clearer picture of the intensity of the issues at hand.

Step 7: Closing the Transaction

"As the transaction winds to a close, the pace will quicken a great deal." This is where your agent and attorney choices really will show themselves. Buyer and seller tend to become un-raveled at this point.

There will be a "walk-through" inspection before the closing to assure that the home is in "broom clean" condition.

There are MANY documents to sign. Allow a good amount of time the day of the closing for this process. It usually takes place in the office of the Buyers Attorney and runs about two hours..

Buying a home is wrought with emotion.

Try not to second guess yourself, it is one of the most stressful decision making times you will have known.

As a first time buyer you are more prone to be pulled into these emotions.

RED BANK N.J. REAL ESTATE TRENDS

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Thu, 27 Sep 2007 15:46:20 -0500

A very strange trend is occurring. In spite of all media efforts, houses are still selling ! Condo's are still selling. I don't know. It is kind of like the weatherman saying loudly "We are experiencing the worst drought in recent history", while rain is pouring off his window. I don't get it.

I grew up in a small town; Red Bank N.J. A great place to be a kid. Since then, property values have risen consistently. Nothing has changed all that much, aside from the prices. This part of Monmouth County thrives because of what it offers. We have great theaters, restaurants, concerts, and that is before you board the train bound for New York City (50 minutes). Red Bank has grown, yet it still embodies the small town charm that it has always offered. Come and visit sometime.

THE MARKET VS. PERCEPTION

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Sat, 15 Sep 2007 07:15:35 -0500

If we are to buy-in to the perception of current market activity, compare that with the reality, there exists a basic math problem. In our neck of the woods (coastal New Jersey) I currently have more qualified buyers then I have enjoyed all summer. Homes are going under contract in less then 30 days time. You see the problem here. If I were not involved, on a daily basis, I might just believe the perception. I know that there are pockets across the country experiencing "90% INCREASE IN FORECLOSURES" , and that is not even factually correct, as those are projections based on "one late payment" status etc. What makes this even worse is the "multiplication factor" that this is a nationwide trend based on actual numbers. There is a great line from a Marx Brothers film, as my memory serves went something like this... "Our population has just doubled down here in Coconut Grove. Two people showed up by train and Mrs. Murphys cow just gave birth to a calf" So if we look at the "90% INCREASE IN FORECLOSURE" headlines we may instead want to look at the actual numbers.... but that would unfortunately take the wind out of the PERCEPTION. "But the real numbers aren't DRAMATIC enough to be headlines"...ahh there is the answer !

SECURE INDEPENDENCE

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Mon, 13 Aug 2007 14:47:15 -0500

DEALING WITH FEELINGS OF COMPARISONS

Being human we are prone to a number of fantastic emotions, or thought patterns. There seem to be none more restricting then those triggered by "negative imagination". This is where the opposite side of humility and spirituality can prosper, to the point of owning us.

For instance when it comes to comparing our successes

TRY TO REMEMBER THIS ......

The only bad that can come from another's success is when we allow it to own us.

Too often I see people welcome this pain into their lives.

"I am supposed to be happy that (insert name here) is doing well ?"

Obviously , YES.

Any other response would be detrimental to our ability to stay focused on our individual accomplishments.

TRUE FREEDOM COMES FROM A "SECURE INDEPENDENCE"

NOTHING ELSE

PETER GRUBBS

HERITAGE HOUSE SOTHEBY'S

INTERNATIONAL REALTY (732) 778 - 9700

pgrubbs1@comcast.net

WEB SITE :

http://www.pgrubbs.com/

SOTHEBY'S INTERNATIONAL REALTY (VS ?) CHRISTIES

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Mon, 06 Aug 2007 23:19:48 -0500

Check out this article in the Wall Street Journal on line , my response follows

http://www.realestatejournal.com/buysell/agentsandbrokers/20070806-casselman.html

Price Points and Service are not Synonymous

You may feel I am biased (as a member of the Sotheby's network), but read on anyway.

The idea behind the Sotheby's model is quite unique as I understand it. Neither a company nor an individual should ever feel it is appropriate to gear ones performance / professionalism to the price of what is being sold. Providing high end service regardless of the price of the product is a model of success.

Some of the pro-Christies quotes from this W.S.J. article really took me back, in more ways then one....

"He looked for a company that focused on the high-end and didn't give out "mixed signals."

"We do catch things that we don't approve of and advise the broker that this is not appropriate,"

To me these seem extremely reminiscent of those days of "Who shall we allow in our club ", sound familiar ?

Equating price point with caliber is very dated. Even though the article did not come right out and say it, it really did.

I particularly loved the quote "They've lost that high-end credibility"

There is no such thing as "high-end credibility" there is only credibility.

PETER GRUBBS

HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY RUMSON, NEW JERSEY 07760

(732) 778 - 9700

pgrubbs1@comcast.net

http://pgrubbs.com

ONE SENTENCE TESTIMONIAL

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Fri, 04 May 2007 06:39:44 -0500

Late last night a client called to check on a concern he had. He was not 100% sure that he understood. We went over it and the last thing he said, without thinking twice was "Wow, Pete, you are making this so easy."

Isn't it a great thing when your intent is understood and acknowledged ?

If you are a teacher, trainer or coach you have probably known the power of reward when hearing the same or similar things said to you .

Hearing "You are making this so easy" was all it took.

(Check out my website ) http://pgrubbs.com/

(Or contact me directly) PGRUBBS1@COMCAST.NET

DEALING WITH FEELINGS OF COMPARISON

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Sat, 28 Apr 2007 13:18:20 -0500

Being human we are prone to a number of fantastic emotions and thoughts (thought patterns). Sometimes none more fantastic (or fanatical) then those triggered by our negative imaginations. This is where the opposite side of "humility and spirituality" can prosper.. to the point of owning us.

For instance when it comes to comparing our successes, here are two office related statements where "All is Well"

The market is awful. No-one in my office is doing anything to speak of..."All is Well"

The market is great. Every single agent is doing better than expected. "All is Well".

Then there is that (quirky 99.99 percent of the) time when neither of those two are accurate statements.

That is when the sentence above comes into play. Being human we are prone to a number of fantastic emotions..

So here are some approaches I keep in mind when my MIND starts to take over. Ok for instance, Say if one of your co-workers gets all the great listings and the sales, too Here is a question you might want to ask yourself, and some observations ...

#1) "Would I rather see an agent I don't know have all these so-called "unfair successes" or one from my office, who I begrudgingly have to admit is a good person, one who I also must say, works hard? "

#2) "It is a GREAT indicator to see ANYONE doing well. It bodes well for everyones potential to do the same."

(Too optimistic for you, OK then turn it around .."When no-one is selling anything, that is when it is time to worry" )

AND IF YOU ARE REALLY DESPERATE

#3) "Today is not our last day to be productive. Tomorrow may bring something spectacular."

This list can go on and on.

The point is...

The only bad that can come from another's success is when we allow it to own us. Too often I see people welcome this pain into their lives. I actually had this said to me recently "I am supposed to be happy that (insert name here) is doing well ? " Obviously , YES. Any other response would be detrimental to our ability to stay focused on individual accomplishments.

Independent Contractors = Individual Pathways to Success.

WEB http://pgrubbs.com/

E-MAIL PGRUBBS1@COMCAST.NET

Real Estate "HOLIDAYS ?"

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Mon, 16 Apr 2007 09:29:46 -0500

Increasingly I find my client base consisting of first or second generation immigrants to the U.S.A. who hold on to the ways of "The old country". Not just in cultural diversity but also religious observances.(Personally I find it to be one element that adds to America's strength, diversity). So now when our "American Holidays" come and go, it is not necessarily a day of observance for all buyers and sellers.

I recently had a client tell me the following days would be available to show his home, one of them was December 25th. Another client signed a contract on the evening of December 24th.

Based on my own upbringing, there are days that the rest of my office will be with family. These are not days I observe in similar fashion. So I take floor time. And you know what ? I get calls ! Great calls that usually start with "Oh I thought I was going to be leaving a message" Most likely all other offices around you are closed. So if they are leaving messages on their answering machines, by the time the other agencies respond, it's too late !

Furthermore, the callers are inclined to be more open to talk about motivations and details. So much so that you can keep an easy conversation going until all bases are covered by the completion of the call. The obvious perk is the unspoken indicator, "This is my Full-Time Profession" and "Lets just talk about your situation".

Of my last three clients over December, none of them celebrated Christmas , and they were all from different heritages !

So next holiday, (Obviously not one that you celebrate yourself... unless of course you cant stand family for more than 2 hours) Take floor time ! The office is quiet. You will be able to work undisturbed, and who knows,you might just get the biggest Christmas gift imaginable for an agent ,a motivated buyer or seller !

HAPPY HOLIDAYS !!

Web http://pgrubbs.com/

E-Mail PGRUBBS1@COMCAST.NET

WHY DOES THE MEDIA REPEAT THE SAME OLD STORY ?

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Sun, 08 Apr 2007 16:37:18 -0500

Most people would say "It's to sell papers." Yet, one would think there is nothing truly important going on in the world to report. I love to listen to "media experts" on the topic of Real Estate. It just never ends. This obsession with "THE BUBBLE" . Sadly they put their money on the myth that our country is filled with pedestrian thinkers.

So please don't fall prey to what is printed in the newspapers or on TV. The market is alive . For some reason they want to keep this a secret. Just don't let it keep you on the sidelines ! There are great values and interest rates that are hovering right around 6% for 30 year fixed. Proportionally the same as it was in 1795. That's right 212 years ago.

Yet the seriously underestimated problem is The affect this misleading media hype actually creates. So when I hear, "Oh Pete they do it to sell papers", my reaction is ...Irresponsible (and I hate to call it journalism, I sadly believe journalism died years ago) Irresponsible reporting takes a naturally occurring "spark" and fans it into an inferno. And like an inferno, it is destructive.

Call me (732) 778-9700 if you would like to discuss this further...or list your house with me !!!!

E-MAIL PGRUBBS1@COMCAST.NET

WEB SITE http://pgrubbs.com

Professional Real Estate Relationship ?

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Wed, 28 Feb 2007 17:38:30 -0600

A few years ago a listing I had prompted almost every agent to ask about the owner "What does he do for a living?"

Well, obviously , none of our business. I would say one of the main reasons I procured this listing was due to respect I had shown during our first meeting.

For obvious reasons the more affluent or well known the client, the more sensitive they are to intrusive individuals.

So, nothing new here right ? Well I came across some research and wanted to share it with you. The following has been paraphrased

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

"In research done by Unique Homes magazine and The Institute for Luxury Home Marketing over 78% said..

"Privacy and Confidentiality" is the Number 1 special need that extremely affluent clients require . "

"The ability to be discreet" was also identified as a top criteria for selecting a real estate professional"

And my favorite... "Wealthy consumers want to know their agent isn't discussing their transaction over cocktails" .
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

There is a saying that goes ...

"It is better to bite your tongue now then have to eat your words later" and I believe that starts at the first meeting with remembering the reason we are there; To provide a service and conduct business.

To be known and respected is to think and act like professionals. Real Estate is a Profession.

E-MAIL PGRUBBS1@COMCAST.NET

WEB SITE http://www.pgrubbs.com/

PLANTING SEEDS

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Mon, 26 Feb 2007 01:54:11 -0600

I love the phone calls that start "You know, we were thinking..."

It never ceases to amaze me. The best way to insure a good crop is to plant seeds early. For example, at the listing speak of price adjustment timetables, suggest contingency plans later of how much renting their present home could bring in if they have already bought another home. The reason I say this,and do this is, as you probably know The only ideas people think are good ones are the ones they have come up with on their own.

We are human and we tend to forget sometimes that ideas we honestly believe we have come up with, started out coming from suggestions, suggestions made by those we trust.

Don't YOU LOVE the phone calls that start "You know, I was thinking .... " ?

PGRUBBS1@COMCAST.NET

http://pgrubbs.com/

WHY DO THEY KEEP KNOCKING US DOWN ?

PETER GRUBBS (HERITAGE HOUSE SOTHEBY'S INTERNATIONAL REALTY) — Fri, 23 Feb 2007 22:52:19 -0600

So please don't fall prey to what is printed in the newspapers or on TV. The market is alive. For some reason they want to keep this a secret. Just don't let it keep you on the sidelines ! There are great values and interest rates that are hovering right around 6% for 30 year fixed. Proportionally the same as it was in 1795. That's right, 212 years ago.

Yet the seriously underestimated problem is the affect this misleading media hype actually creates. So when I hear, "They do it just to sell papers", my reaction is ..."Irresponsible (and I hate to call it journalism , I sadly believe journalism died years ago) Irresponsible reporting takes a naturally occurring "spark" and fans it into an inferno. Like an inferno, it is destructive.

Call me (732) 778-9700 if you would like to discuss this further...or list your house with me !!!!

PGRUBBS1@COMCAST.NET

http://pgrubbs.com