Rob's Blog

Real Deals in New Construction

2007-12-04T14:06:20Z

Have you been dreaming of that picture-perfect home with the snazzy kitchen, modern fixtures, and manicured lawn? If so, then new construction might be a great option for you -- and now is a fantastic time to be in the market for this type of housing!

Here's the deal. We are nearing the end of the year and homebuilders are struggling to achieve their sales goals. In addition, they are feeling the pain of a declining market, increased competition from resale properties, pressures from shareholders, declining consumer confidence, interest rate concerns, and the list goes on... So, what does all of this mean for you? They really, really, REALLY want your business. They want it so much that they are slashing prices, offering more incentives (e.g., free finished basements, discounted options, free flat screen TVs, etc.), and generally doing whatever they can to make the sale.

Here's what you may not know... When you buy new construction, the deck is stacked in favor of the builder. They have trained salespeople, they have their own contracts, they have rigid policies, and they require non-refundable deposits. On top of that, there are many issues that can arise during the construction process that will result in delays, frustration, and money out of your pocket, if you don't have someone in your corner giving you advice.

How do I know this? I used to work for a homebuilder. One of the best in the business, in fact. I know the industry from the inside out, and, as a result, I can help you negotiate the best price & terms for your new home. I can also help you anticipate and avoid the costly pitfalls that can occur throughout the process.

Want to know more about how to get great deals in new contstruction? Curious about which builders are the most reputable? Contact me BEFORE you start visiting model homes, and I'll share all of my insider knowledge with you for FREE!

Foreclosure Basics

2007-12-04T14:04:38Z

Unless you've been living in a cave for the last year or so, you've no doubt heard that foreclosures (aka "bank-owned" properties) are on the rise. A foreclosure happens when a homeowner can no longer pay their mortgage and, as a result, the bank obtains ownership of the property. This unfortunate event for the homeowner can create some great opportunities for buyers, provided that you know what you are getting in to first...

Fact #1: banks are in the business of lending money, not owning real estate. Fact #2: Banks want to get rid of properties as fast as possible upon foreclosure. These circumstances mean that they are willing to sell properties at a substantial discount, as compared to other similar properties on the market! That's the good news.

The bad news is that bank-owned properties are typically sold "as-is" and are often in a state of disrepair. After all, if the owner couldn't pay the mortgage, do you really think that they were diligent about maintaining the rest of the home? The solution is to get an inspection, so there will be no surprises later! Also, the bank usually has some extra procedures to follow and forms to fill out in order to comply with their company policies -- both of which can cause delays and frustration.

So, if you are a savvy buyer with an eye for finding "diamonds in the rough," or if you plan to do a major renovation, you should really give consideration to bank-owned properties. However, if you want a pretty house that is move-in ready, I'd advise you to keep your distance! Either way, make sure you get good advice to determine the best course of action based on your needs.

Get Ready to Winterize

2007-11-29T09:23:59Z

Now that colder weather is upon us, I wanted to pass along some tips for ways that you can prepare your home for the winter. It's not too early to start thinking about these things, so don't wait too long or you might be sorry!

TIP 1 -- Check the heating system. Check the filter, pilot light and burners in a system fueled by gas or oil. Fireplaces, boilers, water heaters, space heaters and wood burning stoves should also be serviced every year.

TIP 2 -- Clean ducts in the heating system. Clean and vacuum dust from vents, baseboard heaters and cold air returns. Dust build-up in ducts is a major cause of indoor pollutants. In a home that is shut tight for the winter, dust increases the possibility of illness. Ducts should be professionally cleaned about every three years.

TIP 3 -- Test fire and smoke alarms as well as carbon monoxide detectors. Often alarms and detectors go unattended. Batteries should be checked every six months to ensure that they're working.

TIP 4 -- Remove excess leaves and damaged branches surrounding the house. Now that leaves have fallen off of trees, it's a good time to remove any dead branches. Dead branches have the potential to break and fall, ruining roofs or decks.

TIP 5 -- Maintain gutters. Remove all debris that can slow or impede the ability of the water to drain effectively from the roof. Trapped water can freeze then thaw, an action which could be destructive not only to the gutters themselves but to the adjoining roof as well.

TIP 6 -- Inspect the roof. Look for damaged or loose shingles, gaps in the flashing at joints with siding, vents and flues, as well as damaged mortar around the chimney. Proactive maintenance can prevent emergencies and expensive repairs.

TIP 7 -- Inspect exterior walls and window sills. Check walls and window sills for damage such as cracks, gaps, loose or crumbling mortar, along with splitting and decaying wood. Wood trim and siding can suffer from deterioration or loose paint. Caulk exterior joints around windows and doors, which helps keep the home weather tight and helps to lower heating bills.

TIP 8 -- Maintain steps and handrails. Repair broken steps and secure loose banisters. Broken steps are easily hidden beneath snow, which could cause a dangerous fall. Similarly, a person slipping on ice will grab a handrail for support.

TIP 9 -- Prepare storm windows for installation. Check all weather stripping and all fasteners. Well-maintained and properly fitted storm windows will help to save on energy costs during the winter months.

TIP 10 -- Pools, sprinkler systems and outside faucets should be shut down. Homeowners can shut down outside faucets, while the other tasks are best performed by industry professionals to prevent cracked pipes and pool bottoms.

Beware of the "Numbers Gang"

2007-11-29T09:22:43Z

This month, I wanted to expose an increasingly common "trick" that many "ghoulish" real estate agents are playing on unsuspecting clients. It goes something like this...

You're planning to sell your property and you invite one of these agents over to present their marketing plan. During the discussion, they proudly proclaim that your property is unique, wonderful, and worth a whole lot more than you expected! Plus, they are the "neighborhood expert" so you can trust that their valuation is spot-on. After hearing this presentation, you're elated, relieved, and chomping at the bit to hire this agent. Sounds good, right?

Wrong. You've just become the latest victim of the "Numbers Gang." Now that we are in a softer market, this technique is becoming even more popular as unethical agents compete for business. In a nutshell, they're inflating the value of your house in an effort to "buy" your listing. Unfortunately, it works -- people love to be told what they want to hear. The agents hope you'll overlook the fact that they aren't basing their opinions on recent market data. They hope your eyes will be so full of dollar signs that you won't even notice the lack of a marketing plan. They are setting you up for frustration and failure, and you won't even see it coming!

Hopefully, you're smart enough NOT to buy this modern-day snake oil! The decision to use a Realtor should be based on your confidence in that person's abilities, not on a smoke-and-mirrors sales pitch! I, on the other hand, always provide my clients with an information-based estimate of value, along with a clear marketing strategy that will get results. Want to know more about how my approach is different from that of the "Numbers Gang?" Send me an email & let's get started!

iPod Giveaway!

2007-11-29T09:20:09Z

I will now be running a quarterly referral program, complete with some great prizes to sweeten the deal! Here's how it works...

Send me the names and contact information (phone number and/or email) of your friends, family, neighbors, etc., who may be planning to buy or sell real estate. When they become a client of mine, your name will be entered into the quarterly drawing. Multiple referrals get multiple entries, and, yes, you can refer yourself too!

The first quarterly giveaway will be for a new iPod and it will take place at the end of December. On top of that, all individuals who send in referrals throughout the quarter will receive a small gift from me, as a thank you for your trust & loyalty.

So, what are you waiting for?? Spread the word and keep those referrals coming!

Buyers -- CARPE DIEM!

2007-11-29T09:18:07Z

You're thinking about buying a home. Lucky you! Now is a great time to be a buyer. The market is loaded with homes for sale, and sellers are downright desperate to make a deal (obviously their agent hasn't read the previous article). On top of that, mortgage rates are still very reasonable, and most lenders even have special incentives and flexible guidelines in place to earn and keep your business.

So, what should you do first? Get representation. I know, I know... you're a smart, savvy consumer -- why on Earth would you need a buyer's agent? Simple. Because someone like me can optimize your time, save you money, and make the whole process stress-free.

Oh, and by the way, my services are free of charge to buyer clients! Really, it's the biggest no-brainer in history.

Strategic Selling

2007-11-29T09:13:20Z

It's a buyers market. Average home prices are declining. What should sellers do? First of all, don't panic. There are lots of potential buyers out there, and the key to successful selling involves an understanding of 3 key factors that are driving sales (no, it's not "location, location, location")... Homes that are selling these days are (1) priced appropriately, (2) kept in outstanding condition, and (3) aggressively marketed. Unfortunately, the market is full of properties that are over priced, in bad shape, and listed by old-school agents who don't understand marketing. The bottom line is that they don't have a strategy that will lead to success. As the saying goes, "failing to plan is planning to fail."

I, on the other hand, have an effective strategy to get REAL results for my sellers. I start by helping them analyze market data to determine a target price for their property that will generate buyer traffic. I also am a strong supporter of staging properties to increase the "wow factor" and create a winning first impression. Finally, and most importantly, I use cutting-edge technology to advertise my properties, follow up on leads, and convert casual lookers into qualified buyers. All of these activities help my clients to sell their homes quickly and for the most money possible!

Pricing Your Property to SELL!

2007-11-29T09:08:33Z

Without a doubt, the most delicate part of my job these days is helping clients to set competitive asking prices for their property. Price is THE most important factor that is driving sales right now, and getting it right is critical to a successful outcome.

The purpose of establishing an asking price is to generate buyer interest. An attractive price gets potential buyers through the door. High buyer traffic will produce more (and better) offers sooner. If we set the asking price too high, we will alienate many qualified buyers. Then, your property will sit until the asking price is lowered (called "chasing the market") to the point where buyers are interested enough to make an offer.

Ultimately, all properties sell for market value, regardless of the asking price. Moreover, all the marketing in the world won't sell a house that is overpriced. In fact, overpricing with the intention to negotiate downward ends up hurting you in a buyer's market. Why? Because time is your enemy. Buyers are patient, informed, and they have many other choices. Every day that your house doesn't sell means more mortgage expense for you, and it increases the perception in the minds of buyers that "something is wrong with your house." Once your house falls into that category, you're more likely to get lowball offers, putting you in a worse position than you would be if you priced it correctly to begin with.

So, forget what you read in Freakonomics... Realtors want to help you sell your property for the highest possible price. Why? Because our business is largely based on referrals and repeat clients, and doing anything less would be counterproductive to our long term success! Keep in mind, though, that our primary responsibility is to get your house sold, and the best way to do that is to price it right from the start.

Who Needs a Realtor, anyway?

2007-11-29T09:06:39Z

I always enjoy talking to people who think that they don't need a real estate agent to sell their home. Their rationale is usually based them wanting to maximize their gains from the sale by avoiding the "expense" of hiring an agent. Real estate services, although valuable, do cost money -- no argument there. However, not using a real estate agent can cost you even more...

A good real estate agent can help you price your property competitively, market it aggressively, qualify potential buyers, and ensure that all of the details are successfully completed throughout the transaction. However, when owners choose to sell their own homes, they have to take on all of these activities themselves. The reality is that many people just don't have the time & expertise required to do so. As a result, these for sale by owner (FSBO) properties are often overpriced, undermarketed, and in less than tip-top condition. Unfortunately, what ends up happening is that the FSBO properties tend to linger on the market, the owners get frustrated, and the selling price ends up being lower than the owners hoped for-- that is, if it sells at all!

So, who needs a Realtor? YOU do. After all, the facts speak for themselves -- homes sold with the help of a real estate professional in 2006 sold on average for 32 percent more than FSBO sales. The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions (source: NAR). Which would you rather have?

Although it may be tempting to "go it alone" when you're ready to sell your home, do yourself a favor and give me a call. I'll show you how my expertise, approach, and techniques will help you get the REAL results you are looking for!