Jules's Blog

10 TIME SAVING TIPS / WEBSITES FOR REAL ESTATE PROFESSIONALS - Best of all they are almost all FREE

Jules Yates (Exit Realty Paramount) — Wed, 14 Oct 2009 17:02:06 -0500

Visit these sites for mostly free online services to save you a lot of time and make you look more professional.

1. ONLINE PHOTO STORAGE (Free) - Posting Online Photos that are too large to email. Upload to Picassa and email the link. http://picasa.google.com

2. VISUAL VOICEMAIL (Free) - If you want a custom greeting for each and every contact try try YouMail (www.YouMail.com). Yes there is an app for that on the iphone.

3. GET THEIR VOICEMAIL (Free) - If you want to get someone's voicemail without ringing their phone (as we all want to do occasionally) try SlyDial (www.SlyDial.com) Yes there is an app for that on the iphone.

4. LARGE FILE STORAGE ONLINE ($99 yr.) - The Mobile Me (www.me.com) site on Apple.com will allow you to store and huge files that you could not otherwise store (up to 20 GB). The service has a lot of other features for the iphone but the storage feature is worth the $99 per year fee. You can email a link to a large file easily with the mobile me app.

5. SATELITE IMAGES (Free) - Very high quality aerial photos can be found at http://www.bing.com/maps/?FORM=Z9LH9. If you use the PrtScn feature on your keyboard you can capture the image and past it where ever (subject to copy write of course).

6. EASY WEB SITES - Network Solutions offers very easy to use web design templates for the low price of around $9.95 per month. With a little skill you can easily create custom websites for individual listings (View some of mine - www.LiveOnEastBay.com, (www.AllLakefront.com, www.WolverineHome.com). All were created in about 6 hours and they are fairly easy to do and it impresses your seller. Create a site and post regularly to craigslist.

7. EASY WAY TO POST FLYERS TO CRAIGSLIST (Free)- Use Postlets (www.Postlets.com) to easily create a flyer which can be posted to craigslist in HTML format. This is a free service.

8. WEB STATISTICS (Free) - Use Statcounter (www.Statcounter.com) to easily track traffic to any of your websites. This free service will allow you to see dozens of reports for any number of websites. You can create a separate login for your clients so they can see the stats. It impresses sellers to see traffic you generate especially if you create a custom website for their listing.

9. CHEAP DOMAINS - If you want a custom Domain cheap go to 1 and 1 (www.1and1.com). Dot com domains are just $8.99, Dot net domains are just $4.49 per year and include webmail, private registration, 5 sub domains, starter web builder homepage and a money back guarantee. It used to include web forwarding but I am not sure it still does.

10. VIDEO EMAIL (FREE) - Get Skype (www.Skype) and with your webcam and a microphone you can easily and quickly send free video emails. These have high impact and can be used to present an offer to multiple Sellers so they all hear the same information. Try it you'll love it.

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JOIN EXIT REALTY!!

Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com.

Have you considered a career change or considered making the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.

Hunting For Foreclosures??? Keep this in Mind if the property is located in a cold climate

Jules Yates (Exit Realty Paramount) — Tue, 13 Oct 2009 19:26:21 -0500

As temperatures drop in the area it reminds me of shopping for foreclosures homes last winter with buyers. We would see these bright orange and green stickers in the kitchen and bathroom stating the home had been winterized. Often times it was done in late fall or occasionally in the middle of winter.

Either way keep one thing in mind... always assume the pipes are frozen. As I discussed with a buyer this evening, rarely is a home winterized immediately after the heat is turned off. Generally it is 30-60 days after a bank takes back a home in foreclosure before it is winterized.

I hate to say it but many times even if they are winterized early enough they are not done properly as was the case for one of my buyers last November. They were purchasing a home that had hot water heat. On our initial visit there was no evidence of frozen pipes but after the offer was signed and we had temps below 0 for a week all of a sudden several pipes in the basement burst.

In that case there was $8,500 worth of damage to the heating and water system Fortunately for my buyer the Seller (and in this case the buyers lender) reluctantly agreed to cover the repairs. The moral of the story always assume the pipes are frozen and get a competent inspection even if the home claims to be winterized.

JOIN EXIT REALTY!!

Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com. Have you considered a career change or considered making the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.

Great News For Michigan Real Estate Markets - Lansing, Grand Rapids and Saginaw in top 10 markets in the US.

Jules Yates (Exit Realty Paramount) — Tue, 13 Oct 2009 19:09:10 -0500

Finally...here is some great news for the Michigan Real Estate market. 3 cities in Michigan were ranked in the top 10 in the nation for House Hunting. You can get your best bang for the buck in these cities according to the Today Show. The criteria were cities where home prices have dropped the most but now are shooting up with record prices.

#1 Sarasota FL - $175,800 median home price
#2 San Francisco, CA - $472,900 median home price
#3 Lansing, MI - $81,300 median home price
#4 Marietta, GA - $121,400 median home price
#5 Grand Rapids, MI - $85,000 Median home price
#6 St. Petersburg, FL - $140,900 median home price
#7 Naperville, ILL #7 $204,300 median home price
#8 Trenton NJ #8 - $254,300 median home price
#9 St. Louis, MS - $133,400 median home price
#10 Saginaw, MI - $55,700 median home price

Watch the TODAY SHOW VIDEO (October 13, 2009) - Click the Link Below

http://today.msnbc.msn.com/id/26184891/vp/33191501#33191501JOIN

Join EXIT REALTY!!

Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com. Have you considered a career change or considered making the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.

TIP for those of you using Power Point for Listing Presentations

Jules Yates (Exit Realty Paramount) — Sun, 11 Oct 2009 21:38:16 -0500

I'll spare you and get right to the tip - Create an additional user (Call it Buyer Presentation, Seller Presentation, etc). Why go to the trouble? I'll tell you.

I had the pleasure of attending the Michigan Association of Realtors Conference here in my home town of Traverse City last week and during a Short Sale seminar I got a great idea. The speaker, Will Weaver, said it was a great idea to open your computer prior to entering a home and get your presentation ready so you don't have to fumble for it at the kitchen table. This will work on a desktop as well.

I thought that was a great idea as it can be difficult to fumble through all the files to find your presentation and if you are like me your desktop is cluttered with files and folders. Often times it can be difficult to find what you are looking for with the pressure on so why not eliminate everything else but the few files you regularly use for a listing presentation. Put them right on your desktop and suddenly no more searching for files.

You can even create a custom desktop background with your photo and logo for an added bit of professionalism. This is how you would add a new user on Windows XP:

TO ADD A NEW USER:

You must have a computer administrator account on the computer to add a new user to the computer.

Open User Accounts in Control Panel.
Click Create a new account.
Type a name for the new user account, and then click Next.
Click Computer administrator or Limited, depending on the type of account you want to assign to the new user, and then click Create Account.

Notes

The name you assign to the account is the name that will appear on the Welcome screen and the Start menu.
The first user you add to the computer must be assigned a computer administrator account.

Notes

To open User Accounts, click Start, click Control Panel, and then double-click User Accounts.

NOTE: If you use a different operating system pull up the help feature and search "Add a new user"

______________________________________________________________________________________________

JOIN EXIT REALTY!!

Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com. Have you considered a career change or considered making the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.

Fall Colors Still Not at Peak in the Grand Traverse Region

Jules Yates (Exit Realty Paramount) — Sun, 11 Oct 2009 20:10:12 -0500

This has been by far the strangest summer and fall I can recall since moving to Northern Michigan in 2001. This summer was cooler than normal but mainly dry which was a good thing in my mind. September was wonderfully summer and warm and here we are in October and it has been less than pleasant.

I took a drive this afternoon out to Bellaire, Michigan and as I was driving through the rolling hills of Antrim County I was surprised to see so many green leaves. Sure we had the occasional bright red or yellow maple tree along side the road but the majority of the trees are still green as they can be.

Just last week my brother came to visit from Lansing and he said he too was surprised that he did not see the color change. I have been told that lower Michigan has more color than we do here in Northern Michigan. Our proximity to and the warmth of Lake Michigan, Grand Traverse Bay, Lake Skeegemog, Elk Lake and Torch Lake creates a micro-climate which seems to delay the turning of the leaves.

If you live in lower Michigan and thought the color tour may be over... I assure you it is not. Please come up and visit us here in Northern Michigan this fall.

JOIN EXIT REALTY!!

Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com. Have you considered a career change or considered making the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.

SELLING 101 - A few simple words... "If I could... would you"

Jules Yates (Exit Realty Paramount) — Sat, 10 Oct 2009 15:01:35 -0500

Now I am sure many of you out there may comment that this is nothing new and I certainly don't proclaim it to be but here is a very simple techniques to get you more sales. Remember these words: If I could... would you. These words are the simplest way to get deal. Here are some examples:

• You are with a buyer and they say," I like it but I wish it had hardwood floors". You say, "If it could get you hardwood floors at closing, would you be willing to write and offer today?"

• You are with a Seller who says, "I really want to get $350,000 for my home". You reply "If I could list your home for $350,000 are you prepared to sign a listing agreement today?"

• You are with a buyer looking at a $500,000 home who says, "I love the home but I don't think it is worth more than $300,000." You say, "If you could buy it for $300,000 are you prepared to write the offer today?"

• You are with a buyer and they say," I like it but I wish it had a newer kitchen (roof, deck, addition or whatever)". You say, "If I could get you financing that would allow you to put in a new kitchen, would you be willing to write and offer today?"

These are just a few examples of how to go for the close. The bottom line is to get the offer in writing first and worry about the negotiations later. Once a buyer is committed to the property they will take possession in their mind and will be more likely to negotiate or work out a reasonable solution later.

JOIN EXIT REALTY!!

Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com. Have you considered the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.

THINK YOU CAN'T BUY A HOME...THINK AGAIN!! - If you make less (yes...less) than $22,500 you CAN BUY A HOME right now!!!!!!

Jules Yates (Exit Realty Paramount) — Sat, 10 Oct 2009 14:07:57 -0500

This Past week I had the privilege of attending the Michigan the Michigan Association of Realtors convention at the Grand Traverse Resort here in Traverse City. Having the convention here in my hometown was simply a blessing. If you can believe it this is the first MAR convention I have attended in the 21 years I have been in business and all I can say is... wow.

One of the most important things I learn (or became more familiar with) was a financing program through RD (Rural Development) and specifically what is called RD Direct. I am confident that the majority of the population (and many REALTORS) are not aware of how powerful this program can be to first time home buyers or those with a low or very low income.

Did you know that a single person (living in Grand Traverse County) with "decent" credit and an income LOWER than (yes... lower then) $22,150 per year (or equivalent of less then $11 per hour) more than likely can qualify for a RD Direct subsidized loan. The rates are different for each county and are higher if you have additional family member living with you.

This is a $0 DOWN loan which basically gets you a 33 year fixed mortgage at 1% interest (if you qualify). You can buy an existing home or custom build A NEW HOME. You may not realize this but right now I work with a builder who can build you a new 2 bedroom 1 bath home "STICK-BUILT" Home. This includes a basement, garage, appliance, air conditioning on a 1 acre lot for $130,000 with NO MONEY DOWN. Both land costs and building costs are way down so why not take advantage of this opportunity.

Now that may not quite sink in just yet but for example on a $150,000 purchase (a quite respectable home these days in Traverse City) the payment with taxes and interest would be around $700-$750 per month ($445 plus $275 for taxes and insurance). In a traditional transaction the monthly payment would be $774 plus $275 or $1,049. That is a $275 monthly savings.

Again to put that in perspective that is the equivalent to buying a $85,000 home under a conventional mortgage at 5% interest versus a $150,000 home at 1%. We are talking about the same payment, more house and a lower interest rate. That 1% rate is like free money to you and it gives someone who qualifies additional BUYING POWER.

EXAMPLE ($0 down programs): With a Conventional mortgage in the amount of $85,000 at 5% interest the monthly mortgage payment would be $774 PLUS $275 for taxes and insurance for a total of $1,049 per month.

With an RD Direct loan you could buy a $150,000 home at 1% interest with a payment of $445 PLUS $275 for taxes and Insurance and get a $275 per month subsidy for a total of just $750 per month.

If you are unfamiliar with mortgages and finance this all can seem like a lot of mumbo jumbo but trust me when I tell you this... there has never been a better time to buy a home then now. I'll be happy to explain it to you in person so that you get a better understanding but all I want to do now is make EVERYONE aware that buying a home is possible for many people but they just don't realize it.

I am sure some of you say...what is the catch. Well as far as I am concerned, there is no catch. If you are looking for some thing than the worst case would be what is called the recapture. What that means is the government is subsidizing your loan and making about $275 per month of your payment for the time you have the loan.

Since they are in essence helping you, when you go to sell your home (and lets say it does not go up in value) you will not owe any of that money back. If on the other hand it appreciate in value, then in that case you will be required to pay back a portion of the profit. It sure seems fair to me so don't let someone tell you not to check into it.

Visit http://www.rurdev.usda.gov/RHS/sfh/brief_rhdirect.htm for more information or call me anytime at 231-218-5199. You may be asking what I get out of this and the answer is simple. I get to help people buy a home and the seller pays me when I sell a one. Everyone wins and you get yourself a new home.

JOIN EXIT REALTY!!

Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com. Have you considered a career change or considered making the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.

How Selling Real Estate and Arguing with your spouse... are similar

Jules Yates (Exit Realty Paramount) — Sun, 30 Aug 2009 18:28:11 -0500

It occurred to me that all too often real estate professionals just need to put things in perspective sometimes. Have you ever noticed that when you get in an argument with your spouse (significant other, etc.) you often loose site of what the argument was really about?

You often get distracted and end up arguing about something completely different. To solve the argument you need to do what? You need to get to the root of the problem. You need to ask the right questions to solve whatever issue you had with the person you are arguing with.

How many times have you shown a home only to find out the buyer didn't like the fact that the home didn't have hardwood floors? You say ok and move on to the next home. There you soon discover the buyer doesn't like the kitchen so you move on again, and again, and again. What is the net result? No sale.

If you were to apply the idea of getting to the root of the problem the out come may be a little different. How so you may ask? Well if in the scenario earlier the buyer said they didn't like the home because it did not have hardwood floors you might try asking this... "Mr. Buyer... if the home had hardwood floors, would you be interested in owning it?"

If they said, "Yes" you could simply add a provision to the purchase agreement that the buyer would get $X for an allowance to replace the floors. If the seller rejects it them no harm...move on. The point I am making is to be sure to ask what the real problem is before moving on to another home.

Too many salespeople don't ask the right questions and simply wait for the buyer to say yes or no. It is important to always remember to get to the root of the problem.

FORECLOSURE BUYING 101 - Michigan Foreclosure Laws

Jules Yates (Exit Realty Paramount) — Thu, 27 Aug 2009 20:07:37 -0500

It seems that at least once a week or more I get a call on one of our listings and at some point the discussion about foreclosure comes up. That is not surprising, The part that surprises me is the amount of misinformation that is out there in regard to foreclosures, how to buy them, where to buy them and the foreclosure process in general.

Just this afternoon I got a call from a potential buyer who heard from a neighbor that one of my listings was in foreclosure. He said, "I heard it was in foreclosure and so the bank must own it right?" I told him, "No... it is in foreclosure but still within the 1 year redemption period." and asked if he was interested I owning the property.

He continued to probe into the details of the foreclosure which is when I asked him if he truly understood the foreclosure process. I soon discovered that he had been given a lot of bad advice from other people. The first thing one needs to know is just how the foreclosure process works. The process goes something like this:

AFTER 30 DAYS LATE - Most lenders will call you within 15 days after missing a mortgage payment. Any time you're late on your mortgage payment it's technically a default, but generally a lender would not foreclose until you are at least 90 days late.
AFTER 60 DAYS - After missing a payment for 60 days you will generally continue to receive calls and you may receive a letter offering to assist you. CALL YOU LENDER because they want to help you. Often times they will discuss options available to you.
AFTER 90 DAYS - Generally after 90 has passed without payment (especially if thee is no contact with the lender) the lender will begin the foreclosure process. You will be notified in advance and generally be given the opportunity to bring your payments current or make other arrangements.
NOTICE OF FORECLOSURE - Approximately 14 days after foreclosure is started a notice of foreclosure is published. The notice must be published once a week for 4 weeks in a newspaper that circulates in the county where the property is located. The notice must also be conspicuously posted at the property and the lender has a right to enter the mortgaged premises for this purpose. As a homeowner you have rights at this Point. The borrower can cure the default and keep the existing financing prior to the sale if they pay all of the payments that are past due prior to the sale date. They could also sell the house and pay the loan off in full (or ask for a "Short Sale" which is discussed later).
SHERIFF'S SALE - In Grand Traverse County the Sheriff's sale is held on the second floor of the Court House twice a month. Currently approximately 15-30 homes go up for sale every other week. It's an auction and the house is sold to the highest bidder over the minimum bid (which is established by the lender prior to the sale). In Grand Traverse County approximately 97% of all mortgages are purchased by the lender. The lender will buy the property and Sheriff's Deed is recorded. At this time the lender (or highest bidder) owns the home but YOU DO NOT HAVE TO MOVE OUT OR ALLOW ANYONE ACCESS until the redemption period expires. The amount of the sale is typically the principal balance of the loan plus interest, late charges and legal and court costs.
REDEMPTION PERIOD - The rules can vary, but in Michigan the redemption period is 6 months for single family homes on less than 3 acres. If the property is over 3 acres the statutory redemption period is 12 months. During this time the homeowner may continue to occupy the home (no payments are made) and has a right to redeem the property by paying the full amount of the sheriff's sale (this could be less then the original balance of the loan) plus interest at the rate of the original mortgage. This could be done by getting a new mortgage or selling the home.

Take note: The redemption period can be reduced by the court to as little as 30 days if the property is abandoned). Generally after a sale, the lender will hire an asset protection company to keep an eye on their property. Often times someone will drive by and determine if there appears to be anyone living in the property.

If at any point the property appears to be abandoned, the lender may attempt to shorten the redemption process by court order. In that case a notice will be sent to the last know address as well as posted on the property. The homeowner will be give 15 days to respond or the court may deem the property abandoned and the blender will take possession. Any remaining personal property may be removed.

Foreclosure is a long and arduous process and circumstances will vary with each and every lender. The above example is just that an example. If you are having trouble making your house payments the best thing to do is to be honest about it with your lender. Call them and be prepared to explain your situation in detail. The bank does not want to foreclose so they are generally willing to try to create a workout plan. If you're having trouble making your house payment the best thing to do is to face up to it early and you can probably work things out.

Other options/alternatives to save your home.

If you have come to the conclusion that you just can make your current mortgage payments, you have several options to consider. There are several options that your lender may offer you if you miss a payment and want to avoid foreclosure:

A revised repayment plan. If you suffer a short-term financial setback (expensive car repairs, a medical emergency), your lender may provide some flexibility by agreeing to let you pay off your deficiency in several installments over the next several months.

Loan modification. Many mortgage servicers can adjust the terms of your loan -- most often by lengthening out the amortization schedule of your loan, lowering the interest rate or rolling the deficiency into your loan and reamortizing the new balance, all in an effort to bring your loan current. No lender wants a mortgage in default.

Short sale. The subject of this site, the lender may allow you to sell your home for less than the outstanding loan amount, takes the proceeds and forgive you of any remaining debt.

Short refinance. The lender may release you of your existing debt and refinance the outstanding balance into a new loan.

Refinance with a "private money mortgage" loan. You may not like the high rates and fees for this type of loan, one from a private lender, but it may allow you to buy time to sell your home in an orderly fashion and avoid default or foreclosure.

For More information on short sales please visit my website http://www.ExitShortSales.com or email me at jules@julesYates.com

As for buying a foreclosure

There is a lot of information out there about buying foreclosed homes and some of it is true and a lot of it is just plain false. I will try to clear up some of the basic misconceptions about foreclosure properties:

First let's get familiar with the basics. Foreclosure property or bank owned property (now owned due to foreclosure) is referred to in the business as "Real Estate Owned" (a REO property). At this point the home is no longer in foreclosure as the bank (or lender) is the title holder.

Properties that are still in possession of a homeowner facing foreclosure is known as a "Pre-foreclosure property" or possibly a "Short-Sale". Many investors look for these distressed properties as many times they can be purchased for less than the current market value. Are there deals out there? Yes there are, but you need to be aware of what to expect when looking at REO properties:

1. WARRANTY - You will be buying a home "as-is" with no warranty.

2. COINDITION - Rarely is there any information available about the previous owner or the condition of the home.

3. UTILITIES - When looking at these homes the utilities will usually be disconnected as lenders do not want to pay high utility bills

4. FREEZE DAMAGE - If you purchase a home that went into foreclosure during the winter months, you need to have the home inspected as often times there can be freeze damage, even if the property was supposedly winterized.

5. FINANCING - In many cases your financing options will be limited as many of the properties will not qualify for many government programs (FHA, RD, VA, etc.) as there may be guidelines that the property must meet.

6. INSPECTION - When a property is appraised it may require you to put the utilities in your name (prior to ownership) so that a proper inspection may be done. Also the appraisal may require you to have the utilities on as well. If it is in the winter you may be required to pay to have the home de-winterized and then re-winterized for the inspection. Rarely will these costs be covered by the seller.

7. CASH BUYERS - If you are a cash buyer or you qualify for conventional financing, the inspections, etc may be optional. Consult your real estate professional for advice.

COMMON MYTHS

1. Homes can be purchased for pennies on the dollar

While there are often some very good deals, rarely will a lender sell a property at a significantly reduced price. Generally you can expect to save around 10-20% on average. An experienced REALTOR can help you find the best deals out there.

2. All REO properties are in poor condition

Although many REO properties are in need of repair, others are in like new condition. Again an experienced REALTOR can help you find the best properties out there.

3. You should contact the banks directly and ask about their REO inventory

Most larger lenders hire a licensed professional to market their property. Your best source for bank owned (REO) properties is a local REALTORÒ who specializes in REO properties

4. You can not get 100% financing on bank owned properties

If you (and the home) qualify for certain government programs you may be able to purchase a REO property with no money down. In fact there are several programs which are available for those who make less than $71,750 (for a family of 4 in Grand Traverse County) or $50,250 if you are single. Ask your REALTOR to recommend a lender who specializes in these programs.

5. I can't but a home with little or nothing down if the property needs repairs

There are certain government programs available for homes in need of repair (or that won't qualify for other programs). These special loan programs will require the property to be repaired after closing by a licensed professional. The amount of the repairs will be added to the loan amount so you will need to qualify for the purchase price PLUS the cost of the repairs. Consult your REALTOR for more information.

6. I have to pay to sign up on special websites to get list of foreclosure properties

No you do not. Your REALTOR can easily provide you with a list of bank owned properties. Ask to be set up on an automated email so you find out about the properties as they are entered in the MLS.

7. The market is still falling so I should wait to buy a home

Absolutely not. While the market may not have bottomed out, timing the market is a challenging task as each market is different and the statistics for each type of property (single family, vacant land, waterfront, etc.) is also different. Also interest rates are at record lows and as long as you are going to hold your property for several years you should be in a great equity position once the market does correct itself and it eventually will.

If you wait, interest rates may go up, financing option may change and prices may increase. Remember if you know we hit bottom and so will the rest of the world. When that happens sellers will be less flexible and the deals will evaporate fast.

HOMEBUYING 101 - Step 1... Get of the Fence!!!!

Jules Yates (Exit Realty Paramount) — Thu, 27 Aug 2009 18:27:47 -0500

Even after 20+ years buyers still amaze me. In a market with record low prices, readily available financing, record low rates and mountains of foreclosures all there for the picking... Buyers are still sitting on the fence waiting. Waiting for what I ask?

It seems that despite how good a buy something is, buyers are always looking for a catch. I say a program on television (20/20 I believe) where a man in a suit was standing on the street corner handing out crisp $20 bills and almost no one would take one. I was amazed. It just goes to show how most people believe the saying that "if it's too good to be true".

I am convinced that the same applies to real estate today. I am seeing some fantastic deals selling in our area everyday. How do people get such great deals? Simple...THEY GET OFF THE FENCE and write an offer. No other time in the past 20 years have I seen so many sellers willing to practically give away their property.

To all buyers I say... WRITE AN OFFER.... Please! It seems that I tell every single buyer that same thing and what do I generally get? Nothing... no offers. Now I recognize that there has to be some interest to begin with but what is holding everyone back I wonder?

If I were in a position to buy a home or property, the first thing I would do is get in touch with a REALTOR who is an expert in the area I am looking and sit down with him or her and devise a game plan. I'd enter into a buyer broker agreement and I would get them out hunting for me.

The key to success is as simple as:

Have your financing or proof of funds lined up in advance
Do your homework and know the market
Learn what is actually selling and for how much (learn the comps)
Go look at a lot of properties so you'll know the good one when you see it
Don't be afraid to write and offer... if its not accepted you are under no obligation and have little to no risk
Write your offer carefully leaving yourself an out for financing and inspections

If you take those 6 steps you will find that you will eventually find yourself laughing all the way to the bank. In 10 years (at least in this area) you'll be so proud of yourself because on the grand scheme of things... everything is a bargain now.

Feel free to contact me for assistance in buying or selling in the Grand Traverse Region at jules@julesyates.com.

Home Buying 101 - Why Getting Pre-approval is so Important

Jules Yates (Exit Realty Paramount) — Mon, 24 Aug 2009 18:39:40 -0500

Even after 21 years in this business it amazes me how many time I get a phone call about a property and the person on the other end sounds terrified to even give me their name. It immediately tells me I am dealing with a new buyer or someone who has had a bad experience buying a home. Maybe people are just afraid I will try and sell them something they don't really want.

I learned a long time ago that it is nearly impossible to talk or pressure someone into buying a property. There is just way to many opportunities for a buyer to back out of a deal even if I could persuade them to sign a Purchase Agreement. There are inspection clauses, financing contingencies, etc. Heck, I don't even carry purchase agreements with me anymore.

When I get one of these calls I try and nicely offer some friendly advise and suggest they come in and talk with me (or someone they are comfortable with) so that we (ad I did say we) can help them determine what the best course of action might be. I always start with financing of course.

I have learned that too often buyers really have no idea what they can afford. Financing is certainly the key to any home purchase. Why? Well especially right now, many home buyers are looking to buy foreclosed homes.

Most Banks who are selling a home will require a preapproval letter to be submitted with any offer. Since many of these homes are priced well below market value and many times there are multiple offers, it is vital to have your lender lined up.

In addition you don't want to find out that you are looking at homes either below or above your ideal price point. It is a lenders job to help guide you through the mortgage process. Most mortgage professionals will make suggestions on what is the best program for you or if financing is not possible at the time they may recommend ways to improve your ability to get financed in the future.

Another important reason to know the type of financing you may need seller concessions. Seller concessions are funds that a seller will contribute toward closing costs, pre-paids, etc. Many first time home buyers need these funds in order to close on a loan. If you need these funds, it is important to make sue your REALTOR includes them in the original offer. Going back later can be a difficult thing to do.

For more tips and advise, pleas visit www.JulesYates.com.

Home Selling 101 - Strategic Pricing

Jules Yates (Exit Realty Paramount) — Mon, 24 Aug 2009 17:48:03 -0500

Over the past 21 years I have always believed that the best pricing strategy was to make the price appear as low as possible. For example if I had a property which I felt was worth $150,000 I would list it at $149,000 in the hope that a person would think it was a better value. I had been taught that my entire career.

I have recently changed my strategy to meet the current market conditions. If you have ever searched for a home I am sure you have noticed that all websites allow you to choose a price range for the property you are searching. If you use the prior example ($149,900) and you were to search for a home in the $150K range you might search $140,000 - $150,000 and it would show up in your search results.

In that case it would be in the high end of the range you were searching and in that were the range you were looking at, you may be more apt to want to make a low offer should you decide to purchase the home. Let's assume another buyer was looking at slightly more expensive homes in the $150,000 - $165,000 price range. In that case your home would not show up as it is below $150K... right?

With my new strategy of listing at an even round number of say $150,000, that same home would in fact show up in both searches. By showing up in the low end of the higher priced search, the buyer is less likely to make a low offer as it is at the low end of the search criteria. Naturally if there are few homes in any given price range the search parameter may be much wider but I am sure you get my point. For this and other tips visit my website at www.JulesYates.com.

Home Buying 101 - Where to Search for a Home on the Internet

Jules Yates (Exit Realty Paramount) — Mon, 24 Aug 2009 17:35:29 -0500

As a full time REALTOR I am constantly asked a lot of questions about searching for a home on the internet. For example: "Where is the best place to search for a home?", "Which website will give me the best information?", "Why are so many homes sold when I finally do call on them?"

The first thing that you need to understand is that all the information for a given area is generated by the local MLS or Multiple Listing Service. The MLS is a database of all properties listed by local REALTORS. These MLS's can be local, regional or statewide depending on the organization. Here in Traverse City, the Traverse Area Association of REALTORS covers the 5 county area including: Grand Traverse, Leelanau, Benzie, Antrim and Kalkaska Counties. In many cases area MLS's will overlap and you may find listings in one or more MLS.

Each association will generally have their own website which offers individuals the ability to search the members listings. For example in Traverse City you would go to www.TAAR.com to search our listings. Once a listing is loaded in the system the local MLS uploads (usually every night) any changed data to any other site which has a data feed. For example all of the major franchises will get a data feed so that their website has all of the area listings. The idea is that every Broker has the ability to show everyone else's listing on their website.

With that in mind choosing a website to search is often more of personal preference than lack of data. Ech Broker can customize how the data is displayed but each listing has to show the name of the actual listing broker. You may notice the words "This property listed by ABC Broker" at the bottom of the page. If so this is a listing that does not belong to the company who's site you are searching.

Other websites like Yahoo, Google, Realtor.com, Trulia, etc. may charge agents to enhance or showcase their listings. Realtor.com for example will charge anywhere from $30 per month to $1,200 per month to have a REALTORS listings showcased or enhanced to draw more attention.

Other websites may require you to sign up in order to view listings. This information could be for the agent who owns the site or it could go to the broker. The advantage of signing up is you have the ability to log in and save specific listings or easily request information. My website (www.JulesYates.com) requires you to sign up but no on else will get your personal information. Only a name (real or otherwise and an email address) is necessary. In addition you can set up automated listing alerts which will allow you to get emails as new listings are entered by any agent in the MLS.

As to the final question as to why many homes are sold when a buyers finally does call, that is simple... there are lots of buyers in the market and the good deals will not last long. My advise is to establish a good relationship with a local REALTOR who has a good website and work together. Those who are prepared will get the best deals since they are ready to write offers when the right home comes along.

Recent Court Decision is Good For Sellers

Jules Yates (Exit Realty Paramount) — Mon, 24 Aug 2009 17:03:41 -0500

The Michigan Supreme Court recently affirmed a Michigan Court of Appeals decision (Roberts v Saffell) which overturned the lower courts decision that a homeowner was liable for undisclosed (unknown) termite damage. In the original court ruling the homeowner was held liable for undisclosed termite damage when the new homeowner discover extensive damage to the structure of a home located in Leland, Michigan.

The homeowner did not disclose any prior knowledge of termites but did say they had had some bug infestation. The buyer of the home took that to mean that the homeowner was aware of termites and sued for monetary damages and as I said won. The Michigan Court of Appeals determined that a claim for innocent misrepresentation (which allows liability for false statements even when a person making the statement is unaware the statement is untrue) can not be brought for a false statement listed on the Seller's Disclosure Statement if the statement is not within the Sellers personal knowledge and ordinary care was taken at the time the statement was made.

While it is still very important to make sure you as a seller fill out the Disclosure Statement as accurately as possible, you no longer have to worry about being held liable for something that was beyond your scope of knowledge. This case had cause d quite a scare until this recent Court of Appeals decision.

Time is Running Out for the 1st Time Home Buyers Tax Credit

Jules Yates (Exit Realty Paramount) — Mon, 24 Aug 2009 16:53:18 -0500

While the deadline for the First Time Home Buyers Tax Credit is November 30, 2009, you may need to act now in order to take advantage of it. Why you may ask? If you are in need of any type of government financing (Rural Development, FHA, VA, etc.) you may find longer than expected delays in getting financing approved due to a last minute rush to close.

For those of you hoping to build or in the process of building, keep in mind that you will need to get your certificate of Occupancy (COO) no later than November 30 as well. With even entry level homes taking 90 days average to complete, there is little or no time for delays if you need to take advantage of this government program. As an industry, we are seeing a lot of buyers looking to cash in on this tax credit.

I have to imagine that there is going to be a lot of people rushing to get deals closed as early as possible so if you have not found that perfect home yet, it may be in your best interest to find something soon. If you are going to use some sort of conventional financing then you can basically buy yourself a few more weeks.

Current Short Sale Situation with Bank of America - Now they are using Appraisers

Jules Yates (Exit Realty Paramount) — Wed, 19 Aug 2009 17:35:46 -0500

I am currently working on 3 short sales with Bank of America. Over the past 2 years I have been involved with many short sales and finally the banks (at least Bank of America) is hiring appraisers rather than ordering B.P.O's. While I think this is a good idea, I am also seeing it kill a lot of short sale deals.

Let's face it... even very recently the B.P.O's that were being done were ... well let's say ... less than accurate in many cases. As the saying goes, you get what you pay for. Here in Michigan (where it is illegal for anyone other than a broker to charge for a B.P.O.) we were seeing agents out doing B.P.O's.

It had always amazed me that a lender would require an appraisal for a mortgage but allow a B.P.O. for a short sale. In the long run I think it is a great thing but short term it is dragging out the short sale process. What used to take only 4-6 weeks now takes 3-4 months to complete. I have to assume it is the same all over the country.

It will be interesting to see how things shake out here in the near future. I am sure we will be seeing a lot more changes in the months to come.

Spectacular East Grand Traverse Bay Home - $850,000.00

Jules Yates (Exit Realty Paramount) — Wed, 19 Aug 2009 17:21:55 -0500

Current list price - Just $849,000.00

Specifications:

Bedrooms - 4
Baths - 2.75
Approximate Year Built - 1938
Year Remodeled - 2004

Approx. finished square footage - 2,956

It's literally just once in a lifetime that a property likes this comes one the market. As the properties along Ahgosa Trail sell, they remain in families for decades. It is generally only through the death of an owner that these homes become available to someone outside the family. Sadly this was the case with this home.

This home is situated on a double lot and has 100 feet of the best sand beach in all of Traverse City. It is located at the base of Old Mission Peninsula on East Grand Traverse Bay. Downtown Traverse City is literally minutes away. The property is accessed via a narrow private drive which provides access to just a few home sites near the end of Eight Street in the heart of Traverse City.

This spectacular home is well suited for a family retreat, entertaining or simply escaping the hustle and bustle. The focal point of the home is the nearly new Gourmet kitchen in the center of the home. This kitchen was custom designed and features a professional quality 6 burner stove, a powerful exhaust hood, granite countertops and ceramic tile and much more.

You access the front of the home through a wrought iron gate which leads you to the private fenced courtyard. On those windy days you can catch all the sun you need. You can choose to enter the home from one of 2 doors or enter the attached 2 car garage from the patio. Once inside you can't help but notice the million dollar views from almost every room of the home.

The home features a spacious dining room, wide living room and a lovely family room with a converted gas fireplace. Feel free to change it back to full log if you choose. The choice is yours. All of the rooms look out over the extensive decking toward East Grand Traverse Bay. Once outside feel free to roam the decks or walk trough the manicured lawn and garden. Stroll along the wide sand beach and watch the sunrise to the east.

When it is time to call it a night this home features a generous main floor master bedroom which can be accessed from the deck or the home. A guest bedroom is also on the main floor near the master bedroom. In between is a shared full bath. Stroll up stairs to 2 additional bedrooms and a second bath. On the west side of the home is a large den which could easily be used as another bedroom, a study, library or as you choose.

For comprehensive details please visit http://www.LiveOnEastBay or click the link below to talk witjh me now.

Jules B. Yates
Associate Broker

Exit Realty Paramount
231-218-5199 ... anytime

Are You Loosing Deals Due to Low Appraisals the resulted from Foreclosures as Comps?

Jules Yates (Exit Realty Paramount) — Sun, 05 Jul 2009 17:17:25 -0500

I am seeing an increasingly common trend here in Northern Michigan. We are busy writing deals but now we are loosing deals because appraisers can not find suitable comps. Are you seeing this anywhere else?

That backlash to a lot of foreclosure sales is an appraiser's inability to find suitable comparable sales to justify a ready willing and able buyers offer to purchase. In the past 3 weeks alone I know of 1 buyer who wrote 3 bottom lined offers, had financing approved thought he VA and all 3 were rejected due to the inability to get a suitable appraisal. I know of 2 others this past week.

Even when we have what appears to be a "done deal" with a strong buyer, willing seller and executed purchase agreement...don't couldn't it done until you cash the check. In talking to lenders we are discovering that since appraisers are now chosen from a pool, rather than by the lender, many deals are coming in short.

It seemed that in the past a lender would choose an appraiser that they knew would make every reasonable effort to make an appraisal come in the purchase price. We all know that for years appraisers were stretching the boundaries of legitimacy on many appraisals.

Common sense tells me appraisers knew that if they wanted business they had to try to make it work. I used to get calls from appraisers asking me how I justified a price or to find out if there was something they missed in the report before turning it in. Many times a deal was salvaged by talking to the appraiser first.

Now the lender doesn't see the report until the appraisal is done. I personally think this is a better what except when an appraiser makes a mistake. This happened to me this past week when a former B&B was being sold as a single family home and the appraiser mistakenly called it a commercial business.

My buyer was turned down for a loan and I lost that sale. Hopefully I have found a new lender who is local and knows the property but my point is had the appraiser called to ask a few questions we would have had a deal.

I'd love to hear if you are seeing this in any other part of the country?

Short Sales Vs. Bank Owned... What's the Real Difference?

Jules Yates (Exit Realty Paramount) — Sun, 05 Jul 2009 01:13:40 -0500

I am constantly reading posts about short sales and bank owned properties (referred to as REO's in the biz). Often there is a big misconception that the two are similar. This is not really the case.

Briefly a short sale occurs when a property is valued less than the balance owing and the Seller requests that the mortgage holder accepts less than the full balance owing. In that case you purchase from the current owner. In a REO you are buying from a seller (the Bank) who generally just got title tot eh home via the foreclosure process.

Here are the key similarities and differences:

TIME - Short Sales can take a lot of time simply because a great deal of care is put into determining the value of a home before a lender will agree to release an existing mortgage. You can plan on 3-12 weeks for an answer. With an REO property it is generally no different than submitting an offer to any other buyer. Expect about 1-7 days for an answer.

Keep in mind that a short sale can be done prior to a foreclosure, after the foreclosure process has started or during the redemption period. That said a short sale may not actually be due to a foreclosure. It could simply be a hardship on the part of the Seller as well as a decline in property values in a given area. The further alone it is in the foreclosure process, the quicker the process can take.
CONDITION OF THE PROPERTY - Generally since a short sale is occupied by the Seller who needs to sell, you can expect the condition of a Short Sale to be much better than an REO. Because REO properties are the result of the foreclosure process, you can expect that the condition of the property will be less than perfect. Rarely are they pristine.
DISCLOSURES - With a Short Sale you will generally be buying a home that is being sold "as is". Since the home is lived in and the Seller is available to answer questions, a disclosure statement is often times available. Due to the Seller getting no money from the sale, don't expect a Seller to pony up money if you find a problem upon inspection.

With an REO you buy from a lender who knows nothing about a property and will not provide a disclosure. Many times these homes were taken back during the winter months and despite winterization, you an expect frozen or broken pipes. This is due to the gap between the power being shut off and the winterization which is generally 30-60 days after the end of the redemption period.
PURCHASE PRICE - In either case you can expect to save anywhere from 10% - 30% off the retail value of a property. Short sales are generally not quite as good a deal due to the lender's loss but if values have dropped in an area you can get some great values. With REO's the lender generally wants the property sold immediately and will be willing to offer a discount based on the property conditions.
DETERMINING VALUE - In both cases a BPO (Broker Price Opinion) is generally ordered to determine the current market value of a property. BPO's differ from a full blown appraisal in that an appraisal is done by a licensed appraiser whereas a BPO is done by a real estate agent who is not a licensed appraiser.

Feel free to contact me if you have any questions regarding short sales or foreclosures.

How Do You Know We Hit Bottom and It's Time To Buy?

Jules Yates (Exit Realty Paramount) — Sat, 04 Jul 2009 16:22:35 -0500

It's Simple... You Can't so don't even try! I hear so many agents say that their buyer is "waiting until we hit bottom" and I want to scream. On the grand scheme we are as close to bottom as any of us will ever see (at least in the Grand Traverse Region). So what if prices drop a little bit more, you'll be able to say you got in near the bottom.

If you think about it interest rates are as low as we have seen in decades, prices are as low as I can remember and sellers are motivated. Financing is readily available though Rural Development, FHA, VA and other government programs. Income is not an issue if you had pretty good credit.

On top of that you may qualify for a "First Time Buyers" Tax credit of up to $8,000.00. I was at Huntington Bank this week and saw a poster telling customers about the tax credit. Funny thing is it never mentioned you didn't have to be a first time home buyer. As long as you haven't owned a home in the past 36 months you may qualify.

That money can be refunded this year simply by amending your 2008 tax return and you will get your check shortly there after. It is a great way to get into a home now. Visit www.FederalHousingTaxCredit.com for details.

To get started you must educate yourself on the market. Ask your REALTOR to set you up on automated emails so you are aware of properties that meet your needs as soon as they hit the market. Automated emails are a great way to know what new properties are available before most of the general pubic is aware of them.

Also be sure you have been pre-approved for a home loan or have proof of funds if you plan to pay cash. This is vital if you buy a Bank Owned home or REO as they are referred to in the business. Banks will not look at offers with out a pre-approval letter. Talk to and work with a professional and your transaction will go much smoother and take a lot less time. AS usual I am available to assist you so feel free to call me at 231-218-5199.

Sold Your Home... Huh? - It's Not Over till you Cash the Check.

Jules Yates (Exit Realty Paramount) — Sat, 04 Jul 2009 15:47:28 -0500

As I celebrate my 21^st year in business I look back and think...Wow it has been a long time. I also can't help but notice a lot of changes in the past year. Despite the economic downturn I have seen a huge increase in my business. A large portion of those are foreclosure related (Bank owned, pre-foreclosures, short sales, etc). Any while the almost "Seller's Market" feel of those sales, I am seeing a backlash.

That backlash is appraiser's inability to find suitable comparable sales to justify a ready willing and able buyers offer to purchase. In the past 3 weeks alone I know of 1 buyer who wrote 3 bottom lined offers, had financing approved thought he VA and all 3 were rejected due to the inability to get a suitable appraisal. I know of 2 others this past week.

Even when we have what appears to be a "done deal" with a strong buyer, willing seller and executed purchase agreement...don't couldn't it done until you cash the check.

Good Advice - "Take The Deal"... especially if you are buying another home

Jules Yates (Exit Realty Paramount) — Sat, 30 May 2009 18:45:13 -0500

Whenever I have a seller who is on the fence as to whether to take an offer on their home I tell them take the deal. This may sound like bad advice especially if a seller is giving up a lot of equity but consider what savings that Seller will make up for when they take their proceeds and buy another home.

Basically it is trading equity with another person. You give up some on your end and take it from the next seller. It's not a bad deal when you look at the net result. Too many sellers are concerned about whether to take a legitimate offer and I say get what you can now especially when you have had little or not previous offers. Listen to a professional.

Naturally not all deals are good for all parties but with a market as challenging as we have seen in the past 2 years, I say take the money and run. Two years from now you may look back and say I am glad I got out when I did.

Now more so than ever I have seen counter offers to counter offers and both buyers and sellers stretched to the breaking point. Another recent trend is homes that will not appraise at the current asking price. Recent changes to the appraisal process has forced appraisers to use foreclosure properties in their calculation of value and with almost 60% of the sales foreclosures it can be a struggle to hit the mark.

Question of the week - How Do I get showings on my property?

Jules Yates (Exit Realty Paramount) — Sat, 30 May 2009 18:25:52 -0500

I have had a lot of people ask me this question recently so I thought I would share it with everyone. The answer is generally quite simple...lower the price. It's easy to say but being in a position to do so is not always the case.

Banks are the primary culprit for constantly lowering the price until the property sells. Re To a bank or other investor the sale is not an emotional thing it is purely business and good business says sell now. It is as simple as supply and demand.

While supply is high and buyers aplenty, the primary motivation if buyers is a great deal. Not a good deal but a great deal. While there a re a lot of good deals out there if you are prepared to buy, the great deals are not as frequent. The key to getting one is working with a professional REALTORâ who sis on top of the market.

If on the other hand you are a seller who is not in a position to reduce the price of your home or property any longer I may offer some other alternatives. Do as much as you can to set your home apart from the competition (Make your home sparkle, maintain the yard, paint a room if it need something). Speaking of competition, go out and look at what you can buy for the money. The other buyers are.

Keep one thing in mind that if you set your property up on a regular price reduction it will eventually sell. If all else fails and you are in a difficult financial position you may want to consider a short sale (selling your home for less than the balance owing). Talk to a professional for details on a short sale.

Lastly do not be shocked if you get an offer less then your asking price. Rarely does anyone offer full price unless it is a foreclosure. All buyers will try for a low offer but try to negotiate a deal you an live with. As they say, " a bird in the hand".

Selling a Home - Take some advice from a Professional

Jules Yates (Exit Realty Paramount) — Tue, 19 May 2009 11:15:39 -0500

In a market where competition is fierce, why not take some advice from seasoned veteran and raise the commission. You may be saying to yourself that of course agents want to raise the commission and to some degree that is true but probably for different reasons.

As a listing agent I know that in the first 30 days your property is more likely to get showings and offers than at any other time. I also know that in challenging times money can motivate people (or other agents). What I suggest is offering an incentive.

When you list your property consider a standard rate on the listing side (you don't want to de-motivate the listing agent) and offer a increased rate to the selling agent. For example if you listed a typical property for 6% (this is an example and all commission rates are negotiable) the listing side (Broker and agent) would get 3% and the selling side (agent and broker) would split 3%.

I might suggest you offer 3% to the listing side and 5% to the selling side. If for example your home sold for $200,000 (Gross $184,000) to you and it sold quickly you would be farther ahead then if you were to let it let it sit an do a typical 5% price reduction. An extra 30 days can cost you more in the long run.

Try not to think of it as the brokers making more but try to consider what you will net. Personally I would pay a 10% commission to someone if they could sell my home quickly. As they say time is money. If you have any questions about this method, please feel free to contact me anytime at 231-218-5199.

Buying Real Estate - You may want a Buyers Agent.

Jules Yates (Exit Realty Paramount) — Tue, 19 May 2009 10:49:49 -0500

Over the years I have been asked numerous times what is a buyers agent. Simply put I say this: Imagine walking into a court room and having 2 lawyers sitting at the plaintiffs table and none at yours. Would this make you comfortable?

When buying real estate it is a similar situation. Unless you specifically enter into a written agreement with a licensed professional, that agent represents the Seller (meaning they are not at your table). I won't begin to imply that you can't get a fair deal if you choose not to use a buyers agent but given the choice of using one or not, I would choose to use one.

I have always said that the listing agent is the best qualified person to talk to if you inquire about a property. Why? Simple... they have the most knowledge of the property, they know the seller's motives and they can get you answers the quickest. That said you can still notify the listing agent that you are being represented and they should be fine with that.

In fact agents prefer to know right up front if you are working with a specific agent. It helps them determine how to best help you. So when is the right time to hire a buyers agent? I would say in the very beginning. A Buyers agent has resources not available to the average buyer.

You will typically find a property quicker, negotiate a better price and close more smoothly than if you choose to go it alone. If you are comfortable with the process than you may not need to specifically bring in an agent after the fact but find someone you are comfortable with early in the process.

FREQUENTLY ASKED QUESTIONS ABOUT BUYER AGENCY

Q - Do I need a buyer's agent in order to purchase of a home or property? Absolutely not...if you are comfortable with a purchase or have has previous experience you certainly don't need a buyers agent.

Q - What is the difference between a "traditional" agent and a buyer's agent? The difference is in the buyer being a customer or a client. The 'traditional' agent works with you as a customer. When you are a customer, you are without representation, much like buying a boat, car, or when shopping in general. The agent or salesperson assisting you is employed by and works for the seller and is obligated to get the highest price and best terms for the seller. This agent or subagent should be honest and disclose all material facts about the property, but must work in the sellers best interest at all times. When you become a buyer client, you are fully represented. You actually hire an agent to professionally advise and represent you. Your agent will then work in your best interest to gain the best price and terms for you- using proven techniques to negotiate the lowest price possible. Only a Buyers Agent can legally negotiate on your behalf.

Q - Will I save money using a Buyer's Agent? In some cases, yes you may save money using a buyer's agent. For example if you are uncomfortable negotiating it may be advised to hire a buyer's agent. If the transaction is complex, it certainly would be beneficial to hire a buyer's agent. Generally you will not save money nor will it cost you more to use a buyer's agent. In most cases, this is a free service which requires you to enter some type of Buyers Agency Agreement. Many people simply choose to use one for piece of mind.

Q - I am working with the listing agent, is that agent a Buyer's Agent? Generally, unless you have entered into a Buyer's Agency Agreement with that agent, no that agent represents the seller. Just be aware not to disclose any personal information to that agent that you wouldn't want the Seller to be aware of (in negotiating for instance). All agents whether representing the seller or buyer must be fair and honest with you but are not required to disclose certain information such as the Seller's motives for selling. Each Agents responsibility is spelled out in the Agency disclosure form.

Q - If I am comfortable with the listing agent, should I hire a Buyer's agent? No, not necessarily. As long as you are aware of the fiduciary responsibility of the agent (whether it is to you or the seller) you can use who ever you are most comfortable with.

Q - Are all Buyers Agents the same? Absolutely not... like in any profession, there are those who specialize in the field and those who do not. Also there are certain Realtors who have specific training in Buyer's Agency for example the ABR designation.

Q - When I walk into a real estate brokerage and ask for help, are they working for me?

Generally...No. Numerous consumer surveys have indicated that buyers and sellers of real estate have been confused as to who represents whom in the transaction. Most Buyers mistakenly believe that the real estate agent who is "showing" them houses are working for them. But in fact, unless you actually hire an agent, in writing, to represent you as your Buyers Agent, ALL other agents work for the SELLER.

As a Buyers Agent I can assist you with all your real estate needs so feel free to contact me anytime at 231-218-5199.