Is Technology Good or Bad?

With the develoipment of the internet, cell phones and laptop computers, a REALTOR has the ability to provide instant information to a client.  Clients using the internet expect that.  Speed converts prospects into clients.  However, it also means that a REALTOR can never totally get away from his business and recharge his batteries so to speak.

During a recent out of town trip, I packed up my laptop making sure I had a power cord, my book with clients, laser mouse, extra batteries, phone numbers of current clients, and plent of papaer and a pen.  I also had to make sure I took my charger of my cell phone.  When I booked a hotel, I also had to make sure that it had wireless internet.  After spending the day doing the family vacation thing, I still had an hour or so of work each night to check and respond to email and check and send out any new listings.

Was all of the above necessary?  Only time will tell.  In todays market, most REALTORS feel that they must stay in constant touch with clients or they may lose them. 

Is technology good or bad?  I guess that is up to each REALTOR and how they want their business to increase.

Is Too Much Information Available on the Internet?

Some of the older agents believe that there is too much information provided free on the internet relative to real estate.  The fear that with all the free information, a buyer or seller does not need an agent.

I take a different view.  It is true that as many as 80% of the buyers start their home search on the internet and many of the sellers research the value of homes and the selling process on the internet and then attempt to price their house and sell their house on their own.  As far as the latter, most of the sellers that try to sell their houses on their own eventually list with an agent.  The primary reason is probably exposure.  Once listed with an agent in the Multiple Listing Service, a house is immediately seen by all the agents in the area.  Most real estate offices also spend a lot of money on print advertising and through the internet.  An individual just cannot afford to do that.

Most buyers do start their home search on the internet to find out what is available and at what price.  However, most also contact a real estate agent once they get serious.  An agent can search through the MLS to find the right home for a buyer, check out any disclosures to see if there are issues with the house, tell a buyer about the area that a home is located and set up showings.  Problably the most important thing that an agent provides is his or her experience in the law, negotiating and problem solving.  Most closings go through without any major problems, but if a major problem occurs, an experience agent can negotiate and solve the problem.

If I can help you in marketing your house or finding you the right home, please give me a call and let me explain how I can help you.

Quincy Housing Market

Today the National Association of REALTORS ( NAR) reported that pending home sales increase over 4% for the month of May over April.  The general feeling is that maybe we have seen the bottom of the real estate slump nation wide.  Here is Quincy, the market is slower for the first 5 months as compared to previous years.  Some of the slowness may be the result of the winter weather, some may be because of mortgage issues and some may be because of the perception that the housing market is in a record slump with home prices decreasing rather that increasing.

In general, if a home is in good condition and priced reasonablly, it will sell quickly.  Homes that are overpriced or need work will probably stay on the market for a while.  Houses are selling and there are buyers wanting homes.  Give me a call and I will be glad to go into more detail about the Quincy market.

Do I Need a REALTOR?

With all the information about homes available on the internet, the question has to be "Do I really need a REALTOR"?  Many of today's buyers start their search on the internet and research the buying process.  They go to various web sites and find several homes that they like and can afford.  They may even drive by the homes and call the agent that has the home listed.  Showing home is only a small part of what a REALTOR does. 

Finding the right home is only the first step in the process of buying a home.  Once the home is located, then the process of negotiating a price and terms takes place.  This may reguire several rounds of negotiating and as a buyer, you want to make sure that you have a professional opinion as to the price and what you should ask for.  Once a contract is acceptable to both parties, then comes the process of inspections to make sure the house is in the condition that you thought it was.  This can actually lead to another round of negotiations if some problems are found.  Once all the inspections are done and acceptable, then the process of finalizing the loan, coordinating with the seller to make sure he is moved out and the house is left in good condition and the actual closing process all take place.

REALTORS are well trained in the negotiating process and have been through the inspections and closing process many times and know exactly what to expect.  This is where a good well organized REALTOR can make the buying process a pleasant experience rather than a nightmare. 

Maintaining Your Home

There are so many buyers today that purchase a home and do not properly maintain it.  When they get ready to sell, they are surprised when a buyer has inspections done and come up with a long list of items that need to be repaired.

I have a neighbor that purchase his home a couple of years ago.  The previous owner was in the construction business and the home was a excellent condition.  The current owner has done nothing.  Shrubs and other landscaping have not been trimmed, a shutter has blown off and just lays on the deck.  The gutters are plugged up and during rains, water overflows and comes down next to the foundation.  Eventually this could lead to water problems in the basement.  Tree limbs are hanging down and damaging the shingles.  When he decides to sell, this owner will have a lot of work to do and bear unnecessary expenses and then wonder why he is not getting a high offer.

Maintaining a home does take some time and it can be difficult when both the husband and wife work and then must participate in the kids activities.  However, minor maintence will save money in the long term.  As an example, if my neighbor would just trip the tree branches that are hitting his roof, he could avoid replacing the roof at a cost of $6000 or $7000.  In some cases the owner may not know how to fix something and will need professional help, such as a plumber or electrician.  Generally that will still be money well spent to prevent a major expense in the long term.  Most REALTORS can help give an owner some names of people that do repair work.  Contact a REALTOR for help.

The Home Inspection

As a buyer you have an option to have inspections conducted once you have reached an agreement with the seller on price and terms.  You can either have individual inspections, such as electrical, plumbing, structure, roof, etc or have what is called a whole house inspection.  With the latter, a licensed inspector will look at all the components of a house and point out and potential problems.  Generally the inspector is not an expert in each an every aspect of the house, but can give you a good idea of the condition.  If the inspector feels that there is a major problem, he may recommend that the buyer obtain an detailed opinion from someone that is an expert in that particular area, such as the furnace.

As an agent, I can make a recommendation to the buyer with some named of inspectors.  However, the final decision as to who a buyer will use is up to the buyer.  I want an inspector that will review the house in detail and give me the facts about a house.  I don't want an inspector that gives undocumented opinions.  Some agents would prefer not to have an inspection done on a property, but I welcome it.  I want to make sure that a buyer is fully informed as to the condition of a house before they make the final purchase.  An inspection report in most cases will give a list of items that the inspector found.  Most of the items are generally minor, but it does provide a "to do" list for the buyer.  Sometimes there are major problems and that should be addressed through the agent representing the buyer to the listing agent representing the seller.  If the seller is unable or unwilling to make a repair on a mjor defect, then the buyer has the option of withdrawing from the offer.

Some buyers have friends or relatives that the buyer trusts to give advice on the condition of a house.  Sometimes that is fine, but sometimes it is better to have an impartial third party look at a house.

Buyers Should look for Potential

As I show homes to buyers, many look only at exactly what is there.  If the house is messy, that is all they see.  If the house has family pictures, they spend time looking at the pictures.  No home is perfect.  As a listing agent, I make suggestions to a seller of the items they need to do to put their house in the best light.  If that means removing extra furniture to make the rooms look bigger, then so be it.  If it means removing some of the family pictures or painting a wall, so be it.

If I am representing a buyer, a try to get them to look for the potential in a home.  Look at the room layout and sizes.  Are they good?  If so, the flooring can be changed, the wall color can be changed.  Lot for the potential and you could find a diamond in the rough.

Appraisals

When a property owner is considering selling his house, many times they will have an appraisal done to set the value of the property.  This can be a mistake.  If an appraiser submits a value, the owner would naturally think that the house should be listed for at least that amount.  At this point, the appriaser does not have an offer to work with and simply uses past sale that are up to 6 months old.  In the current changing market, that method may result in the owner listing the property for more than what a buyer is willing to pay.  If it is over priced, the house may sit on the market for a while as the owner continues to think that he should receive at least the appraised value.  After a while, the showings on the property stop.

I ususally recommend that the owner not get an appraisal.  As a REALTOR, we can provide not only past sales information, but also discuss current market trends and the amount of inventory on the market in certain price ranges. 

In some cases, it is necessary to get an appraisal, such as in the case of an estate.  However, if it is not necessary, save your money and get the advice of a REALTOR. 

More on Auction

Earlier this week there was an auction of a large home in our Historic area.  The auction was conducted by a local auctioneer that advertises selling a house in 30 minutes.  Well, even though there were a lot of potential buyers at the auction, it apparently did not sell.  Apparently, the owner did not get the price they wanted. 

Actually this is the situation in more cases than you would think.  As I said in a previous Blog, auctions seem to work for the seller for farm land, but do not work for selling a house.  And yet the auctioneers continue to promote that auctions provide top dollar for the seller.  

So then the question becomes what does a seller loose if they try the auction route.  Usually the seller pays for all the advertising up front, pay for flyers to promote the sale and in some cases pays a fee to the auctioneer.  In addition, some auctioneers charge a buyer a premimum, in essence, a commission,  Therefore a buyer must take into account that his bid would include the buyer premimum, which in some cases is more that what a REALTOR would charge as a commission.  If the property is listed with a REALTOR, there are NO expenses until the property sells.  If for some reason, it does not sell, the seller has no expenses whatsoever.

If you are considering selling your house, you should know all the facts before you make a decision.  If you would like more information, please contact me.

For Sale by Owner ( FSBO)

If you are considering selling your house, you probably are at least thinking about selling it yourself.  For some it works just fine.  However, according the the National Association of REALTORS, nearly 80% of the people that try to sell themselves eventually list with a REALTOR.  Why is that?  Afterall, the primary reason would be to save the commission that REALTORS charge.

Selling your house yourself is not as easy as you might think.  First of all there is preparing your house to sell and doing what you think is necessary to make your house salable.  You are making decisions without the advice of a professional REALTOR.  Then, you have to decide what price to ask.  To make sure that you have the right price, you would need to do alot of homework by going to open houses, searching the internet, etc.  Once the price is set, then you have to deal with all the disclosures required by law, obtain a sales contract from some source, develope an ad and place it in the paper, place a "For Sale by Owner" sign in the yard and other directional signs to make sure a buyer can find the property.  All of this is before you have your first showing.

If both the husband and wife work, showings are difficult to set up.  Many buyers want to look at a property during the day, but since you are at work, the showings have to be set up in the evening.  Finally, you get a phone call and someone want to see your house.  You set up the showing, the buyer comes and looks at the house, the buyer says he likes it and will be back with you.  However, after a week passes and no word from the buyer, you call him and he says that he has found another house.  After several similar buyers, you become frustrated.  Eventually a buyer makes an offer and you think that you are done.  What about the earnest money, can the buyer get a loan, will the house appraise, will there be any inspections and will the buyer want somethings fixed that you have lived with for years?

REALTORS know how to deal with all of the above as well as all events that have to occur after a qualified buyer submits an offer.  You may have to pay a commission, but with a professional to guide you through the process and make sure that the sale goes through to closing as smoothly as possible.  Many that have sold their house on their own have said they would never do it again and with todays law suit happy buyers, it is best to use a professional to make sure the sale is done right.