Julia Stander's Blog

I Want A "Neighborhood That's Too Good To Fail"....

Tue, 12 Oct 2010 03:33:25 -0700

First time homebuyers present a unique set of needs and challenges. Often they want the perfect house for the perfect price (don't we all?). They can be prone to "Buyer's Remorse" even before they execute a contract. A good initial consultation prior to even taking a client out can help set expectations and educate the client, but sometimes its just not enough. I've been working with a family who are first time homebuyers and they are a really neat couple. They also do their homework as they evaluate potential properties, which I strongly encourage. We found what I thought was the perfect home...it met their criteria of being newer, had the space they wanted to accomodate an office, priced in their budget and in exceptional condition. Plus it was NOT a short sale. We looked at the home several times, the last time spent over 45 minutes in the home. Sellers were helpful and pointed out some of great features of the home. I provided the buyers with the recent comparable sales and made the request for the Seller's Real Property Disclosure. Being careful first time homebuyers, they wanted to discuss the purchase together in more detail, even sent their kids to the YMCA for a sleepover so they could chat without interruption. This was on Friday. Then I get a message from the buyer...husband wants to buy in a "neighborhood that's too good to fail" and they told me the specific neighborhood. Now the home they were looking at was priced to the market and possibly had some room to negotiate. The challenge we have is the neighborhood they want is priced $20,000 or more above the price threshold they are willing to spend. I've essentially been given the proverbial needle in the haystack to find. So my question is, what do you say to someone who wants to buy in a "neighborhood that's too good to fail?". I would love to hear your thoughts. Have a great day! JuliaJulia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

O.K....Perhaps I Really Wasn't Aggressive Enough

Thu, 29 Jul 2010 03:34:48 -0700

It is always frustraing to have a listing expire. We self-reflect and ask ourselves what could we have done different? In today's market, especially in Tampa, pricing is key. Typically when I list a property, the price is determined on the market comparables and I explain to the seller it is just an initial offering...we really won't know if its the right price until we see what kind of traffic we get. If we get lots of traffic and no offers, we will have to revisit the price and if we get no traffic at all...again we will have to revisit price. We can market the heck out of the home, but if we don't have it priced to the market, we won't get a buyer. That's exactly what happened on my last listing. We did get price reductions, but ultimately the reductions weren't where the listing should be. Unfortunately, in my last conversation with the sellers, when I gave them my opinion on where the home should be priced today...they were not happy. I couldn't blame them. They elected not to re-list the home. The comment back to me was I only did two open houses (I did at least four, plus office caravan) and the open houses were only held for two hours, the home should have been held open longer, I just wasn't "aggressive enough". By the way, this home did get lots of showings, including several by me. Howver similar homes would come on the market and they were at least $20,000 or more less (some not in really good shape though). In addition, this home was vacant and the sellers would not leave the air conditioning on. Now in Florida, going into a home with no air in the afternoon is like walking into an oven, people want to be out as soon as they can. I even had this as feedback, which I shared. Hmmm. perhaps this is where I was not aggressive enough. I think I should have been more aggressive in insisitant with regards to making stronger price reductions and perhaps I should have insisted that the A/C stay on for showings. It's a two way street. Bottom line, I agree with the seller, perhaps I wasn't aggressive enough. Julia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

"As Is" Does NOT Relieve The Obligation To Disclose

Mon, 28 Jun 2010 05:03:00 -0700

I'm not sure why, but for some reason agents and sellers are under the impression that if you sell a property "As Is" that they don't have to disclose material facts. Often they will say they have never lived in the property so there is no disclosure. Excuse me, with the exception of REO's, if someone has owned a property they still have to disclose what they know, whether they lived in it or not. If someone's owned a rental property and never lived in it, they still likely had repairs done and they should know what's going on with their property. If the roof leaked, I'm sure the tenant or property manager said something. Disclose it! By the way, it's perfectly o.k. to say the seller never occupied the property, simply disclose what you do know about it. Disclosure or not, a buyer should always do their due dilligence and get a home inspection no matter what.Julia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Time is of the essence guys!

Fri, 07 May 2010 04:19:54 -0700

It never ceases to amaze me how other agents don't understand the concept of "time is of the essence". Not only for contract performance deadlines, but for responding to offers too. I often wonder if it lack of understanding or just pure lack of professionalism. On Thursday of last week I submitted an offer on behalf of my first time homebuyer with acceptance no later than 8:00 the next day, Friday. On Friday, I called the agent to find out what the status of the offer was. The listing agent indicated that he sent it to the seller and she was signing it. 8:00p.m. Friday comes and there is no return of the contract. I e-mail the agent and call the agent with no response. Being optimistic that there were communication challenges, I contact the agent to find out the status of the offer, no response. No by this time, my buyer has the option of withdrawing his offer. But he really wanted this property so he hung in. After no communication from the agent for three days, on Sunday at 9:52 p.m. I receive an e-mail from the agent with a notification there were multiple offers on the property with a request to complete a form acknowledging such and indicating whether my buyer would like to modify his offer. I called the agent first thing on Monday morning and asked when this offer came in since he said the seller was signing the contract on Friday. He said that the second offer came in on Friday. Hmmmm...I think so why did he wait until late Sunday evening to communicate this? The unacceptable answer came back that he had to prepare the form he sent. It took three days to prepare a form? Nonsense. To protect my buyer, because he still wanted the property (he smartly did not revise his offer though) I completed the form as requested. On Tuesday I called the agent to find out what the status of the offer was and he tells me that the other buyer did not send in the form so the seller signed our offer. I asked when I could expect the executed contract. He said he would get it to me. I received it Wednesday afternoon. As I looked at the executed contract, I noticed that the seller had actually signed the offer on Thursday! Now I question whether there really was a multiple offer situation. The poor communication and faciliatation of this transaction impacts the professional image of our industry. That seller could have been put at risk because of her agent's actions. I will determine what to do after this transaction closes, but I know I will have to be reiterating that "time is of the essence with this particular agent. Boy is it frustrating! JuliaJulia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Inherit A Property? Get A Home Inspection Before You Put It On The Market

Tue, 20 Apr 2010 04:16:35 -0700

I was chatting with another associate in the office regarding one of her listings. She shared with me the frustration she is experiencing with a client who inherited a home and her challenges marketing it. The home has been vacant for a while and as it sits maintenance is deferred. She has asked them to have someone come out to look at the property and to get it cleaned up because its current condition is impacting the marketability of the home. Her final comment was, "People who inherit a home should get a home inspection right up front!" You know, she's right. An advanced home inspection by parties who inherit and have never owned the home just makes sense. It makes disclosure easier and prepares the owner for issues they can address up front or adjust the price when selling "as-is". Sellers in any situation want to maximize their proceeds, and having a home inspection will give them needed information to prepare the home for maximum profit. It helps minimize suprises later on when the home does go to contract as well. Making the necessary improvements will provide leverage in price negotiation as well. So really what my associate said makes complete sense. What do you suggest to your clients who inherit a home to prepare the home for market?Julia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Vacation....what vacation?

Thu, 15 Apr 2010 02:06:43 -0700

It's spring break and I have taken the week off to spend with my 9 year old son. Of course as a Realtor there never really is "time off". Just because I'm taking a break doesn't mean that business stops, especially if I expect to see my transactions close when I return. I have one customer who lives in Oregon and they want to be under contract by April 30. It means when I find a home of interest, I have to go to the home and take photos and email them to the client. One home came up this week, the same time I planned to take my son to MOSI (Museum of Science and Industry). He had a friend sleep over too. What's a mom to do? Well we did both! After having breakfast at Bob Evans, we drove out to Brandon and the kids gave me their assessment of the home (it wasn't pretty either). It was a vacant home and while I took photos, they discovered the orange tree in the back yard. Once I was finished with the photos, on we went to MOSI, where we had a blast. Time to come home and make dinner. In between the client called and wanted to know more about the home...not good news either....it had mold and other issues but I told her I would send photos so she could see for herself. After dinner I e-mailed the photos and waited for their call later in the evening. I was beginning to feel like the master juggler! And that was just one day, during the week I had to follow up on the status of an appraisal, make sure some documents were signed and forwarded to the listing agent and somehow still manage to spend some quality time with my son. The good news is al missions were accomplished! We know, once a parent...always a parent...the job never stops. It's like that as a Realtor too. I bet there are a lot of master jugglers out there! JuliaJulia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Selling Is More Than Just About The Transaction

Sun, 11 Apr 2010 05:03:51 -0700

Breast cancer. Not your typical subject for Active Rain. There are some that may feel this may not be the venue for such a subject. I'll argue that being a Realtor is more than just helping people buy and sell houses. Being a Realtor means being a part of your community and in tune with the things that impact the well being of that community. It may even mean we need to be advocates, not only for private property rights, but advocates for performing regular self exams to assure our families, friends and customers stay healthy. I have just learned my neighbor has breast cancer. Her home is next to mine and I was the listing agent. It has been great to see her family grow and they are great neighbors. This was a devastating blow to learn about the cancer. We all know someone who has experienced this insidious disease. Recently my cousin had a mastectomy and I know the emotional impact this disease has. I just lost a dear friend because her cancer was found too late and am still mourning her loss. An associate who is part of my CARES team has been undergoing the ravages of chemotherapy. This disease is indiscriminate. One of the things that I know that makes a difference in terms of treatment and survival rate is early detection. Here's where we can be the advocates. One of the best gifts we can give our customers is the reminder to conduct regular breast self exams. Is it an uncomfortable, touchy subject? Absolutely. However it can be a simple matter of providing a brochure with their closing package and speaking of the cherished friend, colleague or customer who has suffered with this disease. Selling homes is not just about the transaction, it's about creating customers for life.Julia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Realtor Call to Action....may affect your business

Fri, 09 Apr 2010 07:32:32 -0700

Many of you have sales that are impacted by the National Flood Insurance Program (NFIP) and Section 502 Rural Housing Program. Right now, Congress has gone on recess and left some unfinished business associated with these two programs. Per the National Association of Realtors Realtor Action Center here's how this unfinished business could impact you. Flood Insurance: The National Flood Insurance Program (NFIP) is vitally important to the recovering real estate market. Its authority was allowed to expire on March 28th. Until Congress extends NFIP, no new or renewal flood policies can be issued. Thousands of property buyers will not be able to purchase a home or commercial property without the flood insurance coverage provided by NFIP. Consequently, many real estate transactions will grind to a halt.* Rural Housing Service Mortgage Insurance: Section 502 rural housing single family mortgage insurance provides housing financing for America's rural families. These loans are funded by private lenders and simply insured by the Rural Housing Service. As private mortgage markets have dried up, without these guaranteed loans, many rural families are left out in the cold. With funding expected to run out at the end of April, lenders have already stopped accepting new loan applications.* It is important you contact your Congressman now and ask them to immeidately take action on these two programs upon their return. I have provided you with a link that will make it easy for you to do that. Let's work together to help assure the viability of a recovering market. *directly taken from the Realtor Action Center pageJulia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Politics and real estate...do they belong together?

Thu, 08 Apr 2010 04:13:00 -0700

There are some who feel politics don't belong on an Active Rain Blog. I would beg to differ. If real estate is your business, politics is your business too. I'm not referring to political ideologies of the different parties, indeed, those discussions need to be in a different venue. I'm referring to staying on top of legislation the affects our industry and economies. For example, here in Florida, there is Senate Bill 6. If passed, will change teachers compensation to be tied to test score performance. One might ask, "what does that have to do with real estate?" I'm of the opinion that if this bill passes it will negatively affect the quality of the teachers we have in our schools. As most teachers will tell you, the good teachers often get the poorer performing students. If we lose good teachers because their pay is tied to test scores, teachers will leave the field or the state. This impacts real estate because quality schools are an important criteria to a purchase decision. If school quality declines, less people will purchase in Florida. Another example is Amendment 4, the Hometown Democracy initiative. This will require that any change to the comprehensive plan be voted on by public. A version of this bill was passed in St. Petersburg Beach and it created economic havoc. It essentially put a halt to any economic development and has resulted in costly litigation to the municipality. As Realtors we should encourage opposition to this well intentioned but poorly crafted amendment. These are just two examples. As Realtors, we should stay on top of issues that affect our industry and communities and be involved in the process. It just makes good business sense. JuliaJulia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Look Behind The Curtains Too...

Mon, 05 Apr 2010 02:54:41 -0700

When a buyer looks at a home, they typically they are looking to see if the home meets their needs. Often homes are staged to create an emotional connection to a buyer. A buyer can get sucked into the decorating (good or bad) and may neglect to do a few simple things that can be very valuable in their evaluation of a home. Here are a few simple suggestions that will help identify potential red flags to a purchase. Note, these red flags should not necessarily eliminate a potential home for purchase. Instead, if the home is the one selected, the information can provide additional information for a home inspector to evaluate further. I should add I'm not a home inspector, and these suggestions should not be construed to be a replacement for a home inspection. Here in Tampa, I always tell my buyers when we look at a home, "the decorating may be nice, but really "look" at the home". Look up and down, and behind the curtains, especially the shower curtain. Behind window curtains look at the windows, is there evidence of leaks? Behind the shower curtains is the grout black and moldy? At a minimum it could mean poor cleaning practices, at worst it could mean lack of attention and maintenance. If the home has central heat and air, look at the filter. Is it clean? Is the grid clean? How are the vents? A dirty filter and vents could indicate lack of attention and maintenance and the a/c unit may need servicing as a result. Run the water and look under sinks. Swelling of wood underneath the sinks may indicate previous leaks. In addition look at the ceilings, including closet ceilings for signs of leaks or repairs. If there are any, this should prompt more questions to the seller. Lift up rugs, especially rugs over carpeting. Stains are typically cosmetic, but a rug can hide those stains and you won't see them until the property is vacant...unless you look. Being more diligent in evaluating a property can save heartache in the long run. The buyer is more prepared to deal with inspection issues as well. I'm sure there are more tips. The bottom line: Don't just look at a home, really LOOK at a home. Julia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Current and Proposed Changes to FHA Loans...How Will They Impact Sales?

Mon, 22 Mar 2010 02:34:03 -0700

In today's market, the FHA loan has been the loan of choice, especially for first-time homebuyers. The low down payment, and the ability for a seller to contribute up to six percent in closing costs are some of the loan's appeal. However, there are some recent changes as well as proposed changes that may impact the appeal of this popluar product. First, effective with new case numbers assigned on or after April 5, 2010, FHA is raising the Upfront Mortgage Insurance Premium from 1.75% of the loan amount to 2.25% of the loan amount. This particular change makes sense. Essential the Mortgage Insurance Premium is a risk premium and given the current economic environment, necessary. I believe this change will have a nominal impact. FHA has alos eliminated the 1% fee cap on Origination fees. This is a concern because there are unscrupulous lenders with predatory practices and this has the potential to increase the cost of obtaining an FHA loan. FHA said they are going to issue further guidance in the near future and have indicated this is not a green light for abusive lending practices. We shall see. It is the PROPOSED FHA changes that we need to take note of. These proposed changes are swirling around and I believe if enacted will significantly impact the first-time homebuyer market. The first change is the downpayment increast from 3.5% to 5%. In addition, lower credit scores may require a higher down payment of up to 10%. The thought process is the more down the less risk. However they have raised the Mortgage Insurance Premium to offset that risk. The second change is the decrease in seller concessions from a maximum of 6% to only 3%. This is an important change. I'm curious what you may think of these changes. How do you think they will impact sales in your market?Julia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Yes...New Construction Can Have Defects...Top 10 Defects in New Construction

Fri, 19 Mar 2010 03:37:02 -0700

Many buyers prefer new construction to existing resale properties because there is a perception that a newer home will require less work and because it's new, they think they can save the expense of a home inspection. Yes, a newly built home won't have wear and tear and the operating systems like the central heat and air will have warranties, but make no mistake. New homes require upkeep and maintenance too. Filters have to be changed, lawns have to be cared for and more. It's just you won't expect to replace a roof or major system in the near future. Unfortunately a common misconception with new construction is that it doesn't need a home inspection. Nothing could be farther from the truth. An inspection during the homebuilding process can save major expenses later down the road. The buyer should find an inspector familiar with the home building process and work in tandem with the builder to facilitate the inspections. A good builder will have no issue with an independent inspector overseeing their work. Here's some reasons why to do an inspection. According to Paul Tavares with Us Inspect, there are 10 top defects found in new construction. They are: * No insulation in the attic * Missing proper roof vents, or vent holes cut, but roofed over * Cut trusses in roof or floor trusses * Windows installed properly * Missing backing blocks at tubs and showers * Heat vents missing, not connected, or in doorways * Inoperable or missing GFCI's in required areas * Hot and Cold water reversed at faucets, tubs, and showers * Tempered glass missing in required areas * Improperly installed roofing, flashing, or roof jacks. Some of these items are fairly minor, but something like improperly installed windows can be a serious and expensive problem. Paying for an inspection on new construction up front, can save you major expenses later down the road. How do you advise your clients with regard to new construction inspections? Julia Stander www.tampaproperty4u.com Julia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Moving beyond our differences

Tue, 16 Mar 2010 01:56:30 -0700

It happened yesterday and today I'm still mad! Why...because a listing agent I know feels it's incumbent of him to tell his sellers that the sales assoicate who will be helping him out with an open house is a "big black man". My question is why? Because the man is big? Of course not. I told the agent he can't do that. To do so would imply there is an issue with the associate because he's big and black and that feeds into the unfounded stereotypical perception of an African American male. As licensed agents we cannot steer our customers based on race, religion and familial status. The same is true with regard to how we refer to and treat our peers. A licensee's training and experience are what makes him qualified as an agent not his size or color. If the listing agent feels he will lose the listing because of the color of the associate who is sitting at his open house. then he needs to rethink his role as the listing agent. We are all professional! Sorry for the rant...it just makes me mad. Julia www.tampaproperty4u.comJulia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com

Short Sale purchase...Should or Shouldn't you

Fri, 12 Mar 2010 06:20:02 -0800

Here in Tampa, it seems that approximately 6-7 out of 10 homes are short sales. This is especially true for the entry level homes priced between $75,000 to $225,000. Short sales are homes in which the seller owes more on the home than he can sell it for, hence with lender approval, he must sell "short". Short sales can be a good value or they can be a nightmare. How do you decide if a short sale purchase is right for you? First you need to consider your closing date. If you are in a hurry, forget it. Short sales can take anywhere from 4 weeks to 6 months or more for approval. Even a so called "approved" short sale has to be re-submitted to a lender for your specific transaction. If you are hoping to take advantage of the Tax Credit, think carefully about a short sale..though you only have to be under contract by April 30 and close by June 30, it's still a risk that the transaction won't close on time, or if it does, it may cutting it close. Does the listed property have one or two mortgages? Typically you have a greater chance of a successful short sale if the property has only one mortgage to negotiate. If the property has two mortgages, often the second lienholder is not willing to accept what the first lienholder is willing to pay, usually around $3000. You could wait for months and find out this is the case and will have to start over if a deal can't be made. Is the seller willing to sign a promissory note or accept a deficiency judgement? Your agent should ask this question up front, before going to contract. This is especially important to know if there are two mortgages because often the first lender will accept less than owed and not require a deficiency judgement but the second lender often does. Now logically, it's better to have a deficiency judgement for a lesser amount than the entire mortgage balance from when the loan goes into foreclosure. However this can be an emotionally trying time for the seller and they often don't think rationally at this point. Many properties that are offered as short sales are in neglected condition. If the home is a good value, it might be worth the wait to buy the short sale. However, some loans like FHA and VA require the home to be at a minimum standard as far a condition is concerned thus making a poorly kept short sale a poor option. I have successfully worked with buyers of short sales and based on their individual purchasing goals and helped them achieve those goals. However a short sale is not for everyone. It requires patience, mental toughness and a good understanding of the process. The key to a successful short sale is to ask the right questions and be prepared. Julia http://www.tampaproperty4u.comJulia Stander Broker Associate Coldwell Banker Residential Real Estate julia.stander@floridamoves.com www.tampaproperty4u.com