Why You Should Use a Realtor...

Home sellers are more than twice as likely to get their homes sold if they use a Realtor®, rather than trying to sell their home on their own, according to a new survey conducted by HomeGain of 400 home owners nationwide from July 31 to Aug. 10. Seventy-three percent of the home owners surveyed said they used a Realtor®. On the other hand, 21 percent of those surveyed said they tried to sell their home themselves. The survey found that 66 percent of the home owners who used a Realtor® were able to successfully sell their home compared to 30 percent of for-sale- by-owners. What’s more, the survey found that 22 percent of the for-sale-by-owners eventually decided to use a Realtor® to try to sell their home. More than half of those who did were then able to sell their homes too, the survey found. “The value of a Realtor® in a real estate transaction is made strikingly apparent in our 2012 FSBO verses Realtor ® survey of home sellers,” says Louis Cammarosano, general manager of HomeGain. “A qualified Realtor ® understands the dynamics of the market and can better assist home sellers in the pricing and preparation of their homes for sale.” Source: HomeGain Thank you Tina Shields with Allen Tate Mortgage for passing on this useful info!

Ultimately... None of that Matters!

Lisa and I recently had a wonderful Clemmons home go under contract. Without going into specifics, I'll just say that the contract price is significantly lower than what we expected. Even now, I can't quite grasp how it is selling for what it is. It's just defying the supposed data and market trends.

So why did the sellers take the offer?  When I first saw the offer, it was even hard for me, as the professional, to be objective. I thought "yeah, right"!  I had gotten word from another agent that an additional offer was coming, so we were confident we could wait for that one and it would be much better. The next day it came in, and it was within striking distance of the first one. What???  Then, I got a verbal offer from an out of area agent. I usually don't even listen to verbals but was thinking someone would have to throw us a bone. Guess what?  It was between the first two!

My point in saying all of this is that we can analyze, strategize, and categorize all we want, but BUYERS determine value. You must work with your Realtor to determine the most beneficial market value and aggressively market, but honestly, you are still at the mercy of the market.

So why do I use a Realtor if they aren't even right???". Mr. Consumer, I hear ya I hear ya... that's a different post, but how many unrepresented sellers do you know in this market getting three offers in one week??

Picking the Right Agent

Steve Harney once again gives great advice to both buyers AND sellers on his KCMBlog. Read about why you need not just any agent but THE agent here.

So What Does That Unfair and Exorbitant Fee Get You?

I have had several inquiries lately regarding me cutting my commission -- first, let me state that I DO NOT do that. Second, even if I wanted to, my company wouldn't let me, so... this is sort of moot, but here's why:

We are a full service brokerage. Another company or agent may list your home for a percent less, but put the exposure you get with them next to the exposure you get with us, and ours is 2, 3, even 4 or 5 times more extensive. So, that "extra" percent you are paying us is getting you much more than 1 percent more exposure. In a market like we have now, everyone needs and wants to cut expenses; but with the overabundance of unsold inventory we have, the LAST thing you need to do is go with someone who isn't giving you maximum exposure!

I am a full service, full time Realtor. Between Lisa and I, we truly strive to be available for you anytime. Of course there will be exceptions to this, but we don't work a 9-5 M-F day like a lot of other professions. Additionally, we have personally undertaken a very aggressive marketing plan, so even within our own company, we can state without a doubt that we offer more services than most other agents. I tell people that the second the sign goes in the yard, I start spending money, and I mean it. Often in marketing a home I actually go in the hole, but if I think on that long enough, I'll get depressed, so let's move on...

You are paying not just for our marketing capabilities but also for our experience and professional insurance. A woman I know (and who is one of my really good friends who gave me permission to use her story!) bought a home on her own. There were some undisclosed issues that ended up really affecting her property value. When she went after the seller, his pockets were empty. Had she had an agent and the issues been undisclosed, she could have sought recourse from the agent's company. Of course, with an experienced agent who knew the red flags, she probably would have avoided the pitfall all together! Then, not learning from experience, she later attempted selling a home on her own. She had complete strangers knock on her door at 10pm asking to see her home. Not only did she run security risks like that, but NAR statistics show that selling your home with a Realtor brings you more than selling it on your own. What most folks don't realize is that when folks look at a FSBO, they are expecting to pay less... so you are not only getting less money, but getting less experience! I often give my tax preparer example. When I was teaching school, my husband and I were audited. (Don't ask why a 2 teacher household was audited, but I digress. Surely there are bigger fish to go after??). Anyway, I had paid a professional to prepare our taxes. Could I have done it myself? Probably... but then I couldn't have gone back to them for help or recourse when I was audited. The fee I paid was well worth the peace of mind.

Finally, I'll let you in on a little secret... we really don't put as much in our pockets as you think! Let's do a hypothetical example to demonstrate this:
123 Main St sells for $200,000. Commission is 6%, so $12,000 total. A Tate agent (moi) is representing the seller, and an agent with XYZ Realty is representing the buyer. So, that $12,000 immediately becomes $6,000 to Tate and $6,000 to XYZ. Of the $6,000 to Tate, let's say my split is 50% (again, hypothetical)... so my part is down to $3,000. But wait, I have to pay taxes on that, so I set aside $900, or 30%, to be safe. So now I'm down to $2,100. But wait again! I spent $700 marketing it in various print and online media (never mind the hours spent actually doing the work), so I am now down to $1,400. And, unfortunately, it took 4 months to sell, so I am down to $350 a month. And, oh yeah, the seller wouldn't agree to sell at the negotiated price, so I finally agreed to pay the home warranty out of my pocket just to get us to closing. Welp, there goes one month's check. So, I end up with $1,050 for 4 month's work. Oh... but wait! I had to drive out to the house often to fill brochure boxes and flier trays, make sure my sign was still up, sweep off the front stoop, and clean the toilets for showings, so I spent some of that on gas, cleaning supplies, and new pants (because I splashed my good ones with bleach...), etc. Do you get my drift???

Don't get me wrong -- I LOVE MY JOB! I thank God every day for putting me in a career that I enjoy so much and in which I get to interact with so many different and wonderful people. But, I have to be honest, the perception that I am the greedy one because I won't cut my commission is reeeeeeeeeeeally getting to me.

Oh, did I mention I left home this morning at 7:30am, I'll zoom home at 6 to see my children before they go to bed, I'll leave again to go out to show one more home to folks who don't get off work til 6, and then I'll return home to relax complete paperwork and plan ads til I doze off? Yeah, we are definitely overpaid...

You Mean I Have to Sell it TWICE??

So many people contemplating selling their homes these days are just blown away when their agent tells them they have to sell their house twice. What???

Not only do we have to find a ready buyer who is willing and able to pay a price agreed upon by both parties, BUT the home has to appraise. It doesn't matter if a buyer is willing to pay $315,000 for your home... if they're getting financing (and most are), and it doesn't appraise for $315,000, they will not get the loan. Appraisals take into account active competition but most importantly sold competition, and foreclosures throughout the marketplace have compressed prices to the point that appraisals are getting TIGHT. Appraisers, mortgage lenders, brokers, etc. are all feeling the repercussions of looser lending standards and appraisal guidelines of the past, so if an appraisal falls short, it falls short. Gone are the days of an appraiser pulling a few thousand out of the sky to reach contract price.

So then Mr. Potential Seller says "well if they really like my home they will make up the difference". Possible, but unlikely, especially in today's market. How many of today's buyers (especially buyers with diligent and thorough agents representing them) are going to be willing to pay more for a home than it is worth?? People are uncertain of their futures, and inventory is too high for this to happen.

So, selling to a buyer is one thing, but the REAL test is selling it to the apprasier. Consult your trusted Realtor before you name your price. You may feel as if you are losing $$$, but you will actully be SAVING money in the long run in the form of carrying costs, lost time, and the inability to purchase yourself, by pricing it realistically from the get-go!

What Buyers Want

I just read an interesting article in REALTOR magazine about what buyers want in a home. It hammered home the point that so many sellers today still have a hrd time swallowing... buyers want to feel like they are getting a DEAL. Even if a home is priced below market, they are going to want to negotiate on pricing. They want incentives -- closing cost assistance, HOA dues paid for a year, a home warranty -- everything AND the kitchen sink! They want a home in move in condition. Gone are the days of offering allowances so that buyers could do work themselves, because folks today just don't have time. So, Mr. or Mrs. Seller, what can we do to get more folks looking at your home?

Buyer Expectations

This weekend I had several instances of buyers with unrealistic expectations (all were working with other agents, so I am not talking about any of my folks here!). I hear a lot "the market is down, so they can't expect that price." But guess what? A lot of sellers are educated and are priced for this market already. So, before you lowball just because "it's a down market," please have your agent do a market analysis. You may still choose to lowball, but at least you will recognize that many homes are already priced for THIS market and not for a booming one. If you need a market analysis done and don't have a Realtor, contact me asap!

Why Being a Mom Makes Me a Better Realtor

As I sit here watching my daughter blissfully nap in her swing and await the arrival of my husband and son home from a long day, I can't help but think about how being a mom has changed me. I knew it would change how I planned my daily life and how I spent my money, but I didn't realize that it would change the fundamental ways in which I look at everything, even my job. I have always worked with clients with concerns regarding neighborhoods, schools, etc. Those two things, among others, are important factors for home buyers with children. I have always understood that. I used to get that a certain school was important, or a neighborhood pool, for example, but now I GET IT. The welfare of your children colors every decision you make, from deciding where to eat supper to where to buy a home. We no longer come first, and I wouldn't have it any other way. Being a mom has made me more compassionate, empathetic, and patient (life was simpler when I didn't care so much!), and hopefully my clients will see that I really do GET IT now.

Is the Madness Over?

If you a Realtor, you are probably feeling a little dazed from the mad rush of folks trying to take advantage of the tax credit over the last couple of weeks. While I do think some of the urgency is gone, I think when people realize that rates will be rising we will be right at it again! I know the last couple of days my phone has not rung quite as much, but folks are still on the hunt. Happy Spring!

Now... to the potential buyers out there... Rates today are 4.875 for conventional and FHA, but they will not stay that way. Economists and leading real estate indices are indicating a rise over the summer... and on a $100,000 property, even a half point can make a difference. So, even though you may have missed out on the tax credit, the early bird still catches the worm. Call me today if you have questions or are ready to get started!

Pending Home Sales Up!

From Realtor.org Pressroom:

Record Streak Continues for Pending Home Sales
Washington, October 01, 2009
Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.
Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said. “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month.”

Are All Agents REALTORS?

A common misconception among the public is that all real estate agents are REALTORS. They are not, and the difference is very important to understand. To be a real estate agent, you must complete the coursework required by the state in which you hope to practice and pass the state test. REALTORS, on the other hand, undergo yearly ethics training and voluntarily adhere to a strict code of professionalism. In short, "When you enlist the services of a REALTOR®, you can be confident that you're being dealt with honestly. Every member of the National Association of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. The Code of Ethics is a promise—as a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years" (taken from REALTOR.org).

As a REALTOR, I must approach the real estate transaction with some basic principles in mind. I must be honest with all parties in the transaction – not just with you, as my client, but also with the other real estate practitioner and his or her clients; put your interests ahead of my own, at all times; disclose all pertinent facts regarding the property and the transaction to both buyer and seller; and be truthful in all communications with the public (taken from REALTOR.org).