A BUYERS LIST OF MUST-HAVES

This real estate market is not for the faint of heart. Competition has made negotiating an art form. If you are considering purchasing a home, be certain that you approach your purchase with every possible bit of ammunition you can muster. Here is a list of the "must have's" in this market:

• An experienced REALTOR
• An experienced REALTOR
• An experienced REALTOR
• A lender who is responsive and knowledgeable...this does NOT necessarily mean your best friend or your uncle.
• The very best loan for which you can qualify. FHA, while wonderful, is the first offer to be eliminated in a multiple offer situation. If you can go conventional, DO!
• If you must go FHA, consider finding homes that have been on the market a while. There will be less, if any competition and you will have a seller who is much more motivated.
• Have as much money saved as possible in case that appraisal doesn't come in. You will be able to make up the difference between the appraised amount and the offered amount if you really want the house.
• Be informed. Listen to your REALTOR. They have been in the trenches, working this market. They know what it is going to take to get you that house. As was mentioned first, negotiating has become a true art form in this market and you need someone who understands what it is going to take to make that home your own.

This is a tough market. There are far too few homes to purchase and far too many buyers that want them. Be ready for the possibility that you may not get the first house you write an offer on. But, don't give up...hang in there and the reward will be your perfect home!

GREAT NEWS...MY CLIENTS DON'T NEED ME RIGHT NOW!

These times can test ones priorities. Are we here for our clients or for ourselves?
I don't think, in the 16 years I have been a Realtor, I have ever had such an on again-off again year. I would feel really awful if it was due to some action I took, but it wasn't. It was because my clients had good news that prevented them from completing their real estate transaction.
They were remodeling the home of their dreams. It was going to be their last house...their retirement home. It had acreage to grow grapes. It had space to continue their daycare business. And then, health issues arose and the dream became a logistical nightmare. It was time to fish or cut bait, and they decided the best move was to cut bait. We put the property on the market and had lots of interest, but no offers. A month goes by and the health issues start to be resolved. There is light at the end of the tunnel. They don't want to sell their dream anymore and feel terrible about pulling it off the market. I am thrilled for them...they get to keep their dream! Great news!
She is about to have a baby and wants to purchase a home before the blessed event. She also wants to be a nurse and has had an application in to a highly thought of program for a long time. We found their perfect property and were in contract. We had completed the home inspection and resolved most of the issues. Then, she gets a letter....she has been accepted into the nursing program. However, she can't work, have a newborn and go to nursing school. She has to quit work and can no longer qualify for the loan. The good news is that she has been given the opportunity to follow her dream. The bad news is that we have to cancel the escrow. I am thrilled for her being able to follow her dream (and she had her baby on 11/11/11)!
Her father passed away and left a very nice duplex in a high-end neighborhood in Sacramento. They really don't want to be property managers and so we put the property on the market. It is truly an owner-occupied type of duplex so there is a limited number of buyers. After several months, they get the chance to have both sides rented, but the new tenants don't want to move in with the chance that they will be evicted soon after. I agree that their best option is to take it off the market until next year, so it is withdrawn. They own it outright, so it is great that they will be able to have an additional income.
She turned the single family home that I had sold her into a legal duplex, and did it well. Now she wants to get out from under a student loan and selling the home would make a good dent in her debt. I list the property and get ready to put it on the market. However, there is a chance that one of the tenants might want to purchase it and she discovers work that the property needs before selling it. We decide that now is not the time and to revisit selling it in the spring. She is happy to have the reprieve until she has more time to deal with it.
Often, our own interests come into conflict with what is best for our clients. We need to know that what is most important is what is right for the people we represent. Their lives are changed by events like what I have described. We just get a little less income. Priorities are pretty easy to assign when looking at it from the perspective of our clients. I am thrilled that, ultimately, it was better for my clients to not need me right now.

PLEASE....BOTHER ME!

I have some very nice clients...in fact, they are so nice that they are apologizing for making me work. They feel bad when they "bother me" to show houses. They feel bad when I offer to give them comps for the house they want to make an offer on. I have explained that this is my job; this is what I get paid for. So, to be very clear, here are the things I expect to do for my buyer clients:

• Give referrals for lenders, inspectors, insurance companies, escrow and title companies, etc.
• Provide a list of homes that fit your wish list.
• Show you as many homes as it takes to find the perfect property.
• Advise you as to the pros and cons of each home.
• Write a strong offer that will compete with any other offer to get you the home.
• Negotiate the contract with the other party.
• Make appointments and meet any and all inspectors necessary.
• Negotiate any repairs necessary.
• Oversee escrow and title to ensure proper charges and documentation
• Work with you lender to be sure contract dates are adhered to.
• Be with you during signing in case any questions arise.
• Do a final walk through to be certain the house is in the same condition or repairs have been made prior to close.
• Provide you keys to the property once it records.
• Be available for any future issues that might arise after recording.

Now, please, use me!

COMMITMENT IS VITAL TO THE PROCESS

How many times have the words "It's a great time to buy" been said? More than any of us can fathom. Is it true? For those who are considering purchasing, the answer is a resounding "YES".

Having said this, if the decision is to purchase, then commit to it. Put your heart and soul into it

• Prequalify with a reputable lender first. If you don't do this first, you are not committed because you have no idea what price range you are in...and don't trust on-line qualifying programs.




• Next, interview and retain a Realtor to represent you. If you don't do this, then you are not committed. Realtors are your best advocate and know the ins and outs of a very volatile market.




• After you have retained your Realtor, ask them to set up a tour for you of available homes in your price range. If your agent doesn't do this then your agent is not committed. Get another Realtor who will. Don't go out on your own to do all of your searches and then contact a Realtor to write up an offer...you may have missed many of the possibilities out there.




• Once you find the house of your dreams, listen to your Realtor and their suggestions as to how the contract should be written. They know what needs to be done to get you that house. Commit to that house and don't "test" the sellers to see what you can get away with.




• Once you are in escrow, commit to the purchase. Be realistic in your repair negotiations. Your Realtor will know what is reasonable and what isn't. Listen to them.




• Commit to time lines. When asked for something from your lender, get it to them as soon as possible. When asked for signatures, get them to the other party as quickly as possible.

Finally, be sure you are committed to the process. Nothing will discourage your Realtor quicker than to discover that you are still in the "considering" stage. Your Realtor will prioritize their clients and if they get a sense you are not serious, you will be lowered on their list. Good luck and good house-hunting!

TAKE ADVANTAGE OF YOUR REALTOR

We are here to be used and taken advantage of...the moment you decide that you want us to represent you.

There is an assumption among Realtors that if you have decided to have representation...and even better yet, have us represent you, then you felt that you did not have the expertise to accomplish the task at hand on your own. This being the case, the next step would be to trust that with our fiduciary responsibility to you, we are giving you the very best advice for your situation.

For example, if you tell your Realtor that you want to low ball every offer you decide to write (and I promise, with this approach, you will write a lot of offers), listen to what your Realtor has to say. In some cases, a low ball offer is just fine. However, writing a low ball offer in the first week a property is on the market is not one of those times.

If your Realtor tells you that to maximize the net to you as a seller you should spruce up your home with a few upgrades, don't wait until it has been on the market a month to decide now is the time to take your Realtors advice. It will be too late.

If your Realtor tells you that the house you have fallen in love with will not last, trust your Realtor. Odds are there are others that feel the same way. Write an offer immediately. If you don't, then don't be angry with your Realtor or the listing agent if it sells before you get off the fence.

When you are discussing the listing price for your home, trust that your Realtor knows the market and the correct price. Padding for negotiation simply doesn't work in this market. You can't negotiate an offer you don't get because you have overpriced your home.

These are just a few instances of the reasons you need to take advantage of your Realtor. You will find a much better real estate experience if you use the expertise and knowledge offered to you!

DYI IS NOT FOR REAL ESTATE!

The conversation started something like this:"Hi! I met you at an event last year. I had been considering buying investment property and decided that I could save money by getting my real estate license. I just received my license from the Department of Real Estate and wondered what do I need to do now? I know that I have to pay $245 to the Department of Real Estate, but I wondered if there is a way to not have to to that."

It was such an overwelming, under-informed question that I didn't know where to start."If you have not hung it with a broker, you need to do that. You can't sell or purchase real estate as an agent expecting to receive a commission unless you are a broker or have your license hung with a broker. And no, you can't get out of paying the Department of Real Estate licensing fees."

His response was, "But if I hang my license with a broker, won't I have to give him a percentage of my commission? Is there a way that I can do this without having to give up commission?"
"Yes, you will have to give up a portion of your commission and no, every brokerage will get their pound of flesh, one way or another." (I didn't quite say it that crudely, but there it is.) "Not only will you have to pay DRE fees and give up some of your commission, but most brokerages are members of the Sacramento Association of Realtors, whose fees include belonging to the California Association of Realtors and the National Association of Realtor. If your brokerage belongs, you are required to belong as well. The fees, depending on the time of year, will be several hundred dollars. Also, your brokerage will want you to pay for Errors and Omissions Insurance, which is several hundred dollars as well."

He then asked "How hard is it going to be for me to learn what I need to know to represent myself?"
"Let's see...after 15 years, I am still learning how to best represent my clients. I would never recommend that you try this on your own without lots of training...there is simply too many liability issues. What I suggest is, since the buyer does not pay the commission, and most agents are not going to discount their commission for a buyer, why don't you find an agent that works the area you want to purchase in, let them represent you, and forget that you got your license?"

"Yea...maybe that is a good idea."

This conversation lasted for 20 minutes, and went into many more things, but you get the gist!

SOLD QUICKLY AT FULL PRICE...DARN IT!

When setting a listing price for a home, accurate information and evaluation of that information is critical. The nuances of the neighborhood, knowledge of the comparable properties, current issues facing homeowners and buyers all come into play when setting a market value of a property. Realtors carry on a thorough discussion with their sellers, explaining all of the factors that affect their home's value. The discussion can take the tact of why the property is worth more than the sellers thought, but more often than not, the Realtor is explaining why it isn't valued at the same amount that the sellers thought. Of course, there is an emotional tie for the sellers...fond memories and endearing features of the property that add value for the present homeowners, but are simply a perk for a buyer. So, after long deliberation, the Realtor and property owners come to agreement on an acceptable listing price.

However, does the Realtor have the same discussion on the seller's expectations after the property goes on the market? For the Realtor, an ideal situation would be the property selling in a reasonable amount of time at very close to asking price. From a seller's perspective, receiving an offer too quickly and at asking price translates into not asking enough for the property. When the property is listed, it is critical to include this conversation. If we do our evaluation correctly, and market the home properly, the property should sell quickly and close to, if not at, asking price. The sellers should not be surprised by an early offer - rather they should congratulate themselves for hiring a Realtor that was professional, knowledgeable and thorough enough to do exactly what the sellers required of them.