We put in an offer... where's the response!!???

Seems to be mini epidemic in my profession.

I am hearing of agents submitting offers to other real estate "professionals" [note here I put quotations around the word professionals because I feel that agents that conduct themselves in the manner of which I am describing are anything BUT professional]and they are not getting a response.

What???!!!!!

The seller wants to sell the house doesn't he? Why is there no response?

There can be many answers to this question... some of them reasons... some of them excuses... some of them true... and some of them lies.

Let's take a look at just some of the answers:

1. "My clients haven't gotten back to ME yet."
2. "My cell phone battery died."
3. "My client is out of town and difficult to get a hold of."
4. "We are not going to respond because there are more showings to take place."
5. "We are going to wait until after the Open House this weekend."
6. "We are not going to dignify that offer with any counter."
7. "I'm told we have another offer coming in."
8. "Your offer is too low."
9. "I called you back... didn't you get my message/email?"
10. "I have someone else interested."

That's just ten... a sampling of what we might hear. Meanwhile, you as buyer, sit and wait, and... let's be honest here... start to wonder about YOUR agent.

Understand these facts:

ALL offers that are submitted to a listing agent in writing MUST be presented. Please understand a verbal or oral offer is not binding.

In most areas the purchase contract includes a "Time Period of The Offer" clause. This means the sellers have a specified period of time to respond. If they do not respond within that time frame, the purchasers have the right to move on. IF the seller responds after the time frame, the purchasers have the option of accepting or even ignoring that delayed counter or acceptance even. So how much time should you give a seller to respond? Under normal circumstances a day is adequate. If they do need more time the agent may respond that, "We might need to have a little more time than the contract allows for, can we move that Time Period Of The Offer a little?"

By the way, there is usually a form available that can be given to the listing agency requesting that they have their client sign which verifies that they were, indeed, made aware of the offer.

It's too bad that this kind of topic has to be talked about, but unfortunately there are agents that are not taking their fiduciary obligation seriously.

Help me, PLEASE

I'm looking for your help here. I am two people.

I am a Realtor who makes a living when people buy and sell homes.

I am a thinking and rational adult who pays taxes.

The government... locally and nationally seem to feel that the public needs an "incentive" to go out and buy houses. So, in their collective infinite wisdom, they offer tax breaks and even MONEY back... if you will go out and buy a house.

Yeah! I make money because I help people to buy and sell houses!

Oh no! I lose money because I am a taxpayer, who's taxes keep going through the roof and it's those very taxes that are funding these "incentives".

So how should I feel about this? Happy? Frustrated?

Listen, I am all for anyone being able to buy a home. And just like anything else in life, you should probably not buy something you cannot afford. Simple rule right?

Well, these incentives seem to be targeted at persons that have shown a history of not being able to manage their money... more specifically, not being able to figure out how to save enough money to buy a house. This saving thing involves something that most Americans do not want to do anymore.... WAIT. We want it all and we want it NOW. And our governments agree. We should ALL have it now. "Oh, you haven't saved enough money? Here... you can borrow it from us... or a bank that WE have loaned money to."

Still, I feed my family by selling real estate. So if the government or some other entity wants to throw out a program or embark on a project that moves people to buy or sell houses... I should be happy.

Yes? No?

Help me! I'm two people!

I know he's an attorney and I know he's your uncle... but DON'T do it!

So here's the scene... The buyers want to buy a house in Albany, NY. They are using a local Realtor and that's all cool. When they find the house that fits they tell the Realtor their uncle, who is an attorney from back home where they grew up, will write up the offer. Now, around these parts, the real estate agents write up the offers. In some parts of the state and the country, it is otherwise, but in the Capital Region it's the agents that do the contract.

What does the agent do? It is very difficult to tell a client that their uncle, who is all well meaning and good, that this is not a good idea. Especially if this uncle is planning on using the agreement that is customarily used in his area. It confuses people. In fact it often has features and clauses that the local Realtors have never seen.

What do people do when they see something they are are not familiar with? They back away. We, obviously don't want that reaction from the sellers, but sometimes we can't talk them off the wall.

Simple approach: When in Rome... do as the Romans do. Simpler approach: Use a local attorney familiar with the ins and outs and the idiosyncrasies of the area you're purchasing in... It will be in your best interest in the long run!

CONFIDENCE

You know, I had an opportunity the other day to visit some folks who were considering selling their house. They had been given my name by a past client and they wanted to meet me. So, I went to their place and they gave me the tour. And we talked about what they wanted to do. In the course of our meeting I explained what my role was, what resources I had available to me and what I would do for them.

They told me, on the way out that they were also going to interview another agent. I know most of the agents who are "really" in the business, as I have been doing this since 1982. I did not recognize the name and they told me that she was a friend and co-worker who does this part time.

Now, I told them I don't blame them for giving her a shot. In fact, I would expect that a prudent person would interview more than one agent. But I also told them that I have in the past, observed people use someone else, for various reasons... "they're my friend"... "it's my brother's neighbor"... "they gave me a really good rate".... That kind of stuff. And I have had times when I genuinely felt sorry for them, because I knew that they would not get as good representation as they deserve. This also happens from time to time when one of my agents tells me the seller (or buyer) chose to work with someone else. I KNOW we can do the best job. I also have become aware of individuals and organizations who do not seem to embrace the same work ethic as we do. I, however, would never throw anyone in... it's just not very classy and I feel is bad business.

So I told my wife about what I said... I tell her EVERYTHING. She said that would have turned her off. Now, my daughter who is 25 was listening in and she said that she would want to hear that. She pointed out to her mother that you want someone who is confident.

So, that is what I'm blogging to you today... Look for confidence in your agent. Someone who KNOWS they can get the job done. You might be paying a little more than others might charge, but you want someone to get the job done and get it done efficiently and in in a timely and professional manner!

Good luck... email me or call me if you have any questions or thoughts!

They turned down your offer?

So, you put pen to paper, as they say, and the agent is telling you that the sellers gave you a big, fat, "NO!".

Was it a decent offer? I mean pretty reasonable?

Don't sweat it.

Let 'em sleep on it.

I've seen many a time that either the next day or so the sellers' agent gets in touch to try to re-visit the proposal. Don't get all excited here... they probably still aren't going to take your offer as written, but they at least are willing to talk a little. Maybe come closer to your terms.

So there's my advice. Sit tight. You might be surprised as to how it all comes together!

Peace.

REDUCE YOUR RE TAXES

Around the Albany, NY area it is that time of year that you can have a talk with your local tax department and discuss your taxes.

From May 1-26 you can go through a process known as "grieve your taxes". This is process designed to allow property owners to approach the assessor's office, look at other property owners' taxes and assessments and make a case to have their assessment (taxes) lowered.

Now, don't get the wrong idea here. You aren't going to gouge The Man here. It's a process to promote fairness. So what you are doing is looking at other properties that are similar to yours... think: square footage, number of bedrooms, closeness of proximity to you, improvements such as garages , pools, decks, sheds. Then if you discover that there are many homes assessed less than yours, well, you may have a case. Then the onus is on you to fill out the proper forms and submit them to the assessor's office. Different areas have different procedures. You may be able to meet with a representative from the assessor's office directly to plead your case, or you may just send the form in. I have gone in on a few occasions and met the assesor's rep in person. I like the one on one approach. Although sometimes I felt like the rep was taking it personally!

Anyway, you might look into the tax situation and find out that your tax assessment is fair! Or better yet... you might actually be low! By the way, if you just bought recently you should know about the WELCOME STRANGER ruling. I'll tell you about that later or you can contact me as to how the courts view re-assessing properties that were just acquired!

Bottom line is this... save yourself some money... look at your assessment. May is usually the month to do it!

Peace out!

Hey Real Estate Dude! You need to Work HARDER!

My rambling today is centered on a remark I heard a friend exclaim, as he is frustrated with the "non-results" of his engagement of another real estate agent to sell his home. He questioned, "Why can't these real estate people just work harder?!!" .... (to get his home sold). He declared that his agent had agreed to list his house at a certain price and now all the agent is doing is trying to get him to reduce, reduce, reduce!

And I thought about this for a while. I thought about the 22 or so agents that work out of my office. And I thought about the hundreds of agents I have known and met in those years. I know they work hard, because I've watched them. They put a ton of effort into helping buyers and sellers alike. They perennially do whatever they need to do to get the job done. Sometimes it's draining. And sometimes it almost breaks them!

But I kind of knew where this guy was coming from. In a previous life, the real estate agent could hustle. They really "worked" a buyer over.... convincing them that this real estate was a screaming good deal! They could get the buyer to believe that this deal was so hot that they had better jump on it or they were going to lose out! They seemed to be able to make a silk purse out of a sow's ear!

And they turned over every stone to find a buyer! Sometimes going door to door. Talking up their listings everywhere they went.

Enter the computer. Enter new technology. Enter public access to records and statistics. Enter , get this... buyer representation!

In today's real estate arena, you can't put a higher price on a property and realistically hope that some "rube" will come along and pay it! The buyers have SO much information available to them! They have an agent to counsel them. And even if they did cruise in and pay more than market value, the bank will probably stop them, either by way of the appraisal, or terms that the buyer can't meet! Not to mention an attorney might be reviewing the contract and ask their client if they researched the market, or at least ask them how they came about that price!

So what does an agent need to do to make a seller like I mentioned earlier in this blog, happy? They need to work hard in the beginning. The first and most important thing they need to do is they need to work hard in counseling their clients in proper pricing. A good agent knows this and does this right out of the gate. And they need to be frank with the seller about cleaning up and getting the house ready for the market.

But let me tell you what a weak agent does. A weak agent visits the client and has not developed the confidence it takes to tell the client what they need to hear. The weak agent falls victim to allowing the seller to dictate the asking price based on what they want... not on what the market will bear. Now a weak agent may go into the listing opportunity fully aware of the market, but wants , so desperately, to get the listing, that they will agree to any number the seller puts up. They have not learned, or don't have the guts to explain the facts and be prepared to walk away from an impossible situation. They might even think, "I'll take this listing at this inflated price because I know the sellers will eventually reduce to find the true market value." But what does this do? It does a lot of things, and most of them are bad. It misleads the sellers. "Sure, we can put it on for that figure." They hear, "We can sell it for you." It puts an impossible task on the shoulders of the agent, and costs the broker a lot of money in advertising and carrying costs. It keeps in-the-know agents from even bothering to bring good buyers to the house. And after a house has been on the market too long, it becomes stigmatized and the buying public begins to think that there is more wrong with the house than just the price... hence it may never sell... EVEN BELOW market value!

SO, I agree... work hard! But work hard where it makes sense and can get the job done!