In this day of technology we are finding that more and more people are looking at houses. And never leaving their house(apartment)!
Today's buyers want a link... a website... a URL... They want to "sneak" into your home without you knowing it. They want to take a look without inconveniencing you. So your Realtor hired a really good photographer/videographer to post your home to that wonderful resource, the internet.
Don't get me wrong here, because I absolutely LOVE the internet. But I have seen on more than one occasion a young couple walk into a house that they had seen pics on line and turn to me and say, "Wow! It looked a lot better than this on line!" But I have also heard this: "Wow. I wasn't sure I wanted to see this house based on the pictures, but you know what? I'm glad we came..."
You see my point right?
I think the best way for you to make a decision on a house is to GO LOOK AT IT. And don't eliminate it solely on the pics or video you saw on line. You might be pleasantly surprised.
Think about this. It's a big buy. You're not buying a stereo system or even a car. It's going to be your home! Your castle! You are going to be there every day for quite a while.
Take the time to go look. You don't have to stay a long time, but you might!
Showing posts with label buying a house. Show all posts
Showing posts with label buying a house. Show all posts
Saturday, December 31, 2011
Monday, November 21, 2011
"How IS the market?"
Having been in the real estate business for nearly three decades I am very often questioned about the status of the real estate market. And it comes from all sorts of people for all sorts of reasons. Some are merely friends who are just asking me how I'm doing.... somethimes it's someone with an agenda (they are thinking about getting involved in a purchase or a sale)... sometimes it's a person thinking about a career change...
It's a tough question to answer sometimes because the answer truly is relative. Right now, buyers are seeing the most favorable terms , maybe ever! Sellers sometimes are seeing this an opportunity to get their real estate sold because there is less inventory and less competition. Many investors will tell you there are deals to be had out there and real estate is a great place to be while the money and stock markets settle down a bit.
So it's all relative to what you (the questioner) want to do.
Locally... in the Albany NY area our pending units are down 5.1% from last year... our inventory is down 3.1% and the sellers are seeing 91.1% of their asking price... down 1.3% from last year....
So those are a couple "stats". But my office in Loudonville has seen a 26.1% increase in volume and 13% increase in units sold.
Why? My agents are full time professionals that re ready when their clients need them to be ready. They are not sugar-coating any of their analysis when working with clients... They are giving honest straightforward counsel and their clients are listening.
So right now the best advice I can give any seller or buyer is to trust their Realtor and follow their lead. Don't try to apply recent years' appreciations or even deprecations to today's market.
Good luck!
Wednesday, February 2, 2011
The Good Old Days ? Maybe
It's snowy here in the great Northeast and I am sitting at my desk trying to resist going off on a rant and sounding like an crazy old man...
Too late! Can't stand it any more. It's Crazy Old Man time!
When I started in the real estate business in 1982 I am not going to say there weren't computers, but essentially there weren't computers. I mean they were out there, but first they were pretty difficult to operate (anyone remember MS DOS?) and they were not being used in the real estate business.
I'm not here to say that computers are bad, because honestly... I LOVE 'em! You should too... they're here to stay you know! They really have simplified our lives. Put incredible amounts of information (and misinformation) at our disposal. And communication?!!! Revolutionized how easily we can get our messages out. So for the most part ... good.
But let me zero in on a dynamic that you, outside the real estate business especially, may not be aware of. Like I said, I started as a Realtor in 1982. Our database for houses for sale was the Capital Region Multiple Listing Service (CRMLS). It came in the form of a BOOK. Published weekly, but every other week was only the "new" listings... the other week was the complete inventory. There was a thing called the "Hot Sheet" which was mailed weekly to every broker who was a member of the CRMLS. And if you were truly ambitious you could physically visit the CRMLS offices and check out the new listings that had just been submitted. (They had them on clipboards in the vestibule... one clipboard for each day). So if you had a buyer that you wanted to get the "hottest" info for you needed to go down to the offices. I can tell you that there were never many agents there when I went...
Oh, but I said I was going to zero in on something. And that something was how we presented our offers. I am not going to give you a historical lesson on the agency part of this because it's too lengthy. But here's what would happen.
After my buyers left my office, having signed a purchase offer I would call the agent who had the house listed. This was usually done on a "land line". So we would have to catch them at the office or their home. I would tell the agent that I have an offer and I would like to present it as soon as possible.
You know what happened next? They would ask me when I would like to present it. For example I would say, "How about tomorrow morning at 10 am?" They would tell me they'll get back to me. Usually within a few minutes the phone would ring and the agent would say something like this, "My sellers can meet you at their house at 11 am... Is that OK with you?" I, of course would say yes.
Here's what I think has changed and not for the better. I would go to their house. I would be welcomed in by their agent and we would go into, say, the kitchen and sit down. The listing agent would introduce me and we would exchange pleasantries. I would tell them what a cool house they had... didn't your kid go to Guilderland High?... Wow can you believe how hot it's been.... Then we would settle in and start talking turkey.
But guess what was going on here? From my side of the table, I was gathering information, observing mannerism, looking into their eyes, FEELING the transaction. I was helping the listing agent to feel at ease. I was trying to project confidence so that the sellers would feel that this set of buyers and their agent could get this done.
And even before the paperwork got put on the table, I spent some time describing my buyers and their family. I painted a picture of this new owner lovingly caring for their home just like they did. I talked about where they came from and what they do for a living. I made the buyers real to them. In fact I usually got the sellers to like the buyers.
So now the rubber meets the road.
I present the offer as the listing agent listens in... all the while reading body language... facial expressions... looking into their eyes... gathering unwritten and intangible information. To help me better understand the sellers and to help me do a better job representing the buyers.
After I go through the presentation, I sit back and LISTEN... and observe. Sometimes a listing agent will ask me to give them a couple of moments so they can speak freely... but often the discussion takes place right away with me present.
If we have differences... prices... dates... chattle... whatever, I ask them to help me to understand the difference(s), so that I can communicate it properly to my buyers. I take notes... so they see that I am going to get it right and I am organized. Building confidence. But really what I am trying to do is to verify and overcome objections. "So if it weren't for the closing date being too soon, am I to understand that you would feel comfortable signing this agreement today?" or "If I could convince my buyers to move that date to accomodate your schedule, can we say we have a deal?"
9 times out of 10 we could come to an agreement right then and there. And the sellers would feel pretty good about who's buying their home and their agent that is overseeing the process.
What I'm talking about here is interpersonal relationships. Communication skills. Negotiating skills. Psychology.
You know what happens today? The listing agent tells us "Fax the offer over to me". I'd really like to present it in person. "No... just fax it and I'll present it."
You know what? I think, that if we would discuss more of these things in person... we'd sell a lot more houses. What do you think?
Like I said... I am not against computers and faxes and modern technology... I just think we could still utilize the human element to get it done.
Too late! Can't stand it any more. It's Crazy Old Man time!
When I started in the real estate business in 1982 I am not going to say there weren't computers, but essentially there weren't computers. I mean they were out there, but first they were pretty difficult to operate (anyone remember MS DOS?) and they were not being used in the real estate business.
I'm not here to say that computers are bad, because honestly... I LOVE 'em! You should too... they're here to stay you know! They really have simplified our lives. Put incredible amounts of information (and misinformation) at our disposal. And communication?!!! Revolutionized how easily we can get our messages out. So for the most part ... good.
But let me zero in on a dynamic that you, outside the real estate business especially, may not be aware of. Like I said, I started as a Realtor in 1982. Our database for houses for sale was the Capital Region Multiple Listing Service (CRMLS). It came in the form of a BOOK. Published weekly, but every other week was only the "new" listings... the other week was the complete inventory. There was a thing called the "Hot Sheet" which was mailed weekly to every broker who was a member of the CRMLS. And if you were truly ambitious you could physically visit the CRMLS offices and check out the new listings that had just been submitted. (They had them on clipboards in the vestibule... one clipboard for each day). So if you had a buyer that you wanted to get the "hottest" info for you needed to go down to the offices. I can tell you that there were never many agents there when I went...
Oh, but I said I was going to zero in on something. And that something was how we presented our offers. I am not going to give you a historical lesson on the agency part of this because it's too lengthy. But here's what would happen.
After my buyers left my office, having signed a purchase offer I would call the agent who had the house listed. This was usually done on a "land line". So we would have to catch them at the office or their home. I would tell the agent that I have an offer and I would like to present it as soon as possible.
You know what happened next? They would ask me when I would like to present it. For example I would say, "How about tomorrow morning at 10 am?" They would tell me they'll get back to me. Usually within a few minutes the phone would ring and the agent would say something like this, "My sellers can meet you at their house at 11 am... Is that OK with you?" I, of course would say yes.
Here's what I think has changed and not for the better. I would go to their house. I would be welcomed in by their agent and we would go into, say, the kitchen and sit down. The listing agent would introduce me and we would exchange pleasantries. I would tell them what a cool house they had... didn't your kid go to Guilderland High?... Wow can you believe how hot it's been.... Then we would settle in and start talking turkey.
But guess what was going on here? From my side of the table, I was gathering information, observing mannerism, looking into their eyes, FEELING the transaction. I was helping the listing agent to feel at ease. I was trying to project confidence so that the sellers would feel that this set of buyers and their agent could get this done.
And even before the paperwork got put on the table, I spent some time describing my buyers and their family. I painted a picture of this new owner lovingly caring for their home just like they did. I talked about where they came from and what they do for a living. I made the buyers real to them. In fact I usually got the sellers to like the buyers.
So now the rubber meets the road.
I present the offer as the listing agent listens in... all the while reading body language... facial expressions... looking into their eyes... gathering unwritten and intangible information. To help me better understand the sellers and to help me do a better job representing the buyers.
After I go through the presentation, I sit back and LISTEN... and observe. Sometimes a listing agent will ask me to give them a couple of moments so they can speak freely... but often the discussion takes place right away with me present.
If we have differences... prices... dates... chattle... whatever, I ask them to help me to understand the difference(s), so that I can communicate it properly to my buyers. I take notes... so they see that I am going to get it right and I am organized. Building confidence. But really what I am trying to do is to verify and overcome objections. "So if it weren't for the closing date being too soon, am I to understand that you would feel comfortable signing this agreement today?" or "If I could convince my buyers to move that date to accomodate your schedule, can we say we have a deal?"
9 times out of 10 we could come to an agreement right then and there. And the sellers would feel pretty good about who's buying their home and their agent that is overseeing the process.
What I'm talking about here is interpersonal relationships. Communication skills. Negotiating skills. Psychology.
You know what happens today? The listing agent tells us "Fax the offer over to me". I'd really like to present it in person. "No... just fax it and I'll present it."
You know what? I think, that if we would discuss more of these things in person... we'd sell a lot more houses. What do you think?
Like I said... I am not against computers and faxes and modern technology... I just think we could still utilize the human element to get it done.
Friday, July 30, 2010
Buy A House That's NOT for sale!
So, you've looked and you've looked, and you've looked. Your agent is great. Stays in touch and keeps feeding you leads. But nothing seems to do the trick.
If your agent hasn't already done it let's start thinking about buying a house that ISN'T for sale.
That's right. ISN'T for sale.
What is the harm with approaching the owners of a house that is not on the market and suggesting that if they ever gave any thought to selling their home maybe we have a buyer? I tell you I've done it. And more often than not I have gotten no response. And on occasion I've been more or less told to take a hike.
That's probably why you don't want to "cold call" homeowners and it's also why you should put this project in the lap of your agent... But if you can I.D. a couple of houses that you think you might be interested, your agent can "go to work" !
Your agent will know the way to put together a pitch that will illicit a response... say and explain the right things, so as to pique their interest, and hopefully describe your dilemma and situation to get you an opportunity.
You know what's good about this? You aren't in competition with other buyers. It's a quiet and less stressful sequence of discussions and meetings.
It will never be a "slam dunk". Who knows if it will work. But, hey.... you'll never know unless you try.
If your agent hasn't already done it let's start thinking about buying a house that ISN'T for sale.
That's right. ISN'T for sale.
What is the harm with approaching the owners of a house that is not on the market and suggesting that if they ever gave any thought to selling their home maybe we have a buyer? I tell you I've done it. And more often than not I have gotten no response. And on occasion I've been more or less told to take a hike.
That's probably why you don't want to "cold call" homeowners and it's also why you should put this project in the lap of your agent... But if you can I.D. a couple of houses that you think you might be interested, your agent can "go to work" !
Your agent will know the way to put together a pitch that will illicit a response... say and explain the right things, so as to pique their interest, and hopefully describe your dilemma and situation to get you an opportunity.
You know what's good about this? You aren't in competition with other buyers. It's a quiet and less stressful sequence of discussions and meetings.
It will never be a "slam dunk". Who knows if it will work. But, hey.... you'll never know unless you try.
Thursday, April 29, 2010
Do you know what the BIGGEST stumbling block is?
One word: Appraisal.
Yup. That's the big stumbling block. We get a buyer that wants to buy. We have a seller that is agreeable to the price proposed by the buyer. We do all the inspections. We apply to the lending institution The bank sends out the appraiser. The appraiser reports that they can't "find any suitable comps".
Now what? The bank sends a letter to the buyer and tells them that the mortgage application is denied because the house is not worth what the buyer and seller (and presumably two real estate agents) thought.
Rules and regulations tightly monitor and restrict what the real estate agents can do with the appraiser in the lines of saving the transaction. One of the most frustrating factors is that the appraisers are told they can't go any further back than 3 months. In many areas this means they really DON'T have any similar sales to use.
About the only solution is that the seller agrees to take the lower appraised price. If they can. Often they can't. Often they owe too much money. they'll end up upside down as they say in the business!
This recent re-occurrence is pretty difficult to avoid and predict.
So what can be done to safeguard against it ? My sources at 1stPriority Mortgage suggest that we avoid seller concessions whenever possible. Seller concessions as a general rule skew the actual fair market value, by adding thousands of dollars to the sale of the property.
I am counseling my agents to "think like the banks/appraisers" when obtaining a listing. That means doing an appraisal when speaking with a potential home seller that is more like what we can expect when the house goes under contract. This procedure is referred to in our profession as a CMA... comparative or competitive market analysis.
So, you as a home seller, need to make sure that the real estate agent who is pitching to get your listing is aware of these conditions. They need to be savvy and realistic in detailing their perception of where to list your property and what is the most likely sales price.
Appraisals. A tough pill to swallow right now, but it's real and it's here... right now. Be advised!
-Your friend in Real Estate... Steve
Yup. That's the big stumbling block. We get a buyer that wants to buy. We have a seller that is agreeable to the price proposed by the buyer. We do all the inspections. We apply to the lending institution The bank sends out the appraiser. The appraiser reports that they can't "find any suitable comps".
Now what? The bank sends a letter to the buyer and tells them that the mortgage application is denied because the house is not worth what the buyer and seller (and presumably two real estate agents) thought.
Rules and regulations tightly monitor and restrict what the real estate agents can do with the appraiser in the lines of saving the transaction. One of the most frustrating factors is that the appraisers are told they can't go any further back than 3 months. In many areas this means they really DON'T have any similar sales to use.
About the only solution is that the seller agrees to take the lower appraised price. If they can. Often they can't. Often they owe too much money. they'll end up upside down as they say in the business!
This recent re-occurrence is pretty difficult to avoid and predict.
So what can be done to safeguard against it ? My sources at 1stPriority Mortgage suggest that we avoid seller concessions whenever possible. Seller concessions as a general rule skew the actual fair market value, by adding thousands of dollars to the sale of the property.
I am counseling my agents to "think like the banks/appraisers" when obtaining a listing. That means doing an appraisal when speaking with a potential home seller that is more like what we can expect when the house goes under contract. This procedure is referred to in our profession as a CMA... comparative or competitive market analysis.
So, you as a home seller, need to make sure that the real estate agent who is pitching to get your listing is aware of these conditions. They need to be savvy and realistic in detailing their perception of where to list your property and what is the most likely sales price.
Appraisals. A tough pill to swallow right now, but it's real and it's here... right now. Be advised!
-Your friend in Real Estate... Steve
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