Archive for the 'Real Estate Industry' Category
Why Aren’t There Prices on Real Estate Signs?
April 22nd, 2010 categories: Real Estate Industry
Did you ever wonder why real estate “for sale” signs don’t list important information, like price, number of bedrooms, baths and square footage?
Before I was an agent and was a regular ol’ home buyer (I’m not just the President of Hair Club for Men, I’m also a client.), I cursed the fact that the signs couldn’t make it easy on me and just tell me the price. If it’s over my price range, then I didn’t want to waste my time calling an agent.
The lack of information on signs and print advertising is intentional - the goal is to get you on the phone or drive you to a web site to “convert” you into a client (yes, we want you to join our cult) or sell the home to you.
If you knew how much the home was, you may not call to set up a showing or look it up online. You wouldn’t get to hear our rehearsed sales pitch or see our snazzy photo on our web site - and we don’t want all that effort and money to go to waste.
In reality, most Realtors haven’t given it that much thought. Either we do what our broker tells us to or follow what the local custom is. This is the way it’s been done for as long as anyone can remember.
Today, buyers go straight to the internet anyway and skip the call to the listing agent on the sign. Before buyers ever meet an agent, they can see 20 photos, look at a map, get info on the schools and get comparable properties.
So, next time you’re out driving and wonder how much a home is listed for, give the Realtor a call - they’d/we’d love to tell you all about it. Talk to you soon!
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$1,500 for Homeowners to Prevent Foreclosure and Encourage Short Sales
March 10th, 2010 categories: Mortgages & Finance, Real Estate Industry
Beginning April 5, 2010, homeowners in trouble will get a little assistance to prevent foreclosure. HAFA (Home Affordable Foreclosure Alternatives) will encourage banks (by giving them $1,000) and homeowners (by giving them $1,500) to figure out a solution other than foreclosure. The program refers to the money for homeowners are “relocation assistance.”
We all know, foreclosure is bad. Your credit score can drop by as many as 300 points and will prevent you from buying another home for several years. Homeowners face deficiency judgements. Property values in the surrounding neighborhood are negatively impacted. Vacant bank-owned properties invite crime and vandalism.
However, until this recent directive by the US Treasury Department, avoiding foreclosure has been difficult. The loan modification and refinance programs (HAMP) have had some impact but many homeowners don’t qualify. And if the homeowners get their bank to agree to do a short sale, the process can take months longer than a traditional sale and is much more complicated, so much so that homes can still end up in foreclosure.
HAFA also seeks to streamline the short sale process by setting up standards (imagine that!) to make short sales occur more quickly, which increases the marketability of short sales.
There are eligibility requirements:
Homeowners need to first go through the HAMP program to apply for a loan modification.
Home is a principle residence.
Mortgage originated prior to Jan. 2009.
Mortgage is owned or guaranteed by Freddie Mac or Fannie Mae.
Borrower is delinquent or will be in the foreseeable future.
Homeowner has a hardship.
Borrower’s total monthly housing payment exceeds 31 percent of gross income.
Unpaid principal does not exceed $729,750.
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Groceries and Real Estate? RE/MAX New England to Open Offices in CT, MA, RI Stop & Shop Locations
January 28th, 2010 categories: Real Estate Industry
Yesterday, RE/MAX New England announced it will be partnering with Stop & Shop to open up to 17 in-store branches.
I don’t get it. I get banking at the grocery store. I get renting a movie. I get the need for a pharmacy.
But real estate transactions don’t really qualify as a “quick stop.”
And I can’t imagine that the RE/MAX brand, which is built largely upon the experience and expertise of its seasoned agents, will benefit from this. I have trouble imagining top agents doing business in this environment. I also have trouble imagining that a lot of potential buyers and sellers will be drawn in if there isn’t that quick transaction (check cashing, ATM,etc) to attract them.
What I really think this about is RE/MAX opening more offices and getting more agents. More offices and agents=more fees to RE/MAX. Not a bad thing but if “more” lowers the quality of agent and level of service, then I think RE/MAX is compromising the very thing that attracts many agents and customers to its brand.
But I hope I’m wrong…maybe you’ll see me next year at your neighborhood Stop & Shop. Always the optimist, at least I won’t have to go far to get a cup of coffee or deposit my commission checks.
Read The Real Estate Bloggers post, I’ll Take Some Eggs, A Gallon of Milk and a 3 Bedroom Ranch.
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Avoid Buying a House in Connecticut with the Default Agent
March 3rd, 2009 categories: Home Buyers, Real Estate Industry
When you’ve purchased a new computer or cell phone, what’s one of the first things you do after taking it out of the box?
Personalize.
You change the screen saver from the default. Upload a new background photo to replace the default. Change the ringtone from the default. All before doing any bit of work.
So, why on earth would you buy a house with the default real estate agent when you can choose your own buyer’s agent?
Who is the the default real estate agent?
The default real estate agent is the agent whose number you call on the sign.
The default real estate agent has their photo next to the listing on that Realtor.com ad.
The default real estate agent is sitting at the open house and is very happy to talk with you.
The default real estate is the listing agent on any home you’re interested in buying when you do not already have a signed buyer’s agency agreement.
Why not use the default real estate agent?
For the same reason you add your kid’s photo to your desktop - you want the power to choose. Make the purchase your own. Be in the driver’s seat.
If the only ringtone available on your cell phone was some annoying techno anthem, would you ever take your phone off vibrate?
By using the default real estate agent, you just handed control over your home’s purchase to someone you chose solely because they happen to be the listing agent for the house you want to see.
OK, so by calling the listing agent on a house and asking to see it doesn’t mean that you are going to buy the house. But what if you see it, and fall in love with the house? What then?
You don’t get a do-over. When the listing agent shows you the house and you don’t already have a buyer agency agreement in place with your own buyer’s agent, guess what? You don’t now get to pick your own agent to negotiate the deal for you. You get the default real estate agent.
Does it really matter if I don’t pick my own real estate agent?
It doesn’t matter if you don’t care how much you’re paying, whether the house will pass inspection or that the listing agent is representing only the seller in the transaction and still collecting a commission off of you.
And even if the listing agent has another agent in their office work with you (a designated agent), then you still didn’t get to choose your own representation now, did you?
But don’t I get to save heaps of money on the real estate commission by dealing with the listing agent directly?
Unlikely.
If you put in an offer with the listing agent, he/she, per their agreement with the seller, may agree to kick back some money to you. Then again, they may not. You won’t find this out until they’ve showed you the house and you’ve wasted your chance at bringing in your own buyer’s agent.
What is certain is that by using the listing agent, you’re actually getting a dual agent. An agent acting as a dual agent can only act as a “facilitator” and won’t give you or the seller any information that could benefit either side.
And if you’re assigned a dual agent (designated) who will actually represent you, then you’re still using a buyer’s agent but one you didn’t get to choose.
The best that can happen by using the default agent is that the agent may kick back 1% of the sales price to you. But a buyer’s agent through due diligence (comparables, inspection costs, research and intuition) can also save you that money or more. Plus a buyer’s agent works for you, all the time.
Skip the default agent and always hire a buyer’s agent BEFORE looking at any homes.
You may also enjoy reading:
How to Avoid Beer Goggling Your Next Home Purchase
Public Opinion About the Real Estate Industry
A Punk by Vampire Weekend
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How Can It Always Be a Good Time to Buy Real Estate?
January 16th, 2009 categories: Real Estate Industry, Real Estate Market
I heard the National Association of REALTORS’ “It’s a Good Time to Buy” campaign today, again.
The marketing campaign has been around since 2007 in some form and I’m wondering if it has done anything to bolster buyer confidence…which I think was it’s intended goal.
It’s not as if consumers don’t get that the National Association of REALTORS (NAR) represents REALTORS and their interests - not those of average Sue and Bob Home Buyer. Buyers I work with either don’t pay attention to what NAR has to say, don’t know who the heck they are or are skeptical of anything NAR and REALTORS in general have to say.
Whether the campaign was in anticipation of or in response to negative media attention, average home buyers have been doing what they always do, buying houses because they need a place to live and want to feel good about owning their own home. They are completely oblivious to NAR’s message. Read the rest of this entry »
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