I want to pose a simple but often misunderstood question to you:
Who represents you in your real estate transaction? Well, when you list your home, the listing broker obviously represents you as the seller. In NH, there is no designated agency, so this means that every agent working for that brokerage owes certain specific duties BY LAW to you as the seller. Pretty straight forward, right?
OK, so now you're a buyer. Who represents you? Most buyers would assume that the agent showing them the property does, but they would be wrong! It's critical that you know this, as I'll explain in a moment. That is why before you look at any properties with a real estate agent you MUST be presented and Agency Disclosure to assure you know where you stand. This is not a contract, it is meant to make you aware of who represents who... and who doesn't!
Pay attention, now...
In years passed, real estate agents almost always represented the seller, not the buyer, in the real estate transaction. Even the real estate agent that drove you from home to home was not working on your behalf. By law, the agent was required to work on the seller’s side- to get the highest price and best terms for the seller.
Today, many real estate agents and companies are offering to represent the buyer in the real estate transaction. From the initial selection of properties, all the way through contract negotiation and settlement, you can now have an agent specifically committed by law and code of ethics to your best interests when buying a home.
So you ask... "Bill, what does this mean to me?" Well, I'll tell you.
If you call the real estate agent whose name is on the sign of that adorable home you just passed or that open house you just stopped by, you may not be doing the best thing for you.
The agent that listed that property is bound by law to represent the SELLER, not you. If you casually say to that agent that you could pay more but want to put in a lower offer to see if the seller goes for it, guess what? The listing agent is bound BY LAW to tell the seller that! Good luck getting that offer accepted!
So the remedy? Clearly find and hire a buyer's agent with the right qualifications and experience to represent you!
Saturday, August 25, 2007
Tuesday, August 7, 2007
Brokers Accused Of Fraud in LA
There's been an awful lot of talk about inflating sales prices with money back at closing... to have the buyer get into a home for next to nothing... a practice that was never advisable and was always AT LEAST on the edge legally...
And then there's the "respectable" broker here who wanted to handle a failed septic outside of closing with the specific instruction to NOT notify the lender of the failed septic so as not to "alarm" them... Let me give you a clue.. THAT didn't happen!
Ethics, folks...
Here's an example of the practice gone wild... Fraud on steroids...
http://www.latimes.com/business/la-fi-agents3aug03,1,3534312.story?ctrack=1&cset=true
REAL ESTATE
Brokers to Westside elite accused of fraud
2 Beverly Hills agents and appraisers are indicted in a scam that allegedly inflated home prices and loan amounts. By Annette Haddad and Diane Wedner, Los Angeles Times Staff WritersAugust 3, 2007
Two high-profile Beverly Hills real estate agents and two licensed appraisers were indicted Thursday on charges of joining in a sophisticated scheme that lenders said cost them more than $40 million in fraudulent loans for homes in some of Southern California's most expensive neighborhoods.
Joseph Babajian and Kyle Grasso, agents with Prudential California Realty, along with appraisers Lila Rizk of Trabuco Canyon and Scott Robinson of Dana Point, were each indicted on multiple counts of conspiracy, bank fraud and loan fraud. They face several years in prison if convicted, said Assistant . U.S. Atty. Jeremy Matz. Babajian and Grasso are also charged with money laundering.
Babajian and Grasso are considered part of the Westside realty royalty because they routinely close millions of dollars in sales annually and tout some of the biggest names in Hollywood as their clients. Their deals often appear in The Times' Hot Property column.
Babajian claims on his website to have sold $182 million in real estate in 2006 alone. More recently, he and Grasso were the listing agents on a $22-million Beverly Hills estate purchased by soccer star David Beckham this spring.
The indictments stem from a federal investigation that has led to guilty pleas from four other people on similar charges, including Mark Alan Abrams, a real estate financier with a history of fraud judgments against him. Abrams made headlines two years ago, when he was fined $270,000 by the Los Angeles Ethics Commission for laundering political donations to James K. Hahn's mayoral campaign. The four are awaiting sentencing.
Matz said the scheme highlighted how fraud was perpetrated on the high end of the once-booming housing market. That contrasts with recent publicity about "liar loans" obtained by sub-prime borrowers with weak credit status and no money for a down payment.
"This case targeted the opposite end of the market: high-end homes on the Westside involving loan products geared toward wealthy individuals with good credit," he said.
None of the latest defendants was taken into custody, Matz said, but they have denied wrongdoing.
"Joe and Kyle are innocent of these charges," said Palo Alto-based attorney Mark Flanagan, who is representing Babajian. "They have always conducted their business lawfully. They look forward to vindicating themselves in court."
Los Angeles attorney Jan Handzlik, who is representing Rizk, said his client denied the charges.
"She looks forward to her day in court and expects to be found not guilty," Handzlik said.
Efforts to reach Robinson or his attorney were unsuccessful.
The only defendant with a trial date so far is real estate developer and former fugitive Charles Elliott Fitzgerald of Newbury Park. His trial is scheduled to begin Nov. 13 in U.S. District Court in Los Angeles. Fitzgerald had fled the United States in 2003 after he was sued by one of the mortgage lenders, but he was captured in Samoa in December.
From 2000 to 2003, Fitzgerald, Abrams and the others allegedly doctored paperwork, including preparing bogus real estate purchase contracts and appraisals, to trick banks into funding mortgage loans that were hundreds of thousands of dollars higher than the homes actually cost, according to court documents.
The defendants played different roles, with some allegedly acting as "straw" buyers and others allegedly using their professional licenses to obtain title insurance and other documents necessary for property transactions.
They sometimes allegedly "flipped" properties: buying at one price and reselling to a straw buyer at a significantly higher price. In the process, they inflated comparable sales data for neighborhoods in Beverly Hills, Holmby Hills and Malibu, prosecutors said. That helped them continue the alleged scheme because they used the "false" data to persuade banks to fund subsequent purchases, court documents show.
One transaction detailed in the indictment was the 2000 purchase of a Beverly Hills home by Fitzgerald and Abrams for $2 million, which they told the bank was purchased for $4.395 million after receiving allegedly inflated appraisals from Rizk and Robinson, prosecutors said.
Babajian and Grasso had the listing on the home and allegedly manipulated the Multiple Listing Service database to falsely report to the sales agent community that it was listed and sold at $4.495 million.
A phony loan application was allegedly devised in the name of a straw borrower and sent to Lehman Bros. Bank. It unwittingly funded a loan of more than $2.8 million -- about $800,000 more than the true $2-million purchase price, prosecutors said, and the defendants split the proceeds from the fraud.
Thursday's indictment alleges that Babajian and Grasso profited by collecting hundreds of thousands of dollars in commissions and concealed payments. Rizk and Robinson allegedly profited by collecting fees from inflated appraisals.
Some Westside agents have said that during the recent housing boom they were often approached by prospective buyers who sought to exploit rising real estate prices by getting sellers and their agents to agree to inflated home prices.
Some of the schemes involved listing hundreds of thousands of dollars in nonrecurring closing costs as part of the loan amount.
If Babajian and Grasso are convicted, they also could be subject to disciplinary action by the California Department of Real Estate, including the revocation of their real estate licenses, according to state law.
The real estate department usually opens an investigation after it receives a complaint, gets information from media coverage or receives a referral from law-enforcement agencies, a department spokesman said.
Wednesday, July 25, 2007
A Tale Of Two Towns
It was the best of times, it was the worst of times. Oh wait- that's another story altogether... Perhaps in this case time will reveal a spin on that Dickens line to read "It was the best of plans, it was the worst of plans".
In this corner, Salisbury Beach. In the other corner, Hampton Beach. It wouldn't be inaccurate to observe that these two beach enclaves compete for the attention of vacationers and the attendant seasonal business.
This past month, a very large development company announced their plans for the Salisbury Beach area not too far down the seacoast from Hampton Beach, coincidently in the middle of major revitalization of their own. It is especially interesting to contrast the different approaches to beach redevelopment.
Several years ago, various condominium plans came through for Salisbury Beach, backed and developed by various well known names. Observers were alternately overjoyed and horrified that the flavor of Salisbury Beach would be forever changed. With the new development of Hampton Beach in motion, the same reaction is taking place among observers and property owners, as many of the new projects are condominium in nature, including condominium hotels, or contels as they're known.
Well... along comes a major developer to the Salisbury Beach scene... and seeing the vast array of unsold condominiums and other property not being developed at all, causing a stark contrast between modern design and classic New England waterfront- or between shanty and palace if you will- and their proposal is nothing short of earth shattering in scope- most comments so far include the term visionary.
According to the Daily News of Newburyport, "Exciting," "fantastic" and "wonderful" were words used repeatedly by business leaders, property owners and town officials responding to news the developer of Boston's Quincy Market wants to create a grand and unified vision at Salisbury Beach.
The Thompson Design Group - the designers of landmarks like Quincy Market, Ghirardelli Square in San Francisco and Navy Pier in Chicago - is in the process of negotiating partnerships of varying natures with 73 property owners in the Salisbury Beach Overlay District.
Although still in the formative stage, the goal of the negotiations and consensus-building is to redevelop the heart of the beach as a whole with a unified vision that would recapture the center's former vibrancy.
Interesting... one developer putting their money up to create a unified vision for the Salisbury Beach waterfront instead of what has heretofore been a series of various projects with no connection or relationship with each other... interesting.
Norman Beaulieu and Buzz Constable of RE Commerce, the development arm of the Thompson Design Group, have said to make the space thrive it's important to redevelop it with commercial businesses in combination with residential units and great public spaces.
Planning Board member Don Egan - who worked on the rezoning of the beach that included the Overlay District - also owns a home on Atlantic Avenue. Although it is not within the Overlay District, he sees creating one comprehensive vision for the beach center's core as one that could add value to all property in Salisbury's beach enclave.
Developing the beach one lot at a time can become problematic and create properties that don't interact well with one another, Egan said, which gives the beach a disjointed appearance no matter how good each building looks on its own.
Tim Mulcahy, one of the major beach center landowners and activists, was the first one contacted by RE Commerce. By redeveloping a large expanse, he said, many important but often forgotten issues can be addressed cohesively. A comprehensive, single plan could handle burying all the utilities and ridding the area of unsightly poles and wires.
Much needed infrastructure upgrades - like larger gas, water and sewer lines - could be brought in one swoop. Parking could be dealt with one a large scale, instead of having parking lots dotting the street scapes. Public spaces where families and others can congregate will not be overlooked in a comprehensive plan, he said.
The Thompson Group was not the only entity receiving Mulcahy's praise. That an organization with such stature wants to work at the beach is a feather in the cap of what Salisbury has become over the past five years.
WOW! Do any of these concerns sound familiar to the boards and property owners at Hampton Beach?
Time will tell how each of these bustling beach communities deal with their redevelopment challenges. I can assure you my eyes are firmly on both towns efforts!
In this corner, Salisbury Beach. In the other corner, Hampton Beach. It wouldn't be inaccurate to observe that these two beach enclaves compete for the attention of vacationers and the attendant seasonal business.
This past month, a very large development company announced their plans for the Salisbury Beach area not too far down the seacoast from Hampton Beach, coincidently in the middle of major revitalization of their own. It is especially interesting to contrast the different approaches to beach redevelopment.
Several years ago, various condominium plans came through for Salisbury Beach, backed and developed by various well known names. Observers were alternately overjoyed and horrified that the flavor of Salisbury Beach would be forever changed. With the new development of Hampton Beach in motion, the same reaction is taking place among observers and property owners, as many of the new projects are condominium in nature, including condominium hotels, or contels as they're known.
Well... along comes a major developer to the Salisbury Beach scene... and seeing the vast array of unsold condominiums and other property not being developed at all, causing a stark contrast between modern design and classic New England waterfront- or between shanty and palace if you will- and their proposal is nothing short of earth shattering in scope- most comments so far include the term visionary.
According to the Daily News of Newburyport, "Exciting," "fantastic" and "wonderful" were words used repeatedly by business leaders, property owners and town officials responding to news the developer of Boston's Quincy Market wants to create a grand and unified vision at Salisbury Beach.
The Thompson Design Group - the designers of landmarks like Quincy Market, Ghirardelli Square in San Francisco and Navy Pier in Chicago - is in the process of negotiating partnerships of varying natures with 73 property owners in the Salisbury Beach Overlay District.
Although still in the formative stage, the goal of the negotiations and consensus-building is to redevelop the heart of the beach as a whole with a unified vision that would recapture the center's former vibrancy.
Interesting... one developer putting their money up to create a unified vision for the Salisbury Beach waterfront instead of what has heretofore been a series of various projects with no connection or relationship with each other... interesting.
Norman Beaulieu and Buzz Constable of RE Commerce, the development arm of the Thompson Design Group, have said to make the space thrive it's important to redevelop it with commercial businesses in combination with residential units and great public spaces.
Planning Board member Don Egan - who worked on the rezoning of the beach that included the Overlay District - also owns a home on Atlantic Avenue. Although it is not within the Overlay District, he sees creating one comprehensive vision for the beach center's core as one that could add value to all property in Salisbury's beach enclave.
Developing the beach one lot at a time can become problematic and create properties that don't interact well with one another, Egan said, which gives the beach a disjointed appearance no matter how good each building looks on its own.
Tim Mulcahy, one of the major beach center landowners and activists, was the first one contacted by RE Commerce. By redeveloping a large expanse, he said, many important but often forgotten issues can be addressed cohesively. A comprehensive, single plan could handle burying all the utilities and ridding the area of unsightly poles and wires.
Much needed infrastructure upgrades - like larger gas, water and sewer lines - could be brought in one swoop. Parking could be dealt with one a large scale, instead of having parking lots dotting the street scapes. Public spaces where families and others can congregate will not be overlooked in a comprehensive plan, he said.
The Thompson Group was not the only entity receiving Mulcahy's praise. That an organization with such stature wants to work at the beach is a feather in the cap of what Salisbury has become over the past five years.
WOW! Do any of these concerns sound familiar to the boards and property owners at Hampton Beach?
Time will tell how each of these bustling beach communities deal with their redevelopment challenges. I can assure you my eyes are firmly on both towns efforts!
Monday, June 25, 2007
What is a Short Sale?
This week's topic is a very sobering one: short sales.
For a variety of reasons, it is possible that the total debt on your home may be more than what the home is worth. Most of the time, this isn't a problem because time is the solution. Depending on how much you owe, just wait it out and the value of your home goes up.
Problem solved, but that could take years.
That solution does not work for everyone though, because some folks are stuck in a situation where they absolutely have to sell their house. This can happen for many reasons, some good and some not so good: relocation, financial hardship, divorce, death, illness, or anything at all.
The result is that you may have to move, but you can't sell your house and make enough on the sale to pay the closing costs.
So what do you do?
One option is to do nothing and not make your mortgage payment. That's a worst-case scenario because it impacts your credit rating more severely than anything else possibly can.
Another option is something called a "short sale." This is when you fess up to the lender, let them know about your hardship and ask if they would please accept less money than you owe.
Of course, the lender doesn't want to do that, but they also don't want to pay all the costs of foreclosing on a home, repairing any defects, placing it on the market, and getting the best price they can in what may be a market already overstressed with excess inventory.
Lenders absolutely hate to foreclose, so they may be willing to consider a short sale. Not always. A short sale involves a lot of paperwork, time and effort and it is best if you have a real estate agent or someone knowledgeable to help guide you through the process and give moral support. A lot of stress is involved.
The first step is to contact the Loan Service Department of your lender. That number will be in the documentation you receive about making your payment. Use the phone and the mail. Keep copies. The lender will ask you to submit a financial statement. They want to know that you really don't have the financial assets to repay the loan after you sell the home. That's just the beginning, assuming they give a tentative agreement.
Your real estate agent still has to put the home on the market, find a buyer, and get a bona fide offer. Once that has been accomplished, you submit all contracts and paperwork to your lender for a decision. This takes a while because there are several decision makers involved.
Your lender isn't usually your lender. They just service the loan for your actual lender, called the investor. Your paperwork is submitted to the investor for a decision.
Assuming you have mortgage insurance on the loan, they are
another decision maker in the process. Mortgage insurance covers lenders in the case of loan defaults. That way they can justify making high LTV (loan-to-value) loans.
If the investor and the insurer both agree, your short sale is approved, and you can sell you home.
A short sale is basically a "forgiveness of debt." That counts as income and you have to declare it to the IRS.
This is obviously a very complex situation. Talk to your Realtor, be forthcoming about your state of affairs, connect with your lender, and work together to make this work for you.
For a variety of reasons, it is possible that the total debt on your home may be more than what the home is worth. Most of the time, this isn't a problem because time is the solution. Depending on how much you owe, just wait it out and the value of your home goes up.
Problem solved, but that could take years.
That solution does not work for everyone though, because some folks are stuck in a situation where they absolutely have to sell their house. This can happen for many reasons, some good and some not so good: relocation, financial hardship, divorce, death, illness, or anything at all.
The result is that you may have to move, but you can't sell your house and make enough on the sale to pay the closing costs.
So what do you do?
One option is to do nothing and not make your mortgage payment. That's a worst-case scenario because it impacts your credit rating more severely than anything else possibly can.
Another option is something called a "short sale." This is when you fess up to the lender, let them know about your hardship and ask if they would please accept less money than you owe.
Of course, the lender doesn't want to do that, but they also don't want to pay all the costs of foreclosing on a home, repairing any defects, placing it on the market, and getting the best price they can in what may be a market already overstressed with excess inventory.
Lenders absolutely hate to foreclose, so they may be willing to consider a short sale. Not always. A short sale involves a lot of paperwork, time and effort and it is best if you have a real estate agent or someone knowledgeable to help guide you through the process and give moral support. A lot of stress is involved.
The first step is to contact the Loan Service Department of your lender. That number will be in the documentation you receive about making your payment. Use the phone and the mail. Keep copies. The lender will ask you to submit a financial statement. They want to know that you really don't have the financial assets to repay the loan after you sell the home. That's just the beginning, assuming they give a tentative agreement.
Your real estate agent still has to put the home on the market, find a buyer, and get a bona fide offer. Once that has been accomplished, you submit all contracts and paperwork to your lender for a decision. This takes a while because there are several decision makers involved.
Your lender isn't usually your lender. They just service the loan for your actual lender, called the investor. Your paperwork is submitted to the investor for a decision.
Assuming you have mortgage insurance on the loan, they are
another decision maker in the process. Mortgage insurance covers lenders in the case of loan defaults. That way they can justify making high LTV (loan-to-value) loans.
If the investor and the insurer both agree, your short sale is approved, and you can sell you home.
A short sale is basically a "forgiveness of debt." That counts as income and you have to declare it to the IRS.
This is obviously a very complex situation. Talk to your Realtor, be forthcoming about your state of affairs, connect with your lender, and work together to make this work for you.
Friday, June 15, 2007
The Usual Suspects
I'm not going to talk about Real Estate in this week's article. No talk of homes, commercial properties or land. Instead, this week's topics will be one of the best things about selling real estate: people! Nice people!
Today, I was having lunch with the publisher of this paper, and a group of friends I like to call "The Usual Suspects, (although UNusual might be more accurate!). This group of sage friends afford me insights to the area that I couldn't possibly get from any other source. They live the seacoast. They are the seacoast. I'm a fortunate soul to be able to be in their circle. I was introduced to this bunch as a result of being active in the local real estate business.
Often, during our conversations, we compare notes on various things in our lives: good restaurants, various service providers, exceptional businesses and business owners, and so on.
It occurred to me after today's "summit meeting" that one of the things I enjoy the most about my business is getting the opportunity to introduce people to the seacoast, my seacoast. You see, when people are moving to the area they don't have a clue where to go for a great breakfast, pizza, massage, cocktails, fine dining... nothing! Without good recommendations, getting to know the area would be a long, tedious, trial-and-error process. So I'm pleased to give my clients referrals to my favorite things in the coast.
Let me share some with you...
When I think of the seacoast, I think of food, great food, casual food, seafood. The seacoast has no shortage of great places to dine.
My preferred spot for fine dining is right in Hampton. Bonta is a welcoming restaurant where the owner has instilled a culture of excellence in his entire staff. The menu is varied and everything is superb. The clientele is as friendly as the staff. Great food, great service, great clientele. How can you go wrong?
When I want a great casual lunch and I'm in the mood for chowder, I head up the coast to Petey's in Rye. Never a disappointment. Great fried seafood, and always a fun crowd. The Old Salt is a Hampton landmark, and the food and staff are consistently solid. Have a hankerin' for Chinese food? The Ocean Wok is the place to go in Hampton. If sushi is more your style, head to Sakura in downtown Portsmouth.
Need a gym or personal trainer? I personally recommend Synergy in Exeter and Penny Matel, with whom I've worked out for seven years. The seacoast boasts some of the finest doctors and specialists in New England. I'm happy to share personal recommendations and those of my trusted clients and friends. If you need to get a kink worked out with a good massage, call Judy Harrington.
Nothing delights me more than having someone call and tell me how well they were treated at Bonta, how much they loved the Sunday reggae on the deck at Saunders on Rye Harbor, how much they enjoyed the curry at The Carriage House.
As a newcomer to the coast, you could panic when you need service on your new home. Who do you call for a plumbing problem? What if you need and electrician or need some painting done? My clients know they can call me for an answer. And believe me, I'm happy to help.
Who would call an attorney they found in a phone book, or a financial planner or accountant for that matter? Personal referrals are a much safer bet in all cases.
Along those lines, I run my business primarily on referrals from clients and friends- in fact over 90% of my business year to year comes as a result of personal referral. It's the only way to go- people naturally like to share information on folks they've worked with that have provided them with an excellent level of service.
Which brings me back to my friends "the usual suspects". When we get together, you can be sure that the conversation always comes around to great service, and sharing recommendations.
Welcome to my seacoast!
Today, I was having lunch with the publisher of this paper, and a group of friends I like to call "The Usual Suspects, (although UNusual might be more accurate!). This group of sage friends afford me insights to the area that I couldn't possibly get from any other source. They live the seacoast. They are the seacoast. I'm a fortunate soul to be able to be in their circle. I was introduced to this bunch as a result of being active in the local real estate business.
Often, during our conversations, we compare notes on various things in our lives: good restaurants, various service providers, exceptional businesses and business owners, and so on.
It occurred to me after today's "summit meeting" that one of the things I enjoy the most about my business is getting the opportunity to introduce people to the seacoast, my seacoast. You see, when people are moving to the area they don't have a clue where to go for a great breakfast, pizza, massage, cocktails, fine dining... nothing! Without good recommendations, getting to know the area would be a long, tedious, trial-and-error process. So I'm pleased to give my clients referrals to my favorite things in the coast.
Let me share some with you...
When I think of the seacoast, I think of food, great food, casual food, seafood. The seacoast has no shortage of great places to dine.
My preferred spot for fine dining is right in Hampton. Bonta is a welcoming restaurant where the owner has instilled a culture of excellence in his entire staff. The menu is varied and everything is superb. The clientele is as friendly as the staff. Great food, great service, great clientele. How can you go wrong?
When I want a great casual lunch and I'm in the mood for chowder, I head up the coast to Petey's in Rye. Never a disappointment. Great fried seafood, and always a fun crowd. The Old Salt is a Hampton landmark, and the food and staff are consistently solid. Have a hankerin' for Chinese food? The Ocean Wok is the place to go in Hampton. If sushi is more your style, head to Sakura in downtown Portsmouth.
Need a gym or personal trainer? I personally recommend Synergy in Exeter and Penny Matel, with whom I've worked out for seven years. The seacoast boasts some of the finest doctors and specialists in New England. I'm happy to share personal recommendations and those of my trusted clients and friends. If you need to get a kink worked out with a good massage, call Judy Harrington.
Nothing delights me more than having someone call and tell me how well they were treated at Bonta, how much they loved the Sunday reggae on the deck at Saunders on Rye Harbor, how much they enjoyed the curry at The Carriage House.
As a newcomer to the coast, you could panic when you need service on your new home. Who do you call for a plumbing problem? What if you need and electrician or need some painting done? My clients know they can call me for an answer. And believe me, I'm happy to help.
Who would call an attorney they found in a phone book, or a financial planner or accountant for that matter? Personal referrals are a much safer bet in all cases.
Along those lines, I run my business primarily on referrals from clients and friends- in fact over 90% of my business year to year comes as a result of personal referral. It's the only way to go- people naturally like to share information on folks they've worked with that have provided them with an excellent level of service.
Which brings me back to my friends "the usual suspects". When we get together, you can be sure that the conversation always comes around to great service, and sharing recommendations.
Welcome to my seacoast!
Friday, June 1, 2007
The Secret To Selling Your Home Fast
Ahh... another catchy headline to grab your attention.
If there were one secret, everyone would do it, and then it wouldn't be a secret!
Instead, in a market like this, there are many things you can do to enhance the visibility and desirability of your home. Remember, when there are many more homes for sale than are selling, (a buyer's market), you have to make your home stand out above the crowd.
I have some things that will help, but as our president says.. "It's hard work". Are you up to the challenge?
Pricing: I'll get that point out of the way right off the bat, because I know you're sick of me talking about it. Simple fact in this market: If you overprice with the intention of reducing the price if it doesn't sell or to give yourself negotiating room, be prepared to wait and have your home on the market a long time. You won't even get to the negotiating stage, buyers will ignore your listing.
Marketing: This is where the rubber hits the road. You want to get the most eyeballs seeing your lovely home. In the past, a sign, a newspaper ad and MLS listing got the job done, but times have changed big time! Statistics show that over 80% of home buyers begin their search on the internet, so having a strong visibility there is key to success. Multiple web site exposure increases the chances that someone will see your home. The local MLS on the web and Realtor.com are a good start, but hardly the be all and end all for exposure.
Web Strategy: Realtor.com boasts more "web hits" than any other real estate related web site, so it makes sense to start there. If your home is on the NH MLS, the listing will show up there, but unless your Realtor has an "enhanced" or "showcase" package, (costs more money), your listing shows up with a basic description and no photos. Statistics (there's that word again) show that the listings that get the most views have multiple photos and some sort of video tour. It certainly makes sense then to make sure your home is highlighted or "showcased" then...
Many other websites that you might not think of are great tools for getting the word out on your home, simply for their size and number of "hits". Google, Yahoo, craigslist, Trulia, and AOL are some of those. Also, exposure on the web sites associated with the country's biggest newspapers are a great source of prospective buyers (many are relocating from other areas of the country). The Boston Globe, Wall Street Journal, New York Times, and Chicago Sun-Times all have great real estate sections that generate interested buyers. If that's the case, your home should be featured there, no?
Great Photos: Be sure that the photos of your property that show up on line enhance the listing. Many sellers have multiple photos, but showing small bedrooms in small fuzzy photos hardly create a "buy me" emotion to the prospective buyer. Multiple high quality, wide angle, large format photos are the key here.
High Definition Video Tours: There was a time when "virtual tours" were all the rage, but there are better options now to show off your home than those spinning claustrophobic tours... After all, they distort the image, the walls bend, and have no perspective. Many Realtors are now using a photo slide show with descriptive text, usually with larger photos. Some use actual video movies of your home, the yard, and maybe the surrounding area and attractions. These movies, widescreen and high definition, really are the coup-de-grace in this area. The catch: they're not cheap if done right, so you don't see a lot of them in use, but they can create a buying emotion stronger than any other photo method.
Home Staging: Ahhh... something you may not be aware of. A relatively new service employed on certain listings to maximize the salability of a home by de-cluttering, rearranging, and perhaps using new pieces as "props" to show your home to it's maximum potential. There are several home stagers in the area that I use to consult or work with interested sellers who want to "pull out all the stops" in the marketing of your home. By all means, check out Staged First Impressions, and tell Sue I asked you to contact her. Here's a staging professional that really "gets it"!
Remember- your home is a product that together we're trying to sell in a slow, or buyer's market. There is no room for the old "list and hope" methods. We have to work hard together to reach your goals. Call your agent today and "kick it up a notch".
Statistics courtesy of New England Real Estate Network, National Association of Realtors, and demographer Peter Francese. Used with permission.
Sunday, May 20, 2007
Common Home Buying Mistakes
Last week I spoke about common mistakes made by sellers, so I'm going to stay in that mode this week and talk about common buying mistakes, and how to avoid them. It's a great time to be buying- there are a lot of properties from which to choose, prices have settled a bit, and interest rates are still very low. The seacoast is a wonderful place to live and vacation, so please pay heed and go into the process with eyes wide open. I've seen a variety of problems arise from not getting the home you wanted so badly to paying too much to not being able to close, so pay attention, and together we can make sure you have a successful, positive buying experience, whether you're looking to buy primary or vacation property. Even smart people make these critical mistakes!
Mistake #1: Letting Emotion or Asking Price Dictate Your Offer Many buyers fall in love with a home and overpay, and conversely some are so focused on getting a "deal" that they lose focus on what should be the driving criteria for making an offer: market value. Buyers should have a very good idea of what comparable properties have recently sold for, and start their offer process using solid data.
Mistake #2: Making Major Purchases or Changing Jobs When you determine you're in the market for buying property, get frugal! Every major purchase you make will affect your credit score, and this can affect your buying power, your ability to get a loan at all, and it can mean the difference in the interest rate you get, costing thousands of dollars over the life of your mortgage. I've seen people so pleased to be under agreement on a new home that they go out and buy new furniture and a snazzy pickup truck only to find out at the last minute that their actions caused the home purchase to fall through! If you're thinking of changing jobs, make sure it's a salaried position in the same industry you're currently in- if it's a commission based job, in a different field, or if you're thinking of being self employed- DON'T DO IT NOW!
Mistake #3: Not Getting A Professional Inspection Even if the home looks perfect, there are things lurking beneath that could affect the livability and resale of your new home- and it could cost you dearly in the long run. Be sure to have an ASHI certified Home Inspector perform a thorough inspection to protect your interests.
Mistake #4: Not understanding Your Financing Fees, points, early payoff penalties are all things that can give you unwelcome surprises at the closing table. Make sure your lender prepares a good faith estimate and clearly explain any fees or penalties.
Mistake #5: Overbuying There is nothing worse than the feeling that you are a slave to your mortgage payment, or worse yet can't meet your financial obligations due to spending every dime the mortgage company would loan you on a new home. Be sure to prepare a complete budget including allocations for unexpected expenses, home repairs and savings. Stay away from the lure of adjustable rates, 100% financing or interest only mortgages unless you fully understand the ramifications.
Mistake #6: Not Considering Resale The house seems perfect for you and your family, but statistically you won't own it longer then 5 years, so be sure to consider function and location before you buy. If it has too many "unique" features that you fell in love with, it could severely limit the market you'll be selling to in the future. They say there's a buyer for every home, but try to put yourself in the shoes of the seller before you make a costly mistake- you don't want to be searching for the one buyer that shares your love of the pirate-themed living room, you want a wide range of buyers fighting over your home! As I heard long ago- begin with the end in mind.
Mistake #7: Not Using A Realtor This item may seem more than just a bit self serving, but a good, experienced Realtor will help guide you through the pitfalls and make sure you have all the information to make your home buying experience as stress free and financially beneficial as possible. You don't go to court without a lawyer, don't buy a home without the assistance of a professional. Now get out there and enjoy the holiday week! Wouldn't it be great to live here? You'd feel like you're on vacation all the time!
It's a wonderful lifestyle at the seacoast...
Mistake #1: Letting Emotion or Asking Price Dictate Your Offer Many buyers fall in love with a home and overpay, and conversely some are so focused on getting a "deal" that they lose focus on what should be the driving criteria for making an offer: market value. Buyers should have a very good idea of what comparable properties have recently sold for, and start their offer process using solid data.
Mistake #2: Making Major Purchases or Changing Jobs When you determine you're in the market for buying property, get frugal! Every major purchase you make will affect your credit score, and this can affect your buying power, your ability to get a loan at all, and it can mean the difference in the interest rate you get, costing thousands of dollars over the life of your mortgage. I've seen people so pleased to be under agreement on a new home that they go out and buy new furniture and a snazzy pickup truck only to find out at the last minute that their actions caused the home purchase to fall through! If you're thinking of changing jobs, make sure it's a salaried position in the same industry you're currently in- if it's a commission based job, in a different field, or if you're thinking of being self employed- DON'T DO IT NOW!
Mistake #3: Not Getting A Professional Inspection Even if the home looks perfect, there are things lurking beneath that could affect the livability and resale of your new home- and it could cost you dearly in the long run. Be sure to have an ASHI certified Home Inspector perform a thorough inspection to protect your interests.
Mistake #4: Not understanding Your Financing Fees, points, early payoff penalties are all things that can give you unwelcome surprises at the closing table. Make sure your lender prepares a good faith estimate and clearly explain any fees or penalties.
Mistake #5: Overbuying There is nothing worse than the feeling that you are a slave to your mortgage payment, or worse yet can't meet your financial obligations due to spending every dime the mortgage company would loan you on a new home. Be sure to prepare a complete budget including allocations for unexpected expenses, home repairs and savings. Stay away from the lure of adjustable rates, 100% financing or interest only mortgages unless you fully understand the ramifications.
Mistake #6: Not Considering Resale The house seems perfect for you and your family, but statistically you won't own it longer then 5 years, so be sure to consider function and location before you buy. If it has too many "unique" features that you fell in love with, it could severely limit the market you'll be selling to in the future. They say there's a buyer for every home, but try to put yourself in the shoes of the seller before you make a costly mistake- you don't want to be searching for the one buyer that shares your love of the pirate-themed living room, you want a wide range of buyers fighting over your home! As I heard long ago- begin with the end in mind.
Mistake #7: Not Using A Realtor This item may seem more than just a bit self serving, but a good, experienced Realtor will help guide you through the pitfalls and make sure you have all the information to make your home buying experience as stress free and financially beneficial as possible. You don't go to court without a lawyer, don't buy a home without the assistance of a professional. Now get out there and enjoy the holiday week! Wouldn't it be great to live here? You'd feel like you're on vacation all the time!
It's a wonderful lifestyle at the seacoast...
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