Why you want an agent - Direction, Protection and Attention

In the days of the computer world and internet accessibility to a multitude of information many home buyers and sellers are asking the question lately - "do I really need an agent"?

Need? No.

Want? Yes. 

The availability of pertinent information on-line has made the home buying experience a bit easier then it was just a decade ago - however, this does NOT in any way correlate to the demise of the Real Estate agent.  While sites like Realtor.com, Zillow and the like do provide some "good" information they do not provide what is necessary to successfully close a transaction on your own.  Finding a home and verifying value is of course a part of the home search and selling process, albeit a very small one.  This due diligence process is simply a small piece of the pie.


Why work with an agent?  Quite simply for three crucial factors - Direction, Protection and Attention.

 

Direction

I've often stated that "selling the home is the easy part" and what I mean by that is plain and simple - It IS easy to sell a home or find a home to buy.  Obtaining a seller or buyer with your specific needs may be daunting and may take some time, but generally anyone can do it in the technology age.  The days of print advertising, MLS "book" (listings were once listed in actual broker books before the internet), and a Rolodex full of buyers is no longer necessary to get your home under contract.  There are plenty of sites offering help in doing so - so why do you need an agent?  Direction. 

An agent can and will direct you through the maze of a successful closing.  It takes full time knowledge and experience to know what pitfalls to look out for.  A "virgin" homebuyer simply doesn't know these procedures and can and will often put themselves in a sticky situation with either the lender, mortgage holder, title company, inspection agent, escrow account holder, appraisal work, contract deadlines, etc.  Not knowing the correct "direction" to move in a transaction can quickly put you back to square one - often scratching your head wondering what you did wrong.  

Think of an agent as your guide - your Sherpa in the Real Estate journey.  Would you climb Everest for the first time without a guide?  Then why would you put such a large transaction in your own hands?

Protection 

An agent also serves as true protection in your Real Estate transaction.  Even if you know the way, if not properly trained to watch out for red flags throughout the sales and/or purchase process a buyer or seller can easily slip down a slippery slope.

The list goes on and on, I've dealt with horror stories throughout my career and luckily with time, knowledge and patience I have been able to get through them all - protecting my clients the whole way.  Without my knowledge in these situations these people would be out not only a home they had their eye on but in a few instances they would have been out tens of thousands of dollars.  

Did your buyer neglect to place the correct amount of funds in escrow?  

What retribution do you have?

Did the seller take items out of the house that you had originally stated in contract?

What do you do now?

Did the appraisal come back lower then contract price?

Is anyone at fault?

 

Will the buyers not release escrow out of backing out of a deal after 3 weeks?

Are you due that money? 

Did the inspection report come back showing matters unknown to seller?

Who has to repair? 

Will the HOA not approve your sale just days before closing?
Now what?

Protection in these transactions is crucial - we are talking LARGE purchases here people!! 

Don't go it alone. 

Attention

We all need attention in this fast paced world.  Cell phones, email, G4 speeds and the like have made our world move FAST.  An agents job is obviously to stay on top of the entire transaction from contract to close.  This has become tougher and tougher for sellers and/or buyers to maintain on their own.  With most buyers/sellers having full time jobs themselves keeping up with the transaction is simply impossible.  Without having a "wing-man" giving you the attention you need and deserve you can and will put yourself in a situation that may at that point become unsolvable. 

I can't speak for all agents, but my main goal when working with any buyers or sellers is to offer my complete and  undivided attention WHENEVER they need it.  True 24/7 availability and service, if you can't move quickly in this environment you don't stand a chance.  And if you have a full time job, you simply can't move quickly without an agent on your wing.  

Having a trusted professional looking out for your best interests and giving the attention you need and deserve is priceless  - well that's not true..... it's 3% 

Rick Rapp

"Real Estate Done Right"

Is the rebound in sight?

This past month has felt like a complete turn around compared to market conditions in early 2010.  Buyers are active, inventory levels are dropping and some sellers are becoming more realistic and understanding of current fair market value.


It took some time, and will of course take some more - but I feel we are close.  I have actually starting seeing some appreciation in certain communities here in South Florida.  I NEVER thought I would use that word again!!  "Appreciation" - it has a nice ring to it, doesn't it? 


So what factors are playing into this rebound?

Short Sales and the understanding of them 

In my opinion, the full understanding of short sales by a larger percentage of agents and buyers has had a significant increase.  What was, just a short time ago, an often misunderstood process is now almost decipherable to most people.  Buyers realize that sometimes it's just not worth the wait and that the fact of the matter is that you may NEVER close on a short sale home.  This has had a direct effect on home buyers simply skipping over non approved short sales in favor of standard, or approved short sales that can actually close within their lock time frame.  Agents in general have also become better versed in the short sale process and most can navigate the process with ease at this point.  What this has done has moved what was once a "waiting on short sale" buyer to other homes - thus increasing sales levels and lowering inventory levels.

Seller Acceptance

For quite some time now many sellers have not been able to accept that the bubble actually burst.  Still focused on drastically overvalued sales in their communities they still feel their home is worth 30-40% more then it actually is.  While this belief is still held strongly in some sellers it is starting to dissipate for many others.  This acceptance has and will help the market tremendously.  By acknowledging that things simply are no longer what they were and coming to terms with what true Fair Market Value is sellers who want to sell will sell, and those who are or were testing the market - won't.  By removing these market "testers" we drop inventory levels even further.  This in turn allows buyers to focus only on inventory that is actually obtainable.  Because the buyer is no longer wasting time trying to purchase homes from unreal sellers, this speeds up the buyers process - in turn helping the market to rebound. 

Days on Market

With seller acceptance factoring into the rebound we can only assume that this also plays a large part in the decline of days on market for properly priced homes.  Its not so much the fact of homes selling quicker, but the direct effect that has on buyer perception and in turn reaction time.  There is simply nothing more motivating than losing a home that you had your heart set on only because you thought you could take your time - "it's not going anywhere in this market" - famous....last.....words.  Once a buyer loses a home to another the reaction time gets cut in half, when they find a home they like again - they ACT.  Again - this plays a critical part in any market rebound. 

100% Financing 

Ok Ok - the days of 100% financing are gone....aren't they?  Actually no, they're not.  FHA financing is in essence the same thing as that dirty phrase "One Hundred Percent Financing" oh man, I can almost picture the devil himself curling his index finger invitingly me to sign here for my dream house for NO MONEY DOWN....   Whoa - (slap in face) got a bit off track -  

FHA financing does allow a buyer to buy a home with only 3% down AND they allow for a 6% credit from the seller at close. SO...if you put down 3% and get back 6% - how much did you actually put down?  And in essence that would be what? Yes, 100% financing.  

This is NOT a bad thing though people!!  FHA financing is saving the market one closing at a time!!  While interest rates may be extremely low at this time, loans are harder then ever to obtain.  You need stellar credit, at least 20% down and STRONG income verification.  Due to the economic times we are in (depression) not many Americans can qualify for these conventional loans - but you know what they can qualify for?  DING DING DING!!  That's right....an FHA loan!!  So now we have buyers that can actually buy - all due to our wonderful country, let's keep that in mind sellers when we see these FHA buyers - ok? 

This market WILL turn around - we all know that, the question is when.  The good news in my eyes is that it seems it will be sooner then later, what I once estimated to be 5-7 years I now estimate at 3 to 5.  Hang in their homeowners!!

Rick Rapp

"Real Estate Done Right"

www.RickRapp.com

Making your home a "Top 10" home

     Since creating my South Florida Top Ten Real Estate Deal's list (http://www.RicksTopTen.com) I've been asked on numerous occasions how a home seller can make their home a Top 10 home.  While the simple answer is price competitively for your market, there is a bit more to it.  Here are 5 factors that you can implement in your home selling strategy to maximize your profit.

1.  Is the Price Right Bob? 

     Many home sellers in today's market have yet to come to terms with where the market is as a whole.  No matter the amount of media attention the bursting of the bubble received, too many sellers just don't get the point..

     Listen, facts are facts and it is what it is.  The bubble BURST......and hard!! Inflated prices do nothing in this market but waste time and build frustration for sellers.  What your home was worth a few years back has absolutely no effect on current pricing.  As a seller you need to factor in what your immediate competition is and take a long hard look at what homes are CLOSING for in this market.....not ASKING PRICE - SALES PRICE!!!

     A great way to do your own due diligence is to simply log onto Realtor.com and take a peak at your local immediate competition.  What are sellers of homes in your area with similar features and square footage asking?  Put yourself in the buyers shoes and imagine that you are looking to purchase yourself.
   
     After reviewing what local competition is, price competitively to offer buyers the most BANG for their BUCK!!  Buyers in today's market DEMAND value and know that they are in the drivers seat....not you.

     If you want to take your "research" even further, ask your agent to take you on a home tour of your competition.   (This is also a great way to see how dedicated they are to selling your home)  Preview in person as though you were a buyer and ask yourself..... "if I can buy this home for this much, how much would I pay for mine?"

     We all think our homes are worth more and offer more... They're OUR homes, of course we think they're great!!  We need to take ourselves out of our own shoes however when selling in a buyers market and become a buyer instead of a seller............. be the ball Noonan..

2.  Cleanliness is next to godliness

     With the amount of competition sellers face in today's market making your home "Show Ready" is no longer important.....it is IMPERITIVE!!

     I can't tell you the amount of homes I've shown that I felt the need to dowse myself in Purell after leaving.  If you're home doesn't show in a good light do you really think you're going to get top dollar or strong showing traffic?  The buyers first impression is extremely important, you only have one chance you know...  But the agents impression is almost MORE crucial to your successful sale.  If an agent gets a bad impression of your home, what are the chances he or she will want to bring clients to your home again?  If you answered SLIM you win the prize....

     I know I know.....keeping you home in pristine shape for the duration of your listing isn't easy.  It can get stressful and feel like another full time job, I get it.  But it WILL pay off in spades!!  If you get an additional $10,000 because the home shows well that's not to bad is it?  Was it worth it to clean a bit more then usual, get paid for it AND enjoy the benefits of living in a clean and pristine home?

3.  Phew, what a view!! 

     Growing up my father used to enjoy walking down our driveway and looking up at our home which sat on a high hill in Rhode Island.  He'd have a beer or an Iced Tea, sometimes with my Mom in tow and would simply look at the house, enjoying the curb appeal it had and would exclaim "Phew what a view"!!

     Yea Rick, great story....what's your point?

      My point is that curb appeal is a MUST if you want to entice people to buy your home.  Never mind the actual view from the road when you pull up to the house, but keep in mind.....the INTERNET.

     The internet? What does that have to do with curb appeal?  Close to 90% of home buyers search for their home on-line, and what do they look at while searching?  Pictures of your home taken by your Realtor and published to the MLS.  If the pictures don't show strong curb appeal your home will not receive the amount of traffic necessary to sell in a timely and profitable manner in this environment.

     You see it all the time.  The neighbor who....out of nowhere, starts planting flowers, pressure cleaning his roof, painting his exterior, trimming trees, etc.

What do you generally ask him?

"Selling"?

And generally the answer is yes.

     Why people wait until they are ready to sell to maintain their property is beyond me, but again - it is what it is - and at least these sellers get it- BUYERS WANT VALUE!! A great way to show value is to have a manicured property which anyone (including yourself) will enjoy to walk up to.

     Maximize your curb appeal and you WILL maximize your sales price....promise.

4.  Who took that picture?

     Nothing makes me question an agents professionalism more then bad photos of a listed home.  If your agent shot your home in less then 30 minutes....the pictures aren't good enough!!

     Again, back to that wonderful network of computers called.....the INTERNET.  Buyers are previewing your home on line before they even think about going to see it in person.  If a single guy or girl joins a dating site what do they generally do?  Scour for hours for the best possible photo(s) they can find of themselves to place in their profile, why?  Because they are "selling" themselves on-line!!!  (don't take that the wrong way, no hate mail please)

     When some, but definitely not all, agents take and post pictures of their new listings they neglect to give the process the importance it deserves.  I've seen pictures of toilet bowels, cats (yes literally a picture of a cat, nothing about the house, just a cat), dirty dish filled sinks, etc.  I could post pictures but will save the embarrassment for those at fault.

    Make sure your agent takes your pictures with care - realize the importance they serve in the home selling process.  You don't have to expect your agent to be Ansel Adams, just be sure they give it their best shot.  And if something is in the picture that shouldn't be......just move it!! 

                   

5.  I want a Hamburger, no I want a Hot Dog.....

     

     Buyers know fully at this point that they are in control, we as sellers can either fight this new reality or cope with it and cooperate.  I like the old credo "If you can't beat 'em.... join 'em" and to sell in this market, you should like it to!

     Buyers are picky today, so much so that they can often confuse themselves with what their true wants and needs are in a home.  To combat this indecision sellers can and should offer prospective buyers of their home some sort of incentive.  Have a home priced perfectly for an FHA buyer?  Offer to pay closing costs.  Have a great home on the intracoastal?  Throw in a Jet-Ski.  Selling a home with older appliances?  Offer buyers a two year paid warranty....

     There are a ton of incentives you can offer, and the great thing is that it's totally up to you and only limited by your creativity!!  Listen to what buyers say when they preview your home, or ask your agent for feedback after they show your home.  Do buyers keep complaining about the worn out carpet in the bedroom?  Replace it!! Or offer a credit at closing to do so...  These small incentives will add up to a faster and more profitable sale in your near future.....promise ;) 

     Selling in today's market is a challenge, accept the challenge and move forward!!!!

For more info on selling in this market or anything Real Estate related please do not hesitate to contact me at rick@rickrapp.com 

Rick Rapp

"Real Estate Done Right"

http://www.RickRapp.com

Sellers, Buyers and FHA loans

100% Financing!!!

Stated Income!!!

No Income verification!!! 

No closing costs!!!

     It was only a few years back when mortgage brokers were not only advertising these types of loans, but were actually closing them as well....  What a wonderful time for all........right? 

If it seems to good to be true...

     ..it probably is.  These loans put ALL OF US at risk and as you all know we are paying the price now - ALL OF US!!  The bailout with tax dollars, the inability of banks to redirect those T.A.R.P funds back to us, the rampant foreclosures across the Nation, the unemployment rate, the tedious and frustrating short sales.... 

These loans hurt us all

....and guess what.... They are still around!!!  AND "sponsored" by the U.S.A!!
......sort of..

FHA Loans

    FHA loans are loans guaranteed and backed by the Federal Government.  As a means to allow first time home buyers access to financing, in general they are a good idea - good for the American citizens, good for the Real Estate market - good for America.  These loans keep the market moving, and can be very helpful to qualified first time buyers.  While they do not advertise, promote or process stated income - they DO allow no closing costs and 100% financing.  It's a non-complicated system to get the 100%.  You see, FHA will allow a buyer to finance 97% of the purchase price of the home.  HOWEVER, they will also allow the seller to contribute 3% to buyer for closing costs... so what's 3 + 97 ????  Mmm Hmmmm....

     Buyers do still have to come to the table with at least 3.5% percent of value - but the loan can be 100% in essence..

Should I accept an FHA loan offer?

     There really isn't much of a reason not to, as long as you are agreeable to your sales price you are going to net the same amount regardless of the loan your buyer obtains.  You will probably see a lower escrow amount with an FHA buyer, and that can pose some risk, but if your agent stays on top of the transaction and works closely with buyers lender......all should be copacetic.

Banks love FHA loans!!

     Because the gov. is guaranteeing the loan banks truly love FHA... they pose little to no risk of repayment, if buyer defaults - ring the White House and the checks in the mail (sort of). 

They are not going anywhere

     FHA loans are here to stay - so it's best to be informed of what they are and how they work.  For a seller they are nothing to be scared of, just pay close attention to the transaction. 

In this market we are seeing more FHA loans then usual as the banks have basically tighten and tied their purse strings - it's one of the last viable options to purchase a home.

For more info on FHA loans please feel free to contact me.

Rick Rapp

Real Estate Done Right

rick@rickrapp.com

Price your home according to market conditions........Please?

How many homeowners are currently overpriced compared to market??


TO MANY!!!

People, people, people...... we are living, selling and buying in a much different time then we grew accustom to just a few years ago. With short sales. foreclosures, distressed sales, etc. we have experienced a severe depreciation effect - YES - the bubble burst....

Is that really news to anyone?

Unless you spent the past 3 years on the I.S.S it really shouldn't be... Why then, are SO many homes priced out of the market? What is the thought process here? What is the strategy?

You are wasting your time!!!!

And more importantly, you are wasting the time of others - and in turn are now contributing to the Real Estate market we are all currently experiencing.

Would you pay $5.00 for a gallon of gas?

Of course not!! Am I crazy to even ask? Unfortunately if you are overpriced for the market, buyers will have the same gut reaction as you just had.... $450,000 for this home, when the one down the street JUST closed for $290,000??? What is this guy nuts? Why is he wasting my time, does he think I'm a jerk?

You are chasing the market!!

The longer you stay priced over and above fair market value the more you waste financially and emotionally. The added stress will take its toll on you - you will start pointing fingers - start believing that this market is truly "in the dumps" and may very possibly say "just take if off the market"

You are going to quit a race that you never entered!!!

Some of the list price's I see now a days really astounds me.... I don't know if its the doing of a bad agent that is simply "buying the listing" (this means to tell a seller you can far exceed market conditions, they then list with you in hopes of obtaining false hopes).

Or is it the homeowner that's just "sticking to his guns" - if that's the case, and you are NOT WILLING to accept current fair market value for your home.....

TAKE IT OFF THE MARKET!!!!

One of my favorite quotes came from an old friend of mine, now I'm sure he heard it elsewhere but it really condenses where I am coming from.....

"Market sets price, we do not"

This is true on so many levels, whether talking about homes, cars or broccoli - pricing is set by current demand for that product....not a tough concept to grasp.


If you really want to sell in this market - if you are serious about getting to a closing table......

PRICE ACCORDINGLY

If you are unsure if you are priced correctly - or if your agent has misinformed you on fair market value.....get in the car and drive!!!

Get on Realtor.com or look in the newspaper.....or contact me directly - find all comparable properties within a 5 mile radius (there should be plenty with the inventory levels we are experiencing) and PREVIEW THEM!!!

THESE HOMES ARE YOUR DIRECT COMPETITION!!!

Compare your pricing to these specific homes.....are they "nicer" then your home? Do they have additional upgrades? More square footage? An extra bedroom, a nicer view??? If so, re evaluate where you stand price wise - it is truly in YOUR best interest....

and if your agent doesn't know what they are doing??? Get rid of them!!! It's a privilege to sell your home, not a right...



For more information or help on correctly pricing your home in this environment please feel free to contact me directly.

rick@rickrapp.com

www.RickRapp.com

Real Estate Done Right!!