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