Does Your Agent Have A "Real Job"?

A great gauge of how strong the real estate market is the number of agents who are brand new to the industry that still have a “real job”. I use that term in jest, because let’s be honest, being a Realtor is very much a “real job” but to the untrained eye (read: newbie) it seems super cush and easy and can totally be worked around the schedule that provides a regular paycheck.

I have had nearly this exact conversation more times that I care to count:

Them: I was thinking about getting my real estate license.

Me: Really? That’s cool. I can’t believe you are leaving your job, you have been there so long.

Them: Oh, I’m not going to quit my job, I’m just going to do it on the side, you know, for family and friends for some extra cash. It sounds like fun, and it’s super easy, right?

Me: Uh, yeah. Super easy (insert eye roll here).

From the outside looking in as a buyer or seller it may not seem like that big of a deal to hire an agent that has a separate full time gig doing something else. It is however a very big deal. There are a litany of issues that come up during the time a home is for sale or a buyer is in escrow that need to be taken care of RIGHT NOW that cannot properly be handled if your agent cannot make or receive phone calls or personal emails between 8-5 Monday through Friday. 

Based on my experience with part-timers, here are some things to consider if you are considering hiring an agent that is moonlighting as a Realtor:

1. Do they have time to dedicate to showing you property on a schedule that fits your schedule?
2. If you list your house with them will they be available to show the property to potential buyers during normal business hours?
3. Will they answer their phone and/or promptly return emails when a buyer inquires about your home?
4. If you call or text them at 10am on a Tuesday can or will they answer their phone?
5. Lenders and title companies generally work “bankers hours”, so if your agent does too will they be able to communicate vital information with them regarding your transaction to get your deal closed on time?
6. Will they be available to attend inspections and open the house for appraisers, etc?
7. How much time are they dedicating to learning your market, understanding the comps and keeping up with market changes that may affect your bottom line?
8. What kind of relationship (if any) do they have with other industry professionals?
9. Is their lack of experience and knowledge going to leave you with unanswered concerns about the buying or selling process?
10. Is their lack of attention to the transaction going to put you at risk for losing the deal and therefore losing money?
11. Are they members of the local, state and National Association of Realtors?
12. Do they have an MLS lockbox key?

Obviously, if you are working with someone you don’t really know because you met them at an open house you may not even know they have a different job, and by the time you find out it may be too late. Hopefully though after reading this you will know to ask, and unless you are VERY comfortable with this person you will move on to a Realtor that can dedicate the time and effort to you that you need and deserve.

To learn a little more about Margeley and I and what we do for our clients, please visit the "about us" section of our website. We look forward to serving you!

Nose Blindness: Don't Let Your Stinky House Affect Your Wallet

OK, so I stole the phrase "nose blind" from a Febreze commercial. But when I saw it, it was like the heavens opened up and the angels started singing. Truer words have never been spoken. Ok, that last part may be a bit of an exaggeration- but seriously- just like the commercial says, your house probably stinks and you don't even know it. It's called being nose blind.

Basically, every house has a smell. You know that smell you smell when you go on vacation for a week then you come home? That's your smell. There is absolutely nothing wrong with having a smell though, until it's a gross smell.

If you have 5 cats and 1 littler box, this is
probably what your house smells like.

What is a gross smell, you ask? Litter boxes, animal urine, hamster/rodent /reptile cages, cigarettes, trash cans, dirty dishes, gym socks, last night's fish sticks... you get the idea.

I can hear what you're undoubtedly saying right now- but I clean up after my [insert random animal/reptile here]. And I, captain honesty, am here to tell you IT DOES NOT MATTER. It still has a smell.

So you had fish for dinner last night?

See, I've been doing this whole Realtor thing for a while now and I am telling you unequivocally buyers will RUN from your house if it reeks of any of the items I listed above. If it only kinda stinks, it will take about two or three rooms worth of walking around before they pinpoint it and then they will hastily finish the tour and quietly and politely say outside to me "it had a funny odor", as if I didn't smell it too.

Remember the "coming home from vacation" analogy? Well every time a stranger walks into your house, especially if it has been closed up while you're at work, they smell it as you do when you come home from a week away.

Now that you have let your panic and disgust subside, I'll clue you in on a few things you can do as a seller to make sure that you're not being nose blind when selling your house.

1. If you have dogs that live in the house, consider having your carpets shampooed prior to listing the home, and minimizing the dog's time in the home when it is active on the market. There are companies that use an enzyme to clean carpets without soaking them and it is great for odors and stains. If you have a pet with chronic bladder issues, you may think about replacing the carpet all together. Seem like a lot of trouble? Well, it could mean the difference between a sale or not.

2. If you have a litter box or caged rodents/reptiles, temporarily relocate them or put them in the garage. Figure something else out for your little friends. Other than pee soaked carpet, there really isn't much more that can turn a buyer away faster than a house that smells like a litter box or a hamster cage.

3. If you smoke inside your home, stop immediately. Aside from the health risks, you are literally permeating the walls of your home with smoke smell. Although this problem is not as common in recent years, it does happen occasionally. If you are a smoker and you are going to sell your house, you can take a few drastic measures if you are financially able. You can paint interior walls and clean or replace the carpets and (duh) stop smoking inside. If your furniture is permeated as well, you may consider moving into your new home after your current home is clean and being sold. If finances prevent these measures, you may just have to discount the price of the home to entice buyers to make the repairs themselves.

4. If you're incapable of keeping your home picked up on a day-to-day basis, consider limiting showings to days of the week when you can make sure it is clean, tidy and (mostly) smell free. I know you are busy, we all are. You make dinner, throw the dishes in the sink, then run off to baseball practice until 9pm. There they sit until someone gets around to washing them which may or may not happen the same day. Well when the stinky laundry is piled up, the trash is full, the sink is full of dirty dishes and someone comes to show your house while you're at work, well... you see where I'm going. You either need to be committed to making sure the house is show-worthy every time you leave the house or set showing time parameters where you know you can have the house ready.

As our market continues to be more "normal" and there is more inventory available to buyers, buyers are being more choosy about the homes they purchase, so sellers are needing to set themselves apart from their competition. Now that I have opened your eyes to this phenomenon and you have hopefully admitted to your own nose blindness, you won't make these mistakes when you sell your house- and most importantly, you will hire Realtors like US who aren't afraid to tell you.

Don't Be An Open House Fool

Weekend open houses have always been a tool utilized by agents to drive potential buyers into their listings and to meet new clients. Sellers are happy their home is being marketed, and the listing agent is getting exposure to buyers. It was a win-win.

Recently I have noticed a disturbing shift in the Modesto and surrounding areas though when it comes to buyers attending open houses. Attendees are standoffish, reluctant to share even the most basic of information with the host and not asking any questions about the property they are viewing. To make the most of your time viewing open houses, follow the following 4 tips to maximize your experience and not be an Open House Fool.

1. Make an Entrance When you arrive, the host agent will likely introduce themselves to you. Introduce yourselves back. You know- like how your mom taught you when you were 5. The host is not going to bite or turn into your own personal stalker. I promise. I can’t tell you how many times I have introduced myself to an open house attendee only to be brushed off and not given the courtesy of a reciprocal introduction. Not only is it rude, but it is unnecessary. It tells the host that you are not an interested buyer in the home so they will likely focus their attention on other attendees, leaving any questions you may have unanswered while they attend to other parties.
2. Make Your Intentions Known If you’re a nosey neighbor, just say so. It does not bother the host to chat with neighbors. If you hide it, they will be able to tell anyways (trust me, we can tell) and it just makes you look silly. If you have an agent already, that’s great! Let the host know that too. You can even tell them who it is- they will likely know each other already which may help you if you end up making an offer, which leads to number 3.
3. Make a (good) Impression If you are even semi-serious about the house, take some time to endear yourself to the host agent. When your offer is presented to the seller the agent will be able to personify your offer to the seller that may make them more apt to accept your offer over someone else’s. Conversely, if you are rude, terse, and short with the host and spend the time you are there bad-mouthing every feature of the property and the seller’s belongings that may not bode well for you at the negotiation table either.
4. Make it an Opportunity If you are new to your home search and do not yet have an agent, an open house is the PERFECT opportunity to casually interview and assess several agents in a short amount of time. You can ask questions, chat with them, see how well you connect and even watch them in action with other open house attendees. Don’t be afraid to let them know you are looking for an agent, and definitely do not be afraid to ask questions about anything real estate related. Consider it a job interview on your terms.

Ultimately the open house can be a great tool for buyers if used properly. Just remember- mind your manners, the host agent will not turn into your personal stalker if you chat with them, and take advantage of the learning opportunity in front of you and ask as many questions as you can.

Attitude is Everything

Picture this: You have lived in the same house for a decade. The family is growing and it is time to move up. And it is a BIG move with BIG financial implications. You hire a Realtor and begin your search. In a short time you find what you think will be your dream home- 5 bedrooms, 4000 square feet and lots of upgrades. But there's a "but". It has been on the market for almost a year. In this market. There must be something wrong with it, right?

You task your agent to get the answers to a list of questions- why hasn't the seller accepted an offer yet? How many offers have been made? Why don't some of the sprinklers work? Why is the carpet worn in a strange pattern on the stairs? All of these questions are completely valid, especially when you're going to be spending more than half a million dollars.

Since the house is vacant and there is no direct contact with the owner, your agent has to turn to the listing agent to glean as much information as possible to make you comfortable enough to make an offer. The listing agent is much like a gatekeeper of information- they will either already know the answers to your questions or will go back to the seller and get the answers and relay them back to your agent.

But what if they don't??

Well, as you can probably tell by now I am in this situation with clients. And unfortunately the listing agent is completely unwilling to give up any information the buyers are asking for. When I asked him how many offers had been made and when was the most recent one made, his response was "that shouldn't matter to the buyers or effect their willingness to purchase the property". HUH? It is a simple question that should yield a simple answer. When asked about the sprinklers and the carpet, his answer was "the buyer needs to investigate that through inspections once an offer has been accepted". Wait, what?

His attitude and affect towards my buyer's concerns is so negative and unhelpful it is no wonder this house is still for sale. So, in thinking about this at length, I have to conclude that his terrible attitude towards cooperating agents MUST be a contributing factor in the house sitting on the market for so long. I know for certain his attitude has effected my client's willingness to purchase the home. His evasiveness is making them uncomfortable, and when spending a large amount of money being comfortable is paramount.

What is the lesson here? If you are a seller, it DOES matter what kind of attitude your agent has when representing you. You have to remember- they are your voice to the other side of the transaction, so their attitude and way they portray you can not only make or break a deal, it can cost you money.

Pictures: Your Agent is Doing it Wrong

I have been brewing up a rant for a while now about something that is at the top of my list of professional pet peeves: terrible pictures of listings. It is bordering on an epidemic and I honestly can’t take it anymore. The time has come to say what few have the guts to say. YOUR AGENT IS TERRIBLE AT TAKING PICTURES. It doesn’t matter you say? Keep reading.

 

Picture yourself in a position of needing to sell your home. You don’t know who to call, so you ask some friends for referrals and call around to a few local offices. You take the time to meet with more than one agent to pick just the right person for the job. After much deliberation you choose one- they come over and sign the listing paperwork with you- then THIS happens: Out comes their phone to take pictures of your house. That you just signed an agreement to pay them TENS OF THOUSANDS of dollars to sell.

 

Ruminate on that for a bit, and let’s back up for a second.

 

Our market is changing. We have more inventory than we did a year ago, so we are returning to a much more normal market. People have equity, there are more regular (equity) sales than there are not, and there are more homes for buyers to choose from. Where are buyers looking for the homes they are deciding to look at? The internet. What are they looking at to determine if they want to see a certain home? THE PICTURES!

 

 Ok so back to you and your house for sale. A six percent commission on a $200,000 home is $12,000. TWELVE. THOUSAND. DOLLARS. And for your money, you get this. 15-20 sideways, poorly lit, blurry pictures of your house all over the internet.

 And by all over- I mean ALL OVER. Trulia, Zillow, Realtor, Movoto, Redfin, plus all of the individual local company websites and their international franchise websites. Your sideways pictures are viewable by the family relocating from Calgary to Ceres (that actually happened to us recently). Pictures are important to those people!

 

Then there’s my personal favorite. The “I-almost-forgot-to-take-a-picture-of-the-front-of-your-house drive by photo”. Who needs to actually get out of the car?? I, for one, think it is really important for potential buyers to see your door frame and side mirror.

 

 

Now let me be clear on a few things. First, bad pictures will not cause your house to NEVER sell. It will sell eventually- but maybe not for the price you originally thought it would, or it may take longer to the extent that it affects your ultimate goal you are trying to accomplish in moving. Secondly, bad pictures do not indicate that your agent is inept at representing you. All I am saying is that they are inept at marketing your home, and, in my opinion, lazy and therefore more apt to cut corners later.  Lastly I feel it important to note that all of these pictures were found in one short browse through our local MLS of active listings. It took me about 30 minutes and I ended up with way more photos than I had room for in this blog. This leads me to my next point.

 

EVERY SINGLE BUYER we have worked with in the last six months has complained to us on a regular basis about the (lack of) quality of the property photos available to them. They are not expecting professional photographer grade photos- all they want is for them to be straight, well lit, clear (not blurry), and not of just the occupants furniture! I promise you with 100 percent certainty that if your pictures met the (simple) criteria mentioned above, buyers would not pass up seeing your home before they look at all of the other homes available that have far more appealing pictures.

 

And before you say anything, I know what you’re thinking. Your agent is thinking the same thing. “Well my iPhone 5S has the best camera… yada yada yada”. Sure it is great at taking pictures of your latte, your fancy dinner and your kids baseball practice with that cool sunset in the background. You know what it is not good at?

This.

 

Or this.

 

And, to be perfectly honest, I have absolutely NO idea what this picture is. The garage? A laundry room? Your guess is as good as mine.

 

So after you sign that listing agreement- and the cell phone comes out for pictures- ask yourself if you trust that the agent you are hiring for the job has the right marketing strategy for your home, and will not continue to cut corners throughout the process. Or better yet- before you sign- while you are interviewing agents ASK them how they will take pictures, and ask to see other listings they have or that have sold recently so you can see what they have done for other clients. After all, you are HIRING someone to do a JOB for you, so why would you want to sell yourself short by choosing someone who is not willing to do the job correctly?

Eight Ways To Bolster Your Appraisal

With historically low interest rates and rising property values, many homeowners are trying to refinance their mortgages. Often the most stressful part of the process is the appraisal. If you are in this situation this article we found on Reuters may help you out. Below are what they cite as the eight ways to help the appraised value of your property. (Source ) While all of these may not apply to your specific property or situation, we found the information really helpful. If you are curious about your home's value for either sale or refinance, do not hesitate to contact us we would love to help you out.

Here are eight ways you can bolster your appraisal:

1. MAKE SURE APPRAISER KNOWS YOUR NEIGHBORHOOD

Is the appraiser from within a 10-mile radius of your property? "This is one of the first questions you should ask the appraiser," says Ben Salem, a real estate agent with Rodeo Realty in Beverly Hills, California. He recalled a recent case where an appraiser visited an unfamiliar property in nearby Orange County and produced an appraisal that Salem said was $150,000 off. "If the appraiser doesn't know the area intimately, chances are the appraisal will not come back close to what a property is really worth."

You can request that your lender send a local appraiser; if that still doesn't happen, supply as much information as you can about the quality of your neighborhood.

2. PROVIDE YOUR OWN COMPARABLES

Provide your appraiser with at least three solid and well-priced comparable properties. You will save her some work, and insure that she is getting price information from homes that really are similar to yours. (For this info we suggest you call a local Realtor to help you out so you can give the appraiser the most accurate data available).

 

3. KNOW WHAT ADDS THE MOST VALUE

If you're going to do minor renovations, start with your kitchen and bathrooms, says G. Stacy Sirmans, a professor of real estate at Florida State University. He reviewed 150 variables that affect home values for a study sponsored by the National Association of Realtors. Wood floors, landscaping and an enclosed garage can also drive up appraisals.

4. DOCUMENT YOUR FIX-UPS

If you've put money into the house, prove it, says Salem.

"Before-and-after photos, along with a well-defined spreadsheet of what was spent on each renovation, should persuade an appraiser to turn in a number that far exceeds what he or she first called out."

Don't forget to highlight all-important structural improvements to electrical systems, heating and cooling systems - which are harder to see, but can dramatically boost an appraisal. Show receipts.

 

5. TALK UP YOUR TOWN

If your town has recently seen exciting developments, such as upscale restaurants, museums, parks or other amenities, make sure your appraiser knows about them, says Craig Silverman, principal and chief appraiser at Silverman & Co. in Newtown, Pennsylvania.

 

6. DISTINGUISH BETWEEN UPSTAIRS AND DOWNSTAIRS

Many homeowners covet that refinished basement, but that doesn't mean appraisers look at it the same way. "Improvements and additions made below grade, such as a finished basement, do not add to the overall square footage of your house," says John Walsh, president of Total Mortgage Services in New York. "So they don't add anywhere near as much value as improvements made above grade."

According to Remodeling magazine, a basement renovation that cost $63,000 in 2011-12 will recoup roughly 66 percent of that in added home value. That's not as good as an attic bedroom, which will recoup 73 percent of its cost. Even similar bedrooms typically count for more if they are upstairs instead of downstairs.

7. CLEAN UP

Even jaded appraisers can be swayed by a good looking yard. "Tree trimming, cleaning up, a few flowers in the flower beds and paint touch up can all help the appraisal," says Agnes Huff, a real estate investor based in Los Angeles.

That advice holds true indoors, too. "Get rid of all the clutter in your home," says Jonathan Miller, a longtime appraiser in New York. "It makes the home appear larger."

8. GIVE THE APPRAISER SOME SPACE

Don't follow the appraiser around like a puppy. "I can't tell you how many homeowners or listing agents follow me around in my personal space during the inspection," he says. "It's a major red flag there is a problem with the home."

And while you're at it, make the appraiser's job as pleasant as possible by giving your home a pleasant smell. At a minimum, clean out the litter box. Baking some fresh cookies and offering him one or two probably won't sway your appraisal, nor should it. But it couldn't hurt.

Stagnant Agents + Changing Market = Frustrated Buyers

Just in case you have been living under a rock for the past 9-12 months, we have a serious lack of inventory in Stanislaus County- like a month's worth or less. Because of this the job of a buyer's agent is changing, and what may have worked in the past is not working anymore. The result is overworked agents and extremely disappointed and frustrated buyers.

Fast forward to yesterday when I read a Facebook post by a lender friend of mine asking what agents are doing these days to get offers accepted for their clients, because he has a lot of pre-approved buyers looking but they aren’t having much luck getting an offer accepted.

There were some really great responses by other Realtors- which got me thinking:

AS A BUYER, HOW DOES YOUR AGENT  AFFECT YOUR ABILITY TO GET YOUR OFFER ACCEPTED IN A COMPETITIVE MARKET?

Despite what many buyers think, their agent has just as much to do with their ability to successfully buy a home as the dollar amount they offer the seller. Here is some of what I see are the "best practices" your agent should be using to get your offer accepted:

• Your agent should be advising you to put yourself in the best position possible to get your offer accepted. If you come to them as a new client assuming you can ask the seller to pay all your closing costs, and they do not tell you otherwise and instead help you find a way to get the money another way they are not giving you very good advice. You are going to write offer after offer and likely not understand that is the ONE thing holding you back from getting an acceptance.

•  Your agent should be encouraging you to look at homes priced below the max you want to spend. If they are encouraging you to only look at homes that are at or above your max they are setting you up for more disappointment. If you are only willing to spend $150,000, you should be looking at homes that are $140,000-$145,000 so you can offer MORE than asking price. Not less.

• If you come to your agent as a new client with a preapproval from a lender they are unfamiliar with, they should be encouraging you to get a second opinion or explore alternative loan programs. Our market is changing- and with it so is the lending market. There are more programs out there now with low down payments besides FHA!  Your agent should be telling you this; because changing loan programs may cut down on costs so much that you can afford $20,000 more in house and afford to “play the game” when it comes to making offers above asking price.

• Lastly, are they a true professional? Honestly, this is probably the most important point on this list. It really, really matters how professional, courteous and respectful your agent is with the SELLERS of the homes you are looking at. Rapport matters! If you as the buyer and your agent are kind, polite and take a minute to build rapport with a seller when given the chance it will carry you MILES when they are looking at a pile of nearly identical offers. THEY WILL REMEMBER YOU THE SAME WAY THEY REMEMBER THE AGENT WHO WAS LATE AND/OR WAS SHORT AND UNFRIENDLY TO THEM!  Also, it really, really matters what kind of relationship your agent has with other agents in town. Having solid, long-standing trusting relationships with other agents does help to get offers accepted. If your agent is rude, unprofessional and/or has a reputation of not playing well with others it is most definitely going to hurt you. I should note here too the same goes for your lender! If you have a lender with a bad reputation it will make your offer get flat- out rejected the majority of the time.

If you are shopping for a home and you are already working with an agent, ask yourself if they are doing any or all of these things to create the best possible scenario for YOU. The market is changing. Is your agent changing with it?

Having Trouble Getting Your Offer Accepted? Try Writing A Letter!

Let's be real- writing a thoughtful letter to someone to get what you want is not a new idea. In fact, it has been happening in real estate for quite some time but hasn't been incredibly prevalent.

With our inventory woes in Stanislaus County buyers are getting creative- and it is working.

In our most recent short sale, we received multiple offers as we expected. The offers were largely similar in price and terms- but one stood out from all the rest. It included a very thoughtfully written personal letter from the buyer to the seller. In it she thanked them for allowing her to see their home and elaborated a little bit about her individual situation and the difficulty she's had finding a home. It touched them so much it persuaded them to accept her offer over the others we had received.

A personal letter accomplishes a couple things- first, it builds rapport between you and the seller. It puts a "face" to the name on the contract and enlightens them to your situation. Many sellers were at one time in the same situation and can be extremely empathetic. Secondly, since many sellers make decisions from an emotional standpoint rather than an empirical or strictly financial standpoint so having that rapport with them can give you that emotional edge that you need for them to select your offer over the others they have received.

Of course if you are writing an offer on a bank or corporate owned property this tactic will not be nearly as effective. But, as our market is turning around and there are more traditional equity sellers it is definitely something you should consider when you make on offer on your dream home.

If you are ready to start your search, visit our website www.LivingModesto.com or give us a call at 209-614-3303 or 209-505-3297. We look forward to hearing from you!

Why It Pays To Hire A Realtor When You BUY A House

It Pays to Hire a Realtor.

Sounds pretty cliché, right?

But actually it’s true.

I think it is pretty obvious to most people that hiring a Realtor to sell your home has its advantages- but in this blog post I am going to talk about why it pays to hire a Realtor when you buy a home.

The reasons are actually pretty simple.

As the buyer, it doesn’t cost you anything to use a Realtor

 Most people don’t know how I get paid when I sell them a house. At some point they will awkwardly ask me “uh, so do we have to pay you?”. The answer is always “no”. 99% of the time in real estate the seller is who pays the commissions to the agents. One argument against this point is that if there are no agents involved it costs the seller less money to sell and then may offer the home at a lower price to the buyer. Why is this wrong? If there is any money left on the table, trust me it will go in the seller’s pocket- not in the form of a discount for you.

Realtors have access to the most up-to-date information

Since the internet became the main staple for home-searchers many people think they can go online and in an evening find their dream home. While there are some great websites out there- there is something that almost nobody understands about that information. The platform Realtors use to “list” homes is called an MLS (Multiple Listing Service). The other websites that feature homes for sale get their information from the local MLS through something called an IDX feed. The accuracy and frequency of the updates of the information though is determined by the third party website. What this means is that what you are seeing may not be very current or accurate information because they can display it in ways that they see fit. In essence, if you are relying on those other sites for your info you will waste a lot of your time and likely get your hopes up over homes that are no longer available or not even for sale.

Your Realtor will hold the seller accountable to their disclosure duties

When you sell a home you are required by law to disclose certain things to the buyer. Most sellers (and definitely most buyers) have no idea what all those things are. It is the job of the agents to ensure that the seller makes the disclosures and that the buyer understands the disclosures.  Not knowing what the seller is obligated to disclose to you may cause you to buy a house that has major issues and/or defects that you can’t easily see, such as roof leaks, plumbing or electrical problems, flooding or drainage problems or even a past death on the property.

Your Realtor will ensure you get the right inspections

Along with the disclosures, buyers need to conduct their own inspections of the property. Not every property needs every kind of inspection though so it is important that you have an agent to guide you on what to get and find you the right professional to do the job for you. A proper inspection can help reveal issues that even the seller may not be aware of.

Not everyone is a candidate to buy on their own

If you are a seasoned investor and a friend calls and offers to sell you a house at a bargain, you will likely jump at the opportunity- and rightfully so. This is not the instance that this blog post is in reference to. When you have never bought an investment property and you still live in the only house you’ve ever bought 20 years ago, you are most definitely NOT a candidate to buy a house without representation. There is a litany of things that can go wrong that can cost you thousands and may land you in court.

You can’t rely on the escrow company to guide you

There is a misnomer with a lot of people that the escrow officer will help a buyer and/or seller with contracts. The inherent purpose of the escrow holder is to be a neutral third party between the buyer and seller. For this reason, they cannot get involved in the drafting of contracts and addendums and they cannot give advice on what either buyer or seller should sign or not sign. So if you are buying a home without representation assuming escrow will help you- you may be surprised (and feel a little lost) when they tell you they can’t help you.

 The bottom line here is this- know yourself. If you are the type of person who can’t buy a pair of shoes without guidance from your best friend you probably shouldn’t try to buy a house without the representation of a Realtor. A good realtor will give you their objective opinion and really help guide you in the right direction to protect your interests and your wallet.

If you are ready to start looking for a new home, call us today! We look forward to getting to work for you.

Fiscal Cliff-Dive Averted?

Unless you live under a rock or are just waking up from your New Year's Eve hangover you have undoubtedly heard that congress came to an agreement to help avoid the so-called "fiscal cliff".

The most notable aspect is the extension of the mortgage debt forgiveness. This was a temporary loophole in tax law that allowed for certain homeowners to be exempt from federal income tax on the amount of debt forgiven through short sale, foreclosure or loan modification. The new deadline is January 1, 2014.

The potential tax ramifications to most homeowners of paying income tax on an additonal $100,000 or more in income is pretty crushing for most people- and this is on top of whatever other financial burdens and hardships they are having. While this may not be the best news for our nation's deficit, it may be a step in the right direction to get our economy back on track.

This also comes as a relief to sellers who are in the process of completing a short sale on a home but weren't able to close before the end of the year.

If you are thinking a short sale may be the right option for you, call us today for a FREE no obligation consultation! We will help you look at your options and decide what is right for you.

Why It Is Not As Hard As You Think To Sell Your Home During The Holidays

 

In all my years in real estate one of the most common things I hear from potential clients starting around mid November is "I want to wait until after the holidays to put the house up for sale". Granted, it is easy to assume that it would be better to do it that way- but here are the reasons why that assumption can be wrong.

 

1. Buyers are more serious

Most importantly, the most motivated buyers will continue to look over the holiday season. People who really need to or want to buy will continue to look regardless of what parties they are invited to and how much shopping they have left to do.

 

2. Less inventory available for the serious buyers to look at

Many people will take their home off the market and/or wait until January to list. In a market such as in the Modesto area where there is already a shortage of homes for buyers to look at this can pay off for those who decide to list. Less homes for buyers to look at means more buyers looking at your home, more offers and potentially more money in your pocket.

 

3. Homes are more appealing when decorated for the holidays

When your home is warm and cozy with a fire lit, cookies baking, and twinkling lights it will, by default, create a more emotional  and warm environment for potential buyers. Making them feel at home and nostalgic in your home will definitely result in offers.

 

4. Buyers have more time to look during the holidays

Most everything else slows down during the holidays- kids sports activities slow down, kids are on vacation from school, buyers may take time off work to spend time with family. During this down time the motivated buyers will definitely have more time to come see your home and can also be more accommodating to your schedule too.

 

5. Sell now, close later

Once you accept an offer on your home the most arduous part of the process for you is likely over. After the buyer is in contract you no longer have to worry about taking the dog for a walk so an agent can bring clients by, or that someone might show up while you're trying to make dinner. Once the offer is accepted all of the inspections will be scheduled in advance and with your Realtor's help you may not even need to be there! So if you list in early to mid December, accept an offer within a week, you can cruise through the 'holiday weeks' knowing that you have until mid-January (or later) to move out. The time periods are negotiable, so don't be afraid to use that to your advantage.

 

6. Tax implications

If you are doing a short sale or selling an investment property, there may be tax benefits to closing escrow during the calendar year. For specifics be sure to consult a qualified tax professional or an attorney.

 

If you are thinking about listing your home now or in the future, be sure to give us a call TODAY! Let us help you get a jump on your competition and put our knowledge and hard work to work for you.

Change Is In The Air!! Exciting New Announcement!

 

 

 

Hello Friends!

 

As 2012 comes to a close- I have some very exciting news! Effective today December 5 I am officially an agent with Re/Max Executive in Modesto! For those of you who have known me for a while you already know that I previously worked at Re/Max in 2005 and 2006 before moving to PMZ.

 

Why the move back, you ask? Well it is pretty simple- my longtime friend and associate Margeley Bernal and I have teamed up to form a powerful, experienced duo to maximize service and dedication to our respective client bases. Margeley and I bring a combined 15 years of experience to the table, offering you the best we both have to offer. Both of us are well versed in all aspects of residential real estate- from first time homebuyers to investors to the difficulty of short sales so you can be assured that your priorities are our priorities and you will get the best service possible.

 

Margeley and I will continue to cover all areas of Stanislaus County including Modesto, Ceres, Turlock, Riverbank, Oakdale, Salida, Waterford and Empire. Our coverage also reaches parts of San Joaquin County including Ripon, Manteca and Tracy.

Over the next several weeks we will be rolling out our brand new website and sending out some more notifications about the details of our partnership. We are both super excited to be working together and cannot wait to get started working for you!

My updated contact info:

Re/Max Executive

3425 Coffee Road

Modesto, CA 95355

phone (still the same) 209-614-3303

email (NEW!!) laceylfisher@gmail.com

 

Giving Thanks

Real estate can be an extremely tough business. I don't mean long hours hard work tough (but it is that too) for this example I mean mentally and emotionally tough. We are essentially providing a service, and there are 1000 other agents in line behind us that can provide the same service. Knowing this we often bend over backwards to please our clients- not only because of dedication to them and our profession but to keep them as clients. Sadly, no matter the amount or frequency of back-bending we do, we sometimes lose a client to another agent.

 

This is where the emotionally draining aspect of this business comes into play. It always hurts to lose a client. Always. It is an ego blow, a disappointment, a letdown, and sometimes a financial setback. Let's be real- selling real estate isn't for charity we actually do this to make a living.

 

I have had a pretty good track record over the years in retaining clients, but I lost one recently. A big one. An important one. A friend. I still am not sure why- and for the purposes of this post it isn't important. But what IS important, is that I realized today while washing dishes in my kitchen that relative to everything else that has happened this year it doesn't matter. Tomorrow is Thanksgiving, a day for reckognizing what we have, how far we have come and for those that enrich our lives. I have an amazing, healthy family. I have a warm, comfortable home to live in. I have plenty of food to eat. I am an American and I get to enjoy all of the rights and privileges that affords me. And- on top of all that- I get to help people at very important times in their life. Throughout this year and the past 8 years I have met and helped so many people either find their first family home, purchase their first investment property or helped them out of a crushing financial burden. Many of these people have become friends, but they have ALL enriched my life. I would not be where I am today without them, and for that I am truly grateful.

 

No- I am not going to let this ONE thing get me down. I have way too much to be thankful for.

 

Happy Thanksgiving everyone! 

Choosing the Right Lender- It is About More Than Just "Numbers"

I am a creature of habit. I HATE change. I have neither the time nor the patience for it. So, when my favorite lender, whom I adore both personally and professionally, broke the news to me that she was retiring I was flooded with a mix of shock, sadness, and then sheer panic.

“What about ME? What about my clients?!” I blurted out before I had time to think about what I was saying. Tears almost came out of my eyes. After several minutes of reassurance from her- my selfishness subsided and I was able to be happy for her- after all, she deserves it after decades of being the hardest working woman in real estate (I know that sounds like hyperbole, but if you know her like I do you know it’s true).

So here I am- being the opposite of a “change agent” left wondering what I am going to do the next time I need to refer someone to a lender. I have never really been one to “share the love” when it comes to referrals- like I said- I hate change, so when I found someone that worked the way I did I stuck with her exclusively. For YEARS. Granted, I am exposed to other lenders when I am the listing agent and represent the seller but most of those experiences left me being smugly satisfied I had her in my corner as opposed to being impressed by the buyers lender. 

All this turmoil has forced me to evaluate how I would pick a good lender- so I guess I need to take my own advice. I figured this would be a good opportunity to pass along to you what is important to me in a good lender. Keep in mind these points go beyond choosing a lender based rates and fees- those are easy to evaluate. There are many more intangibles that can make a lender good or bad.

1.       Is lending their full time job? If not- run. They shouldn’t also sell real estate or do property management or work at some other full time job. You need someone to be dedicated to the job you’re hiring them for so you get the highest level of knowledge and service possible.

2.       Are they local? If not- find someone local. Yes, we live in a digital age and most everything can be done electronically, but frankly out of area lenders rarely do a good job. Not only do they not have any interest in impressing the agents (because there is no chance of repeat/referral business) they do not have their finger on the pulse of the local market and coinciding potential appraisal pitfalls.

3.       Are they too busy to talk to you? If the first several times you deal with them they are not readily available, or they do not return phone calls or emails and you constantly have to chase them down take that as a sign and RUN in the opposite direction. It will not get any better.

4.       Does your real estate agent recommend them? If you are working with an agent that has been around for a while there is a good possibility that they may know or know of your lender. An honest agent will tell you if your lender’s reputation precedes them (either positively or negatively).

5.       Do they understand your situation? If they “preapprove” you over the phone without seeing your credit, income or asset documentation you should be worried. Underwriting guidelines change almost daily these days- so if you have even a slightly unique financial situation it is IMPERATIVE that they take the time BEFORE you are in escrow to fully evaluate your situation so you know if your loan will make it through underwriting. After you have put down a deposit, paid for the appraisal and inspections is not the time to find out your lender overlooked the fact that a past credit blemish or odd source of income will kill your deal.

6.       Do you feel comfortable with them? If you don’t, you should listen to your gut. Getting a mortgage is not like buying a car so you should not assume that it is normal for your lender to be unprofessional, dishonest, fast-talking or swarthy. They should be up-front with you about rates and fees. They should be able to quote you a rate after seeing your financials, at which time they should also quote you their fees. As a side note- a truth in lending statement is a better comparison tool than a good faith estimate, but we’ll save that for another blog post. If you feel instinctively that they are giving you bad advice- they probably are. Listen to yourself and get a second (qualified) opinion.

7.       Are they willing to answer the hard questions? A good lender will take the time to answer all of your questions- no matter the quantity or difficulty. They will also take the time to educate you on the entire process you are going through. Once thing I encounter a lot with buyers on my listings is they get frustrated with their lenders when they are left in the dark about what is happening with their loan and the lender won’t return their phone calls.

The bottom line is this: getting a loan for a home is a big deal. Do your homework, ask around (to people who know what they’re talking about) and make sure you FEEL COMFORTABLE with the person you choose to work with.

In the meantime I have found someone to step into the place of someone who I once felt was irreplaceable, so if you need a referral to a local lender- don’t hesitate to give me a call!

Control Freak? Buying or Selling a House? READ THIS!

When you are a control freak like me, real estate is a hard business. A real estate transaction, by nature, is a confluence of mutual interests. Sellers wants to sell, buyers want to buy, etc. Where it gets tricky is when there is disagreement between buyer and seller on the terms of the sale.  

This is where being a control freak becomes problematic. As the agent of either the buyer or seller I am not given the luxury of being able to participate in negotiations with the other side- let alone control the outcome of those negotiations to ensure the satisfaction of my client. In simpler terms- when I represent the buyer I cannot promise/guarantee/predict the seller’s response to our offer, and vice versa (as much as I may want to for my client's benefit!). I am simply the messenger delivering the message from the opposing party. Because I am your agent, not your attorney, I act upon your instruction whether or not I agree with or condone your decision and no matter how sure I am of the potential ramifications of your decisions. I cannot nor will not make decisions on your behalf.  I essentially deliver your message after offering you my advice and/or opinion.

OK. Go back and read that last paragraph again. Let it sink in for a second- there will be a quiz later. I’ll wait right here.

Got it? Great.  Now here is your quiz:

Buyer Jones makes an offer on seller Smith’s home. Asking price is $200,000. Buyer Jones’ offer is $175,000. Buyer Jones informs their agent they will absolutely not pay a penny more. The Jones offer is presented by the seller’s agent to seller Smith. Seller Smith chooses to makes a counter offer of $185,000. Buyer Jones is presented seller Smith’s counter offer and is now angry at their own agent because they stated they would not pay more than $175,000. Buyer Jones does not buy the home, and subsequently fires their agent.

What is wrong with this picture? I’ll give you a moment to think about it.

Got it? Good. In case you didn’t- here is the short answer: It is not the fault of Buyer Jones’ agent that seller Smith responded to their offer unfavorably. It is not the job of either agent to decide or dictate the terms of any offer or counter offer. Regardless of what Buyer Jones stated up front of what they will or will not do, seller Smith is entitled to counter in any way they see fit- and the terms of that counter are NOT the decision of the Jones’ agent- or the Smith’s agent for that matter.

Conversely, seller Smith should not be angry at their agent for presenting them with an offer that is less than what they said was the least they'd take.

So, you are undoubtedly asking “what is the lesson here?” Well let me tell you- buying and selling a house is more than understanding the terms of the contract and what interest rate your lender is giving you. It is important that you understand the entire process, and the nature of the agency relationship between you as buyer or seller and your respective agent(s). We are obligated to deliver messages to our respective clients, regardless of knowing how favorably or unfavorably the message will be received. Not understanding this vital aspect to real estate transactions can lead to misplaced anger and frustration on all sides. The more you know the better prepared you can be.

If you are ready to make the leap into the real estate market- please call me for a free, confidential consultation!

What Being A "Good Client" Means and How it Helps Your Agent Get the Job Done (Part I)

At the very crux of it, a real estate transaction is a partnership. The buyer seller and their agents need to partner together for a common goal- to close the transaction. When you are a buyer or seller the partnership begins though the very first time you meet your agent.

The nature of the relationship between you and your agent is such that your agent works with you to help you make decisions and they act based on your instruction. This is the case whether you are the buyer or the seller. Because of the nature of this relationship we NEED you to be an active participant in the process since we cannot act on your behalf much like an attorney would for a client.

In the first of this two part series I will address the buying side of the transaction. Part two will cover the seller's side.

So, what does it mean to be a "good client"?

BUYERS

1. BE SPECIFIC about what type of home you want and how much you want to spend. If your agent shows you a home you don't like tell them why. The more information your agent has the better they can help you find what you do want.
2. BE PATIENT when what you want does not appear immediately. Currently in Stanislaus County there is a serious shortage of inventory so almost every buyer is in the same position as you. Ask your agent to set you up with a client portal on Metrolist so you receive an email any time a home comes on the market that meets your criteria. This way you won't miss anything. Secondly, do not get discouraged when a home sells the same time it hits the MLS. With our inventory woes, many agents have homes sold before they even put them on the MLS.
3. BE AVAILABLE when needed. If you indicate to your agent you are absolutely desperate to buy ASAP they are going to accommodate that for you. So if you are truly in a huge hurry, and your agent calls you to show you what they believe to be your dream home- make it a priority. With our inventory the way it is you need to see the home as soon as you can, so telling your agent that you are too tired or you don't want to miss your favorite TV show indicates that you may not be as motivated as you think. If your agent needs signatures on an addendum or counter offer by a certain time- make it a priority. Returning phone calls, texts and emails helps too. All too often people lose out on homes because they cannot or will not make the time to do what is needed of them. There is only so much your agent can do without your participation. There are deadlines to be met and without your participation your agent cannot do their job of getting you the home you want.
4. BE TOGETHER when you see a home for the first time. Unless there are extenuating circumstances I adamantly recommend both decision makers see homes together.  In many instances there will be a deadline for offer submission so if one half of the decision making pair are not available it could cause you to miss out. And, when your spouse/partner tells you to pick out what you want and they will just 'go along with it', it NEVER works. Trust me. 
5. BE RESPECTFUL of your agent's time. Real estate is an appointment driven business. Most agents work with more than one client at a time, so calling your agent and wanting to see a house in the next 10 minutes may not be possible. While we try to accommodate your schedule as best we can the more notice you give us the better. If you give your agent 10 minutes notice and they cannot accommodate you- don't get mad at them and assume they don't have time for you! Your agent likely has other clients who require attention, not to mention a family they may want to see once in a while. There are many concessions agents make to accommodate your schedule that you do not ever see (missing dinner with family, missing kids baseball games, having to prioritize other client's needs, etc) so please do not hold it against us if occasionally we tell you "no".

If you are currently looking for a home or are thinking about jumping into the market, please take these points into consideration. Your agent will thank you!

RED FLAGS to Look For When Hiring a Listing Agent

Choosing the right agent to sell your home sounds easy, but there are a lot of "red flags" to look out for when hiring the right listing agent for you. Here are some things to keep in mind:

Are they easily accessible?
I don't mean do they answer their phone at 10pm when you call, but do they regularly and consistently answer their phone during normal business hours? Do they make themselves available to you?
RED FLAG: Their voice mail is consistently full so you cannot leave them a message. This is a HUGE pet peeve of mine. This indicates that your potential agent is sooooo busy and or careless they cannot clean up their inbox enough to make space for you to leave a message for them. What happens when potential buyers are calling them about your house? The calls go missed and you miss out!

Are they patient with your questions and concerns?
You will undoubtedly have questions and concerns about listing your house for sale, especially if you have never done it before.
RED FLAG: If they are rushing you into signing and telling you "not to worry" about your concerns they will likely also rush you into accepting offers and not be very patient in addressing your future concerns while you are in escrow.

Are they sensitive to your situation?
Many sellers in our current economic climate are not selling for financial gain, but for financial salvation. If this is you, you are likely a little embarrassed and self-conscious about your situation.
RED FLAG: If they make light of your financial situation and want to use it as a marketing ploy with phrases like "sellers loss is your gain" (another pet peeve of mine) it is not indicative of a person who is terribly empathetic with your given situation. They should care about your pride and not exploit your hardship to sell your home quicker.

Are they dedicated to selling your home?
Even though agents work with more than one buyer and seller at a time, experienced agents are very good multi-taskers and can effectively service all of their clients seamlessly.
RED FLAG: If they have another job!! Being a full time Realtor is a full time job. If you are trusting someone to sell your home it is more involved than signing a piece of paper and putting a sign in the ground. You need someone who is available to you, potential buyers and buyers agents without other commitments that will always have a higher priority than selling your home.

Are you hiring them or their name?
Many successful agents eventually create a "team" that works for them. There is usually an escrow assistant and maybe a buyer's agent or two. The team dynamic can be very effective and successful for many agents and their clients.
RED FLAG: You contact the agent to list your home based on your familiarity with their name around town, but soon discover that you are handed off to a "team member" and work only with them. While I am sure most agents who hire team members only hire competent able-bodied people, what is the point of hiring the high-powered big name agent if they are not going to be involved in your transaction at all? Sure, their name is on the sign, but are you really getting the benefit of their knowledge and experience if they are not the one actually working for you?

I know I have said it once- but I will say it again- selling your home is more than putting a sign in the ground and uploading some photos to the MLS. Interview more than one person for the job of selling your home, and be weary of potential red flags. Your wallet and your sanity will thank you later.