This is a very difficult concept for buyers to wrap their head around. They see a home being marketed at a certain price and they assume that’s what the home is worth to the seller.
Wrong!
The home is worth “market value”. What exactly is market value? It’s what a buyer is willing to pay for that type of property at that time. It could be more than the listing price, it could be less.
Here’s the problem, buyers are not used to buying things like that. Oh, we go car shopping and see the sticker price and start negotiating down from that, but who goes to a store or showroom and expects to negotiate up? No one. And yet, this is what it takes to buy nice homes in this kind of market.
How much more? You need good information and data to make that determination. I’m doing market analysis on properties for my buyers so that can make smart decisions on what they should pay for properties.
Don’t get caught thinking that list price equals market value. In many cases, it does not…..
Summer is the traditional season for relocating. Families move into new school districts, the weather cooperates and buyers get excited.
This year looks particularly inviting. Low interest rates, foreclosed properties at bargain prices and income tax incentives for qualified buyers. What’s not to like about that? Are you ready to pack up?
The internet is fast becoming a bigger part on my business. I met Pattric last year on a message board for Realtors. She has been looking in this beautiful area and she was kind enough to give me her endorsement.Pattric on YouTube
Karen flew into town from New York to look at homes on the Peninsula. She did some research and found me on the internet through Trulia. It’s always exciting for me to meet people with dreams of relocating to paradise. Karen on Youtube
First of all, a short sale is anything BUT short in putting together. It’s a long, drawn out process that leaves many sellers, buyers and agents frustrated. So the question begs, what does it take to put together a successful short sale?
My recommendation, bring in someone to facilitate the paperwork.
I work with a local title company that has a specialized team that are only dedicated to assembling the necessary paperwork and spending the enormous time it takes in communication with the lender in a short sale transaction. These people are experienced in handling these types of transactions. They know all the documents the banks want to see. Real Estate agents are very adept at marketing, but having the time to chase after the bank officers and finding out that they required additional paperwork can leave the agents burned out on doing these transactions. Not only that, but the bank seems to prefer to work with a "neutral party" instead of the Realtor selling the home. There is less emotion involved and because they communicate on other short sales, they have had the time to develop relationships.
Short sale facilitators will add costs to the transaction, but they will also greatly increase your chances of a successful sale. After all, that’s what everyone is after, isn’t it?
Please forgive me for being a little bit "excited" on this blog, but I just got done with a very successful buyer’s seminar.
There is nothing like the satisfaction of educating people and watching that "light bulb" come on. I’m certainly in the business to make money and feed my family, but there is always a part of me that enjoys those warm and fuzzy moments. Today was such a day for me.
The key word I use is opportunity. Even with all the negative news and dour forecasts, people know and sense what a great opportunity they have in real estate right now. It’s so simple. The banks are liquidating homes. It’s either your opportunity, or someone else’s. If you are knowledgeable about your financing options, can afford to make mortgage payments and feel like you are getting a good deal on a home, why not take advantage of this market?
People asked lots of questions at the seminar. Guess what? I love that! It means they are engaged in the process and are willing to hear my opinion on real estate. Great! This is where all the research and experience pays off.
If you sense this market contains your "opportunity", please feel free to ask questions. It makes Realtors like myself feel good about being the source of information for you.
Elton John wrote a beautiful song, which he later adapted for Lady Diana. It talks of the vulnerability of being different. In today’s real estate market, I can relate to that song.
Last year was my best year ever in sales. I found myself feeling kind of guilty as other Realtors were struggling just to stay in the business. I kept asking myself "why am I blessed in the middle of a recession?"
I think it came down to opportunity. I was able to show buyers where the greatest opportunity lay. I made the transaction as smooth as I possibly could. I followed up and I offered to help them with other stuff even after the sale was over.
Because of that, I received referrals, people started talking among themselves and all of a sudden, my hard work became profitable work. My last two clients enjoyed the experience so much, they’ve asked me to locate another home for them to invest in. There are fortunes made in adversary, just as there are fortunes squandered in boom periods. It comes down to making the right decision with the right goals in mind.
It’s ok to be optimistic when others are gloomy. It’s ok to see opportunites when others see pitfalls. It’s ok to be a candle in the wind, when others would only see darkness. I choose to find success when others are expecting failure.
Well I lost an escrow this week. I started kicking myself because I’ve had such an excellent record of closing this past year. As soon as I began talking to other agents about it, I realized I’m not the only one struggling to get buyers through the loan process.
Banks and asset management companies are going through some tremendous changes right now. Remember all those bank mergers last year? Well the big banks are just now starting to realign the banks they bought. Departments are being phased out, managers are being replaced and companies are going through the inevitable "downsizing". All of this adds up to chaos and confusion for real estate agents trying to buy and sell their properties.
Patience is the buzz word in this situation. Escrows are going to take longer. Some deals that should be slam dunks are going to crash out. I’m educating my buyers that escrows are going to be more bumpier than normal. The winners will be the buyers who have the fortitude to ride out this storm and stay the course.
Being a Real Estate Professional, the question I’m most often asked is, what’s going on with the market? People sort of expect me to say "it sucks!" Truth is, real estate is always local.
In some areas, I have no doubt it does suck, but where I’m at, the market is doing well (for me anyway).
What’s happening in Monterey County is increased sales. More transactions are taking place now then at the same time last year. Fully one third of the market is in escrow. Over 300 single family homes are selling every 30 days, and have been for quite some time. Sales are and have been very steady and stable.
On the other hand, prices continue to adjust.
In some areas, they have fallen by as much as 50% in one year’s time. Anyone who even dreams of playin the "flip" game is asking for trouble under these conditions. I hear we are going to get slammed with REO foreclosures this summer, At the same time I hear that the banks are going to "freeze" foreclosing and work out loan modificaitons. Who knows who’s right? All I know is the market is moving and buyers continue to show a healthy appetite to purchase homes. I hope you are someone who is in a good position to take advantage of the opportunities in this market.
Years from now, when people look up the phrase "Buyer’s Market", they will see a picture of today’s date. How can people not want to buy right now? You have low interest rates (some of the lowest in Mortgage history), you have relatively low prices in many markets and you have the tax credit program (which could be as high as 15,000!) for anyone purchasing a single family home right now.
Traditionally, we were accustomed to seeing low interest with high purchase prices or high interest when prices were low. It’s very unusual to get both low interest and low price. Throw in tax relief and it’s just a no-brainer to buy now.
