5 Hilarious Phrases in Real Estate

When you have been in Real Estate as long as I have, you get to the point when you have basically heard it all. There are some outlandish beliefs about homes, the market, and agents out there. Here are five hilarious phrases I have heard from buyers and sellers about Real Estate!

“I Don’t Need A Listing Agent! I Can Sell My Own House”

So many sellers think that they can list their home “For Sale By Owner” or FSBO and that will save them a ton of money. They think they can list their home on the Multiple Listing Service, or MLS, put a sign in the yard, and the buyers will simply line up to place their offers. Unfortunately this method will most likely not work out well for the seller. There are so many things that could go wrong when a seller lists their own home. The first potential problem could be the listing price because people often don’t know the true value of their home, and are not usually up to date on the local market conditions. An overpriced home would cause the home to sit on the market for months with no offers. A real estate agent will have the experience and knowledge about local market conditions to properly price a home so it can sell quickly. Also, marketing a home is a full time job; simply putting a sign on the lawn will not sell a home. These days so many people are technologically savvy, and spend the majority of their free time online. A good real estate agent will have the skills to properly market your home, through all of the channels, to make sure that the listing is being made available to as many potential buyers as possible. Another potential disaster is what the result is when the home does get an offer and ends up under contract but the paperwork is handled incorrectly. One missed check mark on a contract…one failure to disclose…and the seller will have opened themselves up to potentially getting sued or having an invalid contract. Having a real estate agent who has filled out multiple contracts and knows exactly what must be disclosed, boosts the seller’s security and takes the stress off of their shoulders.

“One Agent Is Just As Good As Another”

HA! This is one of the funnier phrases that I hear a lot! Real Estate Agents are like Easter eggs…each one is different! If a buyer or seller chooses an agent that is not from their area, then they will not have the same advantage as someone who picks a local real estate agent. The reason for this is because the real estate agent will not be up to date on local market conditions, they won’t know how the local terrain could affect the home, and they won’t know their way around. Also, if a seller chooses an agent who is not from their area, then how will that agent know how to properly market their home, and where to find buyers who would want to live in that area? Another factor is the agent’s marketing strategy. Some agents are not up to date using the latest technology, and that can severely harm a seller’s chance at selling their home for top dollar. A good real estate agent in today’s market will be all over the internet, they will be on page 1 of Google, they will be using videos to market themselves and their listings, and they will have a strong email database that they can send out information to. Many of the agents out there today have not grown and adapted to new technology. However, whether it is a buyer or seller, they deserve to have an agent that is up to date and online!

“I Can’t Afford To Buy A Home Right Now”

This is a pretty common misconception among potential buyers but the truth is that many of the people that use this statement would, in fact, qualify to buy a home. In today’s market interest rates on loans are at an all time low and the cost of renting a home is increasing. Some people’s rent is higher than the average mortgage payment! This is the perfect time to buy. Also, many buyers don’t know about all of the programs out there that are available to help you buy a home. For instance, if the buyer has served in the military they may be eligible for a VA loan, and if the buyer is low income they may be eligible for an FHA loan. There are all sorts of programs available to help buyers purchase homes.

“If I List My Home For A Little More, Then Lower Offers Won’t Be A Big Deal”

Sellers often believe that if they list their home at an inflated rate, then they will have some wiggle room for negotiations, as well as feeling secure accepting an offer that is under the asking price. This sounds like it would make sense, but the truth is that listing your home for more than it is worth can be the kiss of death for your home. Most of the homes listed for more than they are worth end up sitting on the market with no offers, and then getting stale. Once a property is stale, no amount of marketing or price reductions will help bring it back to its former glory. The best thing to do is to take it off the market and wait awhile before you put it back on, and then when you do re-list it, make sure that you have an accurate price. To avoid this mistake it would be wise to contact a listing agent and have a comparative market analysis done on your home, so that the buyer will have a good idea of what it the home is worth before they list it. Once the seller has done a CMA, it is important for them to list the house within the suggested price range that the agent has provided to avoid ending up with a stale listing.

“Selling Real Estate Is Easy! You Just Show A Couple Homes And Make A Ton Of Money In Commission!”

This one is perhaps the one I hear most often when I hear people describing real estate agents, and it is so far from the truth. Real estate agents work really hard, and often they don’t make nearly as much as buyers and sellers may think they do for the time, effort, and attention to detail that they provide. They market listings, send out market updates, keep potential buyers informed on what is newly listed, negotiate for buyers and sellers, open escrow, put together disclosure packages, schedule inspections, act as a liaison between buyer/seller and title, keep detailed records of every document signed and email sent, coordinate with the lender, inspectors, and appraisers, and oversee the entire transaction from start to finish. Also, due to the fact that agents work on commission only, it is important to consider that they don’t get paid monthly or bi-weekly in a paycheck…the money they make must be spread out over time until their next transaction closes. Once you factor in high taxes and large overhead in order to pay for their marketing, office supplies, rents, etc, in the end the average agent doesn’t make as much money as most people asssume.

Open Houses

Is an Open House a Sketchy Real Estate Practice

Todd Waller, self-proclaimed “destroyer of the real estate fortress of suckitude”, is a Realtor in Southeast Michigan. In what is probably my favorite article on the topic, Todd brings facts and an honest look at the strategy that’s necessary for a successful open house, and whether an open is even advisable.

Todd declared an open house to be a sketchy real estate practice and you know what it probably is when real estate agents don’t explain their motives for holding one.

As real estate agents we know what most will say ” I am here to sell your home Mr. & Mrs Seller. What you don’t know is that the agent is crossing their fingers behind their back. Realtors hold open houses to pick up additional clients!

By the way this is perfectly fine just be honest about it. Please also let your client know that open houses present security risks. When anyone and everyone is allowed through the front door the chances of theft increase greatly.

by Bill Gassett

2015 Forecast: Gains Ahead

Continued economic growth and more reasonable lending standards could unleash pent-up demand for home sales.

JANUARY 2015 | BY ROBERT FREEDMAN

Alone among big Western economies, the United States is poised for solid growth in 2015, fueling job creation and keeping home sales on an upward path. The National Association of REALTORS® forecasts that existing-home sales will reach 5.3 million, an increase of almost half a million over 2014. The national median home price will rise, too, but at a sustainable 4 percent rate, to just below $216,000.

Increasingly confident renter households will enter the homebuying market after watching rental growth rates hit a seven-year high. And households that were forced into foreclosure or a short sale during the housing crisis several years ago could begin streaming back to the market, too.

Sales will be bolstered by the expected return of more reasonable mortgage underwriting standards that were in place prior to the housing boom. This shift by lenders will help soften the impact of gradually rising interest rates, which NAR expects to top out just below 5 percent this year. If interest rates defy expectations and remain close to where they are currently, this will be another boost to housing sales, says NAR Chief Economist Lawrence Yun.

On the commercial side, continued modest improvement in vacancies, absorption rates, and rent growth is projected for all the major sectors in 2015.

Questions to ask your Realtor.

Which could be a more difficult thing to accomplish - buy or sell a house? Both of these have complexities. One cannot be considered easier than the other. They have different aspects to examine - details that may entail complexities. In addition, in either transaction any mistake committed by either of the buyer or seller may cause him or her great deal of money.
For this reason alone, the best thing to do is find a real estate agent, realtor or broker. So again, to know which of these three, you have to know the difference between an agent, a realtor or a broker. Their categories are not on the same level.
The broker is supposedly equipped with the best education and training in the field of real estate. He or she has been licensed and recognized by an association of realtors. Next to the real estate broker is a realtor. His licensure is different from the broker and has been categorized to have lesser training and education when compared to the broker. The agent is also licensed as such and his or her license is not the same as that of the realtor and broker. Of the three, the agent may not have the same amount of experience as a seasoned broker.
But no matter which of the three should you seek for your real estate needs, there are a number of questions to consider.
Question number one - How much experience in property buy and sell does each of them have?
Although the broker is said to be the most experienced, this quality cannot always be true in comparison to the realtor and agent. What if the broker is just new to the business? Then the other two lower categories can be more seasoned. You can gauge this with the length of time they had been in the buying and selling of properties. And even the length of time in the business is not sufficient gauge. The better yardstick could be the number of units sold and the frequency of sales.
Question number 2 - How experienced are these experts on the area or locality of your choice?
You have to determine who of the three had adequate knowledge of the area. You should be informed of the neighborhood as well as the nearby shops, supermarkets, schools and to some - the church is important. How accessible is public transport? One other important knowledge is on the rise and fall of property value in the area - the market trend in real estate in your particular area of choice.
Question number 3 - How many properties are there in the listing and the availability for viewing for buying clients?
You should be given a number of choices. Find the agent, broker or realtor who can give you more options. Each has his or her own listing and you should have as many choices as possible - both in price, style or design, size and location.
Question number 4 - How much time can he or she give you?
Double agent - both for seller and buyer can give you less time. If you are a buyer, you should find a buyer's representative as this person can give you more time in your search for homes. Then in you are selling a property, find one who is concentrated on sales.
Real estate property business is not simple. Buying or selling a house both need careful planning and meticulous assessment. Not only the property is being examined but the real estate expert must be properly chosen.

So you really want to sell your home - quickly?

Here are 5 tips that will definitely push your home to the top of a Buyers' list:

I love the song "Accentuate The Positive", and that's exactly what you must do when selling. Think back to when you bought your house--what was the one big WOW factor that pushed you to buy that particular one? Perhaps it was the view. If that's the case then make sure your windows are clean as can be so the Buyer will fall in love with your view. The lyrics of the song also say to "eliminate the negative". Put on your Buyers hat and take a critical look at your house--is there something that jumps out at you that needs to be fixed, painted, cleaned or replaced? Do it before Buyers see your home.

We experience our world through our 5 senses and Buyers do the same when touring your home, especially in the areas of sight, smell, and hearing. It is nearly impossible for a Seller to know what their home smells like to an outsider. So ask your agent, or someone you trust to let you know. The worst thing you can do is go out and buy heavy air fresheners--Buyers will think you are covering up something unpleasant or you may trigger an allergic reaction...either way you've turned off the Buyer. I recommend a light vanilla scent if you decide you need an air freshener. Cooking smells linger so if you've had fish for dinner and there is a showing the next day, open the windows and air out your house. If traffic noise is a problem, buy a water fountain..the sound of water is always preferable to the sound of cars and, as an added benefit, it has an harmonizing effect on a home.

Let the light shine in. Light sells, which is why when you walk into a model home all of the lights are on and the blinds are open. People feel better in a light environment than in a dark one. I can't tell you how many times I have had Buyers tell me that they like a house because it is filled with light. I know it is tempting on a hot Arizona day to want to close the blinds to make the house cooler...don't do it if there is a chance it is going to be shown. Plus, many agents won't take the time to open blinds and turn on lights when showing a house, especially if it isn't their listing. So keep this in mind when your house is on the market--it should always be ready to be shown at a moment's notice and you want it to be shown in the best possible light conditions.
Clutter eats equity and space sells. This should be your mantra when putting your house on the market. Do yourself a favor and start packing--it will help you to begin to release your house emotionally and will allow Buyers to feel themselves in your space. Box up all those extras that are on the mantel, tables and counters. If necessary, remove excess furniture and take out all those pictures of your children and grandchildren. When selling, you must make your house a blank slate that is ready for a Buyer to make it their own.

Make your house as clean as can be. Nothing shows better than a sparkling and clean smelling house. Do a deep cleaning...this means drawers, cabinets, closets, windows--every square inch of your home. Use this opportunity to get rid of things you haven't used in the past year, box up items that you don't need currently, and clear out enough space for Buyers to be able to imagine their own belongings in your house. Taking the time to go through every part of your house will pay dividends especially if you repair, touch-up, and/or paint the areas that need attention. Don't forget about the outside of your home. Did you know that most Buyers will first do a "drive-by" when deciding whether to take a look at the inside of your home? That's why curb appeal is so important when your house is on the market.

Short Sales - NOT everything is black or white - short sales are totally in the gray zone.

Question: What Does An Approved Short Sale Mean?

A customer asks: "When I look at homes on Realtor.com, I see homes being advertised as an 'approved short sale.' Can you tell me why some of them say that and others don't? Plus, when I call the agents to get more information, they tell me to offer more than the asking price, and I don't know why. If it's an approved short sale, why would the seller want more money?"
Answer: Short sales are a complicated process, so I can totally understand your confusion. The wait for short sale approval can be very long, and sometimes buyers lose patience.
Another little quirk about short sales is the fact they are often priced under the comparable sales. Some agents list them low purposely to attract multiple offers. Therefore, the offer a bank accepts might be much higher than the list price because sellers often pick the highest priced offer.
Here is a quick overview of the short sale process:
What is an Approved Short Sale?
Banks generally do not approve a short sale until the bank receives an offer from a buyer. So, the usual way a short sale can be approved is for a buyer to submit an offer and get that offer approved. This is how a typical short sale goes:
Agent lists the short sale.
Seller delivers lender's required documents to the agent.
Buyer submits an offer subject to lender approval.
Seller signs the buyer's offer.
Listing agent sends the seller's package, the accepted offer and a HUD to the short sale bank.
Buyer waits anxiously, maybe for months.
Short sale approval letter is finally received by agent.
Agent calls the buyer's agent to deliver the news.
Buyer's agent informs listing agent that the buyer bought something else.
Buyer cancels the transaction.
Listing agent chokes the buyer's agent and puts the home back on the market as an approved short sale.And that is typically how you get short sale approval.
After the Short Sale is Approved and the Buyer Cancels
The buyers don't always cancel the transaction upon receipt of the short sale approval letter. Often the buyer is still interested in buying the home but cancels for other reasons. Many real estate contracts bestow upon buyers certain rights of inspection and contract contingencies, which give the buyer the right to walk away. Here are other reasons a buyer may cancel an approved short sale:
Home needs too many repairs and the bank won't pay for repairs.
The appraisal came in low, perhaps due to HVCC, and the bank may refuse to approve a lower sales price.
The buyer does not qualify for the loan and is unable to satisfy the lender's funding conditions.
Whether a New Buyer Can Close on the Approved Short Sale
Generally, a new buyer's offer would have to match exactly to the terms of the short sale approval letter, but that typically works only if the approval letter does not name a specific buyer.
If the approval letter is specific to a buyer, then the short sale listing agent may need to request a new short sale approval letter. Depending on the bank, requesting a new short sale approval letter could very well start the entire short sale process over from scratch.
To close on the existing approval letter, the following would need to take place:
Terms of the new offer must match the offer that was approved and be submitted at the same approved sales price.
The buyer must close by the date specified in the short sale approval letter, an extension may be required or you may be required to pay a "per diem penalty".

California City

California City is a nice place to live, work, play and raise our families. I lived here since 1985 and at that time there was only 3,400 people and one elementary school, we now have over 14,000 people 2 elementary schools, a middle school and a new high school. Cerro Coso Community College recently closed escrow on 22 acres to build a new Communtity Collge, so something is happenning here. Every weekend thousands of dirt bikers, Off Highway Vehicle (OHV) owners come here with their families in their big rigs and toy haulers to enjoy our little community, so we are not the Ghost Town that a lot of you describe. For more information go to www.ilovecaliforniacity.com or www.californiacity.com and see for yourselves. Thanks and have a nice day.