Awesome, awesome story. Very independent view focusing on selling your home. The author of the story tends to side opposite the full service broker at times. Not this time. Let's hear it for full service brokers (like myself)!
Sellers who skip brokers may be losing their edge
Lew Sichelman, United Feature SyndicatePublished March 5, 2006
This is "The Case of the Missing 10 Percent." It's a tale of lost millions, and it stars a cast of thousands--the thousands of owners who sell their houses without professional help.It seems that in their desire to save the 5 to 7 percent fee that agents charge for their services, FSBOs--as in for sale by owners--get 16 percent less than owners of comparable houses who put the transaction into the hands of an experienced agent, according to a survey by the National Association of Realtors.
Colby Sambrotto of ForSaleByOwner.com, an online marketplace where do-it-yourselfers list their properties and pick up valuable tips on going it alone, disputes that figure. "It just doesn't jibe with our experience," he said."We haven't put together a big study like [NAR's]," Sambrotto conceded. "But we ask all our sellers if they were successful, and 65 percent say they were. And we ask if they sold at or near their selling price, and 85 percent say they do."
But the 1.2 million-member NAR says it has the research to back up its claim. In what it calls the "largest and most authoritative" survey about how people buy and sell houses, a poll of 7,813 recent buyers and sellers through county deed records found that the median price achieved by sellers with agents was $230,000 versus $198,200 for sellers without agents.That's a difference of nearly $32,000, or 16 percent, with no significant differences between the types of homes sold.
NAR isn't alone when it says the desire to save the commission can backfire on sellers. Research by two University of Texas instructors found sellers realize little net gain when they turn to limited-service agents to perform some--but not all--the tasks needed to bring a contract to closing.The study found limited-service listings sold for 1.7 percent less than full-service listings and took 17.1 percent longer to sell. Additional research may be warranted, said James Ford, a lecturer in the College of Business at the University of Texas at San Antonio, and Ron Rutherford, a professor of finance. But for now, they say, it seems that limited-service brokerage offers "no dollar advantage."Of course, not everyone does worse in the attempt to go it alone. At the top of the market, where even fixer-uppers are selling within hours, it's tough for sellers to make a mistake.
But forget for a moment that NAR's findings might be seen as self-serving. For argument's sake, let's say the Realtors are right, that in the effort to save 6 percent--the reason cited most frequently by what NAR calls "unrepresented sellers" for selling their homes themselves--sellers lose 16 percent.The mystery here is this: If you figure that would-be buyers automatically knock 6 percent off their offers to FSBOs because they know there's at least that much fat in their asking price, where goes the remaining 10 percent?One glaring clue appears to be the inability of FSBOs to market their houses as widely or as professionally as, well, the professionals.
Nearly two-thirds of the unrepresented sellers in the Realtors' study used yard sales to alert would-be buyers that their homes were on the market. And almost half used word-of-mouth. Some also advertised in their newspapers or for-sale-by-owner magazines. A third held open houses, and a small number used direct mail.These are all good tools. But fewer than one in five listed his or her home on the Internet, either with its own Web site or on one such as ForSaleByOwner.com. Yet, the NAR study found that three of four buyers--77 percent--went house hunting on the Web. So go-it-alone house peddlers are missing a big part of the market.Virtually everyone who uses the Internet to house hunt is in the game, the survey found. They're not tire kickers; they're actively looking for properties for sale. And they want photos, detailed property information, virtual tours, interactive maps and neighborhood information before they make that first phone call or hop in the car.Internet users in the survey visited more houses than nonusers--a median of 11 versus 6, with 1 in 10 touring at least 25 properties before making a decision. And once they jumped behind the wheel, three of four went to see something that caught their attention while online.Interestingly, the sites used most frequently by home searchers are controlled by brokers. Realtor.com, NAR's official site, was visited most often, followed by the sites operated by local multiple-listing services, real-estate companies and real-estate agents.
Of course, to list a property on these sites, a seller must sign up with a broker, a full-service office at full commission or a discount firm that charges a smaller fee.FSBOs in the NAR survey also said they had more difficulty in completing the necessary paperwork, preparing their homes for the market and setting the price than they did in attracting buyers. It's hard to see how handling the paperwork affects the selling price, but staging the house so prospects see it in its best light and determining the correct asking price can have a profound effect.
Face it, many folks don't know how to make their homes show well. They fail to remove the clutter, for example, or put away all those personal items that distract visitors. Mostly, though, they cannot view their places as the commodities they become once they are on the market. To them, the house is wonderful as it is, so they don't look at it through a buyer's eyes.If there is a fatal mistake, though, it's probably that FSBOs don't price their properties correctly. Sambrotto contends they tend to price their houses too high. But too high or too low, do-it-yourselfers simply don't have the resources to determine a fair asking price.While there are a number of Internet sites--Sambrotto's is one--with valuation tools to help owners determine what their homes are worth, most agents have the best tool of all--the multiple-listing service.Agents aren't always right. Indeed, they can misread the market too. But they have a sense of the market that nonprofessionals can't match.
Monday, March 06, 2006
Wednesday, March 01, 2006
EXTRA EXTRA, get your "off market properties"!
Just about every client I work with sends me properties they found on some web site here or there. I think it's great they are engaged in the house hunt. And sometimes, the client will find their perfect place surfing the internet or looking in the paper. That is, the house or condo is still on the market and we eventually write a contratc to purchase the home.
This is the most positive way to work together. While I'm looking, my client is looking, and the right place will come along. However, many times a client gets their hopes up about the perfect home they found on a website and they wonder how I missed it. And, I've run searches in that exact area every day.
The truth is, much of the property information on random web sites and in the newspaper is outdated or lags behind "real time". The properties found by clients are many times sold or have been under contract. Many lack major features important to the client, but this data is missing from the information they saw.
Beyond market knowlege, negotiating skills, scheduling and transaction management, a Realtor's value is in the immense time spent on researching properties that are right for the client. I spend a crazy amount of time, for example, searching for a two bedroom condo with the type of outdoor space and price point that will satisfy my particular client's needs. There are literally hundreds of condos out there that sound good from some ad, but will not fit the bill when it comes to the client's values. A good Realtor will know this and only choose the best for your showings.
Anyone can look at newspaper ads or search properties on the Internet. In fact the Internet is supposed to eliminate the need of real esate agents completely. The above process however is much more time cosuming and much more inaccurate than most can imagine. For example, when searching properties totally on your own, and without professional resources, there is a time lapse that may let the perfect home slip away. The Sunday paper ad could be for a home that sold Wednesday during the week! I'm able to quickly research a property to determine it's status with real time data and just as quickly identify a similar property that just hit the market.
BUT WHAT ABOUT "OFF MARKET" PROPERTIES?
I'm not only searching the thousands of "on market" properties available at my finger tips through advanced research and professional data, but I'm also searching "off market" properties as well.
Off market properties can be discovered from inside information I have about a property a seller may list in the coming weeks. Even better, and cooler for the really good Realtors, off market properties can be had even when the owner doesn't know they're property has a buyer!
For example, I met some folks at an open house. The guys signed in with their home address and took a look around at the gorgeous single family home my brokergae is listing. I hardly spoke to them due to the busy nature of the open house that day. After the open house, I drove by the address on the card the guys filled out and found that the place was a very well kept, small, single family home. That same day I met a couple who is trying to sell their townhome in order to move up into a small single family home. Do you see where I'm going with this?
With a couple phone calls, I had arranged for the townhome sellers to view the home of the guys, even though they did not have it on the market! The guys were flattered. They were only thinking of putting their house on the market to find a bigger place, but were afraid to go through the home sale process. By finding them a buyer for their "off market" property, I eliminated the most stressful part of selling a home---opening it up to the world and wondering what will happen! Plus, the townhome couple had first crack at a great place they really liked; without competition.
So, before you go it alone, give me a call and find out how much it helps to have the research and representation on both the buying side and the selling side.
This is the most positive way to work together. While I'm looking, my client is looking, and the right place will come along. However, many times a client gets their hopes up about the perfect home they found on a website and they wonder how I missed it. And, I've run searches in that exact area every day.
The truth is, much of the property information on random web sites and in the newspaper is outdated or lags behind "real time". The properties found by clients are many times sold or have been under contract. Many lack major features important to the client, but this data is missing from the information they saw.
Beyond market knowlege, negotiating skills, scheduling and transaction management, a Realtor's value is in the immense time spent on researching properties that are right for the client. I spend a crazy amount of time, for example, searching for a two bedroom condo with the type of outdoor space and price point that will satisfy my particular client's needs. There are literally hundreds of condos out there that sound good from some ad, but will not fit the bill when it comes to the client's values. A good Realtor will know this and only choose the best for your showings.
Anyone can look at newspaper ads or search properties on the Internet. In fact the Internet is supposed to eliminate the need of real esate agents completely. The above process however is much more time cosuming and much more inaccurate than most can imagine. For example, when searching properties totally on your own, and without professional resources, there is a time lapse that may let the perfect home slip away. The Sunday paper ad could be for a home that sold Wednesday during the week! I'm able to quickly research a property to determine it's status with real time data and just as quickly identify a similar property that just hit the market.
BUT WHAT ABOUT "OFF MARKET" PROPERTIES?
I'm not only searching the thousands of "on market" properties available at my finger tips through advanced research and professional data, but I'm also searching "off market" properties as well.
Off market properties can be discovered from inside information I have about a property a seller may list in the coming weeks. Even better, and cooler for the really good Realtors, off market properties can be had even when the owner doesn't know they're property has a buyer!
For example, I met some folks at an open house. The guys signed in with their home address and took a look around at the gorgeous single family home my brokergae is listing. I hardly spoke to them due to the busy nature of the open house that day. After the open house, I drove by the address on the card the guys filled out and found that the place was a very well kept, small, single family home. That same day I met a couple who is trying to sell their townhome in order to move up into a small single family home. Do you see where I'm going with this?
With a couple phone calls, I had arranged for the townhome sellers to view the home of the guys, even though they did not have it on the market! The guys were flattered. They were only thinking of putting their house on the market to find a bigger place, but were afraid to go through the home sale process. By finding them a buyer for their "off market" property, I eliminated the most stressful part of selling a home---opening it up to the world and wondering what will happen! Plus, the townhome couple had first crack at a great place they really liked; without competition.
So, before you go it alone, give me a call and find out how much it helps to have the research and representation on both the buying side and the selling side.
Tuesday, February 28, 2006
MEET and GREET WINE TASTING MARCH 22nd!
I'm planning another fun way to thank my past and present clients for their business. It is also a night where those thinking about buying or selling a home may come and enjoy conversation with those who have been through the process.
The last meet and greet I threw was a hit. Imagine a warm September night, gorgeous patio setting, a personal wine sommelier, great Mexican food and interesting conversation. Sounds like a nice vacation for some. Actually, it was the scene of my last wine tasting to thank clients and meet new prospective home buyers and sellers. A good friend of mine donated his entire outdoor patio of the Mayan Palace Restaurant in Lincoln Park. The evening was an excellent chance for people to ask me questions, discuss the buying process with a real estate attorney and mortgage broker, and to just have a fun night out.
I hate to do mailings or use gimmicks to stay in touch with clients or meet new people. I already have a good relationship with my clients and we enjoy the chance to catch up once in a while. This is also the best way I can think of to have people, that are curious about owning, come and ask questions. Most of the fear of working with real estate professionals comes from misundersatnding the services provided and roles everyone plays.
The next event will be held at a close friend's beautiful 4 bedroom duplex condo situated along the Southport corridor. It's a terrific home to entertain deserving guests. An intimate evening of wine, appetizers, and easy going discussion about buying and selling a home in Chicago. Keep an eye out for invites or just give me an email or call if you would like to attend. Space is limited!
Wine Tasting to be held March 22nd, 7PM to 10PM. Call or email for details:
773-510-1597
erojas@chemail.com
The last meet and greet I threw was a hit. Imagine a warm September night, gorgeous patio setting, a personal wine sommelier, great Mexican food and interesting conversation. Sounds like a nice vacation for some. Actually, it was the scene of my last wine tasting to thank clients and meet new prospective home buyers and sellers. A good friend of mine donated his entire outdoor patio of the Mayan Palace Restaurant in Lincoln Park. The evening was an excellent chance for people to ask me questions, discuss the buying process with a real estate attorney and mortgage broker, and to just have a fun night out.
I hate to do mailings or use gimmicks to stay in touch with clients or meet new people. I already have a good relationship with my clients and we enjoy the chance to catch up once in a while. This is also the best way I can think of to have people, that are curious about owning, come and ask questions. Most of the fear of working with real estate professionals comes from misundersatnding the services provided and roles everyone plays.
The next event will be held at a close friend's beautiful 4 bedroom duplex condo situated along the Southport corridor. It's a terrific home to entertain deserving guests. An intimate evening of wine, appetizers, and easy going discussion about buying and selling a home in Chicago. Keep an eye out for invites or just give me an email or call if you would like to attend. Space is limited!
Wine Tasting to be held March 22nd, 7PM to 10PM. Call or email for details:
773-510-1597
erojas@chemail.com
Monday, February 27, 2006
Preparing your home for sale
Great story from Inman news describing prepping your home for sale. Call me to to discuss any of the tips.
Monday, February 27, 2006 Inman News]]> Sellers often underestimate the time is will take to properly prepare their home for sale. For this reason, it's wise to start home-sale preparations months before you actually want to put your home on the market.
For scheduling purposes, it helps to work backwards from the date that you'd ideally like to move. Let's say you want to be in a new home by June 1. There are three big tasks that need to be accomplished in order to make this happen.
One is preparing the home for sale. The second is marketing the home to find a buyer. And the third is to work through contract contingencies and close the sale.
Most homes benefit from de-cluttering, furniture rearranging, cleaning, painting and updating outdated floor coverings and light fixtures. These improvements cost relatively little and offer a good return on the investment.
You can sell a home in any condition; there is always a market for fixer-uppers. However, buyers pay more for homes they can move right into without having to do work. With more competition from other sellers who want to take advantage of a low-interest-rate market, buyers will have the luxury of choice.
A good real estate agent can help you map out fix-up-for-sale projects. Your agent can also put you in touch with reliable inspectors, contractors and stagers to assist with these endeavors. As soon as you figure out the scope of the work, you can schedule a marketing date.
The next step it to figure out how long it will take to find a buyer. Ask your real estate agent to provide you with the listing and pending sale dates for listings similar to your home that recently sold in your neighborhood. This information should be available through the Multiple Listing Service.
The time it takes to find a buyer can vary significantly from one area to the next. Be sure to use the most recent comparable sales information. The market is in flux. In general, it's taking longer for listings to go to pending now than it did a year ago.
The third element of the home-sale process is closing the deal. You have some control over this. The closing date is negotiable.
When interest rates are rising, you could find buyers who want to close quickly in order to protect an interest-rate commitment. Sellers often agree to cooperate with a fast sale in the interest of closing the sale. Sellers who aren't ready to move out by that date should ask the buyer for permission to rent back their home after closing. Although the closing date is negotiable, a typical closing date is 30 days from contract acceptance.
After collecting the above information, you're prepared to schedule your sale. Let's say you estimate it will take 45 days to get your home ready to sell, 30 days to find a buyer and 30 days to close the deal. This means you should start the prep work by Feb. 15 for an April 1 list date, a May 1 pending sale date and a June 1 closing. It's wise to build in a little wiggle room into your plan to account for unforeseen events.
Occasionally a home sale doesn't make it to closing. Often this is due to disputes over who pays for defects that arise during the buyer's inspections. This can set your schedule back while you find another buyer or work out the disputes.
THE CLOSING: You can minimize the risk of a deal falling apart by getting pre-sale inspections before you start the fix-up work. If money permits, it's wise to correct some defects before marketing your home.
Source: Inman News and Chicago Association of Realtors
Monday, February 27, 2006 Inman News]]> Sellers often underestimate the time is will take to properly prepare their home for sale. For this reason, it's wise to start home-sale preparations months before you actually want to put your home on the market.
For scheduling purposes, it helps to work backwards from the date that you'd ideally like to move. Let's say you want to be in a new home by June 1. There are three big tasks that need to be accomplished in order to make this happen.
One is preparing the home for sale. The second is marketing the home to find a buyer. And the third is to work through contract contingencies and close the sale.
Most homes benefit from de-cluttering, furniture rearranging, cleaning, painting and updating outdated floor coverings and light fixtures. These improvements cost relatively little and offer a good return on the investment.
You can sell a home in any condition; there is always a market for fixer-uppers. However, buyers pay more for homes they can move right into without having to do work. With more competition from other sellers who want to take advantage of a low-interest-rate market, buyers will have the luxury of choice.
A good real estate agent can help you map out fix-up-for-sale projects. Your agent can also put you in touch with reliable inspectors, contractors and stagers to assist with these endeavors. As soon as you figure out the scope of the work, you can schedule a marketing date.
The next step it to figure out how long it will take to find a buyer. Ask your real estate agent to provide you with the listing and pending sale dates for listings similar to your home that recently sold in your neighborhood. This information should be available through the Multiple Listing Service.
The time it takes to find a buyer can vary significantly from one area to the next. Be sure to use the most recent comparable sales information. The market is in flux. In general, it's taking longer for listings to go to pending now than it did a year ago.
The third element of the home-sale process is closing the deal. You have some control over this. The closing date is negotiable.
When interest rates are rising, you could find buyers who want to close quickly in order to protect an interest-rate commitment. Sellers often agree to cooperate with a fast sale in the interest of closing the sale. Sellers who aren't ready to move out by that date should ask the buyer for permission to rent back their home after closing. Although the closing date is negotiable, a typical closing date is 30 days from contract acceptance.
After collecting the above information, you're prepared to schedule your sale. Let's say you estimate it will take 45 days to get your home ready to sell, 30 days to find a buyer and 30 days to close the deal. This means you should start the prep work by Feb. 15 for an April 1 list date, a May 1 pending sale date and a June 1 closing. It's wise to build in a little wiggle room into your plan to account for unforeseen events.
Occasionally a home sale doesn't make it to closing. Often this is due to disputes over who pays for defects that arise during the buyer's inspections. This can set your schedule back while you find another buyer or work out the disputes.
THE CLOSING: You can minimize the risk of a deal falling apart by getting pre-sale inspections before you start the fix-up work. If money permits, it's wise to correct some defects before marketing your home.
Source: Inman News and Chicago Association of Realtors
Tuesday, February 21, 2006
There are Three Words in Real Estate; Price, Price, and Price
As spring approaches, I have found myself on more and more home listing appointments. Any agent will over price your home to satisfy your desire for profit. This is called, "buying the listing". However, seller beware. I'm up front in my philosophy for home pricing and incorporate the experience of my entire brokerage to enhance a timely sale. We discuss the prices that will sell your home and tell you why. Far from an exact science, we look at the market trends, and more importantly, through the eyes of the buyer.
Because, let's face it, it doesn't matter waht I think the home should sell for or what you think the home should sell for. It only matters what that one buyer in the market place-- that will actually purchase your home-- thinks it's worth. Call me and ask me more. But for now, enjoy the column below of which does a nice job discussing the basics of selling a home.
Monday, February 20, 2006 Inman News]]> There are plenty of home buyers intent on buying while they can still lock in a relatively low mortgage rate. So, the 2006 housing market should present good opportunities for sellers who understand how to maximize profit in this new, more balanced, selling environment.
The first step is to start thinking like a buyer, not a seller. Although buyers are anxious to buy before rates rise further, they know that the appreciation rate is subsiding.
When the market is rising quickly, buyers are less concerned about overpaying because they're sure they'll recoup the excess payment within a few months because of robust appreciation. This was the psychology of last year's buyer. Now, buyers are much more concerned about value.
For this reason, pricing is more important than ever, as is property condition. Buyers are less forgiving of defects. So, ideally, you should fix defects before you put your home on the market.
Listings are most salable when they're new on the market. To maximize your chances, your home not only needs to be priced right and properly prepared for sale, you also need a comprehensive marketing plan. You want to make sure that information about your listing reaches as many potential buyers as possible.
So, pick your listing agent carefully. A prospective listing agent should provide you with a marketing plan. Ask to see samples of the marketing materials that will be used to promote your home. Make sure that your home will receive Internet exposure. Over 70 percent of today's home buyers start their home searches on the Internet.
An ad on the Internet isn't enough, though. Buyers don't look at listings that don't have photos. You can gain an edge on the competition if photos of your home are on the Internet as soon as your home is opened up to the market.
It's important to have a good working relationship with your agent. For this reason, many sellers who had a positive experience buying their home decide to list with the agent who represented them as buyers. This is often a good strategy. Just make sure that you find out how your buyer's agent works as a seller's agent. Some agents are equally good at both, but some aren't.
HOME SELLER TIP: In most cases, it's not wise to work with an agent who is from outside of the local market area. Few agents can give good service if they are spreading themselves too thin. A bad marketing effort can result in a lower sale price.
Recently, an agent from out of area listed a property in Oakland, Calif. It was never adequately exposed to the local Oakland market. It finally sold after several price reductions. The buyers got a good deal, not the sellers.
Your aim is to sell for the highest price possible. Some sellers, who are mentally stuck in last year's market, think it's a good idea to list at a price that's way under market value to generate a bidding contest and send the price higher. This strategy could backfire on you this year. If you don't receive multiple offers--and most sellers aren't these days--you will have a hard time negotiating a buyer up from a low price.
Don't list for less than a price you can accept if you don't receive multiple offers. But, keep in mind that overpriced listings won't sell.
THE CLOSING: An agent who's active in your area and whose listings are selling will be able to advise you about an effective list price for your home.
Because, let's face it, it doesn't matter waht I think the home should sell for or what you think the home should sell for. It only matters what that one buyer in the market place-- that will actually purchase your home-- thinks it's worth. Call me and ask me more. But for now, enjoy the column below of which does a nice job discussing the basics of selling a home.
Monday, February 20, 2006 Inman News]]> There are plenty of home buyers intent on buying while they can still lock in a relatively low mortgage rate. So, the 2006 housing market should present good opportunities for sellers who understand how to maximize profit in this new, more balanced, selling environment.
The first step is to start thinking like a buyer, not a seller. Although buyers are anxious to buy before rates rise further, they know that the appreciation rate is subsiding.
When the market is rising quickly, buyers are less concerned about overpaying because they're sure they'll recoup the excess payment within a few months because of robust appreciation. This was the psychology of last year's buyer. Now, buyers are much more concerned about value.
For this reason, pricing is more important than ever, as is property condition. Buyers are less forgiving of defects. So, ideally, you should fix defects before you put your home on the market.
Listings are most salable when they're new on the market. To maximize your chances, your home not only needs to be priced right and properly prepared for sale, you also need a comprehensive marketing plan. You want to make sure that information about your listing reaches as many potential buyers as possible.
So, pick your listing agent carefully. A prospective listing agent should provide you with a marketing plan. Ask to see samples of the marketing materials that will be used to promote your home. Make sure that your home will receive Internet exposure. Over 70 percent of today's home buyers start their home searches on the Internet.
An ad on the Internet isn't enough, though. Buyers don't look at listings that don't have photos. You can gain an edge on the competition if photos of your home are on the Internet as soon as your home is opened up to the market.
It's important to have a good working relationship with your agent. For this reason, many sellers who had a positive experience buying their home decide to list with the agent who represented them as buyers. This is often a good strategy. Just make sure that you find out how your buyer's agent works as a seller's agent. Some agents are equally good at both, but some aren't.
HOME SELLER TIP: In most cases, it's not wise to work with an agent who is from outside of the local market area. Few agents can give good service if they are spreading themselves too thin. A bad marketing effort can result in a lower sale price.
Recently, an agent from out of area listed a property in Oakland, Calif. It was never adequately exposed to the local Oakland market. It finally sold after several price reductions. The buyers got a good deal, not the sellers.
Your aim is to sell for the highest price possible. Some sellers, who are mentally stuck in last year's market, think it's a good idea to list at a price that's way under market value to generate a bidding contest and send the price higher. This strategy could backfire on you this year. If you don't receive multiple offers--and most sellers aren't these days--you will have a hard time negotiating a buyer up from a low price.
Don't list for less than a price you can accept if you don't receive multiple offers. But, keep in mind that overpriced listings won't sell.
THE CLOSING: An agent who's active in your area and whose listings are selling will be able to advise you about an effective list price for your home.
Thursday, February 16, 2006
Your Real Estate Team
It's no secret why some real estate transactions go smoother than others. There will always be some un-for- seen bumbs, but your real estate team should be prepared to advocate on your behalf. Ask me about some basics concerning the home search and contract writing. For now, enjoy this well written column about the home buying process.
Monday, February 13, 2006 Inman News]]> Don't underestimate the time it takes to buy a home. Even if you work with a top-notch real estate agent, there are myriad details that need to be attended to if you want to make sure that you buy the right house at the right price.
While on the subject of working with an agent, don't even consider working with someone you don't trust. Mutual respect and good rapport are necessary elements of a good working relationship with a real estate agent. If the chemistry isn't there, find an agent with whom you feel comfortable.
You'll have the best results if you choose your team of real estate professionals carefully--not just your agent, but your mortgage broker or lender, home inspector, attorney and surveyor (in areas where you need them), homeowner's insurance agent, and title and closing officer. Ask your real estate agent or friends who recently bought or sold a home for recommendations.
You should try to work with the best people in the business. This doesn't mean that you need to work with the person who does the most business. Ideally, you want to establish working relationships with people who are reliable, professional, experienced, motivated and trustworthy.
HOUSE HUNTING TIP: Even though you have a team of professionals to rely on for advice and assistance, never forget that you are the decision-maker. If you can afford to buy a home, you're no doubt busy generating the income to make it possible. Delegating tasks to your team of real estate professionals can ease your workload considerably. But, the decisions about important issues like what you buy, the price you pay, the home inspector you hire, and the kind of financing you use, should be yours.
Educating yourself about the market in the area(s) where you want to buy is one of the most productive uses of your time. There's nothing like pounding the pavement first hand to give you a feeling of confidence about the neighborhood in which you'll live and the current market value of homes in that area. The real estate market is constantly changing. Comparable sale statistics from six months ago may no longer reflect current market values.
Don't be afraid to make an offer in competition. Last year, if you ended up bidding against other buyers, you were almost assured of paying over the asking price. In today's market, multiple offers don't necessarily send the price higher. Set your limit and take a stab. There's more to an offer than price. If the other buyer's offer is contingent on the sale of their home and your offer isn't, you could be the winner even if your price isn't the highest.
Most bad home-buying stories have one thing in common: the buyers didn't complete their due-diligence inspections. It might have seemed like a good idea to buy without the benefit of inspections in the red-hot market of yesterday. How could you lose with home prices appreciating at a double-digit pace?
Some buyers did lose. Now that the home-buying environment has changed, inspections are absolutely essential, as are further inspections, if they're indicated.
Try to avoid buying a home for the wrong reasons. It's tempting to want to buy because that's what all your friends are doing. But, if your personal or professional life is unsettled, it's best to wait until you can make a long-term commitment.
THE CLOSING: The rate of home-price appreciation is likely to wane after many years of robust increases. So, if you have to sell soon after buying, you could lose money.
Monday, February 13, 2006 Inman News]]> Don't underestimate the time it takes to buy a home. Even if you work with a top-notch real estate agent, there are myriad details that need to be attended to if you want to make sure that you buy the right house at the right price.
While on the subject of working with an agent, don't even consider working with someone you don't trust. Mutual respect and good rapport are necessary elements of a good working relationship with a real estate agent. If the chemistry isn't there, find an agent with whom you feel comfortable.
You'll have the best results if you choose your team of real estate professionals carefully--not just your agent, but your mortgage broker or lender, home inspector, attorney and surveyor (in areas where you need them), homeowner's insurance agent, and title and closing officer. Ask your real estate agent or friends who recently bought or sold a home for recommendations.
You should try to work with the best people in the business. This doesn't mean that you need to work with the person who does the most business. Ideally, you want to establish working relationships with people who are reliable, professional, experienced, motivated and trustworthy.
HOUSE HUNTING TIP: Even though you have a team of professionals to rely on for advice and assistance, never forget that you are the decision-maker. If you can afford to buy a home, you're no doubt busy generating the income to make it possible. Delegating tasks to your team of real estate professionals can ease your workload considerably. But, the decisions about important issues like what you buy, the price you pay, the home inspector you hire, and the kind of financing you use, should be yours.
Educating yourself about the market in the area(s) where you want to buy is one of the most productive uses of your time. There's nothing like pounding the pavement first hand to give you a feeling of confidence about the neighborhood in which you'll live and the current market value of homes in that area. The real estate market is constantly changing. Comparable sale statistics from six months ago may no longer reflect current market values.
Don't be afraid to make an offer in competition. Last year, if you ended up bidding against other buyers, you were almost assured of paying over the asking price. In today's market, multiple offers don't necessarily send the price higher. Set your limit and take a stab. There's more to an offer than price. If the other buyer's offer is contingent on the sale of their home and your offer isn't, you could be the winner even if your price isn't the highest.
Most bad home-buying stories have one thing in common: the buyers didn't complete their due-diligence inspections. It might have seemed like a good idea to buy without the benefit of inspections in the red-hot market of yesterday. How could you lose with home prices appreciating at a double-digit pace?
Some buyers did lose. Now that the home-buying environment has changed, inspections are absolutely essential, as are further inspections, if they're indicated.
Try to avoid buying a home for the wrong reasons. It's tempting to want to buy because that's what all your friends are doing. But, if your personal or professional life is unsettled, it's best to wait until you can make a long-term commitment.
THE CLOSING: The rate of home-price appreciation is likely to wane after many years of robust increases. So, if you have to sell soon after buying, you could lose money.
House Keeping for a Quick Sale
When viewing properties today with a client, we were disappointed to find several condo units generally unfit for showing. Mildew in bathrooms, scuffed walls with nail holes, bad lighting etc... Last week, the same thing happened with another client... we walked in to an unappealing condo and were immediately turned off. Although vacant, the previous owner left traces of their pets, the carpets were stained and the walls marked up. In this case, the unit was only 2-3 years old but looked 10 easy! These particular units all had one thing in common; they may have been candidates if they just had a good cleaning, and perhaps, a fresh coat of neutral paint before the showings began.
What are these Realtors, sales agents and sellers thinking? Marketing studies show time and time again that the majority of the consumer market will be turned off by a dumpy looking unit--no matter if the price is adjusted to properly reflect its condition. But specifically, I'm talking about condos that are in generally good condition, but are $1000-$3000 away from catching a much better price and faster sale. Consumers must leave with a good impression the first time they see the home!
There are several easy fixes that will make a unit show better and sell faster. I'm not talking about the fancy designer recommendations and the army of helpers home sellers get on Home and Garden TV. I'm talking about common sense. As a Realtor, I have to know what improvements will help sell a home, and more importantly, I have to be frank with my client/seller. There is no exact science suggesting what will work in every occasion, but in a competitive market I must demand certain improvements and perform some basic services in the interest of my client.
The basics? Clean carpet and floors, patched and painted walls, CLEAN BATHROOMS, good scent and anything in ones power to leave a good impression. Every situation is different. Some units are vacant and some are fully furnished and will be until sale. But a Realtor must make recommendations in each case if he/she is worth working with. I'll go out on a limb every time with my clients and suggest the improvements before taking a listing, rather than think a buyer will "want to do the changes themselves". It's a mute point, they were already turned off and chose another unit!
A BIG BIG TURN OFF for clients is mildew in the bathrooms. It leaves the client thinking the previous owners did not care for the home. Even if your not selling your place just yet, the following advice will help you improve your bathrooms and kithchens, leaving them more pleasant for everyone.
MILDEW on CAULK?
Wednesday, February 15, 2006 Inman News]]>
Q: I remodeled my kitchen three years ago, upgrading to granite counters and a stainless steel sink, mounted from below. The contractor put caulk around the sink to seal the gap between it and the counter. Now, there is quite a bit of black mold on the caulk.
What can I do to get rid of the mold? Should I get the sink re-caulked?
A: We think what you describe as mold is more commonly known as mildew, a fungus that appears as a dull black mold, often with a musty smell. It thrives in hot, humid places: your kitchen qualifies.
The best way to remove mildew is to eliminate dampness and improve ventilation. Since eliminating water is impossible in a kitchen sink, the best way to attack the mildew is to kill it.
With any luck, getting rid of the mildew around your sink should be easy. You can kill it by applying chlorine bleach--any brand will do--full-strength to the caulk.
Use a small sponge to apply the bleach and be careful not to get it on you, your clothes or anything else you don't want bleached.
Because you remodeled your kitchen fairly recently, we don't think the mildew has had enough time to penetrate the caulk. It's likely that what you see is superficial. A good dousing with bleach will make it disappear like magic; no re-caulking necessary.
But if we're wrong and you have to replace the caulk, there's good news and bad news. The good news is that a re-caulk job is cheap and you can do it yourself. The bad news is that you have to do it at all after three years.
Dig the old caulk out with a chisel or the tip of a flat-head screwdriver. Once the old caulk is totally removed, clean the surface. Your stainless steel sink won't take kindly to being cleaned with an abrasive like an SOS pad. Use a Scotch-Brite pad.
After the surface is thoroughly dry, it's time to apply the new caulk. The best caulk for use around a sink is a tub and tile caulk. Any hardware store will have it. Caulk comes in different colors. If you aren't able to find one that suits you, consider using clear silicone caulk.
For a professional job, apply masking tape on each side of the joint to ensure a straight and uniform line. Apply the caulk in an even flow. Then dip your finger in water (mineral spirits if you're using a silicone) and run it along the seam to get a smooth finish.
Wait a few minutes until the caulk has set a little, then pull the masking tape away from the joint. The wait ensures that the caulk won't smear. If you let it dry thoroughly before removing the tape, you risk pulling the caulk out with the tape.
Take your time, and with a little care, you'll have a perfectly clean, re-caulked and good-as-new kitchen sink. To prevent having to repeat the process, do an occasional cleanup with chlorine bleach to nip mildew discoloration in the bud.
By the way, chlorine bleach also works great to get rid of mildew in tiled showers. No need for special products. Full strength in a spray bottle is the way to go.
What are these Realtors, sales agents and sellers thinking? Marketing studies show time and time again that the majority of the consumer market will be turned off by a dumpy looking unit--no matter if the price is adjusted to properly reflect its condition. But specifically, I'm talking about condos that are in generally good condition, but are $1000-$3000 away from catching a much better price and faster sale. Consumers must leave with a good impression the first time they see the home!
There are several easy fixes that will make a unit show better and sell faster. I'm not talking about the fancy designer recommendations and the army of helpers home sellers get on Home and Garden TV. I'm talking about common sense. As a Realtor, I have to know what improvements will help sell a home, and more importantly, I have to be frank with my client/seller. There is no exact science suggesting what will work in every occasion, but in a competitive market I must demand certain improvements and perform some basic services in the interest of my client.
The basics? Clean carpet and floors, patched and painted walls, CLEAN BATHROOMS, good scent and anything in ones power to leave a good impression. Every situation is different. Some units are vacant and some are fully furnished and will be until sale. But a Realtor must make recommendations in each case if he/she is worth working with. I'll go out on a limb every time with my clients and suggest the improvements before taking a listing, rather than think a buyer will "want to do the changes themselves". It's a mute point, they were already turned off and chose another unit!
A BIG BIG TURN OFF for clients is mildew in the bathrooms. It leaves the client thinking the previous owners did not care for the home. Even if your not selling your place just yet, the following advice will help you improve your bathrooms and kithchens, leaving them more pleasant for everyone.
MILDEW on CAULK?
Wednesday, February 15, 2006 Inman News]]>
Q: I remodeled my kitchen three years ago, upgrading to granite counters and a stainless steel sink, mounted from below. The contractor put caulk around the sink to seal the gap between it and the counter. Now, there is quite a bit of black mold on the caulk.
What can I do to get rid of the mold? Should I get the sink re-caulked?
A: We think what you describe as mold is more commonly known as mildew, a fungus that appears as a dull black mold, often with a musty smell. It thrives in hot, humid places: your kitchen qualifies.
The best way to remove mildew is to eliminate dampness and improve ventilation. Since eliminating water is impossible in a kitchen sink, the best way to attack the mildew is to kill it.
With any luck, getting rid of the mildew around your sink should be easy. You can kill it by applying chlorine bleach--any brand will do--full-strength to the caulk.
Use a small sponge to apply the bleach and be careful not to get it on you, your clothes or anything else you don't want bleached.
Because you remodeled your kitchen fairly recently, we don't think the mildew has had enough time to penetrate the caulk. It's likely that what you see is superficial. A good dousing with bleach will make it disappear like magic; no re-caulking necessary.
But if we're wrong and you have to replace the caulk, there's good news and bad news. The good news is that a re-caulk job is cheap and you can do it yourself. The bad news is that you have to do it at all after three years.
Dig the old caulk out with a chisel or the tip of a flat-head screwdriver. Once the old caulk is totally removed, clean the surface. Your stainless steel sink won't take kindly to being cleaned with an abrasive like an SOS pad. Use a Scotch-Brite pad.
After the surface is thoroughly dry, it's time to apply the new caulk. The best caulk for use around a sink is a tub and tile caulk. Any hardware store will have it. Caulk comes in different colors. If you aren't able to find one that suits you, consider using clear silicone caulk.
For a professional job, apply masking tape on each side of the joint to ensure a straight and uniform line. Apply the caulk in an even flow. Then dip your finger in water (mineral spirits if you're using a silicone) and run it along the seam to get a smooth finish.
Wait a few minutes until the caulk has set a little, then pull the masking tape away from the joint. The wait ensures that the caulk won't smear. If you let it dry thoroughly before removing the tape, you risk pulling the caulk out with the tape.
Take your time, and with a little care, you'll have a perfectly clean, re-caulked and good-as-new kitchen sink. To prevent having to repeat the process, do an occasional cleanup with chlorine bleach to nip mildew discoloration in the bud.
By the way, chlorine bleach also works great to get rid of mildew in tiled showers. No need for special products. Full strength in a spray bottle is the way to go.
Wednesday, February 08, 2006
Positive Economic Forecast
A mortgage banker that has worked with several of my clients sent the following story to me. I appreciate all the information I can get. In December, I attended the Chicago Association of Realtors' Economic Forecast that preceeded the story below. We continue to see the Midwestern market as a good investment. More importantly to keep in mind, however, is that Chicago remains a great place to live and work. The decision to buy here should be based more on your lifestyle and values than purely economics (but positive numbers help!).
On Friday CNNMoney.com reported the latest 2006 housing price forecast from Fiserv Lending Solutions for 379 metro areas. This report projects declining prices in several metro areas that experienced huge growth in 2004-2005, including California, Florida, Las Vegas and New York metro areas. These markets saw price increases of up to 40% over the past year. No Midwest metro area is forecasted to experience a decline in prices. The Chicago-Naperville-Joliet metro area is projected to see a modest 0.6% growth in 2006. Projections for NW Indiana, SW Michigan and SE Wisconsin metro areas range between 3% and 7% growth. Here is the link to the full report with the forecast for all 379 areas. Check it out. http://money.cnn.com/2006/02/03/real_estate/
On Friday CNNMoney.com reported the latest 2006 housing price forecast from Fiserv Lending Solutions for 379 metro areas. This report projects declining prices in several metro areas that experienced huge growth in 2004-2005, including California, Florida, Las Vegas and New York metro areas. These markets saw price increases of up to 40% over the past year. No Midwest metro area is forecasted to experience a decline in prices. The Chicago-Naperville-Joliet metro area is projected to see a modest 0.6% growth in 2006. Projections for NW Indiana, SW Michigan and SE Wisconsin metro areas range between 3% and 7% growth. Here is the link to the full report with the forecast for all 379 areas. Check it out. http://money.cnn.com/2006/02/03/real_estate/
Tuesday, February 07, 2006
Mortgage Questions
Top 9 questions to ask when applying for a mortgage:
What is the interest rate on this mortgage?
What closing costs will be charged?
When can I lock in the interest rate?
Is there a prepayment penalty on this loan?
What is the minimum down payment?
What are the qualifying guidelines for this loan?
What documents do I have to provide?
How long will it take to process my application?
What might delay the approval of my loan?
Source: bankrate.com
Source: NAR's Information Central.Updated Feb. 2006
What is the interest rate on this mortgage?
What closing costs will be charged?
When can I lock in the interest rate?
Is there a prepayment penalty on this loan?
What is the minimum down payment?
What are the qualifying guidelines for this loan?
What documents do I have to provide?
How long will it take to process my application?
What might delay the approval of my loan?
Source: bankrate.com
Source: NAR's Information Central.Updated Feb. 2006
Sunday, February 05, 2006
Reflections on Hyde Park
I spent Saturday previewing condos in Hyde Park. The south side neighborhood is roughly located between 51st Street through 61st Street north to south and is bordered by Lake Michigan at the east and Washington Park on the west. Recently, several clients had expressed interest in the area due to the attractive prices and proximity to the University of Chicago main campus. So, a field trip was in order to make sure I was on top of things in this historic neighborhood. I was pleased with my re-acquaintance.
If you are unfamiliar with the area you are best served by surfing existing, excellent descriptions of Hyde Park- so I won't spend much time here discussing its history and evolution. My favorite site for a concise description and useful links is at Wikipedia: http://en.wikipedia.org/wiki/Hyde_Park,_Chicago
Or go to the Hyde Park Herald for news and local events updates at http://www.hpherald.com/
And of course there are many great and relevant student articles to be found http://maroon.uchicago.edu/
There are many varieties of living spaces in Hyde Park. Condo stock is good and competitive, making this a place to be aggressive in negotiation in order to find a bargain purchase.
First and foremost, there is an abundance of large, vintage condos on the market. For instance, I inspected a 1400 sq/Ft, 2 bedroom, 2 bath condo listed at $259, 000 with parking. This came out to only $185 per sq/Ft! It was steps from the U. of C. campus on one of the most beautiful streets I have seen in the city. This unit definitely needed some work, but for the price and location, it could be modernized and still be a bargain. There are many of these opportunities for vintage units-many in move in condition.
I also found newer construction, modern living spaces for very low prices. One particular loft building had great layouts and prices under $230K for 2 bed, 1 bath units at about 1050 sq/Ft. The assessments can look high, but with garage parking, gleaming wood floors, modern kitchens, elevators, gorgeous foyer, exercise room, and concrete construction for terrific insulation-your monthly payment is a bargain. Again, you located only blocks from U. of C. and 20 minutes to downtown.
There is also the full amenity "highrise on the lake" option if this suits your tastes.
Hyde park is dominated by a long standing local population and the University of Chicago. These are both pleasant aspects. The architecture and homes are breathtaking. It also has it's own quaint main drag, full of bookstores, restaurants, shopping and conveniences. It is truly a desirable place to walk and ride a bike rather than drive.
I'll be in Hyde Park quite a bit in the near future. It has become one of my favorite neighborhoods to recommend for first time buyers and current home owners looking for a change. Hyde Park definitely has a unique vibe while offering sophisticated college town living. Situated on the lake, offering affordable living, and boasting an established and refined attitude, Hyde Park is no longer a "secret" option for condo living in Chicago.
For questions about this, or any Chicago neighborhood, feel free to call me anytime at 773-975-2123 or email ERojas@CHEmail.com
The Realtor Deal with Eric Rojas
If you are unfamiliar with the area you are best served by surfing existing, excellent descriptions of Hyde Park- so I won't spend much time here discussing its history and evolution. My favorite site for a concise description and useful links is at Wikipedia: http://en.wikipedia.org/wiki/Hyde_Park,_Chicago
Or go to the Hyde Park Herald for news and local events updates at http://www.hpherald.com/
And of course there are many great and relevant student articles to be found http://maroon.uchicago.edu/
There are many varieties of living spaces in Hyde Park. Condo stock is good and competitive, making this a place to be aggressive in negotiation in order to find a bargain purchase.
First and foremost, there is an abundance of large, vintage condos on the market. For instance, I inspected a 1400 sq/Ft, 2 bedroom, 2 bath condo listed at $259, 000 with parking. This came out to only $185 per sq/Ft! It was steps from the U. of C. campus on one of the most beautiful streets I have seen in the city. This unit definitely needed some work, but for the price and location, it could be modernized and still be a bargain. There are many of these opportunities for vintage units-many in move in condition.
I also found newer construction, modern living spaces for very low prices. One particular loft building had great layouts and prices under $230K for 2 bed, 1 bath units at about 1050 sq/Ft. The assessments can look high, but with garage parking, gleaming wood floors, modern kitchens, elevators, gorgeous foyer, exercise room, and concrete construction for terrific insulation-your monthly payment is a bargain. Again, you located only blocks from U. of C. and 20 minutes to downtown.
There is also the full amenity "highrise on the lake" option if this suits your tastes.
Hyde park is dominated by a long standing local population and the University of Chicago. These are both pleasant aspects. The architecture and homes are breathtaking. It also has it's own quaint main drag, full of bookstores, restaurants, shopping and conveniences. It is truly a desirable place to walk and ride a bike rather than drive.
I'll be in Hyde Park quite a bit in the near future. It has become one of my favorite neighborhoods to recommend for first time buyers and current home owners looking for a change. Hyde Park definitely has a unique vibe while offering sophisticated college town living. Situated on the lake, offering affordable living, and boasting an established and refined attitude, Hyde Park is no longer a "secret" option for condo living in Chicago.
For questions about this, or any Chicago neighborhood, feel free to call me anytime at 773-975-2123 or email ERojas@CHEmail.com
The Realtor Deal with Eric Rojas
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