This is a re-post of a previous blog from May 2007:
Buyers Welcome
In a recent Realtor newsletter, the author of a story offered his criteria as to who was a "worthy buyer". His argument, essentially, was that the only real way to make money long term was with sellers..."list to live" as many have said. Buyers, he argued, can take alot of your time and should be carefully screened.
While I agree that it is important to ascertain whether or not someone is willing and able to buy a home, certainly they are not always completely ready when I first encounter them. Perhaps they need more information on the area , or need to feel comfortable about the schools. But if I followed the unspoken rules, I never would have sold homes to some of my most loyal customers.
* The couple from NJ who viewed 75 homes before buying the perfect one - with a phone call.
* The couple from Tennessee who called five realtors in town and were told "Call me when you get here". We worked with them to narrow down the search before they got here. When they did, they bought a home in two days.
* The young couple who were buying their first home and just felt they were being rushed into unfamiliar territory. After a few long conversations answering every question they had, they happily bought their home.
There was an old rule - show a buyer 5 homes and then ask them which one they want. In today's market, Buyers rule and have lots of options, so likely won't rush. But in any market, at this brokerage , Buyers are welcome. Whatever stage, whatever comfort level, whatever you need. Because sometimes all you need is someone to understand YOUR personal buying style - whatever that may be.
Tuesday, July 22, 2008
Monday, July 21, 2008
Sarasota Buyer Agents Roles
There have been many blogs and articles on what a buyer agent is, or isnt. To our mind, here is the value we offer to a home buyer.
1) Time and Focus - Since we do not list property, our time is solely for our buyers. We are not distracted by creating sales flyers, marketing properties, or scheduling open houses. We are not taking calls from frustrated sellers or spending hours in sales caravans to learn about each others listings so we can promote them. Our time is spent researching the best properties that represent the best value for our buyers.
2) Expertise in Pricing - A listing agent cannot tell you how low a seller will go. They will not offer up the information that a list price is too high, or that the home next door sold for $50,000 less. We wouldn't expect them to - their job is to get the best possible price for their seller. But OUR job is to get the best possible price for our BUYER - so we will scour the records to find out the true market value of the home based on assessments and comparable sales; find out what the current owner paid for the property, and when they purchased the home. We also find out what they owe on the property, and extrapolate a likely sales price range using ALL the information. We make sure you never overpay for a home!
3) Protection - We guide buyers through the home buying process. Our reputation and career depends on it. It is therefore of utmost importance that our buyer is protected every step of the way. We know the contracts, and we know how to write them to best protect you. We understand the nuances, so that our customers don't lose deposits, don't get caught with an unexpected money pit, and don't get forced into a deal they didn't expect.
Working with a buyer agent means you are working with a SPECIALIST in the field of home buying. And when making a purchase of thie magnitude, don't you want the best by your side?
William True, REALTOR, Broker, ABR, ABRM, CRS, GRI
1) Time and Focus - Since we do not list property, our time is solely for our buyers. We are not distracted by creating sales flyers, marketing properties, or scheduling open houses. We are not taking calls from frustrated sellers or spending hours in sales caravans to learn about each others listings so we can promote them. Our time is spent researching the best properties that represent the best value for our buyers.
2) Expertise in Pricing - A listing agent cannot tell you how low a seller will go. They will not offer up the information that a list price is too high, or that the home next door sold for $50,000 less. We wouldn't expect them to - their job is to get the best possible price for their seller. But OUR job is to get the best possible price for our BUYER - so we will scour the records to find out the true market value of the home based on assessments and comparable sales; find out what the current owner paid for the property, and when they purchased the home. We also find out what they owe on the property, and extrapolate a likely sales price range using ALL the information. We make sure you never overpay for a home!
3) Protection - We guide buyers through the home buying process. Our reputation and career depends on it. It is therefore of utmost importance that our buyer is protected every step of the way. We know the contracts, and we know how to write them to best protect you. We understand the nuances, so that our customers don't lose deposits, don't get caught with an unexpected money pit, and don't get forced into a deal they didn't expect.
Working with a buyer agent means you are working with a SPECIALIST in the field of home buying. And when making a purchase of thie magnitude, don't you want the best by your side?
William True, REALTOR, Broker, ABR, ABRM, CRS, GRI
Sunday, July 20, 2008
Short Sales & Myths - Revisited
I have posted on this subject before, but as I talk to buyers everyday, I feel once again we should discuss the reality of the short sale.
The definition of a short sale is this - the home needs to be sold, and due to market conditions, it is clear that the home's current value (and subsequently its likely sales price) will be less than the seller paid for the property. Most of the time, this is due to the fact that the seller originally purchased the home somewhere between late 2003 and late 2005, when Sarasota's home values were increasing exponentially.
I find buyers greatly misunderstand short sales. Here are some myths I can dispel for my potential buyers.
Myth # 1 - The Seller is in financial crisis - While some sellers may be in a financial hardship situation, others simply need to sell for another reason. For instance, if they are offered a job in another state. They are up to date with their mortgage payments, but also realize that when they sell, the sales price will not cover their mortgage payoff.
Myth # 2 - The bank will be happy to take anything - The fact is, during the short sale process, the bank (and every other debtor or lien holder) is still trying to get the most they possibly can for the home. An offer submitted for a short sale is often not responded to for several months - could they be waiting on a higher offer?
Myth # 3 - The list price reflects what we can get the home for - Much to everyone's frustration at times, the bank often gives the listing agent virtually no guidance as to what they will accept. Remember, they are going to lose money. They would rather not specify how much they are willing to lose. That being said, the listing agent, God bless 'em, is left to set a price on a home , not knowing if the bank would accept it or not. What this results in are alot of folks who see a price that seems too good to be true - and often is.
Case in point - some buyers of mine recently came across a home listed for $225K. It was beautiful, and close to downtown - and in their price range! It was a short sale, but they were adamant this was their home. We made a full price offer, after ascertaining the value to actually be about $100K over the asking price. We later found out that the bank would not take an offer less than $300K. Being well out of their range, my buyers were crushed after having their hopes raised so high.
There is an upside to some short sales - if you can wait out the bank, are willing to be flexible, and get a bit lucky, you might get a great deal. But this type of home buying is not for the faint of heart. Can I show you a nice home right down the street...???
The definition of a short sale is this - the home needs to be sold, and due to market conditions, it is clear that the home's current value (and subsequently its likely sales price) will be less than the seller paid for the property. Most of the time, this is due to the fact that the seller originally purchased the home somewhere between late 2003 and late 2005, when Sarasota's home values were increasing exponentially.
I find buyers greatly misunderstand short sales. Here are some myths I can dispel for my potential buyers.
Myth # 1 - The Seller is in financial crisis - While some sellers may be in a financial hardship situation, others simply need to sell for another reason. For instance, if they are offered a job in another state. They are up to date with their mortgage payments, but also realize that when they sell, the sales price will not cover their mortgage payoff.
Myth # 2 - The bank will be happy to take anything - The fact is, during the short sale process, the bank (and every other debtor or lien holder) is still trying to get the most they possibly can for the home. An offer submitted for a short sale is often not responded to for several months - could they be waiting on a higher offer?
Myth # 3 - The list price reflects what we can get the home for - Much to everyone's frustration at times, the bank often gives the listing agent virtually no guidance as to what they will accept. Remember, they are going to lose money. They would rather not specify how much they are willing to lose. That being said, the listing agent, God bless 'em, is left to set a price on a home , not knowing if the bank would accept it or not. What this results in are alot of folks who see a price that seems too good to be true - and often is.
Case in point - some buyers of mine recently came across a home listed for $225K. It was beautiful, and close to downtown - and in their price range! It was a short sale, but they were adamant this was their home. We made a full price offer, after ascertaining the value to actually be about $100K over the asking price. We later found out that the bank would not take an offer less than $300K. Being well out of their range, my buyers were crushed after having their hopes raised so high.
There is an upside to some short sales - if you can wait out the bank, are willing to be flexible, and get a bit lucky, you might get a great deal. But this type of home buying is not for the faint of heart. Can I show you a nice home right down the street...???
Monday, July 07, 2008
Buyer Agents - and Why you Want One!
As the person responsible for content on our website, I recently went looking for "quotable quotes" regarding buyer agents.
After all, our brokerage made the decision to become exclusive buyer agents, and we no longer have listings. In traditional real estate, this would have been considered suicide - "list to live" has long been the mantra of real estate agents.
The best quote I found was from Consumer Reports: "You can't have partial loyalty; an agent either works for you or works for someone else."
Of course that makes sense, but it is not often a homebuyers first inclination. They see a home, there is a sign out front, they call the listing agent. But as we have often discussed, they represent the Seller. And no amount of disclosure or legal wording will make them YOUR agent.
A real estate transaction is complex. Buyer Agents represent ONLY you and your interests to make sure you get the best possible terms and price, and that you (and your deposit) are protected should a problem arise.
Putting the scary legal stuff aside, though, lets look at other practical facts - a buyers agent does not represent listings, and therefore has no incentive to show one home over another - we show you the BEST homes for your needs. Buyers Agents are not consumed with marketing properties, holding open houses, or prospecting for new listings. This frees up our time to work on the buyers side of the transaction all day - every day. Not insignificant is the knowledge we provide by showing more homes than...well, let's just say we show alot of property, and know the neighborhoods well!
I will close with another quote I found which sums up the importance of buyer agency - "Groups such as the Consumer Federation and the American Association of Retired Persons recommend using buyer's agents...the reason is - they work." -Smart Money
After all, our brokerage made the decision to become exclusive buyer agents, and we no longer have listings. In traditional real estate, this would have been considered suicide - "list to live" has long been the mantra of real estate agents.
The best quote I found was from Consumer Reports: "You can't have partial loyalty; an agent either works for you or works for someone else."
Of course that makes sense, but it is not often a homebuyers first inclination. They see a home, there is a sign out front, they call the listing agent. But as we have often discussed, they represent the Seller. And no amount of disclosure or legal wording will make them YOUR agent.
A real estate transaction is complex. Buyer Agents represent ONLY you and your interests to make sure you get the best possible terms and price, and that you (and your deposit) are protected should a problem arise.
Putting the scary legal stuff aside, though, lets look at other practical facts - a buyers agent does not represent listings, and therefore has no incentive to show one home over another - we show you the BEST homes for your needs. Buyers Agents are not consumed with marketing properties, holding open houses, or prospecting for new listings. This frees up our time to work on the buyers side of the transaction all day - every day. Not insignificant is the knowledge we provide by showing more homes than...well, let's just say we show alot of property, and know the neighborhoods well!
I will close with another quote I found which sums up the importance of buyer agency - "Groups such as the Consumer Federation and the American Association of Retired Persons recommend using buyer's agents...the reason is - they work." -Smart Money
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