Experts Cross The Line On Occasion

In a real estate transaction, there are many people involved who render professional advice and services. Most Realtors will advise their customers to use licensed professionals such as licensed mortgage loan officers, licensed certified appraisers, licensed home inspectors, licensed roofers, electricians, plumbers and contractors. Home-Buyers and Home-Sellers hire these professionals to do specific work related to the scope of their fields.

Unfortunately, there are times when professionals just can’t help in giving their personal opinions to a buyer or seller, not realizing that this personal commentary can sometimes ruin a transaction. In this post, I really wanted to talk about a few mis-steps of those we rely on for “expert” opinions and advice.

Here are a few experiences I have had with “experts:”

• A Home Inspector tells a buyer that his sister is in insurance and this house built in 1945 is uninsurable. (The home was indeed insurable, but this cost the sellers a sale as the buyer walked away from the sale and cited this as the reason. Hey! When did he get his insurance license?)
• A Surveyor told one of my sellers that their friend told them that the property they were selling had an old graveyard on it somewhere in the back acreage. (Wouldn’t you think he’d wait and research the “hearsay” of his friend before mentioning this? Was it right for him to say anything to the seller at all? Not!)
• A Contractor who was replacing siding on a house told my buyer they would never buy this house because it would be a money pit. (They bought the home, had a few minor repairs and enjoying their third year there,.. oh,.. they hired another contractor to do their work.)
• A plumber told a buyer that whoever did the repairs on this house before him must have been a thief and a fool. (As soon as I heard that, I asked him to leave,.. and hired another plumber – do we need that kind of analysis or do we just want to know what we are dealing with,.. the facts please!)
• A heating and air conditioning contractor told a home-seller that the Realtor that said this HVAC system needed to be serviced must not have known that he had been servicing this unit since it was installed, and they didn’t know what they were talking about. (A second HVAC contractor concurred with inspection report and we found out later that this company had been ripping off people for years and he soon lost his license.)
• A home inspector gives opinions in a home inspection, but after his recommendation of a licensed roofer to evaluate, he returns only to say now that the work was substandard and not acceptable. Emotions were escalated by this inspectors personal remarks and opinions. (Realtors facilitated second opinions by a roofer he recommended, and after a meeting with all parties including the first roofer, the transaction was saved over a $50 repair. A more careful choice of words, both on a home inspection and when in person with a buyer, seller or Realtor, might just result in solving a problem easily instead of inciting extreme emotions.)

I’m not saying Realtors are perfect, but here is what we are here for, CALMness. Realtors are generally the ones that are pros at crisis management!

I could go on… but the point is this the choice of words, or personal interjections caused all parties undue stress and aggravation, some a sale, others a lot of money only to have been proven unfounded and really had no business being discussed in the first place. Buyers deserve to have professional advice, reports prepared using language that points to specific issues verifiable by that expert’s knowledge. If there are items outside the service provider’s area of expertise…make sure they make a recommendation to a professional equipped to deal with that issue. 

If you are a buyer and have doubts about a professional opinion ask your Realtor to help you sort it all out!

Don’t Gamble With  Your Home Search

People still buy homes in Tallahassee, Florida without Realtors. Yes they do. Unfortunately, those buyers often end up with issues that they have no clue as to how to solve, much less have a clue as to who can solve their dilemmas.

A few years ago, I answered the call from a buyer desperate and sitting in a moving van wondering where his family was supposed to go because his transaction fell apart at the closing table. The attorneys for the seller, where he had unknowingly agreed to close, kept a binder check, and hurried him out the door because it was almost 5:00pm. He was desperately calling Realtors out of a real estate magazine, and I happened to be his fifth call. (more…)

I’m working with a cash buyer today, but I couldn’t help but thinking that a renter might consider this… a 203K renovation loan to purchase a distressed property could save them thousands,.. and double their investment value in 7 years AND enjoy a tax savings of $15,947. Just take a look at the chart below.

A purchase of 50K, Roll in the 30K for repairs with a 203K loan. Take a 15 year mortgage, and it will be paid off in 7 years… and look at the EQUITY in7 years!  I think the only thing left to say is, “When are we meeting to look at these properties?” The time to purchase a home is right, the properties are there, but you need to be ready to go! For an investment planning appointment contact me today.

Renting vs buying – 15 yr

How DO buyers search for homes?

This weekend, March 26-27th, 2011, Florida Realtors held a Statewide open house event. The entire weekend was a chance for buyers to see thousands of homes for sale from the panhandle to the Florida Keys. Locally, the Tallahassee Board of Realtors have over 245 homes open for buyers and sellers to view.

However, there are some facts that I wonder if others have noticed.  Local Realtors have had months to prepare for this weekend. Many of us are participating by holding multiple houses open, using this opportunity to showcase as many of their listings as possible. Yet, inevitably, there are those who elected not to participate. There are also reports from others of open houses with no attendance, others open for 2 – 4 hours with one showing, etc. (more…)

How Much Is My Tallahassee, FL Home Worth?

Determining a price when selling a home warrants careful evaluation and knowledge of market conditions. Today I met with sellers who paid a premium for a second home in Tallahassee in 2006.  Today they are considering selling, as they plan for their future  retirement. They  live in another State, and are likely to retire in South Florida. So at our seller’s consultation we discussed the following:

• Reasons for Selling (Which I just explained above)
• Timeline for Selling (No rush, they are enjoying having the home for now and being close to their child, but making plans to build on a lot in South Florida)
• Market Conditions ( for this home, 6 months ago, there was 9 months of inventory, today there is 31 months.)
• Pricing (Again, they bought at the height of the market. Since then, our area has had a 25% reduction in value across this neighborhood)

Although it may not seem like the sellers should be in  hurry to sell, here is what they might want to consider:

1. 20% was placed as a downpayment on the property. Market value today is 25% less than what you paid for the home. Taxes are based on non-resident, non-homesteaded value. There are maintenance, and mortgage costs of approximately $21,000 per year. Time spent in the home is approximately 2 months of the year. That’s $10,500 per month. Is this a good use of your money?
2. Your timeline is no rush, but maybe it would help to think of comparing the cost of owning this home to renting a home or small apartment for the 2 months out of the year that you are in town. Rent for 2 months, fully furnished 2 Bedroom 2 Bath apartment costs approximately $3000. That’s an annual savings of $18,000. Secondly, we are coming into a selling season, this is when buyer’s are looking, this is when your best chances for a sale are in this area. Waiting will only decrease your exposure to the number of buyers that are looking.
3. Market Conditions presently and historically indicate more inventory will come into the market in the Spring and summer months. Pricing and home conditions are the driving forces for sales today. Secondly, there simply are not enough buyers to keep values growing at this time, nor in the foreseeable future. Capturing a buyer today means, price it right, make it shine. Period.
4. Pricing: As mentioned, we have had a 20% reduction in sales, there goes your 20% deposit you placed on the property. The improvements you made to correct a drainage issue (which likely should have been addressed when the property was purchased), are likely not to be recovered. What making these major repairs will do, however, is keep a buyer in the game, because they would most likely not have that cash money to fix the issue, nor the experience to know how to address a major issue such as this. They would simply walk away. (A topic for another day, would be how Realtors help hold transactions together by providing or arranging quotes on repairs, or remodels that would work for their customers.)

Is it the right time to sell?  If you are realistic about home prices and market conditions, then, yes. This discussion, although hard to swallow, was frank, factual and forthright. There is no other way to discuss listings today. Holding a seller hostage by overpricing a listing is neither an ethical or professional service that any Realtor should represent. Most seller’s are appreciative of the facts, and the ones who are not will interview enough agents until someone tells them what they want to hear. Unfortunately, great Realtors will be picking up the pieces at the end of those listing terms.

As I am writing this post, another agent is telling me the story of her transaction today. A Buyer made an offer on the home and the appraisal is $20,000 lower than the contract price. The selling agent admits he let the seller set the price on the listing. How does that make him look now? Was it fair for the selling agent to take the listing at an overpriced amount? Who won here?

If you want an honest, ethical, professional opinion on the value of your home by a Realtor who knows the facts on pricing, market condition,  timing for the sale of your Tallahassee, FL home, then call on our team. Together, we will accomplish your goals and design a marketing plan suitable for selling your Tallahassee, Florida home. Click here for a FREE Selling Guide.

Other considerations might be, hold the property and lease it. Treat it as a long term investment, (which unless you can afford to walk away from cash, you should consider anytime you purchase a home with a mortgage.) That is another blog.

Mr. and Mrs. Home Buyer, what’s the thing you hate most about home shopping? I bet I know! ( been around long enough to hear the stories). Could it be that you are riding around, calling on real estate signs and getting different Realtor every time you call. I bet before you get home, you’ve got 15 home listings in your email,… from 15 different Realtors. Congratulations  you have just become a “Drip!”

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I love social media. When browsing the not so small world that we live in, where we are all probably a little more connected than we realize occasionally you stumble on things that surprise you. Sometimes these are welcome surprises such as realizing that your friends are friends with your other friends and you never made that connection until you see them holding the babies of your loved ones, or enjoying parades or parties together. Those are the feel good moments of our social media world.

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A good Realtor will have a few questions for prospective buyers. a great Realtor will explain their policies with you upfront. Honor your Realtor and you will receive the ultimate in customer service. Remember,.. this person is about to spend hours setting up systems that will help you find the perfect property, in her/his office, databases, communications, multiple listing service as well as even more time researching or previewing properties that may meet your needs and providing those to you. (Did you know that most Top Producing Realtors work between 80 – 100 hours a week?) Ultimately, even more time and money is spent in advance in showing you properties, driving to and from, taking time from other customers, family and friends to devote just to you, (often into the night and on weekends and holidays!) So, before a Realtor just pops up to “go and show,” there are a few questions they will ask of you as well! (more…)

Oklahoma! Where the wind comes sweeping down the plains,………

Yes! You know it and now you can see it for yourselves! Just 20+ miles east of Tallahassee on Highway 90 is Monticello, Florida, home to the historic Monticello Opera House.

OKLAHOMA by Rodgers and Hammerstein
Presented by M&M Productions

You’ll have a rip roarin’ good time as you watch Curly and Laurey fall in love. Tap your toes and sing along to familiar songs such as “Oh, What a Beautiful Morning” and “People Will Say We’re in Love”. Hoot and holler and bring down the house as the cast sings the title song “Oklahoma”. Yeow!
October 15, 16, 17, 22, 23, 24, 29, 30, 31 (Friday, Saturday, Sunday)
Friday & Saturday (Except the 30th)

Doors open 6:30 PM, Dinner 7:00 PM, Show 8:00 PM

Dinner/Show $35; Members $30; Students $25; Show Only $15; Members $12; Students $10 
Sunday Matinee:

Doors open 12:30 PM, Lunch 1:00 PM, Show 2:00 PM

Matinee/Lunch $22; Members $18; Students $15. Matinee Only $12; Members $10; Students $8 

Saturday October 30

Doors open 5:30 PM, Dinner 6:00 PM, Show 7:00 PM (in advance of the Monster Mash)

 
Oklahoma/Monster Mash package; add $15 per couple to dinner/show or show only.

Search Homes for Sale in Beautiful Monticello, Florida via Debbie Kirkland, Realtor’s website and MLS Search Engine.

Oh the things you learn at Real Estate BarCamps or technology conferences. Being in real estate is about changing with the times. The Time for learning innovative marketing techniques and ways to give savvy buyers “Quick Responses” that can be viewed on the go has arrived. These “QR” codes can be viewed by smartphones with QR Code Reader Applications such as Google Goggles for your Android Phone, or several  iPhone QR readers and several others. The apps lead you to photograph the code, then translate that to the website where you can view more information.

So what would a Realtor want with this kind of contraption? Well, how many times do sellers ask, “How many people have you shown my home to?” or “Is anyone looking at my home?” QR Codes allow Realtors to track who is seeing their listings, and give us information on those people such as what kinds of people are interested in it so that we can adjust marketing plans and niche market.

These codes are put into websites, into marketing materials, magazines and print advertising, and even on real estate signs! (Coming this week to Debbie Kirkland’s Listings!)

There is certainly a shift in marketing. Shifts not only in marketing listings, or locating buyers, but in how Realtors market themselves. I spend a lot of time asking buyers and sellers what they want in a Realtor. I have found buyers and sellers want to work with a real estate agent utilizing the most innovative, productive marketing tools to help them reach their goals, and one that is resourceful and respectful of making the most of their customer’s time. Time management, organization, data production ~ customers want to cut to the chase and to accomplish their goals more effectively and efficiently. It’s more and more about timely communication and depth of marketing outreach.

So, forward thinking we go… watch for QR Codes on my listings soon! If you see one, send it to your friends! Get your reader and take a look at this new listing and the message above!

Want a Marketing plan for your home that reaches more buyers, want a QR Code for your home?