Karen Parsons-Fiddler Broker/Realtor

Ack...buyers!!! They want to take advantage of the great prices and find that jewel that needs a little tender care. "Fixer-buyers" have always been out there, of course, but now....they are a different breed.

The new "Fixer-buyers" are not experience house-flippers, or construction experts, or people of means. They are average buyers....nice couples, often first-time buyers who believe they can buy a diamond-in-the-rough. Then they are surprised when they find there are things to fix.

Last night....I went to a home inspection for one of these buyers.

A nice older home, built in the 60s and never updated. It has great vintage built-in cabinets, original tile countertops and even an old Dutch door leading out from the kitchen to the vegetable garden. It also has the original furnace, duct tape covering electrical wiires in the basement, and a garage door which leans to the left when opening and closing.....A Fixer!!!

I was pleasantly surprised to find the inspection as minor as it was.....until I looked at my buyers' faces. Sheer horror!

"Why didn't we know about all these problems"....huh? These aren't slab leaks and an attic infested with rats, it's maintenance issues on an old house. They expected to "fix" the carpet and paint the walls. These are not "Fixer'buyers." I need to learn to identify these buyers better. I try and set the expectation before the inspections....but buyers are still shocked to find there are issues to address.

This home needs some updating, a few safety upgrades and some basic servicing..but is also $75,000 less in price than the home across the street which might not. It's a Fixer. But a minor one....

There are Anti-Realtors out there who advocate buying (and maybe selling) your home on your own. That Realtors do not bring value to the situation. Wrong!!!

Realtors are your agents.....they are there to take care of you and your interests. It's a huge purchase, a big investment, do you really want to handle this without a professional? I recently found a question on Trulia about the frustration caused by a buyer who did not use his own agent. I just wanted to share this....several agents, as well as myself, answered the question to try and help the buyer...but the frustration could have been avoided by using a Buyer's Agent in the first place.

http://www.trulia.com/voices/Home_Buying/Hello_all_I_am_currently_in_the_process_of_pur-122496

Read through this train and see what can happen.

We might be seeing a short spurt of increasing home values. I'm beginning to see a number of listings are those of "sellers with equity." Throughout most of last year homes were either bank owned or short sales. I think that the slightly increasing sales price vs list price is encouraging sellers to test the waters.

I'm concerned about this for my potential sellers.

There are many reasons why someone would want to sell....even in a down market. This is a great time to buy a bigger home or an ocean view home. The more expensive priced homes are still fairly slow moving. So if you are selling in a lower price point which is moving quickly, you might be able to make a very smart move...selling quickly and then buying in a slower price range which is still comparatively lower priced.

But I'm concerned that my "sellers with equity" might misread the market signs. The reason properties are selling for more money than the list price is NOT a dramatic increase in home values. The reason is that banks and short sale agents are listing these homes artificially low so as to attract quick offers and encourage buyers to bid up the price to get the home.

The energy this creates is causing a flurry of activity and this is causing some panic on the part of buyers. They are finding multiple offers on most homes. Yet many of these homes come back on the market later because the buyers have written offers on several properties and have chosen another home. So buyers are confused.

I'm not sure about trying to sell your home in this atmosphere. I would be wise to really dig into your market with a Realtor to determine if you should jump yet.

My sense is at least in Southern California....it's not time yet.

I call it "window shopping"! In the truest sense of the term, you are in fact shopping for windows...and doors...and floors...and kitchens...Ok, you get the point! In my business plan, I include time to take clients who are not ready/prepared to buy out to see homes and neighborhoods. This is not only first-time buyers....this market can be scary!

I think the industry as a whole now understands that buyers are more educated than ever. They use the Internet to do much of the research. Sure they can get a list of available homes and recent sales....but without the context of seeing these homes, this information is numbers. Drive-bys are helpful as well....but an afternoon spent with a Realtor looking at homes with the background information and comps is an education that can't be gained on the Internet.

I have a database full of these future buyers. I don't use the normal "drip" email system of sending 1 or 2 lisitings as they pop-up. I use a gateway website...here is a sample site:

http://socallistings.marketlinx.com/portal/?PID=1176885&MID=SPARSKAR

This site allows the future buyer to capture, sort, save and make notes on listings all in one place. These listings come directly from the MLS so nothing is missed. When you are "window shopping" this is a great way to start watching the market. You will be able to watch prices...are they going down? up? are there more listings that fit your criteria? less? This is great information!!! All in one place!

The Real Estate Market is changing every day...if you aren't ready to jump right now....find a Realtor to help you prepare! Go see a few homes, check out the neighborhoods and do some "window shopping."

The Internet is a wonderful place. Information that was once only available to licensed Realtors is now on-line. One great use for the Internet is to research Realtors! Real Estate websites should be seen as a valuable resource to educate yourself prior to calling an agent...much like a medical website. (ok....please don't think I'm comparing Realtors to doctors)

I have spent quite a bit of time on-line answering questions for potential buyers and sellers. Some are simply asking questions about a particular property....but some are asking specific, serious questions about procedures and market conditions. These range from how to negotiate home repairs to what to expect when buying a short sale. Interested buyers and sellers who are trying to gather information in an anonymous environment where they don't have to feel "pressure" from a Realtor.

I know that calling a Realtor out of the phone book is risky. Not because Realtors are unqualified, but this is a personal relationship. In a blind phone call....how do you know about the Realtor's experience, personality, knowledge? On-line forums like Trulia can aid in this search for the right Realtor. A well composed question will showcase the Realtors' expertise in the answers they give.

I think it's unfortunate when a response is something like this "very good question, please call me and we can discuss this further." More helpful are the longer, thought-out answers trying to really give the consumer insight into the process. These agents take the time to read the question, determine the real concern, and address the consumer in meaningful way.

If you are using the Internet to do some research before launching your Real Estate Transaction.....READ THESE ANSWERS!!! Learn about the agents in your area. You are looking up prices of homes, comparables and values....take the time to read about the agents! Finding the right agent, more than any other decision you make, can affect your real estate experience. The right agent will save you false starts and headaches during this process. Trulia, Blogs, Articles, Websites....all more sources of information on the agents available to you.