Jules Yates

Whenever I have a seller who is on the fence as to whether to take an offer on their home I tell them take the deal. This may sound like bad advice especially if a seller is giving up a lot of equity but consider what savings that Seller will make up for when they take their proceeds and buy another home.

Basically it is trading equity with another person. You give up some on your end and take it from the next seller. It's not a bad deal when you look at the net result. Too many sellers are concerned about whether to take a legitimate offer and I say get what you can now especially when you have had little or not previous offers. Listen to a professional.

Naturally not all deals are good for all parties but with a market as challenging as we have seen in the past 2 years, I say take the money and run. Two years from now you may look back and say I am glad I got out when I did.

Now more so than ever I have seen counter offers to counter offers and both buyers and sellers stretched to the breaking point. Another recent trend is homes that will not appraise at the current asking price. Recent changes to the appraisal process has forced appraisers to use foreclosure properties in their calculation of value and with almost 60% of the sales foreclosures it can be a struggle to hit the mark.

I have had a lot of people ask me this question recently so I thought I would share it with everyone. The answer is generally quite simple...lower the price. It's easy to say but being in a position to do so is not always the case.

Banks are the primary culprit for constantly lowering the price until the property sells. Re To a bank or other investor the sale is not an emotional thing it is purely business and good business says sell now. It is as simple as supply and demand.

While supply is high and buyers aplenty, the primary motivation if buyers is a great deal. Not a good deal but a great deal. While there a re a lot of good deals out there if you are prepared to buy, the great deals are not as frequent. The key to getting one is working with a professional REALTORâ who sis on top of the market.

If on the other hand you are a seller who is not in a position to reduce the price of your home or property any longer I may offer some other alternatives. Do as much as you can to set your home apart from the competition (Make your home sparkle, maintain the yard, paint a room if it need something). Speaking of competition, go out and look at what you can buy for the money. The other buyers are.

Keep one thing in mind that if you set your property up on a regular price reduction it will eventually sell. If all else fails and you are in a difficult financial position you may want to consider a short sale (selling your home for less than the balance owing). Talk to a professional for details on a short sale.

Lastly do not be shocked if you get an offer less then your asking price. Rarely does anyone offer full price unless it is a foreclosure. All buyers will try for a low offer but try to negotiate a deal you an live with. As they say, " a bird in the hand".

In a market where competition is fierce, why not take some advice from seasoned veteran and raise the commission. You may be saying to yourself that of course agents want to raise the commission and to some degree that is true but probably for different reasons.

As a listing agent I know that in the first 30 days your property is more likely to get showings and offers than at any other time. I also know that in challenging times money can motivate people (or other agents). What I suggest is offering an incentive.

When you list your property consider a standard rate on the listing side (you don't want to de-motivate the listing agent) and offer a increased rate to the selling agent. For example if you listed a typical property for 6% (this is an example and all commission rates are negotiable) the listing side (Broker and agent) would get 3% and the selling side (agent and broker) would split 3%.

I might suggest you offer 3% to the listing side and 5% to the selling side. If for example your home sold for $200,000 (Gross $184,000) to you and it sold quickly you would be farther ahead then if you were to let it let it sit an do a typical 5% price reduction. An extra 30 days can cost you more in the long run.

Try not to think of it as the brokers making more but try to consider what you will net. Personally I would pay a 10% commission to someone if they could sell my home quickly. As they say time is money. If you have any questions about this method, please feel free to contact me anytime at 231-218-5199.

Over the years I have been asked numerous times what is a buyers agent. Simply put I say this: Imagine walking into a court room and having 2 lawyers sitting at the plaintiffs table and none at yours. Would this make you comfortable?

When buying real estate it is a similar situation. Unless you specifically enter into a written agreement with a licensed professional, that agent represents the Seller (meaning they are not at your table). I won't begin to imply that you can't get a fair deal if you choose not to use a buyers agent but given the choice of using one or not, I would choose to use one.

I have always said that the listing agent is the best qualified person to talk to if you inquire about a property. Why? Simple... they have the most knowledge of the property, they know the seller's motives and they can get you answers the quickest. That said you can still notify the listing agent that you are being represented and they should be fine with that.

In fact agents prefer to know right up front if you are working with a specific agent. It helps them determine how to best help you. So when is the right time to hire a buyers agent? I would say in the very beginning. A Buyers agent has resources not available to the average buyer.

You will typically find a property quicker, negotiate a better price and close more smoothly than if you choose to go it alone. If you are comfortable with the process than you may not need to specifically bring in an agent after the fact but find someone you are comfortable with early in the process.

FREQUENTLY ASKED QUESTIONS ABOUT BUYER AGENCY

Q - Do I need a buyer's agent in order to purchase of a home or property? Absolutely not...if you are comfortable with a purchase or have has previous experience you certainly don't need a buyers agent.

Q - What is the difference between a "traditional" agent and a buyer's agent? The difference is in the buyer being a customer or a client. The 'traditional' agent works with you as a customer. When you are a customer, you are without representation, much like buying a boat, car, or when shopping in general. The agent or salesperson assisting you is employed by and works for the seller and is obligated to get the highest price and best terms for the seller. This agent or subagent should be honest and disclose all material facts about the property, but must work in the sellers best interest at all times. When you become a buyer client, you are fully represented. You actually hire an agent to professionally advise and represent you. Your agent will then work in your best interest to gain the best price and terms for you- using proven techniques to negotiate the lowest price possible. Only a Buyers Agent can legally negotiate on your behalf.

Q - Will I save money using a Buyer's Agent? In some cases, yes you may save money using a buyer's agent. For example if you are uncomfortable negotiating it may be advised to hire a buyer's agent. If the transaction is complex, it certainly would be beneficial to hire a buyer's agent. Generally you will not save money nor will it cost you more to use a buyer's agent. In most cases, this is a free service which requires you to enter some type of Buyers Agency Agreement. Many people simply choose to use one for piece of mind.

Q - I am working with the listing agent, is that agent a Buyer's Agent? Generally, unless you have entered into a Buyer's Agency Agreement with that agent, no that agent represents the seller. Just be aware not to disclose any personal information to that agent that you wouldn't want the Seller to be aware of (in negotiating for instance). All agents whether representing the seller or buyer must be fair and honest with you but are not required to disclose certain information such as the Seller's motives for selling. Each Agents responsibility is spelled out in the Agency disclosure form.

Q - If I am comfortable with the listing agent, should I hire a Buyer's agent? No, not necessarily. As long as you are aware of the fiduciary responsibility of the agent (whether it is to you or the seller) you can use who ever you are most comfortable with.

Q - Are all Buyers Agents the same? Absolutely not... like in any profession, there are those who specialize in the field and those who do not. Also there are certain Realtors who have specific training in Buyer's Agency for example the ABR designation.

Q - When I walk into a real estate brokerage and ask for help, are they working for me?

Generally...No. Numerous consumer surveys have indicated that buyers and sellers of real estate have been confused as to who represents whom in the transaction. Most Buyers mistakenly believe that the real estate agent who is "showing" them houses are working for them. But in fact, unless you actually hire an agent, in writing, to represent you as your Buyers Agent, ALL other agents work for the SELLER.

As a Buyers Agent I can assist you with all your real estate needs so feel free to contact me anytime at 231-218-5199.

On May 14th President Obama announced a new uniform Process for Short Sales under it's new Foreclosure Alternatives Program (FAP). What is short sale? A real estate short sale is a form of agreement between the seller of a home in the beginning stages of foreclosure and their lender, allowing the home to be sold for less than the existing loan balance outstanding. The mortgagee would accept less than the loan amount in order to avoid a foreclosure proceeding. This short sale would result in a substantially discounted purchase price for the buyer of the home. The buyer would then proceed with the purchase of the home much the same as in any conventional realty transaction.

Why is this a good thing? Up till now each and every lender has had a different process for handling a short sale. For anyone who has successful negotiated with more than one lender will tell you it can be a daunting task and it still is. Hopefully a new set of guidelines will speed up the process.

The plan calls for (in part) the following:

1. Incentives - Incentives for lenders who successfully complete a short sale, incentives to homeowners for moving expenses and funds to junior lien holders.
2. Standardized documentation - Most importantly a standard short sale acceptance letter.
3. Timelines - Homeowners will be given 90 days to market their homes prior to foreclosure and the home must be listed with a professional.
4. Commissions - Service providers must pay a customary commission and may not negotiate the fee.
5. No Fees - Borrowers may not be charged a fee for doing a short sale.

This is great news for everyone as the faster foreclosure properties are off the market the sooner we can return to a normal market.