Greg Nino Houston Texas

Every State and Association is different.

Imagine being an agent in Austin looking to help your buyer in Houston, but not being a member of the Houston Association of REALTORS® . What does this mean?

It means as a non-member you do not have access to lock-boxes, both electronic and combination. It also means as the buyer's agent you do not have access to comparable sales data to assist your buyer when formulating an offer. Those are clearly two big reasons to refer the business out to a local agent who does. It's also against the REALTOR® COE to "wing-it." Actually, that's not the exact verbiage, but I'll save that for another blog post.

When any listing agent in Houston (or Texas) lists a property they are required to use the standard listing agreement form, (TAR-1101). This means all listing agreements are pre-typed the exact same way.

On page 4 you'll notice the compensation for both MLS and Non-MLS Brokers...

Typically a listing agent will pay MLS participants MORE than a non-mls participant. The only way to disclose this to the Buyer's agent is when they contact AND ask the Listing Agent. This can also be disclosed on the MLS under Agent Remarks, which they would not be able to read unless they were a member of the MLS.

One scenario could include an Open House.

Imagine an agent from El Paso showing my Open House with his buyer and later submitting an offer. At that point he'd learn what his compensation is, especially if HE didn't inquire about it prior to even attending the Open House. Let's assume my compensation is ZERO for Non-MLS Brokers. The buyer's agent wouldn't be allowed to put HIS interest before his clients. He couldn't ethically advise his client to walk away from the deal because he wasn't being paid a commission. That's a violation of the REALTOR® Code of Ethics. And I doubt the buyer would feel very well taken care of if asked to walk away from their dream home because the REALTORS® couldn't figure out their compensation. This is almost always an Agent problem, not a consumer problem. An exception might be when a buyer has elected to pay a buyer's agent a compensation from their own pocket through a Buyer's Representation Agreement. (insert LOL here.) Keep in mind that a Listing Agent is still going to get paid their FULL commission agreed to that's in their listing agreement as that is an agreed upon amount between seller and Listing Brokerage, REGARDLESS if the buyer's agent is being compensated or not.

A buyer's agent usually charges their client to view homes in Commercial Real Estate, not residential.

The moral of the story in my opinion is VERY simple. Refer business out when necessary. It's better to get paid a referral fee than to steer your buyer from homes that do not pay non-mls brokers. It's better than you begging Listing Agents to unlock the door for YOU and your buyer.

It's better for the buyer to work with a LOCAL agent.

Sometimes a far and away agent will convince the buyer to work with them by splitting the commission if they let them travel hundreds of miles away from the mkt they customarily work. In the end the focus is clouded by both the buyer and the buyer's agent in my opinion. Both are too busy thinking they've both got a great deal without thinking through the potential reality of their upcoming transaction.

Earlier this evening I attended a REALTOR Open House at XYZ Homes. This model home has a beautiful front door with a speak easy window. As we visited I joked how easy it would be for me to reach through the little window, unlock the door and simply let myself in. And as you can see... I'm doing just that in this picture.

Do you like speak easy doors?

An older home in the Houston area is 20-30 years old. 30-40 and we're talking ancient. Many buyers who appreciate older homes do so because they like the maturity of the neighborhood, consistent resale trends, character of the community, the way the home was built and the lack of the cookie cutter appearance. Lot sizes tend to be larger, too.

Here's what you should consider before buying a 20+ year old home in the Houston and suburban area.

1. How old is the roof? A 30 year roof in this mkt tends to last (but not always) about 20 years. The intense heat and humidity equates to more moisture. And more moisture breeds wood rot and deteriorated roof shingles. Most roofs are composition made with a 30 year life-span. Many insurance companies will not insure a home with a roof that is 20+ years old, if they do, the rates can be significantly higher.

2. How old are the air conditions and who made them? York is probably the lowest quality air condition as I've ever seen. There are many popular brands like Trane, Carrier and even Ruud. Ruud seems to be the longest lasting system in my opinion. Old units that need replacing can cost 3-20k depending on what you install.

3. Does the home have single or double pane windows? It matters. Double pane windows offer more protection from the heat and they also mean a lower utility bills.

4. How old are the water heaters? You can easily spend a couple of thousand dollars removing and installing new water heaters. I've not seen any added benefit to installing the pricey "tankless" systems if you're only going to stay in the home for 7 years or less. The cost outweighs the benefits.

5. Does the home have galvanized pipes? It's highly unlikely you'll find knob and tube wiring and galvanized pipes in a home that's less than 30 years old. If it's 40-50 years old you better do your research, extensively. Galvanized pipes rust from the inside out. You can have them treated on the inside to {seal} them from further rusting, but it isn't cheap. The same for knob & tube wiring. The cost of insurance {if available} will sky rocket.

6. What kind of siding does the home have? Aluminum siding, foam board, MFC and other products used in years past have been proven to not last the test of time. Today, builders use a cement based product aka: hardiplank. It typically has a 50 year warranty. Plus, termites don't usually eat through cement based wood. You can drop 10-20k residing an entire home depending on the square footage.

Notice the list doesn't make any mention of enhancements or upgrades. In my opinion they are of least importance when buying an older home. A good floor-plan in a good area with an all new roof/ac/water heater and siding would be considered a helluva find if you were to ask me. You can always add the granite, pretty paint and new ceiling fans later. Shop smart!

Lastly,

In this market almost every lawn has termites. It's not "if" they get in your home, but "when." It's never a waste of money to start an yearly treatment plan in my opinion. Every homes foundation will ultimately twist, crack and fracture. Our clay soil and climate are ever changing. Expansive soils are guaranteed to happen. A home with all new piers (fixing of foundation) is a plus in my opinion. This typically means it's warrantied for life. A home that hasn't been worked on means at some point YOU get to foot the bill.

There are currently seven different kind of approval letters. It all depends on who you get the from and under what circumstances.

Here they are.

1. The on the spot pre-qual letter that's generated online from your favorite bank.

This is the easiest to obtain. You can enter whatever you want online and as fast as you can say "We're here to help" is about the length of time it will take to become instantly approved. This document is almost worthless, but not entirely. You can use it to start a fire, make an airplane or wad up and throw it across the room at your spouse as he or she bends over to make the bed. No listing agent or worth their salt will accept it.

2. The "No-Worries" approval letter.

This is different from number one. It's an actual pre-approval letter! The lender spoke to the buyer for about 22 seconds and based on his vast experience and special "gutt" powers they are able to get a really good feel for this buyer. These rushed approval letters are the most common. They are expected to be taken more seriously because the loan originator actually "signed it."

3. The "Think I Can" Approval Letter.

Most FHA approval letters are from buyers who have a 640 credit score or better. Even though FHA isn't credit driven. This is the mother of all approval letters. The buyer is rounding third base with a 630 mid-score and going through credit restoration. The Loan Officer is telling everyone....... "don't sweat it, I got this!" All the while the buyer, buyer's agent, seller and listing agent are making plans & moving forward as if this is a done deal. Only the buyer and buyer's agent are privy to this "God I hope this file closes!!"

4. The "Never Gonna Happen Approval Letter."

This one is easy to spot, but unfortunately still seems to find a way into a sellers hands. Over and over again people fall for it. There IS NO PHONE NUMBER for the loan officer, nor is there an email address. There is no contact information and the address for the bank is a p.o. box in another state.

6. The "None Of Your Business Approval Letter."

Sometimes there are people who believe getting approved is all but beneath them. In their head only small people need prove their financial worthiness. Instead they grab bank letters signed from the bank president that reads..... "he's good for it."

Finally there's the best approval letter of all time.

It has the Loan Officers name, email, cell and office number. You can reach out and touch them. They work locally and are available on the weekends. Because deals are often negotiated on NON-BANKER days like SATURDAY, SUNDAY AND AFTER FIVE during the week. The loan officer has reviewed debt to income, verified assets, looked at all possible pit-falls and has provided a GFE when they are required. They let the buyer know UP FRONT what documents they'll need. They have done their due-diligence and have educated EVERYONE involved about the type of loan. They are even so kind to reassure the Listing Agent what they are legally allowed to disclose... things like... YES, I have actually received a loan application.

Anything worth doing is worth doing right upfront.

It's better to tell a buyer to "wait" six months to qualify than to wing it and piss off so many people. One torepedoed deal can hurt so much. Including hopes and even DREAMS.

The proof is in the pudding as they say. Above you can see just how relevant and potent our mls really is. I don't need Zillow to host my listings (especially after they have sold) so they can turn around and attempt to sell the traffic right back to me. I don't need Realtor.com trying to charge me to "Showcase" my listings on a website that has little value for my sellers.

Not one single time has a buyer EVER called me and said they found a home on Zillow that they'd like me to show them. Not once.

I did get a call from a very upset home owner last year. He accused me of "listing his home" after it was closed. Apparently it was my OLD listing (closed 3 years before) but it was STILL being promoted on Homes.com as active listing Really?

My MLS points traffic to my website. They really do! I don't pay extra for it and I don't pay a monthly subscription. My sellers get the best exposure they can possibly get right from the Houston MLS. Zillow might have bigger numbers, but the quality of requests doesn't even compare. You can see that to date I've received almost 1,000 leads. ONE THOUSAND.