Questions to ask your Realtor

Questions to ask your Realtor

Tip #1:

Don't just list your home with the first agent you meet at an Open House. Interview at least 3 agents to determine some very critical and important information about how that agent is going to perform. Ensure you write your questions down and tell each agent what your expectations are. How do you want to communicate? Email or phone calls? Make sure it's clear between you and the agent. Lack of communication and poor follow-up is one of the biggest complaints I hear about other agents. Test your agent to see how fast they return emails and phone calls. Again, this goes back to your expectations from the agent. Let them know up front. I always give a weekly summary about showing activity and market changes every Monday and provide up to date important info throughout the week as needed.

Tip #2:

Ask if your agent is a Realtor. There is a difference between a sales agent and someone who has earned the title of Realtor. Have them tell you the difference.

Tip #3:

Ask them how much experience they have representing sellers in this market. Some agents are strictly "buyer's agents". You want someone that is an experienced "listing agent". How many homes have they sold in your neighborhood?

Tip #4:

Ask them, "How are you going to sell my home and what is your marketing strategy?" Ask them to show you specific examples of their printed marketing materials, direct mail examples, flyers, etc... Most importantly, ask them about their internet marketing strategy. 87% or more buyers start and do almost all their research on the internet FIRST. If your agent does not have a great website, digital flyers, email blasts, virtual tours, blogs and a host of other technologies, then I would recommend moving on to someone who does. If you want to see how tech savvy your agent is and how well they understand the importance of the internet in marketing your home, just go to Google, Yahoo, or MSN, type in, "the agent's name + Real Estate" and see what comes up about them. This will provide you an idea on how well they market themselves and their listings on the internet. There a literally dozens of websites that "Your Home" should be posted on. If your agent is only relying on newspaper ads, open houses , yard signs and the MLS to sell your home, then move on to someone else. You have to do a lot more than the basics.

Tip #5:

Do your research on the value of your home. Not what you think its worth but rather, what the current market value is. I might "think" my house is worth a million dollars, but the real current market value is $825,000. Know the difference. Homes values are based on what a buyer TODAY would be willing to pay for a home similar to yours. I don't care what you paid for it 2 years ago. That fact is irrelevant. This is why you need to pay attention to the facts. The facts are current comparables that have SOLD near your home recently. (Within 3 months is best). No, Zillow is not very accurate with home values. Have the agent show you all the comparables to your home. These are homes that are very similar in size and condition to yours. Your agent should be able to adjust pricing and come within 2% to 5% of your home value. It's important to have an agent that is familiar with your neighborhood too. An overpriced home will NEVER sell. It's always better to price it right from the beginning. This brings me to my next tip.

Tip #6:

Don't let the agent buy the listing. This means don't go with the agent that tells you the highest list price. It's not always the best option. There are top agents out there that will continually take listings because they LIE to the sellers and quote or agree to an overpriced listing. You might be saying, "Well, the Top agent in my neighborhood says it's worth way more than what other agents are saying." Well, chances are, if I told you a higher list price, then I have the best chance of getting the listing. That's why they lie. The quickest way to see if an agent "buy their listings", just ask them to provide you statistics of ALL the previous homes they have SOLD in the last year. But here's the kicker, ask them to show you what the original list price was versus what it actually sold for. This will show you how many times they had to go to the sellers and ask for a price reduction. It's much easier to price it correctly from the beginning. Overpricing tends to get a lower price later

Tip #7:

Ask for client referrals. If they are experienced agents, they should be providing you referrals from previous clients. Ask them to provide at least 3 previous clients that you could call and ask their opinion. I have dozens of referral clients that I provide to my prospective clients.

Tip #8:

Will they be doing any open houses? Open Houses do not usually sell a home, but it does allow lots of buyers an opportunity to look through your home. Don't equate your agent doing a lot of open houses as "marketing your home" for the reasons stated above. Many agents use open houses to gather new buyer/seller leads. Nothing wrong with that and it does allow people driving around a chance to check out your house. I've only sold a few homes lately from a direct result of an open house.

Tip #9:

What does the agent recommend to get your home ready for sale? You should love the agent that "does not hold back" and is honest with you about how to prepare your home for sale. They should be able to tell you directly that your pink walls and Grandma's yellow, lacy curtains from the 1920's have to go. They should have the know-how to stage a home or at least have someone they worked with previously that assists them with this. I provide before and after pictures of previous homes I've sold that show what a home should look like BEFORE I put it on the market. Most changes are simple and inexpensive. New paint, cleaning, de-cluttering and staging are some of the easiest things you can do to prepare the home. Curb appeal should also not be over looked. Clean your landscape up, mow the grass, put new sod down, pull weeds and paint as necessary. Add some color by planting blooming flowers. Create a good first impression. I've driven numerous buyers to homes that did not want to go inside because the curb appeal was so bad.

Tip #10:

Do they use a high quality photos to showcase your home? This is one of my biggest pet peeves about agents. One of the most important aspects of marketing a home is using "high quality photos of the property". The last 2 listings I've sold had offers within the first week because the saw my photos on the internet (Craigslist) and contacted me and wanted to write an offer immediately. Both clients commented that the photos of the property really pulled them in. There is nothing worse than looking at dark, narrow, fuzzy photos of homes online. There is a direct correlation between good photos of a home and how quickly it sells. Many buyers will see a home online but will pass it up and not even want to look at it based on crappy photos. Your home should be highlighted with a great wide-angle lens (not a fisheye lens) and use correct lighting to showcase your home correctly. Some agents actually used to put homes on the market with NO PHOTOS. Finally, after many complaints, the local MLS changed the rules and made it a mandatory requirement to upload a photo of all homes within 24 hours. Cheap digital cameras will just not cut it in this day of digital online marketing. If your agent skimps on good photos, what else are they skimping on?

Tip #11:

One of the most important issues for a seller is Commission. I never compromise on my commission. It is very expensive to market a home and I am worth every penny of my commission. I am a professional Realtor. I do not ask my professional doctor to reduce his fees or my attorney to reduce his fees, so why would anyone feel it's OK to ask a Realtor to reduce theirs? It all boils down to the age old adage, "You get what you pay for." You want to hire the most qualified, professional, honest and ethical agent you can. If he compromises on his commission, what do you think they are going to do when they are negotiating the price of your home?

Todd has been representing buyers and sellers in San Diego for the past 10 years. From multi-million dollar, elite properties to modest condos, Todd has negotiated his way to a highly successful real estate career. See more about Todd Armstrong & Associates at www.DwellSanDiego.com.

Local MLS, ads pay off for agents

Part 2: Marketing to today's buyers and sellers

By Bernice Ross, Monday, February 23, 2009.

Inman News

(This is Part 2 of a two-part series. See Part 1.)

Where should you concentrate your marketing efforts in 2009? What strategies work with today's consumers and which ones should be discarded? The NAR Profile of Home Buyers and Sellers for 2008 provides some important clues that you cannot afford to ignore.

1. Increase your online advertising budget
If you're throwing your money into newspaper advertising, magazines or buying guides, you may want to shift some of those print advertising dollars to online advertising. According to the survey, only 1 percent of consumers found their agent through the newspaper, Yellow Pages, direct mail, or specialty advertising such as calendars and magnets. Furthermore, the number of people finding their homes through a newspaper, a home book or magazine, or directly through the sellers declined by 50 percent. Part of this is due to how people begin their real estate search. Eleven times more buyers now begin their search process on the Internet (33 percent) than they do in print (3 percent).

2. Fewer buyers use real estate agents to locate their homes
In 2001, 48 percent of all buyers found the home they purchased through a real estate agent, compared with 38 percent in 2008. During the same period, the number of buyers finding their home online rose from 8 percent to 32 percent. Nevertheless, the number of people who found their homes through other traditional approaches has remained stable since 2001. Fifteen percent of all buyers found the home they purchased from a yard sign or an open house sign. Another 7 percent to 8 percent located their home through a friend, relative or neighbor. Bottom line: Put your advertising dollars into Web marketing while continuing to market your listings using yard signs, open house, circle prospecting and referral strategies.

3. Internet usage trends
According to the survey, "Eighty-seven percent of home buyers used the Internet to search for homes, up from 71 percent five years ago. Not only has the trend in overall usage risen, but the percent of buyers using the Internet frequently increased from 42 percent in 2003 to 69 percent in 2008." Even though buyers actively search for homes on the Internet, a whopping 77 percent then drove by or viewed the home in person.

4. Value of Web site features
Buyers overwhelmingly cited that photos (86 percent) coupled with detailed information (84 percent) and virtual tours (68 percent) were the most useful Web site features to them. Two studies conducted by Point2Agent in 2007 and 2008 showed that having 16 photos (as opposed to 15 photos), resulted in 33 percent more page views. Based upon the Point2Agent study, the optimum number of photos for lead conversion is a minimum of 20.

5. Your local MLS Web site trumps all competitors
While social networking can help you build your online reputation, the best place to display your listings for maximum exposure is still your local MLS Web site. Only 1 percent of all buyers surveyed used Facebook, MySpace, YouTube or other social networking sites to locate properties. In contrast, 60 percent used the local MLS Web site, compared with 48 percent using Realtor.com. Individual agent Web sites (43 percent) garnered nearly as much traffic as brokerage sites (46 percent). To reach the greatest number of potential buyers, market your listings in all of these venues.

6. Disintermediation is dead
A few years ago, Web marketers proclaimed that the Web would eliminate the need for real estate agents (disintermediation). The exact opposite has occurred. In 2001, 69 percent of all buyers purchased their home through a real estate agent or broker. In 2008, that number was 81 percent.

7. Foreclosure sales represent only a small fraction of all transactions
Despite the nonstop press about foreclosures and short sales being the only types of transactions currently closing, only 3 percent of purchasers acquired their homes through a foreclosure or trustee sale. Nevertheless, that's still triple the 1 percent number from 2001 through 2007.

8. What buyers want most from real estate agents
A large proportion of the industry was worried that the buying public would have no need for agents once they had access to MLS information. Surprisingly, 48 percent of all buyers indicated that their top reason for working with an agent was to find the right home to purchase. In terms of what buyers perceived as being beneficial, the top three items were helping the buyer understand the purchase process, pointing out unnoticed faults or features, and negotiating better terms. The characteristics they found most valuable in their agent were honesty and integrity (97 percent), knowledge of the purchase process (94 percent), responsiveness (93 percent), knowledge of the real estate market (92 percent), and communication and negotiation skills (83 percent). Technology skills were considered to be "very important" by only 37 percent of the respondents.

9. The saddest finding of all
A whopping 70 percent of all buyers said that they would "definitely recommend" their agent to other buyers, and another 18 percent said that they would "probably recommend" their agent. Sadly, only 11 percent of all buyers said that they used the previous agent to buy or sell a home, while 43 percent relied on a referral from a friend, neighbor or relative. This finding underlines the importance of staying in contact with past clients, especially for both repeat and referral business.

Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, trainer and author of "Real Estate Dough: Your Recipe for Real Estate Success" and other books. You can reach her at Bernice@RealEstateCoach.com.

Who pays for what?

The Seller generally pays for...

• Real Estate Commission
• Escrow Fees (50%)
• Document Preparation Fee
• Zone Disclosure Report
• Payoff of All Loans in Seller's Name
• Interest Accrued to Lender Being Paid Off
• Termite Inspection (according to contract)
• Home Warranty (according to contract)
• Any Judgements, Tax Liens, etc. Against the Seller
• Tax Proration
• Any Unpaid Homeowner's Dues
• Any Bonds or Assessments (Check Contract)
• Any & All Delinquent Taxes
• Homeowner's Title Insurance Policy Premium
• Homeowner's Association Transfer Fee - Doc Fees
• Documentary Transfer Tax ($1.10 per $1000 of Sale)
• Any Loan Fees Required by Buyer's Lender
  (Government Loans)
• Recording Charges to Clear all Documents of Record
  Against Seller

The Buyers generally pays for...

• Title Insurance Premium for Lender's Policy
• Escrow Fee (50%)
• Document Preparation (if applicable)
• Recording Charges for all Documents in Buyer's Name
• Termite (according to contract)
• All New Loan Charges (except those paid by seller) -
  Government Loans
• Interest on New Loan from Date of Funding to 30
  Days Prior to First Payment Date
• Assumption/Change of Records Fee for Take-over
  of Existing Loan
• Inspection Fees (proper inspection, roofing,
  geological, etc.)
• Fire Insurance Premium (1st year)
• Next Month's HOA Fee(s)

What's the purpose of title insurance and why should I have to pay for it?

A recent question from one of my many first time home buyers....

ANSWER:
When you buy a home, you're really buying "title" to the property--the right to occupy and use the space. And "title" can be limited by the rights and claims of others, which can infringe or even nullify your rights. Such hazards include:

- Deeds, trusts, or will with incorrect wording or names
- Incorrect notary acknowledgements
- Outstanding judgements, liens, or loans against the property
- Pending legal action against the property impacting the buyer
- Forged deeds
- Invalid instruments executed under an expired or bogus power of attorney
- Unknown heir of a previous owner claiming ownership
- Mistakes in public record

What protects you from these types of title hazards? Title insurance. The "owner's policy" is a one-time fee that protects you and your heirs. Good News: In southern California, this fee is traditionally paid by the seller.

The "lender's policy" is a protection that all lenders require to make a loan against your property. That much lower fee is traditionally paid by the buyer.

Instead of short sale, they should call it, a "Long, Drawn out, Frustrating, Difficult Sale" because the process is anything but "Short". In San Diego, the short sale process can be extremely frustrating when you are representing a buyer or a seller. On the other hand, if you have patience, it can be extremely rewarding experience. If you are a seller and the bank agrees to a short sale, it can be an awesome experience by helping the seller save his credit rating by using the short sale process rather than getting hit by a damaging foreclosure mark. On the other hand, a patient buyer can get a super great deal on a property if they are willing to jump through all the lender hoops.

The average process here in San Diego takes about 90 days from offer submission to close. It all depends on the lender. Once you submit an offer to the lender, it takes an average of 6-8 weeks to have someone assigned by the bank to look at the offers. Once they choose to accept an offer, it can take several more weeks of negotiation by the Realtors, Buyers and Sellers to finally close the deal. For those willing to wait it out, it can mean a successful sale.

I implemented a new search feature on one of my website that now allows my clients to Search for Short Sales and Foreclosures in San Diego and all other properties in the MLS at www.FreeHomeSearches.com.