Buyers Clueless or Liars?

This article is about real estate buyers and their agent's status. If your buyers aren't really telling you the truth about what type of home they want or can afford, it could be because they don't trust their agent with the knowledge. Unfortunately, it's true in many cases. If the buyers aren't convinced that you will work in their best interests with full knowledge of their situation, then they won't tell you everything, everything you need to know. Before any homes are shown, your goal should be to build a high level of trust with them that will allow them to be open and honest with you and give you all of the information you need to help them. This isn't always possible, as there are a lot of people out there who don't trust anybody. But, it's best for you and your buyers to get to the highest level of trust possible.

 

Here is an example from a agent selling Collin County Homes who came into the market after being a tire kicker, subscriber and searcher on his website for years. At last, the timing seemed right, but the buyer was in the lowball offer mood, and there was a lot of difficulty in getting him to see the problem unrealistic offers present, even after two had already resulted in hard feelings and burned bridges with sellers. You would think that now this agents blog site was a good one, holding this buyer on his list for more than two years. This agent did a lot of market statistics and commentary that illustrated a great deal of market knowledge. So, what is the problem?

• It took several failed offers before the buyer finally decided that the time wasn't right to buy and he left.
• This buyer had previous poor experience with buyer's agents in other areas.
• He held a belief that all real estate buyers agents were after the commission first, and serving his needs second.
• The market was slow and the real estate buyer refused to believe that this area wasn't full of motivated sellers ready for any offer.
• The buyer's broker tried to gently lead the buyer to the knowledge that would help them to see their interests were at the top of this agent's list.

Was there no real desire for this buyer to buy because he was also interested in Tarrant County homes and Denton County homes as well? This wasn't the case, as it was a long drive to get to this area, and the buyers did some intensive online studying before making the trip out there. It was only because this buyer believed that the agent couldn't be trusted when he was telling them to raise their offers and posting higher earnest money deposits that they would need, and other facts about that specific market and homes that would help them to actually successfully make a purchase. Work on trust first, and you may find it a pleasure to work with buyers who respect your opinion and truly consider your advice. The clueless part isn't just as regards the first time home buyer. Many experienced buyers who have done multiple transactions in their lives will still not have market specific knowledge that can hurt them in their search for a home.

• Even specific knowledge of how certain listing brokers handle their negotiations on behalf of their sellers
• Local custom as to earnest money and offer presentation.
• Market conditions, absorption rates, and local market trends.
• Specific area knowledge that dictates very different home prices in areas not that far apart geographically.
• Quality information as related to specific builders or subdivisions.

Warning - Don’t Take Every That Come your Way

While you want as many listings as possible, sometimes it is best to turn a listing down. Why? To save yourself a big headache and getting a listing that will not sell because at the end of the day, whether true or not, the sellers will blame your for their home not selling.  Fully explore these below challenges with prospective clients, up front.

1. Does the seller even have the authority to sell the property in the first place?

Before you take the listing, make sure you know who the real, legal seller is. To ascertain this, ask:

•             Who is listed on the deed and has the right to execute the listing and sales contract?

•             If a couple is divorcing ask, who is be the legal decision maker? Or if both parties must sign, is there cooperation?

•             If the owner is deceased, what needs to take place in order for you to have a valid listing and sales contract? Is there an executor or family members who will participate? Are there any liens against the property that will prohibit a title transfer?

A seller contracted with an agent selling Collin County homes to list a property after the agent performed due diligence including running preliminary title and tax records search. The deed was held by James Adams and the agent also met his wife and their young child, James Adams, Jr. The agent successfully sold the property. At closing, it came to light that there were three generations of James Adams, and the true owner was the father of the individual who executed the listing contract and sales contract. The true James Adams attended closing to sign the documents, a big surprise of everyone involved in the transaction.

2. Is the property marketable?

Not all property obstacles can be solved by reducing the asking price. Here are some obstacles that can affect marketability and your decision to take the listing or not. If these obstacles cannot be overcome they sellers may find themselves selling to a we buy houses companies.

If sellers insist on having their property listed right-a-way, make sure to think it all the way through. Delaying the date a property is brought to market can allow time to solve challenges. Increased days on market has an inverse relationship with optimal selling price which hurts the seller.

Location and condition challenges outside your expertise:

Some properties, including Denton County homes have obstacles that need to be overcome in order to bring about a successful transaction. Weigh the selling points against the challenges to determine whether or not you are qualified to handle this particular transaction. When making this assessment consider not only the location, but also any needed repairs, zoning restrictions, and any environmental hazards that might derail the sale. If you do your due diligence upfront and find that the property has special needs outside your area of expertise, it is best to advise the owner to find the appropriate experts.

3. Is the seller motivated?

A good way a seller shows that he is motivated is by accepting and working with market conditions. Not only the most common realistic pricing, there are other factors to help determine a seller’s motivation.

·         Is the seller ready to embrace and take action and listen to your advice?

•             What are the showing instructions and flexibility of the sellers? A seller who restricts the availability and demands a long advance notice is telling you their motivation to sell is low.

•             Is the seller open to your suggestions for staging the home?

Should you ever take an overpriced listing?

This depends on other factors of the property owner’s need and desire to sell. If other factors point to selling motivation the price may become flexible with more information. The question really is: Will the seller commit to evaluation of results of showings and competitive homes movement in the market with a price adjustment as a serious consideration? Any of these circumstances are indicators that you should not take a listing.

More Positive News on The Real Estate Market for 2013

There are many positive terms being attached with the 2013 housing climate. Terms like growth, increase, etc. There are many conversations about the good signals in the housing market which are great and more meaningful as the housing chugs along. There is much chatter about how to capitalize on this opportunity and turn the upward trends into a real profit.

Here are five trends you can profit on in 2013

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1. New Homes

According to a late December Census Bureau report, new home sales are growing at their fastest pace in two years. This report showed that new home sales are up 15% from 2011. As the market recovers, more consumers are using this opportunity to buy the new home of dreams.

 

To make the most of the surge in new homes and generate buyer leads make sure that you are sharing new home listings to catch the attention of these buyers. 2013 could be your best year ever but that won't happen unless you have a plan that includes capitalizing on the market's hottest trends. The surge in new Denton County homes and Tarrant County homes has exceeded the national average.

 

2. Mortgage Approval Rates

The main worry of most buyers is the daunting mortgage qualification process. This has many qualified potential buyers deciding to delaying purchasing Plano homes due to lending anxiety. One trend you can communicate to your buyers that will help encourage your buyers is that mortgage approval rates are up a full 11%. According to a mortgage expert "New mortgage programs with looser and simpler qualification rules have been introduced and in many cases the steps required for a home mortgage approval are more simple for today's mortgage applicants as compared to just a couple of years ago."

Not only are approval rates up but the government has taken some major steps to clear up the ambiguity surrounding the mortgage process. If you're an agent who is targeting and counseling buyer you will need to learn the new mortgage guidelines recently released and connect with a local lender who can help you qualify your leads quickly.

 

3. More Jobs

The sharpest real estate agents are always looking for the next stream of revenue and potential clients. With that said, one trend these agents should not ignore is the growing class of 25 to 34 year olds that are quickly approaching their goal of homeownership. Recent employment numbers showed that increasingly, more 25 to 34 year-olds are working. This group saw an employment rise of almost 2% according to a recent jobs report.

 

There are two things every agent should know about this group. This age bracket is one demographic that should not ever drop off our radar screens, as they are the prime age for making housing purchases. Marketing to this demographic should be continuous. The second fact is that this generation's preferences means that marketing effectively to this group will be by using online recommendations and real time information. As an agent, that means you should make getting and adding recommendations a part of your marketing strategy.

 

4. Relocaters

In a recent article in the Wall Street Journal showed that one of the major fallouts of the housing recovery has been a surge in relocating buyers around the country. While still at a low, for the fourth year in a row the number of folks moving is up, according to the most recent Census data. You need to figure out where your city or region falls on the relocation spectrum.

 

Start positioning yourself as the local area expert online. That includes not only targeted real estate online classified ads but also answering real estate questions that are asked in your area on online forums.

5. Real Estate - Never Boring

 

This next 2013 trend isn't seasonal, but it's of paramount importance. People, in general, are intrigued by real estate and will be asking you a ton of questions when they find out you are a real estate agent.

 

Getting an online visitor and getting them to become your client isn't easy. That's why, this year you should capitalize on the real estate trends and headlines to Grow your exposure in front of potential real estate leads. Share the headlines in your blogs, tweets, and newsletters with your own local twist. This is a great way to show that you are the area expert.

Getting Ready To List Your Home. Start With These Things

No matter if you are selling your home in a traditional manner or via short sale you need to get ready for listing your home. Many listing agents insist that you get your home to be in pristine condition. You can do the obvious things before the listing agent shows up or you can wait until they give you a list of items to complete before the home is marketed. Below I will touch on some of the main items.  

Create Curb Appeal 

Clean up your yard, front, back and sides. You may have some projects that you have been meaning to get around to doing but simply have not had the time. Now you need to make the time. Here are bare basics you should do:  

 

·Weed, rake and mulch.

·Trim trees and bushes in front of your windows.

·Cut dead and low hanging branches from trees.

·Sweep and hose off your sidewalks and driveway.

·Park your extra car in the garage or down the street, not in front of the house.

·Remove trash cans and store them in the side yard or garage.

·Set out a few pots of bright flowers near the front door to add color. 

 

When your agent is listing Tarrant County homes or Denton County homes and they pull up in front of your house, they agent will feel as though you were expecting them and that you are preparing to sell. If you don't do these things a good agent will find a respectful way of telling you what needs to be done to make the home more marketable.  

 

Getting Ready Inside Your Home

DFW Realtors say that you would think it goes without saying that your home should be clean, very clean. But everybody's idea of clean is different, it is subjective. Don't force your agent to put towels over dishes in the sink, pick up pet dishes from the floor or make your beds. At the bare minimum do these things when you are getting ready to list:  

 

·Vacuum and sweep the floors.

·Clean everything off the kitchen counters. Yes, everything including all of your nick knacks.

·Remove the magnets from the refrigerator and your kid's artwork.

·Put away all personal photographs and photos on the walls.

·Make the beds and tuck in sheets.

·Pick up all clothing, toys and other items from the floor and put them away or at least hide them.  

 

If you are packing or have too much stuff try storing all of your extra items in one room to clear up the other rooms for photos. You can also store items in the garage or shed. Almost every home will show better with half of the furniture removed. You may want to consider moving out some of your "extra" furniture, especially if it blocks pathways.  

 

Designate a Spot to Sign the Listing Paperwork

 

Many agents I know are happy to sign a listing agreement with you just about anywhere including the roof of a car. It is much more pleasant and comfortable however, to sit at a dining room or kitchen table. Many agents prefer the dining room over the kitchen or living room. Here are some tips: 

   

·Offer your agent something to drink as they will be doing a lot of answering your questions.

·Keep the cat off the table and from walking on the listing paperwork.

·If you don't understand a particular form, ask your agent to explain it to you completely. If not, this is how mistrust develops and communication breaks down, so don't be afraid to ask questions. If you don't trust your agent enough to answer a question for you, don't hire this particular agent.

·Ask for a copy of everything you sign.

    

When I leave listing appointments I give the sellers a few of my business cards and ask them this trick question. I advise them that when the for sale sign in the yard, passersby might stop and knock on the door. If they do, what should the sellers do? Almost every time the seller will say they would invite them in. Wrong! Don't let these strangers in your home. An agent that comes to show your home will produce a business card for you. If a passerby rings your doorbell, give that person your agent's business card and ask them to call your agent to scheduling a showing.

Home Sellers Talking to Buyers - Not a Good Idea

Many times a home seller will tell their Realtor that they do not want to have a lockbox on their home. No lockbox means much fewer showings and it is a red flag that trouble may lie ahead with these sellers.

 

When a seller talks to buyer’s agent and the buyers, trouble is usually the end result. Sellers many times will say the wrong thing. Buyer's agents are there to gather information and use it against the seller when it comes to negotiation time. Buyers agents who are Realtors are not supposed to talk to the seller in an esthetical manner or a manner that would be deemed unethical. It is important to note that not every agent is a Realtor. Even an smilingly simple question could turn into a complicated answer, which could affect the seller in a bad way.

Questions a Seller Should Not Talk About With a Buyer’s Agent.

Regardless if you are selling Collin County homes or Denton County homes sellers never think that they are saying something that could come back and bite them. They want to be informative and helpful. They can be told to keep their mouths shut but it doesn't do any good. Instead, I would suggest they say something like, “Please discuss that with my agent," as a way to deflect and defuse questions. They can also let the buyer and their buyer's agent know that they are not being impolite but that their listing agent has advised them to not answer any questions. When it comes to Tarrant County homes here are questions that can cause problems in a transaction if the seller talks to the buyer about them:

·         How many offers have you received on the home?

If you have received more than one offer and your home is not sold, buyers will be wonder if there is something wrong with you or the home. If you haven't received any offers, they will also think that something may be wrong.

·         How long have you lived in this home?

If you've lived in the home for only a couple of years or so, the buyers might think you're selling because the home isn't what you thought it would be when you bought it. If you've lived in the home for a long time, buyers may think you have a lot of equity that you don't know what to do with it.

·         How much was the highest offer?

That's the thinking behind this question. Sometimes, it is slipped in so quickly that a seller will respond without realizing it. You don't ever want to show your hand.

·         How fast do you need to move?

If you tell the buyer that your husband’s job has been transferred out of state and you wished you had sold last month, you are telling the buyers that you are desperate for an offer. Usually, desperate sellers often get hit with lowball offers.

·         Where are you moving to?

If you're moving into a less expensive area, there are buyers that will think they don't have to pay the list price because they might decide you don't need the money. If you're moving to a higher priced community, buyers could be afraid to make an offer on your home because they worry it won't meet your monetary requirements.

·         Why are you selling your home?

To avoid a lowball offer don’t even think about answering this question. Even joking about it can backfire. Agents and buyers will judge you on this question and try to use the information against you. Don't answer it.

·         What are your neighbors like?

People can be very judgmental. Don't give a prospective buyer a reason to eliminate your home from their list. If they want to know about the neighbors, let them go talk to them without your input. Unless there’s something about your neighbors that may be construed as a material fact just don’t talk about them.

What repairs have you made to the house?

When selling your home most jurisdictions require you to fill out and sign a seller’s disclosure that you must make available to prospective buyers. This disclosure will list the repairs you have made to the home so there is no reason to discuss them prior to an offer. Sellers often remember repairs as costing more than the repairs really cost. In many cases, the cost of a repair does not add much to the value of the home. You don't want a buyer to wonder if your home is falling apart at its seams. This is why sellers should not be home when a buyer comes through to view it. Not only does a seller's absence allow the buyer privacy and time to consider the home as their own, which they can't do if a seller is present during the showing, but it also prevents the buyer from talking to the seller and it stops the buyers' agent from talking to the seller. Let your agent talk to the buyer's agent. That's why you have hired the agent to represent you in your transaction. Let your agent do their job.

County Real Estate Markets - Hot, Cold, Neutral

When most people decide to sell or buy a home in the County, very few stop to look at the marketplace to see if the market is conducive to their home selling goals. This is probably because most people tend to think of their home as a place to live and not as an asset, an investment.

Neutral Real Estate Markets

These neutral markets are balanced. Generally, interest rates for Tarrant County Homes are low and affordable and the number of buyers and sellers in the marketplace are about equal. The scales don't move quickly in either direction, meaning the market is normal without experiencing volatile swings.

 

Signs of a Neutral Market

• Three to six months of inventory is on the market.
• Inventory is normal as compared to previous normal months.
• Comparable sale prices are close to active listing prices.
• Sales numbers are stabilized.
• Median sales prices are even.
• For Sale signs are replaced with pending or sold signs within 30 to 45 days.

Real Estate Markets - Buyers

If you are a looking to a purchase Collin County Homes or Denton County Homes in a buyer's market this is the best financial market in which to buy. This is because there are more homes available for sale than buyers to purchase all of the homes. Buyers have many more homes to choose from, which increases the odds a buyer will find their perfect home. In slow real estate markets, serious sellers are often ready and willing to negotiate. This means you can probably buy a home for less than the list price, and the seller might be willing to pay some or all of your closing costs.

Signs of a Buyer's Market

• Comparable sale prices are higher than active listing prices.
• Inventory is high as compared to previous months.
• More than six months of inventory is currently on the market.
• Fewer buyers are purchasing, resulting in lower closed sale numbers.
• Median sales prices are declining.
• For Sale signs are staying up longer, resulting in longer "Days on Market".

How to Determine the Months of Inventory

1. Find the total number of sold or closed transactions for last month.
2. Find the total number of active listings on the market last month.
3. Divide the number of total listings by the number of total sales, which results in the number of months of inventory remaining.

As an example, in a buyer's market, there were 3,563 listings available over a given 30 day period. During that time period, 2,134 sales closed. That leaves 7.5 months of inventory remaining on the market, making that marketplace a buyer's market.

 

Seller's Real Estate Markets

If you are a home owner who wants or has to sell a house in a seller's real estate market, this is the best financial market in which to sell. This is because there are more home buyers than available homes. In a strong real estate market often times serious buyers are often willing to pay more than list price. This means you should be able to sell your home quickly and possibly for more than you ask for it.

 

Signs of a Seller's Market

• Comparable sale prices are lower than active listing prices.
• Median sales prices are increasing.
• Inventory is very low as compared to previous months.
• Less than six months of inventory is on the market.
• More buyers are purchasing, resulting in higher closed sale numbers.
• For Sale signs are up for a few days before a pending or sold sign is attached.

Tips for Winning Over Springtime Dallas Home Buyers

 The season of Spring is generally the best time to sell Dallas Real Estate. Regardless of whether it is a seller’s market or buyer’s market sales activity generally rises in the Spring.  This happens because the largest number of buyers are actively searching for a new home during the months of April, May and June. If your home has been sitting on the market since the holidays, or longer, take it off the market for a little while.  Wait at least a few weeks before putting your house back on the market.  Few buyers are going to look at your home in the Spring if the Days on Market (DOM) show that it has been on the market for several months. Buyers will generally gravitate toward new listings. Blow are several things you can do to improve your odds that your home will stand out among the many new listings that flood the spring real estate market. These tips apply to all homes including Tarrant County homes and Denton County Homes.

2) Rake Your Yard, Pull Your Weed and Trim Your Bushes

Put down fresh mulch, rake out the leaves and debris from your lawn. Don't let overgrown bushes block the windows or path to the entrance. Cutting bushes and tree limbs will let the sun inside and showcase the exterior of your home.

2) Clean Windows and Polish Mirrors

Clean and sparkle sells homes. Potential buyers may not realize why your home seems so inviting to them but they will feel drawn to it if the windows are mirrors are spotless. Cleaning your house is the first step to preparing it for sale..

3) Cut Your Lawn Diagonally and Edge the Lawn

Manicured lawns that are edged tells potential buyers that you pay attention to the details and upkeep of the property.

4) Plant Flowers with Plenty of Color

Colored flowers and plants stimulate home buying urges. After the winter season, everyone is anxious to see the signs of spring.  Tulips and daffodils generate feelings of happiness and contentment. Take extra care and plant extra flowers and plants near the entrance of the home.

5) Clean the Curtains and Blinds and Let the Light in

Send your window coverings to the dry cleaners or wash, dry and press. Toss blinds into a soapy bathtub for a quick wash. Get rid of all accumulated dust and spider webs. Crisp linens and a spring-time breeze through the windows invites the season inside.

6) Polish Floors and Clean Carpets

Your hardwood floors should be cleaned and refinished, if necessary. Make your ceramic and linoleum floors shine. Get all carpets and rugs professionally cleaned.

7) Put Fresh Smelling Flowers in the House

Natural flower scents are more appealing than artificial and trigger fewer allergies.  Professional home stagers bring color and fragrance into the home.

8) Utilize Accessories Like Towels, Throws, Pillows in Light Colors

Even if it means buying replacement items, towels, linens, throws and sofa pillows are inexpensive accents you can buy. In soft spring colors, they will light up a room. Layer towels on bathroom towel racks and place rolled wash cloths on the counters.

9) Use a Welcome Matt at the Homes Entrance

Wherever you live, spring weather is often unpredictable. In some states, it can be 80 degrees one day and snowing the next. If it's raining, give buyers a place to place their umbrellas and wipe their feet before entering your home. Some sellers will install plastic runners across carpets to protect it.

10) Put Out Color Fliers That Show Financing Options

Don't be a cheapskate when it comes to your marketing materials. You want potential home buyers to select your flyer among the dozens of others they pick up. Show home buyers how easily they can afford to buy your home by showing them two or three financing options. The first thing on buyer's minds when considering a home purchase is the monthly mortgage payment. Don't make them guess, put it in front of them

11) Use Color Photos for Print Advertising

Spend a little more money on newspaper and online advertising by using color photographs in your advertising.  It’s like they say, a picture is worth a 1,000 words. Look through your photo galleries for a seasonal photograph that shows your home as it looks in different seasons.

12) Put Out Refreshments for Buyers Looking at Your Home

Touring lots of homes tends to make buyers hungry. Give them a little snack.  It will give buyers an opportunity to linger in your kitchen and get a better feel for the home. You want them to get the feeling it is their home