Oct 28, 2011
Blast From the Past
A Rare Find?
Oct 16, 2011
REALTOR vs. Used Car Salesman
Why compare the two? Used car salesmen are not bad people, the article is about the perception of the two. It's not who is better.
The reason for this post:
Realtors often are the sheep in wolves clothing. I feel like the general public perceives us as sales people as opposed to a service provider who guides his client through a real estate transaction.
The Salesman:
A salesman's job is to qualify you to see if you can make the purchase. Then they find out what makes you tick. They find out what they can say to make you buy a car TODAY. There are no steering laws or blockbusting laws. There is no legal obligation for them to act in your best interest. When you sit across from the car salesman, they will take out a piece of paper, do some fuzzy math to calculate the dealer's margin and slide the paper in front of you to show you what you will be paying for the car. You, the customer get the feeling that you are working against this person to get a better deal as opposed to trying to find a win-win for both parties.
The Realtor:
What the general public doesn't understand about a Realtor is that they abide by a code of ethics and are legally obligated to protect their fiduciary (the buyer or seller client). Realtors are required to be confidential, accountable, obedient, loyal, and disclose any material facts that impact their client. Instead of working with a salesman type, you have an agent who has helped many others like you working right along side you to guide you through the process. Below are the fiduciary responsibilities of a real estate agent.
Accountability - Your Realtor should be there for you when you need them, or at least be available when they say they will.
Care & Confidentiality - Your Realtor should not disclose any information about you or your ability to purchase without your permission within his/her legal ability
Obedience - Your Realtor should do whatever you tell them and not take any action that you tell him/her not to take. (example: no showings until further notice, waiting to submit an offer until the morning, etc.)
Loyalty - Your Realtor should always be honest with you and act in your best interest
Disclosure - Your Realtor should disclose to you any facts that they have been given so you can make the best possible home buying or selling decision. (example: you're buying a house and there are multiple offers already)
As you can see, the distinct difference between a Realtor and a Salesman is the degree of service and care you receive. Did this article create a paradigm shift or change in perception? If so make comments below.
Hopefully if you live in Kentucky or the Greater Cincinnati area, you have chosen an agent that truly cares about your satisfaction and making sure your sale or purchase goes seamlessly. If not my contact information is below.
Aaron Smith
(859) 360-9997
AaronSmithHomes@Gmail.com
Search the Northern Kentucky MLS
The reason for this post:
Realtors often are the sheep in wolves clothing. I feel like the general public perceives us as sales people as opposed to a service provider who guides his client through a real estate transaction.
The Salesman:
A salesman's job is to qualify you to see if you can make the purchase. Then they find out what makes you tick. They find out what they can say to make you buy a car TODAY. There are no steering laws or blockbusting laws. There is no legal obligation for them to act in your best interest. When you sit across from the car salesman, they will take out a piece of paper, do some fuzzy math to calculate the dealer's margin and slide the paper in front of you to show you what you will be paying for the car. You, the customer get the feeling that you are working against this person to get a better deal as opposed to trying to find a win-win for both parties.
The Realtor:
What the general public doesn't understand about a Realtor is that they abide by a code of ethics and are legally obligated to protect their fiduciary (the buyer or seller client). Realtors are required to be confidential, accountable, obedient, loyal, and disclose any material facts that impact their client. Instead of working with a salesman type, you have an agent who has helped many others like you working right along side you to guide you through the process. Below are the fiduciary responsibilities of a real estate agent.
Accountability - Your Realtor should be there for you when you need them, or at least be available when they say they will.
Care & Confidentiality - Your Realtor should not disclose any information about you or your ability to purchase without your permission within his/her legal ability
Obedience - Your Realtor should do whatever you tell them and not take any action that you tell him/her not to take. (example: no showings until further notice, waiting to submit an offer until the morning, etc.)
Loyalty - Your Realtor should always be honest with you and act in your best interest
Disclosure - Your Realtor should disclose to you any facts that they have been given so you can make the best possible home buying or selling decision. (example: you're buying a house and there are multiple offers already)
As you can see, the distinct difference between a Realtor and a Salesman is the degree of service and care you receive. Did this article create a paradigm shift or change in perception? If so make comments below.
Hopefully if you live in Kentucky or the Greater Cincinnati area, you have chosen an agent that truly cares about your satisfaction and making sure your sale or purchase goes seamlessly. If not my contact information is below.
Aaron Smith
(859) 360-9997
AaronSmithHomes@Gmail.com
Search the Northern Kentucky MLS
Mar 6, 2011
Northern Kentucky Short Sales & Foreclosures
Well, ladies and gentlemen, 2011 is here and the Northern Kentucky housing market is still riddled with short sales and foreclosures a-plenty. Though the foreclosures in our NKY market only account for 4-6% of the listings on the market, they account for about 18-22% of the homes that are selling.
Buyers are calling in by the dozens and wanting to see these much talked about good deals on bank owned and distressed properties. However, buyers are finding out that once you find a short sale or foreclosure that meets your criteria, it may not be that unicorn you were imagining you would find. Most buyers are aware that these properties need some repairs, but what most people don’t know is what could make the process very interesting.
To clarify, a short-sale is a banks method of avoiding the costly process of foreclosure and is not a “short” process. When a homeowner has a hardship, whether it be a job loss, medical bills, divorce, loss of income or other reason for falling behind on their house payments, the bank may agree to accept an amount that is short of what is owed on the property; hence the term “short” sale.
A foreclosure is the situation where the bank or government funded entity has already taken back ownership of the house.
There are several things a buyer should know about buying one of these “great deals”. When you are shopping for houses online, look for the words, “subject to third party lender approval”. Because the bank is accepting less for the house than what is owed, the lender has to approve the amount that the seller in default can accept for the house. A good buyer’s agent knows to ask the key questions about the process before making an offer. The key questions help determine the potential price, length of time, and potential issues with a contract.
Read the next sentence very carefully.
THIS THIRD PARTY LENDER APPROVAL PROCESS CAN TAKE A LONG TIME.
If the seller accepts your offer, it does not mean you are out of the woods yet. After the seller accepts your offer, the listing agent submits the file to the lender for review. You may hear back in one day or you may not hear back from the lender for months. Consider yourself lucky if you have the only offer on the table and there are no other buyers with offers being submitted.
The lender may either counter offer, accept, or reject your offer. If there are multiple offers don’t be surprised if the lender comes back and asks for your “best and highest offer.” They will most likely choose the most appealing buyer to negotiate with. Also, don’t be surprised if the lender counter offers with a price that is higher than the house was listed for.
At this point, you may have invested a few days or a few months eagerly awaiting a reply from the unnamed person behind the desk at the bank. Purchasing a short sale can be a very emotional process. It is a process that can wear on the nerves of the impatient buyer and can cause a lot of mixed feelings about the entire home buying process all together.
The properties that have already been foreclosed on can be a much faster and smoother process. Not to mention, that there is ZERO emotion involved on the sellers part. Once a bank takes back a house through the process of foreclosure, they know what the have invested in the property, what it appraises for and how much they would sell for. This is much different from a seller who has spent years in the property and has put in countless hours of work and has made a lifetime of memories who wants to overprice their house.
I’m not at all implying that purchasing a short sale is a bad way to go. My point is that if you must purchase a short-sale property, be prepared for the unexpected. Short sale properties generally carry lower prices because of the time it takes and the uncertainty that comes along with the process.
If you are looking for an experienced agent in buying a home, call or email me and I would be glad to assist you in buying your next home.
Aaron Smith
(859) 360.9997
AaronSmithHomes@gmail.com
Search the MLS in Northern Kentucky
Buyers are calling in by the dozens and wanting to see these much talked about good deals on bank owned and distressed properties. However, buyers are finding out that once you find a short sale or foreclosure that meets your criteria, it may not be that unicorn you were imagining you would find. Most buyers are aware that these properties need some repairs, but what most people don’t know is what could make the process very interesting.
To clarify, a short-sale is a banks method of avoiding the costly process of foreclosure and is not a “short” process. When a homeowner has a hardship, whether it be a job loss, medical bills, divorce, loss of income or other reason for falling behind on their house payments, the bank may agree to accept an amount that is short of what is owed on the property; hence the term “short” sale.
A foreclosure is the situation where the bank or government funded entity has already taken back ownership of the house.
There are several things a buyer should know about buying one of these “great deals”. When you are shopping for houses online, look for the words, “subject to third party lender approval”. Because the bank is accepting less for the house than what is owed, the lender has to approve the amount that the seller in default can accept for the house. A good buyer’s agent knows to ask the key questions about the process before making an offer. The key questions help determine the potential price, length of time, and potential issues with a contract.
Read the next sentence very carefully.
THIS THIRD PARTY LENDER APPROVAL PROCESS CAN TAKE A LONG TIME.
If the seller accepts your offer, it does not mean you are out of the woods yet. After the seller accepts your offer, the listing agent submits the file to the lender for review. You may hear back in one day or you may not hear back from the lender for months. Consider yourself lucky if you have the only offer on the table and there are no other buyers with offers being submitted.
The lender may either counter offer, accept, or reject your offer. If there are multiple offers don’t be surprised if the lender comes back and asks for your “best and highest offer.” They will most likely choose the most appealing buyer to negotiate with. Also, don’t be surprised if the lender counter offers with a price that is higher than the house was listed for.
At this point, you may have invested a few days or a few months eagerly awaiting a reply from the unnamed person behind the desk at the bank. Purchasing a short sale can be a very emotional process. It is a process that can wear on the nerves of the impatient buyer and can cause a lot of mixed feelings about the entire home buying process all together.
The properties that have already been foreclosed on can be a much faster and smoother process. Not to mention, that there is ZERO emotion involved on the sellers part. Once a bank takes back a house through the process of foreclosure, they know what the have invested in the property, what it appraises for and how much they would sell for. This is much different from a seller who has spent years in the property and has put in countless hours of work and has made a lifetime of memories who wants to overprice their house.
I’m not at all implying that purchasing a short sale is a bad way to go. My point is that if you must purchase a short-sale property, be prepared for the unexpected. Short sale properties generally carry lower prices because of the time it takes and the uncertainty that comes along with the process.
If you are looking for an experienced agent in buying a home, call or email me and I would be glad to assist you in buying your next home.
Aaron Smith
(859) 360.9997
AaronSmithHomes@gmail.com
Search the MLS in Northern Kentucky
Mar 3, 2011
How to Price a Home to Sell
When you have decided to put your house on the market, you understand that multiple things go into selling a house. The location of your home is one of the most important aspects of a buyer’s decision to purchase your home. The condition of your home also makes a big difference. If your carpets are in disrepair and your roof is beginning to show signs of age your condition of your house could be deterring potential buyers from making offers.
The single most important thing that can get potential buyers in the door is your asking price. Most home owners have a number in the back of their mind of what they think their house is worth. When you bought the house it needed some work and you put in $2500 worth of granite counter tops and $3500 worth of stainless appliances and $5000 for oak floors. You have owned the house now for 9 years and you have had three promotions since then. It is time for your family to move to a new area or a bigger house and you start by putting your house up for sale.
Whether you plan to use a licensed real estate agent or sell the home yourself, you still have to use a strategic method for coming up with a price with which you want to advertise your house. Your first instinct is to go online and look at what other properties are on the market for and start making comparisons as to whether your house is better or worse. There is nothing wrong with that method if you want to only know the prices of homes that have not sold yet.
A real estate professional (whose job is to study the market and make pricing decisions everyday) uses a slightly different method.
1. Look at comparable properties that have sold.
2. Look at comparable properties that are still on the market. These are direct competitors of yours and will be homes that buyers judge against yours when viewing property.
3. Compare apples to apples. Same bedrooms, same bathrooms, garage spaces, amenities, geographical location, etc.
4. Price at a competitive price to sell quickly and avoid your listing becoming stale on the market.
MOST IMPORTANTLY – Do not fall into the trap of pricing with room for negotiation. You get the most attention for your house in the first 3 weeks of listing it on the market. This is when the most number of buyers will potentially want to see your home and eventually want to purchase your home. If you price too high and know you will come down, you may be missing out on potential buyers who could be seeing your house. You never get a second chance to make a first impression!
***92% of home buyers begin their home search on the internet. Most buyers do not look outside of their set price ranges.***
I tell all of my sellers to price their home at a number that they are willing to accept and leave less room for negotiation. It is better to get multiple offers than no offers at all.
TRUST YOUR REALTOR!!! They are there to tell you where your house will sell and will not sell you short. It all boils down to motivation. Do you really want to sell your home or are you just trying to feel out the market? This is not the time to overprice your house if you are actually trying to sell.
The single most important thing that can get potential buyers in the door is your asking price. Most home owners have a number in the back of their mind of what they think their house is worth. When you bought the house it needed some work and you put in $2500 worth of granite counter tops and $3500 worth of stainless appliances and $5000 for oak floors. You have owned the house now for 9 years and you have had three promotions since then. It is time for your family to move to a new area or a bigger house and you start by putting your house up for sale.
Whether you plan to use a licensed real estate agent or sell the home yourself, you still have to use a strategic method for coming up with a price with which you want to advertise your house. Your first instinct is to go online and look at what other properties are on the market for and start making comparisons as to whether your house is better or worse. There is nothing wrong with that method if you want to only know the prices of homes that have not sold yet.
A real estate professional (whose job is to study the market and make pricing decisions everyday) uses a slightly different method.
1. Look at comparable properties that have sold.
2. Look at comparable properties that are still on the market. These are direct competitors of yours and will be homes that buyers judge against yours when viewing property.
3. Compare apples to apples. Same bedrooms, same bathrooms, garage spaces, amenities, geographical location, etc.
4. Price at a competitive price to sell quickly and avoid your listing becoming stale on the market.
MOST IMPORTANTLY – Do not fall into the trap of pricing with room for negotiation. You get the most attention for your house in the first 3 weeks of listing it on the market. This is when the most number of buyers will potentially want to see your home and eventually want to purchase your home. If you price too high and know you will come down, you may be missing out on potential buyers who could be seeing your house. You never get a second chance to make a first impression!
***92% of home buyers begin their home search on the internet. Most buyers do not look outside of their set price ranges.***
I tell all of my sellers to price their home at a number that they are willing to accept and leave less room for negotiation. It is better to get multiple offers than no offers at all.
TRUST YOUR REALTOR!!! They are there to tell you where your house will sell and will not sell you short. It all boils down to motivation. Do you really want to sell your home or are you just trying to feel out the market? This is not the time to overprice your house if you are actually trying to sell.
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