Real Estate Tidbits

Looking for Even More Real Estate Tips, Tricks & Techniques?

Every few days, I write an article for this real estate blog that I hope will be beneficial for all of you who read it. So far, our audience includes a variety of readers - buyers, sellers, investors, homeowners, those who are thinking about doing something with real estate and others who are just curious about the market.

I hope you find the information on this blog helpful and if you'd like to engage in the conversation, please do so by clicking on the Comments link below each article/post.

This post is simply to remind you that we have a main website for our real estate business. This site, too, has lots of great real estate information including the ability to search for homes all over the Sacramento, El Dorado & Placer areas. And, of course, this site includes some great tips, tricks and techniques for buying and selling real estate.

Please visit us at www.RingTheRinkers.com.

The Difference Between a REALTOR and a Real Estate Agent

When someone looks for assistance in buying or selling property, it's important to remember that the terms "real estate agent" and "REALTOR" are NOT synonymous. Realtors can provide an extra level of service and expertise.

To be a Realtor, a person must be a member of the National Association of Realtors (NAR).  NAR is a non-profit trade organization that promotes real estate information, education and professional standards. The National Association of Realtors also has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible. NAR members adhere to a strict code of ethics founded on the principle of providing fair and honest service to all consumers. REALTORS are held to a higher standard than are non-NAR real estate agents.

In addition, REALTOR business practices are monitored at local board levels. Arbitration and disciplinary systems are in place to address complaints from the public or board members. This local oversight keeps REALTORS directly accountable to the individual consumers they serve and therefore the consumer is more likely to find better service and accountability by using a REALTOR.

So, the next time you're speaking with an agent, make sure he/she is a REALTOR and not just a real estate agent.

Also read:

• The BEST Way to Choose a Real Estate Agent to Sell Your Property
• 5 Questions Sellers MUST Ask Before Making a Decision
• Frequently-Asked Questions

5 Questions Sellers MUST Ask Before Making a Decision

When considering hiring an agent to sell your home, be sure and ask the following questions. Of course, there are many more questions savvy sellers should ask, but these five are critically-important.

1. What is your listing price to sales price ratio and how does it compare to the market average? (this will tell you what percentage of the listing price the agent usually gets for their sellers)
2. What is your listing "days on market" average and how does it compare to the market average? (this will tell you how fast the agent usually sells homes and how he/she compares with other agents)
3. How often do your listings "expire" and not sell? (this tells you how successful the agent is in getting homes sold at all)
4. How will you market my home and, specifically, how on the internet? (this will tell you how technically-proficient the agent is and whether or not they utilize the appropriate internet-based marketing - you must insist on broad, comprehensive marketing)
5. Do you offer a "Cancel Anytime" Listing Agreement? (you don't want to be tied into a long, binding contract)

As I said above, there are many more questions to ask to ensure you get the best, most professional agent (and, of course, the one who will net you the money for your home). If you'd like the report entitled "Don't Even Think of Listing Your Home Until You've Asked These Questions of Your Agent" then give us a call. We'll be happy to email it or mail it to you right away.

Also see:

• Frequently-Asked Questions
• The BEST Way to Choose a Real Estate Agent to Sell Your Property
• Flexible Real Estate Commissions

The BEST Way to Choose a Real Estate Agent to Sell Your Property

The most important step in selling real estate is choosing the best real estate agent for the job. Choosing the wrong agent can end up costing the seller big bucks in lost profits, not to mention weeks or months of frustration and, in the end, maybe the property doesn't even sell.

As we've discussed in previous articles, some of the WORST REASONS to choose an agent are:

• the agent suggested a high listing price
• the agent offered a low commission
• the agent who is a friend or family member
• the agent is a "discount" agent who offers deeply-discounted fees

(If you haven't yet reviewed How NOT to Choose a Real Estate Agent, part 1 and part 2, I encourage you to do so.)

OK, so if we know the criteria NOT to use when hiring a real estate agent, just what SHOULD a seller consider to ensure they hire the best agent to sell their property. Well, most savvy sellers I've talked with over the years choose their real estate agents based on the following criteria:

• The agent's track record of success (how does the agent's record compare with the market average? does the agent sell more homes than the average agent? does the agent typically net more money for his/her sellers than the market average? does the agent typically sell faster than the average agent? does the agent get listings SOLD or does he/she have a high-rate of "expired" listings?)
• The agent's services and marketing plan (must be comprehensive and focused on getting the property sold fast and for absolute top dollar)
• Does the seller like and trust the agent (selling real estate is a major transaction; it's important to like and trust the person with whom the seller will be working so closely)
• The seller's gut feel (yes, sellers must "feel" good about the agent and know the agent will act in the seller's best interests)

One more thing I'd add to this list is "does the agent utilize current technology" in his/her business. Obviously, technology plays a major role in real estate. The internet is where most buyers and sellers go to research real estate and it's vitally important that the agent is comfortable and proficient with using technology. Sellers must ensure the agent they choose is heavily technology-focused when marketing the seller's property.

Oh, and one more... the agent should be full-time in real estate. Sellers want someone who is dedicated to working real estate and not someone who works part-time in real estate and part- or full-time in another job.

Using the criteria discussed in this article, sellers can ensure they get the best agent for their sale. The bottom line should be a faster sale with a higher net profit and minimal hassle.

Other articles to review:

• What Kind of Marketing Should Sellers Expect from Their Agents? Part 1
• What Kind of Marketing Should Sellers Expect from Their Agents? Part 2
• Frequently-Asked Questions

How NOT to Choose a Real Estate Agent to Sell Your Home, Part 2

In Part 1 of this series, we discussed two of the mistakes some sellers make when choosing an agent and how to ensure they choose the best agent to sell their home.

Even though many sellers do use the following criteria when looking at an agent, they are two of the worst reasons to choose an agent:

The agent who is your friend: Oh... this one costs sellers sooooo much money. I've listed many properties over the years after a "friend" had it listed and it didn't sell. Unfortunately, sellers will often look to a friend who is a Realtor and think the friend will give them a break on the commission and is the best person to sell their property. While some of these situations work out fine, I've been told by many sellers that it's just not worth risking the relationship. Many relationships have been ruined or seriously damaged when trying to mix friendship and business. When "friends" do business together, especially in a Realtor-client relationship, bad decisions are often made that end up costing the seller time and money... and often the home doesn't sell... or it sells for much less than it should have sold for if better decisions were made from the start (like NOT hiring the friend). I strongly recommend that sellers seriously consider the challenges that can develop in this area. Preserve the friendship and hire someone else.

The agent is a "discount" agent (similar to the reason above): This can be the worst reason of all.  Think about it... if you were being sued for several hundred thousand dollars, let's say, would you hire the attorney who is the cheapest? Would you want a "bargain" or "discount" attorney? Of course, not. If you needed heart surgery, would you want the "discount" surgeon? Of course, not! You wouldn't trust heart surgery to someone who discounts their services to get business. So, if you wouldn't hire a discount attorney or a discount surgeon, why in the world would you hire a discount agent?

Keep an eye out for our article on How Best to Choose Your Agent... coming soon.

Previous posts you should check out:

• How NOT to Choose a Real Estate Agent to Sell Your Home, Part 1
• What Kind of Marketing Should Sellers Expect from Their Agents? Part 1
• What Kind of Marketing Should Sellers Expect from Their Agents? Part 2
• When It Comes to Pricing, The Market is Always Right

How NOT to Choose a Real Estate Agent to Sell Your Home, Part 1

When hiring a Realtor, there are many things to consider to ensure you get the best person for the job. This post will discuss some of the mistakes sellers make when choosing an agent and cover those areas that sellers should NOT use as criteria when deciding on the best agent.

Even though many sellers do use the following criteria when looking at an agent, they are the worst sole reasons to choose your agent:

The agent who tells you the highest listing price for your home: Often, agents who really want to get your listing will tell you a high estimated value for your home just so you'll hire them. The agent takes the listing at that high price, knowing it won't sell. Then, a few weeks later, they tell you that a price reduction is required... maybe several price reductions end up being needed.  This mistake can end up costing the seller big bucks. The longer a home sits on the market at too high a price, the less the seller will probably get for it, since buyers tend to pay less for a home that's been on the market a long time. SOLUTION: the seller should choose the agent who can best justify the price they are recommending, not the agent who just offers to list at the highest price. Sellers should be very cautious of the "highest listing price" agent - especially in the current real estate market. Sellers who price their homes too high in this market, pay dearly in lost profits. Of course, eventual price reductions may indeed be necessary, but based on a market-appropriate starting price.

The agent who charges the lowest commission to sell your home: This can be a touchy subject with sellers. Of course, we all want to get the "best deal" but, in real estate, paying a lower commission can often lead to making less profit. Why? It's simple, the lower-commission agents often charge less for a reason... and that reason may end up costing the seller thousands, or tens of thousands, in lost profits. Think of it this way: Let's say you're shopping for a new car that typically sells for around $35,000. You find one that's priced at only $20,000 - what a deal, right? Would you automatically buy it just because it's so cheap? Or, would you wonder WHY it's so cheap? Why the drastic discount from the norm? Wouldn't you be suspicious of the low price tag and wonder if something's wrong with it? I know I would. And, most people I know think the same way. The best agents usually don't discount their services. Why? Because they're worth it... in service, support, experience, knowledge and results. They often end up increasing the net profits for their sellers in spite of not discounting their fees. SOLUTION: Don't choose an agent based on a cheap commission. It may cost a seller dearly in the end. Do look, however, for an agent with a flexible-rate commission structure. If the agent doesn't offer a flexible commission structure, based on HOW the property sells, then look for another agent.

Of course, the bottom line here is to choose an agent based on his/her track record, marketing plan and their ability to get your property sold in today's changing marketplace. Also, you'll need to feel good about the agent. That "gut feeling" will certainly help you in choosing the best agent for you and your property.

Also, see Part 2 of this series.

Want to Buy a Home? How Much Do You Qualify For?

If you're considering purchasing a home, or any other real estate, it's important you first get an idea of how much you can afford. When I work with buyers, I strongly encourage them to speak with a lender to see how much of a home they can afford - purchase price and monthly payment.

If you're curious how much you might qualify for, you can either call me at (916) 241-8000 or (530) 677-1332 and I can put you in touch with a reputable, trustworthy lender, or you can go online to start the process.

Here's a great site to check out: www.CanIQualifyNow.com.

Either way, there's absolutely no obligation and no cost to seeing how much you may qualify for in today's market.

As I have mentioned in previous articles on this blog, now is an absolutely phenomenal time to buy real estate. Prices are down, inventories are at record levels, and interest rates are at near-historic lows.

What Kind of Marketing Should Sellers Expect from Their Agents? Part 2

In Part 1, I discussed how sellers must ensure they hire an agent who utilizes multiple forms of marketing to ensure the seller's property gets exposed to the largest market possible. What worked yesterday doesn't necessarily work today - just planting a sign in the ground and sticking the listing in MLS won't expose the seller's listing to everyone who needs to see it.

Sellers must demand their agents "overwhelm" the marketplace to ensure the widest possible exposure. The more buyers who see a property will increase the likelihood of the "right" buyer seeing it - thus the increased potential that an acceptable offer will be received and a closed transaction will be the result.

In addition to the listing of marketing tools and techniques discussed in Part 1, here are additional marketing methods that a seller should require from his/her agent:

• 24-hour IVR (interactive voice response) hotline (a toll-free phone number with a dedicated "talking-ad" for the seller's property, usually advertised on the flyers and websites)
• "Just Listed" postcard marketing (sent to area homes and potential buyers)
• Email marketing to local agents (the buyers usually are represented by agents, so the agents must be marketed to)
• Custom home book (a customized property binder available at the property that details area demographics, schools, community information, etc.)
• Realtor networking (Realtors know other Realtors who have buyers who may be interested in the seller's listing)
• Active buyer search (agents need to get on the phone and search for buyers)
• Real estate Blog marketing (like the blog you are currently reading, blogging is becoming more and more popular - your listing should be marketed on a blog, too)
• TV marketing (it's becoming more popular to advertise "on demand" on cable)

Notice than open houses and newspaper advertising weren't covered here. I did that on purpose. Studies show that newspaper ads don't sell homes like they used to. People are heading to the classifieds section of the paper less and less and heading to the internet more and more. The internet is where a strong presence is needed.

As for open houses, they have their place and can work. However, usually a home doesn't sell because of an open house. If your agent does them, that's great; if not, you're not losing out.

In reviewing parts 1 and 2 of this topic, you'll notice many of the marketing tools involve the internet. That is by design. The internet is where the majority of buyers begin their property search. It's vitally important that you hire a Realtor with strong experience in marketing online and with a strong track record of closed sales.

If you have any comments about this article or any other on our real estate blog, or if you have an idea for other information you'd like to see discussed, please contact us directly or leave a comment on our blog.

What Kind of Marketing Should Sellers Expect from Their Agents? Part 1

In today's competitive real estate marketplace, or in any market for that matter, sellers must ensure they choose a Realtor who has a strong marketing plan for exposing the seller's property to the market. In the past, with limited marketing avenues, many Realtors got lazy and did the absolute minimum to expose their seller's homes. In the hot seller market of 2000-2005, Realtors really didn't have to do much to get homes sold. Often, an MLS listing was all that was necessary to find a buyer willing to pay top dollar for a property.

Today, in a buyers market, an MLS listing is usually not enough. Sellers need much more broad exposure to the marketplace to find the right buyers. And, with the internet intersecting into the real estate market, it's important that Realtors use the most current internet technologies to maximize property exposure when selling homes and other properties.

In this post, I will provide a few of the necessary marketing tools that sellers must demand of their agents to ensure their properties get the most exposure possible in today's changing market.

In my mind, these are not optional avenues of marketing, but necessities:

• Multiple Listing Service (MLS)
• For Sale sign
• Property flyers (full color, quality flyers - not the cheesy black & white photocopies)
• Customized dedicated property website (ie. www.propertyaddress.com so buyers can get plenty of information about the property. Sample of our sites: www.2504StratfordCircle.com)
• Virtual tours (buyers want to see more than just static photos - video and music enhance the experience and attract more buyers)
• Advertising on Realtor.com and on MANY, MANY other websites (buyers are everywhere, so your property should be advertised where those buyers are looking - and they're looking at lots of websites)

Of course, there are more marketing techniques and tools that I'll cover in Part 2 of this topic.

The bottom line here, of course, is for sellers to ensure prospective agents utilize MULTIPLE MARKETING TOOLS when listing and selling their homes. Ensure your agent is technologically-savvy and experienced in multiple marketing disciplines.

In our business, our sellers benefit from all the above marketing tools and much more, and ultimately we achieve the goal of getting our sellers top dollar and a timely sale.

Click here for What Kind of Marketing Should Sellers Expect from Their Agents? Part 2

Buying a Home? Disclosures will give you the "Scoop"

Many buyers, especially first-time buyers are concerned that, when they buy a home, they won't know  everything about the home - previous problems, safety issues, previous repairs performed, etc. This is a valid concern, but one that is easily handled when purchasing a home.

When a buyer enters into an agreement purchase a home in California, the sellers are required to disclose everything they know about the home that could affect the value or desirability of the property. Any problems or issues that they know about MUST BE DISCLOSED TO THE BUYER in writing.

During the transaction, the seller will provide to the buyer a number of disclosures that will include information on previous and current problems & issues and what was done, if anything, to address them.

Buyers have time to review the disclosures, conduct inspections and decide whether or not the issues that exist, if any, are significant enough to be of concern. If so, the buyers have a certain period of time to back out of the transaction without penalty.

Your REALTOR will guide you through and assist in this process. Buyers have many "built-in" protections to ensure they buy a home that best suits their needs.

Flexible Real Estate Commissions

Many sellers ask us why we offer a flexible or "variable-rate" commission program when other real estate agents don't. We believe that in order to provide the best service possible for a home seller, we need to offer a variety of options when it comes to commissions.

While we are not "discount agents" (and sellers should beware of those who are), we do offer a variable-rate commission program. We offer five levels of commissions based on the type of transaction we will do with a particular seller. 

Of course, not every option will work with every seller, but we offer the ability for our sellers to save when possible. However, what doesn't change is the premier service we provide our sellers and buyer clients.

If you'd like more information, please call us at (916) 241-8000.