Should you go CONDO? 10 Things to Consider

by Deborah A. Rutter on May 7, 2009

Condos are cool...

Condos are cool...

Ah, the Condo…misunderstood for the better or worse.  Condos can confound the new and seasoned buyer alike.  Condominiums as a concept have been around for a long time, since the early Roman period.  They are a LEGAL FORM OF OWNERSHIP, not a ‘style.’  You can’t drive by a property and immediately identify it as a condo.  Single family homes, former apartment buildings, duplexes, marine docks can all be ‘condo-ized,’ with the correct documentation and other legal parameters met.

Is a condo for you?  Consider:

 

1)  STORAGE:  Converted apartments, homes and the like can lack storage.  If you have a lot of stuff, it may be tough to find a place for it all.  Not all condos have attics, basements, or other on-site storage facilities, including garages.  Some newer condos have LOTS of storage.  Each condo is different, so weigh this issue carefully if you like your stuff.

2)    NEIGHBORS:  Some condo associations are made up of two units; some of two hundred or more.  Some condos have folks living in apartment-like settings; other, single family homes…but in most cases, you’ll have neighbors, and will likely share walls…if noise is a big concern, remember that newer condos are often built with extra thick insulation, walls and other sound-proofing that builders provide to over come noise objections, but older or converted condos may be noisy.  If the rural, quiet lifestyle is more your thing, condos might not be right for you. 

3)  LOCATION:  Condos are typically located in more urban areas, often close to dense business districts.  This isn’t the case everywhere, but keep in mind that condos are less popular in suburban and rural areas. 

4)  OUTDOOR SPACE:  If you’re an urban dweller with a busy social and/or professional life, condo ownership often means that grounds are maintained by the association, meaning you’re off the hook for mowing, planting, maintenance, snow removal, etc.  If you LIKE outdoor space and want a patch to hone your skills, some condos have lots of outside space.  Every condo is different.  Some are built on acres, others have just a deck, so if you’re committed to finding one with a particular version of outdoor space, tell your agent to help you narrow it down.

5)  MAINTENANCE:  In a condo association with just a few units, there may not be a formal approach set-up that takes care of common-area issues.  In huge associations, there might be on-site staff or an on-call service that takes care of emergency issues.  Those services, of course, cost money in the form of dues, so they’re not free.  If you’re thinking about a condo for part of the year in a place you don’t normally call home, having access to regular maintenance can be helpful in case something goes wrong while you’re away.  Or if you’re not handy.

6)  IT’S LIKE A SMALL CITY:  Most people who are new to condos assume that everything is taken care of by ‘them.’  The ‘them’ are the owners.  Owners pay condo fees monthly for services, and take turns serving on the condo board to make decisions.  It’s like a small municipality with a mayor, a secretary and treasurer, and most often, majority rules when it comes time to vote on issues.  If you don’t like the decisions that are made, serve on the board, and at the very least, attend every board meeting.

7)  DUES, DUES, DUES and more DUES:  Condo dues are paid monthly into a fund that takes care of the need of the common areas; areas owned by all.  Pools, tennis courts, roofs, entry areas, parking lots, laundry facilities, etc., are all maintained, repaired, replaced and updated by dues.  In some associations, dues might also pay for electricity, gas, cable t.v., security and a host of other amenities.  Newer condos typically have lower fees in the beginning because there are fewer things to replace.  Older buildings and associations may have higher feed to keep up with the demands of an older structure.  You should also strongly consider a reserve study which is a professional assessment of the building, the condo association and the financial health of the money set aside (the reserve fund) to pay for upcoming maintenance commitments.

8)  FOLLOW THE RULES:  All condos have rules; some more comprehensive and restrictive than others.  Everything from parking to pets, to noise levels are often spelled out in the condo documents.  Read ALL condo documents very carefully…you’d be surprised what things are often restricted or prohibited…and make sure you’re always looking at the most recent version of condo documents.  Getting them from a current owner may not include all the addendum’s and updates.

9)  WHAT YOU OWN:  Condo documents spell out which things are owned by you, owned by everyone and used by most you, and owned by all.  Typically, you own your unit, from the paint in, the ceiling down and the floor coverings up; everyone owns the systems running through the walls, the roof, the basement, the common areas (laundry, parking lots, mail areas, etc.).  Limited Common Elements are used by some people, but not everyone…storage areas, roof decks, individual parking spaces, patios, decks, shutters, etc.  Common Elements are things like roofs, stairwells, elevators, lobbies, trash areas, etc.

10)  READY TO SELL?  Condos go up and down in value just like any other real estate.  When lots of units are for sale or have just sold in a condo development or in a specific geographic area, chances are, yours will sell for about the same, too.   Selling a condo is like selling anything; get your property ready with proper staging; find an agent who understands how to sell condos and uses other condos to determine the best price.

Condos aren’t for everyone, and aren’t a way to ‘check-out’ of the ownership and care process, but they can be a great choice for the right buyer, at the right time.

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A note to Other Agents..Top 10 Ways to Earn my Respect and Client’s Business

by Deborah A. Rutter on May 6, 2009

Agents:  We need each other.  I have buyers and sellers.  YOU have buyers and sellers.  We have clients whose needs we want to meet so they’re happy, we’re happy, everybody is happy.  Here is what I need:

1)  TELL ME THE TRUTH:  Whether on the MLS, when I talk to you on the phone or respond by email, if you know something you should tell me, tell me.  If your listing is in foreclosure, say so on the MLS.  I won’t waste your time setting up a showing, or my clients’ time looking at a house I know they won’t be interested in.   House without power?  Tell me so I’ll bring a flashlight.  Is your buyer just tire-kicking? Tell me, so I can let my seller’s  know. 

2)  RETURN MY CALLS:  Seller’s want info after a showing.  When I call you and ask for feedback, please call me…I’ll do the same.  Everyone has 60 seconds between driving to appointments to get on the phone and leave a message.  When my buyer has a question that I pass on, please look into it quickly.  Yours may not be the only home we’re considering, buy you’ll go towards the top of the list when you are respectful of my clients’ concerns.  I’ll do the same for you.

3)  COMPLETE YOUR PAPERWORK:  Documentation is a matter of details.  If you’re not good at details, find someone who is.  When I have to chase you for missing signatures, initials, incomplete information, the process slows down, and I have to wonder what else you’re forgetting.  Our clients rely on us to handle the details.  I’ll make sure I do my best to handle my side of the paperwork correctly, too.

4)  PLEASE BE ON TIME:  When you schedule a showing for one of my listings, please be on time.  I’ll take care of making sure my seller’s know you’re coming so that your showing is owner-free and pleasant; if you or your buyers will be late, call me.  It’s courtesy, and I’ll do the same.  Likewise if I set an appointment with one of your listings

When our clients get what they want, we win

When our clients get what they want, we win

…it reflects badly on us and our industry when the seller shows up at the door in pajamas and says they didn’t hear from their agent that there was a showing.   And remember that showing up really early can be as bad as showing up really late.  Things happen…just let me know.  I’ll do the same for you.

5)  GIVE GOOD DIRECTIONS:  I know my territory; so do you.  But like you, sometimes I am not near a map, or forgot it, or need to schedule something last-minute and need your help.  If you’re providing directions (especially online), remember that I am not always coming from the one direction you’ve given instructions for…help me and my clients out…give details from north AND south; east AND west.  It’ll help us be on time.

6)  HONOR THE CONTRACT:  Contracts aren’t a suggestion…If you want to change, amend, ignore or update the contract, don’t assume my clients or I will assume it’s no big deal, too.  Both our clients are best served when the expectations are written, clear and agreed upon.   We all get into trouble when we say it’s not a problem…nothing ever is, until it is.  If your buyer or seller has a change, tell me, and let’s get it in writing.  We’ll speed things along, avoid challenges and problems later and help our clients understand their needs are protected.

7)  A DEADLINE IS…A DEADLINE:  If we have a deadline, I will honor it…so should you, for your clients’ sake.  If it’s 5:15 and the deadline is 5:00, we don’t have a deal.  We can’t pick and chose which part of the process means something and which doesn’t, especially when it’s part of a contract.  I’ll watch the dates and time and be sure my buyers and sellers comply, so you look good, too. 

8)  DON’T BLUFF:  If you’re new or unfamiliar with something, get help.  My job is to help my clients have a successful transaction and by default that means keeping the process moving along.  If you’re stumped, get help from your designated broker, another colleague, me.  Pretending like you know what you’re doing when you don’t makes our industry seem bumbling and unprofessional.  No one knows everything all the time. 

9)  BE CIVIL WITH ME WHEN WE DISAGREE:  Ultimately we represent our clients’ wishes.  When our clients want us to do something, it’s up to us to see that it gets done or show them advantages to be gained by making different decisions.  Don’t argue with me when my clients are firm about what they do or don’t want.  If my clients are willing to walk away, so am I.  You should be, too.  

10)  WE WILL WORK TOGETHER AGAIN:  “You catch more flies with honey than vinegar.”  Like you, I make my living servicing my clients, but my fellow agents are just as important.  Respect me because if we’re both doing our job right, we’ll be across the negotiation table again, hopefully soon.  Be civil, return my calls, negotiate for your clients, but don’t make it personal.   Remember that you’re not just dealing with me, but by extension, my clients, too.  You help me, you, our industry when we all work together for the benefit on our respective buyers and sellers.

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Don’t kick yourself! Top 10 First-Time Buyer Blunders

by Deborah A. Rutter on May 6, 2009

Crumpled Paper

Mistakes aren't a given...with the right advice

We’re all first time homebuyers once.  And most of us buy fewer houses than we have fingers on our hands, so we never get ‘good’ at it…and if you move to a new, unfamiliar area, the rules change anyway.  So, how to you avoid the BIG messes your first time out?

1)  NOT GETTING PRE-APPROVED FIRST:  These days, it can take longer than you think.  You need to meet with a lender (or two or three), have your credit score pulled (and then spend weeks, maybe months, cleaning up issues or problems you were unaware of), and then get your pre-approval.  If you start looking at properties that wind up being WAY out of your price range, it’s really hard to go back.  Get pre-approved so you know what you can afford.  That will not only determine what you buy, buy where (don’t forget the impact taxes has on your payment) and possibly when (if there are credit issues, or you are having money given to you for a down payment, some of these funds need to sit in your account before you can buy).  Unless of course, you’re paying cash.  Then none of this matters.

2)  DRAGGING YOUR FEET:  Sure, it’s a buyer’s market, but not everywhere, all the time, even right now.  There are plenty of homes on the market that are appropriately priced in good neighborhoods that go under contract days after they hit the market.  You need to be prepare to move and act when a good opportunity arises.   How do you know if something is a good value?  That’s what your agent is for.  Too many buyers think they have weeks or months to shop, and in the meantime, serious buyers make offers that get scooped up by desperate sellers.

3)  WAITING FOR THE PRICE TO COME DOWN:  Don’t wait.  Think of the list price as suggested…if you see a home you like, put in an offer.  It’s up to the seller to reject it or counter-offer.  Buyers determine the price in any market, so don’t wait for the seller to tell YOU when you’re ready.  Make an offer.  You never know if TODAY is the day the seller’s are fed up and willing to entertain anything.  I have helped lots of buyers put in what we all thought were ‘low’ offers, only to have them accepted by the seller. 

4)  YOU MAKE MONEY ON THE BUYING, NOT THE SELLING:  Smart business people know that smart buying=smart selling.   Think about resale WHILE you’re buying.  That house you love next to the gas station?  Not as good for resale as the one further down the street.  For example:  You may not need a second bathroom, but homes with second bathrooms have better resale and appeal to a wider variety of buyers.  Most first-timers only stay in their homes a few years, so where you can, think about being on the selling end while you’re buying.

5)  THINK ABOUT YOUR WHOLE , NOT JUST THE PRICE:  Everyone focuses on price, and that’s a huge part of the decision for buyers and sellers.  But remember, there are lots of important components to a good offer; the size of your earnest money check; how quickly (or not) you can close; other things you want the seller to do before closing; additional concessions from the seller.  The seller will be looking at your complete offer, and maybe the closing time is almost as important as the price.  For example: If you ask for a 60-day closing, and the seller wants 30 days because of a time constraint, maybe you would be willing to do that–for a reduction in price. 

6)  CONSIDER THE NEIGHBORS:  You can keep your home beautifully maintained, your yard gorgeous, have quiet animals and hold the annual block party, but if your neighbors are not as vigilant as you are, your property value suffers.  You can always fix up a house and yard, but you can’t fix up your neighbors.   When you’ve found the house for you, if you can, sit at the end of street during commuting times, weekend morning, weekend evenings.  Most neighborhoods have natural rhythms that change throughout the week.  You don’t want any surprises.  Knock on the neighbor’s doors, introduce yourself as a potential buyer–then you’ll get the REAL story about the street and neighborhood.

7)  UNDERESTIMATING TIME AND MONEY:  Owning a house is expensive.  Regular maintenance alone can keep you busy all year long, not to mention things that need to be replaced after they’re worn out or broken; improvements for energy savings; updating and modernizing.  And of course, the unexpected; weather and pest related issues, general wear and tear.  Homes resell at their highest and best price when problems are taken care of as they come up, not passed on or ignored.   You need to have enough money after buying the house to keep it in good shape to avoid more costly future repairs.

8)  CONSIDER YOUR LIFESTYLE NOW…AND LATER:  A downtown walk-up condo is great now if you’re employed in town, don’t have a car and can walk the stairs.  But what you get transferred for your job and aren’t able to take the bus or walk?  Find a better job elsewhere?  Break your leg and can’t climb stairs?  Get married and have twins?  You can’t plan for every outcome, but think about what is likely for you in the first 3-5 years of your purchase.  If you LOVE to be outdoors and hate indoor projects, getting a fixer-upper could mean a real cramp in your get-up-and-go lifestyle.  If you enjoy your 5 minute commute, be sure you’ll REALLY enjoy your 40 minute commute from your new place in the country.  You won’t be able to foresee everything coming your way, but considering how you enjoy spending your evenings and weekends now can really shed light on what you’ll be willing to do after you’re an owner.

9)  SAYING NO TO INSPECTIONS:  Not all states require inspections; some loans do.  Regardless of the requirements, forgoing inspections means giving up your chance to negotiate a better price, get some problems fixed before you move in, possibly at the seller’s expense; ensures that you have taken care of issues that will haunt YOU when YOU sell, and ensures that your place offers fewer surprises to potential future buyers.  Unless you’re an expert in construction, hazardous materials, a structural engineer, etc., the small amount of money you pay to have things checked out will pay itself back in peace of mind and negotiating power.

10) NOT GETTING HELP:  Unless you are buying homes every few months, it’s difficult to keep up with a field as dynamic and place-specific as real estate.  Having a buyer agent means getting advocacy for YOUR financial needs and concerns.  Going to the listing agent means that person is contractually obligated to get the highest and best price and terms for the seller, NOT the buyer.  A good buyer agent will be more than a door-opener.  They will advocate for your interests, show you what you need to know and should know, without asking and consider the sum of your issues and concerns, not just making a one-time sale.   Find a buyer’s agent who knows the area, understands first-time buyer issues and problems and who can advocate on your behalf from beginning to closing.

More people own homes in the U.S. than don’t!  Be one of them by following sound, common-sense advice, thinking about your needs, and planning carefully.  You’re this close to being an owner!

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Closing Costs for Buyers Add up if You’re Not Paying Attention!

by Deborah A. Rutter on May 4, 2009

Pay attention to your closing costs...

Pay attention to your closing costs...

For most buyers, closing day is one of the poorest days (at least on paper) of one’s life. 

There are fees, charges, deductions…the list can seem overwhelming, and while there are certainly situational, regional and individual differences, here a quick rundown of the most common charges:

  1. Earnest Money:  This is the money you submit with your offer, to show the seller you’re serious (or not) about negotiating.  This amount is included as part of your down payment.
  2. Down Payment:  The money you’ve saved will help you pay less over time, possible avoid PMI (private mortgage insurance) and often is one of many determining factors for the kind of loan you qualify for. 
  3. Credit Report:  Most mortgage/loan companies will charge you to pull your credit and get your FICO score. 
  4. Loan Origination Fees:  These are charges that your lender assesses to process your loan. It is a percentage of the total amount you borrow, often called, ‘points.’  One point=1 percent.
  5. Appraisal:  Appraisal are done for the lender, not the buyer, but buyers pay for them.  They are several hundred dollars, and allow the lender to determine if the house is worth the price in a particular area, region, given the economic climate and other comparable houses that sold recently.
  6. Hazard Insurance:  Also called home owner’s insurance, which is required by lenders when there is a loan involved.  Typically, buyers pay for one year up front, and then immediately pay 1/12 of the total premium with each mortgage payment.  At the end of the first year in the house, there is enough money for the next premium.
  7. Private Mortgage Insurance:  PMI is typically assessed when a borrow puts down less than 20%.  This payment continues until the 20% equity mark is achieved. 
  8. Taxes:  Most buyers have their taxes, as well as hazard insurance, included in their monthly payment to be sure there is enough money set aside when the time comes.  At closing, you may have to pay the seller for the taxes they’ve already paid in advance.
  9. Deed Preparation:  Buyers typically pay for the preparation of a deed, showing legal ownership.  These can be prepared by an attorney or a title company, depending on your area.  Fees vary by region; in greater Portland, Maine, expec to pay $125 to $175 per deed.
  10. Recording Fees:  Deeds and mortgages are on file at the county registry of deeds where the property is located and are part of the public record.  Most counties charge by the page. 
  11. Title insurance:  Your lender will require you to get a LENDER’S POLICY, with a buyer’s policy optional.  The lenders policy is based on the amount you borrow to buy the house; the buyer’s policy is based on the final selling price.
  12. Mortgage Survey:  Most lenders will charge buyers for a mortgage survey of the land.  This is not a BOUNDARY survey, but a quick scan of existing records combined with a view of the property to see if there are any structures on an abutter’s property or vice versa.
  13. Other Pro-rations:  Homeowners Association fees and dues; heating oil in the tank on closing day; taxes; utility bills are just a few additional charges that often get sorted out on closing day. 

Be sure to work with your buyer’s agent to go over the closing statement carefully, making sure that you understand EACH charge and that the calculations are correct. People prepare closing documents, and people make mistakes.  Catching problems now is much easier than hunting everyone down after the closing when sellers have moved on.

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Top 5 Real Estate Myths

by Deborah A. Rutter on May 1, 2009

Myths around real estate are everyone...

Be in the know...not, 'I didn't know!"

There are a lot of just plain ol’ wives tales out there about the real estate industry…here’s my top 5:

5)  Commissions:  MYTH:  There is a standard rate for commissions.  REALITY:  99% of agents are independent contractors, and can charge whatever they want or need for their services and expertise.  Some agent work for companies that have strict guidelines or recommendations and preferences, but most also provide leeway to those agents to do what is needed for that client.  There are perhaps norms for areas, but anti-trust laws prohibit agencies or agents getting together to collude and price-set. 

4)  Earnest Money Deposits: MYTH:  There is a minimum/recommended amount to put down.  REALITY:  There isn’t.  Deposit, earnest money, (whatever you call it where you live), is an amount that buyers give to sellers to provide enough of an incentive to deal with them and continue negotiating; it shows you are serious (or not) and have some skin in the game if something goes awry or you walk away.  There are no minimum or maximum amounts.  No percentages, no dollar amounts.  Agents might make recommendations as part of an overall strategy, but there are no hard and fast rules.  Think about what YOU might like to see if you were selling your home.  A bigger check to most sellers gives them more of a perceived confidence about you and your offer.

3)  Picking a Title/Settlement Company. MYTH:  The settlement company just ‘happens’ when you’re the buyer.  REALITY: YOU are entitled to chose who will do your title search, preparing closing documents, provide title insurance, make sure existing liens are paid, etc.  For most buyers, this is one of those completely blind decisions that just gets ‘made’ by the agent and/or the mortgage company, and the buyer just shows up for closing.  ALL buyers have a choice and there is a difference.  Around the U.S. there are different names for these services, and some states require an attorney, but keep in mind, the choice is yours; not the agent’s and not the mortgage lender, though they may be good places to start if you’re new to the area, or don’t have any other 3rd party recommendation.  The services provided by these companies cost money, and the quality of their work may have an effect on your homeownership in the future.

2)  Your agent works for YOU.  MYTH:  Your agent always is looking out for YOU and YOUR best interests.  REALITY:  It depends on your state, what you have signed (or not) in terms of a contract.   Dealing with the seller/listing agent in a negotiation means that the agent’s obligation is to the seller not to a buyer.  Likewise, just because you have a separate agent, a ‘buyer agent’ doesn’t necessarily mean that your agent is working on your behalf.  Most states require a written contract spelling out the buyer-client/buyer-agent relationship; if you don’t have a signed contract, you probably don’t have advocacy in the way think you do to protect your privacy, your money and your negotiation position.  Once you’ve found the right agent, expect to be presented with a contract spelling out the buyer/agent relationship.  If you don’t get one, ask.  If the agent brushes you off, you’re likely not going to be getting the protection you need.

1) Real Estate Agents Earnings:  MYTH:  High commissions mean agents are overpaid.  REALITY:  The median income for agents in 2007 (according to the 2008 National Association of REALTORS Member Profile) was $42,600 gross. 

As indpendent contractors typically paid on commission at closing, agents are responsible for running their own businesses.  The fees, licensing requirements, out-of-pocket marketing expenses, federal and state taxes, insurance, retirement, gas, legal, continuing education, advertising and a host of other business expenses are paid from the $42,600.   And that is ONLY after a successful transaction closes.  Agents work for months for most clients in the hopes, not the assurance, of getting paid.   Most agents do not own their own agencies and their checks get split between the agency and the agent first; larger franchises often have additional fees on top of the agency/agent split.

If you think your agent is earning too much, ask yourself…what is your agent doing to EARN the money they’re making?

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How to be a great buyer or seller!

by Deborah A. Rutter on April 22, 2009

Being a great buyer or seller is easy!

Great buyers and sellers get the best results

LLike lots of things in life, it takes two to tango…when you’re shopping for an agent, keep in mind that agents are people, too, with time commitments, deadlines and expectations.  They want to help you buy and sell, but you can do a lot to help yourself  be at the top of your agent’s list when it comes to handling your needs…Consider these tips:

1)  Be clear about what you want:  Agents can’t read minds any better or worse than anyone else.  If YOU don’t know what you want, tell your agent you need help to figure it out, whatever it is.  Agents are great resources for all sorts of issues surrounding your move and purchase or sale.

2) Be clear about your deadlines and time frames:  If you want something to be done at a specific time, tell your agent when you hope to see results.  In absence of a deadline, most of us work on what is most pressing in our busy lives.  If you don’t share your needs and deadlines with your agent, asking for a last-minute rush to help you solve an issue might not yield the best results. 

3)  Return phone calls, faxes, emails and texts right away:  The number one complaint from consumers about agents?  Lack of communication. 

Number one complaint from agents about consumers?  Lack of communication.

Real estate is a deadline-driven business.  Missing a deadline or appointment, even by 5 minutes can mean a deal goes south, you lose your earnest money, or have to spend more time and energy to make something happen.   Respond quickly to inquiries and requests, and if you can’t, respond that you’ll have to get back to your agent later.  Complete the communication loop.

4)  Buyers…Be a good house guest!  When you’re looking at homes as a buyer, remember: Your negotiation starts when you hit the front door, NOT when you sit down to write a contract.

  • Be on time for showings:  Showings are often a huge hassle for sellers; it means getting the house cleaned up (not an easy feat with animals, kids, guests and busy working lives), perhaps getting the kids/dogs packed up and ready to be out of the house, postponing dinner or making other inconvenient arrangements.  If you don’t respect the homeowners during the showing process, sellers remember when it comes time to negotiate. Be on time, get directions if you’re meeting your agent at the home and don’t know where you’re going, and call if you’ll be late…not 5 minutes AFTER you’re supposed to already be there.
  • No food or drink:  Early morning coffee is essential for many of us, but bringing outside food or drinks into a strangers house is not polite, not to mention potential spills or messes.  That’s what your agent’s car is for!
  • Think about your kids:  Kids that are too small to walk or old enough to behave can be great on a day full of exciting showings, and be easier on your schedule…but toddlers just learning to walk or the extra-curious mean that you can’t concentrate on looking at the house closely, and invites disaster with loose cats or dogs, unintentionally damaged items or general mischief.  Think carefully about your showings and if you can, arrange showings for a time when you can be fully committed to looking rather than being on child care duty in an unfamiliar environment.

5)  Sellers!  Be a good host!  Now more than ever, buyers have a lot of choices…and you can stand out among the crowd:

  • Get out!  When a showing is scheduled, you need to leave…buyers do not feel comfortable when you’re home, even if you’re outside milling around.  Buyers do their best work when they can imagine themselves IN your home, and that’s tough when they know you’re just within earshot.
  • Take care of your animals:  Your pets and their quirks are unique and even the best buyers and agents can forget to do the right things for your animals:  letting the indoor cat escape; opening the dog-only room, overly curious kids and birds creating havoc…do your best to make arrangements for ALL your family members while your house is on the market.
  • It’s a beauty contest:  Clean up, clean up, clean up.  You don’t need to have the latest and greatest appliances, decorations or a home that commands an ocean view, but if you’re not neat, clean and tidy (especially in the bathrooms and kitchen), some buyers just can’t get past it, and wonder what else is not maintained.

All of us want the best from our agents; we want them to work on our behalf, answer late night calls and emails and create solutions to problems throughout the entire transaction.  You’ll get better cooperation from your agent and agency when you meet your agent halfway.  Remember:

“You catch more flies with honey than vinegar.”

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Commited to buying local? Then who's your Real Estate Agency?

by Deborah A. Rutter on April 13, 2009

We're local...are you?

We're local...are you?

Many of us are being more cognizant about how we spend our money.  Eating locally (localvore:  http://www.locavores.com/), buying organic, supporting local business, limiting  food and transportation miles, reducing bottle water…the list grows daily as we all make the connection between what we do and how and where we spend and it’s local impact.

But what about real estate brokerages?

The Portland Buy Local folks in Maine (http://portlandbuylocal.org/) say that for every $100 we spend, $45 stays locally, helping out our economy.  For every $100 spent on a national chain or franchise, only $14 stays around.  And when it comes to local foods, no one tops BuyLocalVirginia for getting the word out.

For agents who work for national or regional chains, part of their paycheck goes outside the area to support national advertising and marketing efforts.  Not that those efforts didn’t contribute in some way to helping out the hyper-local economy.  But not all of it.

Local brokerage firms are thriving, getting business and weathering the storms, while providing for the most part a greater impact to the local economy. 

When you choose chose a local brokerage to help you buy or sell (or both), we know that a whole host of people are directly and indirectly supported:  photographers, home-stagers, bookkeepers, home cleaners,  mortgage brokers, inspectors, title and closing companies, attorneys…the list goes on.  Some of those same folks are supported with national brokerages, too, but there is something refreshing about dealing with folks who are going to take all of the money they get and spend it locally.  No splits with a corporations focused on bottom-line profitability or remote shareholders interests.

So…when you are making a recommendation or referral, locally or otherwise, ask yourself:  what can I do to support my community?  Who do I know in real estate, (or any industry), who is working for a local company, making a difference in the area, volunteering, contributing financially to the local economy, really contributing to what is so great about living in Virginia? 

Of course no one should sacrifice service for value.  Or value for service.  Not so long ago, they were married together.  Now, it seems you often have to chose one or the other.  But when you’re seeking a recommendation for a product or a service, or are getting your credit card out, ask yourself:

When it comes to the local health of our economy in central Virginia, am I part of the solution, or part of the problem?

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Independent Retailers Outperform Chains Over Holidays, National Survey Finds

http://www.newrules.org/news/independent-retailers-outperform-chains-over-holidays-national-survey-finds

 

The San Francisco Retail Diversity Study
by Civic Economics, May 2007
This study finds that, compared to chains, independent businesses buy more goods and services from other local businesses and employ more people locally per unit of sales (because they have no headquarters staff elsewhere). This means every dollar spent at a local store instead of a chain creates a much bigger benefit for San Francisco’s economy.

http://www.civiceconomics.com/SF/

 

Local Works: Examining the Impact of Local Business on the West Michigan Economy
by Civic Economics, September 2008
This study concludes that if residents of Grand Rapids and surrounding Kent County, Michigan, were to redirect 10 percent of their total spending from chains to locally owned businesses, the result would be $140 million in new economic activity for the region, including 1,600 new jobs and $53 million in additional payroll.

http://www.civiceconomics.com/localworks/

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License-type isn't necessarily a big deal...or is it?

Salesperson, Associate Broker, Broker…what does it matter?

by Deborah A. Rutter on March 31, 2009

Every state has a unique way of naming and identifying agents and unique requirements for their licensing attainment, upgrading and continuing eduction. 

In Virginia, there are 2 licensing categories.  Licensing status is not usually a reasonable indication of experience, proficiency or expertise.  There are lots of long-time agents out there whose skills are out-dated and just don’t keep up with expanding their personal knowledge base, technology or the latest best-practices.  Likewise, there are lots of great salespeople who come into real estate with a solid grasp of the skills needed to be a success early in their careers. 

SALESPERSON:  Agents that are new to real estate will have a Salesperson title.  Sometimes this will be reflected on a business card, but sometimes not.  Salespersons in Virginia have to pass a 60 hour course among a few other requirements.  The Salesperson license is  good indefinitely.  Some salespersons retain the title for their entire career.  For many young Salespersons, their first closing is on someone else’s home! 

From the Department of Professional and Occupation Regulation: 

 Salespersons must complete 60 hours in the principles of real estate and pass the State and National portions of the salesperson examination.  

  

 ASSOCIATE BROKER:  Unlike some state, Virginia does NOT require that agents upgrade their license to an Associate Broker status.  This is an additional 180 hours of training, is voluntary, and includes are requirement to have been licensed and engaged, full time in the practice of real estate. 

From the Department of Professional and Occupation Regulation: 

Brokers must complete 180 hours of education, pass the State and National Portions of the broker examination, and submit verification of experience (actively engaged as a salesperson for 36 out of the 48 months preceding application for licensure). 

 In real estate, there is a real boom/bust to the number of agents at any time.  When real estate is hot, more agents come into the business, convinced that they’re the next Donald Trump…likewise, when sales slow down or the economy sours, agents leave the business in droves.

Fact:  About 80-% of agents nation-wide do NOT make it to their second year.  Most agents don’t grasp the difficulty of running a successful small business, especially one based on a commission-only model.  

So, while you can’t exactly use licensing status to gauge experience and expertise, Virginia agents with an Associate Broker license have considerably more education…and the additional hours are voluntary.  That says a lot about an agent.  All of the Nest agents carry an Association Broker license. 

Our agents…

  • Have a minimum of three years, full-time experience as a Realtor
  • Work full-time as a Realtor
  • Have earned their Broker’s License
  • Are actively involved in the local Realtor Association
  • Absolutely, positively do not practice dual agency

Education, experience, all of it matters.  Be sure your real estate person is committed to the profession.

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Good Neighbors make good resale!

by Deborah A. Rutter on March 30, 2009

Everyone who wants to live in a neighborhood (as opposed to those who want to live a more rural lifestyle), wants good neighbors.  Neighbors who are quiet, keep their yards and houses nice, keep an eye out for unusual activity while you’re out, band together when there are issues, buy your kids’ school fund-raiser items, help out at the block party.

But when you’re moving in to a new neighborhood (or maybe even a new area or a new state), how can you tell what you’re getting yourself into?  Everyone has a bad-neighbor story, or knows  someone who does.  Consider these tips before signing on the dotted line.

1)  Knock on doors:  I tell my my buyer-clients to knock on doors when neighbors are  likely to be home.  Do you get ignored, even though there are people inside?  Do kids and dogs come crashing to answer?  Is the door open in nice weather?  Is the front door inviting?  Each of these will give you a clue about who is inside and how receptive they are. 

Good or bad, neighbors are almost everywhere

Got Neighbors?

Once you get a door opened, smile, introduce yourself  and tell your neighbor you are considering buying the house for sale, and wanted to hear from folks on the street about the area.  Most neighbors are just as curious (and worried) about who might be moving in as you are.  If things are good (or bad), you’ll likely hear it.  Stories, bigotry, raving fans, complaints, gossip…most people spill it when they’re asked to weigh in on the street goings-on.  Sometimes more than you want to hear but most people have limited incentive to sugar coat in either direction.  Hit a few homes, including those at the opposite ends of the street of your potential purchase, neighbors to the rear, and a few streets over.  You want to get a broad idea about who lives there and how things are working.

2)  Neighborhood Association Meetings:  Many neighborhoods have local meetings where issues and solutions are discussed, and members of the neighborhood can voice their concerns.  Check on-line for web info, or contact the town/city hall and ask about neighborhood meetings.  Sometimes it’s not possible to go to these before signing the purchase and sale contract, or before closing, but if your timing is right, they can be a great way to get insight into current issues.

3)  Police Department:  Police departments (Charlottesville Police Dept Stats; Albemarle County Stats) keep stats on crime and other issues.  Go the their headquarters and ask to speak to someone about your neighborhood and tell them you want crime statistics for the last year.  In most places, issues increase in the warmer months, so you want to be sure you’re not just looking at stats when it’s mid-winter.  Look at surrounding streets, too.  In addition to property crimes, you can get an idea of familial issues.  Assaults, disturbing the peace and other inter-personal issues can make for a stressful day of barbecuing when the neighbors are fighting constantly or the dogs a few houses over just won’t stop barking.

4)  Sex-Offer Registry:  Many towns and cities (here’s Virginia’s) have their registries online.  Find out if yours does if you’re concerned about predators or sex offenders in your potential area.

5)   Hang out on your potential street:  If you’re moving from out of state, or are on a tight schedule, you may not be able to spend time checking out the neighborhood.  But if you are able, drive down the street at different times.  The early-morning and evening hours will often bring a jump in commuter traffic versus a Sunday morning.  If you are considering a move near a place of worship, see what the street parking is like.  Near a performance hall, bar, theater, or maybe a high school sports stadium?  The traffic patterns, noise and congestion will vary during the weekend and at different times of year.  Grab a coffee, sit in your car and watch…but don’t be surprised if someone notices you…good neighbors watch for unusual things in their area!

6)  Get a list of neighbors online:  Many municipalities (Albemarle County) (Charlottesville) have tax records online.  This can be a great place to not only find out the names of your neighbors (and maybe even how long they’ve lived there), but if the mailing address is, for example, out of state, it may be an indication of an absentee owner, or a rental. If you’re buying one of the few  owner-occupied homes in a neighborhood full of rentals, carefully consider how that may impact your ability to resell at the highest and best price.  Most owners and renters take pride in their homes, but a few bad apples can spoil the whole street.

7)  Ask colleagues/merchants:  If you’re moving across town, ask everyone you know about the area…chances are, they know someone who lives locally.  If you’re new to town and getting transferred for work or otherwise, ask local merchants.  Everyone likes to be asked their opinion about where they live. 

You’ll notice that I didn’t say,’ask your agent.’  Agents, believe it or not, are not supposed to comment on neighborhoods’ good-ness or bad-ness, but be the ‘source of the source’ for information.  For most buyers, that contradicts what an agent does for a living, but that’s only because so many agents break the law when talking about neighborhoods.  For example, if you have kids (or don’t), and ask, “Are there are lot of kids in this area?” a good agent will not speculate…what are a lot of kids?  Every house?  A few?   Instead, a good agent will direct you to how close the local elementary school is, perhaps point out  kids’ toys or play sets in yards, etc. 

Finding out who your neighbors are shouldn’t be a complete surprise.  There are lots of resources out there, including the census bureau  (this is one of my favorite links:  http://factfinder.census.gov/home/saff/main.html?_lang=en) to help you discover who your new neighbors will be.

Remember…you can fix up your house, tear it down, improve the yard…but you can’t change your neighbors.  You are stuck with them and all their foibles, so be sure that you can live with what you see, (and don’t see/hear) before you move in!

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The First-Time Homebuyer Tax Credit…explained.

by Deborah A. Rutter on March 23, 2009

The first-time home buyer tax credit is a bit of a misnomer…if you haven’t purchase a home in the last 3 years, you qualify as a first-timer. Below are some details to help you sort out the how’s and why’s…

Tax Credit Details

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