How Much Is Enough?
August 7th, 2009 categories: Real Estate News, Relocating
In an e-mail I received last week, another agent reminded me of the public’s perception of the real estate profession; not good.
Earlier this week, a local Broker relayed the story of her most recent marketing appointment. It took place in a home situated in a local neighborhood, The Glens, in Stafford, VA.
Its developer, Augustine Homes, has a reputation for outstanding craftmanship and a quality product. Homes in their subdivisions aren’t cheap. Their neighborhoods and accomodations are anything but sparse. As a matter of fact, they’re some of the most expensive homes in the area. And, their subdivisions are the kind you and I wouldn’t mind living in. Homes in the Glens hover around $1,000,000 +.
But, back to the Broker’s story. Evidently, the marketing appointment wasn’t simply to discuss the remarketing of the home, but also the failures of the agent who previously listed the property. According to the Broker, the previous agent hadn’t bothered to make brochures or any other hard copy take away items for prospective buyers. No video of the home either. Other than the Multiple Listing Service (MLS) exposure, no other internet listing presence. But, the agent did put a sign in the yard.
And we wonder why the public’s image of real estate professionals is so low? But, before we begin to smear agents with a broad brush, this poor display of real estate practice isn’t the norm, but the exception.
Here, we have a million dollar listing, and next to no marketing. One has to wonder why. If it wasn’t the desire of the homeowner, and according to the broker, it wasn’t, then why would an agent not do a better job of show casing the property? Did not they not realize the contractural agreement they entered into with the homeowner bound them ethically to use their best efforts to accomplish their client’s objective…in other words, to market and sell the home?
While there is no perfect method of marketing a home, there are some basic practices that serve as a foundation for providing a homeowner the services necessary to sell their home. “Best effort” encompasses not only the scope of the effort, but, just as importantly, the quality.
When it comes to listing or marketing a property, what methods do the job effectively? How much marketing is enough? That will be the subject of an article later this month.
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New and Easy Area Home Search
July 28th, 2009 categories: Real Estate News, Relocating
If you’re looking for Stafford and Fredericksburg area homes, this simple resource is just that, simple, easy, and gives you homes, and nothing else. So, take advantage of: http://www.searchingsolutions.com/fredericksburghomebuyer.com
Take a look and keep coming back. If you need more information than provided, don’t hesitate to call me.
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A Wallpaper Redux?
July 20th, 2009 categories: Real Estate News, Relocating
Last week I ran across two articles that claimed Wallpaper is making a comeback. While I’ve certainly heard stranger things, I had to wonder what sources these writers used in making this claim.
In the real estate business, at least from a Realtor’s perspective, marketing homes whose walls are plastered with wallpaper, can sometimes be challenging at best. While, from time to time, wallpaper, tastefully done, may provide a unique look to a property, more frequently, its can be an eyesore and a hurdle to overcome to successfully market a home.
The Associated Press began last week’s story by saying that this spring, Oprah declared wallpaper was back in vogue. According to their report, if a homeowner is “looking for drama, texture warmth and personality, wallpaper is the way to go.” Well, yes, most of us might agree, if you want to be unique or loud, or dramatic, wallpaper fits the bill. According to Anne Goldsmith, a New York decorator, wallpaper makes “a bold statement” and “can just be really fun.”
I’m reminded of last week’s British Open. John Daly, a previous Open winner, and sometimes better known for his off-course exploits, was making his bold statement, attired each day in a pair of Loudmouth Pants. According to CEO Scott Woodworth, “If you’re uptight, self-conscious, and care more about your golf score than the experience, then Loudmouth golf pants are NOT for you. But if you treat a golf outing as a special occasion for fun and laughs…then wear some outrageous Loudmouth pants – they can’t hurt your score. They might irritate your opponent.”
If you’re considering selling your home, especially if you own in the Stafford or Fredericksburg, Virginia region, or for that matter, anywhere outside New York or California, pause before you decide to design your home with reams of wall paper. Take a minute to ask yourself, “Am I doing this for fun and laughs?”
Despite what you read in the newspaper, or hear on the Oprah show, the vast majority of home buyers are NOT looking for a “statement home” or someone else’s “experience” to call their own. Instead, they’re searching for peace and quiet and comfort. For that special occasion for fun and laughs, there’s always the local comedy club or King’s Dominion, just fifteen minutes South of Fredericksburg.
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It Takes A New Village
July 15th, 2009 categories: Real Estate News, Relocating
Old Town Fredericksburg is one of the Commonwealth’s most popular tourist locations. Its “quaintness” factor makes it a “must do” when visiting this region. With the historic sites, featured attractions, brick walk-ways bordered by stores and restaurants, Old Town is full of attractions for the entire family.
While reproducing the originality of Fredericksburg isn’t possible, recreating its atmosphere is.
Bringing the old town atmosphere into the present is a popular trend that’s manifested itself in the development of new towns across America since the 1980s. This New Urbanism, the urban planning and and real estate development movement which arose in the last couple of decades, has made its mark recently in New Town Williamsburg, and is the model for Spotsylvania’s current development, Courthouse Village.
Williamsburg’s pedestrian and consumer friendly new development has already attracted an abundance of businesses and property buyers. Its unique combination of offices, shops, entertainment, and housing options offers other area alternatives than those of the historical section. In Spotsylvania, developer Bill Vakos III, an executive with W.J. Vakos & Co, has begun development of something similar.
Vakos’ plans call for a town square with concerts and other entertainment. He wants a grocery store, gas station, numerous restaurants, a Civil War themed museum and a 38-room hotel within the 12 blocks of sidewalks. With construction underway, plans are to complete the development during the next decade. In line with the objectives of new urbanism, the goal is for residents, if they so desire, to live comfortably without an automobile, where most of the daily activities are located within walking distance and are connected by attractive streets and public spaces.
A community’s allure is often directly related to quality of life. New developments like those in Williamsburg and Spotsylvania Village seek to meet the twin goals of building convenience for consumers while responsibly cultivating the areas resources. For any community, or village, those seem like objectives worth waiting for.
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His Needs, Her Needs
July 9th, 2009 categories: Real Estate News, Relocating
Have you ever heard the popular phrase, “Men are from Mars, Women are from Venus” when discussing the differnces between men and women? Of course, as many people know, that phrase comes from the title of the best selling book by John Gray, written in 1992. While the title is often remembered, the subtitle, which is the essence of Gray’s book, is rarely, if ever cited. That is, “A Practical Guide for Improving Communication and Getting What You Want in Your Relationships.”
The author’s focus is on the differences between behaviors and desires of men and women. From there, the book centers on recognizing these differences and learning to communicate effectively to meet the needs of each party. Understanding the expectations of one another, and communicating each others’ desires, are two keys to a successful relationship.
Yesterday, a fellow agent held me captive while recounting their latest adventure with a client of theirs, who had decided they wanted to “move on” and use another agent. In this case, the clients had informed the agent that they believed the agent wasn’t meeting their needs. So, now, it was time to find another agent, one that would do a “better” job of keeping them informed of “all of their options.” According to the agent, the clients talked to the husband’s brother who provided them with valuable information their agent neglected to tell them. From what my fellow agent said, the client’s brother provided a layman’s explanation of the need to make “back up” offers on properties they liked. Specifically, back up offers on Short Sale properties they liked.
Well, for those of us that have handled a few Short Sales – back up offers on short sales, while doable, probably aren’t the easiest road to success. By the way, did I mention, the client’s brother has never had any training in Real Estate? None, zero, zip! Also, these clients wanted to be in a house as soon as possible. So, as many of you know, ASAP and short sale are mutually exclusive. In other words, you can’t get there from here.
After listening to the agent’s tale, I had to ask if they began their relationship with their buyer by doing a “needs assessment.” Were expectations discussed before they began to look for homes? If not, why not? As happens in many real estate relationships, especially with buyers, the foundation that is necessary for a successful relationship is never established at the outset. In the rush to run out and look at homes, the clients, and the agent, sacrifice the most important step that’s vital in establishing a successful relationship – business or otherwise. And when things in the relationship begin to break down, it’s usually due to a lack of proper preparation.
So, what should that initial needs assessment, or discussion of expectations consist of?
1. Clear statement of clients and agents expectations.
2. Ground Rules. The What, Where, When and Why of the relationship. This simply means a review, or preview of what the normal operational parameters are. With expectations already discussed, this clarifies how you’ll look for homes, who will do what, when various parts of the transaction will take place, where things will take place, etc. It’s simply a way of providing a clear picture to the client of the transaction from the outset to the settlement table. No one likes surprises, an this should preclude that.
3. A discussion of a Realtors responsibilities and our of Code of Ethics. This isn’t an in-depth conversation, but simply a reminder to the client of the professional they’re relying on to make their transaction a smooth one.
Unmet client expectations are never helpful in business relationships. To avoid them, it’s essential to clarify, from the beginning, in a manner understood by all, what’s to be expected from all parties involved. While it may temporarily delay the buyer’s house hunting road trip, it’ll likely prevent misunderstandings or problems further down the line. And in a Realtor’s business, where you aren’t compensated until closing, getting there is worth the reward.
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Short Sales – The Good, The Bad, The Ugly!
July 3rd, 2009 categories: Real Estate News, Relocating
The term “Short Sale” has become common place in housing markets over the past few years. Yet, for many, what a short sale is, and how it becomes a reality, is still a mystery. A short sale is a sale of real estate in which the proceeds from the sale are less than, or “short of”, what’s owed on the balance of the loan securing the property being sold.
The Good
At first glimpse, one might wonder why a lender would ever entertain such an arrangment, accepting less than what’s owed on a loan. In most cases, the owner(s) are “upside down” with their mortgage. In other words, they owe more than their property is currently worth. While there are various reasons why owners are in their current distressed state, the good news is that banks have begun to embarace the short sale process. Foreclosing on properties isn’t in anyone’s interest – especially banks. According to the legal counsel for the Virginia Association of Realtors (VAR), the average foreclosure costs the bank approximately $65,000. That’s not what they lose on the loan payoff. That is simply what it costs the bank to handle or manage the foreclosed property. For banks, avoiding foreclosure simply makes monetary sense.
Additionally, the Administration and Congress have moved to stem the foreclosure rate and make short sales a more standardized and acceptable choice for lenders. A push from lawmakers to improve and simplify short sales has encouraged banks to embrace this option for homeowners, avoiding further emotional and financial pain that would ensue if foreclosured on.
The Bad
From a Realtors point of view, handling a short sale transaction is never easy. On the selling side, there are two other major participants in the process, the homeowner (Seller) and the bank (Lender). Each of these bring with them potential problems. The good thing is, the homeowner is usually approaching the transaction as a motivated party. Unfortunately, that rarely seems to be the bank’s case.
Complicating matters further is the lack of national standardized short sale procedures, and no mandated cummunication timelines between banks and realtors (who represent their clients). If there’s anything more frustrating for the real estate community than their fruitless attempts to reach the proper point of contact at the bank when dealing with a short sale, I’m unaware of it. If the short sale cummunication and coordination process was designed any poorer, it would be DOA. But, fortunately, despite the piecemeal structure, many of the transactions do close….eventually. But, “muddling through” is no way to conduct business.
The difficulty in successfully executing a short sale is due to more than poor coordination and communication. Aside from these stumbling blacks, two other hurdles must be overcome. The first involves the banks, the other, the real estate community.
The Ugly
While we’re almost four years into the Mortgage Meltdown, banks have yet to hire enough personnel to handle their short sale and foreclosure workload. We’re routinely informed that negotiators and asset managers are beset with caseloads of 300 or more. With numbers like those, how can we expect success? Within the Realtor community, it isn’t the numbers that are the problem, it’s the lack of know how.
Many Realtors handling short sales or foreclosures lack the training needed to properly do the job. The Commonwealth of Virginia has no training requirement for handling these types of transactions. Many agents, if trained at all, do so after “muddling through” their first few such transactions. Wouldn’t it be smarter to have the training prior to accomplishing the task? How can a professional do the job without knowing what has to be done? And, who is paying for the mistakes made along the way?
Both Short Sales and Foreclosures have excellent certification programs available. For the former, the Certified Short Sale Professional (CSP), and the latter, the Certified Foreclosure Specialist (CFS). But, unfortunately, many who should be taking these courses aren’t.
Today, in many regions of the country, shorts sales and foreclosures account for more than fifty percent of real estate transactions. Luckily, there is an abundance of information on the subject available from lenders, the real estate community, and best of all, online. Time and experience has resulted in greater success in navigating each of these unconventional property sales approaches. But the players involved, and the processes, have miles to go before can begin to claim the process works well.
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