Survey Data Reveals…

Maybe the buyer has fallen in love with your home . . . except . . .

The master bathroom is too small
A gas fireplace would be better than a wood-burning fireplace
The kitchen needs granite countertops
Hardwood floors would be so much better
The front door must be covered

And on, and on, and on. You just lost a potential buyer – or did you?

Savvy agents will take these comments and work them to the seller’s advantage. How? By taking the feedback/idea, and working it into a potential offer on the home.

For example: the buyer would buy a listing held by Schwebel & Associates of Prudential Carolinas Realty, except all of the bedrooms but one have direct access to a bathroom. We receive this feedback and become proactive. We contact 2DIFOR Builders.

2DIFOR Builders specialize in strategic home alterations. Strategic home alterations is a tool for real estate agents to custom tailor that perfect fit for their client. There is no cost – 2DIFOR Builders simply offer feasibility options and budgets for changes to the home during the buying and selling process.

Schwebel & Associates presents 2DIFOR Builders with the information about overcoming the buyer’s objections. 2DIFOR Builders will assess the situation, determine possible options and budget the alterations. Armed with this knowledge, we can then present options to the buyer’s agent.

From there, the cost of the alteration might be negotiated in the selling price of the home, or it may become a condition of the sale.

Strategic home alteration also works equally well for our buyers. If we show them a home that is perfect except for . . ., we can offer the services of 2DIFOR Builders to help them to realize their perfect home.

Not every buyer has the ability to ‘see’ a home with potential changes, and certainly most won’t have an idea of the costs involved. Our solution is to help them with the process and at the same time, find them the perfect home at a good price.

With the amount of inventory out there, every advantage that we can offer to our buyers and sellers can only help them to achieve their goals; to find the perfect home, or to sell their home in a timely manner.

What is a short sale? A short sale is an option you have before you reach the point of foreclosure where you are selling your home for less than what is owed. However, the bank has to agree to a short sale as they stand to lose money via either process.  Banks do short sales because of cost.  An average cost to the bank for foreclosure is around $65,000, so they are smart to take the short sale.

You must have an offer in hand for the bank to tell you whether they will do a short sale or not.  They have the say-so whether or not a short sale will be accepted.

The 4 requirements to have a short sale are:

1. The home’s market value has dropped.
2. Mortgage is in or near default status.
3. The seller has fallen on hard times . . . unemployment, divorce, medical emergency, bankruptcy, death
4. The seller has no assets to speak of.

Foreclosure is on your FICO score for 6 years.  Short sales start to repair themselves after 2 years.

Short sales can be a win-win for the lender and the seller.  The lender recovers more of their capital faster than would be possible if they went through foreclosure.  The owner wins by relieving themselves of the financial burdens of the home and taking a smaller hit to their credit than would happen if a foreclosure occurred.

Unfortunately it’s not as simple as it appears.  Every lender and every situation is different.  There are pitfalls to be avoided and terms to be negotiated to reduce or eliminate any further obligations for the borrower after the short sale is concluded.  It is critical to have a team of experts in place to guide you through the process.  A seasoned real estate Broker and a real estate Attorney who specializes in such transactions are the backbone of such a team.

We had an interesting turn this week with our listing in Providence Country Club.  We put a link to the virtual tour site on Twitter.  Almost 10% of the traffic this past week on that house was via Twitter.  We knew that the various web applications and social media were important, but I would have never thought that posting a home on Twitter would generate so much traffic.  Of course that shouldn’t have surprised me since the reason our web traffic was up almost 100% in December was due to a blog post about Christmas lights!!

I believe that we are at the beginning of an information revolution that will vastly improve the quality of our lives while at the same time taking everything we know and turning it on it’s head.  What an exciting time to be alive!

One of the most paralyzing conditions that we, as Realtors®, have to deal with every day.  We must be out to make a quick buck.  The lowest of the low.  Scum of the earth.  How can we live with ourselves? How dare we charge a fee for standing around looking pretty while someone chooses a home to buy! I can sign those forms myself without your help, thank you very much.

We understand your feelings and preconceived notions about the real estate industry and those who choose to work as Realtors®. However – our ethics, attitudes, and concern for your investment (a home is a very large investment) may surprise you. Hard as it may be to believe, we value your thoughts, and want nothing but your satisfaction in the end.

• We are not your average real estate agents.

• We did not choose to sell real estate because it was a fun part-time job.

• We don’t spend countless hours with clients hoping they’ll buy a home – any home – just to have a sale.

• We don’t patronize our clients by allowing them to make bad investment decisions.

• We will tell clients things that they may not want to hear, but it will be something that they need to hear.

• We do take the burden of the closing process off of a client’s shoulders, and take full responsibility in seeing that the transaction is a success.

• And we value quite highly the satisfaction that our clients feel when the last document is signed.

Our client’s satisfaction is our greatest reward.  We realize that we can’t please everyone, but we do our best to make that happen.  We love our job.  Meeting people, showing them around our favorite city, allowing them into our lives for however long it takes for them to see that we aren’t smoke and mirrors – what you see is what you get.  And what you get is nothing short of amazing service, dedication, and unparalleled loyalty.

We are –

Top Charlotte Agent . . . for a reason!

I was recently contacted by Inman News with questions regarding how I felt about the future of the Real Estate Industry.  Answers will be featured on inmannews.com, but I thought I’d share them here with you as well.

Q.  Imagine how the real estate industry will be different when we recover from the current downturn.

A.  The brokerage segment of the industry will be lean and mean.  The downturn will push many brokers out of the business, with only the innovative and dedicated remaining.  The dinosaurs will persist until they fade away due to attrition.  Technology will be the vehicle that brokers will use to find and communicate with buyers and sellers.  This is and always will be a relationship business., but the changes in the web have just begun and I wouldn’t even venture a guess as to what the business will look like in 5 years.  Those that embrace the new paradigm of constant change and evolution will prosper, while those who do not will wither on the vine.

Q.  How will the business model or business practices of the title, brokerage or lending industries change in the future?

A.  They will continue to evolve at whatever breakneck speed the tech gurus can throw at us (brokers).  The tools we have will continue to be refined and then combined in any myriad of ways with new tools.  The sky is the limit here.

Q.  Will the industry be regulated differently in the future?  How so?

A.  I do believe that regulation will increase.  It is my hope that any changes to how we are regulated will be made with foresight and due diligence.  I will say as a lais-sez faire kind of guy, I have overall been happy with how North & South Carolina have adjusted to how they regulate as the world changes.

Q.  What must the industry do now to prepare for this new direction?

A.  Get involved so that we can work with the regulating bodies to come up with solutions that are both fair and practical.

Q.  What technology trends will change the industry in the future?

A.  If I knew that answer I would be in Las Vegas predicting when 17 black would pop up on the roulette wheel.  In all seriousness, the web is in it’s infancy and we have no idea where or how it will change.

Q.  What skills will the real estate agent of the future require?

A.  This answer ties to the last question as well.  We must constantly be on the cutting edge of what is going on.  This is a never-ending job and you can never learn too much.  The agent of the future must be willing to reinvent their business model frequently to keep up.

Q.  How will real estate advertising dollars be spent in the future? How will real estate marketing be different?

A.  First question – the internet.  Second question – advertising will have to be interactive and responsive to what the consumer wants.  It will need to have value for them (the public) to take a look, if not, there are other choices out there.  The advertising will be integrated within other web media.

Q.  Will sales activity in your local housing market contract or expand in 2009? Will national sales activity contract of expand?

A.  I expect our sales volume to expand slightly in 2009.  We have been somewhat isolated from the markets in the rest of the nation. With prices settling down across the country, I see activity starting to pick up.

Q.  What will drive the expansion or contraction?

A.  The correction of real estate values nationwide along with our continued progress through the sub-prime inventory would help with a mild expansion.  If the overall US economy remains unstable, real estate around the country will suffer as people tend to hold on to their money when uncertain.  Local conditions in Charlotte should also insulate us from the bulk of a downturn.

Q.  Will local home prices decrease, increase or remain stable in 2009? 2010? Will national home prices fall, rise or remain flat in 2009? In 2010?

A. Both local and national home prices will stabilize. Prices will not start going up until the current inventory has been gone through.

The seller, a house painter, knows more about selling their home than that of an experienced professional. OF COURSE HE DOES BECAUSE SELLERS KNOW IT ALL! Lets assume that their carrying cost for their mortgage is a mere $1500 per month. That equates to $54,000 of payments for this period vs. taking the offer that was $30,000 less than the asking price.

Here are some things to remember:

1.  Real Estate is no longer recession proof.

2.  Greed, not intelligence, is often the factor for loosing a qualified buyer.

3.  Good realtors® fire their sellers when they don’t listen to them.

4.  The seller may set the asking price but the MARKET SETS THE VALUE.  This one bears repeating – the seller may set the asking price, but the market sets the value!

I’d like to hear your opinion on this or any related topic.