Cindy's Blog

With all of the ups and downs of the finanical markets this week, things have been understandably wild, despite the rates still being terrific. (According to bankrate.com, most rates are still under 6% for a thirty year conventional, and Jumbos are still right around 7% or less). There are still lots of homes out there, and lots of good deals to be had. As long as the buyers are wise about how they are financing their homes, and not getting themselves over their heads in a somewhat questionable economy, it's truly a great time to buy!

In addition, despite all of the Fannie and Freddie news, along with so many negative things said about the first time buyers programs and the many of them that have gone away, there are still many of them out there, and money that is out there to be loaned.

If you are thinking that you might want to "dip your toe" in the market, but don't know where to start, send me an email, or post your questions here and I will answer, or point you in the right direction.

In many situations (particularly condos) financing has been been very difficult for some properties, and the credit crisis has definitely upped the restrictions. Any buyer in the market now really needs to have their ducks in a row, and have their credit and credit score in shape. Again, feel free to post your questions if you have some thoughts about buying a new home, a first home, or are just wondering where to start.

Well, I'm probably not going to tell you anything you don't know here, if you listen to the news, watch tv, or read the paper. If you do any of those things, you are sure to be aware of all of the craziness in the investment markets, and how that has everyone freaking out. However, the rates are still terrific, and it is still a great time to buy. (I feel like that is a constant mantra, but it really is true!)

There are still plenty of homes on the market, though, and sellers still "needing" badly to sell, but not interested in dropping the price enough to gett it sold. I have been in a number of situations lately where I've had clients come in at a point that would be considerably lower than the sellers wanted, but each time the sellers "stuck to their guns" thinking that someone is going to come along and meet their price. I've got to say, there are just not alot of people doing that recently.

So, again, it's still a great time to buy, but it is tougher on the selling side- unfortunately, though, there is never going to be a perfect time to buy and to sell in the same market.

AGENCY

The other thing I wanted to touch on was the notion of procuring cause. I think there is a good deal of confusion around exactly what agents do, how we work, and how we get paid. When we take clients around, or at least when I do, it is because I really want to help them find the right house, and the perfect place for them to raise their family, meet people, or not. However, when I do that, it is also my job, and how I earn my living. While I am quite devoted to what I do, I would very quickly be unable to do that were I not able to support myself.

When I work with clients and take them around showing them homes, it is obviously my expectation that they are going to work with me when they are ready to purchase. This is, of course, what usually happens. What can happen, though, is if you, the client, walk into an open house and have a significant discussion with the listing agent, you may have removed the opportunity to have the agent come in and represent you.

If you are working with an agent, the best thing to do is get very clear idea of the expectations you have of that agent, and an understanding of what he or she expects of you as well. Once you get that done, it should be a bit more clear, and safe everyone alot of strees and heartache.

As I stated in my last post, I really wanted to take a bit of time and cover just a few things about agency. An oft misunderstood aspect of the real estate business, and one which even agents can become muddled or  confused about, thus having more difficult time explaining it to their clients.

I'm going to try to cover most questions, at least, that folks might have, highlighting things that have come up for me or other agents I know.

Recently I had an issue with someone I know, who had called a while back and given me every indication that he was going to list his home with me, asked for help getting it ready for market, etc. Because I knew that they were not going to be ready for a few months, I hadn't pressured them at all.

Imagine my surprise when I received an email saying that they had decided to go with an agent that "specialized in the neighborhood" . I think this is one of the most prevalant fallacies in this business. I've never really understand the notion of the "neighborhood" agent, myself.

I understand that I may have a bit more information about my neighborhood because I live here, but most of the information that I have is about the other people in the neighborhood and either violates fair housing, other privacy or disclosure rules or laws, or just plain good manners.

Does it mean that when someone lists a number of houses in an area they then have clients that call them when they want a house in that neighborhood? If they had a pocketful of clients, wouldn't they have already sold the other homes they have listed, or sell the listings they've had much more quickly?? That is usually not the case.

The best I can tell is that the "neighborhood agent" doesn't do any better for the client, either buying or selling, than any other agent- they just have more of a name for themselves in that area, and leverage their marketing to get more listings in the area. Smart business, sure, but will it help your house get sold quicker? Probably not.

Hopefully I've not digressed to much and lost you by now. As we all do when we read something, I'm sure you're asking, "how does this affect me, and why do I care?"

Well, fundamentally, you should only care because you should choose an agent not where they live, or where they supposedly specialize, but because of these reasons:

For an agent listing your home:

-How are they going to market your home? Are they just going to put an ad in the paper once, or just put it in mls, or do more?

-What is their record for past sales? How quickly do most of their listings sell compared to the other agents in the market?

-What are his or her thoughts about the current market, and are they prepared with comparable sales to show you?

- How will they keep you apprised of any activity on the home, and feedback received. What is the long term (which realistically may happen) plan?

These are just a few of the important criteria for determining who the best listing agent for you is- none of them really have anything to do with where the agent lives, or frankly, where they've listed homes previously.

For a buyers agent, Basically, the criteria are the same. You really want to make sure you have some who works the same way you do- if you're a tech person, ask how they'll let you know of listings, etc. If they can't use email and you're "plugged in" to the nines, this is probably not the person you want... If you are highly motivated and need to move fast, and they're a part time agent, you probably need to look elsewhere.

Obviously, this business is what puts food on my table, but ultimately this business is about people and relationships. I want to work with people who want to work with me, and vice versa. I think most people feel like that.

Regardless of where your agent lives, the most important thing is the way you get along, and the knowledge they have of the transaction, and how much time and attention they are going to devote to you. This is what is going to result in a successful transaction and a lasting relationship.

So, the summer has slipped away (nearly), and with the post Labor Day downhill slide into the fall, we enter the fall market- still, so far, at least, a buyers' market. Homes that are well priced, and show well are still selling though- they really are.

Hopefully now that my son has started kindergarten, I'll be a bit more in the swing of blogging. The past few weeks have been absolutely ridiculous, but hopefully things will settle down now.

What I'm going to be trying to discuss a bit in the next few days is agency and how it works. I think often we as agents expect that our clients understand how we work, and they often think they do as well. With this mutual misunderstanding, difficulties can certainly arise.

Between my own business, and that of friends, recently this has happened enough that I think it would be a benefit to talk a bit about it. If you have a particular question about how the real estate business works, please post a question, or email me at cindy (at) cindybennett.net!