Tuesday, August 20, 2013

You Might Have a Bad Listing If.....

I am sure you have heard Jeff Foxworthy’s “You Might Be A Redneck If” Jokes…. Well this is a REALTORS take on….

You Might Have a Bad Listing If…

1. If you have to walk sideways down the hall to get to the bedroom, or if the color of the bedroom carpet looks remarkably like piles of dirty clothes ….You might have a bad listing

2. If you cannot determine the paint color of the walls for all the “stuff” hanging on them... Or if children are being scared by the sellers extensive collection of porcelain head clown dolls….You might have a bad listing

3. If the grass in the yard and/or the weeds in the plant beds are knee high. ….You might have a bad listing

4. If the yard is cluttered with broken toys, automobile parts and other memorabilia the seller has collected…and/or if the brass on the front door is greener than the knee high grass in the yard. ….You might have a bad listing

5. If the sellers don't make arrangements for their 2 dogs and 3 cats while the home is to be shown…. And/or if your feedback from the one showing only said these four words…”DOG POOP ON FLOOR” ….You might have a bad listing

6.  If the roof has 3 foot pine trees growing from the gutters…. You might have a bad listing

7. If you need to hand out gas masks during showings…. even if the seller says “Well, I can’t smell anything”… You might have a bad listing

8. If the seller stays home during showings, drinking beer and watching WWF with all their friends. (Nothing against drinking beer and WWF…but I’m just saying)… You might have a bad listing

9. If you can't find the kitchen sink for the dirty dishes and pizza boxes…. And/or if the inside of the oven appears as if a lasagna IED detonated inside it…. You might have a bad listing

10. If the drain in the bathroom shower has hair growing out of it… You might have a bad listing

And The #1 You Might Have A Bad Listing If” …

If there is a nude oil painting of either… or both… of the sellers hanging over the master bedroom waterbed…(and they refuse to take it down during showings)… You might have a bad listing

I am sure you can add a few more to this list…feel free to post comments on some of the “bad listing” items you have encountered….

Eddie Brown 2013

Are Your Clients Unhappy With You?

You May Not Even Realize They Are!

In the newly released 2013 California Home Buyer Survey Report, they touched upon a source of discontent today’s buyers have with their agents – communication.

Three out of the top five reasons of dissatisfaction with an agent, all have to do with communication. Speed of communication, ineffective communication, and method of communication top the charts at one, two, and three respectively.
#1: Slow or no response
#2: Ineffective/inefficient communication
#3: Adverse communication methods
#4: Weak negotiation skills
#5: Inability to understand needs

I am sure some of you may be surprised by these findings! In today’s world where everything in our clients’ lives revolves around instant satisfaction, it shouldn’t be too surprising. They acquire instant news through social media and News aPPS on their Smart Phones, instant cash through direct deposits and ATM withdrawals, instant coffee, overnight UPS, on-demand programming, and the list is endless.
As an agent, it is impossible to be available 24/7 to each of your clients, but it is possible to provide pertinent information quickly to them through the use of technology to give automated responses and then notify your smart phone of any incoming messages.

The chart below came from the CAR survey…it shows the preferred methods of communication being email and text at 79% combined... This was taken from the 25-34 year old age range….this group made up 49% of home purchases for 2012. Don't lose 49% of your business!

Always ask your client which method they prefer so you can communicate at their level!

Eddie Brown 2013

Monday, August 12, 2013

What Are Your Buyers Afraid Of?

We all know how first-time home buyers can be a little apprehensive when making their first purchase…but if the truth be known… most experienced homebuyers fail to retain enough knowledge from their last purchase to keep them fear free in their next one.

Home-buying mistakes are easily blamed on the Buyers Agent…for good reason. As an agent, your fiduciary duty is to protect their best interest. Here are a few areas where you need to thoroughly educate your buyers to avoid costly “rookie” mistakes…and a chance to build trust and future “referral clout”!  

Most buyers will not even consider these costs... but they are there for almost every move. Even if you move yourself there will be costs involved to rent a truck… but beyond that there will be window treatments, new furniture, decorations, appliances etc. *(NAHB claims a new homeowner will spend an average of $7400 in the first 2 years of home ownership… including $4900 in the first year on related items.)

1)    According to a NAR survey 92% of homebuyers want to purchase a move in ready home. They do not want to have to go through the aggravation of remodeling a kitchen or bath…but for those who do…. WARNING …Objects in mirror may be more expensive than they appear! Ever watch the HGTV shows where they do remodels? There are always….repeat always…overruns in the budget! So for the buyer client who wants to the updates suggest they add 15-20% to the budget for unforeseen overruns.
2)    Many buyers might throw a perfectly good home to the curb because of perceived major flaws found during an inspection. Remember: It is the home inspectors’ job to raise red flags and point out the obvious and hidden defects in a structure. But what may sound horrible in a report, (because of the way it is written or because of the buyer being “Constructional Challenged”), may actually be an easy fix… Forewarn the buyer and prepare them for these kinds of issues. We once had a client who refused to put an offer in on a property they had fallen in love with because of plaster cracks above some of the doors in the home.  After an inspection by a licensed contractor we determined it was cosmetic and was repaired with a $5 can of plaster and some touch up paint.
3)    Don’t let your client have a “renters mentality” with things like paint and carpet. When they were renting, they didn’t have the ability to change many of these items…but once they own the home, paint and floor coverings are relatively inexpensive….

Many first time buyers are not aware of the ongoing costs of homeownership because their landlords have always paid these costs from their monthly rent checks. Kiplinger Reports states to estimate the following for a $250,000 home (expenses escrowed over a five year period):

ü $2500-$3000 per year for Repairs and Routine Maintenance such as painting, appliances, HVAC, roofing, carpet, plumbing, etc.
ü  $4000 per year for Insurance and Taxes…(most likely escrowed by the lender.)
ü $1200-$2400 per year for Lawn Care…even if you do it yourself you will still need to have a mower and gas, seed and fertilizer etc.
ü $300 a year for pest control.
ü ???? Cost of your time to maintain your home and yard.

 Strongly urge your buyers to get a home warranty to “insure” against repairs for covered items…make sure they understand what the warranty covers and most importantly… what it doesn’t cover. The money paid for the warranty is like an escrow account for when a major break down occurs.

Since there are certain to be unanticipated costs which show up in the first year of homeownership… make sure your clients cushion their budgets so they don’t panic when the dishwasher springs a leak and ruins the hardwood floors.

We hope this information helps you to ease your clients fears of homeownership.

Eddie Brown ©2013