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Buying: Let us set up a direct MLS link, called a Portal, for your next VIP property email alert. Portals show all the market action and allow properties to be sorted. Portals give the competitive edge in finding properties and making offers.
If you lost a home to short sale or foreclosure before 2010, now is the time to get re-qualified to buy. Prices, down payments, and interest rates are all still very low making the cost of home ownership quite affordable. Make the best use you can of this opportunity.
Selling: Below are July 2012 average and median home prices for several counties. Lately, fewer foreclosure listings have resulted in buyer bidding wars, particularly for homes priced below median. These values can give some guidance about any property sales you might be considering. Don’t hesitate to ask for my specific input.
..........County: Median Average
........Alameda: $463,840 $536,692
.Contra Costa: $349,900 $480,004
..............Lake: $125,900 $144,857
.............Marin: $770,000 $986,538
.....Mendocino: $214,900 $279,011
.............Napa: $327,550 $365,433
San Francisco: $725,000 $1,186,072
....San Mateo: $749,000 $997,301
...Santa Clara: $679,998 $915,450
..........Solano: $189,750 $215,076
........Sonoma: $325,000 $384,923
Investing: In case you haven’t noticed, rents are climbing – the natural result of no lending to buyers that lost a home to foreclosure or short sale during the last three years. Now is the time to focus on building a rental portfolio of cash flowing properties. Lenders do require more down payment and offer a slightly higher interest rate, but the investment should position you nicely for future appreciation as the market recovers. Don’t hesitate to ask any question you may have regarding your personal investing situation or any specific property.
Loan Mods: Word on the street - if you have significant assets (401k, stock portfolio, rental properties) don't expect to get a loan mod…
When monthly income/expenses is itemized in the pre-qual paperwork, be sure the end result is positive - like have $50-$100 left over per month. Any negative amount will be interpreted that you are too broke to pay for a loan mod...
Once last hint - check out www.loansafe.org. This “gossip” site about what works/doesn't work with specific servicers may be just what you need to be successful in obtaining a loan modification. Good luck!
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She recently founded Home Owners For Justice and can be contacted at (707) 578-5727, cjholmes@cjholmes.com, www.cjholmes.com, or www.HOFJ.org
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Listen up! This announcement applies to every California upside-down homeowner that refinanced since they purchased their home, and every upside-down investor that purchased or refinanced a home or 1-4 units.
It used to be: If the owner refinanced his home, or the property was an investment (1-4 units), the owners were on the hook to pay the deficiency if the lender decided to sue them for it. (deficiency: the difference between what is owed on the loan(s) and what the lender(s) receive(s) as payoff).
NOW: On July 15, 2011, CA legislature enacted a new law protecting homeowners and investors against deficiency liability after a short sale in California. Note that this law applies only to single family homes and 1-4 units. And this law does NOT change the deficiency liability of owners if the property goes to foreclosure. The old rules still apply.
So in general (please call us for exceptions), homeowners that refinanced and INVESTORS that bought or refinanced after purchase are now NOT liable for deficiency IF they sell the property short. They can still be liable for deficiency if they go through foreclosure as they were before.
Prediction: Watch the for the coming boom in short sales! If you thought 35% short sale market share was high (Jan 2011), short sale market share will probably skyrocket before this mess is over
Please contact us to help determine your specific situation. We care about you and want to be sure you’re off the hook. We also provide very private solutions to short sales, and do everything we can to reduce your stress and even keep you in your home if possible.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com
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I've finally figured out the ONE INTERVIEW QUESTION to ask an agent/realtor/broker that will immediately demonstrate if you, the buyer, will be well represented.
Interestingly, you, the buyer, don't even need to know the answer to quickly determine if the licensee knows the answer. And if you can't remember this question, please write it down and start your interview with this. Why waste time?
Here is the $15,000 question: "Can you explain liquidated damages to me and how that can be used as a buying strategy?"
If the licensee looks like a deer caught in the headlights, run. Your money is at great risk.
If the answer seems like gobblety-goo to you, it is. Run.
You deserve smart, experienced representation that will not ignorantly risk your money.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com
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The scare of another drop in real estate prices is distracting buyers from what is really important. Affordability.
Everyone needs to live somewhere, choosing to either rent or own. Now, with many homes actually priced below their rental value, owning the home costs less than renting it. And that’s not counting ownership tax advantages.
Rental demand is growing, increasing rents. So why be subject to a landlord and increasing rents, when by purchasing, the loan payments will be the same for the next 30 years?
Besides affordable home prices, loans are still very inexpensive and have easy, 3.5% minimum down payments. Higher down payments, up to 20%, are being pushed by both banks and the government. This means that for a $300,000 home, the down payment would increase from $10,500 to $60,000!
That’s a lot of saving up for any renter to get into home ownership. There is no final decision yet about increasing the minimum down payment to 20%. But without a doubt, down payment increases will make it increasingly harder in the future for renters to step into home ownership.
With both affordable home prices AND affordable down payments, now is definitely the time to buy.
Look smart tomorrow and be glad you bought today.
CJ
Holmes, real estate investor since 1977, broker since 2005, and market analyst
since 2007, has personally handled hundreds of transactions, viewed thousands
of properties, and dealt with countless agents. She also owns a
portfolio of income producing properties, and has developed unique market analyses
to determine and predict price trends, which principles apply to every market
nationwide. The buyer-seller motivations, the lender-bank restrictions, and the
market dynamics are universal. She can be contacted at (707) 578-5727,
cjholmes@cjholmes.com,
or www.cjholmes.com
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It is not only the competition of cheaper foreclosures that are hurting builders. Builders are continuing to hurt themselves by doing business in such a way as to cut out buyers’ agents, seemingly to increase builder profits and more easily manipulate buyers.
Bad news travels like the wind, and by now most agents probably know how a builder may demand the buyer’s agent pay for the buyer’s concessions out of the agent’s commission. This is one way builders shoot themselves in the foot.
Another builder policy is to immediately inform buyers that show up without an agent, that the house will cost them more if they use an “outside” agent. So most buyers use the builder’s agent, not understanding the lack of representation may cost them far more in the long run.
Builders also demand offers be written on the builder’s contract, which conveniently sidestep many buyer protections written into standard CAR contracts. Typical builder terms may include insisting the buyer use the builder’s lender, and that the buyer give the 3% earnest deposit directly to the builder, without recourse.
Considering how many builders have gone bankrupt these days, it’s hard to imagine this industry even being allowed to use these contracts, or that any sane buyer would ever agree to give money directly to a builder before the house was done.
In my opinion, Builders should revisit their business model with an eye to partnering with agents instead of pushing them away, and recognize they need to provide more buyer protections.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to every market nationwide. The buyer-seller motivations, the lender-bank restrictions, and the market dynamics are universal. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com
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I just did. On 3 different sites. Guess what? The values were $300,500, $366,180, and $399,000. That's 33% and almost $100,000 difference from one site to another.
Then I looked at the market and found two comparables at $650,000 and $815,000! Now we're talking real money.
So much for algorithms. In my experience, this fuzzy math is inconsistently inconsistent. In other words, the property price generated by a website formula is randomly too high or too low, and there’s no way to know which it is.
These formulas seem to ignore:
1. Lot size
2. Lot location – math doesn't care but buyers do!
3. Non-sale “sales” – like when a family member buys out another member for half price – “oops” goes the value, and the neighborhood!
4. Condition of the property – math considers it the same whether fabulous or torn up
It can be fun to see what a property is “worth” using these websites, but don’t believe their gospel. Get a real valuation from an Expert before you lose out.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to every market nationwide. The buyer-seller motivations, the lender-bank restrictions, and the market dynamics are universal. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com
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There are two types of lies: commission - where something said is untrue, and omission - where a material fact is intentionally left out.
In the last 30 days, my clients and I have been the brunt of a rash of lies - omission and commission of property facts and tenant rights by sellers and their agents, and commission of agent exaggerated claims.
Everyone understands mistakes, but when agents brag in blogs about sales they never did, or sellers and their agents insist on lying about property or loan facts, or lenders write approval letters for buyers that don’t really qualify, the rest of us honest and hard-working participants must take a stand.
Agent claims can be independently verified. If an agent makes a claim, like how many transactions they’ve done, demand proof, or contact us to help you get that proof. Did you know, that according to the California DRE, 85% of agents do one deal or less per year?
Sellers should remember they are liable in a court of law for the actions of the agents they hire. And it’s fraud to intentionally withhold material facts from or lie to the buyer about a property you’re selling.
Loan officers should not give approval letters without verifying the buyer actually qualifies for the loan. Doing so causes great harm to the buyer, the seller, and both agents involved in a transaction with that buyer. Everyone is depending on you to get that loan for the buyer.
And especially these days, Buyers better ensure they are working with team of knowledgeable experts and advocates, that can and will perform as expected. To do otherwise could jeopardize their purchase plans.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends which apply to EVERY MARKET NATIONWIDE. The buyer-seller motivations, the lender-bank restrictions, and the market dynamics are universal. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com.
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In case you haven’t seen this yet, California has published an Energy Booklet, stuffed full of specific ways you can reduce your home energy costs, and increase its energy efficiency. From simple yet powerful ideas like keeping out drafts, replacing nightlights and holiday lights with LEDs, and adding insulation, it clearly lists specific ways to improve your “energy wise habits”.
Bookmark this link as your resource: http://www.energy.ca.gov/HERS/booklet.html
See page 9 – did you know that “A $100/m reduction in your utility bills frees up enough cash to pay an additional $17,000 increase in your mortgage?” Thinking energy smart is definitely thinking money smart.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends. Her focus has been the 9 Bay Area Counties, but the analyses principles apply to EVERY MARKET NATIONWIDE. The buyer-seller motivations, the lender-bank restrictions, and the market dynamics are universal. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com.
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Too many sellers seem to assume all agents have similar knowledge and experience, work equally hard, know everything there is to know about selling property, have the resources necessary to mount a good campaign that will attract as many buyers as any other agent would, and will then be a superb negotiator when an offer comes in.
Is it any wonder a seller feels cheated when it turns out their agent didn’t understand the market, took horrible pictures, didn’t have a good online presence, never got showing feedback, and ended up losing them months of time sitting on the market with no action.
Unfortunately, this happens all too frequently. Now, more than ever before, excellent results require excellent and experienced representation.
Want to save yourself heartache when selling your home and maximize your seller net proceeds, too? Interview before you hire. Ask to see the agent’s current listings, ask about their agent feedback program. Ask how many sellers they’ve represented, and how many in the last two years. Ask them what their signage looks like, and exactly how they attract buyers. Ask them pointedly how they negotiate offers.
At the very least, insist your agent know which buyers are likely to be interested in your home and if your property will qualify for a buyer’s home loan. If an agent seems confused or upset by any of these questions, please move on. You owe it to yourself and your net proceeds to find an agent that knows these answers, and cares about your results for you.
The first step to “selling your property right” is to hire the best seller’s agent you can find.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends. Her focus has been the 9 Bay Area Counties, but the analyses principles apply to EVERY MARKET NATIONWIDE. The buyer-seller motivations, the lender-bank restrictions, and the market dynamics are universal. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com.
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Too many buyers seem to assume all agents have similar knowledge and experience, work equally hard, know everything there is to know about buying property, know all the intricacies of ever-changing lending criteria, and will be able to refer them to reliable service providers like lenders, inspectors, and escrow officers.
Is it any wonder a buyer feels cheated when it turns out their agent led them astray by allowing them to make an offer on a property that couldn’t be bought, or spent money on inspections and appraisals before learning they actually didn’t qualify for the loan?
Unfortunately, this happens all too frequently.Now, more than ever before, excellent results require excellent and experienced representation.
Want to save yourself heartache down the road and thousands of dollars?Interview before you hire. At the least, insist your agent know about property loan criteria (many properties are now un-financeable), what the foreclosure status is of a short sale, what a property is really worth regardless of list price, and if you actually qualify for the loan before you waste your money.
The first step to “shopping right” for your next home is to shop for the best buyer’s agent you can find.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends. Her focus has been the 9 Bay Area Counties, but the analyses principles apply to EVERY MARKET NATIONWIDE. The buyer-seller motivations, the lender-bank restrictions, and the market dynamics are universal. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com.
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Perhaps you have read the article "Site gives real estate agents inside scoop" specifically mentioning Agent2AgentLink and Top Agent Network. These online networks are described as ways for agents to post details online about listings coming to market so they can be matched to interested buyers. This activity obviously occurs before the seller signs a listing agreement, which fact by itself raises serious issues. The article mentioned listing agents that have used this network to get pricing feedback from buyers agents prior to listing a property, and that at least one agent has sold a property this way.
Sellers, watch out. These type sites can be:
A) a "free for all" where a seller's net proceeds will likely be subject to a buyer's price preference,
B) a great way to enhance unapproved pocket listings for agents, and
C) a subversion of the normal listing process that exposes the seller's property to the entire buyer market.
Let's address these issues one by one.
A. Any listing agent that wants or needs buyers' agents to suggest a property price is either:
1) too new to the industry to know better,
2) not trained well enough to do a good CMA (comparable market analysis), or
3) too desperate for the income from a quick sale so gives-it-away to the first interested buyer.
Quick sales leave (seller) money on the table, and really quick sales are usually (seller) cheats. By definition, the quick sale focus is not about maximizing seller net proceeds.
B.Unapproved pocket listings are a violation of the Realtor Standards of Practice. A pocket listing is when an agent lists a property, but puts the property details in his pocket rather than on a true Multiple Listing Service (MLS).This pocket listing gives complete control over all property exposure to the listing agent, making it easy to sell to a favored buyer at the buyer's favored price or for the agent to focus on double-ending the commissions. The seller has been tricked into thinking the property is actually listed on a true MLS with lots of buyer exposure, so has little reason to doubt his agent's advice. This trick greatly reduces seller net proceeds.
These type sharing sites are, by definition and usage, promoting collusion between agents generally against the vested interest of sellers. And there is simply no way to ensure a listing agent would not be swayed by the temptation inherent in these arrangements.
C.A true MLS, like BAREIS in Sonoma County, has over the years, developed broad exposure to the buyer market and now includes every agent in five counties. This is the exposure that sellers want and expect for their listings. Giving the seller anything less than this could be considered a breach of the agent's fiduciary responsibility to the client.
In my opinion, any service described as giving the agents an advantage should immediately be suspect by all parties. Let's remember that it is the CLIENTS, the sellers and buyers, whose interests are paramount. Agents are hired representatives, legally obligated to protect and promote the interests of their client.
Fortunately, sellers can decide whom to hire and should use due diligence in doing so.
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Here is a list of skills and knowledge you need working for you this time around.
1. Up-to-speed with loans: knowledgeable of the constantly changing lending criteria you will face as a buyer, so everyone, including you, can be assured of what you can actually afford before wasting time. I do NOT recommend using a loan broker as your transaction agent as a good transaction requires a totally different skill set than a good mortgage broker skill set.
2. Empathetic: hearing your real needs and capacities, not just listening to what you say, but asking correct and in-depth questions to figure those needs and capacities out with you.
3. Industry smart: knows how to find all the properties that would be of interest to you (ie: with 83 MLSs in California, not all properties are listed where you would expect them). Do not hesitate to ask him/her directly how he/she would help you find the best property for you.
4. Your Champion: advocates for YOUR interests at every step of your purchase, including the searches, the (multiple) offers, the escrow (ie: absolute focus on getting the best deal for you). Do not hesitate to ask him/her how he/she represents the client's best interests. If he/she understands and focuses on that, you will get answers, not just a blank stare.
5. Honest and property smart: fully discloses ALL property issues even those possibly not disclosed by the seller. Ask what disclosures are usually included in the transaction.
6. Experienced: has done many successful transactions (do not hesitate to ask how many deals done in the last year or two) so you will be sure to not be on job training for the agent. Do not hesitate to ask for buyer referrals. A good representative will have buyers wanting to talk to others about their positive experience. A poor agent will be full of excuses, like confidentiality.
7. Has a good team: knows and has a good and reliable team of experts available like mortgage broker, pest inspector, home inspector, escrow officer, etc. This team can make or break your deal. Do not hesitate to ask the agent how much inspections cost, how often they have ordered inspections, and/or why they feel that a particular inspector is good, or why they selected that team member over another person.
8. Is an excellent negotiator: knows every aspect of a deal in order to capitalize on every opportunity for your benefit.(ie: typically a good agent should be able to save the buyer money even during escrow negotiations). Do not hesitate to ask the agent how he/she handles negotiations, how he/she feels about making multiple offers at the same time, how the escrow works.
9. Has solid backup: no one person can be constantly available. However, as a buyer, you do not want to be left in a lurch when your agent is unavailable. Do not hesitate to ask who will help you if or when the agent cannot. Most agents do NOT have a backup, which is one of my major complaints with the standard industry business structure. I think an independent broker is more likely to have a secretary or admin or another agent that can back him/her up as necessary.
How to find a good representative: I strongly urge you to interview several independent BROKERS (franchise brokers are not usually actively representing clients). Ask them about their experience representing buyers, and other questions stemming from and included in the attributes above.
In California, agents have only a saleperson license, and cannot practice real estate without being hired by a broker. A broker license is much more rigorous, demands more experience, more in-depth knowledge, and is the license that gets sued if things go wrong. It is much more likely you will get better representation from an active broker, than just a salesperson.
BTW: A realtor is a licensee that pays annual fees to the California Association of Realtors.
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For example, as of December 27th, 2010 in Sonoma County, CA, there were 367 foreclosure homes out of a total of 2145 homes for sale, about 17% of the market. There were also 701 homes on the market being sold short, or 33% of the market. All of them are listed for sale on the MLS, right along with properties listed by normal sellers and those scheduled for sale on an auction web-site.
There is a big difference however, in dealing with a bank seller vs. a normal seller vs a short seller. With foreclosure listings typically teaser priced, expect to be in bidding wars against other buyers, signing 20+ pages of fine print waiving all your rights against the seller (bank), then discovering you can't get a loan on that property because of the condition, you have only 7-10 days or less for inspections, must pay for any and all inspections yourself, then being penalized if you can not close escrow on the date agreed and being forced to use the the seller's escrow, which may actually have power-of-attorney for the seller instead of being a neutral third party as expected. (BTW, forcing a buyer or threatening not to accept a buyer's offer unless the buyer uses the seller's escrow is against California State Law. Insist on your rights..)
Why do buyers still offer on and purchase foreclosures? Because the property can be a great deal! Buyers just have to shop and buy very selectively and carefully!
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Wrong. A high percentage of FSBO are not profitable transactions. To be specific, more than 95% of FSBO fail to deliver a successful outcome for the sellers. What this means is that FSBO do not reap the rewards that sellers believed were possible. Experts say that's because the results of every real estate transaction depend upon a variety of factors that most sellers are not experienced with. These include knowledge about the buyer's market, pricing strategies, loan qualifications, negotiations and much more.
At CJ Holmes & Company we encourage clients who are considering the FSBO do-it-yourself route to ask themselves the following questions before they make a decision. Because our goal is to make their transactions as profitable as possible we also offer them insights. These perspectives are based upon our years of real estate experience in working with hundreds of clients to help them make the best choices possible for themselves.
Do you understand your home' target buyer market? Most owners do not really know which buyers to target or how to target them. As a consequence, they waste time, effort, and money marketing incorrectly with poor results.
Are you aware of your property's down-side to potential buyers? Many owners are not aware of what may cause buyers to walk away. Uninterested buyers will not tell the truth, and interested buyers will be angling for price concessions.
Do you understand pricing strategies? Selling a home for maximum profits requires an intimate understanding of the current real estate market. Priced too high, the property will be ignored. If the price is too low the owners will leave money on the table; most likely more than the real estate agent commissions they were trying to save.
Do you fully appreciate the effort and risks in dealing directly with the public? The schedule for showing a property is random. It is often precipitated by an unexpected phone call or drop-in at the buyer's convenience. And showings do not happen unless the owners are available.
With these random showings to random buyers comes concern about the legitimacy. Anyone can claim to be a would-be buyer in order to gain entry to the home; their intentions can range from criminal to merely satisfying their curiosity about the way the home is decorated or what possessions the owner has.
Can you qualify a potential buyer? The real estate transaction can languish weeks in escrow with property taken off the market before the owners discover that buyers, for a variety of reasons, were not able to fulfill their end of the deal.
Are you prepared to handle the purchase negotiations? Often FSBO's are targets of low-ballers who are seeking price concessions. It is human nature for buyers to be suspicious if the owners begin to praise their own property, or anxiously try to sell it. Buyers may conclude there is something wrong with the property, the neighborhood, or attempt to find things wrong in order to secure the property at a lower price. The owners must then struggle to overcome buyer objections and keep their intended profit.
Are you prepared to handle the all the legal paperwork, disclosures, and liability of not doing it correctly? Most owners are totally unprepared for the massive amount of legal paperwork required by California State Law. Contrary to popular belief, escrow companies do not formulate real estate contracts nor take liability for required disclosures. In fact, in California, the seller, not the escrow company, is liable. Escrow companies only take directions regarding their deal from the parties involved. Owners who are not familiar with contracts, disclosures and financing instruments may find themselves unable to properly take care of this phase of the transaction.
CJ Holmes & Company knows what it takes to successfully and, as profitably as possible, complete each and every real estate transaction with which we are involved. We handle all of the details in a manner that is cost-effective for our sellers.
We know that FSBOs are filled with risks and inconveniences that could cost sellers far more than they are prepared to pay. In fact, this is what makes most FSBOs a disappointing experience.
CJ Holmes, owner/broker, has been investing in real property since 1977. Starting with a fixer home, she and her husband have built a portfolio of income-producing property. Licensed in 1998 to facilitate the constant search for investment property, CJ began Agent Representation for Buyers and Sellers in 2003. In March 2005, she earned her Broker's License and now brings her real estate investment expertise, experience, and energy to every client.
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Indeed, you have a right and an obligation to know exactly what to expect from your real estate professionals. That is the only way you can make the right decisions for your particular situation.
To assist you, here are four of the more common Myths people experience and the Facts that will help them set the record straight:
1. Myth: All listing agents will have similar excellent marketing programs for selling my property.
FACT: Research shows that 85% of agents do one transaction or less per year. As a result, many agents have little experience, insufficient funds to handle an effective marketing campaign, and end up doing the minimum or less (i.e., no photos) and calling their effort good enough.
Unfortunately that leaves thousands of dollars left behind on the table due to inadequate marketing, incorrect pricing, and ineffective negotiating. Lack of attention to contract details, or unscrupulously selling to a pocket buyer to get the entire commission, also result in less profitable transactions for the sellers.
At CJ Holmes & Company you work with a seasoned Investor-Broker who will guide your sale to lock in profits others leave behind. We provide expert market analysis, proven pricing strategies, and target and entice the correct buyer market. We also give you outstanding photographs, customized professional signage, showcased online listings, multiple search engine exposure, individualized property websties, and capture all buyer calls. Brochures and email blasts to a large buyer database all combine to generate more than quadruple the buyer leads, generate multiple offers and maximize seller proceeds.
2. Myth: Buyer's agents will show all property to their buyers regardless of what commissions are offered to them.
FACT: As a business consideration, many agents review the commissions offered prior to deciding which properties they will show their buyers. Just as a seller has a choice for what commissions to offer, the agents have a choice of what they will accept and work for.
At CJ Holmes & Company you get what you deserve: the most possible seller proceeds for your property. Since the sales price is directly affected by demand, the best way to enhance demand for your property is to ensure that it is seen by every buyer in the market. And the best way to ensure that is to adequately compensate so each agent is motivated to show your property to his/her buyers.
3. Myth: Bringing many listings to the same agent makes negotiating a commission discount good business.
FACT: An agent should carefully consider what commissions are offered for the effort. Because there is no way for an agent to sell separate properties in bulk, there is no way for them to affect any savings in the marketing and transaction efforts for different listings. The listing agent must simply agree to do the same work for less.
At CJ Holmes & Company you get the best market value possible for your property. Our marketing program virtually guarantees the seller will get the highest net proceeds possible in any given market at any given time. We know that listing agents who agree to commission discounts are often either desperate for business or not motivated to do much marketing work, causing seller proceeds to suffer badly.
4. Myth: Agents never really earn their commissions. It is mostly just free money for them at your expense.
FACT: Some agents don't do much for the money they receive. Others will more than earn their commissions. It is up to the seller to understand that all agents are not created equal. Therefore, it will be important to hire the best representation money can buy.
At CJ Holmes & Company you experience quality representation that combines extensive experience with a focus on building the client's wealth. To this we add our powerful marketing program, significant personnel resources, strong negotiation skills, and excellent escrow management. All of this often produces greater than expected seller proceeds.
Remember, you have the right to receive the best representation possible. But unless you know the difference between fact and fiction you may not be able to determine whether or not your real estate professional is working in your best interest or theirs.
Ask questions and expect answers that make sense. Place your needs and goals as the top priority. Even if this is the only real estate transaction you will experience in your lifetime, you still want it to count. And if this is one of many real estate transactions, you still want them all to be successful.
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Indeed, you have a right and an obligation to know exactly what to expect from your real estate professionals. That is the only way you can make the right decisions for your particular real estate situation.
To assist you, here are four of the most common Myths people come across and the Facts that will help them set the record straight:
1. Myth: It does not matter whom I hire to represent my purchase, as all agents write similar offers anyway.
FACT: Research shows that 85% of agents do one deal or less per year. Many agents have little experience, and do not want to prepare numerous offers that take a lot of time and get rejected. They are not concerned that their choice may cost the buyer thousands of dollars more on the purchase because they have ineffectively negotiated or not paid attention to contract details.
CJ Holmes & Company knows that you deserve a seasoned Investor-Broker who, with expertise, will guide your purchase to get you the best deal others just ignore. The best time to lock in profits is at the purchase. Since you only get one chance to buy the property the best way possible, it makes sense to hire excellent representation that focuses on building your wealth.
2. Myth: I will see all the available property for sale no matter which agent I use because it is all listed on the MLS (Multiple Listing Service).
FACT: Are you sure? Which MLS? In California alone, there are 83 MLSs. Most agents belong to only one, and that can possibly limit what you see. Sometimes agents focus just on their company listings which is often to the Buyer's detriment. Many commercial brokerages completely ignore the MLSs. That means that unless your agent knows how to find these properties for you, you won't see them.
CJ Homes & Company provides Buyers with access to ALL the properties for sale, no matter what type property being sought, or which brokerage has listed it. We give our buyers sophisticated shopping tools right at their fingertips, and expert guidance from our years of experience representing hundreds of buyers.
3. Myth: I will get the best service and deal if I use the listing agent for my purchase.
FACT: Most listing agents will say what you want to hear, just to get your offer. They will be focused on a quick, easy sale to get the entire commission, and likely not be inclined to negotiate as hard for your side as for the side that has already hired them.
By the way, it is not good business, under the guise of not working with an agent, to get the listing agent to show you the property, answer all your questions, and then use someone else to write the offer. Please don't do it. That often boomerangs badly.
CJ Holmes & Company uses professional investing techniques designed just for clients. From developing a solid plan of action, to working that plan with multiple offers for multiple properties, our clients are assured of getting the best the market has to offer. This is true whether your purchase is for your first home, or your next investment property.
4. Myth: My agent will be there for me whenever I need him or her.
FACT: ...except when he or she is out of cell phone range, on vacation, ill, has a family issue, takes another job to make ends meet, or quits...
CJ Holmes & Company gives you prompt answers and reliable support when needed. We have designed our services to incorporate the expertise of salaried professionals so our clients are not dependent upon just one commission-based person for everything they need.
We understand the value of doing good business and you have the right to receive the best representation possible. But unless you know the difference between fact and fiction you may not be able to determine whether or not your real estate professional is working in your best interest or theirs.
Ask questions and expect answers that make sense. Place your needs and goals as the top priority. If this is the only real estate transaction you will experience in your lifetime, you will still want it to count. And if this is one of many real estate transactions, you will still want them all to be successful.
CJ Holmes, owner/broker, has been investing in real property since 1977. Starting with a fixer home, she and her husband have built a portfolio of income-producing property. Licensed in 1998 to facilitate the constant search for investment property, CJ began Agent Representation for Buyers and Sellers in 2003. In March 2005, she earned her Broker's License and now brings her real estate investment expertise, experience, and energy to every client.
CJ helps buyers lock in profits, maximizes sellers' net proceeds, and works extensively with real estate investors. Her wise guidance literally means more money for her clients, and comes from years of personal investing experience, and hundreds of transactions. This last market collapse has driven her to develop mathematical models designed to predict the future of real estate prices.
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The belief that there is only one Multiple Listing Service (MLS) is one of this country's biggest real estate insider secrets. There are actually 83 MLSs in California. Very few people outside the industry know this and most agents do not want their clients to know about it. Why? Because then they would lose their clients to another agent who won't keep the secret because of commitment to providing better representation. Such representation (or its lack) underscores how ethical and successful an agent is.
The Multiple Listing Service is a computerized database of properties listed for sale to which only agents and brokers have access. It is designed to allow them to see all the properties for sale so they may help their buyers purchase any property, no matter who listed it.
The idea of an MLS sounds great, doesn't it? But here's the catch: no single MLS in the state has all the listings. The MLSs are typically by county or region within a county. And each MLS has its own monthly fees for agent access.
Imagine what it would cost an agent to belong to all 83 MLSs. The total access fees would be thousands of dollars a month, in addition to paying each of the MLSs a one-time non-refundable initiation fee.
So here's how this secret hurts Sellers:
The Seller walks into a local real estate office and says, I would like to list my property for sale. The agent says, No problem. I'll put it on the MLS (implying there is only one MLS). Then the agent lists the property in the MLS the agent belongs to - NOT necessarily the MLS where the property exists. So now agents local to the property can not see the listing and do not even know it is for sale. That leaves the Seller wondering where all the buyers are.
Real estate agents who understand this join multiple MLSs, and double or triple enter Seller listings in the MLSs that make the best sense for that particular property. This definitely gives the Seller an advantage over an agent that does not do this. However, the time and expense of representing Sellers this way simply prohibits many agents from providing this service, no matter how much they may want to.
Here's how this secret hurts Buyers:
Buyers think that all the property they are interested in will be on the local MLS. But it's not. And unless the Buyer's agent belongs to and searches many MLSs, those properties will not be found. (See the above mentioned Secret Hurts Sellers). Those local properties become invisible to Buyers whose agents do not realize that there are many MLSs, don't invest in multiple MLSs, don't dedicate the time it takes to search several MLSs, aren't concerned enough to try to provide their Buyers with better representation, or simply do not have enough resources to do so.
Real Estate agents who can afford to care as much about completing a quality transaction as the Sellers do, understand this, and dedicate the resources, time and energy to enter listings multiple times. Failing to provide Clients with as much as exposure as possible, because it may be too much effort or expense for the agent, definitely leads to poor sales results and lower net proceeds, particularly for the Sellers.
CJ helps buyers lock in profits, maximizes sellers' net proceeds, and works extensively with real estate investors. Her wise guidance literally means more money for her clients, and comes from years of personal investing experience, and hundreds of transactions. This last market collapse has driven her to develop mathematical models designed to predict the future of real estate prices.
