Last week while previewing for a buyer in the Bellevue area, I ran into a home without a keybox, by sellers request. 

On mission that day I saw about 30-35 homes.  It was a very productive day, I am able to preview about 8-10 homes an hour depending on proximity.  I generally run in and tour while taking notes and comparing the home to the rest I have seen that day.  Previewing real estate without buyers is quite fast.  Once I have narrowed the field and chosen the best listings to show I show the buyers at a much more methodical pace.

My clients were looking for a 3 bedroom home with 2200+ sqft in Bellevue.  One of the homes I tried to preview was listed by a flat fee FSBO company.  The seller had requested to not have a MLS keybox on the door.  I was unable to reach them over the phone so I was unable to view the home.  That day I was able to narrow the field from 30+ to 12.  When I showed the homes to the buyers we were able to narrow the field further to 3 homes.  After the buyers had chosen the perfect home for themselves the sellers of the home that didn’t have a keybox called.  Too Late!  Unfortunately they missed out on an opportunity to have their home shown.  While just from the looks of the exterior of the home it wouldn’t have matched what my clients were looking for, it could have had a great interior.

 
I think the sellers had received some bad advice.  The easier it is to show a home the more it will be showed.  While I preview homes before showing them to buyers, some agents don’t even do that.  They drive around with the buyers calling and making appointments as they go.  If a home isn’t available they just skip it and the buyers buy something else.  Presentation and easy showing are just one of the keys to selling your home.

Establishing your home’s true market value (selling price) is one of the most important steps in the selling process. It is vital to do it right the first time. There is a fine line between getting as much as you can for you’re home or asking for too much and have it not sell, or worse yet not enough and leave money on the table.

1. Your real estate agent can give you an estimate of your home’s value. This is called a Comparable Market Analysts or CMA. Your real estate agent will compare the features and benefits of other homes that have sold recently to your home to help you determine the value. There are many other factors that tie in to the CMA. What is the average time it takes to sell a home? What is the sale price compared to original listed price? An experienced real estate agent will spend hours working on your CMA, if you are interested in having this report just let me know and I will be more than happy to provide you with this free of charge. I will also provide you with a report of the homes that are currently on the market, and their sale price. This will give you an idea of what homes in your area are going for, but keep in mind this is an asking price not necessarily a selling price.
2. Public Records are available that can help find the market value of your home. Any time a home or property is purchased, the deed is recorded at the county record office. These records list the square footage in a home, the price the homes sold for, how many rooms/bathrooms, if it has a basement, etc. Keep in mind these reports are generally one to two months old and they will not provide you with the information on the condition or interior quality of the comparable properties. Only an appraiser or a real estate agent will have access to this information. The MLS has pictures, descriptions, accurate square footages, and detailed information about the home.

It is vital that when you’re ready to move to the next step and sell your home you should get a professional opinion to determine the true value of your home. Let us know if we can be of assistance.

It is so important that you have an agent who is willing to WORK for you, DEMAND that they do. All too often I meet people that tell me horror stories from their previous real estate agents. Like when it seemed that the real estate agent only showed them houses that were out of their price range, or when the real estate agent showed only one nice home and three gross ones and then said let’s make an offer. These are stories of real estate agents working for themselves not for their clients. This is why it is important that you choose a real estate agent that you feel comfortable working with, not just the first agent that answers to phone or whomever is sitting at the front desk at your local Realtors office. Choose one that you have researched and know how they work for their clients.

• Your agent should have the statistical knowledge of the area you are looking in.
• They should know the inventory and have seen the properties before they show you. This way they can weed out the junk and only show you what is worth buying.
• Your real estate agent should do their best to work with your schedule.
• Questions, Questions, Questions, your real estate agent should be asking you a lot of them.
• By actually listening to your answers during the intake process, your agent should have a good understanding of what you are looking for in a home.
• If you have questions about a home you have seen, your agent should be able to get that information for you.
• While your real estate agent’s opinion may be one you value, you’re buying the home not them, your agent should not pressure towards one home or another, unless there is a definite reason. All too often, one person’s tastes are different from another’s and this can lead to a biased opinion.
• Guilt and shame are not emotions that you should feel when working with your real estate agent. Your not buying a house because of them, they’re assisting you in YOUR purchase.
• Once you have narrowed the field to a few homes, your real estate agent should take you back to compare them a little closer, so you can make an informed decision.
• And finally before you make an offer, your real estate agent should perform a CMA, or Comparative Market Analysis, on the home you want. This way you have an idea of how it compares to what has sold nearby, and structure your offer based on that.

The Guide to Seattle Real Estate

  Last night I attended a small presentation by Paul Brainerd at the University of Washington, Bothell Campus.  I was very impressed.  Paul talked about his foundation, The Brainerd Foundation, and most importantly how they go about allocating the 2-3 million in grants they give out each year.  The Brainerd Foundation specializes in place based conservation.  Place based means they find a place, geographic, that is environmentally important and viable for change and try to develop the “sustainability” of the community in that place.

Sustainability, what is it?  Well it is really a pretty broad term encompassing socio-economic-politico-cultural community.  Everything is so connected.  No community is an island.  Paul spent considerable time describing the research they do to find an area that is both important and viable.  Once they find this place they invest money in other non-profit organizations that work to institute change in the community.  They aren’t throwing money at communities that aren’t willing to change.  Rather, they are finding communities that are on the brink of change and helping to move them in the right direction.  You can learn more about Paul and what they do on his website. 

What I really got out of it was the concept of a Strategic Communication Plan; the outcome of the research and how they go about implementing their vision.  I am going to walk through this process and then insert examples of how, in my own business as a Seattle real estate agent, this applies.   

First they created their vision of helping to create sustainable communities through grants to non-profits.  My vision is to create a sustainable business in Real Estate that is education based and helps first time buyers into a home.  By building my business on education and being 100% client centered, it will be based on positive relationships and eventually self supporting through referrals from satisfied clients. 

They researched the possible geographic areas for environmental, social, economic, political, and even media presence and form.  I have researched the Seattle real estate market for education, marketing, client, market share, and interest.  Finding a definite need for a client centered specialist that works with first time buyers and second time move ups. 

Understanding that they only have 2-3 million dollars to allocate to specific non-profits they search for the greatest impact from their investment.  What a business would think of as Return on Investment or ROI.  Understanding that the scarcest resource that I have at my disposal is time; have to find where to most effectively spend my efforts toward building relationship and providing education and consultation.  My business is built on First Time Home Buying Seminars and other Financial Planning Seminars in addition to many other educational programs I am involved in, like my blog www.GuideToSeattleRealEstate.com. 

Once they have found a target for their place based conservation, they spend their resources on non-profits that can affect change.  I asked him how they best affected change in a community and shockingly enough is was by building relationship.  If the right 5-6% of the population is influenced, then the rest will generally follow.  People that seek out education before making important decisions are also typically the same people that others turn to for advice and direction.  So by spending my efforts building relationship with the right 5-6%, others will follow and create a business that is itself sustainable.   

Of course once they have spent their money they check back and attempt to measure the results.  Typically 2-3 years later.  They maintain a 15-20% failure rate, if they are not pushing the envelope enough then they are not effectively leveraging their funds.  Just like playing the stock market.  The larger the risk the greater the possible return.  As I have been developing my business model and forming my strategic vision I have accepted a much higher risk level.  I think that as an entrepreneur the risk level must be more along the lines of 60-80%.  If I am not totally pushing the limits, I am not learning and I will not have the chance for the return that I am looking for.  By risk I mean the ROI on the time I spend on specific task, not how I work with clients once I establish that relationship. 

I have many books that have vocabulary sections that have phrases in them like “Strategic Communication Plan” and many others, but when I hear about the correct implementation and how these terms are used I really begin to understand what they mean and how to effectively use them in my business.  Without great examples like these, they are just vocabulary words and have little impact on my business.

The Guide to Seattle Real Estate

This a continuation of an earlier Post, I hope this increases your value of the use of a buyers agent.  Rather than calling the listing agent (the agent who represents the seller) you should have your own representation.  It is much like going to court without a lawyer, you just wouldn’t do it.

·         Free to the Buyer: The buyer very rarely pays for the agent’s services. The seller at the end of the sales process generally pays the agents that are involved in the transaction. The agent that the seller chooses usually has an agreement with the seller on their commission on the property. In return, the agent selling the home usually splits the commission with the buying agent. So, you should take advantage of a free experienced Seattle real estate agent because the seller, in reality, pays for both agents anyway. If you are dealing with a For Sale by Owner property, the buyer can choose to pay their agent’s fee or the commission can be negotiated with the seller.

 ·         Experience: Great Seattle Buyers Agents look at houses all the time.  They know the industry, the market, and what it takes to get you your dream home.  They are involved in purchasing and selling homes all of the time.  For you this may only be your first, second, or even third home purchase.  But for your agent it is a regular part of their daily duties.

 ·         Market Knowledge: The buyer’s agent is knowledgeable of the market in the area you are looking.  The more you know the better educated offer you can make on a property.

  ·         Your Advocate: Knowing you have an agent that you can trust when it comes time to negotiate and someone who is looking out for your best interest is vital.

Please before you make that call, get in touch with a Buyers Agent that will look out for your best interests.

The Guide to Seattle Real Estate

We are often asked why a person should use a buyer’s agent.  Why not just call the agent with the sign in front of the house I want to buy?  Hopefully I will be able to answer this in the next few posts. 

• Save Time: Without the help of a professional Seattle real estate agent, the search for buying or selling a home can be very time-consuming. A good real estate agent is proficient at sorting through multiple listing properties and finding the results that are tailored to your wants and needs.  Agents are subscribers and members of the MLS (Multiple Listings Service). This organization has lists of properties that can be searched by different needs, as well as wants in a home. The listings on the MLS are more detailed and advanced than what is accessible to the general public. By using an agent and having access to the MLS you can save a tremendous amount of time because your agent is better trained to do the looking for you and find the properties that fit your specific needs.
  
• Get the Keys: Imagine if you actually had to call every seller anytime you wanted to look at a home. You would have to set a time that would be convenient for the seller as well as juggle your schedule to meet the seller’s availability to every house you wanted to see. Agents have keys to almost every house that is for sale. Your agent can show you numerous houses in one meeting that meets your schedule.
  
• Negotiation Experience: A great real estate agent is experienced at negotiating prices and conditions for properties, whether you are buying or selling. The negotiation process is important and can mean the difference between buying your dream home and your second choice. Agents can also give great advice to increase your odds in a competitive bid situation.
  
• Closing Knowledge: Closing the deal can be a very complicated process with a lot of important details. Using a professional Seattle real estate agent will insure that your closing process is completed correctly and on-time.

 More to follow in Part Two
The Guide to Seattle Real Estate

This is part three of the benefits of home ownership series.

Forced Savings 

Many people are not very good at saving money; fortunately, a house is an instant savings account. There are two different ways you grow your savings:  

1. Each month as you pay your mortgage a percentage goes towards your principal. The amount that accumulates in your principal is called your equity. During the early years of your mortgage, it will seem like there is not much equity but it is better than nothing when compared to renting. It will continue to grow the longer you own your home.
2. Your home will appreciate. You can also make home improvements to your home that will also raise the value of your home.  Many studies have shown, throughout history that the best financial investment for most Americans is their own home.

More Space 

Inside or outside, you will generally have a lot more room if you own your home. You will often have your own laundry space, parking space, bigger rooms, bigger yard, and a lot more storage space. 

Pride 

Owning your home brings a sense of pride as well as reflects responsibility. It feels great to know that you are working towards something that will be 100% yours someday. The Guide To Seattle Real Estate

This is part two of the benefits of home ownership.

Freedom & Individualism 

When renting you are restricted to what improvements you can make to your home. You not only have to get permission, but it doesn’t make sense to improve someone else’s home, benefiting the homeowner and not you. By owning your home you have the legal right to do what you want to improve your home. If you want to paint, add new carpet, put on siding, remodel, or even own a pet it is entirely up to you. Owning your own home gives you the freedom to make your own decisions and create an atmosphere that you enjoy living in, as well as receiving all the financial benefits from your improvements.  

Stable Monthly Costs 

While being a renter, you can count on your rent to consistently go up every year.  By getting a fixed rate mortgage, you know exactly what your monthly payments will be for the next 30 years or how ever long your note is for. No surprises! If you decide to get an adjustable rate mortgage your rate will stay within a certain range for the life of the note. Who knows how much rent will be ten, twenty, thirty years from now? By owning your own home and knowing exactly what expenses you have for the next thirty years you can make concrete investment plans with out being concerned over the housing market. 

Stable Housing 

Renting your home will always give you the uncertainty of where you will live when your lease is up. Landlords can kick the renter out when their lease is up. Just like that, you are looking in the newspapers for a place to live and reliving the moving nightmare all over again. By owning your own home you get to decide when it is time to move on. 

The Guide To Seattle Real Estate

This is part one of a three part series on the benefits of home ownership.  If you are considering making the move from the renting phase of your life and would like to transition to the home ownership phase then I hope this helps you make your decision.

Leveraging Your Money 

One of the financial benefits to buying a home is the leveraging of your money, especially in Seattle. Basically, leverage gives you the benefit of using a small down payment to make a big investment. You can yield huge profit on a small front-end investment. For instance, if you purchased a $600,000 home with 5% down, you leveraged the $30,000 down payment to purchase an asset worth 40 times that amount! 

Real Estate Appreciation 

The advantages of leverage really become obvious with appreciation, or the increase of net worth of a property. For example, if you paid $30,000 down, on the same home from the previous example, and occupied it for 5 years and had a modest appreciation of 3% a year your home would be worth over $694,000. By only investing 5% down, you can still indulge yourself in the full appreciation value. That is a gain of $94,000 on your initial investment of $30,000.  That is just a modest appreciation, while yes we are bound to have a couple of flat years approaching, here in Seattle we have experienced 10% and even higher in some areas.

Tax Savings 

You may constantly hear many people complaining of how their mortgage payment consists of so much interest. In the beginning this is very true. You must keep in mind that interest, as well as property taxes, are tax deductible and will directly reduce your taxable income. In Seattle, the average homeowner pays around $2,000 a month, $24,000 a year in interest and property taxes, in the first few years of owning their home. At a 28% tax bracket, that is $583.34 a month or $7,000 a year saved on income taxes. 

The Guide To Seattle Real Estate

At my regular Seattle BizBuilders meeting today, Lesli Dullum LMP, RC Optimal Wellness Consulting, presented.  She is from the Silverdale area and braved the ferry to come and see us here in Seattle.  I was impressed; she walked us through a little exercise to help clarify why we are in business and why this business at that.  There is a principle in philosophy called congruency, that life is better when everything is aligned. When a person is passionate about all aspects of their life and following through with what drives them, life works for the better. For example why am I in real estate? People, well ok not just people, but really I love working with people in education, goal achieving, relationship, and a little sales too.  Does how I currently run my business/life reflect that?  Yes.What do I sell?  At first you might think houses, but what I really sell is piece of mind and knowledge or know-how.  Does how I currently run my business reflect that? Yes.Who are my clients?  Well at first anyone who could fog a mirror, but now that I have been in the business a little while I am concentrating my efforts to those I can really benefit first time buyers and second time move-ups.  While I have worked with 1031 exchanges and empty nesters, the bulk of my real estate business has been with the people that I can be of most help to, those who are in need of education and piece of mind.I am glad Lesli braved the storm and rode out here to Seattle today, this real estate agent found great benefit from her presentation.

The Guide To Seattle Real Estate