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Buying Foreclosures For Investment? Better Do Your Homework!

There are thousands of properties on the market now at amazingly low prices. It's enough to make even the most poised investor squirm with heightened interest. However, don't be so quick to gobble up all those "great buys". Just because a property is obviously a "great buy" doesn't mean it is a good investment property. Look, your goal was to buy a property, rent it out and make some additional income until you can sell the house hopefully at a nice profit. So, why are you just looking at the cheapest properties or "great buys"?

We are a multi-service real estate firm providing residential, commercial, business brokerage AND property management services. Our goal is to help our clients reach their goals, but making sure they reach them without the traditional pit-falls we've seen so many investors fall into. Like anything else, you must have a plan-of-action before you start.

Football teams don't play without their entire team and you shouldn't make large purchasing decisions without your entire team either.

Not only do you need a real estate professional familiar with the area, but they MUST have property management experience as well or know a property manager that can be involved in helping you make your purchasing decision. Why is the property manager important in the buying process? It's simple. The property manager should have an intimate knowledge of the area as it pertains to the rental markets. They should know how to conduct a rental market analysis. Traditionally, the rental market changes at a more rapid pace than the housing sales market. This is due to the constant change in rental inventory. Knowing who (developers, individual owners, condo leasing offices, etc.) your most immediate and current competition is, is important BEFORE you purchase an investment property. Knowing if your competition is going to remain competition for long periods of time is also important. Would you purchase a property next to a community that had an on-site leasing office (apartment communities, condo communities, etc.) knowing they would be your biggest competition the entire time you owned your property? I wouldn't. In most cases, those communities can out spend you, undercut your break-even point and make it nearly impossible to get a renter if they offer move-in specials such as no security deposits, 2-3 free months of rent, etc.

Things to do prior to buying investment property (assuming you plan on renting the investment property):

1. Make sure you are using a Realtor that has knowledge of the area and has property management experience (or can introduce a property manager into the mix to help you with your buying decision)

2. Make sure your Realtor does a market analysis and demographics analysis on the property. He/She should include bank-owned properties to ensure you are getting the very best price for the property. You want to make sure the property is in an area that will not only yield a healthy appreciation over time, but also yield the highest probability of procuring a qualified, ready, willing and able tenant in a reasonable time period.

3. They (or the property manager) should conduct an analysis that includes current competition (so you know what the current rental rates are) in the area. They should also preview the property (prior to buying it) to make sure it is a desirable property for the area that will help yield a qualified tenant the quickest.

4. The property manager and Realtor should help you with a cost analysis and give you a general idea of what you can expect as income from the property vs. the cost of your mortgage and expenses. Speaking of expenses, the property manager should also be able to tell you (based on the age of the property and appliances, etc.) what you can expect in repair expenses annually. This will help you determine if your investment will yield a reasonable ROI or if it is a money pit. Remember to factor any HOA or Condo dues into the equation. This often gets overlooked and can pose a serious expense against your bottom line.

So, as you can see, having a team of knowledgeable players on your side can help you avoid certain landlord real estate investment death. Remember, just because a property is a "great buy" doesn't mean it is a great rental property.

If you are interested in finding a good Realtor that has excellent property management experience in your area, please CLICK HERE. We have a network of real estate and property management professionals all over the country that we work with and would be happy to refer you to them.

Happy investing!

Sean Spencer, Owner
Spencer Realty Professionals
www.SpencerRealtyPros.com

Squeeze Every Last Dollar Out of Your Home Sale

Squeeze Every Last Dollar Out of Your Home Sale
By Sean Spencer

The “secret” to making top dollar when you sell your home isn’t really a secret at all—I’ve been “revealing” it to my clients for years. But because it involves a lot of discipline and elbow grease, many people decide to cut corners. And that’s when the price you could command begins to drop.
Do not be one of those people. During my years in real estate, I’ve seen countless examples where well-considered, well-placed investments of time and a little money have dramatically improved the sales price and increased the speed in which a home has sold.
In today’s economy, there are no guarantees that you will recoup what you spend to improve the value of your home…all the more reason it’s important to pick the right investments.
But even when you don’t recoup all the money you invest to upgrade, many improvements can give you an important edge over other homes on the market. And the failure to make some improvements can leave you at a distinct disadvantage as buyers compare your home with the competition. Believe me, I’ve seen it happen time and again.

Spend time before you spend a dime

Unless your home is in mint condition or you’re selling it as a “fixer-upper,” there’s probably a long list of repair or remodeling projects to consider. These can range from relatively simple jobs, such as painting a bathroom, to more complex room-addition or remodeling projects.
In considering any home improvement project, you need to ask yourself a couple of questions: Why are you doing it? Is it work that really needs to be done—a paint job or replacing a leaky roof? Or is it an amenity you’d like that you think might appeal to a potential buyer—a hot tub or home office addition, for example. Will it add value to your home, or have no impact at all? Or will it make your home more difficult to sell?
Some investments—like painting and yard work—involve relatively little cash outlay and yet return many times your cost. Other improvements that you think add value have no significant impact. Adding a swimming pool is a good example. Besides the hassles of maintenance, a pool can reduce your home’s appeal among families with small children because of safety concerns.

Planning is everything

If there’s one piece of advice I would give every homeowner regardless of the circumstances, it’s this: Plan first, then do. Careful planning on your part is a prerequisite to undertaking any home improvement project, major or minor. In fact, the quickest way a “minor” project balloons into a major one is when you haven’t thought things through in advance. I’ve seen more people get in over their heads because they didn’t think things through before starting work.
Whether you hire someone or do the work yourself, expect to spend more time and money than you initially anticipate. But by choosing well, you can ensure that the work you do adds the greatest value at the lowest cost.

Be methodical

Try breaking your list into “exterior” and “interior” projects, then break it down further by room or outside area. Decide which projects you’re going to take on yourself and which will require outside help, and then do a rough cost estimate for each job.
One rule of thumb to keep in mind is that if you do the work yourself, you’ll probably recoup more than what you pay out for some improvements. You can probably save anywhere from 10 to 30 percent by removing hired labor from the equation. On the other hand, you might pay more for work done by professionals, but the improvements can speed up the sale of your property.
Whether you should tackle the work yourself or hire professionals depends on several things. Do you have the time? Can your friends or relatives help you, or are you going to do it all yourself? How skilled are you and your helpers in the task at hand?
You may decide to split the job—the contractor does the major work and you do the finishing. Doing at least some of the work yourself can still save you money. Whatever you do, the key lies in doing it well. If that means hiring a professional, do it. A poorly done job can do you more harm than good.
Now let’s take a look at some projects you might consider, beginning with some simple steps that can reap huge dividends.

Catch ‘em at the curb

Here are some investments in your home’s exterior that I’ve found through firsthand experience can pay huge dividends:

Paint

It should come as no surprise that surveys show that painting the exterior of your home results in the greatest return on time and money invested when compared to other improvements done for selling purposes. An investment of $1,000-$2,000 can mean adding $3,000-$4,000 to your asking price. And if you can do a good job yourself, your profit is even greater.
Even if your home doesn’t need the full treatment, check the trim around windows and doorways for cracking or peeling, and do any necessary touch-up work.
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Landscaping

Another key first impression is made by the grounds of your home. If you can improve the attractiveness of your landscape without spending a lot of money, you can add a good 5 to 10 percent to the value of your home.
Minimally, you should prune existing trees, shrubs and bushes, clean out dead plants and weeds from flower beds and replace them with colorful flowering plants. Because landscaping can become a high-maintenance headache if not done carefully, choose hardy perennials that require minimal care.
If you have a damaged lawn, you may need to take additional steps. The easiest step is to repair damaged sections with new sod. While seeding is cheaper, it won’t produce grass overnight. A good patch job can make for a great quick fix.
Other lawn problems—dead areas due to lack of sunlight or a tree’s root system—can be solved by planting ground cover or creating additional flower beds.
Like a new paint job, a relatively inexpensive upgrade of existing landscaping can bring far greater returns than what you spend. But don’t do anything that would be deemed excessive by neighborhood standards. The idea is to make your home more attractive, not stand out as an oddity.

The driveway

Because it’s big, dark, and usually takes up a significant portion of the property in front of your home, a driveway can affect a buyer’s first impressions. If yours is in good condition, make sure you keep it swept and neatly edged where it meets the lawn. If yours is cracked, buckled or oil-stained, fix it. Patching concrete can be a problem because matching color is difficult; tar and asphalt are relatively easy to match. Whatever you do, be careful you don’t create a bigger problem through quick-fix solutions—use high-quality patching materials and sealers.

Decks and patios

These can be popular additions that add value, especially with smaller homes, because they add living space. But make sure that whatever you do is consistent with your home’s architectural style and integrates well with your outdoor areas.

The garage

If your garage has that rough, unfinished look, consider drywall and matching switch and outlet plates. At a minimum, make sure all switches and outlets work. And give everything a good cleaning.

Don’t neglect the minor details

It’s often the little things that really stand out. If your mailbox is in poor shape, replace it. Varnish or repaint your door if it needs it. A door knocker and brass kick plate can also be a nice addition. Spruce up the entryway with new light fixtures, potted plants and other decorative touches.
With the exception of adding a deck or patio, most of the steps I’ve touched on here can be accomplished in relatively little time and without a lot of money. But the difference in the impression your home makes on prospective buyers will be dramatic.
Ironically, some of the big-budget items you might consider spending your money on will do little to enhance the marketability of your home. Aluminum siding, for example, is prized by some and loathed by others. Hot tubs may or may not appeal to potential buyers. Watch out for changes that you may find appealing but end up limiting your home’s appeal to others.
Besides swimming pools, other investments you probably won’t see a return on are tennis courts and automatic sprinkler systems. Unless they’re for your own enjoyment, don’t waste your money.
One major expense you may have to consider is a new roof. But if you think you can pass the cost along to a buyer, forget it. Everyone expects a good roof, and they’re not going to pay extra for it. And a roof in poor condition can kill a deal quickly.

Making the best second impression

As with the exterior, I’ve found that there are plenty of interior tricks to punch the right emotional buttons in prospective buyers.
In all rooms, certain minimum standards should be met:

• Make sure all plumbing and electrical systems are in good working order

• Repair cracks in the wall

• Paint—as is the case outside, a fresh coat of paint throughout the house will more than pay for itself

• Remove wallpaper

• Replace missing molding

• Replace cracked or broken window glass

• Make sure window and door hardware match

• Install new floor coverings

• Install new light fixtures

• Make sure switch and outlet plates match from room to room

• Upgrade insulation in drafty or hot rooms

As is the case outside, a coat of paint can literally make the difference between a sale and no sale. Be sure to stick to neutral colors—white or off-white. It tends to make everything look new, clean and bright.
Be sure to paint everything: inside closets, cabinets, pantries, etc. If a prospective buyer opens a door and sees dirty walls or shelves, you’ve just wasted the advantage you had gained by painting in the first place.
Like paint, new carpeting should also be in a neutral shade. This helps buyers visualize their own furniture in your home.

Wallpaper, like wall colors, makes a personal statement about the owner’s tastes. Remove it. Buyers want to visualize what they would do with your house, and wallpaper gets in the way of their dreaming.

Many buyers value good wood floors, so sand and refinish yours if they can be restored. Otherwise, you might consider new flooring. If your home is short on storage space, consider how you can add shelving, cabinets or other storage systems to remedy this deficiency. You may also consider replacing windows and doors with more energy-efficient models.

Taken individually, each of the above improvements may not seem like much. But you’ll find that the cumulative effect of fixing even relatively minor problems will be dramatic. A crack in the wall, a carpet stain or a light switch that doesn’t work can send a negative signal that results in the loss of a buyer. I’ve seen it happen.

Now let’s take a closer look at improvements on a room-by-room basis, starting with your two most important rooms.

Kitchens and bathrooms have long been the top two remodeling projects, and you can expect them to remain so for years to come. They are the rooms that most consistently make or break a sale. A new or updated kitchen, a sparkling bathroom…these are features that help to sell a home.

The kitchen

If you can get away with a remodel rather than a new kitchen, do it. Because the kitchen is so important, sellers sometimes over-improve them to the point where there is no chance of recouping their investment when they move. Don’t fall into this trap.

Add a new coat of paint, refinish the cabinets and counters, change drawer pulls and handles, install new appliances, put down a new floor—but don’t gut and start over if it isn’t necessary. When adding new appliances, be aware that many buyers consider brand name to be an important factor.

If you don’t paint everything, at least repaint the ceiling bright white. You’d be surprised how much it can lighten up the room. Another great way to brighten a kitchen is to add a skylight.

If you do choose to put in a new kitchen, keep in mind what sells. Buyers are looking for lots of cabinets and counter space, new appliances, and an easy flow between the sink, food prep areas, stove and refrigerator. Think sunny, spacious and clean.

The bathroom

New fixtures, wall tile and flooring can make a big difference. If the bathtub is in poor shape, you can replace it, but a less expensive option may be to re-enamel it. If you keep the old tub, at least regrout and recaulk it. A good bathroom remodel or expansion can easily return more than 100 percent of its cost when you sell.

If you’re feeling ambitious, adding a half-bath or second bath to a one-bathroom house is another option to consider, space allowing. Whatever the family size, one bathroom never seems adequate to most people.

Bedrooms

For most people, the master bedroom is the third most important room in the house. If you have a large home with four or five small bedrooms and the floor plan allows for it, you might consider combining two rooms into a master bedroom. If you have a two- or three-bedroom home and a decent-sized lot, you might consider adding another bedroom.

Trends to watch

A more recent hot remodeling trend is the “great room”—combining the kitchen, dining and family room into one larger living area. While lagging behind kitchen and bath remodels, it is definitely a trend on the rise. Living rooms, family rooms and formal dining rooms, on the other hand, are diminishing in popularity.

Another relatively new wrinkle is the home office. With more home-based businesses and more companies allowing employees to telecommute, more people are looking for office-ready space in their homes. A recent survey conducted by Builder magazine found that nearly a third of buyers in their 20s, 30s and 40s plan to use a room as a home office. Other rooms that are showing up on more buyers’ wish lists are exercise and media rooms.

Questionable projects include fireplace additions and installation of elaborate security systems. You can find professionals who will argue for and against both of these projects. But with concerns about home safety on the rise, security systems appear to be moving into the “desirable” column.

Many of these projects are relatively inexpensive and will easily pay for themselves. With some projects, you may not recoup your investment, but you will have removed impediments to a sale. If you don’t take care of things like leaky plumbing, drafty windows or outdated light fixtures, you’re giving a buyer ammunition to use against you during negotiations.

Home improvement “don’ts”

There are several things you can do that can actually lower the value of your home or make it more difficult to sell. Here are a few rules to keep in mind:

Do it well, or don’t do it at all

You may be tempted to do a lot of work yourself to save money. That’s fine if you know you can do a good job. But if doing it yourself means a sloppy paint job or bubbles in the vinyl flooring, then I suggest hiring a professional. Hiring an expert can often be cheaper and faster in the long run. This is especially important when dealing with electrical systems or plumbing problems.

Don’t over-improve

Any project that raises your home’s value by more than 20 percent above similar homes in your neighborhood should be reconsidered. The reason is simple. Say your home is typical in a neighborhood of $100,000 homes, and you make $50,000 in improvements. Buyers looking for a $150,000 home are looking in neighborhoods where that is the norm, not the exception.

Don’t make unique improvements

Sure, you may love the built-in bookcases on every wall of your guest room, but prospective buyers will probably view them as a nuisance to tear out—which means they’ll be less willing to meet your price. Also, avoid remodels that make unusual use of a particular room. Anything that limits flexibility will limit interest in your home.

Don’t create a mess

Make sure your floor plan will make sense when you’re done. Be careful not to make changes that impede the natural flow of the house—closing off halls, doorways, etc. Room additions in particular are often done very poorly. If it looks like something tacked on to the original house, don’t do it. Adding a bedroom whose only connection to the rest of the house is through another bedroom should also be avoided.
As you can see, squeezing every last dollar out of your home sale can be a fairly involved process. But when you consider the end result—a quicker sale and top dollar for your efforts—I think you’ll find that a few well-chosen home improvements are worth both the time and money.

Don’t plan on moving soon if you’re spending a lot
You probably won’t recoup your investment if you plan to move in less than two years. If you plan to move sooner, spend less money and focus your efforts on the most egregious problems. For example, turn a bad kitchen into a decent one rather than a chef’s kitchen.

Sean L. Spencer

http://www.SpencerRealtyPros.com

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20 Questions You Must Ask Your Next Agent Before Signing On the Dotted Line

20 Questions You Must Ask Your Next Agent Before Signing On the Dotted Line
By Sean Spencer

You recently decided that the time has come to sell your home. You probably met with several Realtors, asked each a few questions, then selected a listing agent. Or may¬be you already knew someone who sells real estate, so your decision was pretty simple.

The fact that your listing agreement recently expired and your home is still on the market leads me to believe that things didn’t work out as you hoped they would.

Anyone who ever sold a home knows how frustrating and unnerving it is to have your listing expire without a sale. You’re probably thinking that you’ve wasted precious time without accomplishing your goal. The idea of going through the process all over again is an upsetting one—and yet, you still need to sell your home.

There are several possible reasons your home didn’t sell—your home’s condition, the price, etc.—but my experience has been that when a home fails to sell, there’s usually some kind of communication problem between the Realtor and the seller.

Now more than ever, choosing the right Realtor will make all the difference in the world. But how do you make the right choice? How do you make sure you don’t end up in the same situation again?

Unfortunately, most people don’t know the questions to ask a prospective agent. Nor do they know what answers they should look for.
As a Realtor who has worked with hundreds of sellers, I’ve found that those homeowners who take the time to find the right agent are consistently happier with their home-selling experience than those who don’t. It’s the first and most critical step in selling your home.

As a general rule of thumb, you’re looking for an agent who:

* has the experience, qualifications and abilities to sell your home

* has in-depth knowledge of your area and the market in general

* will work hard on your behalf

* has resources to support the sales effort

* will keep you well-informed during the process

* has a personality you are comfortable with

If you didn’t know what to expect from your last agent before you signed the listing agreement, then it’s possible you didn’t ask the right questions.

I’ve drawn on my years of sales experience to develop this article, which is designed to elicit the information you’ll need to make the right decision in choosing your next agent. By asking the following questions, you can dramatically improve your odds of having a successful home-selling experience.

“How long have you been an active, full-time Realtor? How long in my neighborhood?”

I recommend looking for an agent who has been actively working on a full-time basis for at least the last three to five years. You should also find out how long they’ve worked in your specific geographic area.
There are several reasons for selecting a well-established agent. First, you want someone who has a track record you can confirm. Second, an established Realtor has a roster of contacts you will need: home inspectors, mortgage companies, lawyers, etc.

Finally, an experienced agent will have creative, time-tested ideas for marketing your home.

Yes, there are good agents who have been in the business for a short time. But there is a high drop-out rate in our industry, and it would be unfortunate if, three months down the line, your agent moved on to other things. On the other hand, a part-timer often can’t keep up with the pace or complexity of today’s marketplace. And they might not be available when you need them most. Your home is your most important investment—doesn’t its sale deserve an agent’s full-time commitment?

"How many homes have you listed in the past six months? The past year?"

While an agent’s length of time in the field is important, the quality of that time is even more important. You need to gauge just how active—and successful—the Realtor is. A large number of listings is often the sign of a successful agent. However, no matter how many listings an agent has, make sure that he has the resources and systems to market each of them effectively. Getting a listing is only half the job.

"How many homes have you sold in the past six months? The past year?"

Here’s where we separate the listers from the doers. Just because an agent has a knack for signing up sellers doesn’t mean he’s good at finding, negotiating and closing deals—and that’s what you want.

"What's the average amount of time one of your listings is on the market before it sells?"

You may think that a quick turnaround is a good sign. It could be. However, a faster-than-average selling record could indicate that an agent is quick to sacrifice a seller’s profits in negotiations—which is why the next question is so important.

"How does your average sales price compare to the original price?"

There’s a difference between a Realtor who gets you a good deal and one who gives away too much in order to sell your home. That’s why it’s important to compare the original list price to what a home actually sold for. For example, an agent who consistently gets 90 percent of the asking price is probably a better negotiator than the agent who only gets two-thirds of the asking price.

Again, this goes to the question of effectiveness. Make sure your agent has the systems in place to handle them all. A successful top-producing agent may be more effective at managing many listings than a less experienced agent is with a handful.

"How many homes are you currently marketing?"

A Realtor who does big business in condominiums, or homes sub¬stantially less or more expensive than your own, probably isn’t the best person to sell your home. Look for someone who has experience selling homes of your type and price range, preferably in your neighborhood.

"What kind of property do you specialize in?

Again, you’re looking for indications of success. A Realtor with a competitive piece of the market usually has better connections in the community and greater resources at his disposal.

"What can you tell me about your share of the marketplace compared to other Realtors in the area?"

While it doesn’t necessarily indicate better service, a Realtor® who has a support staff to handle office chores and routine details can usually devote more time to the business of serving a client’s highest-priority needs. Ask about the composition of the Realtor’s® staff, the duties each member has, and how they will be involved in the marketing of your home.

"Do you have a personal staff? How many are licensed?"

Make sure you’re very clear as to the involvement you can expect from your agent compared to your agent’s staff. But don’t assume that you’re being treated poorly just because the agent isn’t doing every¬thing herself. If you were having major surgery, you wouldn’t want your surgeon handling anesthesia and monitoring vital signs and every other detail of the operation—that’s what the rest of the medical team is there for.
The important thing is that your listing is handled in an efficient, professional manner, that you are kept well-informed as to what’s being done to sell your home, and that the operation is successful.

"How will you market my home?"

Most Realtors have at their disposal the same tools for selling your home: the Multiple Listing Service, company tours and Realtor® caravans, open houses, marketing flyers and brochures, direct mail, advertising, personal networking—the list is long.

What differentiates the best agents from the rest is their marketing philosophy and the strategies they’ve developed to achieve their goals. You’re looking for a Realtor who tailors his approach to your specific circumstances, and then puts the tools at his disposal to your best advantage.

What you want is someone who does more than provide a physical description of your home and area to prospects. Your Realtor® should be enthusiastically selling your home’s benefits. You’re spending a good deal of money with an agent, and you should expect a detailed marketing plan—in writing—before you sign a listing contract.
As you discuss the marketing plan, make sure you include the following issues:

Flyers and Brochures

Carefully review the quality of the materials the agent shows you. Do the design, style of writing and print quality do a good job of selling the attributes of a particular home? Poorly-done materials reflect badly on your home and say something about the quality of the agent’s marketing efforts in general.

Classified Advertising

Don’t be unduly impressed with the huge sums of money some agents spend on classified advertising of their listings. I’ll let you in on a little secret—classified advertising is great for keep¬ing a company’s name in the public eye, but it rarely sells a home in and of itself. An agent who stresses advertising at the expense of other efforts should be avoided. There’s no substitute for hard work on the agent’s part.

Other Forms of Advertising

Many of the marketing and technological advances found in other fields are also being put to good use in the real estate industry. Some agents now use toll-free hotlines and fax-on-de¬mand marketing to provide potential buyers with 24-hour access to information on your home. Ask the agent what he does that he considers unique or special.

Open Houses

Again, be wary if the agent sings the praises of open houses. As a rule, they’re good for your Realtor’s prospecting efforts, but not very effective in selling your property. And a home held open too frequent¬ly can begin to look like a loser, making it a prime target for lowball bids.

Multiple Listing Service

The MLS is one of a Realtor’s most important resources. But here’s another little secret—many agents fail to use the MLS effectively as a marketing tool.

Make sure that your agent takes the time to craft a strong, detailed sales pitch that extols the benefits of your home, and doesn’t just list a lot of dry facts.

When you consider that a listing in the MLS is like a free “classified” that reaches every other Realtor in town—many of whom have clients who might be interested in your home—don’t you think you should take advantage of it? I do.

Other Forms of Promotion

Exposure is the key to any home sale. One of the most common ways a home is sold is when another agent knows a buyer who is look¬ing for a home like yours. Ask the agent about techniques other than the MLS, advertising and open houses which he will use to maximize your home’s exposure.

"Will you help me stage my home?"

Three things go into selling a home: price, condition and agent effort. If you choose a hard-working agent who helps you set a com¬petitive price, make sure that she also will advise you on how best to present your home to prospective buyers. Some agents are reluctant to say anything in this area because they don’t want to offend their client. Ask the agent what kind of information she will provide to help you stage your home—the more detailed and honest, the better.

"How will you keep me informed?"

One of the biggest complaints sellers have about their agents is that they didn’t receive enough feedback. I’ve found that the best communication occurs when clients let me know up front what they consider to be “enough” feedback.

Only you know what level and type of communication works best for you. Do you want weekly progress reports? Daily reports? Are phone calls and letters acceptable, or would you prefer to discuss matters in person? Find an agent willing and able to give you the time and attention you require. And agree on the appropriate level of communication at the beginning of the relationship—don’t wait until you see a problem.

"What listing price would you recommend for my home? How did you arrive at it?"

Ask about the current market and how it affects your price and sell¬ing strategy. A good agent will be able to back up his assertions with solid proof. By running a comparative market analysis, he should be able to give you a sound argument and documentation on how he arrived at your home’s proposed market value and price range.

The comparative market analysis should include the following:

* Listing and selling prices

* Description of comparable homes

* Length of time homes have been on the market

* Listings of any price reductions that were made

The agent should also explain how differences between your home and the comparable properties affect your home’s value.
"What's your pricing/marketing philosophy 30/60/90 days down the road?"

If your home isn’t seeing any interest after two or three months on the market, what is the agent going to do to generate activity? You shouldn’t have to go to your agent and suggest things to try, such as lowering the price. You want a proactive representative, not someone who simply reacts to whatever happens.

"What's your commission on a sale?"

A Realtor’s commission isn’t set by law; it can vary from agent to agent. Make sure you know up front what you’re paying.

While you are legally entitled to negotiate a lower commission, some agents may be less willing to list your home as a result. In a soft market, an agent has even less incentive to push your home when there are others on the market whose sale will result in a higher commission. And an agent who’s too quick to give up his money may be quick to give up your money during the negotiation process.

Remember—the saying “You get what you pay for” also applies to your real estate service.

"Can you provide me with references?"

A Realtor’s reputation is one of his most valuable assets; most will work hard to protect it. Surprisingly, most sellers don’t bother to check references—you should. This is one of the easiest and most important steps you can take. And yet I’ve seen more people make the mistake of not checking references.

Talking to past clients is an excellent way of learning how an agent operates beyond what he says he’s going to do. You can get a good idea of whether a Realtor is a good match for you by finding out how he handled other clients.

Here are some questions to ask your agent’s past clients:

* How long was your home on the market?

* Do you feel the agent priced it realistically?

* What was it originally listed at? What did it sell at?

* What type of marketing did the agent do?

* Did the agent suggest how to make your home more marketable?

* Did the agent keep his promises. Did he do what he said he'd do?

* Were you kept informed along the way? How often did you talk?

* How many offers did you get?

* During the closing process, did the agent have good follow-up?

* What did you like the most about the agent?

* Was there anything about the agent that you didn't like?

* Would you use this agent again?

"What professional orga¬nizations do you belong to?"

At a minimum, your agent should be a fully licensed professional who is a member of the local real estate board and Multiple Listing Service, as well as the state and National Association of Realtors.

Other memberships worth noting are the local Chamber of Commerce, professional organizations and community groups. This kind of involvement can reflect good networking and better insight into the community. But what really matters is your agent’s commitment to selling your home.

"Do you have any personal marketing materials I can review?"

The quality of a Realtor’s own marketing pieces—brochures, direct mail, listing presentation book, etc.—is a good indicator of how well she’ll represent you and your property. If she hasn’t already sent them to you, she should provide them at your first meeting.

"Do you have any questions for me?"

The sharp agent is considering your situation and plotting a market¬ing strategy as you speak, so of course there should be questions. If not, you could be dealing with someone with a “one size fits all” mentality who’s going to plug you into a prefabricated marketing plan.

A good agent will ask your reasons for selling, the date you need to move, what improvements you’ve made to the property, special features you feel are noteworthy, and whether there are any defects or problems with the house. All of this shows a concern and responsiveness, and the agent will incorporate your answers into his selling strategy.

Remember, you’re looking for an agent who’s ready now—the last thing you need in your life is an¬other meeting!

"Am I comfortable with this person?"

This question isn’t for the agent—it’s for you. Ask yourself if you feel good about the agent, his personality and how he conducts business. After all, this is a person who will be representing you in the sale of your most precious asset. The last thing you need is a personality clash in the course of the selling process. You want an agent who you can trust, who is honest with you and who relates well to you.

I firmly believe that this is often the single most important element in a successful home sale. Un¬easiness or discomfort in the agent-seller relationship leads to unhappiness on both sides and usually poor results. Both of you need to be completely comfortable in sharing expectations, thoughts and concerns regarding all aspects of the sale.

I hope this article has given you a better understanding of just how important choosing the right Realtor is for a successful home sale. Asking these questions before you sign with another agent will enable you to avoid the agony of another failed listing and, ultimately, choose the professional who is best able to deliver the results you deserve.

Please feel free to call me if you would like further explanation on any of these topics, or if you have any real estate questions at all. I simply see my mission as striving to be as helpful as I possibly can to area home owners. I hope this spe¬cial report provides the information you need to be an informed home owner.

Sean L. Spencer, Realtor

http://www.SpencerRealtyPros.com

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Real Estate - Picking a Good Mortgage Broker

Real Estate - Picking a Good Mortgage Broker
By Sean Spencer

In a perfect world, nobody should have to worry about anyone else doing their job right the first time. Unfortunately, this is not a perfect world. Such is true in the world of real estate. There are many facets of a real estate transaction and as a buyer, choosing a good mortgage broker is arguably as important as choosing a good Realtor. Why? It's simple, without money...nothing happens!

Like many Realtors, I'm plagued with buyers choosing their mortgage broker without REALLY doing their homework or really understanding how important a role the mortgage broker plays. Unfortunately, this lack of understanding snowballs and can poison an entire transaction causing, additional work for the Realtor, buyer, seller and lender. This poisoning can cause delays in closing, or worse...no closing at all.

In most cases, buying a home is the largest investment/purchase anyone will make. Therefore it is extremely important for buyers to protect themselves against anything that can prevent them from obtaining their goal. Unfortunately, with so many choices for mortgage brokers, it’s a crap shoot as to what mortgage broker can get the job done quickly and with the fewest hassles.

I have a strong suggestion for all buyers. Having closed hundreds of transactions, it is important for buyers to surround themselves with professionals that have similar goals and motivations for the transaction. In other words, a Realtor typically gets paid when a transaction closes. Therefore, it would make sense to ask a Realtor for the phone numbers of several local mortgage brokers they have had success with for other clients. DON'T ASK FOR JUST ONE!!! Compare mortgage brokers...compare rates and fees, compare references. After all, this is the person responsible for presenting your financial situation to the lender (the company/bank that ultimately gives you the money to purchase a property).

As a Realtor, I've had the unfortunate nightmare to work with Realtors that are also mortgage brokers. I'm sure you've heard the saying "Jack of all trades and a master of none"? Well, being a GOOD Realtor is more than a full time job. Being a GOOD mortgage broker is also a full time job. How in the world can you be both, do a professional and complete job and have time to sleep? In my experience...you can't. I'm sure I'm ticking off a few Realtor/mortgage broker combos out there, and I'm sure there are exceptions to the rule. If you do decide to work with a Realtor/mortgage broker combo...be VERY VERY involved in the entire process.

Buyers...DO NOT CHOOSE A LENDER THAT IS NOT LOCAL TO THE PROPERTY YOU ARE PURCHASING!!! In New York, it traditionally takes longer to contract and close on a property than it does in Florida. Mortgage brokers are used to a certain pace based on their area.

Sean L. Spencer, Realtor

http://www.SpencerRealtyPros.com

Article Source: http://EzineArticles.com/?expert=Sean_Spencer
http://EzineArticles.com/?Real-Estate---Picking-a-Good-Mortgage-Broker&id=212281

29 Critical Questions to Ask a Realtor Before You List

29 Critical Questions to Ask a Realtor Before You List
By Sean Spencer

Because Finding the Right Real Estate Agent Can Make All the Difference in the Success or Failure of Your Home Sale

Selling a home involves many critical and personal decisions. However, one of the most important decisions is the first decision you need to make—a decision that impacts your entire home sale:

Which real estate agent should you work with?

Unfortunately, many people make this decision based on the idea that all real estate agents are basically the same. They sign with the first agent to come along, only to realize too late that they should have shopped around.

This article is designed to help you avoid that mistake by equipping you with what to look for in selecting your agent.

Start by asking your friends and family for the names of agents they know. Look around your neighborhood for the signs, ads and marketing materials of active agents in the neighborhood. Once you’ve compiled a list of several names, use this guide to help you determine which agent is best for you.

Here are the questions you should ask each agent:

Question 1

"Could you send me some information about yourself?"

You can often get a good idea of which agents are most professional and most committed by looking at their personal marketing materials—brochures, direct mail, listing presentation book, etc.

Call each name on your list and ask them to send out any information they can before you actually meet with them for a listing presentation. When you get the personal brochure or other materials, look them over and determine your initial impression of this person.

Are the materials they presented professional?

If not, you might ask yourself,

"If they don’t have the wherewithal to properly market themselves, how will they market my home?"

Also, keep track of how quickly and efficiently they respond to your request for information. Are they friendly and helpful? Or just pushy and hungry for a listing?

Does this seem like someone you’d be interested in talking with? If they aren’t organized and professional enough to respond promptly to your first request to find out more about them, they’ll probably handle potential buyers for your home the same way.

If you like the way they respond to you and are impressed with the information they supply, call them and invite them to make a listing presentation to you.

It’s always a good practice to meet with more than one potential agent before making a final decision—usually three to five for sellers.

Just make sure that you don’t meet with more than one from the same company. This could cause internal strife which would be counterproductive in marketing your home.

Question 2

"How do you approach your work?"

What you should be looking for, first and foremost, is an honest and knowledgeable individual, who works full-time, represents a solid and reputable real estate agency, and will treat your best interests as paramount. Length of time in the business, track record of success, previous experience, expertise in and knowledge of the local real estate market—all of these are factors to consider.

While the right agent to market your home may not be number one in every aspect, you want to make sure that the person you hire is a well-rounded individual whom you can trust and respect as a professional.

Question 3

"How many homes have you listed in the past six months?"

Look for an agent who is active in your area and has experience dealing with homes and situations like yours. This is especially critical if your home or transaction has special features or terms that may make it more challenging than the typical home sale.

Question 4

"How many homes have you sold in the last six months?"

Beware of agents who simply gather listings and let them sit and wait for someone else to sell them.

Your agent should have a good track record getting homes sold, which is, after all, your ultimate goal.

Question 5

"What is the average length of time your listings are on the market?"

You may automatically assume the shorter time on the market, the better. But take note:

If an average length of time on the market is significantly faster than the average for homes in the area, is it because this agent is more effective or because he or she likes to low-ball the asking price in order to get homes sold more quickly?

Also, take a look at what the original asking prices are for homes the agent lists versus what the homes finally sell for. This "swing" number will tell you how effective the agent is at helping clients determine the right asking price and doing what it takes to help them get it.

Question 6

"How long have you been in the business?"

Depending on the agent’s background and track record, there is no hard and fast rule for what to look for here.

An agent may have been a licensed real estate professional for 15 years, but only selling part-time and never really an active seller—maybe only handling one or two transactions per year.

Whereas another agent may have only just become licensed one or two years ago, but has a background in real estate finance, worked in real estate law for a number of years or has been a private real estate investor and has bought and sold more than 20 homes himself in the last 10 years.

Either way, you need to find someone who has an in-depth knowledge of the legal ins and outs of the business as well as the characteristics of the local market, and has demonstrated competence and professionalism in getting homes sold.

Question 7

"What professional organizations do you belong to?"

The minimum here should be a fully licensed professional who’s a member of the local real estate board and multiple listing service as well as the state and National Association of Realtors.®

Local community groups and business associations may also be pluses in terms of networking and insight into the community

However, make sure your agent is focused on what’s important—selling your home.

Question 8

"Do you have a personal assistant or other

support staff working for you?"

Some agents employ an assistant or staff. This doesn’t necessarily mean better service, but it can be an indicator that the agent treats selling real estate as a business.

By employing someone to handle the small details, he or she can devote more time to serving your needs.

However, be sure you know up front how much involvement you can expect directly from your agent, and how much is usually handled by someone else. It may be fine that most of your interaction after the listing is with an assistant or other staff member as long as you don’t feel passed off onto someone else and you are kept informed of exactly what the agent is doing to get your home sold.

Question 9

"Do you have any questions for me?"

In the interview, look for an agent who asks pointed, specific questions, not someone who’s just filling in blanks on a form.

That’s the sign of someone who is already thinking about your situation and is creating a plan of action specifically for you rather than just using a cookie-cutter approach for every client.

Make sure you feel comfortable being around this person—you will be relying on his or her expertise.

Question 10

"What marketing approach will you use for my home?"

Despite having the same basic marketing tools at their disposal—Multiple Listing Service, company tours, Board of Realtors® tours, fliers and brochures, for sale signs, MLS lock boxes, public open houses, advertising, direct mail and personal networking—every real estate professional has a different marketing strategy.

Learn each agent’s marketing philosophy, and determine what will work for you.

Make sure the agent you choose doesn’t rely on the same marketing tool for every sale. What worked for yesterday’s seller may not get the results you want. The key is to find an agent who will use all the tools available to your best advantage.

Question 11

"Will you produce a flier or brochure for my home and what will it look like?"

Take a careful look at the materials the agent has produced to market their current listings. Do the quality, design and wording of the materials seem to present each home in the best light?

Put yourself in a potential buyer’s shoes: Would you be interested in the homes after seeing these materials?

Question 12

"How often will you hold open houses? Will they be public, broker-only or ‘by appointment only?’ How do you feel open houses will work best for my home?"

Simply putting a sign on your lawn and holding an open house every Sunday afternoon will not get your home sold.

In addition, a house held open too frequently can begin to look like a loser, making it a prime target for low-ball bidders.

Your agent should have a carefully-planned rationale for each open house and it should be just one facet of a complete marketing plan.

Question 13

"What is your advertising plan for my home?"

Most people believe that advertising a home in the newspaper is the way a home gets sold. Unfortunately, this is simply not the case. The truth is: Good real estate agents sell homes. And they do this through their own personal advertising, networking, skill, and creative advertising methods like the Internet, toll-free hotlines and fax marketing that give potential buyers 24-hour access to information about your home.

Don’t be concerned with traditional methods of advertising houses. Make sure your agent uses innovative, cutting edge methods that make your home stand out from the rest.

Question 14

"How else will the property be exposed to other agents?"

Exposure is the key to any home sale. In many cases your home will be sold because another agent knows a buyer who is looking for a home like yours.

Beyond simply listing your home in the MLS, your agent should be using a wide variety of techniques to let those other agents know about your home and keep them aware of it until it is sold.

Question 15

"Are you going to help me in staging my home?"

Preparing a property for sale, or "staging" it, is very important in maximizing the value and minimizing the time on the market.

If a prospective agent does not mention this aspect of the sale on his own during the listing presentation, he probably has no plan to offer this service to you.

Or he may be afraid of bringing it up for fear of offending you by telling you about negative aspects of your home that should be changed—or positives that need to be highlighted—to increase its appeal to potential buyers.

A confident and competent agent will find ways of broaching the subject and let you know of specific ideas—beyond baking bread and putting out fresh flowers for open houses—to make your home more salable.

Question 16

"What will you do to keep me informed?"

Do you want weekly, daily or hourly reports from your agent? Are you comfortable with letters, phone calls, or do you want to discuss matters in person?

Determine how much communication you want, then find an agent who will give you the attention and time you deserve.

Question 17

"What listing price do you recommend for my home and what is that price based on?"

Pricing your home is the most critical step to selling it, and you should choose a Realtor® who has the knowledge to price your home wisely.

Here are some things to keep in mind:

Don’t go with a "yes man" who will promise a high price in order to get your listing—your home may languish on the market.

Don’t let an agent talk you into an artificially low price designed simply to sell as fast as possible.

Do have each agent justify the price through comparable properties and facts about the market.

The selling price should attract prospective buyers to your home, get you top dollar in the current market and reflect the condition of your house.

Be realistic. A good Realtor® will be honest with you about the value of your home and have the cold, hard facts to justify that value—both to you and to prospective buyers.

Question 18

"Can you provide me with further resources that I may need?"

Most agents work with a team of professionals in many fields, including title, escrow, mortgage, home inspection, pest control, carpet cleaning, etc. While you are not obligated to work with an agent’s team, often you may find it is the optimum way to go.

The best agents have built strong relationships with their "teams," and can often get expedient service or be able to "cash in a favor" for your transaction should a crunch or problem arise.

Question 19

"Can you give me some references from other clients you have worked with?"

Don’t be afraid to ask for references. This is not confidential information, even though many sellers would never think to ask for it.

Real estate transactions are a matter of public record, and if you want to take the time to go down to the courthouse, you could compile your own list.

However, any agent who provides good service and is proud of his or her work will be happy to provide references.

If possible, contact a few of these references directly. Check to see how well the situations described by these previous clients fit your situation, particularly if you have a complex transaction or special circumstance that requires specific expertise.

Question 20

"What does the listing agreement entail?"

Have the agent go over every detail of the listing agreement with you before you ever sign it.

This is a legally binding document and your agent should be open and up front with you about exactly what you’re signing.

Ask to know exactly what each portion means and be aware of what the contract will legally obligate you and the agent to do.

Question 21

"What are the beginning and expiration dates of the listing agreement?"

This information should be included on the agreement itself and, should a dispute arise later, could be crucial in determining commission payments.

Beware of agents who want you to agree to a very long listing period.

Unless they can provide compelling reasons why your sale should take longer, generally three months is a good amount of time for a listing agreement.

Also remember that the listing agreement is designed to protect not just you but the agent as well.

Good agents work hard for their commissions and deserve just as much open communication and straightforward dealings as you do.

Question 22

"What are the amount of brokerage fees I will be paying?"

The customary fee generally ranges between five and seven percent although brokerage fees are not fixed by law and are negotiable.

However, whether you pay a fee that is higher or lower, you generally get what you pay for.

Especially beware of agents who are willing up front to take a reduction in their commission. It may well mean that they never intend to spend much time, effort or money in selling your home to begin with.

Question 23

"What other fees or charges do need to be aware of?"

Title insurance, escrow charges, closing costs and prorated insurance, taxes, rent, home owner’s association dues, etc.—the individual circumstances of your transaction and the needs of your buyer will all impact your final financial obligation.

Be sure your agent goes over all the costs that may be incurred so that you’ll be prepared.

Question 24

"What disclosure laws or special zones apply to me and what do I need to provide?"

You and your agent will both need to provide specific disclosure forms regarding your transaction and your property. Also, if you live in an earthquake-, flood- or other disaster-prone area, special statements—or special study zones reports—may be required.

Your agent should be able to help you locate professional inspectors for the various mandatory home inspections.

Most agents will help you organize a home marketing file—including a property fact sheet, a property transfer disclosure statement, pest control report, applicable C.C. & R.s, applicable special study zones report, available soils or structural engineering report, property profile from the title company, applicable plans for alterations or additions, any home warranty plan offered and applicable special equipment report for pools, spas, sprinkler and alarm systems, etc.

Question 25

"What is a home protection plan and should consider purchasing one to facilitate my sale?"

There are many ways to enhance the salability of your home and sweeten the deal for prospective buyers. You may not need them, but you should know what they are and how they may or may not benefit you.

Question 26

"How will you determine the qualification of potential buyers?"

Ask what procedures the agent will use to make sure that you don’t waste any time dealing with dead-end offers or escrows that can’t be closed.

Question 27

"What happens if my home doesn’t sell in the allotted time or if I decide not to sell my home?"

Much of the answer to this question should be spelled out in the listing agreement. Make sure your agent goes over every part of it with you.

Be sure to find out whether your contract contains a "liquidated damages" clause.

These are designed to specify a dollar amount you would be liable for should you decide to take your house off the market before the expiration date of the agreement.

Question 28

"What’s the best way for me to get in touch with you?"

In this age of expanding technology and instant communication, most agents have pagers, voice mail and voice messaging services.

You should know exactly how to get through to your agent, his or her assistant, or a messaging service in case of an emergency 24 hours a day.

Your agent should not only provide you with prompt responses to your calls, but also should have a step-by-step plan regarding how he or she will keep you informed about the status of your home sale, including daily, weekly or monthly written reports on the actions that have been taken to sell your home and the resulting response from prospective buyers and other agents.

Question 29

"How would you like for me to give you feedback?"

As important as it is for your agent to keep you up to date, you should give regular feedback to your agent as to how satisfied you are with his or her service.

The best agent is one who makes it easy for you to communicate your satisfaction as well as the things you would like to see changed about the way he or she is handling your transaction.

Perhaps all you need is an explanation of why things are going the way they are or why your agent is handling things a certain way, but the more you can get all of these feelings out in the open, the better the two of you can communicate and work to change things if need be.

An organized professional will provide you with service questionnaires both at the beginning of the relationship so you can outline your expectations and at the end of the transaction so you can let him or her know how well those expectations were met, as well as regularly during the course of the sale so you can deal with any positives or negatives that occur along the way.

Sean L. Spencer, Realtor

http://www.SpencerRealtyPros.com

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Open Houses - Who Do They Really Help - You or the Realtor

We are asked many questions by home sellers as to how we plan to market their house for sale. When we don't mention holding an open house, its inevitable...they always ask..."Are you going to hold an open house for my home?” Our answer seems to surprise them at first and really surprises them by the time we are done with our explanation.

Most open houses are held on a weekend day when the general public is more able to preview homes. In our experience about 95% of the people that show up at an open house either know a Realtor or have one within their family they will use. So, that leaves 5% that are not working with a Realtor. Of the 5%, out of curiosity, some are neighbors interested in the asking price so they use it and other information as a comparison to their own home. The remaining small percentage end up driving by the area, notice the open house signs your agent strategically placed at each corner and walk into your house. Keep in mind, these are strangers, possibly unqualified to purchase your house and like clothes, your house may not be the right fit or style they are looking for.

That being said, those that become disinterested in your house now become a prospective buyer of another house that your Realtor would be happy to show them. So, in short, an open house usually benefits the Realtor more than the home seller. Now we're not saying an open house is useless. There have been many cases a home sells as a direct result of an open house. Our experience has shown the percentage of homes sold as a direct result of open houses is miniscule.

Your Realtor's time is very expensive. You are paying your Realtor a nice hourly wage via a commission to market and sell your home. Do you feel that nice hourly wage should be spend baking cookies and permeating the house for a possible buyer or spent wisely on mass marketing media, networking and other more effective marketing strategies? I'm sure you can answer that one.

Visit our websites and contact us. You'll be glad you did!

For residential real estate, property management and foreclosures visit:
http://www.SpencerRealtyPros.com

For commercial real estate and business brokerage services visit:
http://www.SellOrlandoBiz.com