Scott's Blog Comments on Real Estate In Treasure Valley, Idaho

These are tough times all around. Families are feeling the pinch with rising utility costs, fear of job losses, layoffs, higher education, medical, dental and grocery costs. Tami and I know this first hand as we deal with the same concerns as most do. We review our family budgets; cut costs in many areas including food shopping and we hang on tightly. My son Jayden hasn’t started daycare yet and frankly he may not. Luckily I have Tami’s teenagers who are home schooled available to help watch him. This savings of $550 per month goes a long way. However, many families aren’t so lucky and need to work several jobs and place all their children into daycare, which causes even more stress on their family and their budgets.

Whether you’re buying, selling or currently a homeowner that is concerned with what’s currently happening in our economy this market impacts your life. Read on to see what possibilities you have to help yourself or the people you love in their real estate needs.

Many people want to purchase a home instead of renting. This does make sense when rents can be as high as if not higher than a mortgage payment. Renting provides no tax advantages and often the apartments or homes are not too comfortable and have landlords that are not to quick with fixing or updating appliances or other items in the home. Renting is good during some situations but it’s not really a place to call your own is it?

For any potential homebuyer the first step is to contact a lender and review your financial situation to hopefully become approved. People face many challenges nowadays including credit related, debt to income and down payment related issues. One key is to find a lender that will advise you on what steps to take to help resolve any issues preventing a current approval. Even when problems are found the key is to Never Say Never!

As agents we say please work with your lenders to fix the current problems. We have worked with many people that were first declined for a loan correct things and change their lives to become approved 6 months or even a year later. We’ve also worked with people that refused to listen saying that it will never happen and so they remain in the same situation. Never Say Never!

One great example is what is happening to a young couple we are working with today. We have been working with a couple since June and unlike most people that say they will work on the problems this couple did. They fixed many outstanding issues the past several months and now they are approved. We have identified 2 properties in their price range of $80,000 with 1 to 2 acres (outskirts Boise Mountain area) and now they are ready to write an offer and make the dream of homeownership a reality.

Many times people throw up their hands especially in today’s climate where it’s even more difficult to be approved. Giving up is not the solution. Sometimes clients say they will work on things but never get to it through procrastination or additional spending instead of debt consolidation and then 6 months past and they are in the same position. Often people are fearful of trusting others so they refuse to give out their personal information to correct the issues. Stepping out of your comfort zone and providing any and all documentation to your lender is part of the solution. Yes this includes your blood type and possibly your firstborn child. Of course we are just kidding here you can’t get rid of your firstborn child that easily. The key is that every problem has a solution. It’s all a matter of working with people to find that solution. We are not just saying for buyers to open up and provide information, seller’s too need to be open and provide details on their property such as liens, personal judgments or other issues that may impact the sale of their property. Being upfront will save so much heartache and time in the end. Real estate must go back to being about people and solving their issues.

Never Say Never! Many sellers are giving up on the marketing process either pulling their homes off the market, renting them out when possible or letting it go to foreclosure. We’ve seen past homes whereby we indicated a price range but the owner refused to accept the reality of the current market situation. One example was where we told a client that his home should be priced in the $270,000 range, but he insisted on trying for at least $320,000, despite owing far less than the $270,000. Now it sits 8 months later at $280,000 after several price reductions. He’s chasing the market, which is never a great thing to do. His home has fallen further toward $260,000 in value. If we could have obtained that $280,000 8 months ago he would have sold this home, saved thousands and been done with all this stress.

Never Say Never! Consider all options and solutions in today’s market. Work on things now that need to be done. Pull your credit reports and review them for inaccuracies and issues needing to be resolved. Start consolidating debt by transferring high interest credit cards whenever possible to 0% promotional cards and then make the same if not more in payments toward the new card thus decreasing the balance. Owners currently marking your home keep the home priced ahead of the market and make sure it’s clean and ready to be shown at all times. Contact agents that provide aggressive marketing campaigns and listen for solutions that agents may suggest. Remember it’s always about putting people first.

We’d love to help you with your real estate needs in any way. Whether it’s just to ask us some questions, for some advice or if you’re ready to go now please contact us so we can see if we are a right fit for each other.

Foreclosures & short sales are accounting for almost 35% of the current housing inventory in the Treasure Valley area. While new foreclosure filings are down compared to last month the 35% number is creating some very upset buyers and sellers.

Right now we have 2 clients that are in the middle of short sale negotiations. I say in the middle but the problem remains the negotiating really happens between the lender and the current owner or in reality it’s between the lender, their loss mitigation department, the listing agent representing the owner and the agent representing the buyer's best interests. Sound confusing? It is a bit but let’s explain what this all means and how it usually works. After we will look at 3 cases of recent short sales one in Boise, 1 in Nampa and 1 in Meridian to see if they were a great deal in the end.

Remember short sales happen when the owner owes more than what the home is worth. If the lender indicates that they are open to taking less than what the owner owes it’s considered a short sale. The problem is getting the lender to consider taking less. It’s not a simple process. A completed short sale packet must be submitted to the lender. Many components go into making this packet complete. Just to name a few they include a Brokers Price Opinion, a Hardship Letter from the owners, Proof that the owners can’t make the payments by providing bank statements & financials, market analysis and more. An incomplete packet causes further delays to this already lengthy process. Many agents new to the short sale process may not have the knowledge or training needed to represent their clients in the challenging world of short sales. We’ve seen agents indicate that an approval from the lender should only take a week or two only to still be waiting a month later. Frustrating you bet!

With the market continuing to trend downward at this time another problem facing sellers and buyers is that the comparables for areas continue to drop. Short sales and foreclosures contribute to this drop. Lenders want recently sold comparables and often this too can hold up the process for as they wait new comparables become available to analyze.

It’s not just a case of a single decision maker behind the desk saying yes or no. Lenders have their loss mitigation departments that must review the short sale packet. The more inventory they have you would think the more likely it is for them to respond quickly and take even less. That’s simply not true. More inventories equal a longer response time to review the packet. Prices aren’t reduced based on volume but instead based on market analysis for the particular location along with the short sale packet and the lender's own goals.

One of the main benefits for sellers with short sales remain that they can usually move on with a smaller hit to their credit (something around 100 points compared to an involuntary foreclosure which is several hundred points).

What about the “great deal” buyers find with short sales is this usually the case? I felt the answer was probably only on occasion and so to find out I did a random sample of 3 subdivisions, 1 in Boise, 1 in Nampa and 1 in Meridian in various price ranges. Here are the results using comparables based on recently sold homes with similar square footage in most cases and with many similar features:

Rockhampton Subdivision located in SW Boise

Short sale property located at 12460 W Tevoit St

3bd, 2ba 1868 sq ft

Sold $206,000 on 9/3/08 which is $110.28 per sq ft

Vs. Other Recently Sold Homes

Foreclosed Home:

4bd, 2.5ba 1802 sq ft

Sold for $192,500 in July which is $106.83 per sq ft

Owner Home:

3bd, 2.5ba 1891 sq ft on a bigger .25 acre

Sold for $190,000 in June which is $100.48 per sq ft

Blackhawk Subdivision located in NE Nampa

Short sale property located at 10570 Gossamer Court

3bd, 2ba 1486 sq ft

Sold 8/29/08 for $137,000 which is $92.19 per sq ft

Vs. Other Recently Sold Homes

Owner Home:

3bd 2.5ba 1708 sq ft (Much larger I know)

Sold 8/22/08 for $139,000 which is $81.38 per sq ft

Investor Owned Home:

4bd, 2.5ba 1545 sq ft

Sold 8/1/08 for $139,500 which is $90.29 per sq ft

Baldwin Park Subdivision in NW Meridian

Short sale property located at 1425 W White Sands Drive

3bd 3ba 2137 sq ft

Sold 6/10/08 for $203,058 which is $95.02 per sq ft

Vs. Other Recently Sold Homes

Owner Home:

4bd, 3ba 2428 sq ft

Sold 7/31/08 for $212,000 which is $87.31 per sq ft (Short Sale Impacted?)

Other Short Sale Owned:

3bd, 2ba 1788 sq ft

Sold 7/11/08 for $203,000 which is $113.53 per sq ft (Not a good deal!)

The results here point out that short sales are not the great deal savers that some would have you believe. There are great deals to be had by both owner and foreclosed properties as shown. It’s simply a myth that all short sales bring incredible deals. Seeing the comparables and having your agent negotiate on your behalf will help you reach an informed decision.

Yes short sales and foreclosures are accounting for basically 1/3 of the current properties on the market. We understand how it’s benefiting the owners but it’s also causing so much frustration for other sellers and for the buyers out there looking for what they perceive is a great deal but don’t realize the waiting times involved and the realities when they see the recently sold homes in the same area.

It’s also worth going back and reviewing the last Short Sales blog entry found here.

Contact us to see comparables, review any property history or to provide you with excellent representation whether you’re a first time homebuyer, transitioning in life to a new home or marketing your current home. Remember, buyers never pay to use our services and sellers only pay once the home is sold!

We’ve often been asked to show a home, setup a tour to view homes or to provide automatic email so people can see homes the same day they are listed. Sometimes while showing a house our clients fall in love with the home only to find out later that the monthly payments are too much to handle. Many times this reality results in dashed hopes, dreams falling by the way side (even if for the now) or expectations gone awry. Worst yet clients are sometimes told that due to credit issues or their debt to income ratios they simply aren’t able to purchase any home at this time.

We can’t stress enough that the first thing any potential homebuyer should do before looking at homes at all is to get pre-approved! In today's ever changing market becoming pre-approved can be a challenge. With all the recent mess the financial institutions are still adjusting. Today 1/3 of all homes in the Treasure Valley area are subject to short sales or they are foreclosures. The process of contacting one or two lenders to review your financial information will save you headaches, heartaches and overall frustration. A bit of a warning here is that all lenders are not created equal. :) You’ve seen commercials promising this or that from national lenders and then there’s the signs promising “no down payments” or “bad credit, no problem live here today.” Like the old saying goes if it’s too good to be true then usually it is so! We work with straightforward, local and helpful lenders so if you need a few names and numbers don’t hesitate to call or email us.

Good lenders not only provide you with options but also review what monthly payments approximate based on good faith estimates. In addition if you are not in a position to purchase a home these lenders will go the extra mile for you explaining what steps to take to better your position to purchase a home whether that be 6 months, 1 year or even longer. Don’t give up the dream of homeownership. We’ve worked with clients that had high debt to income ratios but after consolidating their loans and paying off a few items they were pre-approved. We’ve seen people with year old bankruptcies wait 1 more year and then purchase homes. Many people have credit related issues and it’s important to review their report in detail and remove the items that have either been paid for or perhaps are not actually theirs to improve the overall score. In some cases this can take a few weeks, while other times it may take months or years. Remember credit repair is very doable and we’ve seen first hand clients that were pre-approved within weeks of obtaining, reviewing and correcting their reports.

We always say that when purchasing a home it must be right for you. This means that you must love the home but also you must be comfortable with the monthly payments. There’s a home out there for everyone. Even if it takes weeks, months or a year plus homeownership is within your reach. The first step is to get pre-approved for financing a home through a lender that is knowledgeable, helpful, straightforward and will take the time to help guide you through the process.

This Loan Application Checklist can serve as a guide. Just as important and helpful is reviewing the Overview of The Purchase & Sale Process. If you're considering purchasing a home in the near future we strongly suggest you save money now. How much will depend on your credit scores and the type of lending program you qualify for and/or select. 100% financing is basically gone so whether it be 3%, 5%, 10% or more that is needed the key thing is to save now!

Statistics in the Treasure Valley indicate that approximately 35% of homes listed on the market are either subject to a short sale (dependent on bank/lender accepting less than what the owner currently owes) or are bank owned (foreclosed) properties.

This statistic is truly eye opening. This means that 1 in 3 homes that our buyers are interested in viewing may have more complications and ramifications than before.

There are so many variables when dealing with these types of properties. We’ve reviewed many in our past blog entries but it’s worth discussing again as more clients are coming to us either confused from their past or current experiences or just trying to make sense of today’s market as they look for that “killer” deal they keep hearing about.

We talked about the real estate transaction as a type of dance whereby both buyers and sellers along with their agents must work together to bring about a successful transaction for all parties. What about when the home is subject to short sales?

While short sales present an opportunity to perhaps purchase a home at under the current value they also provide possible delays in bank responses leading to frustration and confusion. Often we are seeing banks delay in returning decisions by weeks or even months. This delay is rather common than say a bank owned 3 to 5 business day turnaround. One way to make sure you don’t get caught in this delay is to have your agent talk with the listing agent of the home. It’s not enough to just ask the listing agent if they are in contact with the bank. It’s more important to know if the listing agent has the actual name and phone number of the decision maker. You’d be surprised to find out that many times the bank hasn’t talked with the listing agent directly. Often it’s done via email or by way of an online software program. It can be so impersonal whereby an agent representing a buyer is calling the listing agent daily only to have them not return their calls for several days. Often once a call is returned the agent indicates that the bank has not reached a decision. Banks could be reviewing offers, waiting for more offers, or examining the economic status. Usually it’s a combination of all these things. Maybe it depends on their inventory, the time of month, their morning budget meeting we really don’t know for sure but chances are again it’s all of these things making for a very frustrating experience.

How do you know if a home is subject to short sale? Call an agent and have them pull the listing and talk directly with the listing agent. Don’t enter into a contract to purchase a home blindly and make sure that you understand the time limits involved. We know it’s very emotional but having as much information as you can while having your agent manage all expectations will help you in the end.

Bank owned properties on the other hand present just as good and usually better opportunities for buyers looking for a great home at a very good price. One thing to look out for with bank owned properties is the “as-is” disclosure. Your agent can help negotiate through the “as-is” disclosure by writing into the purchase and sale agreement that although the property is “as-is” an inspection will be allowed and if any issue related to foundation, plumbing, electric, roofing and/or environmental (mold, etc.) should be found that you be allowed to terminate the contract without penalty and with full return of the earnest money. This type of phrasing helps buyers and often the bank will allow it.

With short sales and foreclosures on the rise we are not yet at the bottom of the housing crisis. Inventory is still high and often sellers aren’t willing to deal on the price with buyers. At the same time often buyers are determined to find what they perceive as the best deal so they undercut an already below value home by another 10% to 15% expecting the seller to accept this low offer. The answer is of course to have good agents presenting the information and negotiating on both sides to get a meeting of the minds. Yet often buyers won’t listen to their agents despite seeing the comparables. Often sellers won’t listen to their agents despite seeing the same comparables. Often trying to meet in the middle is the answer. The problem arises when one or both parties refuse to listen or pay attention to the market. Leading with emotion simply leads to frustration. We know it’s emotional and getting into a seller’s head or a buyer’s head to determine what they must do to make it the right deal for them is even more frustrating.

There are many homes out there in all price ranges from starter homes at $80,000 to 2000 sq ft homes at $180,000 and from elegant homes in the low 300’s to mansion style of homes in the 400’s and higher. What’s still true today is that comparables are one good tool to help decide price. Recently sold homes show what the market is willing to pay for these homes. Have your agent show you the comparables for a home directly in the neighborhood or just outside the area of the home you wish to purchase.

Make sure you understand about short sales and bank owned properties. Your agent must help set expectations and guide you throughout the process. Looking for a great price is wonderful but looking at the actual sold properties and considering meeting the seller half way is how the deals will usually be made quickly and to each parties mutual benefit.

As always contact us with any questions, to see comparables or a property history, to view properties or for great agent representation where you’re always the focus.

WITDJR

This is an acronym taken from AutoZone

The meaning is “What It Takes To Do The Job Right!”

For us this has a special meaning and we look to practice these same quality standards that AutoZone attempts to instill in their employees.

GOTCHA another acronym stands for “Go Out To The Customers Auto.” In real estate we believe in meeting our client’s where they want to be met, showing the homes that they want to see and making sure that they have all the information needed to make an informed decision.

The Tools Needed

For AutoZoners it means physical tools such as a wrench, screwdriver or whatever else is necessary to fix the car.

For real estate agents it’s items such as computers, phones, the ability to think outside the box (our brains) and our eyes. Some of these tools are more recent than others. Years ago there were no computers, no cell phones and no MLS (Multiple Listing Service). Yet agents still got the job done in part by using their eyes, their minds and their contacts. Our eyes allow us to see all the possibilities. For example when a home is so cluttered and outdated if you can see beyond this by noticing the potential then you’ll turn the home into a blessing. A recent example is our listing on Freezeout. By putting new flooring throughout, updating the kitchen, bathrooms, new paint and a complete cleanout we are now looking at a newly remodeled property that shines. What’s amazing is that the cost of this was under $5000 and included new sinks, flooring, lighting fixtures, paint & doors. Many would put this cost around $15,000 but having the right contacts can help you cut this cost down by two thirds. This is an example of how we do whatever it takes to do the job right for our clients.

Using our minds to think of the possibilities, the whats and the hows helps the client through the joyful process of home ownership with the least amount of hurdles to jump through.

Clients want the best possible service coupled with insights, knowledge and making sure it’s done right. We stand by these same principles. In today’s market with so many choices it’s not just about the price of the home but also about setting expectations for various encounters such as short sales, foreclosures and REO (Bank Owned) properties. Of importance is also the condition of the property and making sure that all contracts are explained and executed property. It truly is about doing the job right.

Vendors & Lenders

Surrounding yourself with excellent people is vital. They must have experience, treat their clients with respect, be affordable and get the job done right. If any mistake is made they must be willing to correct it in a timely manner and at their cost. When the focus is on the client then doing the job right is #1.

A Question of Trust

With the messy housing market out there one of the common questions asked by homeowners and people searching for their new home is whom can I trust? It’s difficult to read through all the negative stories that the media reports and the various positive spins that professionals put forth. We feel a quick summary and recap of our market here in the Treasure Valley will help shed some light on the current market. Also reviewing a few items regarding the issue of trust will help you make informed decisions

Treasure Valley Market Summary

Inventory: As of today there are 4398 homes for sale between $150,000 and $300,000 in Boise, Meridian, Nampa, Caldwell, Kuna, Star and Eagle. This relates to nearly 8 months of existing inventory. For homes priced above $300,000 there is approximately 13 months of inventory. What this means is that our market remains very strong for buyers looking for homes in practically all price ranges. A noticeable issue that we’ve brought up many times is that a large percentage of homeowners are not acknowledging the change in the market and adjusting their asking prices either too slowly or too late leading in many cases into their need for a short sale.

Short Sales: Shorts sales are on the rise. A short sale occurs whenever the lender agrees to accept less than what is owed on the property. Many times a home facing a short sale isn’t listed this way in the public comments. Often we have advised clients to be careful for the home was subject to a short sale. While this could be a bargain often the frustration in waiting for weeks or even months for the bank to return a final decision negates the potential savings for the buyer. Short sales aren’t always the deal they seem. Why you ask? Often the homeowner owes more on the property than what other homes in the neighborhood are selling for which means the savings are eliminated. Thinking that a short sale is a guaranteed way to pick up a real bargain is not always the case. Before making any offers find out if the home is subject to a short sale, check into other listings, run comparables and by all means call an agent you trust.

Foreclosures: Foreclosures are also on the rise. A foreclosed property occurs when a consumer defaults on the loan that they’ve taken and the bank repossess their house. Foreclosed homes often end up for auction at the county courthouse steps or one of our local title companies. Many people think they can show up and purchase the home for pennies on the dollar. The truth is that many times the bank has entered a blind bid buying the house back themselves. Remember cash or a cashier’s check is needed to purchase these properties and finding amazing deals aren’t plentiful during this process. When the bank purchases the property it becomes a REO (Real Estate Owned).

HUD, VA & REO Properties: There’s a rise in these type of homes. HUD and VA are government owned homes. The government guaranteed the home and stepped into payoff the home from the mortgagor that defaulted making them the current owner. On a HUD home generally speaking you will get a decent deal. The house may not be in great condition but the price is what is needed to recoup costs. You can find HUD and VA homes at http://www.hud.gov To make a bid on one of these homes contact your local agent. REO homes are usually contracted with agents in our area who list the homes on the MLS (Multiple Listing Service).

Overpriced Homes: In cases where current homeowners owe to much on their home it maybe headed for the short sale, foreclosure or government owned process described above. Refinancing could be an option or simply discussing a new plan with the current lender may help. In many cases though the owner would like to get X for their home but X is based on 2005’s higher prices and not the current value. For example in one neighborhood we follow closely the highest priced home sold in the past year was $450,000 yet there are many homes priced $490,000 and higher with similar square footage. Months have passed and whenever a new home goes on the market under $450,000 it usually sells rather quickly. The other homeowners will need to adjust or remove their home from the market. Ask your agent to see the comparables before making any offer.

Building Trust

Trust must be earned. There are a few things to look for when talking with people from mortgage lenders to agents and any real estate vendors you encounter. Ask questions and ask them in multiple ways. Many agents feel they are in charge but guess what they are not. We are human beings just like you, licensed to perform a service of meeting your needs and your best interests. The agent’s best interests should come last! Do not feel in re-wording your questions that you are tricking the agent. What you are doing is finding out what the agent’s true motivation is and once that is established then you will know if you can trust that person. This same principle applies to anyone you are looking to worth with in the future.

Actions speak louder than words. Look to see if the person you contact follows through with their statements. A little slack needs to be granted for such items that may cause a delay in response such as family or previous appointments. Often agents or vendors may take a day or two instead of an hour in getting back to you but they still followed through. Managing expectations on both sides is key in establishing a working relationship.

Many people look for agents with the most knowledge. However, it’s not just about knowledge. It’s about having the wisdom to know how to impart that knowledge to benefit the clients. Have you ever met someone with a high IQ who although they where smart they had no common sense and handled themselves and situations really poorly? We all have and that’s why when looking for an agent it’s not just about book smarts but it’s about the heart and drive to get things done right for you.

If you want to know more about us as agents feel free to email or call us with any questions. Looking for help at all just let s know. We truly are here to help our clients with all their real estate needs.

This first blog entry today is a repost of one of our most popular blog entries. It's been a little over a year since this blog entry was highlighted and based on email feedback we decided to post this here again. We will also have a new entry "A Matter of Trust" that will be posted by 7/11/08. ------------------------------------------------------

Well this one may be a bit controversial but I’ve been thinking about this for a while and decided after encountering so many people that have strong opinions about agents that it’s time to share my thoughts.

I think the final straw was when I heard a radio commercial by a discount brokerage that took a shot at other brokerages implying that the main reason client’s homes aren’t selling is because of the commissions charged. Of course there was no mention of how price is calculated by other comparables and they failed to mention what is common practice by them, which is letting the client inflate their asking price on their home so they can obtain the listing. This kind of false advertising drives me crazy. So with this in mind let’s debunk several popular myths about real estate agents.

Stereotype #1: All Real Estate Agents Make Tons of Money

The fact is that most agents barely make enough money to afford the family mortgage and to pay all of their bills. In many families it takes 2 incomes to support the household and in our profession this is mostly the case. In the Treasure Valley most agents are not making close to the 6 figures that is a common belief. In fact in our market you would need to sell approximately 30 properties at an average of $250,000 per home in a given calendar year to earn around $80,000. This is not an easy goal to obtain during a slower market and even during a good market it’s considered great to sell 20 homes per year.

Sure there are some hot markets such as San Diego, New York or San Francisco where during the housing boom an agent could sell 10 homes in a year and make $80,000. But in most markets where the median price for a home is $240,000 or even lower that’s simply not the case.

Commissions are not fixed and are always negotiable. First the commission fee is split between the listing and selling brokerage. Next the brokerage splits the commission again with the agent and it’s common for agents to earn 50 % to 70% of that split. After all expenses and there are many a sold home at $250,000 may yield around $3,000 to $4,000 and that’s before taxes. Not exactly tons of money.

I also want to say that for those agents operating in higher priced markets making money is not a sin. What about lawyers, doctors, top sales people or executives in any profession? As with any job these agents have worked hard to get where they are and enjoying the monetary result is one of their rewards. It’s fine to make money but to say that all agents are rich when most are just making it by just isn’t right. Myth #2 is another big one that contributes to the negative stereotype people have of agents.

Stereotype #2: Being a Real Estate Agent is Easy!

Oh my there’s almost no such thing as an easy transaction in this business. Long hours are common practice. This job comes with lack of sleep, high stress and the managing of each detail of the transaction, which almost always presents difficulties and new challenges. There are agents in the business 30 years plus still encountering new scenarios that requires hours of research, calling and writing letters on behalf of their clients to get positive results.

There are so many moving parts to any transaction coupled with the many hats that we wear (see my other recent blog post). In most of our business relationships we are counselors, research analysts, project managers and conflict management specialists.

We answer to our clients and they often expect more from us than they do their friends and family. If you enjoy working late nights and weekends away from your family, spending money on everything from marketing, advertising, gas, license fees, monthly fees, association dues and of course taxes, all along knowing you are dependent on the what the market is doing and that you’re actually pretty lucky if you earn $50,000 in one year, then yes please do consider this as a career. Ok then why do it you ask? For me it’s the rewards of helping people find homes, freedom to make decisions on my own and in part setting my own schedule.

Stereotype #3: Agents Are Show Offs and Have Huge Egos

Some do that’s partially true but there are many down to earth that simply put their client’s needs first. I’ve heard people complain about the fancy cars and suits that seem to go with an attitude of I’m too good to help X or Y out. I’ve seen and heard a few people behave this way in our industry but I believe it’s not the norm.

I hope that I’m not showing off when I say have you seen my 2003 Outback Subaru? How about my associate Tami’s older Grand Am? :)  Splurging is not an option and certainly not what we choose to do. Again if you’ve earned the rewards there’s nothing wrong with spending the money. However, we operate on the motto of putting our client’s needs first. We are grounded and what drives us is finding and selling homes for people that need to make a transition in their life. Next time you come across a pompous agent just remember they are in the minority and run to another respectable agent that you can relate to and will do the job right for you. The next myth often doesn’t help remember this point too much.

Stereotype #4: Agents Are Consumed With Their Image

You’ve seen it before, over and over again in all advertising from billboards to magazine ads. It’s on our business cards, on automobiles and sometimes it’s on movie screens, television shows (see Desperate Housewives) and just about anywhere else you can think of looking. It’s the agent with the model image. It’s the head shot with the perfect hair, the wonderful smile, the expensive attire and sometimes even the cleavage. The real estate industry is about selling us and not our services. People identify with an image and if you don’t present the image they won’t choose you. This type of thinking feeds into our industry. It’s so out of control isn’t it? I really don’t care what John, Mary or Fannie Mae looks like. I just want someone that will get me results. I want someone that I can identify with and someone that answers their phone or gets back to me within an hour and not hours later or the next day. I want someone knowledgeable about what’s going on in my subdivision, community, city, county. Isn’t this what most of our client’s want? Then why do we perpetuate the standard headshot followed by the home? Why do we prop our image up instead of our results?

Let me say that it’s not just the agents that maybe consumed with their image. It’s the media and the industry as a whole that continues to encourage and promote this effort. I believe it’s our own industry the real estate profession that continues to promote this way of thinking. While it’s true we must sell ourselves, I believe it’s not so much what you look like “model wise” as proven in most top producer industries rather it’s the skills you have to back it up. This brings me to the next popular myth.

Stereotype #5: Being a Real Estate Agent Requires No Real Skills

Agents without the proper training and continued learning will be exposed as providing inferior services and often will not do well in our industry. Great agents know that learning never stops and that they must and do continue to learn from their peers, their brokers, their mandatory classes, and their often elected seminars and courses all in an effort to better support their clientele.

Some agents go through intense certification programs and like sponges they soak up anything and everything in an effort to benefit their client relationships and maintain their competitive advantage. These are the agents I’d like to have as my associates.

Clients sometimes see agents bumble around and/or not provide them with the answers they need. They may continue to use that agent but when the transaction is complete the client is left with a negative stereotype that all agents must be like this and that it’s an easy job requiring little to no skills. Unfortunately these agents help keep this stereotype going strong. Agents must have people skills, conflict management skills, negotiation skills and the knowledge gained from classes, training and real world experience to break down this stereotype.

Stereotype #6 Agents Only Care About Making a Sale

We have turned down listings when it would not be in our client’s best interest to list the home. In cases where the client is upside down with their balance due vs. what they could obtain for the house is too great we recommend alternatives such as leasing the home or contacting their lender. We also look at other alternatives. It’s not about making a sale it’s about making sure the client is protected and feels comfortable with their decision.

A few agents I know follow the same business practices, but there are several that try and talk their clients into doing things that aren’t right. Unfortunately these few agents feed into this stereotype. Also on the selling side we always say that it must be right for the buyers. We run comparables and when a home is priced too high we make suggestions about the offer range. If it doesn’t work out for the buyer we believe that another home will work out, even if it’s weeks or months down the line. It’s not about putting pressure on client’s to make decisions that they will regret later on. It’s not about getting a new sale or reaching a quota for the month. We look at all options with the client and review things in great depth. Customers appreciate that we are not about pressure services and therefore they refer others to us. This is a win-win for agents and clients!

Stereotype #7 Agents Never Listen & Often They Aren’t Honest

Ok so I combined these two. There’s an art to really listening. Many agents don’t listen and often end up showing people homes they don’t want at all. All this does is cause frustration. Often when given a second chance some agents will show client’s homes in a higher price range indicating that there were not many other choices. Again this feeds into the stereotype. On the listing side agents that let owners set prices far above the comparables are being blamed later on by the same owners. It’s about being honest from the beginning even if it does cause you to miss out on a listing.

Fortunately many agents do listen and adjust home searches to the features that their clients want to see. As we have access to the multiple listing service we can and do show you all the properties and adjust the search based on your feedback.

As in any industry there will be a share of dishonest people. I’ve run into this in banking, telephone services, advertising and fast food. The problem we face is that purchasing or selling a home is the most important decision with hundreds of thousands of dollars going into consideration on both the buying and selling sides. People trust us daily with guiding them through the process. We must continue to earn this trust through honest and straightforward answers. Listening to what’s being said and establishing client expectations will go a long way toward knocking down this stereotype.

I could continue on and on with additional stereotypes but I feel these are the ones I hear the most often. I hope that I’ve managed to break a few down into rubble. I’ll end this by saying with all that real estate agents face on a daily basis would you want this job? My answer is yes.

The people are what matters in real estate and not the buildings. Every structure has a family that can call it their own. Making it their own can take days, weeks, months or even years. Having a place to call home is part of the American Dream.

As new homes are listed it’s very common for neighbors to stop by and take the flyers marketing the home. Sometimes it’s sad to see your neighbors leave. Close relationships are formed and often-familial ties are severed leaving children with what they had considered an extended family unavailable to them. The fear of the unknown becomes a reality when seeing a moving truck pull up to the home.

Sometimes neighbors are excited to find the home listed because perhaps the current owners was a nuisance in some manner, or perhaps they didn’t keep their yard and structure in an appealing condition. Yes, listing the home in this case gives neighbors hope of a new ownership.

There’s also hope that the home will sell for an attractive asking price increasing neighbors home values in return. Reality can also be a rude awakening, as the property sits months on end at a higher price than the market will allow.

Are there ways to make this transition easier? Often neighbors can help change the faces of real estate by contacting people they know that may want to move into their neighborhood. You might be asking isn’t this the real estate agents job? Definitely not that is considered steering. We can’t choose your neighbors. Your future neighbors must select your community of their own free will. Agents do help find a new owner through marketing the home in various forms. However, most agents don’t know all of your friends, acquaintances and family that may consider the home an option. You can let everyone that you know who has showed interest in your home or area that a home has been listed. Picking your neighbors is powerful and can create a real positive change.

Many people think that selling a home is entirely the agent’s job. We feel it’s a partnership, a joint effort between the homeowner, the agents and the community. The resources agents bring to this process does help. Agent representation makes a real difference when the agents are providing insights into the process, guidance, negotiation, vendor relationships, conflict management and resolution all leading to the most important aspect the successful sale of your home or finding you a new dream home.

Have you ever walked into a house thought the layout was great but said oh my god there’s no way we could live in this house? What made you feel that way? Was it the clutter or the need of repairs? Was it the choice of the décor? Was it the wood paneling, the boogie night motif or perhaps the shag carpeting? Perhaps it was the area posing a commute or desirability issue that’s outside of your control. However, if the answer is one of the former questions perhaps more consideration could go into what makes a house a home.

Home is where the heart is and it’s people that make a house a home. We both entered into real estate out of a passion for helping people. I also entered into real estate in part for I loved driving around and viewing homes in my spare time. To me it was fun just seeing the insides of various styled homes ranging from the 1900’s to the modern built homes. As I drove by I often wondered who lived there? Often I saw names of people carved into old trees, cement driveways or patios and sidewalks. I wondered what fun stories would these people tell about this home? Sure there may have been some sort drama too but I chose to think of the home as a sheltering and nurturing place. A home being a place where people often gather to BBQ, to play games, to celebrate events and to just hang out and enjoy each other’s company.

As for my partner Tami she actually went to real estate school 19 years ago in Southern California. Feeling that real estate was all about the almighty dollar and not the people she became discouraged and decided not to pursue this career back then. After going through her own real estate transactions and relocating to Idaho she realized that if she continued to feel discouraged she better do something to fix it. Tired of seeing the way some people were being treated during a real estate transaction, she decided to obtain her Idaho real estate license. She became an advocate for the people helping her clients get through each real estate transaction. Tami realized it was people’s needs that mattered most and not the amount of commission or how many houses she sold. This is why we so adamantly believe that the #1 focus has to be people and making the transaction as simple as possible for them. To this end seeing people make a house their home keeps us driving forward in the Treasure Valley area.

A house is what you start out with and a home is what you make it! We recently agreed to help a homeowner market  a very affordable house. This Nampa house has 4 bedrooms, 2 baths, 1200 sq ft and sits on a .24 acre lot. When I first entered the home I was shocked to find it needing many repairs and a good cleaning. I called Tami to let her know how I was unsure about this house. After Tami patiently calmed me down a few days had passed. I returned to view this house after Tami spent a few hours cleaning the living room and removing some items from the bedrooms. It was amazing to see how a few hours of work transformed this house into something I was able to envision as a home for people to live. I realized that I was like most buyers in that I quickly ruled out this house after not seeing past the clutter and minor repairs.

Sometimes it takes vision and imagination to see the potential in a house becoming a home. If two homes are identical in layout, yet one is in move-in condition while the other needs a bit of work you’ll often find them priced significantly different. Sometimes just a little paint, carpeting and some minor TLC will be more than worth the savings to you. Most buyers would agree with this but often rule the house out first before obtaining quotes for these repairs or seeing what they can do on their own to really make the house their home.

We’ve worked with people that purchased the aforementioned 1960’s boogie night style homes and remodeled the bathrooms, put in surround sound, painted and replaced light fixtures all over time and turned the place into their own home. It’s fun seeing these transformations. It doesn’t have to be an expensive endeavor. We work with many reasonable vendors and often we help our clients find bargains and do the actual work. Yes, we have gone into homes to clean up on behalf of our clients whom sometimes feel overwhelmed. You never know what life will bring you and often life spirals out of control and people need help to make it happen. Real estate is not about moving properties it’s really about finding the homes that meet the needs of the individual people and helping people transition from one phase of their life into the next.

To see how we can help you feel free to contact us whether you’re buying a new house or selling your exiting home. We would love the opportunity to help you transition to the next phase in your life.

Homeowners and soon to be homeowners need to learn how to dance with each other.

Whether you are thinking about buying or selling in this uncertain market please take the time to learn to dance. A key factor in any successful real estate transaction is the art of negotiations. It doesn’t have to be a difficult process. It’s the matter of taking the time to know when to take a step forward or take a step back and learning the steps of a graceful dance to bring the real estate transaction to a beneficial end for all parties involved.

Living in a me-me society as we’ve come to be, people forget that their wants are not all that are involved. But there are needs on the part of buyer and seller alike that must be taken into account. You can do a 2 step and kill the transaction with ink and pen or you can do a beautiful waltz that give you a first place trophy on Dancing With The Stars.

Make sure the agent you select is the star that will take the lead in guiding you through the difficult phases of negotiating a contract.

Phase 1: Writing a contract and coming to acceptable terms for both parties

When a contract is written you have 3 answers that you can receive a yes, a no way or a counter-offer, which means what dance shall we perform. The 2 step is when you write an offer based on fair comparables that you’re agent has provided you. Despite this fair offer the seller counters for closer to the asking price expecting you to accept it without further negotiations. A 2 step will usually kill a contract. Learn to tango and hope that both agents realize that it may take 3, 4 or 5 steps to come to a melding of the minds where all parties are dancing together without stepping on each other’s toes.

Phase 2: You’ve come to an agreement, inspection has been completed and items now need to be repaired in order to continue with the dance.

An inspection release has been written and presented to the seller. At this point either party can do The Bus Stop and bring the transaction to a halt; or you can do The Electric Slide and joyfully complete this phase of the purchase.

Listing every single item in need of repair will usually kill a transaction. Unless you are buying a brand new home it’s not necessary to ask for all the small items in need of repairs to be completed. For example new outlet covers cost $.50 to $1.00 at your local hardware store and cracks in the sidewalks can easily be filled after closing. Major items that will impact your health and/or safety should be addressed. For example foundation, roofing, plumbing, electrical and HVAC related repairs should not only be addressed, but grouped together in non-intimidating ways on the inspection release so that all parties feel comfortable and informed, helping you slide right pass these hurdles.

Phase 3: The signing at title

Coordinating all parties and keeping everyone patient until the documents have been delivered to title, reviewed and adjusted if needed by the escrow officer and making sure the final walk through is complete make up this graceful dip of a finale.

Sometimes due to work schedules there can be some little hitches where the seller or the buyer have to adjust whom signs first. As long as all parties stay in communication this can work out smoothly ending the dance on a wonderful upbeat.

We decided to write on this topic based on a few recent real life examples. We share these examples and this blog entry in hopes that it will help people in the future.

Case 1: Recently on behalf of our client we made an offer and unfortunately it was killed based on the 2 step dance example. The listing agent encouraged a dance but abruptly halted it despite having actual comparables indicating a lower price that we believe the listing agent chose to psychologically dismiss. Comparables showed the home to be worth 15,000 less than the asking price. The appraisal would not have come in at the asking price and we must wonder if the agent even told her sellers this information.

Case 2: One buyer’s agent we worked with nearly killed a transaction by insisting on several small items being repaired in order to make her appear as a superstar, despite the items requiring little money or time. In this case the agent’s ego was on the line instead of any of the client’s best interests. Luckily our ability to find excellent and affordable vendors willing to step up and help the seller’s family get through this process with little financial burden saved this transaction. We were able to smoothly complete what appeared to be a nightmare for the sellers. In the end it turned out to be a blessing.