Monday, July 18, 2016

7 Things Buyers Do 
That Real Estate Agents Hate
Realtors Hate This - But Agents at Pierview Properties Don't - 760-547-5773

Buying a House is a Process. One where you'll spend a lot of quality time with your Realtor. One where you might even drive him or her a little … nuts.
No, we're not talking about that time you called after 10 p.m. because you saw a house online and had to see it immediately (though, hey, you might want to ease up on that, too). We're talking about the stuff you do that actually sabotages your chances of getting the right house, at the right price -- or getting a house at all.
If you're guilty of any of the following, we're here to tell you to stop and get on your Realtor's level, lest you risk losing the home of your dreams.
1. Caring too much about aesthetics
Your real estate agent is happy to show you as many houses as you want -- she just wishes you'd see beauty is only skin-deep (and very often totally fixable!) when it comes to real estate.
Many buyers get caught up in how a house looks right now. And if it looks dirty, outdated, or in need of small repairs, you might be tempted to run. After all, how much is all that going to cost anyway?
Not much, sometimes.
"I've had clients see some marks on a wall and a stain on the carpet and say, 'This home needs $50,000 worth of work.' That's not anywhere close to the renovations needed," says Joshua Jarvis, owner of Jarvis Team Reality in Brookhaven, GA.
Plus, you may not end up paying anything at all.
"The cost to make the home like new is often easy to negotiate" in the deal, he says.
-- -- --
2. Tipping your hand
You know how it goes. You've seen a billion places. You're totally comfortable with your agent. Your feelings just start to slip out. You're getting a bit loose-lipped. Like, why is there shag carpet in the bathroom, anyway?
But voicing your criticism could spell disaster.
"There's been instances where the seller has been home and overheard the buyer, and it's hurt them in negotiations," Jarvis says.
Even if they aren't home, Jarvis has had clients get busted on video, and in open houses the listing agent might be there. It's best to save your jokes about the seller's vast "Frozen" figurine collection until you're back in the car.
-- -- --
3. Waiting too long
Found a house you want to buy? Don't wait. Taking too long to make an offer in a competitive real estate market can drive your agent crazy, and for good reason.
"If too much time passes between a buyer viewing a home and making an offer, the seller might not take you as seriously as another party who quickly expressed interest and maintained communication," says Dan Hicks, a Realtor with Equity Colorado Real Estate in Denver.
-- -- --
4. Thinking it's all about the money
Don't get us wrong -- how much you're willing to offer for a house is a huge part of your offer. But it isn't the only thing you should worry about.
"It's not necessarily the highest offer that the seller will accept, but rather the best structured offer," Hicks says.
Your agent knows a good offer is a mix of timing, the right price, and reasonable contingencies (those clauses that give you the option to bail out of the deal if something isn't met). If you decide on a price, but refuse to cave on 10 contingencies, you're probably frustrating your agent -- and the seller -- more than a bit.
-- -- --
5. Ignoring what the seller wants
When you're shopping for real estate, it's hard not to see a house as a product you're buying.
But real estate isn't like other business deals. You're buying from another person who has to choose you as the buyer.
Sellers are motivated for different reasons. Some are entirely driven by money, for example, while others want to see their first home go to someone who will love it as much as they did.
"When you hire a Realtor to represent you in the purchase of a property, [they're] gathering information about the seller's motivation," Hicks says.
They'll use that information to help you build the best offer, and if you're ignoring it, you could be hurting your chances.
-- -- --
6. Talking to the other team
OK, let's get this out of the way: The listing agent is not the enemy. But talking to him without your own agent present is never a good idea, even if you think you're just being friendly to help seal the deal.
"I've had clients talk to the seller or agent and divulge information that would harm them," Jarvis says. "Stuff like 'Oh, don't worry about inspections, my company is paying a huge relocation bonus' doesn't exactly set the stage for a tough negotiation with the seller."
Even if you don't think you're saying anything that could hurt, you never really know. Remember, "the listing agent's job is to get the most money for the seller," Jarvis says. Just don't do it.
-- -- --
7. Low-balling the counteroffer
So the sellers didn't accept your offer, but they're willing to consider a counter. If your next offer isn't reasonable, at best, your agent will spend a lot of time going back and forth between you and the sellers' agent. At worst, you'll frustrate the sellers and lose the house for good.
We get it. You don't want to overspend or give in on too many parts of the deal, but don't be a Scrooge. Listen to your Realtor. By now, he/she knows what the seller will and won't accept.
After all, you hired him for a reason. Realtors are pretty good at what they do.
Published January 2016 - Realtor.com

Serving Oceanside Communities Since 1979
302 N. Cleveland St.
Oceanside, CA, 92054

When It Comes To Real Estate, 

Is It Ever OK To Overpay? 

A story broke this week about how Zillow CEO Spencer Rascoff overpaid for his $20 million home. The New York Times called it "ironic" that he paid "over $1 million above its Zestimate" for his 12,732-square-foot Brentwood, CA mansion. Everyone who's had an issue with Zillow's farcical Zestimates calls it "payback."

"The next time you're surfing popular real estate listings site Zillow for a new home and stumble across a "Zestimate" - the company's estimate for a property's value - you might want to take it with a grain of salt," they said.

Frankly, we could sit here all day and debate the dangers of Zestimates, especially as they relate to bloated buyer/seller expectations. But this news begs an important question: Is it ever OK to overpay for your home?

"Buyer emotions, stiff competition from other buyers - even feelings of losing out on the home you want challenge buyers to overpay," said Owners.com. And while no one ever sets out to pay more than they have to, there are certain circumstances where it may be acceptable, or even necessary. We're debating a few.
In a competitive market
Prices get driven up when demand, well, demands it. A home that lots of people want is naturally going to be more valuable to those trying to buy it.

You may assume that a home that gets multiple offers would be worth more, but that's not always true. A home that doesn't appraise for the sales price can put you in a difficult position where you're expected to pay the difference between the appraisal amount and the sales price in cash. And that's not the only issue.
"In a fast-paced seller's market, it's not uncommon for prospective buyers to find themselves in a bidding war over a house. And while it may appear an innocent move (after all, the lucky bidder gets the house!) there can be dangerous downstream affects," said Owner.com.

 "By overpaying for the house, it costs…more money for the down payment on the mortgage, more in closing costs (since many mortgage costs are based on a percentage of the mortgage), not to mention thousands of dollars more in interest over the years due to the larger mortgage."

In an especially desirable neighborhood
If you're buying in a neighborhood that traditionally holds its value and where buyers clamor to get into the neighborhood, paying a premium might not be such a bad idea.
"It may seem counter-intuitive to pay over the asking price," said Inman."However, if you're looking for a type of property that's hard to find, and you've looked for long enough to know that the property is what you want for your long-term enjoyment, it might make sense to pay a little more. There is some satisfaction in buying a house that is in high demand. If you keep the property in good condition and price it right for the market when you sell, you might receive multiple offers. There is always a demand for the best houses."

Making a long-term move
You might not be as concerned about immediate return on investment if you're buying a forever home. Traditionally, real estate appreciates over time, with rates that can vary dramatically depending on where and what you buy. If you're in it for the long haul, you may feel more comfortable paying more upfront.

"You shouldn't buy if you don't plan to own the home for a long period of time," said Inman. "It would be a mistake to overpay for a home and then have to sell it the next year. Even if the market was stable, you wouldn't break even due to the costs involved in selling."

In a transitional neighborhood
A transitional neighborhood or one that's also known as an "up-and-coming" neighborhood, might seem like a smart place to buy. And it can be, if the price is right. But it's important to remember that not all up-and-comers actually become hot neighborhoods. Overpaying for a home - even one with great potential for gutting and updating or one that's already been redone - can be a dangerous investment to make.

So can buying in an "iffy" neighborhood
"Overpaying for a property should not be isolated from other facts of the purchase," said Owners.com. "For example, overpaying for a house in a stable, appreciating neighborhood may not be as dire as spending too much on a house in a deteriorating subdivision or on the edge of a warehouse district."

At auction
Knowing what to pay for a home you plan to buy at auction or from the bank can be challenging, especially if you don't have access to the property to walk it or inspect it before purchasing. Whether you're planning to live in the house, flip it, or rent it out and collect passive income over a period of time, most experts will caution you against getting caught up in a frenzy, which can lead to you paying more than you planned.
Market value is market value, and a home you can't research properly could end up costing you - dearly. Set a budget, and stick to it, when there are so many unknowns.
Written by Jaymi Naciri

302 N. Cleveland St.
Oceanside, CA 92054
Serving Oceanside Communities Since 1979

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