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What Should You Look for In Your Real Estate Team?
How do you select the members of your team who are going to help make your dream of owning a home a reality? What should you be looking for? How do you know if you’ve found the right agent or lender?
The most important characteristic that you should be looking for in your agent is someone who is going to take the time to really educate you on the choices available to you and your ability to buy in today’s market.
As the financial guru Dave Ramsey advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Do your research. Ask your friends and family for recommendations of professionals they’ve worked with in the past and have had good experiences with.
Look for members of your team who will be honest and trustworthy; after all, you will be trusting them to help you make one of the biggest financial decisions of your life.
Whether this is your first or fifth time buying a home, you want to make sure that you have an agent who is going to have the tough conversations with you, not just the easy ones. If your offer isn’t accepted by the seller, or they think that there may be something wrong with the home that you’ve fallen in love with, you would rather know what they think than make a costly mistake.
According to the Home Buyer and Seller Generational Trends Report:
“Buyers from all generations primarily wanted their agent’s help to find the right home to purchase. Buyers were also looking for help to negotiate the terms of sale and to help with price negotiations.” Additionally, “Help understanding the purchase process was most beneficial to buyers 37 years and younger at 75 percent.”
Look for someone to invest in your family’s future with you. You want an agent who isn’t focused on the transaction but is instead focused on helping you understand the process while helping you find your dream home.
Bottom Line
In this world of Google searches, where it seems like all the answers are just a mouse-click away, you need an agent who is going to educate you and share the information that you need to know before you even know you need it.
Barbara Tesa wins Fourth Quarter Sales Award
Green Team New Jersey Realty in Vernon, NJ is proud to announce that Barbara Tesa is the recipient of its Fourth Quarter Sales Leader Award.
Though relatively new to Green Team New Jersey Realty, Barbara is no stranger to the real estate industry – or to winning this award! She was also the recipient of the Third Quarter Sales Leader Award. When asked how she feels about winning the quarterly award for the second time, Barbara replied, “I’m certainly encouraged by my 4th Quarter sales results and I’m still smiling over that! The truth is, I love what I do and I’ve been fortunate to have met and helped really terrific clients with their real estate objectives in 2017. As I focus on 2018, while I plan to expand my marketing, those clients and their referrals will remain important to furthering my success…all of which is made easier through the continued support of the Green Team.”
Barbara has over 20 years of experience in residential and commercial real estate management and 10 years as a licensed real estate agent in New Jersey. Barbara and husband Rudi reside at Crystal Springs, where they enjoy resort living amid the natural beauty of Sussex County, and where Barbara also practices her craft. In addition to her expertise in the sale and purchase of resort homes, Barbara is a member of the Garden State Multiple Listing Service, National Association of Realtors and the Sussex County Association of Realtors.
For Sale By Owner – Do or Don’t?
Study: FSBOs Don’t Save Real Estate Commission
One of the main reasons why For Sale By Owners (FSBOs) don’t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it. A new study by Collateral Analytics, however, reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.
In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:
“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)
Why would FSBOs net less money than if they used an agent?
The study makes several suggestions:
- “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids on with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.
- “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.
- “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.
Three conclusions from the study:
- FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
- The differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%.
- The sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.
Bottom Line
If you are thinking of selling, FSBOing may end up costing you money instead of saving you money.
LACK OF LISTINGS SLOWING DOWN THE HOUSING MARKET
The real estate market is moving more and more into a complete recovery. Home values are up. Home sales are up. Distressed sales (foreclosures and short sales) have fallen dramatically. It seems that 2017 will be the year that the housing market races forward again.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the summer, supply is not keeping up.
Here are the thoughts of a few industry experts on the subject:
Lawrence Yun, Chief Economist at NAR
“Last quarter’s robust pace of sales was especially impressive considering the affordability sting buyers
experienced from higher prices and mortgage rates. High demand is poised to continue heading into the
summer as long as job gains continue. However, many metro areas need to see a significant rise in new
and existing inventory to meet this demand and cool down price growth.”
Tom O’Grady, Pro Teck CEO
“The lack of inventory is very real and could have a severe impact on home sales in the months to come.
Traditionally, a balanced market would have an MRI (Months Remaining Inventory) between six and 10
months.
This month, only eight metros we track have MRIs over 10, compared to 27 last year and 48 two years
ago—illustrating that this lack of inventory is not being driven by traditionally ‘hot’ markets, but is
rather a broad-based, national phenomenon.”
Ralph McLaughlin, Chief Economist at Trulia
“Nationally, housing inventory dropped to its lowest level on record in 2017 Q1. The number of homes
on the market dropped for the eighth consecutive quarter, falling 5.1% over the past year.”
Freddie Mac
“Tight housing inventory has been an important feature of the housing market at least since 2016. For-
sale housing inventory, especially of starter homes, is currently at its lowest level in over ten years. If
inventory continues to remain tight, home sales will likely decline from their 2016 levels. …all eyes are
on housing inventory and whether or not it will meet the high demand.”
Bottom Line
If you are thinking of selling, now may be the time. Demand for your house will be strongest at a time when there is very little competition. That could lead to a quick sale for a really good price.
The Internet Vs. the Real Estate Agent
The Internet Vs. the Real Estate Agent
The Internet Vs. the Real Estate Agent. It may seem like the internet provides many all the tools that can make buying your dream home seem like a breeze. You can search online, see a home you like, take a video tour. Sure, there’s an Agent attached to the house, but that seems more a formality. That’s who you call because they have the keys to the house you want to see.. You’re tech savvy, you know where you can get a mortgage online, you know how to do your research. You’ve got this under control. Or do you?
The Real Estate Agent
The Real Estate Agent is more than the holder of the keys. Buying – or selling – a home is a process, one that has many steps. The experienced Real Estate Agent is there to act as your guide through the process. From beginning to end, your Agent is there for YOU! To find out what is really important to you in a new home. Help you obtain the most beneficial financing. And to help you get the most house for your money.
The home you eventually purchase may not be the one you found on Zillow.com. But that home gave both you and your real estate Agent an idea of what you are looking for. You will most likely visit numerous homes. Some may be listed by other Agents, but YOUR Agent can and will arrange for you to see them all, and will represent you! Your Real Estate Agent’s goal is to help you find the best home at the best price, and to make the process as easy and stress free as possible.
Using the Internet as a Tool
The internet definitely has a place in your search. You can take countless house tours without ever leaving your home. It can help you define the style of house you want, the must haves you’d like to have in that house, and the things you can compromise on. You can get statistics on neighborhoods and school districts. It can definitely be fun checking out all the beautiful homes shown on the internet, but when you make that decision that it is now time to buy or sell, it’s time to let the Real Estate Agent step in.
The Real Estate Agent, the Internet, and You … the Perfect Trio
Real Estate Agents work very hard at their jobs. Their goal is to help you either get into a home that you’ll love, or sell the home that you love, so you can move on to the next. They have the training and resources to check for homes both online or through other agency offerings and their knowledge of the local market. The Agent will find comparable housing prices in specific areas. In addition, they have access to sites with information not available to home buyers and sellers. And they know the different neighborhoods in the town or city you are looking for.
If you don’t qualify for the financing to afford a home in one specific neighborhood, they can recommend an area which may just be more affordable. A knowledgeable, local real estate Agent can translate the stats you’ve seen online into real life info that can help you achieve your goals! They help you navigate the maze of forms, regulations… of making offers – and counteroffers! They’ll be by your side. From visiting properties, through making your offer. Through having it accepted, then through your home inspection. They’ll help you handle some of those challenges that can arise, ranging from merely irritating to downright nerve-wracking! They will be by your side until the closing – when YOU become the holder of the keys!
After the Sale, your Real Estate Agent is still there for you!
Once you have either moved in, or moved on to your next home, your Agent remains a valuable source of information. And, while the internet can provide you recommendations for contractors and local businesses, the recommendations from your Agent will be based on working with those individuals and businesses. That can make a big difference when selecting people to turn your new house into your new home!
So, the Internet Vs. the Real Estate Agent? While the Internet may have played a part in the overall process, there is something that it just can’t do … and that is have the human touch!
