Do Your Know Where You Stand with Your Realtor?

Every industry has its share of insider knowledge, quirks, and idiosyncrasies. Louisville real estate is no different. As society grows ever more complex, expertise becomes more and more valuable.

For people selling their home, there are times when selling without a Realtor® may make sense. The seller pays both sides of the commission and that’s no small amount of money. So, a solid argument may be made for a homeowner selling their property without an agent.

(Please note, offering a cooperating commission, one side, is almost always a smart choice. Offering no commission to a buyer’s agent is a recipe for frustration, in my opinion.)

Now all of that refers to selling a home. Buying a home is a separate deal. People buying a home should always use a Realtor. On to the point of this post.

Who Is Your Realtor? How Do You Know?

One of the quirky things about real estate is that customers don’t always understand how the buying process work. They often think of Realtors as merely salespeople—like a clerk you might find at Macy’s or Best Buy.

Unless the reasoning behind the process is thoroughly explained to them, a buyer might call a Realtor friend from college on Monday with a question about financing. Then on Sunday, they might call the listing agent for a home they saw online.

Given enough time and the buyer might call a 3rd and 4th agent, not understanding how that affects their relationship which each of them who want to be their only agent.

What Makes You My Realtor?

Here’s the danger. If a Realtor is not secure in their relationship with the client, there’s a level of apprehension that doesn’t serve either party well. Realtors put in a great amount of time searching properties online, sending emails or texts, arranging showings, following up with feedback and a myriad of other tasks all with the goal of helping a client purchase a home.

Here’s the point, a Realtor only gets paid if a home is purchased.

Most good agents don’t mind helping a client over the course of several months, even years, as long as they know they will be the Realtor who gets to sell the property in the end.

Finding the Best Louisville Realtor for You

Buyers have the freedom to choose whomever they like to represent them. They can start with one agent and decide that person isn’t a good match or isn’t putting in the time needed to help the buyer find exactly what they want, and then move to another agent.

On the selling side, there is a Listing Agreement, which outlines the terms of that business transaction. But what do buyers have? It’s called a Buyer Agency Agreement. These are simple contracts that outline the responsibilities of both parties, the terms of the agreement and has space for both parties to sign.

The Benefits of a Buyer’s Agent Agreement

The plus for buyers is that they know what to expect from their Realtor. It’s right there in black and white. If the agent doesn’t produce, ending that arrangement is spelled out in the agreement.

For the Realtor, they can feel better knowing the buyer has committed to using their services so all the long nights, weekend showings and abundance of paperwork will produce positive results in the end, in the form of a paycheck.

It’s my opinion that the entire Louisville real estate market would run more smoothly if Buyer Agency Agreements were required. All parties would know better where they stood and misunderstandings would be far fewer.

If you have any questions about what type of information lives in a Buyer’s Agency Agreement, please comment below or feel free to contact us.

Real Estate Scams, Don’t Fall for Them

I’m going to use this page to keep track of all the real estate scam contact info that I receive. This, in the hope that other agents can find it and not waste the time of these people.

If one of the following “persons” contacts you, do not reply. Simply delete the email. If you have additional scams to add, please contact me.

Real Estate Scam Contact Info

  • Mr. Eguchi Kaori / +44-758 745 0966 / eguchikaori01@yahoo.com [added 10/21/10]
  • Mr Jirou Hayashi / 1-647-862-1135 / jirou_h@yahoo.ca [added 10/27/10]
  • Mr. Vincent Cheng / no phone given / choi.chengh@yahoo.com.hk (sent from: MKast@colum.edu) [added 11/17/10]
  • Mr Chao Zhou / no phone given / mrchaozhou_09@yahoo.cn (sent from: Elizabeth.Dolin@jud.ct.gov) [added 11/28/10]

I’ll update this blog post as I receive more. More info on the combating real estate scams:

  1. Protect yourself from Online Real Estate E-Mail Scams and Fraud
  2. Real Estate Scam Hits CENTURY 21

Time Is Of the Essense, Your Deal Could Very Well Die

Ticking away, the moments that make up a dull day
Fritter and waste, the hours in an off-hand way
-“Time” by Pink Floyd

We live in an always-on society. It seems most believe there couldn’t be enough hours in a day. As Realtors, we’re pretty much on-call, day or night, especially in this market, where clients are hunkering down to wait out what appears to be the long, cold winter of the housing recession.

Now, the purpose of this blog post is to share a recent experience in the hopes that it might help even one of you avoid what happened to us.

Just a quick synopsis, my client needed 30-60 days to close. My client, by nature, is very optimistic. Even though he was pre-approved (with two lenders) he thought he had time to shop around, find the best deal and stroll to closing with time to spare. So, he didn’t click the start button for 27 days.

Turns out, with the recent foreclosure freeze and the massive numbers of refi’s due to low-interest rates, many lenders are quite busy and ultra leery about anything out of the ordinary.

My client’s situation was out of the ordinary.

Looking back, I was in contact with the lender with 33 days left in our window. Then again with 26, 19, 12, 7 and then every day up until our deadline. We couldn’t close.

With the deal blown up, we now have frustrated buyers, sellers, listing agent, buyers agent, loan officer and title examiner (and possibly some more I haven’t named). No winners, all losers.

The Sellers could have given us an extension—we were less than 1 week away, but regardless, the lesson learned here is push, PUSH, PUSH at the beginning to move things through the pipeline. You never know when you might run out of time…

And then the one day you find
Ten years have got behind you
No one told you when to run
You missed the starting gun

Drop Everything, Call Your Investor Clients!

At this very second, what is at the forefront of every Realtor’s thinking? That’s right, “I need to make a sale!”

But you might say, “Yeah, but the market is down.” Or moan that, “People aren’t buying.” Well, you could sit back and feel sorry for yourself. (Which does more harm than good.) You could send out another round of direct mail pieces that may, or may not, bring in any new leads.

Or, you could call every single investor client that you’ve ever had and show them this.

“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.” – John Paulson 9/27/2010 [source]

Before you make any calls, read up on John Paulson. I’ve made it easy for you:

Investors who don’t take advantage of our current market will regret it later. Period.

Don’t have any investor clients? Then call any of your clients who might want to be real estate investors. If I had a few more dollars stored away, I’d buy some additional real estate myself. Heck, I still might!

Bottom line: Make the best move based on current market conditions. Right now, it’s a buyers market and rental properties are performing pretty well in most markets. With the uncertain economic future here in the United States, that’s likely to remain true for some time.

The Best Realtors Help People

I’m not sure that could make it any plainer than this:

The Best Realtors Help People

Photo of people helping people. In this case, building a house.

Some call it karma, others say the idea is related to the Golden Rule. Whatever the case, I’m finding it increasingly more evident that when I put my own needs/wants on the back burner, listen as hard as I possibly can to my clients and then try to help them get what they want… that is really when life is good.

Being successful in business is just a by-product of this mindset.

I’m a Realtor but try it for yourself in your line of work. Whether you are here in Louisville, Kentucky or across the globe in Nepal. (Hello!) Take the next week and put others first. At the end of the week look back and see how it turned out for you.

I predict you’ll be happy with the results.

Counting Your Chickens and Other Old-Fashioned Wisdom

Chicks and the Eggs They Came From

I’m sure we’ve all heard the phrase, “Don’t count your chickens before they’re hatched.” Today’s non-agrarian youth might be unaware, but this basically means anything can happen.

This is probably more the standard operating procedure (SoP) in the world of real estate than most other fields. For one reason, purchasing a new home is such a major decision people run on high alert. Add to that, humans are primarily emotional beings. Someone not normally prone to stress can find the whole process unusual and can easily lose their cool. Because of this real estate deals can quickly go from being a Done Deal to becoming an Atomic Explosion.

3 Stages of a Real Estate Deal

Stage 1. Once a home seller gets a contract signed by both parties, that deal should make it to closing 65-75% of the time. This percentage used to be higher but all the changes in financing have made things trickier when/if we get to Stage 3.

Stage 2 contains the home inspections and other related issues. In today’s Buyers Market, home buyers call all the shots; after all, there are currently 9,610 Louisville homes for sale. Any home seller who wants to move forward with the deal needs to look long and hard at the Repair Request given them and see if agreeing to all the items is worth the cost compared to potentially losing this Buyer.

A buyer’s power is also enhanced by carte blanche that lives in the inspection clause of our standard Louisville real estate contract.

When we get to Stage 3, we’re looking at whether or not the Buyer is going to be able to get all his financing in order and on time for the upcoming closing.

Deals Die for Many Reasons

I write about this particular topic today because I’m working to sell my client’s home. We made it through Stage 1 but in Stage 2, our Buyer requested that my client replace the entire roof, rather than just the $380 worth of repairs that the professional roofer identified. Do it, or he’d walk. I don’t have to tell you that this was far from reasonable. My client responded with a very generous offer that the Buyer promptly rejected and now we’re scrambling to find a new Buyer for my client’s home.

So please… learn from our pain that even solid agreements can fall apart when you least expect. To quote Oscar Wilde, “To expect the unexpected shows a thoroughly modern intellect.”

Today I Was Told I Look Like Darren Gersh

Darren Gersh
Darren Gersh

Real estate is ever entertaining. Why? Because you’re always meeting new people. New people mean more exposure to new things. All kind of things. There’s never a dull moment in real estate.

Take today for instance. I met a very nice man considering a move to Louisville. We sat at Starbucks and chatted for an hour or so. During our time, I asked him how he had found me. He mentioned that he did some Google searches and found my site that way. He appreciated the writing on my site, and almost as an aside, mentioned I reminded him of Darren Gersh from Nightly Business Report on PBS. How great is that?!?

My previous celebrity comparison was Brian Boitano. I’m so glad to have moved up!

Quick Hitters in Louisville Real Estate

Louisville real estate is garnering all kinds of national attention these days. I’m writing a great deal overall LouisvilleHomesBlog.com. Here are a few recent highlights:

Mostly positive news, right? I’ll have a more in-depth analysis of the home sales date coming shortly.

But for now, let’s just say that as experts forecast interest rates on the rise, more and more homeowner are going to make their move. If you have any questions, feel free to contact me.

What Is a True Relocation Specialist?

Lovely lake in White Blossom within Springhurst neighborhood.

Lovely lake in White Blossom within Springhurst neighborhood.

There are a lot of “sacred” terms in real estate. We in the business toss these words around without much thought but does the average consumer know what they mean?

Just now I Google’d “Louisville KY relocation specialist“. Lo and behold, look what came up!

Now, a good portion of my business is helping people relocate to Louisville from outside the state or even outside the country, so I have a great deal of experience in this area. But what I wanted to write about today were relocation companies.

Some, like Cartus, negotiate with the largest U.S. companies to the benefit of both. But do the home buyers benefit? The answer, as you might expect is, “sometimes they do, sometimes they don’t.”

The laws are such that the consumer has the right to use whichever real estate professional they like without being forced into choosing a particular agent deemed acceptable by their employer. There are times when it’s financially in the best interest of the consumer to use that agent, but I’ve seen instances where it certainly wasn’t.

Bottom line is, “Get recommendations!” Find someone you trust, and ask them if their Realtor did a great job. I pride myself on first class customer service for all my real estate clients and as my motto goes, “Top agents put you first!”

If you’re considering a move to Louisville KY, I’d love to chat with you and see how I might best help you!