The good news is spreading, and a great mention by BizMojo Idaho! :)
BizMojo Idaho: RE/MAX agents join Keller Williams East Idaho: Here's a new development in the local real estate market. Chris Pelkota Lee and several of her colleagues have left RE/MAX Homestead Realty ...
Buying and Selling homes in Eastern Idaho made simple.
16 August 2011
The 7 Deadly Sins of Overpricing
Thinking of Selling? It's a tough market out there still for local Sellers. Still, homes are still selling, and everything will sell for the right price, right? If you just said 'no', consider this extreme example: even that 3,000 sqft fixer-upper house across the street with a 3-car garage will find the right buyer *quickly* if it's priced at only $20,000.
No, I'm not saying every home should be priced so drastically, that's silly. However, this article from Trulia.com points out a few reasons why as a Seller it's so important to get your pricing right, from the get-go. Particularly in a tough market with more competition and limited Buyers.
http://www.trulia.com/guide/home_selling/home_selling_strategies/the_seven_deadly_sins_of_overpricing/
No, I'm not saying every home should be priced so drastically, that's silly. However, this article from Trulia.com points out a few reasons why as a Seller it's so important to get your pricing right, from the get-go. Particularly in a tough market with more competition and limited Buyers.
http://www.trulia.com/guide/home_selling/home_selling_strategies/the_seven_deadly_sins_of_overpricing/
25 July 2011
The Pitfalls of Self-Representation
About three weeks ago, a buyer came to me for assistance in buying the home she is currently renting. She had negotiated a price with the seller already, but was stuck as to how to proceed. I agreed to help her with the process and to provide the Idaho forms for a small fee, as she is the sister of a client of mine. The negotiated price was $105,000.
Fast forward to last week, and a message from the bank: the appraiser cannot support the purchase price value of the home! Can I please come by to see the home and perhaps find some additional comparable sales that would help? Of course.
And what is the cost? Ironically, because the buyer had agreed to pay me a small fee for my time, she actually paid MORE to not be represented! When a property is listed in an MLS, the Seller has already agreed to pay a brokerage fee, so there is no cost to the Buyer. When a property is a For Sale By Owner (FSBO), more often than not, the Seller will agree to pay a Buyers Agent because agents sell homes! And the FSBO still "saves" a percentage by not listing the home and paying two agents. I have yet to have to have to ask a Buyer client for payment because a Seller will not pay a Buyer's Agent.
Now, this particular first-time buyer may be starting the home buying process over....with less cash in her pocket to boot.
How much is a Buyer's Agent worth to you?
Fast forward to last week, and a message from the bank: the appraiser cannot support the purchase price value of the home! Can I please come by to see the home and perhaps find some additional comparable sales that would help? Of course.
While the complete appraisal has not been submitted to the lender yet, after seeing the home and the comparable sales, the purchase price agreed between the buyer and seller appears to be about $80-85,000: about $20-25,000 lower than the price the buyer agreed to! What to do? The options: 1) the seller can agree to negotiate down to the appraised value, as any future buyer will also likely need to finance the home and will have the same issue with the appraisal; 2) the deal falls. In this case, if the deal falls, because the buyer had agreed to making the earnest money non-refundable she will be out about $885 for the lost earnest money and the appraisal, which the buyer will still have to pay for as the appraisal work was done. Her credit has been accessed by the bank for the purpose of purchasing a home. Depending on the timeline until she begins a new search, she could loose a few points in her credit score, which could impact her ability to qualify for financing going forward. And should she decide to purchase another home, she needs to decide whether she will fulfill her lease or pay an additional cost to break it and move out early.
How could a buyer's representative have helped? First, while the buyer was pre-qualified, it seems the home was over priced. The buyer would have previewed more homes in the price range and have had a better feel for the market and how much house her money could buy. Secondly, prior to making any offer on a home, comparable sales should be pulled to ensure the offer was within the proper price range and would likely appraise. Thirdly, having a guide throughout the process, from choosing homes to viewing them, pointing out features and potential issues (including financing issues), and having an expert to assist in negotiating the deal are all very valuable and sometimes under considered benefits of being represented.
And what is the cost? Ironically, because the buyer had agreed to pay me a small fee for my time, she actually paid MORE to not be represented! When a property is listed in an MLS, the Seller has already agreed to pay a brokerage fee, so there is no cost to the Buyer. When a property is a For Sale By Owner (FSBO), more often than not, the Seller will agree to pay a Buyers Agent because agents sell homes! And the FSBO still "saves" a percentage by not listing the home and paying two agents. I have yet to have to have to ask a Buyer client for payment because a Seller will not pay a Buyer's Agent.
Now, this particular first-time buyer may be starting the home buying process over....with less cash in her pocket to boot.
How much is a Buyer's Agent worth to you?
19 July 2011
5 Reasons to Hire a Buyer's Agent
RISMedia publishes a daily newsletter for those in the real estate industry that discusses everything from marketing to technology to specific regional markets. Recently, one article discussed the importance of Buyer Agency, and why it's important as a business tool. I thought I'd share part of this article, as it also very clearly spells out to consumers why Buyer Agency is so important to both the agent and the consumer.
And remember, I am your Accredited Buyer's Representative (ABR®)!
From RISMedia:
"Traditionally, the buyer representation agreement is a legal document that formalizes a client’s working relationship with a particular buyer’s representative. It is designed to detail the services a client is entitled to as well as the expectations of the buyer’s agent. By defining the expectations of both parties up front, an agent reduces his or her risk while at the same time elevating the level of service he or she can provide.
In this month’s column, we highlight a few reasons why using a buyer representation agreement can help you in your business. Take a few moments to review the list and consider sharing it with your potential clients. It could be the key to ensuring that you both meet the expectations necessary to make your next transaction a successful one.
Receive a higher level of service. If you formalize an agency relationship with a buyer’s rep, you can expect to be treated like a client instead of a customer. What’s the difference? Clients are entitled to superior services, relative to customers.
Get more without paying more. In almost every case, home sellers have already agreed to pay a buyer’s agent’s commission. If they haven’t, you can ask your buyer’s rep to avoid showing you any such homes.
Avoid misunderstandings. A buyer representation agreement clarifies expectations, helping you understand what you should and shouldn’t expect from their buyer’s rep, and what they will expect from you, which usually centers on loyalty.
Agency relationships are based on mutual consent. While most representation agreements specify a time period, they can be terminated early if both parties consent. Most buyer’s reps are willing to end the agreement early if the working relationship isn’t going well.
Strength as a team. When a client and a buyer’s rep work together within a formalized agency relationship, a team is created, dedicated to helping the client achieve the best possible home-buying experience.
Agents or brokers who earn the Accredited Buyer’s Representative (ABR®) designation not only receive comprehensive training related to representing the needs of home buyers in real estate transactions, but they gain access to a wealth of benefits with their REBAC membership, including sample buyer representation agreements, customizable marketing materials, referral opportunities and consumer resources."
Full article here: http://rismedia.com/2011-07-17/the-value-of-buyer-representation-agreements-and-how-they-can-help-you-build-business/
And remember, I am your Accredited Buyer's Representative (ABR®)!
From RISMedia:
"Traditionally, the buyer representation agreement is a legal document that formalizes a client’s working relationship with a particular buyer’s representative. It is designed to detail the services a client is entitled to as well as the expectations of the buyer’s agent. By defining the expectations of both parties up front, an agent reduces his or her risk while at the same time elevating the level of service he or she can provide.
In this month’s column, we highlight a few reasons why using a buyer representation agreement can help you in your business. Take a few moments to review the list and consider sharing it with your potential clients. It could be the key to ensuring that you both meet the expectations necessary to make your next transaction a successful one.
Receive a higher level of service. If you formalize an agency relationship with a buyer’s rep, you can expect to be treated like a client instead of a customer. What’s the difference? Clients are entitled to superior services, relative to customers.
Get more without paying more. In almost every case, home sellers have already agreed to pay a buyer’s agent’s commission. If they haven’t, you can ask your buyer’s rep to avoid showing you any such homes.
Avoid misunderstandings. A buyer representation agreement clarifies expectations, helping you understand what you should and shouldn’t expect from their buyer’s rep, and what they will expect from you, which usually centers on loyalty.
Agency relationships are based on mutual consent. While most representation agreements specify a time period, they can be terminated early if both parties consent. Most buyer’s reps are willing to end the agreement early if the working relationship isn’t going well.
Strength as a team. When a client and a buyer’s rep work together within a formalized agency relationship, a team is created, dedicated to helping the client achieve the best possible home-buying experience.
Agents or brokers who earn the Accredited Buyer’s Representative (ABR®) designation not only receive comprehensive training related to representing the needs of home buyers in real estate transactions, but they gain access to a wealth of benefits with their REBAC membership, including sample buyer representation agreements, customizable marketing materials, referral opportunities and consumer resources."
Full article here: http://rismedia.com/2011-07-17/the-value-of-buyer-representation-agreements-and-how-they-can-help-you-build-business/
21 March 2011
New Listing!
East Central Idaho Falls, Idaho Falls, ID Powered by Postlets
Motivated Sellers-home is ready to go! Contact me today for more information regarding this new listing.
Chris 208-201-2034
Motivated Sellers-home is ready to go! Contact me today for more information regarding this new listing.
Chris 208-201-2034
18 February 2011
WHY HOME OWNERSHIP MATTERS!
A great reminder of the benefits of homeownership that we don't always consider. From the National Association of REALTORS®.
TO PEOPLE…
For these reasons and more, home ownership is the American Dream!
As REALTORS®, we know all this. But not everyone does. So spread the word: Home Ownership Matters!
- Home owners are happier and healthier and enjoy a greater feeling of control over their lives.
- Owning a home is one of the best ways to build long-term wealth. Historically, a home owner’s net worth has ranged from 31 to 46 times that of a renter.
- Home owners are free to redecorate, renovate, and modify their homes as they wish.
- Most home owners enjoy stable housing costs—a fixed-rate mortgage payment might not change for 15 to 30 years while rent typically increases 3% a year.
- Home owners can typically deduct mortgage interest and property taxes on their federal individual income tax return.
- People who own homes vote more, volunteer more and contribute moreto their neighborhoods.
- Home owners do not move as frequently as renters, providing more neighborhood stability. In turn, this stability helps reduce crime and supports neighborhood upkeep.
- Children of home owners do better in school, stay in school longer, are more likely to participate in organized activities and spend less time in front of the television.
- 67% of American households are owner-occupied. America is a nation of home owners.
- Home owners pay 80 to 90% of federal individual income taxes, contributing to federal programs that benefit all Americans.
- Every home purchased pumps $60,000 into the economy for furniture, home improvements and related items.
- Housing accounts for more than 15% of the national Gross Domestic Product, a key driver of our national economy.
As REALTORS®, we know all this. But not everyone does. So spread the word: Home Ownership Matters!
For more information and data on the points above, see www.REALTOR.org/Homeownership
03 January 2011
Get the REAL Facts on Mortgage Interest Deductions in Idaho
Interesting reading from the Ada County Association of REALTORS®.
Of the approximately 399,498 owner-occupied houses in Idaho in 2009, 278,102 or 70% had a mortgage.
In 2008, 194,063 taxpayers in Idaho claimed a deduction for mortgage interest. The total amount deducted was $2,054,503,000. This means that the average taxpayer claiming the MID deducted $10,587 from taxable income in 2008.
At a marginal rate of 25 percent1, this means that the average taxpayer saved $2,647 in taxes as a result of the MID. The total tax savings from the MID in Idaho in 2008 was $513,625,750.
In 2008, 209,237 taxpayers in Idaho claimed a deduction for real estate taxes. The total amount deducted was $428,709,000. This means that the average taxpayer claiming the real estate tax deduction subtracted $2,049 from taxable income in 2008.
At a marginal rate of 25 percent2, this means that the average taxpayer saved $512 in taxes as a result of the real estate tax deduction. The total savings from the real estate tax deduction in Idaho in 2008 was $107,177,250.
If the MID and real estate tax deductions were eliminated, the loss would not be a one-year event; homeowners lose out on these potential savings each and every year. The present value3 of these lost savings could total $12,416,060,000. The value of all owner-occupied real estate in Idaho in 2009 was $87,262,337,900. If the lost tax savings are fully capitalized into the price of houses, the average decline in value in Idaho would be 14%. From the individual perspective, the median priced home in Idaho in the third quarter 2010 was $127,600. A decline in value as projected would mean a loss in home value of $18,155 for the typical home owner.
--------------------------------------------------------------------------------
1 Marginal rates range from 10 to 35 percent.
2 Ibid.
3Present value calculation assumes 5 percent discount rate and 1000 year time horizon.
Sources for the data above include: Internal Revenue Service 2008, American Community Survey 2009, National Association of Realtors® 2010; All calculations are by the National Association of Realtors® Research Division
Published Dec 22, 2010. Reprinted with permission from Ada County Assoication of REALTORS®.
Of the approximately 399,498 owner-occupied houses in Idaho in 2009, 278,102 or 70% had a mortgage.
In 2008, 194,063 taxpayers in Idaho claimed a deduction for mortgage interest. The total amount deducted was $2,054,503,000. This means that the average taxpayer claiming the MID deducted $10,587 from taxable income in 2008.
At a marginal rate of 25 percent1, this means that the average taxpayer saved $2,647 in taxes as a result of the MID. The total tax savings from the MID in Idaho in 2008 was $513,625,750.
In 2008, 209,237 taxpayers in Idaho claimed a deduction for real estate taxes. The total amount deducted was $428,709,000. This means that the average taxpayer claiming the real estate tax deduction subtracted $2,049 from taxable income in 2008.
At a marginal rate of 25 percent2, this means that the average taxpayer saved $512 in taxes as a result of the real estate tax deduction. The total savings from the real estate tax deduction in Idaho in 2008 was $107,177,250.
If the MID and real estate tax deductions were eliminated, the loss would not be a one-year event; homeowners lose out on these potential savings each and every year. The present value3 of these lost savings could total $12,416,060,000. The value of all owner-occupied real estate in Idaho in 2009 was $87,262,337,900. If the lost tax savings are fully capitalized into the price of houses, the average decline in value in Idaho would be 14%. From the individual perspective, the median priced home in Idaho in the third quarter 2010 was $127,600. A decline in value as projected would mean a loss in home value of $18,155 for the typical home owner.
--------------------------------------------------------------------------------
1 Marginal rates range from 10 to 35 percent.
2 Ibid.
3Present value calculation assumes 5 percent discount rate and 1000 year time horizon.
Sources for the data above include: Internal Revenue Service 2008, American Community Survey 2009, National Association of Realtors® 2010; All calculations are by the National Association of Realtors® Research Division
Published Dec 22, 2010. Reprinted with permission from Ada County Assoication of REALTORS®.
20 Tips for a Positive 2011
Hello 2011 and Happy New Year, all!
I came across a link to this newsletter entry this morning via Facebook from a friend. Really great stuff - great ideas to kick-off my way to a positive, successful new year. I hope you enjoy it as much as I do.
Embrace life...we only go around once...at least this in this life... :-)
Chris
http://www.jongordon.com/newsletter-010311-20-tips-positive-new-year.html
I came across a link to this newsletter entry this morning via Facebook from a friend. Really great stuff - great ideas to kick-off my way to a positive, successful new year. I hope you enjoy it as much as I do.
Embrace life...we only go around once...at least this in this life... :-)
Chris
http://www.jongordon.com/newsletter-010311-20-tips-positive-new-year.html
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