Monday, January 23, 2012

Top 10 Reasons to Hire a Realtor (A True Professional)

With so much information readily available online, clients sometimes ask me, "Why should we hire a Realtor (a true professional)?" They wonder, and rightfully so, if they couldn't buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a Realtor. Some do OK, many don't. So if you've wondered the same thing, here are 10 reasons why you might want to consider hiring a professional Realtor.

1. Education & Experience

Reasons to Hire an Agent
You don't need to know everything about buying and selling real estate if you hire a Realtor (a true professional) who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. Why not hire a person with more education and experience than you? We're all looking for more precious time in our lives, and hiring pros gives us that time.

2. Agents are Buffers

Realtors take the spam out of your property showings and visits. If you're a buyer of new homes, your Realtor will whip out their sword and keep the sellers agents at bay, preventing them from biting or nipping at your heels. If you're a seller, your realtor will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.

3. Neighborhood Knowledge

Realtots either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but your Realtor will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

4. Price Guidance

Contrary to what some people believe, Realtors do not select prices for sellers or buyers. However, your Realtor will help guide you to make the right choices that benefit you. If a listing is at 6%, for example, a sellers Realtor has a 6% vested interest in the sale, but the client has a 94% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

5. Market Conditions Information

Realtors can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6. Professional Networking

Realtors network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many Realtors will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Realtors can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7. Negotiation Skills & Confidentiality

Top producing Realtors negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It's part of their job description. Good Realtors are not messengers, delivering buyer's offers to sellers and vice versa. They are professionals who are trained to present their client's case in the best light and agree to hold client information confidential from competing interests.

8. Handling Volumes of Paperwork

One-page deposit receipts were prevalent in the early 1970s. Today's purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!

9. Answer Questions After Closing

Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your Realtor can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good Realtors stand by ready to assist. Worthy and honest Realtors don't leave you in the dust to fend for yourself.

10. Develop Relationships for Future Business

The basis for an Realtors success and continued career in real estate is referrals. Few Realtors would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that a Realtor who stays in the business will be there for you when you need to hire a them again. Many will periodically mail market updates to you to keep you informed and to stay in touch.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

Thursday, January 19, 2012

US unemployment claims fall to lowest since 2008...



By Christopher S. Rugaber
Associated Press
Published: Thursday, Jan. 19 2012 6:55 a.m. MST

WASHINGTON — The number of people in the U.S. seeking unemployment benefits plummeted last week to 352,000, the fewest since April 2008. The decline added to evidence that the job market is strengthening.

Weekly applications fell 50,000, the biggest drop in the seasonally adjusted figure in more than six years, the Labor Department said Thursday. The four-week average, which smooths out fluctuations, dropped to 379,000. That's the second-lowest such figure in more than three years.

A department spokesman cautioned that volatility at this time of year is common. Applications jumped two weeks ago, largely because companies laid off thousands of temporary workers hired for the holidays.

When weekly applications fall consistently below 375,000, it usually signals that hiring is strong enough to push down the unemployment rate.

Hiring improved in the second half of 2011. In December, employers added 200,000 jobs. That marked the sixth straight month in which the economy added at least 100,000 jobs. And the unemployment rate fell to 8.5 percent, a three-year low.

For all of 2011, the economy added 1.6 million jobs. That was up sharply from 940,000 in 2010. Economists say they expect roughly 1.9 million more jobs to be added this year, according to a survey by The Associated Press.

Still, the job market has a long way to go before it fully recovers from the damage of the Great Recession, which wiped out 8.7 million jobs. More than 13 million people remain unemployed. Millions more have given up looking for work and so are no longer counted as unemployed.

The manufacturing sector remains a bright spot. Factory output jumped 0.9 percent in December, the Federal Reserve said this week. That was the sharpest monthly gain in a year. Manufacturing gained 225,000 jobs last year, the most since 1997.

The pickup in hiring reflects stronger economic growth. The economy likely grew at an annual rate of about 3 percent in the final three months of last year, economists estimate.

That would be a sharp improvement over the 1.8 percent annual growth rate in the July-September quarter. Rising consumer spending is thought to be fueling much of the gain in the current quarter.

Even so, economists worry that growth could slow in the first half of 2012. Europe is almost certain to fall into recession because of its financial troubles.

And wages failed to keep pace with inflation last year. Without more jobs and higher pay, consumers might have to cut back on spending. That would weigh down growth next year. Consumer spending accounts for about 70 percent of the economy.

Friday, January 13, 2012

Buyer vs. Seller on Home Prices


Housing analysts are expecting home prices to stabilize in 2012, but that doesn’t mean that buyers and sellers won’t continue to be at odds over home prices in the new year. 
While buyers are feeling good about the housing market and saying its a great time to buy, seller sentiment is falling to record low, a new report by the Mortgage Bankers Association shows. Sellers say they are unhappy because they’re unable to snag the prices for the home that they want. 
According to the MBA report, a large gap is occurring between home buying and home selling that isn’t expected to narrow for at least the next five quarters. 
From 1992 to 2005, seller sentiment remained high — between 40 percent and 60 percent, according to the report. However, since 2005, seller sentiment has decreased to 7.6 percent. Meanwhile, home buyer sentiment has remained high despite unemployment and economic conditions. Nearly 80 percent of American households say now is a good time to purchase a home. 
As home values have dropped over the last few years, many sellers are refusing to budge on their prices to reflect current market traditions. One reason why: Some sellers are underwater on their homes. About 20 percent of home owners nationwide are considered “underwater,” owing more on their mortgage than their home is currently worth. Also, some sellers are realizing there may be a benefit in waiting to sell or to keep the home on the market holding out for a higher price, notes the author of the report, Gary Engelhardt, a Syracuse economics professor. “This could hold prices high enough to drive a substantial wedge between the existing buyer and seller. And a poor jobs market with limited mobility, a key driver of housing-market transactions, may exacerbate this,” an article at HousingWire notes about the report. 
Source: “Buyers, Sellers Continue to Butt Heads on Home Prices,” HousingWire (Dec. 29, 2011)

Tuesday, January 10, 2012

The homes of the GOP contenders

After months of hitting the campaign trail, the Republican candidates hoping to win their party's nomination for the 2012 presidential election have been spending most of their time in planes, trains and automobiles. Home, sweet, home has been a dizzying series of hotel rooms.
But out there somewhere, each of these politicians actually does have a domestic domicile where there are no corn dogs to eat, no stranger's babies to hold and no stray swarms of supporters to glad-hand.
As the GOP primary season cranks into high gear, we're taking a look at the homes these candidates want to trade in for the big white one at 1600 Pennsylvania Ave.

Newt Gingrich

The former House speaker was born in Pennsylvania, grew up in Georgia and served as a U.S. Congressman from the Peach State, but he now calls McLean, Va., home. After his resignation as speaker in 1998, Gingrich's aspirations to transform the nation, as outlined in his 1994 "Contract With America," were short-circuited. Now, however, the 68-year-old author is taking no prisoners as he tries to leap-frog over Mitt Romney and Rick Santorum for a shot at the GOP nomination.

Gingrich purchased his home (above) in McLean in 2000 for $995,000. The 5-bedroom, 5-bath home has 5,206 square feet of living space. The Colonial-style home was built in 1987. Only 10 miles from the White House, McLean is a critical suburban outpost for the Beltway political crowd.


Jon Huntsman


The two-term governor of Utah has spent time in Washington D.C. in diplomatic positions during George W. Bush's presidency and as an ambassador to China under President Barack Obama. Huntsman currently calls the nation's capital his home, residing in a Federal-style home since 2010.

The 5-bedroom, 4.5-bath brick house is in the heart of the politician-stacked Kalorama neighborhood. Built in 1911, the 5,119-square-foot home housed the seventh season cast of "Top Chef" prior to Huntsman and his family moving in.


Ron Paul





During his 20-year service in Congress, Rep. Ron Paul established himself as one of the country's leading libertarians. The prophet of self-rule and minimal government is making his third bid for the presidency.

At 76, Paul has been successful in rallying younger voters seeking a leader who promises to alter the political structure of the country. And true to the profile of a man who advocates people doing things for themselves — in politics or elsewhere — it's not surprising to find that Paul is trying to sell his house via the Internet without a real estate agent or broker.

The Lake Jackson, TX home is priced at $325,000 and has 4 bedrooms, 5 bathrooms and 5,500 square feet of living space.


Rick Perry


Gov. Rick Perry is the longest-serving top leader of Texas ever, but now he wants to break out of the Lone Star State, just like his former boss, George W. Bush, under whom Perry served as lieutenant governor.

Perry currently calls the Texas Governor's Mansion home, but during the mansion restoration in 2007, Perry and his wife rented a $9,900-a-month home in the state capital of Austin that "raised some eyebrows," according to the Associated Press. The secluded estate sits on 3.25 acres and includes high-end amenities like Sub-Zero appliances and gourmet kitchen with marble and granite countertops, outdoor kitchen and pecan hardwood floors.


Mitt Romney


The former Massachusetts governor is hoping that his 2008 failure to secure the GOP nomination will turn into a presidential election win in 2012. He's running as a non-politician, calling himself a businessman who can turn the wheels of the U.S. economy. As the wealthiest of the candidates with an estimated net worth between $190 million and $250 million, it's clear Romney knows how to spur his own economic recovery.

Out of the slew of GOP candidates, Romney also owns the most real estate, although he has downsized in the last few years. He currently owns a townhouse in Boston, as well as a beachfront home in La Jolla, Calif., which he bought in 2008 for $12 million. Romney applied for a permit to expand his beachfront La Jolla home in 2011 and will reportedly begin construction when his presidential campaign is finished.


Rick Santorum


Former two-term Pennsylvania Sen. Rick Santorum lost his seat to Democrat Bob Casey in 2006, but he proved that his governmental connections were good for business in his years as a Philadelphia Inquirer writer, Fox News commentator and conservative think-tank leader.

In 2007, after much controversy about whether he and his large family actually resided in Pennsylvania during his Senate terms, Santorum bought a yellow Colonial-style home in Great Falls, Va., for $2 million in 2007. The 4-bedroom, 5-bath home sits on five acres and includes a cobbled drive and heated pool.








Wednesday, January 4, 2012

More Americans Are on the Move, Survey Says



More households are moving to East Coast states while leaving Rust Belt states -- the area in the U.S. between the Midwest and the Northeast -- where unemployment remains high, according to the latest Atlas Lines Migration Patterns study, which has tracked the nation’s moves since 1993. 
For the fifth year in a row, Washington, D.C., had the highest percentage of inbound moves while Ohio had the highest percentage of residents leaving, or “outbound moves.” Meanwhile, western states mostly stayed balanced in moves for the year. Several southeastern states, such as Florida and Georgia, also stayed balanced in moves despite high foreclosure rates, possibly because they also serve as retirement hot-spots, according to the survey.
The summer months continued to have the largest number of moves per season, according to the survey. 
The following is a list from the Atlas Van Lines’ 2011 Migration Patterns study showing the top outbound states for moves (in which more than 55 percent of total shipments moved out of the state) and inbound states (in which more than 55 percent of total moving shipments moved into the state). The list is in no particular order. 
Top Outbound States for Moves
  • Ohio
  • Indiana
  • Illinois
  • Kansas
  • Nebraska
  • Utah
  • Minnesota
  • Wisconsin
  • Louisiana
  • New York
  • Massachusetts
  • Connecticut
  • Delaware
  • New Jersey
  • West Virginia
  • Missouri
  • Kansas
  • Hawaii 
Top Inbound States for Moves
  • Washington, D.C.
  • Maryland
  • Texas
  • Virginia
  • North Carolina 
  • New Hampshire
  • Rhode Island
  • New Mexico 
  • Alaska
  • North Dakota
  • Tennessee